Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes ☐ No ☒
Indicate by check mark if the registrant is not required
to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past
90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant
has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T
during the preceding
12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation
S-K
is not contained
herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form
10-K
or any amendment to this
Form
10-K. ☐
Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a
non-accelerated
filer, smaller reporting company, or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller
reporting company, and emerging growth company in Rule
12b-2
of the Exchange Act. (Check one):
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange
Act). Yes ☐ No ☒
The purpose of this amendment is to include the information required by Part III of Form
10-K,
which
was omitted from BioAmber Inc.s Annual Report on Form
10-K
for the fiscal year ended December 31, 2017, as originally filed on March 30, 2018. Except as otherwise expressly set forth in this
amendment, no portion of the Annual Report on Form
10-K
filed on March 30, 2018 is being amended or updated by this amendment.
PART III
Item 10.
|
Directors,
Executive
Of
ficers
and
Corporate
Governance
|
Number of Directors; Board Structure
Our Board is divided into three staggered classes of directors as nearly equal in number as possible. One class is elected each year at the annual meeting of
stockholders for a term of three years. The term of the Class II directors will expire at the 2018 annual meeting, the term of the Class III directors will expire at the 2019 annual meeting and the term of the Class I directors will
expire at the 2020 annual meeting.
The biographies of each of the directors below contain information regarding each such persons service as a
director, business experience, director positions held currently or at any time during the last five years and the experiences, qualifications, attributes or skills that caused the nominating and corporate governance committee to determine that the
person should serve as a director of the company. In addition to the information presented below regarding each such persons specific experience, qualifications, attributes and skills that led the Board and its nominating and corporate
governance committee to the conclusion that he or she should serve as a director, we also believe that each of our directors has a reputation for integrity, honesty and adherence to high ethical standards. Each of our directors has demonstrated
business acumen and an ability to exercise sound judgment, as well as a commitment of service to our company and our Board. Finally, we value our directors experience in relevant areas of business management and on other boards of directors
and board committees.
There are no arrangements or understandings between any of our directors and any other persons pursuant to which such director was
selected as a director.
On March 12, 2018, our common stock was delisted from the New York Stock Exchange (the NYSE), pursuant to the
provisions of Rule 12d2-2(b) of the Exchange Act because, in the opinion of the NYSE, our common stock was no longer suitable for continued listing and trading on the NYSE. However, the Company and its Board continues to comply with the corporate
governance and other NYSE rules applicable to listed companies. Our corporate governance guidelines also dictate that a majority of the Board be comprised of independent directors whom the Board has determined have no material relationship with the
company and who are otherwise independent directors under the published listing requirements of the NYSE.
Directors Continuing in Office
Until the 2018 Annual Meeting
Robert Frost
, 50, has served on our board of directors since May 2017. Since 2009, Mr. Frost has been an
independent advisor to many businesses, including Naxos Capital Partners, an investor in BioAmber Inc., and has acted in this capacity on the boards of listed and private companies in Europe and private companies in the US. Prior to this,
Mr. Frost was a Managing Director with Allianz Capital Partners, responsible for activities in their private equity, mezzanine and infrastructure portfolios. During this time he served on the boards of multiple companies and was responsible for
more than $2bn of equity capital invested on behalf of the Allianz group. Previously Mr. Frost also held senior positions in the Nikko and Nomura Principal Finance Groups in London. Mr. Frost holds an M.B.A. from the London Business
School.
Heinz Haller
, 63, has served on our board of directors since 2011. He is Executive Vice President and President of Europe, Middle East,
Africa and India of Dow Europe GmbH. He has worked at Dow in various roles from 2006 through the present, from 1987 to 1994 and from 1980 to 1985. From 2002 to 2006, Mr. Haller served as Managing Director of Allianz Capital Partners, GmbH, a
private equity firm. Prior to that, he was Chief Executive Officer of both Red Bull Sauber AG, a company that provides automotive research and development services and Sauber Petronas Engineering AG. He has also worked as Managing Director of
Plüss-Staufer
AG, a chemical distribution company. Mr. Haller is Chairman of the Dow Kokam Board and the Dow AgroSciences Members Committee, as well as a member of the Board of Directors for the Dow
Corning Corporation, the Michigan Molecular Institute, and the U.S. India Business Council. Mr. Haller earned a certification in the advanced executive program from University of California at Los Angeles and holds a Master of Business
Administration from IMD, Lausanne, Switzerland. We believe Mr. Hallers experience in leadership roles and knowledge of the chemical industry qualify him to serve as a member of our board of directors.
Directors Continuing in Office Until the 2019 Annual Meeting
Raymond J. Land
, 73, has served on our board of directors since 2011 and has been the Chairman of our board of directors since February 2012. In March
2017, Mr. Land became our Interim Chief Financial Officer. Mr. Land retired after most recently serving as the Senior Vice President and Chief Financial Officer of Clarient, Inc., a cancer diagnostics company, where he worked from 2008
until his retirement. From 2007 to 2008, he was the Senior Vice President and Chief Financial Officer of Safeguard Scientifics, Inc., a venture capital firm. In 2006, Mr. Land was Executive Vice President and Chief Financial Officer of
Medcenter Solutions, Inc., a medical education and marketing services company in the pharmaceuticals industry, and from 2005 to 2006, he was Senior Vice President and Chief Financial Officer of Orchid Cellmark Inc., a DNA testing company.
Mr. Land also served as Senior Vice
3
President and Chief Financial Officer for Genencor International, Inc., from 1997 until its acquisition in 2005. From 1991 to 1996, he served as Senior Vice President and Chief Financial Officer
for West Pharmaceutical Services, Inc. Previously, Mr. Land has also held various positions at Campbell Soup Company, Inc. and at Coopers & Lybrand, an accounting firm. Mr. Land currently serves on the board of directors of Anika
Therapeutics, Inc., where he is the chair of the audit committee, and Mountain View Pharmaceuticals, Inc., a privately held pharmaceuticals company. Mr. Land is a Certified Public Accountant (Retired) and received a Bachelor of Business
Administration in accounting and finance from Temple University. We believe Mr. Lands service on the boards of directors and leadership positions at numerous companies in the biotechnology and pharmaceutical industries qualify him to
serve as a member of our board of directors.
Kenneth W. Wall
,
69
, has served on our board of directors since August 2013. Mr. Wall
previously served as BioAmbers Chief Operations Officer from October 2012 to June 2013. From 2011 to October 2012, Mr. Wall served as our Senior Vice President of Manufacturing. From 2005 to 2011, Mr. Wall was a consultant to the
chemical industry. In 2004, Mr. Wall was President of Intermediates and Specialty Products business at INVISTA. Prior to 2004, Mr. Wall served in various positions at DuPont since 1974 and culminating as Vice President and General Manager
of DuPonts Nylon Intermediates, Polymers and Specialties division. Mr. Walls broad experience includes roles such as Director of Integrated Operations, Director of Manufacturing, Global Business Manager, Plant Superintendent,
R&D Director, Product Manager and Staff Engineer. Mr. Wall holds a Ph.D. in chemical engineering from the University of Missouri-Rolla, a Master of Science in chemical engineering from the University of Missouri-Rolla and a Bachelor of
Science in chemical engineering from the University of Missouri-Rolla. We believe Mr. Walls extensive knowledge of our company and his over 39 years of experience working for and knowledge of the chemical industry qualify him to serve as
a member of our board of directors.
Directors Continuing in Office Until the 2020 Annual Meeting
Kurt Briner
,
73, has served on our board of directors since 2009 and was Chairman of our board of directors from 2009 to February 2012.
