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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

SCHEDULE 14A
(Rule 14a-101)

SCHEDULE 14A INFORMATION

Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

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o Preliminary Proxy Statement
o Confidential, for use of the Commission Only (as permitted by Rule 14a-6(e)(2))
Definitive Proxy Statement
o Definitive Additional Materials
o Soliciting Material Pursuant to §240.14a-12

Internap Corporation

(Name of Registrant as Specified in Its Charter)

(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)

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Internap Corporation
12120 Sunset Hills Road, Suite 330
Reston, VA 20190

NOTICE OF 2019 ANNUAL MEETING OF SHAREHOLDERS

To our Shareholders,

We invite you to attend Internap Corporation’s 2019 Annual Meeting of Shareholders at The Westin Reston Heights, 11750 Sunrise Valley Drive, Reston, VA 20191, on Thursday, June 6, 2019, at 9:00 a.m. local time. At the meeting, shareholders will be asked to vote upon the following proposals:

1. To elect Gary M. Pfeiffer and Peter D. Aquino as directors of the Company, each to hold office until the 2022 Annual Meeting of Shareholders and until his successor is duly elected and qualified;
2. To ratify the appointment of BDO USA, LLP as the independent registered public accounting firm for our fiscal year ending December 31, 2019;
3. To approve, on a non-binding, advisory basis, the compensation of our named executive officers;
4. To approve amendments to the Internap Corporation 2017 Stock Incentive Plan to increase the number of shares of common stock available for issuance pursuant to future awards made under the plan by 1,300,000 shares and certain other changes;
5. To approve the amendment and restatement of the Company’s Restated Certificate of Incorporation to integrate prior amendments and make other minor modifications; and
6. To transact such other business as may properly come before the annual meeting or any adjournment or postponement thereof.

You can vote at the annual meeting and any adjournment if you were a shareholder of record on April 8, 2019. Distribution of this proxy statement and enclosed proxy card or the Notice of Internet Availability of Proxy Materials to shareholders will begin on or about April 17, 2019.

   
 
 
By order of the Board of Directors,
   
 
 
/s/ Peter D. Aquino
 
Peter D. Aquino
 
President and Chief Executive Officer

Reston, Virginia
April 9, 2019

Your Vote is Important to Us. Even if You Plan to Attend the Annual Meeting in Person,
PLEASE SIGN, DATE, AND RETURN THE ENCLOSED PROXY PROMPTLY OR
VOTE BY TELEPHONE OR THE INTERNET.

Important Notice Regarding the Availability of Proxy Materials for the Annual
Meeting of Shareholders to be Held on June 6, 2019.

Our proxy statement for the 2019 Annual Meeting of Shareholders and the Annual
Report to Shareholders for the fiscal year ended December 31, 2018 are available at
www.proxyvote.com

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Internap Corporation 2019 Proxy Statement Summary

This summary does not contain all of the information you should consider. You should read the complete proxy statement before voting.

Date and Time: June 6, 2019 at 9:00 a.m. local time

Place: The Westin Reston Heights, 11750 Sunrise Valley Drive, Reston, VA 20191

Record Date: April 8, 2019

Proposal 1: Election of Two Director Nominees for Three-Year Terms Expiring in 2022
The Board recommends a vote “FOR” all of the director nominees

Director Nominees

1. Gary M. Pfeiffer: Former Chief Financial Officer of DuPont
2. Peter D. Aquino: President & Chief Executive Officer of Internap Corporation
Proposal 2: Ratification of the Appointment of
BDO USA, LLP as the Independent Registered Public Accounting Firm
for our Fiscal Year Ending December 31, 2019
The Board recommends a vote “FOR” Proposal 2

Summary of Proposal

BDO USA, LLP was reappointed by our Audit & Finance Committee in February 2019.
Information about the audit fees paid in fiscal years 2018 and 2017 are on page 47.
Proposal 3: Advisory Resolution Approving Compensation of
our Named Executive Officers
The Board recommends a vote “FOR” Proposal 3

Summary of Proposal

We follow a “pay for performance” philosophy and maintain best practices in pay and corporate governance, summarized on pages 2225 of this proxy statement.
Bonuses were earned under our 2018 Short-Term Incentive Plan and Long-Term Incentive Plan awards were earned as INAP met applicable financial performance targets for 2018.
Restricted stock was granted to our executive officers in 2018 under our Long-Term Incentive Plan with 50% of the award comprised of performance-based restricted stock and 50% of the award comprised of time-based restricted stock.
Summary Compensation Table is on page 41.

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Proposal 4: Approval of Amendments to the
Internap Corporation 2017 Stock Incentive Plan
The Board recommends a vote “FOR” Proposal 4

Summary of Proposal

Increase the number of shares authorized under the 2017 Stock Incentive Plan by 1,300,000.
Provide for no repricing of stock awards through cancellation or surrender, whether voluntary or involuntary, without shareholder approval.
Summary of proposal 4 is on pages 4955 and the Amended and Restated Internap Corporation 2017 Stock Incentive Plan is contained in Annex B to this proxy statement.
Proposal 5: Approval of the Amendment and Restatement of the Company’s
Restated Certificate of Incorporation to Integrate Prior Amendments and
Make Other Minor Modifications
The Board recommends a vote “FOR” Proposal 5

Summary of Proposal

Integrate prior amendments to the Company’s Restated Certificate of Incorporation.
Conforms provisions of the prior amendments to the Company’s Restated Certificate of Incorporation.
Includes other minor modifications to make the Company’s Restated Certificate of Incorporation clearer.
Summary of proposal 5 is on pages 5657 and the Amended and Restated Certificate of Incorporation is contained in Annex C to this proxy statement.

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Internap Corporation
12120 Sunset Hills Road, Suite 330
Reston, VA 20190

2019 ANNUAL MEETING OF SHAREHOLDERS

June 6, 2019

PROXY STATEMENT

These proxy materials are being furnished to you in connection with the solicitation of proxies by our Board of Directors (the “Board”) for use at the annual meeting. Unless the context indicates otherwise, references to “the Company” means Internap Corporation and its subsidiaries and “INAP,” “we”, “our” or “us” refer to the Company, including the Company’s management, Board or committees of the Board, as the case may be.

Information About the Proxy Materials and Our 2019 Annual Meeting of Shareholders

Q: Why am I receiving these materials?
A: Our Board is providing these proxy materials to you on the Internet or has delivered printed versions of these materials to you by mail in connection with its solicitation of proxies for use at the 2019 Annual Meeting of Shareholders, which will take place on June 6, 2019 at The Westin Reston Heights, 11750 Sunrise Valley Drive, Reston, VA 20191, at 9:00 a.m. EST local time. You are invited to attend the annual meeting and are requested to vote upon the proposals described in this proxy statement.
Q: What information is contained in these materials?
A: The information included in this proxy statement relates to the proposals to be voted upon at the annual meeting, the voting process, the compensation of our directors and named executive officers and certain other important information. Our Annual Report to Shareholders for the year ended December 31, 2018, which includes our audited consolidated financial statements for the years ended December 31, 2018, 2017 and 2016, is included in these proxy materials. If you received printed versions of these materials by mail, these materials also include the proxy card for the annual meeting.
Q: Why did I receive a Notice of Internet Availability in the mail instead of printed proxy materials as in previous years?
A: For 2019, we are again using the Notice and Access process of providing proxy materials. In accordance with Securities and Exchange Commission (“SEC”) rules, instead of mailing a printed copy of our proxy materials and the proxy card to all of our shareholders, we have elected to furnish such materials to certain of our shareholders by providing access to these documents over the Internet. On or about April 17, 2019, we sent a Notice of Internet Availability to such shareholders.

These shareholders have the ability to access the proxy materials on a website referred to in the Notice of Internet Availability or request to receive a printed set of the proxy materials by calling the toll-free number found on the Notice of Internet Availability. We encourage you to take advantage of the availability of the proxy materials on the Internet in order to help reduce the cost to print and distribute the proxy materials.

Q: How can I get electronic access to the proxy materials?
A: The Notice of Internet Availability provides you with instructions regarding how to view the proxy materials, vote your shares, request printed versions of the proxy materials and select the method of receiving proxy materials. Copies of the proxy materials are also available for viewing at www.proxyvote.com.
Q: What proposals will be voted upon at the annual meeting?
A: There are five proposals scheduled to be voted upon at the annual meeting:
election of Gary M. Pfeiffer and Peter D. Aquino as directors of the Company, each to hold office until the 2022 Annual Meeting of Shareholders and until his successor is duly elected and qualified;
ratify the appointment of BDO USA, LLP as the independent registered public accounting firm for our fiscal year ending December 31, 2019;

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approve, on a non-binding, advisory basis, the compensation of our named executive officers;
approve amendments to the Internap Corporation 2017 Stock Incentive Plan to, among other things, increase the number of shares of common stock available for issuance by 1,300,000; and
approve the amendment and restatement of the Company’s Restated Certificate of Incorporation to integrate prior amendments and make other minor modifications.

In addition, we will consider and vote upon such other business as may properly come before the annual meeting. We are not currently aware of any other matters to be considered and voted upon at the meeting.

Q: How does Internap Corporation’s Board of Directors recommend that I vote?
A: Your Board of Directors recommends that you vote your shares “FOR” each of the named director nominees; “FOR” ratification of the appointment of BDO USA, LLP as the independent registered public accounting firm for our fiscal year ending December 31, 2019; “FOR” the advisory resolution approving compensation of our named executive officers; “FOR” the amendments to the Internap Corporation 2017 Stock Incentive Plan; and “FOR” the amendment and restatement of the Company’s Restated Certificate of Incorporation.
Q: Who may vote?
A: You may vote at the annual meeting or by proxy if you were a shareholder of record at the close of business on April 8, 2019. Each shareholder is entitled to one vote per share on each matter presented. As of April 8, 2019, there were approximately 26,733,202 shares of our common stock outstanding.
Q: How do I vote before the annual meeting?
A: We offer the convenience of voting by mail-in proxy, telephone or the Internet. See the enclosed proxy, or Notice of Internet Availability for voting instructions. If you properly sign and return the proxy in the form we have provided, or properly vote by telephone or the Internet, your shares will be voted at the annual meeting and at any adjournment of that meeting.
Q: What if I return my proxy, but do not provide voting instructions?
A: If you specify a choice, your proxy will be voted as specified. If you return a signed proxy but do not specify a choice, your shares will be voted “FOR” each of the named director nominees; “FOR” ratification of the appointment of BDO USA, LLP as the independent registered public accounting firm for our fiscal year ending December 31, 2019; “FOR” the advisory resolution approving compensation of our named executive officers; “FOR” the amendments to the Internap Corporation 2017 Stock Incentive Plan; and “FOR” the amendment and restatement of the Company’s Restated Certificate of Incorporation.

In all cases, your proxy will be voted in the discretion of the individuals named as proxies on the proxy card with respect to any other matters that may come before the annual meeting.

Q: Can I change my mind after I vote?
A: You may revoke your proxy and change your vote at any time before the polls close at the annual meeting by voting again via the Internet or by telephone, by completing, signing, dating, and returning a new proxy card form with a later date, or by attending the annual meeting and voting in person. Only your latest dated proxy we receive at or prior to the annual meeting will be counted. However, your attendance at the annual meeting will not automatically revoke your proxy unless you vote again at the annual meeting before the polls close and specifically request that your prior proxy be revoked by delivering to our Corporate Secretary a written notice of revocation prior to the annual meeting.
Q: How can I vote my shares in person at the annual meeting?
A: Shares held directly in your name as the shareholder of record may be voted in person at the annual meeting. If you choose to vote in person, please bring the enclosed proxy card and proof of identification. Even if you plan to attend the annual meeting in person, we recommend that you vote your shares in advance so that your vote will be counted if you later decide not to attend the annual meeting. Shares held in “street name” through a brokerage account or by a bank or other nominee may be voted in person by you if you obtain a signed proxy from the record holder giving you the right to vote the shares.

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Q: What is the quorum requirement for the annual meeting?
A: The presence in person or by proxy of the holders of a majority of the shares entitled to vote at the annual meeting is necessary to constitute a quorum. If a registered shareholder indicates on his or her proxy card that the shareholder wishes to abstain from voting, or a beneficial owner instructs its bank, broker or other nominee that the shareholder wishes to abstain from voting, these shares are considered present and entitled to vote at the annual meeting. These shares will count toward determining whether or not a quorum is present.
Q: What is the voting requirement to approve each of the proposals?
A: The voting requirements to approve the proposals are as follows:
Election of Directors: Directors must be elected by a plurality of votes cast. This means that the individuals with the largest number of votes “For” are elected as directors up to the maximum number of directors to be chosen at the annual meeting.
Ratification of the appointment of BDO USA, LLP: Requires an affirmative vote of the majority of shares voting on the proposal.
Advisory resolution approving compensation of our named executive officers: Requires an affirmative vote of the majority of shares voting on the proposal.
Amendments to the Internap Corporation 2017 Stock Incentive Plan: Requires an affirmative vote of the majority of shares voting on the proposal.
Amendment and Restatement of the Company’s Certificate of Incorporation: Requires an affirmative vote of the holders of sixty-six and two-thirds percent (66 2/3%) of the outstanding shares.
Q: What are broker non-votes and what effect do they have on the proposals?
A: Generally, broker non-votes occur when shares held by a broker in “street name” for a beneficial owner are not voted with respect to a particular proposal because (a) the broker has not received voting instructions from the beneficial owner and (b) the broker lacks discretionary voting power to vote those shares.

If you do not vote your proxy and your shares are held in street name, your brokerage firm may either vote your shares on routine matters or leave your shares unvoted. On non-routine matters, if the brokerage firm has not received voting instructions from you, the brokerage firm cannot vote your shares on that proposal, which is considered a “broker non-vote.” Broker non-votes will be counted for purposes of establishing a quorum to conduct business at the annual meeting. We believe that the proposal for the ratification of the appointment of our independent registered public accounting firm will be considered routine. We believe that all of the other proposals in this proxy statement will be considered non-routine. Accordingly, brokers that do not receive instructions will likely be entitled to vote on the ratification of the appointment of our independent registered public accounting firm at the annual meeting, but may not vote on the election of directors or on any other proposal in this proxy statement. Therefore, we encourage you to vote before the annual meeting so that your shares will be represented and voted at the meeting even if you cannot attend in person.

Q: What does it mean if I receive more than one proxy or voting instruction card?
A: It means that your shares are registered differently or are in more than one account. Please provide voting instructions for all proxy and voting instruction cards you receive.
Q: How are proxies being solicited and what is the cost?
A: We will bear all expenses incurred in connection with the solicitation of proxies and printing, filing and mailing this proxy statement. In addition to solicitation by mail, our directors, officers and employees may solicit proxies from stockholders by telephone, letter, by the Internet or other electronic means or in person. These directors, officers and employees will not be paid additional remuneration for their efforts but may be reimbursed for out-of-pocket expenses incurred in connection therewith. Additionally, we have retained Morrow Sodali to assist in the solicitation. We will pay Morrow Sodali a fee of approximately $4,000 for these services, and will reimburse their out-of-pocket expenses. We will request brokers, custodians, nominees and other record holders to forward copies of the proxy statement and related soliciting materials to persons for whom they hold shares of our common stock and to request authority for the exercise of proxies. In such cases, upon the request of the record holders, we will reimburse such holders for their reasonable out-of-pocket expenses.

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Q: Where can I find the voting results of the annual meeting?
A: We will announce preliminary voting results at the annual meeting and publish final results in a Current Report on Form 8-K within four business days after the date of the meeting.

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PROPOSAL 1
ELECTION OF DIRECTORS

Our Board currently consists of six members. Our Board is divided into three classes, with each class to be as nearly equal in number as possible. Each class serves a term of office of three years, with the term of one class expiring at the annual meeting in each successive year. In 2018, our Board decreased the size of the Board from nine to six, as part of an orderly succession planning process.

The Board prides itself on its ability to recruit and retain directors who have the highest personal and professional integrity, have demonstrated exceptional ability and judgment and effectively serve our shareholders’ long-term interests. We seek to achieve an appropriate level of diversity in the membership of our Board and to assemble a broad range of skills, expertise, knowledge and contacts to benefit our business. The Nominations and Governance Committee, which is comprised of all independent members of the Board, and the full Board annually assess the current make-up of the Board, considering diversity across many dimensions, including gender, race, age, industry experience, functional areas (e.g., technology and finance), geographic scope, public and private company experience, academic background and director experience in the context of an assessment of the current and expected needs of the Board. The Nominations and Governance Committee reviews director candidates based on the Board’s needs as identified through this assessment and other factors, including their relative skills and characteristics, their exemplification of the highest standards of personal and professional integrity, their independence under listing standards of The Nasdaq Global Market (“Nasdaq”), their potential contribution to the composition and culture of the Board and their ability and willingness to actively participate in the Board and committee meetings and to otherwise devote sufficient time to their Board duties. In particular, the Nominations and Governance Committee and the Board believe that sound governance of our Company in an increasingly complex marketplace requires a wide range of viewpoints, backgrounds, skills and experiences. Although the Board does not have a formal policy regarding Board diversity, the Board believes that having such diversity among its members enhances the Board’s ability to make fully informed, comprehensive decisions.

Among other things, the Board believes it is important to have individuals on the Board with one or a combination of the following skills and experiences:

Information Technology Infrastructure Services Experience. We provide information technology infrastructure services. Given the nature of our business, we believe it is important for members of the Board collectively to have experience in the industry in which we operate to provide insights into areas that are critical to our success.
Leadership Experience. The Board believes that directors with significant leadership experience, including chief executive officer, chief financial officer, chief operating officer and chief technology officer experience, provide it with special insights, including organization development and leadership practices, and individuals with this experience help the Company identify and develop its own leadership talent. They demonstrate a practical understanding of organizations, process, strategy, risk management and the methods to drive change and growth. These individuals also provide the Company with a valuable network of contacts and relationships.
Finance Experience. The Company uses financial metrics in managing its overall operations and the operations of its business units. The Company and its shareholders value accurate and insightful financial tracking and reporting. The Board seeks directors that understand finance and financial reporting processes, including directors who qualify as audit committee financial experts. Experience as members of audit committees of other boards of directors also gives directors insight into best audit committee practices.
Public and Private Company Experience. The Company has been listed on Nasdaq for over 20 years. Although the Company’s business units operate as part of a public company, management expects them to drive growth in their business units using the entrepreneurial spirit of private company leadership. The Board believes it is important to have directors who are familiar with the regulatory requirements and environment for publicly traded companies, and to have directors who have experience applying an entrepreneurial focus to building a company or a business unit.

We believe that our Board collectively possesses these types of experience.

As recommended by the Nominations and Governance Committee, our Board has nominated Gary M. Pfeiffer and Peter D. Aquino as Class II directors for terms expiring at the 2022 Annual Meeting of Shareholders. Each proposed

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nominee is willing to serve as a director if elected. However, if a nominee is unable to serve or is otherwise unavailable for election, which is not contemplated, our incumbent Board may or may not select a substitute nominee. If a substitute nominee is selected, your shares will be voted for the substitute nominee (unless you give other instructions). If a substitute nominee is not selected, your shares will be voted for the remaining nominee. Proxies will not be voted for more than two nominees.

Biographical information for each nominee and each current director is presented below.

Nominees for Terms Expiring in 2022 (Class II)

Gary M. Pfeiffer, 69, has served as a director since 2007 and Chairman of the Board since 2018. Mr. Pfeiffer’s extensive experience includes public company officer, finance and accounting experience, corporate leadership experience, international operations experience, public sector experience as well as service on the boards of directors of other public companies, including service as non-executive chairman of the board of directors and chairman of audit, compensation and executive committees. This experience includes services as Chief Financial Officer and in other senior finance roles and in senior roles involving executive management during his more than 32 years with E. I du Pont de Nemours and Company (DuPont), a large, complex, technology based, multinational science-based products and services company. During his career with DuPont (NYSE: DD), Mr. Pfeiffer held a variety of financial and business leadership positions in the United States, Brazil and Japan. From 1997 to 2006, Mr. Pfeiffer served as Senior Vice President and Chief Financial Officer of DuPont, Mr. Pfeiffer also served as Secretary of Finance for the State of Delaware from January 2009 through June 2009. Mr. Pfeiffer is a member of the board of directors of Quest Diagnostics, Inc. (NYSE: DGX). Mr. Pfeiffer previously served as a director of The Talbots, Inc. from 2004 to May 2012, having last served as its non-executive Chairman of the board of directors and as a director of TerraVia Holdings, Inc., formerly Solazyme, Inc. Mr. Pfeiffer holds a B.A. and an M.B.A. from the College of William and Mary in Virginia.

Gary Pfeiffer’s significant experience in finance and accounting responsibilities and leadership at DuPont as well as his varied director and committee experience at public companies qualifies him to serve as a director of INAP, and to serve as an audit committee financial expert.

Peter D. Aquino, 58, has been our President, Chief Executive Officer and Director since September 2016. He is a veteran of the technology, media and telecommunications (TMT) industries, with a track record of successfully guiding major expansion efforts, turnarounds and strategic partnerships and transactions at both public and private companies. Prior to assuming his role at the Company, Mr. Aquino served as Chairman and Chief Executive Officer, and later as Executive Chairman, of Primus Telecommunications Group, Inc. (“PTGi”) from 2010 until 2013. Under his leadership, PTGi grew into an integrated telecommunications company serving consumer and business customers with voice, data, high-capacity fiber and data center services globally. Prior to this, he was the President and Chief Executive Officer of RCN Corporation from 2004 until 2010 where he built the company into an all-digital HDTV cable multiple system operator and created an advanced fiber-based commercial network through organic and acquisition strategies. He is also the founder of Broad Valley Capital, LLC, where he provided consulting services and capital to improve companies’ business operations, productivity and asset value. He began his career at Bell Atlantic (now Verizon) in 1983. Mr. Aquino currently serves on the board of directors of Alaska Communications Systems Group, Inc. (Nasdaq: ALSK), and recently served on the board of directors of Lumos Networks (Nasdaq: LMOS) and FairPoint Communications, Inc. (Nasdaq: FRP), prior to both being sold in 2017. Mr. Aquino holds a Bachelor’s Degree from Montclair State University and an M.B.A. from George Washington University in Washington, D.C.

Peter Aquino’s significant experience leading public and private companies in growth efforts as well as his varied leadership experience in various strategic transactions qualifies him to serve as a director of INAP.

Your Board of Directors unanimously recommends that you
vote FOR each of the above-listed nominees.

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Continuing Directors Terms Expiring in 2020 (Class III)

Debora J. Wilson, 61, has served as a director since 2010. Ms. Wilson brings more than 30 years of experience managing key operational functions including sales, marketing, product development technology, human resources and finance/accounting. Ms. Wilson gained valuable executive management, business and leadership skills during her service as Chief Executive Officer of a technology-driven company. Ms. Wilson also brings knowledge of corporate governance matters based on her experience as a director of several public and private company boards of directors. Ms. Wilson served as a President and Chief Executive Officer of The Weather Channel from 2004 to 2009 and in other positions including Senior Vice President, Executive Vice President and Chief Operating Officer of The Weather Channel from 1994 to 2004. Before joining The Weather Channel, Ms. Wilson spent 15 years in the telecommunications industry at Bell Atlantic (now Verizon). Ms. Wilson is a member of the board of directors, chair of the compensation committee and member of the audit committee of Markel Corporation (NYSE: MKL) and a member of the board of directors and chair of the compensation committee of ARRIS International, Inc. (Nasdaq: ARRS). Ms. Wilson holds a B.S. in Business Administration from George Mason University in Virginia.