Mr. Briner was President and Chief Executive Officer of Sanofi Pharma S.A. from 1988 until his retirement in 1998 and has since been an independent consultant to pharmaceutical and biotechnology companies. He has over 35 years of experience in
the pharmaceutical industry and was a member of the board of directors of Novo Nordisk, Progenics Pharmaceuticals Inc., and Galenica S.A., a European-based pharmaceutical company. Mr. Briner received a diploma from École de Commerce in
Basel and Lausanne. We believe that Mr. Briners extensive experience in the pharmaceutical and biotechnology industries, his service in senior management and as a board member of large business enterprises and appreciation of business
organizations and practices in diverse international cultures qualify him to serve as a member of our board of directors.
Ellen B. Richstone,
66,
has served on our Board since May 2014. Ms. Richstone was the CFO of several public and private companies between 1989 and 2012, including Rohr Aerospace (a Fortune 500 Company) and Executive VP of Darwin Scientific between June 2011 and
September 2012. From 2002 to 2004, Ms. Richstone was the President and CEO of the Entrepreneurial Resources Group. From 2004 until its sale in 2007, Ms. Richstone served as the financial expert on the board of directors of American Power
Conversion. Ms. Richstone currently serves on the boards of two other public companies: eMagin Corporation (NYSE: EMAN) and Superior Industries International Inc. (NYSE: SUP). She has prior experience on both public and private boards and her
current private boards include the National Association of Corporate
Directors-New
England. She chairs the Audit Committee of eMagin. In April 2013, Ms. Richstone was given the first annual Distinguished
Director Award from the Corporate Directors Group. Ms. Richstone graduated from Scripps College in Claremont California and holds graduate degrees from the Fletcher School of Law and Diplomacy at Tufts University. Ms. Richstone also
completed the Advanced Professional Certificate in Finance at New York Universitys Graduate School of Business Administration and attended the Executive Development program at Cornell Universitys Business School. Ms. Richstone holds
an Executive Masters Certification in Director Governance from the American College of Corporate Directors. We believe that Ms. Richstones broad industry experience in technology, industrial and cleantech along with her financial
expertise and extensive governance experience qualify her to serve as a member of our board of directors.
Executive Officers
Biographical information with respect to our executive officers as of April 27, 2018 is provided below.
Officers serve at the discretion of the Board. There is no family relationship between any of the executive officers or between any of the executive officers
and the Companys directors. There is no arrangement or understanding between any executive officer and any other person pursuant to which the executive officer was selected.
4
Rick Eno
, 57, Mr. Eno joined BioAmber Inc. as CEO in September 2017. Rick has over 30 years of
related management experience in the energy, chemicals, biotechnology and materials industries. He began his career in Chevrons chemical operations with roles of increasing responsibility in engineering, manufacturing and construction
operations. He then entered management consulting where he worked with chemical and energy clients around the world on key strategic and operational issues. In 2008, Rick became President, CEO and Board member at Metabolix, a publicly traded
industrial biotechnology company focused on commercializing a family of
bio-based,
biodegradable polymers. Most recently, he was a senior partner at Roland Berger, an international management consultancy. Rick
has a B.S. in Chemical Engineering degree from Cornell University, a Masters in Business Administration from the University of Houston and is a Chartered Financial Analyst (CFA).
Michael A. Hartmann
,
51
, has served as our Executive Vice President since 2009, and is also President of BioAmber Sarnia since March 2017. From
1998 to 2008, Mr. Hartmann was an Executive Director of Institutional Sales at CIBC World Markets Inc. Prior to that, Mr. Hartmann had business and sales roles at Sprott Securities, Dlouhy Investments Inc. and Thomson Kernaghan &
Co. Ltd. Mr. Hartmann received an International Master of Business Administration from York University in Toronto and a Bachelor of Arts from Rollins College.
James Millis
,
62,
has served as our Chief Technology Officer since 2009. Prior to joining the company, Mr. Millis served as Chief Executive
Officer of Draths Corporation, a chemical company that focused on manufacturing
bio-based
materials, from 2007 to 2009. From 2001 to 2007, he served as Technical Director for Cargills Industrial
Bioproducts business unit. Earlier positions included business and technical leadership roles at Maxygen Inc. and
Bio-Technical
Resources. Mr. Millis has been involved in the commercial development and
scale-up
of several technologies, spanning fermentation and chemical catalysis, and is
co-inventor
on 25 U.S. patents and their foreign equivalents. Mr. Millis holds a
Master of Science in chemical engineering from the University of Pittsburgh and a Bachelor of Science in chemical engineering from Cornell University.
Mario Settino
, 63, CFO, Mr. Settino joined BioAmber Inc. in May 2017 and has over 30 years of financial and operational experience in various
industries such as services, retail, manufacturing and
high-end
technology. He previously served as President & CFO of Peds Legwear and prior to this was Chief Financial Officer of Miranda
Technologies. Mr. Settino has previously held senior financial positions with Loblaws, Bombardier and LGS, (an IBM company). Mr. Settino currently serves on the Board of Imaflex Inc. (TMX:IFX) where he is chair of the audit committee. He
is a chartered professional accountant who began his career at Deloitte and holds a bachelor of commerce degree from Concordia University and a graduate diploma in accountancy from McGill University.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Exchange Act requires our directors and executive officers and persons who own more than 10% of our common stock, to file with the
SEC initial reports of beneficial ownership and reports of changes in beneficial ownership. Officers, directors and greater than 10% stockholders are required by SEC regulations to furnish us with copies of all such reports.
To our knowledge, based solely on a review of the copies of such reports furnished to us and written representations that no other reports were required, we
believe that for 2017, all required reports were filed on a timely basis under Section 16(a), except that Ms. Richstone and Messrs. Land, Wall, Haller, Eno and Briner each did not timely file a Form 4 with respect to one transaction, and
Messrs. Frost and Settino each did not timely file a Form 4 with respect to two transactions.
Code of Business Conduct and Ethics
We have adopted a code of business conduct and ethics that applies to all of our employees, officers and directors, including those officers responsible for
financial reporting, which is available on our website at
www.bio-amber.com.
A copy of the Code of Business Conduct and Ethics may also be obtained, free of charge, upon a request directed to: BioAmber
Inc., 1250 Rene Levesque West, Suite 4310, Montreal, Quebec, Canada H3B4W8, Attention: Chief Financial Officer. We intend to disclose any amendment to or waiver of a provision of the Code of Business Conduct and Ethics that applies to our principal
executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, by posting such information on our website available at
www.bio-amber.com
and/or in our public filings with the Securities and Exchange Commission.
Corporate Governance Guidelines
The Board has adopted
corporate governance guidelines to assist and guide its members in the exercise of its responsibilities. These guidelines should be interpreted in accordance with any requirements imposed by applicable federal or state law or regulation, NYSE and
our certificate of incorporation and bylaws. Our corporate governance guidelines are available in the corporate governance section of our website at
investor.bio-amber.com
. Although these corporate
governance guidelines have been approved by the Board, it is expected that these guidelines will evolve over time as customary practice and legal requirements change. In particular, guidelines that
5
encompass legal, regulatory or exchange requirements as they currently exist will be deemed to be modified as and to the extent that such legal, regulatory or exchange requirements are modified.
In addition, the guidelines may also be amended by the Board at any time as it deems appropriate.
Board and Committee Meetings
The Board meets on a regularly scheduled basis during the year to review significant developments affecting us and to act on matters requiring their approval.