Peter J. Rogers, Jr., 63, has served as a director since 2016. Mr. Rogers brings more than 30 years of experience managing key operational functions including finance, marketing, business development, investor relations and mergers and acquisitions. Most recently, he served as President and Chief Executive Officer of Dovetail Systems of Bethesda, Maryland, a hospitality software company, where he is also a member of its board of directors. In addition, he is board chairman of B4Checkin of Halifax, Nova Scotia, Canada, a privately held hospitality software company. He is also a principal of The Stroudwater Group, a management consulting company located in Washington, D.C. and a member of the New Dominion Angels Investor Group of Northern Virginia. Mr. Rogers started his career in 1979 with General Foods Corporation (now Kraft Foods Corporation, Nasdaq: MDLZ), White Plains, NY, as a Senior Financial Analyst. He spent seven years as a Financial Analyst and Consumer Products Marketing Manager with the Van Leer Corporation, a Dutch company, in its U.S. subsidiary, Keyes Fibre Co. of Stamford, CT. In 1987, Mr. Rogers joined MICROS Systems, Inc., Columbia, MD, as Director of Marketing. Mr. Rogers spent 27 years with MICROS (Nasdaq: MCRS) as it grew from a small company ($18 million revenue and $3 million market capitalization) to a global leader in information systems for the hospitality and retail industries ($1.4 billion revenue and $5.3 billion market capitalization). He served as Director of Marketing, Director of Business Development and a Product Director from 1987 to 1996. Mr. Rogers was Executive Vice President for Business Development and Investor Relations for MICROS from 1996 to 2014. Mr. Rogers left MICROS shortly after it was acquired by Oracle Corporation in 2014. Mr. Rogers also served in the role of setting product and service pricing, initiating its stock repurchase program at the board level, developing and managing its strategic partner relationships, creating its strategic plan and participating in its merger and acquisition efforts. He created its electronic payments business, one of the first integrated credit card payment systems in the hospitality industry. He managed its integrated credit card business for 24 years, extending its platform globally. He previously was an advisor to Purple Cloud Technologies of Atlanta, Georgia, a startup hotel software company. Mr. Rogers has extensive board experience. He served as a board member for StayNTouch (privately held hospitality software company in Bethesda, MD), Johns Hopkins Howard County (MD) General Hospital (Chair, Vice Chairman, and board member), Johns Hopkins Medicine and Executive Boards, the Howard County (Maryland) Economic Development Authority (Chair, Vice Chair, Treasurer and board member), and The Hotchkiss School of Lakeville, CT. He also served as President of the Hotchkiss School Annual Fund. He currently serves on the Advisory Board for Penn State University’s School of Hospitality Management. Mr. Rogers is a graduate of the University of Pennsylvania (BA Economics – Honors) and New York University’s Stern Graduate School of Business (M.B.A. Corporate Finance). He holds a professional certificate in Investor Relations from the University of Michigan Ross School of Business and a Corporate Board Fellowship designation from the National Association of Corporate Directors.

Continuing Directors Terms Expiring in 2021 (Class I)

David B. Potts, 61, has served as a director since 2017. He serves as Executive Vice President and Chief Financial Officer of ARRIS International, Inc. (Nasdaq: ARRS) since 2004 and previously was responsible for the ARRIS’ finance and IT functions from the acquisition of ARRIS Interactive L.L.C. in 2001 until 2016. Prior to joining ARRIS, Mr. Potts was the Chief Financial Officer of ARRIS Interactive L.L.C. from 1995 to 2001. From 1984 through 1995, Mr. Potts held various executive management positions with Nortel Networks, including Vice President and Chief Financial Officer of Bell Northern Research and Vice President of Mergers and Acquisitions in Toronto. Prior to

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Nortel Networks, Mr. Potts was with Touche Ross in Toronto. Mr. Potts holds a Bachelor of Commerce degree from Lakehead University in Canada and is a member of the Institute of Chartered Accountants in Canada. Mr. Potts background and skills qualify him to chair our Audit & Finance Committee and to serve as an audit committee financial expert.

Lance L. Weaver, 64, has served as a director since 2017. He is an accomplished consumer financial services executive with nearly 40 years of experience across the consumer lending, mortgage and credit card asset classes. He has served as an advisor to financial services companies including VISA, Citigroup, Total System Services and Apollo Capital, and was President, Money Cards for Virgin Money Holdings in the U.K. from 2013 to 2015. Before holding these positions, he was President of EMEA Card Services for Bank of America, with approximately $30 billion in assets across Europe, Canada and China. He had previously served on the senior management team of MBNA Corporation for 15 years, where he helped build MBNA into the largest independent credit card lender in the world when it was acquired by Bank of America in 2006. His prior experience includes executive leadership roles with Citigroup, Wells Fargo and Maryland National Bank. Mr. Weaver currently serves as lead director of PRA Group, Inc. (Nasdaq: PRAA). Mr. Weaver is a past member of the Georgetown University board of directors and board of trustees, and a past board chair of MasterCard. Mr. Weaver earned a Bachelor of Arts degree in marketing from Georgetown University.

BOARD AND COMMITTEE MEMBERSHIP AND MEETINGS

Our shareholders elect the Board to oversee management of our Company. The Board delegates authority to the Chief Executive Officer and other executive officers to pursue the Company’s mission and oversees the Chief Executive Officer’s and executive officers’ conduct of our business. In addition to its general oversight function, the Board reviews and assesses the Company’s strategic and business planning and the executive officers’ approach to addressing significant risks and has additional responsibilities including the following:

reviewing and approving the Company’s key objectives and strategic business plans and monitoring implementation of those plans and the Company’s success in meeting identified objectives;
reviewing the Company’s financial objectives and major corporate plans, business strategies and actions;
approving the Company’s annual corporate budget and major capital expenditures and purchase commitments;
selecting, evaluating and compensating the Chief Executive Officer and overseeing Chief Executive Officer succession planning;
reviewing significant risks confronting our Company and alternatives for their mitigation; and
assessing whether adequate policies and procedures are in place to safeguard the integrity of our business operations and financial reporting and to promote compliance with applicable laws and regulations, and monitoring management’s administration of those policies and procedures.

During 2018, our Board held ten meetings. In 2018, each director attended the 2018 Annual Meeting of Shareholders and all directors attended at least 75% of the meetings of the Board and the committees on which they served. We have three standing committees of the Board: the Audit & Finance Committee, the Compensation Committee and the Nominations and Governance Committee. Members of each committee are appointed by the Board and the authority, duties and responsibilities of each committee are governed by written charters approved by the Board. These charters can be found in the “Corporate Governance” section on the Investor Relations page of our website at www.INAP.com. In addition to regular meetings of the Board and committees, we have regular scheduled executive sessions for non-management directors.

The current membership for each of the standing committees is as follows:

Audit & Finance Committee
Compensation Committee
Nominations and
Governance Committee
David B. Potts (Chair)
Debora J. Wilson (Chair)
Gary M. Pfeiffer (Chair)
Gary M. Pfeiffer
Gary M. Pfeiffer
David B. Potts
Peter J. Rogers, Jr.
Lance L. Weaver
Peter J. Rogers, Jr.
 
 
Lance L. Weaver
 
 
Debora J. Wilson

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Audit & Finance Committee

The Board has determined that all members of the Audit & Finance Committee are independent as defined by Nasdaq rules, the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules of the SEC, as applicable to audit committee members. The Board has determined that Mr. Potts, the committee Chairman, and Mr. Pfeiffer are each an “audit committee financial expert” under rules of the SEC. The Audit & Finance Committee met thirteen times in 2018. The Audit & Finance Committee:

appoints, retains, compensates, oversees, evaluates and, if appropriate, terminates our independent registered public accounting firm;
annually reviews the performance, effectiveness, objectivity and independence of our independent registered public accounting firm;
establishes procedures for the receipt, retention and treatment of complaints regarding accounting and auditing matters;
reviews with our independent registered public accounting firm the scope and results of its audit;
approves all audit services and pre-approves all permissible non-audit services to be performed by our independent registered public accounting firm;
assesses and provides oversight to management relating to identification and evaluation of major risks inherent in our business and the control processes with respect to such risks;
oversees the financial reporting process and discusses with management and our independent registered public accounting firm the interim and annual financial statements that we file with the SEC;
reviews and monitors our accounting principles, policies and financial and accounting processes and controls;
oversees our internal audit function and reviews and approves the annual internal audit plan; and
oversees our financial strategy, capital structure, liquidity position, banking relationships, and tax policies.

Compensation Committee

The Board has determined that all members of the Compensation Committee are independent as defined by Nasdaq rules, the Exchange Act and rules of the SEC, as applicable to compensation committee members. The Compensation Committee met seven times during 2018. The Compensation Committee:

assists the Board in discharging its responsibilities relating to executive compensation and fulfilling its responsibilities relating to our compensation and benefit programs and policies;
oversees the overall compensation structure, policies and programs, and assesses whether the compensation structure establishes appropriate incentives for executive officers and employees;
administers and makes recommendations with respect to our incentive compensation plans, including equity-based incentive plans;
reviews and approves the compensation of our executive officers, including bonuses and equity compensation;
reviews and approves corporate goals relevant to executive officers, evaluates the performance of such executive officers in light of these goals and approves the compensation of the executive officers based on the evaluation (other than for the Chief Executive Officer, whose compensation is recommended by the Compensation Committee for approval by the Board);
reviews and monitors the potential risk to the Company from its compensation programs and policies, and whether such programs or policies incentivize or encourage unnecessary and excessive risk taking;
reviews and discusses with management our Compensation Discussion and Analysis and related disclosures required by the rules of the SEC and recommends to the Board whether such disclosures should be included in our proxy statement;

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reviews and recommends employment agreements and severance arrangements for executive officers, including change in control provisions;
reviews the compensation of directors for service on the Board and committees and makes recommendations to the Board regarding such compensation; and
engages, determines compensation for and oversees the work of any consultants and advisors retained by the Compensation Committee, at the expense of the company, and oversees compliance with applicable requirements relating to the independence of such consultants or advisors.

See the “Compensation Discussion and Analysis” section below for more information regarding the Compensation Committee’s processes and procedures.

Nominations and Governance Committee

The Board of Directors has determined that all members of the Nominations and Governance Committee are independent as defined by Nasdaq rules, as applicable to nominating committee members. The Nominations and Governance Committee met five times during 2018. The Nominations and Governance Committee:

assists the Board in fulfilling its responsibilities on matters and issues related to our corporate governance practices;
monitoring and reviewing with management enterprise risk and policies, including those related to operations, information, compliance, data and cyber security;
in conjunction with the Board, establishes qualification standards for membership on the Board and its committees;
leads the search for individuals qualified to become members of the Board, reviews the qualifications of candidates for election to the Board and assesses the contributions and independence of incumbent directors eligible to stand for re-election to the Board;
selects and recommends to the Board the nominees for election or re-election by the shareholders at the annual meeting, and selects and recommends to the Board individuals to fill vacancies and newly created directorships on the Board;
develops and recommends to the Board corporate governance guidelines, reviews the guidelines on an annual basis and recommends any changes to the guidelines as necessary;
establishes and recommends to the Board guidelines, in accordance with applicable rules and regulations, to be applied when assessing the independence of directors;
reviews and approves related person transactions, as defined in applicable SEC rules, and establishes policies and procedures for the review, approval and ratification of related person transactions;
annually reviews and makes recommendations to the Board concerning the structure, composition and functioning of the Board and its committees and recommends to the Board directors to serve as committee members and chairpersons;
reviews directorships in other public companies held by or offered to directors;
assists the Board in developing and evaluating candidates for executive positions, including the Chief Executive Officer, and overseeing development of executive succession plans;
develops and recommends to the Board for its approval an annual self-evaluation process for the Board and its committees and oversees the evaluation process; and
reviews and reports on all matters generally relating to corporate governance.

Compensation Committee Interlocks and Insider Participation

The directors currently on our Compensation Committee are Gary M. Pfeiffer, Lance L. Weaver and Debora J. Wilson. No member of the Compensation Committee is a current or former executive officer or employee of our Company. None of our executive officers served and currently none of them serves on the board of directors or compensation committee of any other entity with executive officers who have served on our Board or Compensation Committee.

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CORPORATE GOVERNANCE

Our Board has adopted Corporate Governance Guidelines that outline the general duties and functions of the Board and management and set forth general principles regarding Board composition, independence, Board meetings and responsibilities, Board committees, annual performance evaluations for the Board and our Chief Executive Officer and management succession and development. The Corporate Governance Guidelines are attached to the charter of the Nominations and Governance Committee, which can be found in the “Corporate Governance” section on the Investor Relations page of our website at www.INAP.com.

Our Corporate Governance Guidelines assist our Board in fulfilling its responsibilities to shareholders and provide a framework for the Board’s oversight responsibilities regarding our business. Our Corporate Governance Guidelines are dynamic and have been developed and revised to reflect changing laws, regulations and good corporate governance practices. The guidelines also provide guidance and transparency to management, employees and shareholders regarding the Board’s philosophy, high ethical standards, expectations for conducting business and decision-making processes.

The following is a summary of certain of our policies and guidelines relating to corporate governance. You may access complete current copies of our Code of Conduct, Corporate Governance Guidelines, Audit & Finance Committee Charter, Compensation Committee Charter, and Nominations and Governance Committee Charter in the “Corporate Governance” section on the Investor Relations page of our website at www.INAP.com. Each of these is also available in print to any shareholder upon request to our Corporate Secretary.

Identification and Evaluation of Director Candidates

The Board prides itself on its ability to recruit and retain directors who have a diversity of experience, who have the highest personal and professional integrity, who have demonstrated exceptional ability and judgment and who are effective (in conjunction with the other members of the Board) in collectively serving the long-term interests of our shareholders. The Nominations and Governance Committee of the Board acts as the Board’s nominating committee. All members of the Nominations and Governance Committee are independent as defined by Nasdaq rules. The Nominations and Governance Committee seeks individuals qualified to become directors and recommends candidates for all director openings to the full Board. For a discussion of the Board’s membership criteria and how the Company seeks to achieve diversity in Board membership and to attract directors with a broad range of skills, expertise, knowledge and contacts to benefit our business, see “Proposal 1 — Election of Directors.” The Nominations and Governance Committee considers director candidates in anticipation of upcoming director elections and other potential or expected Board vacancies.

The Nominations and Governance Committee considers director candidates suggested by directors, executive officers and shareholders and evaluates all nominees for director in the same manner. Shareholders may recommend individual nominees for consideration by the Nominations and Governance Committee by communicating with the committee as discussed below under “Shareholder Communications with the Board of Directors.” From time to time, the Nominations and Governance Committee may retain a third-party search firm to identify director candidates and has sole authority to select the search firm and approve the terms and fees of any director search engagement.

Shareholder Nominations

Shareholders who wish to recommend nominees for consideration by the Nominations and Governance Committee must submit their nominations in writing to our Corporate Secretary. Submissions must include sufficient biographical information concerning the recommended individual, including age, five-year employment history with employer names and a description of the employer’s business, whether such individual can read and comprehend basic financial statements and other board memberships, if any, held by the recommended individual. The submission must be accompanied by a written consent of the individual to stand for election if nominated by the Board of Directors and to serve if elected by the shareholders. The Nominations and Governance Committee may consider such shareholder recommendations when it evaluates and recommends nominees to the full Board for submission to the shareholders at each annual meeting. Shareholder nominations made in accordance with these procedures and requirements must be addressed to the attention of Richard P. Diegnan, Corporate Secretary, Internap Corporation, 12120 Sunset Hills Road, Suite 330, Reston, VA 20190.

In addition, shareholders may nominate directors for election without consideration by the Nominations and Governance Committee. Any shareholder may nominate an individual by complying with the eligibility, advance

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notice and other provisions set forth in our bylaws. A written notice of nomination must be received by our Corporate Secretary at our executive offices in Reston, Virginia, not less than 90 nor more than 120 days prior to the first anniversary of the preceding year’s annual meeting, except in certain circumstances. For purposes of our annual meeting to be held in 2020, such notice must be received not later than March 8, 2020 and not earlier than February 7, 2020. You should address any shareholder nomination to the attention of Richard P. Diegnan, Corporate Secretary, Internap Corporation, 12120 Sunset Hills Road, Suite 330, Reston, VA 20190 and include the information and comply with the requirements set forth in our bylaws. Our bylaws provide that any notice of nomination for director must describe various matters regarding the nominee and the shareholder including, among other things, the name, address, class and number of our shares that are owned beneficially and of record, any relevant agreements, arrangements or understandings between the shareholder and any affiliates or associates, and any arrangements having the effect of mitigating a decrease in our share price or affecting the voting power of the shareholder, including derivative positions.

Our bylaws contain specific eligibility requirements that each nominee for director must satisfy. Each nominee must:

complete and return a written questionnaire with respect to the background and qualifications of such nominee and the background of any other person or entity on whose behalf the nomination is being made; and
provide a written representation and agreement that the nominee would comply with applicable law and our policies and guidelines if elected as a director and that the nominee is not and will not become a party to: (a) any voting commitment that has not been disclosed to us or that could limit the nominee’s ability to comply with applicable fiduciary duties; and (b) any agreement, arrangement or understanding with any person or entity other than us regarding indirect compensation, reimbursement or indemnification in connection with service as a director.

Board Leadership Structure

Our Board does not have a formal policy with respect to whether the Chief Executive Officer should also serve as Chairman of the Board. Our Board makes the decision regarding leadership structure based on its evaluation of the experience, skills and personal interaction between persons in leadership roles as well as the needs of our company at any point in time. When making this decision, the Board considers factors such as:

the person filling each role and his or her experience at the Company and/or in the information technology infrastructure services industry;
the composition, independence and effectiveness of the entire Board;
other corporate governance structures in place;
the compensation practices used to motivate our executive leadership team;
our leadership succession plan; and
the competitive and economic environment facing the Company.

The Board periodically reviews its leadership structure to ensure that it remains the optimal structure for our Company and our shareholders.

Since 2002, we have had different individuals serving as our Chairman of the Board of Directors and Chief Executive Officer. Currently, Gary M. Pfeiffer is our Chairman and Peter D. Aquino is our Chief Executive Officer. As Chairman, Mr. Pfeiffer leads the Board in its role to provide general oversight of board governance for the Company and to provide guidance and support for the Chief Executive Officer. Further, the Chairman sets the agenda for, and presides over meetings of the Board. As Chief Executive Officer, Mr. Aquino is responsible for developing and executing the strategic plan, as well as for overseeing the day-to-day operations and performance of the Company.

We believe that separating the roles of Chairman and Chief Executive Officer represents an appropriate allocation of roles and responsibilities at this time given, among other things, the benefits of Mr. Pfeiffer’s experience, independence and tenure as a director of the Company, which dates back to 2007. Mr. Aquino is well-positioned as the leader to develop and execute the Company’s corporate strategy and to focus on operations and growth initiatives.

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The Company believes this separation of responsibility is appropriate to provide independent Board oversight of and direction for the Company’s executive leadership team, led by Mr. Aquino. Further, the Company believes that having an independent Chairman provides for more effective monitoring and objective evaluation of the Chief Executive Officer’s performance, which enables more direct accountability for the Chief Executive Officer’s performance.

Our Corporate Governance Guidelines provide that if our Chairman is not independent, the Board may designate a Lead Director who will be independent. The Board, however, has not determined it necessary to designate a Lead Director as the Company feels our current structure, as described above, functions well and provides the necessary separation of roles.

Independence

The Board annually assesses the independence of all directors. No director qualifies as “independent” unless the Board affirmatively determines that the director is independent under the listing standards of Nasdaq. Our Corporate Governance Guidelines require that a majority of our directors be independent. Our Board believes that the independence of directors and committee members is important to assure that the Board and its committees operate in the best interests of the shareholders and to avoid any appearance of conflict of interest.

Under Nasdaq standards, our Board has determined that the following five directors are independent: Gary M. Pfeiffer, David B. Potts, Peter J. Rogers, Jr., Debora J. Wilson and Lance L. Weaver. Mr. Aquino is not independent because he currently serves as our President and Chief Executive Officer. For five years, we have had not more than one active or former management employee serving as a director. In that regard, Mr. Aquino has served as a director since his appointment as Chief Executive Officer in September 2016.

Risk Oversight by Our Board of Directors

While risk management is primarily the responsibility of our management team, our Board is responsible for the overall supervision of our risk management activities. The Board implements its risk oversight function both at the full Board level and through delegation to various committees. Each of our committees oversees different risks as part of the Company’s overall risk management activities. These committees meet regularly and report back to the full Board. The Audit & Finance Committee has primary oversight responsibility not only for financial reporting with respect to our major financial exposures and the steps management has taken to monitor and control such exposures, but also for the effectiveness of management’s enterprise risk management process that monitors and manages key business risks facing our Company. The Audit & Finance Committee also oversees our procedures for the receipt, retention and treatment of complaints relating to accounting and auditing matters and oversees management of our legal and regulatory compliance systems. The Audit & Finance Committee amended its charter to expand its role to include oversight of the Company’s financial strategies, capital structure, liquidity position, banking relationships and tax policies. The Compensation Committee oversees risks relating to our compensation plans and programs. The Nominations and Governance Committee regularly reviews our governance structure, practices and policies to improve governance of our Company and our engagement efforts with our shareholders with a goal to promote the long-term interests of our shareholders. The Nominations and Governance Committee reviews and assesses with management material enterprise risks including, but not limited to those risks related to the Company’s operations, information, data and cyber security. The Committee will annually review the Company’s enterprise risk assessment and the enterprise risks identified.

Management provides updates throughout the year to the respective committees regarding the management of the risks they oversee and each of these committees reports on risk to the full Board at regular meetings of the Board. The Board periodically reviews the allocation of risk responsibility among the Board’s committees and implements any changes that it deems appropriate. In addition to the reports from the committees, the Board receives presentations throughout the year from various department and business unit leaders that include discussion of significant risks as appropriate. At each regularly-scheduled Board meeting, the Chairman and Chief Executive Officer address, in a director-only session, matters of particular importance or concern, including any significant areas of risk that require Board attention. Additionally, through dedicated sessions focusing entirely on corporate strategy, the full Board reviews in detail the company’s short- and long-term strategies, including consideration of significant risks facing us and how the risks could impact our business.

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Our Vice President of Internal Audit coordinates the day-to-day financial risk management processes for our Company and reports directly to the Chief Financial Officer and to the Audit & Finance Committee. The Vice President of Internal Audit updates the Audit & Finance Committee at least quarterly in regular and executive sessions regarding the Company’s financial risk analyses and assessments and financial risk mitigation strategies and activities.

Our Chief Governance, Risk and Compliance Officer coordinates the day-to-day business risk management processes for our Company and reports directly to the Chief Executive Officer and to the Nominations and Governance Committee. The Chief Governance, Risk and Compliance Officer updates the Nominations and Governance Committee at least quarterly in regular and executive sessions regarding the Company’s business risk analyses and assessments and business risk mitigation strategies and activities.

We believe that our approach to risk oversight, as described above, optimizes our ability to assess inter-relationships among the various risks, make informed cost-benefit decisions and approach emerging risks in a proactive manner. We also believe that our risk structure complements the current leadership structure of our Board, as it allows our independent directors, through the three fully-independent standing Board committees, to exercise effective oversight of the actions of management in identifying risks and implementing effective risk management policies and controls.

We conducted a risk assessment of our 2018 compensation plans and programs to identify potential risks associated with the design of the plans and programs and assess the controls in place to mitigate risks, if any, to an acceptable level. Based on this assessment, management has concluded that our compensation plans and programs do not contain risks that are reasonably likely to cause a material adverse effect on us. We evaluated each plan and program independently and as part of our overall compensation framework. In general, our compensation plans and programs:

are well documented, appropriately communicated, consistently applied and reviewed annually by the Compensation Committee;
are based on both individual performance and company performance metrics that are tied to the strategic goals and objectives of the Company;
balance short- and long-term rewards, with compensation capped at levels consistent with industry standards;
do not encourage excessive risk taking, do not focus on short-term gains rather than long-term value creation, do not reward circumvention of controls or do not contain unrealistic goals and/or targets; and
are compared to industry standards and peer companies on an on-going basis by both the internal compensation department as well as the Compensation Committee’s independent compensation consultant and amended periodically to maintain consistency with common practices.

Based on these factors, the absence of any identified incentives for risk-taking above the level associated with our business model, the involvement of our independent Compensation Committee and our overall culture and control environment, we have concluded our compensation plans do not promote excessive risk taking.