It also holds special meetings when important matters require action between scheduled meetings. Members of senior management regularly attend meetings to report on and discuss their areas of responsibility. During 2017, the Board held sixteen
meetings and acted by unanimous written consent on fifteen occasions. The Board has three standing committees:
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the audit committee, which held 8 meetings in 2017;
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the compensation committee, which held 6 meetings in 2017; and
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the nominating and corporate governance committee, which held 7 meetings in 2017.
|
Each of the incumbent
directors of the Board attended at least 75% of the aggregate of all meetings of the Board and all meetings of committees of our Board on which they served (during the periods that they served) during 2017. The Board regularly holds executive
sessions of the independent directors. Executive sessions do not include any employee directors of our company.
Directors who qualify as
non-management
directors within the meaning of the NYSE Corporate Governance Standards meet in executive sessions without management at every regularly scheduled Board meeting and at such other times as
they deem appropriate. Such independent directors meet in executive session at least once annually. In 2017, our independent directors met in executive session without
non-independent
directors 7 times.
The director who presides at these meetings are chosen by the
non-management
directors, and in 2017, this director was Raymond Land.
Annual Meeting Attendance
It is our policy that members
of our Board are encouraged to attend annual meetings of our stockholders. All of the then current members of our Board attended our 2017 annual meeting of stockholders on May 11, 2017.
Committees
Our bylaws provide that the Board may
delegate responsibility to committees. The Board has three standing committees: an audit committee, a compensation committee, and a nominating and corporate governance committee. In addition, in connection with our initial public offering and our
subsequent public offerings, we have periodically established pricing committees, but no such committee is currently active. The Board has also adopted a written charter for each of the three standing committees. Each committee charter is available
in the corporate governance section of our website at
investor.bio-amber.com
.
Audit Committee
Messrs. Frost and Wall and Ms. Richstone currently serve on the audit committee, which is chaired by Ms. Richstone. The composition of
this committee meets the requirements for independence under the listing standards of NYSE and the applicable rules of the Securities and Exchange Commission. Our Board has designated Ms. Richstone as an audit committee financial
expert, as defined under the applicable rules of the Securities and Exchange Commission. Each member of the audit committee meets the requirements for financial literacy under the applicable rules and regulations of the SEC and the NYSE. Our
audit committee operates under a written charter that satisfies the applicable standards of the SEC and the NYSE. A current copy of the audit committees charter is available on our website at
investor.bio-amber.com
. The audit committees responsibilities, as further detailed in the charter, include:
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overseeing our corporate accounting and financial reporting process, including the work of the independent auditors;
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evaluating the independent auditors qualifications, performance and independence;
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appointing, approving the compensation of, and assessing the independence of our independent registered public accounting firm;
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approving auditing and permissible
non-audit
services, and the terms of such services, to be provided by our independent registered public accounting firm;
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6
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establishing or recommending policies to our Board with respect to the hiring of current or former employees of the independent auditors;
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reviewing the internal audit plan with the independent registered public accounting firm and members of management responsible for preparing our financial statements;
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reviewing and discussing with management and the independent registered public accounting firm our annual and quarterly financial statements and related disclosures as well as critical accounting policies and practices
used by us;
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reviewing the adequacy of our internal control over financial reporting;
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establishing policies and procedures for the receipt and retention of accounting-related complaints and concerns;
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recommending, based upon the audit committees review and discussions with management and the independent registered public accounting firm, whether our audited financial statements shall be included in our Annual
Report on Form
10-K;
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monitoring, reporting to and reviewing with the Board regarding the integrity of our financial statements and our compliance with legal and regulatory requirements as they relate to our financial statements and
accounting matters;
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preparing the audit committee report required by Securities and Exchange Commission rules to be included in our annual proxy statement;
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reviewing all related person transactions for potential conflict of interest situations and approving all such transactions;
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reviewing quarterly earnings releases; and
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reviewing annually the audit committee charter and the audit committees performance.
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Compensation
Committee
Messrs. Land and Wall and Ms. Richstone currently serve on the compensation committee, which is chaired by Mr. Land. The
composition of this committee meets the requirements for independence under the listing standards of NYSE and the applicable rules of the Securities and Exchange Commission, including the applicable transition rules. Our compensation committee
operates under a written charter that satisfies the applicable standards of the SEC and the NYSE. A current copy of the compensation committees charter is available on our website at
investor.bio-amber.com
. The compensation committees responsibilities, as further detailed in the charter, include:
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annually reviewing and approving corporate goals and objectives relevant to the compensation of our chief executive officer;
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evaluating the performance of our chief executive officer in light of such corporate goals and objectives and determining the compensation of our chief executive officer;
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reviewing and approving the compensation of our other executive officers;
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reviewing and establishing our overall management compensation, philosophy and policy;
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overseeing and administering our compensation and similar plans;
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reviewing and approving our policies and procedures for the grant of equity-based awards;
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reviewing and making recommendations to the Board with respect to director compensation;
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reviewing and discussing with management the compensation discussion and analysis to be included in our annual proxy statement or Annual Report on Form
10-K;
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reviewing and discussing with the Board corporate succession plans for the chief executive officer and other key officers;
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exercising sole authority to retain, terminate and approve terms of retention of any consulting firm or other outside advisor on compensation matters used by the compensation committee to assist in the evaluation of
director or executive officer compensation; and
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reviewing annually the compensation committee charter and the compensation committees performance.
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The
compensation committee has the power to delegate its authority to subcommittees, but to date has not delegated any such authority. Our compensation committee evaluates our compensation philosophy and compensation plans and arrangements as
7
circumstances require, and, at a minimum, annually. As part of this review process, our compensation committee applies our values and objectives, while considering the compensation levels needed
to ensure our compensation program remains competitive. In reviewing our compensation programs, our compensation committee may take into consideration the recommendations of our Chief Executive Officer (except with respect to his own compensation),
as well as compensation data compiled or prepared by compensation consultants. The Compensation Committee did not retain any compensation consultant in 2017.
Nominating and Corporate Governance Committee
Messrs. Briner, Land and Haller currently serve on the nominating and corporate governance committee, which is chaired by Mr. Briner. The composition of
this committee meets the requirements for independence under the listing standards of NYSE and the applicable rules of the Securities and Exchange Commission, including the applicable transition rules. Our nominating and corporate governance
committee operates under a written charter that satisfies the applicable standards of the SEC and the NYSE. A current copy of the nominating and corporate governance committees charter is available on our website at
investor.bio-amber.com
. The nominating and corporate governance committees responsibilities, as further detailed in the charter, include:
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developing and recommending to the Board criteria for board and committee membership;
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establishing procedures for identifying and evaluating board of director candidates, including nominees recommended by stockholders;
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identifying individuals qualified to become members of the Board;
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recommending to the Board the persons to be nominated for election as directors and to each of the boards committees;
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developing and recommending to the Board a set of corporate governance guidelines;
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overseeing the evaluation of the Board and management; and
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reviewing annually the nominating and corporate governance committee charter and the nominating and corporate governance committees performance.
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Our Board may from time to time establish other committees.
Item 11.
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Executi
ve
Compensation
|
EXECUTIVE COMPENSATION
The following table provides information regarding the compensation awarded to, earned by, or paid to each individual who served as our
principal executive officer and the two most highly-compensated executive officers (other than the principal executive officer) who were serving as executive officers at the end of the fiscal year ended December 31, 2017. Jean-François
Huc resigned as President and CEO of the Company on February 17, 2017. Fabrice Orecchioni was appointed as President and Acting CEO effective February 20, 2017 and subsequently resigned from those positions on October 24, 2017. On
September 11, 2017, the Board appointed Mr. Eno as CEO of the Company. All of these individuals are collectively referred to as our named executive officers.