Stock Ownership Guidelines for Directors and Executive Officers

The Board believes that directors and management should have a significant financial stake in our Company to align their interests with those of our shareholders. In that regard, the Board adopted stock ownership guidelines that require directors and executive officers to own specified amounts of our stock granted to them in connection with their service to the company. The stock ownership guidelines are further described below in “Non-Employee Director Compensation — Stock Ownership Guidelines for Non-Employee Directors” and “Compensation Discussion and Analysis — Stock Ownership Guidelines for Named Executive Officers.”

Code of Conduct and Ethics Hotline

We have a Code of Conduct that covers our directors, officers (including our Chief Executive Officer, Chief Financial Officer and Chief Accounting Officer) and employees and satisfies the requirements for a “code of ethics” within the meaning of SEC rules. A copy of the code is posted in the “Corporate Governance” section on the Investor Relations page of our website at www.INAP.com. The code is available in print to any person without charge, upon request sent to Richard P. Diegnan, our Corporate Secretary at Internap Corporation, 12120 Sunset Hills Road, Suite 330, Reston, VA 20190. We will disclose, in accordance with all applicable laws and regulations, amendments to, or waivers from our Code of Conduct.

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Any suggestions, concerns or reports of misconduct at our company or complaints or concerns regarding our financial statements and accounting, auditing, internal control and reporting practices can be reported by submitting a report on https://INAP.alertline.com/gcs/welcome (anonymously, if desired) or by calling our third-party provider, Global Compliance, Inc. at (800) 323-6182.

Attendance

Attendance at Board and committee meetings is central to the proper functioning of our Board and is a priority. Directors are expected to make every effort to attend all meetings of the Board, meetings of committees on which they serve and the Annual Meeting of Shareholders.

Board and Company Culture

Our Corporate Governance Guidelines are coupled with a robust, open and effective Board environment that promotes respect, trust and candor, fosters a culture of open dissent and permits each director to express opinions and contribute to the Board process. Directors are expected to have unrestricted access to management and any Company information they believe is necessary and appropriate to perform their roles as directors. The participation of Board members and the open exchange of opinions are further encouraged at the Board committee level through the periodic rotation of Board members among its standing committees. This open and candid operating environment is shared by management and the Board and is essential to fully realize the benefits of our Corporate Governance Guidelines, committee charters and other policies governing our company.

Shareholder Communications with the Board of Directors

Shareholders and interested parties may communicate with our Board by sending correspondence to the Board, a specific Board committee or a director c/o Corporate Secretary, Internap Corporation, 12120 Sunset Hills Road, Suite 330, Reston, VA 20190 or by sending electronic mail to corpsec@inap.com.

The Corporate Secretary reviews all communications to determine whether the contents include a message to a director and will provide a summary and copies of all correspondence (other than solicitations for services, products or publications) to the applicable directors at each regularly scheduled meeting. The Corporate Secretary will alert individual directors to items which warrant a prompt response from the individual director prior to the next regularly scheduled meeting. Our Corporate Secretary will route items warranting prompt response, but not addressed to a specific director, to the applicable committee chairperson.

NON-EMPLOYEE DIRECTOR COMPENSATION

In 2018, our Compensation Committee reviewed the amount and mix of our non-employee director compensation program. The Compensation Committee, in consultation with our independent compensation consultant, elected not to increase the amount of non-employee director compensation. However, to better align the interests of our directors and our shareholders and to promote a responsible mix of cash compensation to equity compensation, the Compensation Committee:

reduced the cash retainer paid to each of the directors by $10,000 and increased the annual stock grant by $10,000;
paid the committee chairperson annual retainer and committee member retainer in an equivalent value of restricted shares; and
the number of shares of restricted common stock to be awarded will be determined by dividing the amount of the cash retainer to be received by the applicable director by the 90-day rolling average closing price of a share of common stock on the date of grant. Restricted stock vests on the one-year anniversary of date of issuance.

The Compensation Committee has not increased the total amounts for director retainers, committee chairperson retainers or committee retainers since 2015, only the form of such payments, whether in cash or stock. It is our view that the current non-employee director compensation program, in terms of total value, is generally aligned with other similar companies in terms of market cap, complexity, industry and business stage. In addition, our 2017 Stock Incentive Plan specifically limits the amount of non-employee director compensation we can award to $500,000 per year per non-employee director.

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In 2018, our non-employee director compensation program per non-employee director was as follows:

 
Cash
($)
Restricted Stock
Award
Newly appointed or elected director
 
 
Number of restricted shares
equal to $110,000
Annual director retainer
$
30,000
 
Number of restricted shares
equal to $140,000
Audit & Finance Committee chairperson annual retainer
 
 
Number of restricted shares
equal to $15,000
Audit & Finance Committee member annual retainer
 
 
Number of restricted shares
equal to $7,500
Compensation Committee chairperson annual retainer
 
 
Number of restricted shares
equal to $10,000
Compensation Committee member annual retainer
 
 
Number of restricted shares
equal to $5,000
Nominations and Governance Committee chairperson annual retainer
 
 
Number of restricted shares
equal to $7,500
Chairman annual retainer
 
 
Number of restricted shares
equal to $40,000

The following table lists the compensation paid to our non-employee directors during 2018:

Name(1)
Fees Earned or
Paid in Cash
Stock
Awards(3)
Total
Charles B. Coe(2)
$
25,000
 
$
18,991
 
$
43,991
 
Patricia L. Higgins(2)
 
25,000
 
 
18,869
 
 
43,869
 
Gary M. Pfeiffer
 
30,000
 
 
154,554
 
 
184,554
 
David B. Potts
 
30,000
 
 
137,023
 
 
167,023
 
Peter J. Rogers, Jr.
 
30,000
 
 
134,543
 
 
164,543
 
Daniel C. Stanzione(2)
 
25,000
 
 
34,405
 
 
59,405
 
Lance L. Weaver
 
30,000
 
 
132,841
 
 
162,841
 
Debora J. Wilson
 
30,000
 
 
134,492
 
 
164,492
 
(1) In addition to serving as a director, Mr. Aquino has served as our Chief Executive Officer and President since September 2016 and his compensation is reflected in the Summary Compensation Table. Mr. Aquino does not receive any compensation for serving as a director.
(2) Mr. Stanzione retired from the Board at the 2018 Annual Meeting of Shareholders. Mr. Coe and Ms. Higgins did not stand for re-election at the 2018 Annual Meeting of Shareholders.
(3) Represents the full grant date fair value of restricted stock granted in 2018, calculated in accordance with FASB ASC Topic 718. We value restricted stock using the closing maket price of our common stock reported on Nasdaq on the applicable grant date. All restricted awards are subject to a minimum vesting period of one year from the date the award is made. For additional valuation assumptions, see Note 11 to our Consolidated Financial Statements for the fiscal year ended December 31, 2018. The values in this column may not correspond to the actual value that the non-employee directors will realize at the time that the restricted stock vests.

The following table lists the number of outstanding restricted stock awards and stock options held by our non-employee directors as of December 31, 2018. The reported numbers reflect only grants made by the Company and do not include any other shares of our common stock that a director may have acquired on the open market.

Name
Stock
Awards
#(a)
Options
#(b)
Gary M. Pfeiffer
 
43,969
 
 
8,389
 
David B. Potts
 
19,167
 
 
 
Peter J. Rogers, Jr.
 
37,070
 
 
 
Lance L. Weaver
 
19,007
 
 
 
Debora J. Wilson
 
48,323
 
 
4,072
 
(a) Includes awards of restricted stock net of any shares withheld at the election of a director to satisfy minimum statutory tax obligations upon vesting plus shares acquired upon exercise of vested stock options. Some of the reported grants remain subject to time-based vesting.
(b) All outstanding options are fully vested.

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In 2019, our Compensation Committee reviewed the amount and mix of our non-employee director compensation, in consultation with its independent compensation consultants, the Compensation Committee elected to increase the mix of cash in the director compensation package and decrease the mix of equity. The directors did not receive any increase in compensation. In sum, the Compensation Committee revised as follows:

reduced the retainer paid in stock to each of the directors by $30,000 and increased the cash payment by $30,000; and
paid the committee chairperson annual retainer and committee member retainer in cash instead of common stock.

Stock Ownership Guidelines for Non-Employee Directors

The Board has implemented stock ownership guidelines that require each non-employee director to beneficially own a number of shares of Company common stock equal to five times the annual director retainer as identified above. All non-employee directors meet the required guidelines other than Mr. Rogers, who was appointed to our Board in 2016, and Mr. Potts and Mr. Weaver, who were appointed to our Board in 2017. We believe that these guidelines further align the interests of directors and shareholders. Please see “Compensation Discussion and Analysis — Stock Ownership Guidelines for Named Executive Officers” for additional information regarding the guidelines.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND OFFICERS AND DIRECTORS

Five Percent Shareholders

The following table sets forth information as to those holders known to us to be the beneficial owners of more than 5% of our outstanding shares of common stock as April 8, 2019:

 
Common Stock
Beneficially Owned
Name and Address of Beneficial Owner
Number of
Shares
Percent of
Class(1)
GAMCO Investors, Inc.(2)
 
7,073,690
 
 
26.5
%
Avenir Corporation(3)
 
1,305,017
 
 
4.9
%
BlackRock, Inc.(4)
 
1,461,314
 
 
5.5
%
North Run Advisors, LLC(5)
 
1,595,000
 
 
6.0
%
(1) As of April 8, 2019, based on approximately 26,733,202 shares outstanding on that date.
(2) Based on information set forth in Amendment No. 32 to Schedule 13D filed with the SEC on March 5, 2019. The Schedule 13D indicates that Gabelli Funds, LLC has sole voting over 3,129,564 shares of common stock and sole dispositive power over 139,100 shares of common stock; GAMCO Asset Management, Inc. has sole voting power over 3,018,467 shares of common stock and sole dispositive power over 3,340,917 shares of common stock; Teton Advisors, Inc. has sole voting and dispositive power over 581,097 shares of common stock; Gabelli & Company Investment Advisers, Inc. has sole voting and dispositive power over 2,000 shares of common stock; and Associated Capital Group, Inc. has sole voting and dispositive power over 10,112 shares of common stock. The aggregate number of shares of common stock was 7,073,690 as of March 5, 2019. According to the filing, the business address for each of the foregoing entities is One Corporate Center, Rye, NY 10580.
(3) Based on information set forth in Amendment No. 4 to Schedule 13G filed with the SEC on February 13, 2019. The Schedule 13G/A indicates that as of December 31, 2018, Avenir Corporation beneficially owned 1,305,017 shares of common stock. The address for Avenir Corporation is: 1775 Pennsylvania Avenue NW, Suite 650, Washington, DC 20006.
(4) Based on information set forth in Schedule 13G filed with the SEC on February 13, 2019. The Schedule 13G indicates that as of December 31, 2018, BlackRock, Inc. beneficially owned 1,461,314 shares of common stock. The address for BlackRock, Inc. is: 55 East 52nd Street, New York, NY 10055.
(5) Based on the information contained in a Schedule 13G filed with the SEC on February 14, 2019 by North Run Advisors, LLC (“North Run”), North Run Capital, LP (“North Run Capital”), Todd B. Hammer and Thomas B. Ellis. Each of North Run, North Run Capital, Mr. Hammer and Mr. Ellis may be deemed the beneficial owner of 1,595,000 shares of common stock and has shared power to vote or to direct the vote and shared power to dispose or to direct the disposition of such shares. The business address of each is 24 Federal Street, 9th Floor, Boston, MA 02110.

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Stock Ownership of Management and Directors

The following table sets forth the number of shares of common stock beneficially owned as of April 8, 2019 (or such other date as set forth below) by each of our directors and named executive officers (defined below under “Compensation Discussion and Analysis”) and all of our directors and executive officers as a group. The address of each current director and named executive officer is c/o Internap Corporation, 12120 Sunset Hills Road, Suite 330, Reston, VA 20190.

To our knowledge, except under community property laws, the persons and entities named in the table have sole voting and sole investment power over their shares of our common stock.