Summary Compensation Table2017
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Name and Principal Position
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Year
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Salary
($)(1)
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Option
Awards
($)(2)
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All Other
Compensation
($)
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Total
($)
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Richard Eno (3)
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2017
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134,615
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155,790
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290,406
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Chief Executive Officer
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Fabrice Orechcchioni (4)
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2017
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292,887
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266,158
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241,888
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(1)(7)
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800,933
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Former President, Chief
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2016
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276,206
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277,537
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553,472
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Operations and Acting
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Jean-François Huc (5)
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2017
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79,054
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1,006,330
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(1)(8)
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1,085,384
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8
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Former Chief Executive Officer
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2016
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463,339
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555,072
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33,980
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1,052,391
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James Millis
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2017
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330,000
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246,341
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576,341
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Chief Technology Officer
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2016
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330,000
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166,522
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496,522
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Mario Settino (6)
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2017
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156,085
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265,135
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24,158
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(1)(9)
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445,378
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Chief Financial Officer
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(1)
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Amounts have been converted to U.S. dollars from Canadian dollars using the average exchange rate of CAD 1.00 to USD 1.2986 for 2017 and CAD 1.00 to USD 1.3243 for 2016.
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(2)
|
Amounts reflect the aggregate grant-date fair value of stock options granted to our named executive officers in the year indicated, calculated in accordance with Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) Topic 718, excluding any estimates of forfeitures related to service-based vesting conditions. See Note 13 to our consolidated financial statements included in our Form
10-K
for the year ended December 31, 2017, which was filed on March 30, 2018, for a discussion of assumptions made by the Company in determining the valuation of equity awards. These amounts do not
correspond to the actual value that may be recognized by the named executive officers upon vesting or exercise of the applicable awards.
|
(3)
|
Mr. Eno was appointed as our Chief Executive Officer on September 11, 2017. His annualized base salary for 2017 was $500,000.
|
(4)
|
Mr. Orecchioni resigned as President and Chief Operations Officer effective October 24, 2017. His annualized base salary for 2017 was $338,833.
|
(5)
|
Mr. Huc resigned as President and Chief Executive Officer effective February 17, 2017 and as a member of the Board effective May 12, 2017. His annualized base salary for 2017 was $485,138 (which was
converted from Canadian dollars using the average exchange rate of CAD 1.00 to USD 1.2986 for 2017).
|
(6)
|
Mr. Settino was appointed as our Chief Financial Officer effective May 12, 2017. His annualized base salary for 2017 was CAD $340,000 (which is equal to $256,741 USD using the average exchange rate of CAD 1.00
to USD 1.2986 for 2017).
|
(7)
|
The amount reported includes (i) a cash bonus of $169,413, (ii) consulting fees of $59,000, and (iii) vacation payout of $13,475, each pursuant to the terms of his Separation and Consulting Agreement with our
Canadian subsidiary.
|
(8)
|
The amount reported includes: (i) a retiring allowance of $507,162, (ii) a bonus payment for 2017 of $355,013, which is equal to 70% of his base salary in effect on the date of termination, and (iii) $138,158 in
consulting fees.
|
(9)
|
The amount reported includes: (i) a car allowance of $11,936 and (ii) consulting fees of $12,222, which were paid pursuant to the terms of a consulting agreement dated May 1, 2017, which provided for
consulting fees of $21,819 per month.
|
9
Outstanding Equity Awards at Fiscal
Year-End
2017
The following table presents the outstanding equity awards held by each of our named executive officers as of December 31, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Option Awards
|
|
Name
|
|
Securities
Underlying
Unexercised
Options(1)(#)
Exercisable
|
|
|
Securities
Underlying
Unexercised
Options(1)(#)
Unexercisable
|
|
|
Option
Exercise
Price
($)
|
|
|
Option
Expiration
Date
|
|
Richard Eno
|
|
|
27,778
|
(2)
|
|
|
472,222
|
(2)
|
|
|
0.48
|
|
|
|
8/16/2027
|
|
Fabrice Orechcchioni (3)
|
|
|
51,351
|
|
|
|
|
|
|
|
3.55
|
|
|
|
8/2/2022
|
|
|
|
|
35,000
|
|
|
|
|
|
|
|
10.55
|
|
|
|
6/26/2023
|
|
|
|
|
135,000
|
|
|
|
|
|
|
|
6.98
|
|
|
|
11/11/2023
|
|
|
|
|
60,000
|
|
|
|
|
|
|
|
10.16
|
|
|
|
12/5/2024
|
|
|
|
|
100,000
|
|
|
|
|
|
|
|
5.00
|
|
|
|
1/26/2026
|
|
|
|
|
80,000
|
|
|
|
|
|
|
|
3.55
|
|
|
|
8/2/2027
|
|
Jean-François Huc (4)
|
|
|
70,000
|
|
|
|
|
|
|
|
5.74
|
|
|
|
7/21/2020
|
|
|
|
|
213,500
|
|
|
|
|
|
|
|
10.55
|
|
|
|
6/27/2021
|
|
|
|
|
450,000
|
|
|
|
|
|
|
|
6.98
|
|
|
|
11/11/2023
|
|
|
|
|
200,000
|
|
|
|
|
|
|
|
10.16
|
|
|
|
12/5/2024
|
|
|
|
|
200,000
|
|
|
|
|
|
|
|
5.00
|
|
|
|
1/26/2026
|
|
James Millis
|
|
|
21,000
|
|
|
|
|
|
|
|
5.74
|
|
|
|
11/12/2019
|
|
|
|
|
70,000
|
|
|
|
|
|
|
|
5.74
|
|
|
|
3/1/2020
|
|
|
|
|
35,000
|
|
|
|
|
|
|
|
5.74
|
|
|
|
1/12/2021
|
|
|
|
|
66,500
|
|
|
|
|
|
|
|
10.55
|
|
|
|
6/27/2021
|
|
|
|
|
50,572
|
|
|
|
10,114
|
|
|
|
3.55
|
|
|
|
8/2/2022
|
|
|
|
|
80,000
|
|
|
|
|
|
|
|
6.98
|
|
|
|
11/11/2023
|
|
|
|
|
37,500
|
|
|
|
12,500
|
|
|
|
10.16
|
|
|
|
12/5/2024
|
|
|
|
|
28,750
|
|
|
|
31,250
|
|
|
|
5.00
|
|
|
|
1/26/2026
|
|
|
|
|
25,000
|
|
|
|
|
|
|
|
2.26
|
|
|
|
5/1/2027
|
|
|
|
|
|
|
|
|
50,000
|
|
|
|
3.55
|
|
|
|
8/2/2027
|
|
Mario Settino
|
|
|
|
|
|
|
200,000
|
|
|
|
2.07
|
|
|
|
8/2/2022
|
|
(1)
|
All stock options were granted under our Amended and Restated 2013 Stock Option and Incentive Plan. Unless otherwise noted, all stock options vest over four years from the grant date, with 25% of the shares underlying
the award on the first anniversary of the grant date and the remaining 75% of the shares underlying the award in 36 equal monthly installments thereafter.
|
(2)
|
This stock option vests in 36 equal monthly installments from the grant date of October 2, 2017.
|
(3)
|
Mr. Orecchioni resigned as President and Chief Operations Officer effective October 24, 2017. All outstanding stock options held by him as of October 24, 2017 became fully vested and exercisable as of
such date and the post-termination exercise period for such awards was extended to the earlier of five years following termination or the expiration of the award.
|
(4)
|
Mr. Huc resigned as Chief Executive Officer and President effective February 17, 2017. All outstanding stock options held by him as of February 17, 2017 became fully vested and exercisable as of such date
and the post-termination exercise period for such awards was extended to the earlier of five years following termination or the expiration of the award.
|
Employment Arrangements
As of December 31, 2017, we
were party to the following employment agreements and other agreements with our named executive officers.
Richard
Eno
.
Mr. Eno entered into an employment agreement with us on September 13, 2017. Pursuant to the employment agreement, Mr. Eno serves as our Chief Executive Officer, is entitled to an initial annual base salary of USD $500,000,
which is subject to review and adjustment in accordance with Company policy, and is eligible to earn an annual cash incentive bonus targeted at 70% of base salary, based on performance and subject to evaluation and determination of the Company and
the Board. The agreement also provides Mr. Eno with an initial equity grant of an option to purchase 500,000 shares of our common stock and that Mr. Eno will be granted an additional option to purchase 500,000 shares of our common stock on
March 1, 2018. The options vest on a monthly basis over 36 months following the date of grant.
10
The agreement term is indefinite. Mr. Eno may terminate the agreement at any time by giving three
months written notice to the Company. In the event that Mr. Enos employment is terminated by us for any reason other than death or for cause (as defined in the agreement), he will be entitled to receive: (i) 18 months of
base salary, (ii) his target bonus for such period, (iii) immediate vesting and exercisability of stock options that would have vested within 12 months of the date of termination had he remained employed by us and (iv) continuation of
his fringe benefits for 12 months following termination. In lieu of the foregoing, if Mr. Enos employment is terminated by us for any reason other than due to his death or for cause within six months following a change in control, he will
be entitled to receive: (i) 24 months of base salary (ii) his target bonus for such period, (iii) immediate vesting and exercisability of all stock options and (iv) continuation of his fringe benefits for 18 months following
termination. Pursuant to the agreement, Mr. Eno is subject to
non-solicitation
of employees and noncompetition covenants that apply for 12 months following termination.
James Millis.
Mr. Millis entered into an employment agreement with our wholly-owned Canadian subsidiary on August 1, 2010. Pursuant to
the employment agreement, Mr. Millis serves as our Chief Technology Officer, is entitled to an annual base salary of USD $330,000 and is eligible to earn a cash bonus targeted at 40% of base salary. In addition, in the event of a change in
control transaction, Mr. Millis may elect, if so requested by the Company, to either (A) continue as an employee on terms at least as advantageous as those in the employment agreement for at least one year following such transaction, or
(B) agree to a noncompetition covenant with the acquiring entity for one year following such transaction.
The agreement term is
indefinite. Mr. Millis may terminate the agreement at any time by giving six months written notice to the Company. In the event that Mr. Millis employment is terminated by us for any reason other than for cause
(as defined in the agreement) or as a result of death or disability, he will be entitled to receive a severance payment in lieu of notice of an amount equal to 12 months base salary (or 24 months base salary if such termination occurs
within 12 months before or after a change of control transaction). In addition, if Mr. Milliss employment is terminated by us for any reason other than for cause or if his employment terminates upon his death, any stock options and
restricted stock outstanding will immediately vest in full (and such options will be exercisable for three years thereafter). Pursuant to the agreement, Mr. Millis is subject to a post-termination confidentiality covenant for 10 years, as well
as is subject to
non-solicitation
of employees and noncompetition covenants that apply for 12 months following termination (which we may increase to 24 months if Mr. Millis resigns for any reason, in
which case we will pay Mr. Millis an amount equal to 12 months base salary).
Mario Settino.
Mr. Settino entered into an
employment agreement with us on May 15, 2017. Pursuant to the employment agreement, Mr. Settino serves as our Chief Financial Officer, is entitled to an initial annual base salary of CAD $340,000, which is subject to review and adjustment
in accordance with Company policy, and is eligible to earn an annual cash incentive bonus targeted at 50% of base salary, based on performance and subject to evaluation and determination of the Company and the Board. The agreement also provides
Mr. Settino with an initial equity grant of an option to purchase 200,000 shares of our common stock, which vest as to 25% of the shares underlying the option on the first anniversary of is date of hire and in 36 equal monthly installments
thereafter.
The agreement term is indefinite. Mr. Settino may terminate the agreement at any time by giving three months written notice
to the Company. In the event that Mr. Settinos employment is terminated by us for any reason other than death or for cause (as defined in the agreement), he will be entitled to receive: (i) twelve months base salary,
(ii) his target bonus for such period, (iii) immediate vesting and exercisability of stock options that would have vested within 12 months of the date of termination had he remained employed by us and (iv) continuation of his fringe benefits for 12
months following termination. In lieu of the foregoing, if Mr. Settinos employment is terminated by us for any reason other than due to his death or for cause within six months before or following a change in control, he will be entitled
to receive: (i) 18 months of base salary (ii) his target bonus for such period, (iii) immediate vesting and exercisability of all stock options and (iv) continuation of his fringe benefits for 12 months following termination. Pursuant to the
agreement, Mr. Settino is subject to nonsolicitation and noncompetition covenants that apply during his employment and for 12 months following termination.
In addition, in connection with the termination of their employment, we entered into the following agreements with Messrs. Oreccchioni and Huc.
Fabrice Orecchioni.
On October 24, 2017, our Canadian subsidiary entered into a Separation and Consulting Agreement with Mr. Orecchioni.
Pursuant to the agreement, as consideration for a general release of claims against the Company and related parties, Mr. Orecchioni received immediate vesting of stock options and restricted stock held by him as of his date of termination.
In addition, Mr. Orecchioni agreed to provide consulting services to the Company for a period of four months following termination of his employment for
which he was paid a monthly consulting fee of USD $29,500 and was entitled to receive a bonus in an amount equal to 45% of his consulting fees. In addition, Mr. Orecchioni is subject to
non-competition
and
non-solicitation
provisions for 12 months following the end of his consulting services.
11
Jean-François Huc.
On February 17, 2017, our Canadian subsidiary entered into a Mutual
Separation and Consulting Agreement with Mr. Huc. Pursuant to the agreement, as consideration for a general release of claims against the Company and related parties, Mr. Huc received: (i) a retiring allowance amounting to CAD
$658,600, (ii) a bonus payment for the year 2017 of CAD $461,020 and (iii) immediate vesting of stock options and restricted stock held by him as of his date of termination.
In addition, Mr. Huc agreed to provide consulting services to the Company for a period of six months following termination of his employment for which he
was paid a monthly consulting fee of USD $20,000. During the consulting term, Mr. Huc continued to participate in the Companys group insurance plan. In addition, Mr. Huc is subject to
non-competition
and
non-solicitation
provisions for 18 months following the termination of his employment.
Director Compensation
In 2017, our
non-employee
directors received fees for their services as members of our Board. On November 7, 2013, our Board approved a compensation package to be paid to
non-employee
directors, including an annual fee of $70,000 for the Chairman of the Board, an annual fee of $55,000 for a board member who is also the chairman of a committee, and an annual fee of $40,000 for all other board members, as well as an annual stock
option grant to acquire shares of our common stock having a Black-Scholes value of $50,000. The
non-employee
directors may also elect to receive additional stock options in lieu of the cash portion of their
compensation package. In addition, on March 19, 2015, our Board approved a change to the Board compensation policy, effective January 1, 2015, to permit Board members to receive shares in lieu of their annual cash compensation. We
reimburse each member of our Board who is not a company employee for reasonable travel and other expenses in connection with attending meetings of the Board. A director who is also our employee receives no additional compensation for his service as
a member of our Board.