 
Common Stock
Beneficially Owned
Name of Beneficial Owner
Number of
Shares(1)(3)
Percent of
Class
Peter D. Aquino
 
983,334
 
 
3.7
%
James C. Keeley
 
77,365
 
 
 
*
Andrew G. Day
 
100,981
 
 
 
*
Richard P. Diegnan
 
88,725
 
 
 
*
Robert M. Dennerlein(2)
 
9,136
 
 
 
*
Corey J. Needles(2)
 
8,306
 
 
 
*
Gary M. Pfeiffer
 
53,969
 
 
 
*
David B. Potts
 
21,667
 
 
 
*
Peter J. Rogers, Jr.
 
47,390
 
 
 
*
Lance L. Weaver
 
19,007
 
 
 
*
Debora J. Wilson
 
96,302
 
 
 
*
All directors and executive officers as a group (13 persons)
 
1,700,016
 
 
6.4
%
* Represents beneficial ownership of less than 1%.
(1) Represents shares granted as restricted stock awards, which remain forfeitable until the achievement of the performance goal and/or lapse of time.
(2) Mr. Dennerlein beneficially owned 9,136 shares as of June 30, 2018 and Mr. Needles beneficially owned 8,306 shares as of December 31, 2018, the last day of each respective former named executive officer’s employment.
(3) Includes shares that may be acquired by the exercise of stock options granted under our equity compensation plans within 60 days after March 22, 2019 as follows:

   

Name
Options (#)
Gary M. Pfeiffer
 
8,389
 
Debora J. Wilson
 
4,072
 

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PERFORMANCE GRAPH

The graph below compares our cumulative five-year total shareholder return on our common stock with the cumulative total returns of the Nasdaq Market Index and the Morningstar Software-Application Index. The graph tracks the performance of a $100 investment in our common stock and the performance of $100 investment in each index (with the reinvestment of all dividends) from December 31, 2013 to December 31, 2018.


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EXECUTIVE OFFICERS

In addition to Mr. Aquino, our President and Chief Executive Officer, whose biographical information appears above, set forth below are the names, ages and biographical information for each of our current executive officers as of April 8, 2019.

Name
Age
Position
Peter D. Aquino
58
President and Chief Executive Officer
James C. Keeley
53
Executive Vice President and Chief Financial Officer
Andrew G. Day
53
Executive Vice President and Chief Operating Officer
Richard P. Diegnan
49
Executive Vice President, General Counsel & Corporate Secretary
John D. Filipowicz
60
Senior Vice President, Chief Administrative Officer & Chief Governance, Risk and Compliance Officer
Richard R. Ramlall
63
Chief Communications Officer
Joseph T. DuFresne
50
Vice President, Corporate Development
Joanna Lanni
49
Vice President, Corporate Controller

James C. Keeley, 53, is currently our Executive Vice President and Chief Financial Officer, and since June 2018 has led INAP’s financial, accounting and information technology functions. Mr. Keeley has over 25 years of financial and accounting leadership experience covering a diverse set of industries. From 2017 to 2018, Mr. Keeley was the Chief Financial Officer of Tahzoo, LLC, a privately held digital marketing and systems integrator. From 2014 to 2017, he provided financial consulting services for small-to-medium sized businesses, including serving as Chief Financial Officer of Icore Networks Inc. and General Manager of the Virginia office of Vonage Holdings Corporation, after its acquisition of Icore. From 2009 to 2013, Mr. Keeley held various financial and accounting positions of increasing seniority at Primus Telecommunications Group, Incorporated, including Chief Financial Officer and Chief Accounting Officer. Prior to 2009, Mr. Keeley held various financial reporting and accounting positions with FBR Capital Markets Corporation, and 3SI Security Systems, Inc. and with two publicly traded companies, The Pep Boys—Manny, Moe & Jack and David’s Bridal, Inc. Mr. Keeley is a certified public accountant. Mr. Keeley holds a Bachelor of Science in Accounting from Fairmont State College.

Andrew G. Day, 53, is currently our Executive Vice President and Chief Operating Officer, and since April 2017 has led our sales, product management, marketing, business development, customer support, technical operations, engineering and program management. Mr. Day provided management and advisory services to the Company as a management consultant with ADAY Management from November 2016 through March 2017. He brings to INAP over 25 years of management experience in telecommunications, technology innovation, sales and marketing leadership. Prior to joining INAP, Mr. Day held several senior leadership positions in sales and general management for technology companies. Most recently, he served as Senior Vice President, Consumer Channels at Rogers Communications, where he led all consumer product sales across all sales channels. Previously, Mr. Day was CEO at PTGi, where he was responsible for the company’s direction and results. Before joining PTGi, he held various roles of increasing responsibility in general management, sales, product management, and finance at AT&T (NYSE: T), Gillette (NYSE: PG) and Xerox (NYSE: XRX). Mr. Day holds an Honours B. Comm. from McMaster University, is a Chartered Public Accountant (CPA) and is also a Chartered Director (C. Dir.).

Richard P. Diegnan, 49, is currently our Executive Vice President, General Counsel and Corporate Secretary, and since November 2016 has led our legal department. Mr. Diegnan has 20 years of experience as a corporate attorney representing a diverse group of clients. He was a partner at Diegnan & Brophy, LLC since its founding in 2005, and concentrated his practice in corporate counseling, mergers and acquisitions, commercial transactions, real estate, land use planning and commercial disputes. Mr. Diegnan served as General Counsel and Chief Administrative Officer to Broad Valley Micro Fiber Networks Inc. Mr. Diegnan served as General Counsel and Chief Financial Officer to Travel Tripper LLC, a hotel web technology company, from 2011 to 2016. Mr. Diegnan was a corporate attorney at McCarter & English LLP from 1999 to 2000 and a corporate attorney in the Merger and Acquisitions Group at Milbank, Tweed, Hadley & McCloy LLP from 2000 to 2005. He began his career at AT&T (NYSE: T) where he held various positions in finance and sales. Mr. Diegnan is licensed to practice in New York and New Jersey and earned his Bachelors of Science in finance from Providence College, an M.B.A. from Fairleigh Dickenson University and a Juris Doctor from Seton Hall University School of Law.

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John D. Filipowicz, 60, is currently our Senior Vice President, Chief Administrative Officer and Chief Governance, Risk and Compliance Officer has been leading INAP’s Human Resources function since January 2017. Mr. Filipowicz has over 30 years of human resources, legal and operations experience in the telecom industry. From September 2013 to December 2016, Mr. Filipowicz provided legal, operations, customer service, sales, human resources training and restructuring expertise to businesses in order to improve overall financial, legal, and operational excellence, including serving as Chief Operating Officer of Telecom Infrastructure Corp. from June 2015 to February 2016. Prior to that, Mr. Filipowicz was the Chief Administrative Officer, General Counsel and Chief Compliance Officer at PTGi from August 2011 to August 2013. Prior to PTGi, he served as the President of Residential Markets, Chief Administrative Officer and Senior Vice President and Assistant General Counsel to RCN Corporation. Mr. Filipowicz holds a J.D. from Western Michigan University and a B.A. from St. Lawrence University.

Richard R. Ramlall, 63, is currently our Chief Communications Officer and has been leading INAP’s Investor and Public Relations function since December 2016. Mr. Ramlall has over 30 years of business development, strategic planning, regulatory, investor relations, international and public relations experience in telecom and media. Most recently, he provided through his own firm, investor relations, financial and regulatory due diligence and compliance, business development, strategic planning, and public relations consulting to public and private organizations. Mr. Ramlall’s corporate experience includes various roles at Verizon (NYSE: VZ), Bechtel Telecom, Spencer Trask Ventures, RCN and PTGi. In 1990, Mr. Ramlall was selected to serve a one year appointment under the Presidential Exchange Executive Exchange program of the White House. Mr. Ramlall serves on the Board of Evolving Systems (Nasdaq: EVOL), a real-time digital engagement accelerator with 100+ customers across 5 continents. Mr. Ramlall holds a B.S. in Business Administration and an M.G.A. (Technology Management) from the University of Maryland.

Joseph T. DuFresne, 50, has been our Vice President, Corporate Development since November 2017 and leads the strategic and financial analyses and execution of inorganic activities including merger and acquisitions, joint-ventures, strategic partnerships, divestitures and other business combinations across INAP’s global footprint. Mr. DuFresne has more than 25 years of operating company and investment banking experience. Prior to INAP, Mr. DuFresne was the CEO and CFO at Broad Valley Micro Fiber Networks Inc. a fiber and wireless infrastructure provider serving the Mid-Atlantic. Mr. DuFresne also spent more than a decade in investment banking where he focused on the telecommunications sector with a focus on infrastructure businesses, including metro fiber and data center-related businesses. Over the course of his banking career, Mr. DuFresne executed a broad array of debt and equity financings and buy and sell-side M&A transactions in the U.S., Europe and Japan. Mr. DuFresne was a member of the media and telecom investment banking groups at UBS and Oppenheimer & Co. and began his banking career in the telecom group at Deutsche Bank Securities. Mr. DuFresne started his career at UOP, a process technology licensor for the petrochemical and oil and gas industries. While at this company, he lived and worked outside the U.S., including time in Europe, Russia, Asia, South America and Africa in various roles from technical service to project sales. Mr. DuFresne holds an M.B.A. from the Tuck School of Business at Dartmouth College and a Bachelor of Science in chemical engineering from Montana State University.

Joanna E. Lanni, 49, has been our Vice President, Corporate Controller since January 2018. Ms. Lanni has nearly 20 years of financial and accounting leadership experience covering a diverse set of industries. Ms. Lanni served as a Vice President, Corporate Controller for Synchronoss Technologies, Inc. (Nasdaq: SNCR) since 2015 to 2018 and Corporate Controller from 2014 to 2015. Prior to Synchronoss, Ms. Lanni served as Technical Accounting Director of Integra LifeSciences Holdings Corporation (Nasdaq: IART). Prior to Integra, from 1998 to 2012, Ms. Lanni held various positions with Ernst & Young LLP, leading audit engagement teams and audit planning for clients. Ms. Lanni is a Certified Public Accountant and holds a B.S. in Accounting from Rutgers University.

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COMPENSATION DISCUSSION AND ANALYSIS

Executive Summary

Overview of 2018

2018 was a transformative year for our Company. As part of our continued turnaround plan, we accomplished several critical financial and operating performance objectives:

2018 reported revenue increase is a combination of organic and acquisition growth, offset by portfolio improvement initiatives and accelerated data center closures;
The INAP sales team is rebuilt and actively selling larger deals, with overall improved productivity;
Completed two tuck-in deals in 2018: SingleHop to upgrade Managed Services, and our BofA Data Center in Phoenix to add a new INAP Flagship;
Margin expansion continued through best practices; cost rationalization; and real estate portfolio management; and
Projects related to the two-year turnaround are completed: cost-cutting; rebuild the sales team; and balance sheet improvement with incremental opportunity to always improve cost structure with targeted investments.

In order to achieve our strategic plans, INAP requires a team of talented, fully engaged executive officers committed to the successful achievement of our long-term goals. In alignment with this, our Compensation Committee is committed to a pay for performance culture. Cash bonuses and the value of the equity we award to our executive officers are directly linked to our Company’s performance. Executives are rewarded against the achievement of the three key metrics which we believe will facilitate the long-term profitable growth of our Company and, thus contribute to long-term value for our shareholders: revenue, Adjusted EBITDA (non-GAAP)1 and Adjusted EBITDA less CAPEX (non-GAAP)1. Consistent with prior years, our 2018 executive compensation program generally included base salary, the opportunity to earn a cash bonus under our short-term cash incentive program and long-term equity incentives that included shares of performance-based and time-vested restricted stock.

Our Approach to 2018 and 2019 Compensation

As we continue to execute our turnaround plan, we designed our 2018 compensation programs to be consistent with our business strategy, while aligning the economic interests of our executive officers with our shareholders. With this goal in mind, we structured our 2018 short-term incentive program to reward our executive officers for the achievement of important Company financial metrics as well as a discretionary component to promote select non-financial goals and encourage superior individual performance. We selected revenue, Adjusted EBITDA and Adjusted EBITDA less CAPEX as the financial metrics for our short-term incentive program in 2018 and set targets that we believed would drive shareholder value. The discretionary component is based on achievement of individual management objectives established for each named executive officer by the Chief Executive Officer and approved by the Compensation Committee. All of our employees, including our executive officers, must be employed by the Company on the date of award and short-term incentive awards are calculated based on annual base earnings.