The following table provides compensation information for the fiscal year ended December 31, 2017 for each member of our
Board who was a
non-employee
director during that year. No member of our Board employed by us receives separate compensation for services rendered as a member of our Board.
|
|
|
|
|
|
|
|
|
|
|
|
|
Name
|
|
Fees Earned or
Paid in Cash
($)
|
|
|
Option
Awards
($)(4)
|
|
|
Total
($)
|
|
Kurt Breiner
|
|
|
55,863
|
|
|
|
49,903
|
|
|
|
105,766
|
|
Robert Frost (1)
|
|
|
29,863
|
|
|
|
49,903
|
|
|
|
77,946
|
|
George F. J. Gosbee (2)
|
|
|
22,664
|
|
|
|
|
|
|
|
22,664
|
|
Heinz Haller
|
|
|
49,226
|
|
|
|
49,903
|
|
|
|
99,129
|
|
Jean-François Huc (3)
|
|
|
8,767
|
|
|
|
|
|
|
|
8,767
|
|
Raymond J. Land
|
|
|
88,925
|
|
|
|
49,903
|
|
|
|
138,828
|
|
Ellen Richstone
|
|
|
62,829,
|
|
|
|
49,903
|
|
|
|
116,687
|
|
Kenneth W. Wall
|
|
|
56,192
|
|
|
|
49,903
|
|
|
|
106,095
|
|
(1)
|
Mr. Frost was appointed to the Board on May 12, 2017.
|
(2)
|
Mr. Gosbee resigned as a member of the Board effective May 11, 2017.
|
(3)
|
Mr. Huc resigned as Chief Executive Officer and President effective February 17, 2017 and as a member of the Board effective May 12, 2017. He received compensation for his service on the Board for the
period from February 18, 2017 to May 12, 2017
|
(4)
|
Amounts represent the aggregate grant-date fair value of option awards granted to our directors in 2017, computed
in accordance with FASB ASC Topic 718 excluding any estimates of forfeitures related to service-based vesting conditions. See Note 13 to our consolidated financial statements included in our Form
10-K
for the
year ended December 31, 2017, which was filed on March 30, 2018, for a discussion of assumptions made by the Company in determining the valuation of equity awards.
|
12
|
These amounts do not correspond to the actual value that may be recognized by the directors upon vesting of the applicable awards. The aggregate number of unexercised option awards outstanding
for each director at December 31, 2017 is as follows:
|
|
|
|
|
|
Director
|
|
Unexercised
Option
Awards
|
|
Kurt Breiner
|
|
|
60,000
|
|
Robert Frost
|
|
|
36,000
|
|
George F. J. Gosbee
|
|
|
30,000
|
|
Heinz Haller
|
|
|
60,000
|
|
Jean-François Huc (1)
|
|
|
|
(1)
|
Raymond J. Land
|
|
|
60,000
|
|
Ellen Richstone
|
|
|
60,000
|
|
Kenneth W. Wall
|
|
|
60,000
|
|
|
(1)
|
For outstanding equity awards held by Mr. Huc as of December 31, 2017, see the Outstanding Equity Awards at Fiscal Year End 2017 table above.
|
Rule
10b5-1
Sales Plans
Our policy governing transactions in our securities by directors, officers and employees permits our officers, directors and certain other persons to enter
into trading plans complying with Rule
10b5-1
under the Exchange Act. Generally, under these trading plans, the individual relinquishes control over the transactions once the trading plan is put into place.
Accordingly, sales under these plans
may occur at any time, including possibly before, simultaneously with, or immediately after significant events
involving our company. We are not aware of any officers or directors that have entered into a trading plan in accordance with Rule
10b5-1
and our policy governing transactions in our securities.
We anticipate that, as permitted by Rule
10b5-1
and our policy governing transactions in our securities, some or all
of our officers, directors and employees may establish trading plans in the future. We intend to disclose the names of executive officers and directors who establish a trading plan in compliance with Rule
10b5-1
and the requirements of our policy governing transactions in our securities in our future quarterly and annual reports on Form
10-Q
and
10-K
filed with the Securities and Exchange Commission. However, we undertake no obligation to update or revise the information provided herein, including for revision or termination of an established trading plan.
Compensation Committee Interlocks and Insider Participation
During 2017, Messrs. Gosbee, Haller, Briner, Land and Wall and Ms. Richstone served as members of our compensation committee. Other than Mr. Land, who
served as the Companys Interim Chief Financial Officer from March to May 2017, no member of the compensation committee was an employee or officer of BioAmber during 2017, a former officer of BioAmber, or had any other relationship with us
requiring disclosure herein.
During the last fiscal year, none of our executive officers served as: (1) a member of the compensation committee (or
other committee of the Board performing equivalent functions or, in the absence of any such committee, the entire Board) of another entity, one of whose executive officers served on our compensation committee; (2) a director of another entity,
one of whose executive officers served on our compensation committee; or (3) a member of the compensation committee (or other committee of the Board performing equivalent functions or, in the absence of any such committee, the entire Board) of
another entity, one of whose executive officers served on our Board.
Report of the Compensation Committee of the Board
The information contained in this compensation committee report shall not be deemed to be (1) soliciting material, (2) filed
with the SEC, (3) subject to Regulations 14A or 14C of the Exchange Act, or (4) subject to the liabilities of Section 18 of the Exchange Act. No portion of this compensation committee report shall be deemed to be incorporated by
reference into any filing under the
13
Securities Act or the Exchange Act, through any general statement incorporating by reference in its entirety the Amendment No.1 in which this report appears, except to the extent that BioAmber
specifically incorporates this report or a portion of it by reference. In addition, this report shall not be deemed filed under either the Securities Act or the Exchange Act.
The compensation committee has reviewed and discussed the Executive Compensation section with management. Based on the review and discussions, the
compensation committee recommended to the Board that the Executive Compensation section be included in this Annual Report on Form
10-K/A
for the fiscal year ended December 31, 2017.
Compensation Committee
Raymond J. Land, Chairperson
Kenneth W. Wall
Ellen B. Richstone
Risks Related to Compensation Policies and Practices
When determining our compensation policies and practices, our compensation committee and Board considered various matters relevant to the development of a
reasonable and prudent compensation program, including whether the policies and practices were reasonably likely to have a material adverse effect on us. We believe that the mix and design of our executive compensation plans and policies do not
encourage management to assume excessive risks and are not reasonably likely to have a material adverse effect on us for the following reasons: we offer an appropriate balance of short- and long-term incentives and fixed and variable amounts; our
variable compensation is based on a balanced mix of criteria; and our Board and compensation committee have the authority to adjust variable compensation as appropriate.
14
Item 12.
|
Security
Ownership of Certain
Beneficial
Ow
ners and
Management
and Related
Stockholder
Matters
|
The following table provides information as of December 31, 2017 regarding shares of common stock that may be issued under the Companys equity
compensation plans.
EQUITY COMPENSATION PLAN INFORMATION
|
|
|
|
|
|
|
Plan category
|
|
Number of securities to be issued upon exercise of outstanding options, warrants and rights
|
|
Weighted-average exercise price of outstanding options, warrants and rights
|
|
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a))
|
|
|
|
|
Equity compensation plans approved by security holders
|
|
7,266,648
|
|
$5.55
|
|
1,821,993
|
|
|
|
|
Equity compensation plans not approved by security holders
|
|
N/A
|
|
N/A
|
|
N/A
|
|
|
|
|
Total
|
|
7,266,648
|
|
$
|
|
1,821,993
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information known to us regarding the beneficial ownership of our common stock as of February 28, 2018 for:
|
|
|
each person known by us to be the beneficial owner of more than 5% of our common stock;
|
|
|
|
our named executive officers;
|
|
|
|
each of our directors; and
|
|
|
|
all executive officers and directors as a group.
|
Beneficial ownership is determined in accordance with the
rules of the SEC and generally includes voting or investment power with respect to securities. 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 of common stock shown as beneficially owned by them.
The table lists applicable percentage ownership based on 111,107,433 shares of common stock outstanding as of February 28, 2018. Options and warrants to
purchase shares of our common stock that are exercisable within 60 days of February 28, 2018, are deemed to be beneficially owned by the persons holding these options and warrants for the purpose of computing percentage ownership of that
person, but are not treated as outstanding for the purpose of computing any other persons ownership percentage. Unless otherwise indicated, the address for each beneficial owner is c/o BioAmber Inc., 1250 Rene Levesque West, Suite 4310,
Montreal, Quebec, Canada H3B4W8.
|
|
|
|
|
|
|
|
|
Name and Address of Beneficial Owner
|
|
Number of Shares
of Common Stock
|
|
|
Percentage of
Outstanding Common
Shares
|
|
5% Stockholders
|
|
|
|
|
|
|
|
|
Sabby Healthcare Master Fund, Ltd.
|
|
|
5,666,666
|
(1)
|
|
|
5.10
|
%
|
Intracoastal Capital, LLC
|
|
|
7,556,494
|
(2)
|
|
|
6.80
|
%
|
NN Group N.V.
|
|
|
8,198,266
|
(3)
|
|
|
7.38
|
%
|
Named Executive Officers, Directors and other Executive Officers
|
|
|
|
|
|
|
|
|
Mario Settino
|
|
|
100,000
|
(4)
|
|
|
*
|
|
Michael A. Hartmann
|
|
|
489,344
|
(5)
|
|
|
*
|
|
15
|
|
|
|
|
|
|
|
|
James Millis
|
|
|
263,452
|
(6)
|
|
|
*
|
|
Richard Eno
|
|
|
97,222
|
(7)
|
|
|
*
|
|
Kurt Briner
|
|
|
475,294
|
(8)
|
|
|
*
|
|
Raymond J. Land
|
|
|
119,458
|
(9)
|
|
|
*
|
|
Heinz Haller
|
|
|
154,625
|
(10)
|
|
|
*
|
|
Kenneth W. Wall
|
|
|
184,818
|
(11)
|
|
|
*
|
|
Ellen B. Richstone
|
|
|
91,708
|
(12)
|
|
|
*
|
|
Robert Frost
|
|
|
36,000
|
(13)
|
|
|
*
|
|
All Directors and Executive Officers as a group (10 individuals)
|
|
|
2,011,921
|
|
|
|
1.81
|
%
|
*
|
Constitutes less than 1%
|
(1)
|
Based solely upon a Schedule 13G filed with the SEC February 16, 2018. Sabby Healthcare Master Fund, Ltd. beneficially owns 0 shares; Sabby Volatility Master Fund, Ltd. beneficially owns 5,666,666 shares, and has
shared voting power and shared dispositive power with respect to 5,666,666 shares. Sabby Management, LLC beneficially owns 5,666,666 shares, and has shared voting power and shared dispositive power with respect to 5,666,666 shares. Hal Mintz
beneficially owns 5,666,666 shares, and has shared voting power and shared dispositive power with respect to 5,666,666 shares. Sabby Management, LLC and Hal Mintz do not directly own any shares of Common Stock, but each indirectly owns 5,666,666
shares of Common Stock.
|
|
Sabby Management, LLC indirectly owns 5,666,666 shares of Common Stock by as the investment manager of Sabby Healthcare Master Fund, Ltd. and Sabby Volatility Warrant Master Fund, Ltd. Mr. Mintz indirectly owns
5,666,666 shares of Common Stock in his capacity as manager of Sabby Management, LLC. Each of Sabby Management, LLC and Hal Mintz disclaim beneficial ownership over the securities owned except to the extent of their pecuniary interest
therein. The address for Sabby Management is 10 Mountainview Road, Suite 205, Upper Saddle River, New Jersey 07458. The address for Mr. Mintz is c/o Sabby Management, LLC, 10 Mountainview Road, Suite 205, Upper Saddle River, New Jersey 07458.
|
(2)
|
Based solely upon a Schedule 13G filed with the SEC on February 20, 2018 of the following parties: Mitchell P. Kopin, Daniel B. Asher and Intracoastal Capital LLC (each members of Marlin Capital Investments LLC).
The Schedule 13G reported that, as of close of business on February 16, 2018, each of Messrs. Kopin and Asher and Intracoastal Capital LLC may have been deemed to have beneficial ownership of 7,556,494 shares of Common Stock,
consisting of (i) 7,223,334 shares of Common Stock held by Intracoastal and (ii) 333,150 shares of Common Stock issuable upon exercise of a February 2018 Warrant held by Intracoastal (Intracoastal Warrant 1), and all such shares of
Common Stock in the aggregate represent beneficial ownership of approximately 9.99% of the Common Stock, based on (1) 68,084,089 shares of Common Stock outstanding as of February 16, 2018, as reported to the Reporting Persons by the Issuer,
plus (2) 7,223,344 shares of Common Stock issued to Intracoastal upon exercise of a February 2018 Warrant held by Intracoastal (Intracoastal Warrant 3) on February 16, 2018 and (3) 333,150 shares of Common Stock issuable upon
exercise of Intracoastal Warrant 1. The foregoing excludes: (I) 3,666,850 shares of Common Stock issuable upon exercise of Intracoastal Warrant 1 because Intracoastal Warrant 1 contains a blocker provision under which the holder thereof does not
have the right to exercise Intracoastal Warrant 1 to the extent that such exercise would result in beneficial ownership by the holder thereof, together with the holders affiliates, and any other persons acting as a group together with the
holder or any of the holders affiliates, of more than 9.99% of the Common Stock, (II) 4,000,000 shares of Common Stock issuable upon exercise of a February 2018 Warrant held by Intracoastal (Intracoastal Warrant 2) because
Intracoastal Warrant 2 contains a blocker provision under which the holder thereof does not have the right to exercise Intracoastal Warrant 2 to the extent that such exercise would result in beneficial ownership by the holder thereof, together with
the holders affiliates, and any other persons acting as a group together with the holder or any of the holders affiliates, of more than 9.99% of the Common Stock, (III) 725,774 shares of Common Stock issuable upon exercise of a warrant
held by Intracoastal (Intracoastal Warrant 4) because Intracoastal Warrant 4 contains a blocker provision under which the holder thereof does not have the right to exercise Intracoastal Warrant 4 to the extent that such exercise would
result in beneficial ownership by the holder thereof, together with the holders affiliates, and any other persons acting as a group together with the holder or any of the holders affiliates, of more than 4.99% of the Common Stock, and
(IV) 74,695 shares of Common Stock issuable upon exercise of a warrant held by Intracoastal (Intracoastal Warrant 5) because Intracoastal Warrant 5 contains a blocker provision under which the holder thereof does not have the right to
exercise Intracoastal Warrant 5 to the extent that such exercise would result in beneficial ownership by the holder thereof, together with the holders affiliates, and any other persons acting as a group together with the holder or any of the
holders affiliates, of more than 4.99% of the Common Stock. Without such blocker provisions, each of the Reporting Persons may have been deemed to have beneficial ownership of 16,023,813 shares of Common Stock. The reporting persons share
voting power over the shares and share dispositive power over 7,529,494 of the shares. The address of Intercoastal and Mr. Kopin is 245 Palm Trail, Delray Beach, FL 33483. The address of Mr. Asher is 111 W. Jackson Boulevard, Suite 2000,
Chicago, IL 60604.