In 2019, the Compensation Committee determined to modify certain measures for the short-term incentive program. The 2019 short-term incentive program will reward our named executive officers for achievement of selected financial metrics to include revenue and Adjusted EBITDA, as the Compensation Committee desired to place greater focus on these two metrics and are not duplicative of the long-term incentive program. Further, each named executive officer will continue to have a discretionary component that will be measured against individual or team management objectives set by the Chief Executive Officer and approved by the Compensation Committee.

For 2018, we elected to use restricted stock for our long-term incentive plan, with 50% of the total award tied to achieving financial objectives to promote our Company’s performance and 50% time-vested to promote retention. The performance-based component is based on attainment of the Adjusted EBITDA less CAPEX metric established by the Compensation Committee. It was chosen to align cash flow objectives of the Company that we believe will ultimately support long-term value creation and positively impact our stock price.

1 Adjusted EBITDA and Adjusted EBITDA less CAPEX are non-GAAP financial measures, which we define in Annex A to this proxy statement. Reconciliations between Adjusted EBITDA and Adjusted EBITDA less CAPEX to the most directly comparable GAAP measures are also provided in Annex A to this proxy statement.

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This design incents and rewards our named executive officers for the achievement of our short-term (annual) goals, instills discipline in spending, and focuses management on our long-term strategic goals. Our compensation plans are designed to avoid excessive risk-taking and we believe that the Adjusted EBITDA less CAPEX metric addresses this objective. We have determined to use the Adjusted EBITDA less CAPEX metric for the performance-based portion of the total award in 2019. As in 2018, 50% of the award will be tied to achieving Adjusted EBITDA less CAPEX goals and 50% will be time-vested to promote retention. Failure to achieve the Adjusted EBITDA less CAPEX metric will result in the forfeiture of the performance-based portion of the long-term incentive award.

Long-term equity incentive compensation is granted under our 2017 Stock Incentive Plan, as amended (the “2017 Plan”), which our shareholders approved at the 2017 annual meeting of shareholders and amendments at the 2018 annual meeting. The 2017 Plan has 2,125,000 shares available for issuance, and as of March 22, 2019, 2,125,000 shares of restricted stock have been granted pursuant to the 2017 Plan. We are planning to continue the overall form and structure of this long-term equity compensation program in 2019, subject to the approval of proposal 4 by the shareholders.

Our Compensation Practices

We target the elements of our compensation program to provide employees, including our executive officers, with a compensation program that is market competitive and intended to reward them for our financial and operational performance. We are committed to a pay for performance program that is designed to reward employees for the Company’s success.

We target base salaries and short-term and long-term compensation for employees, in the aggregate, to be market competitive with similar companies in our industry. Our goal in setting our compensation program is to maintain an appropriate cost structure while at the same time attracting, motivating and retaining talented employees at all levels. Further, we seek to provide our executive officers with significant wealth creation opportunities when they deliver successful results through long-term equity grants, which, coupled with our rigorous stock ownership guidelines, provides a strong alignment between our executive compensation program and the interests of our shareholders.

In setting the compensation of our executive officers, our Compensation Committee uses peer group data prepared and analysis conducted by Compensation Strategies, Inc. (“CSI”), the independent compensation consultant to our Compensation Committee. CSI assesses the competitiveness of our compensation levels and provides a target range for our compensation programs. More specifically, we target the compensation levels of our executive officers to be within an acceptable range around the median compensation for similar positions at our peer group. Where appropriate, we adjust compensation elements to account for factors such as the individual’s level of experience, responsibilities, performance, retention considerations, market trends, relative internal impact of the role and expected future contributions. Ultimately, the determination of the compensation level for any executive officer is developed using a balanced consideration of all of these factors.

We review and evaluate our compensation programs, practices and policies on an ongoing basis, but at least annually. We modify our compensation programs to address evolving best practices and criteria and we believe that the compensation programs are designed to motivate our employees, including executive officers, to perform in the best interests of our shareholders. We have provided below some of the more significant practices.

Base Salaries Were Not Increased in 2018 and Were Modified In 2019 Only for Instances of Significant Increase in Responsibility. Our Board did not increase base salaries for 2018, and modest salary increases were made in 2019 for Messrs. Day and Diegnan, each of which took on significant additional responsibilities. The base compensation for the executive officers hired in 2016, 2017 and 2018, including Messrs. Aquino and Keeley, have been fixed to be within an acceptable range around the median compensation for our peer group for similar positions.
Performance-Based Approach for Short-Term and Long-Term Awards. We pay our executive officers for performance. In that regard, short-term incentive awards for executive officers are determined by our 2018 corporate performance and individual performance. In 2018, long-term incentive awards were determined by our 2018 corporate performance as well. Consistent with past practices, the ultimate value of the long-term incentive awards is largely determined by INAP’s performance, including the trading price of our common stock.
Short-Term (Annual) Incentive Compensation Plan Incorporates Key Financial Metrics and Individual Performance. In 2018, we continued our performance-based focus

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aligning all executive officers toward similar corporate and, in the case of the business unit executives, business unit financial goals. Each of our executive officers is eligible to earn an award for achievement of the Company’s revenue, Adjusted EBITDA and Adjusted EBITDA less CAPEX financial targets and achievement of individual or team performance objectives if the minimum threshold level for the Adjusted EBITDA target for the Company is achieved. Our executive officer that led our INAP INTL business unit is focused both on these three corporate financial targets as well as revenue, Adjusted EBITDA and Adjusted EBITDA less CAPEX targets of the business unit. For 2018, this individual was eligible to receive 70% of his total award for achievement of the corporate financial targets noted above and 30% of their total award based on their individual business unit targets as well as achievement of personal performance if the minimum threshold level for corporate Adjusted EBITDA was achieved. We believe this structure increases the alignment of individual incentives with the creation of shareholder value.

Perquisites. Our current policy does not provide perquisites to our executive officers. In addition, the Company has no pension plan.

Our Commitment to Best Practices in Compensation and Corporate Governance - What We Do and Don’t Do

Pay for Performance. The majority of each named executive officer’s annual compensation is variable and tied to the achievement of corporate and individual performance goals.
Minimum Vesting Requirement. Subject to limited exceptions under the 2017 Plan, awards granted under the 2017 Plan will be subject to a minimum vesting period of one year from the date the award is made.
No Tax Gross-Ups. None of the named executive officers, including our CEO, is entitled to any tax gross-up for the payment of 280G excise taxes.
Robust Stock Ownership Guidelines. Our stock ownership guidelines further align the interests of our executive officers and directors with those of our shareholders. These individuals are required to beneficially own a number of shares of common stock as determined below:
Individual
Multiple
Chief Executive Officer
6.0x base salary
Chief Financial Officer
3.0x base salary
All Other Executive and Senior Vice Presidents
2.0x base salary
Non-Employee Directors
5.0x annual retainer

The guidelines require these individuals to retain 100% of the shares granted to them by the Company (net of applicable taxes) until the guidelines are achieved.

We Use Double Trigger Change in Control Agreements. Our executive officers will receive specified payments and acceleration of vesting of equity in the event of a change in control. The payments and acceleration of vesting are considered “double trigger,” that is, an individual will only be entitled to a change in control payment and acceleration of vesting if the Company has experienced a change in control and a qualifying termination occurs following such change in control.
Our Clawback Policy and Equity Agreements Mitigate Undue Risk. Our clawback policy allows us to recover compensation paid to executive officers whether or not they engaged in fraud or intentional misconduct in the event of a financial statement restatement. In addition, all our equity agreements under the 2017 Plan contain a “clawback” provision that provides us with the ability to impose the forfeiture of awarded equity compensation in the event of any financial restatement or mistake in financial calculations.
No Perquisites. Our current policy does not provide our executive officers with executive perquisites.
No Hedging or Speculative Transactions. All of our employees, including executive officers, and directors are prohibited from engaging in any hedging or speculative transactions in Company securities, including engaging in any prepaid forward contracts, equity swaps, collars and exchange funds or any other transaction in which the person could profit if the value of our stock falls, including short sales of Company securities and put options on Company securities.

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No Pledging Transactions. All of our employees, including executive officers and directors, are prohibited from pledging Company securities as collateral for a margin loan or otherwise.
No Repricing of Stock Options without Shareholder Approval. We are not permitted to reprice stock options without shareholder approval.
Limit on Incentive Awards. In 2018, the maximum potential payout to named executive officers under our short-term (annual) incentive plan is limited to the following percentages of base salary: CEO: 200%; CFO: 62.5%, and 62.5% for our other named executive officers.
We Conduct an Annual Compensation Risk Assessment. Our Compensation Committee annually reviews and approves our compensation strategy, which includes a review of compensation-related risk management. In its review, the Compensation Committee analyzes our compensation program for all employees, including short-term (annual) incentive compensation and long-term incentive compensation. The Compensation Committee does not believe that our compensation program encourages excessive or unnecessary risk-taking.
Our Compensation Committee is Independent. Our Compensation Committee is comprised solely of independent directors as defined by Nasdaq, SEC rules and our director independence standards.
We Use an Independent Compensation Consultant. The Compensation Committee has directly retained its compensation consultant, who performs no other consulting or other services for our Company. Our Compensation Committee has evaluated the independence of its compensation consultant and determined that the consultant can provide independent and objective advice and its engagement does not present any conflicts of interest.

Advisory Vote and Frequency of Voting on Executive Compensation

We hold an advisory shareholder vote on our executive compensation practices (“say-on-pay”) at each annual meeting. After consideration of this shareholder vote at our 2018 annual meeting and given the support received from shareholders at such meeting (approximately 87% of the votes cast were in favor of our executive compensation program), the Compensation Committee believes that shareholders support our executive compensation programs and practices. Therefore, the Compensation Committee continued to apply the same general principles described in this Compensation Discussion and Analysis in its determination of the amounts and types of executive compensation.

At the 2017 annual meeting of shareholders, our shareholders overwhelming voted for an annual vote on the frequency of the advisory vote on executive compensation. In response to the vote, our Board adopted a policy to hold an annual vote on executive compensation.

We encourage you to read the entire Compensation Discussion and Analysis for a detailed discussion and analysis of our executive compensation program, including information about the compensation components for our named executive officers.

Overview of Our Executive Compensation Program

The principal components of our 2018 executive compensation program were base salary, a short-term (annual) cash incentive based on corporate (and, as applicable, business unit) financial performance, individual performance, and a long-term equity incentive consisting of performance-based and timed-vested restricted stock. Our executive compensation program is benchmarked against the median compensation at a group of peer companies (as described below) as well as the median level of compensation derived from broad-based surveys of companies of similar size to us. We use this market compensation information to evaluate the competitiveness of our executive compensation program relative to our peers.

This section refers to the compensation of our “named executive officers” unless we note otherwise:

Peter D. Aquino, our President and Chief Executive Officer; hired in September 2016;
James C. Keeley, our Executive Vice President and Chief Financial Officer, hired in June 2018;
Andrew G. Day, our Executive Vice President and Chief Operating Officer, hired in April 2017;
Richard P. Diegnan, our Executive Vice President, General Counsel and Corporate Secretary; hired in November 2016;

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Robert M. Dennerlein, our former Senior Vice President, Chief Financial Officer, who separated from the Company on June 30, 2018; and
Corey J. Needles, our former Senior Vice President and General Manager, INAP US, who separated from the Company on December 31, 2018.

Board and Compensation Committee Responsibilities

The Compensation Committee reports to our Board on all compensation matters for our executive officers, including our named executive officers. You may learn more about the Compensation Committee’s responsibilities by reading the Compensation Committee’s charter, which is available in the “Corporate Governance” section on the “Investor Relations” page of our website at www.INAP.com.