|
16
(3)
|
Based solely upon a Schedule 13G/A filed with the SEC on March 9, 2018. NN Group N.V. has sole voting power with respect to none of the shares, shared voting power with respect to 8,055,465 shares and sole
dispositive power with respect to 8,198,266 shares. NN Group N.V. is reporting beneficial ownership of the shares in its capacity the parent holding company of each of NN Investment Partners B.V. and NN Investment Partners Luxembourg S.A. The
address of NN Group N.V. is Schenkkade 65, 2595 AS, The Hague, The Netherlands.
|
(4)
|
Includes (i) 50,000 shares of common stock and (ii) 50,000 shares of common stock issuable upon exercise of options that vest within 60 days of February 28, 2018.
|
(5)
|
Includes (i) 153,476 shares of common stock, (ii) 5,701 shares of common stock issuable upon exercise of warrants within 60 days of February 28, 2018, and (iii) 330,167 shares of common stock issuable upon exercise
of options that vest within 60 days of February 28, 2018.
|
(6)
|
Includes (i) 14,433 shares of common stock and (ii) 249,019 shares of common stock issuable upon exercise of options that vest within 60 days of February 28, 2018.
|
(7)
|
Includes 97,222 shares of common stock issuable upon exercise of options that vest within 60 days of February 28, 2018.
|
(8)
|
Includes (i) 285,978 shares of common stock, (ii) 48,290 shares of common stock issuable upon exercise of warrants within 60 days of February 28, 2018, and (iii) 141,026 shares of common stock issuable upon
exercise of options that vest within 60 days of February 28, 2018.
|
(9)
|
Includes (i) 14,833 shares of common stock and (ii) 104,625 shares of common stock issuable upon exercise of options that vest within 60 days of February 28, 2018.
|
(10)
|
Includes (i) 50,000 shares of common stock, and (ii) 104,625 shares of common stock issuable upon exercise of options that vest within 60 days of February 28, 2018.
|
(11)
|
Includes (i) 71,227 shares of common stock and (ii) 113,591 shares of common stock issuable upon exercise of options that vest within 60 days of February 28, 2018.
|
(12)
|
Includes (i) 13,333 shares of common stock and (ii) 78,375 shares of common stock issuable upon exercise of options that vest within 60 days of February 28, 2018.
|
(13)
|
Includes 36,000 shares of common stock issuable upon exercise of options that vest within 60 days of February 28, 2018.
|
Item 13.
|
Certain
Relationships
and Related
Transactions,
and Director
Independence
|
Board Independence
Our Board has determined that each of our directors has no relationship that would interfere with the exercise of independent judgment in carrying out the
responsibilities of a director and is independent in accordance with the rules of NYSE and the Securities and Exchange Commission. The composition and functioning of our Board and each of our committees comply with all applicable
requirements of the NYSE and the rules and regulations of the Securities and Exchange Commission. There are no family relationships among any of our directors or executive officers.
Furthermore, the Board has determined that, except Mr. Land, as our former Interim Chief Financial Officer, each member of each of the committees of the
Board is independent within the meaning of NYSEs, the SECs, and our applicable committees independence standards, including Rule
10A-3(b)(1)
under the Securities Exchange Act of 1934, as
amended (the Exchange Act). Due to Mr. Lands prior service as our Interim Chief Financial Officer he may not serve on our audit committee until fiscal 2021. In making that determination, the Board considered all relevant facts and
circumstances, including (but not limited to) the directors commercial, industrial, banking, consulting, legal, accounting, charitable, and familial relationships. In addition, a majority of the members of the Board meets the independence
standards of the NYSE.
At least annually, the Board will evaluate all relationships between us and each director in light of relevant facts and
circumstances for the purposes of determining whether a material relationship exists that might signal a potential conflict of interest or otherwise interfere with such directors ability to satisfy his or her responsibilities as an independent
director. Based on this evaluation, the Board will make an annual determination of whether each director is independent within the meaning of NYSEs, the SECs, and our applicable committees independence standards.
Certain Relationships and Transactions
Other than as
described below, and other than compensation agreements and other arrangements which are discussed in the section Executive Compensation, in 2017, there was not, and there is not currently proposed, any transaction or series of similar
transactions to which we were or will be a party for which the amount involved exceeds or will exceed $120,000 and in which any director, executive officer, holder of 5% or more of any class of our capital stock or any member of their immediate
family had or will have a direct or indirect material interest.
17
Procedures for Approval of Related Party Transactions
Our Board or our audit committee reviews and approves transactions with directors, officers and holders of 5% or more of our capital stock and their
affiliates, each of whom we refer to as a related party. We have adopted a written related party transaction approval policy that governs the review of related party transactions. Pursuant to this policy, our audit committee shall review the
material facts of all related party transactions. The audit committee shall take into account, among other factors that it deems appropriate, whether the related party transaction is on terms no less favorable to us than terms generally available in
a transaction with an unrelated third party under the same or similar circumstances and the extent of the related partys interest in the related party transaction. Further, when stockholders are entitled to vote on a transaction with a related
party, the material facts of the related partys relationship or interest in the transaction are disclosed to the stockholders, who must approve the transaction in good faith.
Item 14.
|
Principal
Accou
ntant Fees and Services
|
Policy on Audit Committee
Pre-Approval
of Audit and Permissible
Non-Audit
Services of Independent Registered Public Accounting Firm
We have adopted a policy under which the audit committee must
pre-approve
all audit and permissible
non-audit
services to be provided by the independent registered public accounting firm. These services may include audit services,
audit-related services, tax services and other services.
Pre-approval
would generally be requested annually, with any
pre-approval
detailed as to the particular service,
which must be classified in one of the four categories of services listed below. The audit committee may also, on a
case-by-case
basis,
pre-approve
particular services that are not contained in the annual
pre-approval
request. In connection with this
pre-approval
policy, the audit committee also considers whether the categories of
pre-approved
services are consistent with the rules on accountant independence of the SEC and the Public Company Accounting Oversight Board.
In addition, in the event time constraints require
pre-approval
prior to the audit committees next
scheduled meeting, the audit committee has authorized its Chairperson to
pre-approve
services. Engagements so
pre-approved
are to be reported to the audit committee at
its next scheduled meeting.
Audit Fees
The
following table sets forth the fees billed by Deloitte LLP for audit, audit-related, tax and all other services rendered for 2017 and 2016:
|
|
|
|
|
|
|
|
|
Fee Category
|
|
2017
|
|
|
2016
|
|
Audit Fees
|
|
$
|
510,464
|
|
|
$
|
380,106
|
|
Audit-Related Fees
|
|
|
|
|
|
|
|
|
Tax Fees
|
|
|
35,446
|
|
|
|
42,642
|
|
All Other Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Fees
|
|
$
|
545,911
|
|
|
$
|
422,748
|
|
|
|
|
|
|
|
|
|
|
Audit Fees.
Consist of aggregate fees for professional services provided in connection with the annual audit of
our consolidated financial statements, the review of our quarterly condensed consolidated financial statements, consultations on accounting matters directly related to the audit, and comfort letters, consents and assistance with and review of
documents filed with the SEC.
Audit-Related Fees.
Consist of aggregate fees for other services that were reasonably related to the
performance of audits or reviews of our consolidated financial statements and were not reported above under Audit Fees.
Tax
Fees.
Consist of aggregate fees for tax compliance, tax advice and tax planning services including the review and preparation of our various jurisdictions income tax returns.
18
All Other Fees.
This category includes the aggregate fees for products and services by the
independent registered public accounting firm that are not reported under Audit Fees, Audit Related Fees, or Tax Fees.
The audit committee
pre-approved
all services performed since the
pre-approval
policy was adopted.
19