The Compensation Committee annually reviews and approves the compensation of our named executive officers, other than the CEO, and annually reviews and makes recommendations to the full Board regarding the compensation of our CEO. A majority of the independent directors of the full Board must approve the compensation of our CEO.

Compensation is Linked to Corporate and Individual Performance

We design and manage our compensation programs to align with our overall business strategy and to create value for our shareholders. We believe it is important that our compensation programs have the following components:

Compensation Should Be Competitive. Our programs are designed to attract, motivate and retain talented individuals at all levels of our Company. We structure our compensation programs to be competitive with the compensation paid by companies with whom we compete for similar employee talent in our industry and adjacent industries.
Compensation Should Be Linked to Performance. Many of our employees, including our named executive officers, are eligible to participate in our short-term (annual) incentive plans and long-term equity incentive compensation program. We select performance goals that, to the extent achieved, we believe will facilitate the long-term profitable growth of our Company and, thus, contribute to long-term value for our shareholders. We believe that the link between compensation and corporate performance motivates and rewards employees, including named executive officers, for achieving and exceeding performance goals, without creating a sense of entitlement and without encouraging excessive risk-taking.
Compensation Should Align the Interests of Our Named Executive Officers with Our Shareholders. Our annual performance goals are intended to drive the creation of long-term shareholder value. Long-term equity incentive compensation generally vests over a multiple year period and the value of such grants to the recipients increases or decreases based on changes in the price of our common stock over time. Our named executive officers are subject to robust stock ownership guidelines. Given the wealth creation opportunities for achievement of successful results that are inherent in our long-term incentive compensation program, and the obligation of our named executive officers to retain a specific level of equity, we believe that our long-term equity incentive compensation program appropriately links the interests of our named executive officers and shareholders.

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Components of our Executive Compensation Program

In 2018, the components of our executive compensation program, the primary purpose of each component and the form of compensation for each component are described in the following table:

Component
Primary Purpose
Form of
Compensation
Base Salary
Provides base compensation for day-to-day performance of job responsibilities and determines the target for short-term incentive compensation
Cash, paid periodically
 
 
 
Short-Term (Annual) Incentive Plan
Motivates and rewards for the achievement of corporate and, as applicable, business unit financial goals, as well as individual performance
Cash, paid annually
 
 
 
Long-Term Equity Incentive Plan
Provides incentive for long-term performance, retention and motivation, thereby aligning the financial interests of our named executive officers with the interests of our shareholders
Equity denominated in shares of our common stock, awarded annually

Allocation of Compensation Components

We manage our business with the goal of maximizing shareholder value, and, accordingly, the majority of the compensation of our named executive officers is variable and linked to the Company’s performance. The incentive components of our compensation program for named executive officers which are linked to corporate performance (short-term (annual) incentive compensation and the value of long-term equity incentive compensation) are designed so that a majority of named executive officers’ total annual compensation is at risk and based on our performance. Whether named executive officers actually receive the targeted incentive compensation level depends on the overall performance of our Company and our stock price.

The Compensation Committee considers qualitative and quantitative factors when establishing compensation for each named executive officer. We do not have a specific formula for the allocation of the various compensation elements (or pay mix) between fixed (base salary) and variable pay, nor for the individual elements of compensation (base salary, short-term (annual) incentive and long-term equity incentive). However, our expectation is that the short-term cash and long-term incentive components of the named executive officer’s total compensation package will comprise the majority of their total targeted compensation. We determine the compensation structure for each individual based on our assessment of a number of factors including:

the long-term strategic and shorter-term operational objectives of our business;
an analysis of the compensation components and amounts at peer companies;
broad-based survey data from companies in our industry and of similar size; and
the named executive officer’s level of experience, responsibilities, performance, retention considerations, market trends, relative internal impact of the role and expected future contribution.

Peer Group and Use of Market Data

CSI has served as the independent compensation consultant to the Compensation Committee since 2009. CSI assists the Compensation Committee in designing and implementing our executive compensation program and provides analytical review and assessment of our executive compensation program. In connection with its engagement of CSI and from time to time, the Compensation Committee considered various factors bearing upon CSI’s independence including, but not limited to, the amount of fees received by CSI from us as a percentage of CSI’s total revenue, CSI’s policies and procedures designed to prevent conflicts of interest and the existence of any business or personal relationship that could impact CSI’s independence. After reviewing these and other factors, the Compensation

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Committee determined that CSI was able to provide independent and objective advice and that its engagement did not present any conflicts of interest. Other than executive and Board compensation consulting, CSI did not provide any other services to the Company in 2018. The Compensation Committee has continued to engage CSI for executive compensation services in 2019.

The Compensation Committee and management sought the views of CSI regarding market trends for executive compensation and analysis of specific compensation program components. CSI provides information comparing direct compensation for the named executive officers to market data from a group of peer companies (as described below) as well as other broader-based survey sources. “Direct compensation” encompassed base salary, annual bonus opportunities and long-term compensation in the form of equity grants. CSI also assisted in the analysis for determining the number of additional shares to be authorized for issuance under the 2017 Plan as set forth in Proposal 4. Based on CSI’s recommendation, the Compensation Committee selected a group of peer companies that has been used since 2013 in establishing compensation levels for the named executive officers. CSI has provided median percentile compensation information from this peer group for base salary and short-term and long-term incentive compensation and has updated it during the period to reflect estimated changes in market term levels. Consistent with standard practices, due to the varying sizes of the companies included in the peer group, CSI used statistical analysis to “size-adjust” the market compensation data to reflect our relative annual revenue. This peer group consisted of the following public companies and the companies noted in footnote 1 below:

Bottomline Technologies, Inc.
J2 Global Communications, Inc.
Synchronoss Technologies, Inc.
Cogent Communications Group, Inc.
Limelight Networks, Inc.
Virtusa Corporation
Coresite Realty Corp.
LogMeIn, Inc.
 
Digi International Inc.
NIC, Inc.
 
(1) Since the selection of the group of peer companies, Aruba Networks, Inc., Cbeyond, Inc., Digital River, Inc., Inteliquent, Inc., Keynote Systems, Inc., Neustar, Inc., Riverbed Technology, Inc., and Websense, Inc., are no longer operating as individual public companies; however, data from these peer companies prior to ceasing operations were used in our analysis.

For 2019, the Compensation Committee will use a peer group consisting of the following public companies:

   

Boingo Wireless, Inc.
Extreme Networks, Inc.
LogMeln, Inc.
Bottomline Technologies, Inc.
Global Eagle Entertainment, Inc.
MobileIron, Inc.
Brightcove, Inc.
Gogo, Inc.
NIC, Inc.
Carbonite, Inc.
GTT Communications, Inc.
QTS Realty Trust, Inc.
Cogent Communications Holdings, Inc.
Limelight Networks, Inc.
Quinstreet, Inc.
Coresite Realty Corp.
Liquidity Services, Inc.
Ribbon Communications, Inc.
CyrusOne, Inc.
Liveperson, Inc.
Web.com Group, Inc.

The Compensation Committee considers the market compensation data provided by CSI, the experience level of each named executive officer and the responsibilities associated with a particular named executive officer’s role as multiple reference points in evaluating the compensation components and aggregate compensation package for each of the named executive officers. Generally, we target our compensation program to fall within a reasonable range around the median of the market compensation data for similarly-sized companies in the industries in which we compete (telecommunications, information technology, data center cloud computing and hosting industries). While we target the median in the aggregate, individual named executive officer compensation may be either below or above the median based on individual circumstances including performance, experience and/or recruiting and retention needs. When our corporate performance exceeds targets established by the Compensation Committee, the total cash compensation paid to our named executive officers, as a group, may exceed targeted total cash compensation levels, which reflects the Compensation Committee’s commitment to pay for performance. When our corporate performance does not meet our established targets, total cash compensation of our named executive officers generally would be below targeted levels, which also reflects a commitment to pay for performance.

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Principal Components of our Executive Compensation Program

Base Salary

Base salary is the only fixed component of our named executive officers’ total compensation package. Our annual salary review process is based on our overall annual budget guidelines and is influenced by, among other things, competitive market data (provided by CSI), role and responsibility in our Company and individual performance. Our salary increase philosophy provides for larger increases for higher levels of individual performance and increased responsibilities.

Annual Performance Review

All employees, including named executive officers, undergo an annual performance review. The employee’s performance for the prior year is evaluated by his or her direct manager.

Our CEO reviews the performance for each executive officer, which includes the individual’s overall responsibilities, specific operational goals and objectives, results and tenure in the particular position. The CEO uses his judgment in assessing those factors in both a quantitative and qualitative manner. Together with the competitive market data, this review guides the CEO’s recommendation for each named executive officer’s salary increase. Each year, our CEO reviews the competitive market data along with his recommendations for salary increases with the Compensation Committee. The Compensation Committee makes the final determination of each executive officer’s base salary.

With respect to the performance assessment of the CEO, the Compensation Committee reviews his performance against his pre-defined goals and objectives, the performance of our Company and competitive market data and makes a recommendation to the full Board as to any change in base salary. After considering the recommendation of the Compensation Committee, the full Board (excluding Mr. Aquino), consisting of all independent directors, meets in executive session to determine and approve the CEO’s base salary.

2018 and 2019 Base Salaries. In our continued effort to focus on performance-based compensation and incentives and our philosophy that a majority of named executive officers’ total annual compensation is at risk and based on our performance, the Compensation Committee did not approve any salary increases (detailed in the table below) for 2018 for our named executive officers, including our CEO (whose base salary was determined by the Board), as described below. For 2019, modest salary increases were made for Messrs. Day and Diegnan for their promotions and increased responsibilities. In 2016, 2017 and 2018, the Company hired new executive officers and each respective executive officer’s salary was based on market guidelines influenced by competitive market data at the time of hire.

Name
2018 Base
Salary Increase
(%)
2018
Base Salary
($)
2019 Base
Salary
Increase
(%)
2019
Base Salary
($)
Peter D. Aquino
 
 
$
505,000
 
 
 
$
505,000
 
James C. Keeley
 
 
$
275,000
 
 
 
$
275,000
 
Andrew G. Day(1)(2)
 
 
$
247,900
 
 
21
%
$
300,000
 
Richard P. Diegnan(1)
 
 
$
225,000
 
 
11
%
$
250,000
 
Robert M. Dennerlein
 
 
$
275,000
 
 
 
 
 
Corey J. Needles
 
 
$
250,000
 
 
 
 
 
(1) In connection with these executives’ promotions to Executive Vice Presidents, the Compensation Committee modestly increased these executives’ salaries.
(2) Mr. Day is paid in Canadian dollars. For this table, amounts were converted in US dollars based on the exchange rate of 0.74 on December 31, 2018.

Short-Term (Annual) Incentive Compensation

Our Compensation Committee believes short-term incentive compensation opportunities for named executive officers should be competitive with incentive compensation at peer companies of similar size and companies with whom we compete for exceptional talent. Our corporate financial targets are based on our financial plan approved

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by the Board. This approach ensures alignment and focus among named executive officers around the attainment of corporate and business unit financial targets. The Compensation Committee considers, among other things, each named executive officer’s performance, experience level and potential to impact our short-term performance when setting an individual’s annual incentive compensation opportunity.

Our Compensation Committee approved target awards to named executive officers as a percentage of base salary, approved performance metrics, and reviewed results achieved compared to such performance metrics. The Board (excluding Mr. Aquino) approved any award to Mr. Aquino after receiving recommendations from the Compensation Committee.

Short-Term Annual Incentive Plan. In 2018, we continued our pay for performance focus, and all named executive officers with similar corporate and, in the case of our business unit executives, business unit financial goals. Each of our executive officers is eligible to receive an award under our 2018 Short-Term Incentive Plan (the “2018 STIP”) for achievement of revenue, Adjusted EBITDA, Adjusted EBITDA less CAPEX and personal performance targets only if the threshold level for Adjusted EBITDA is achieved. Any award earned under the 2018 STIP was tied to the following Board-approved financial targets and personal performance:

revenue (20% of potential award);
Adjusted EBITDA (50% of potential award);
Adjusted EBITDA less CAPEX (20% of potential award); and
individual and team performance goals (10% of potential award).

Our executive officer that led our INAP INTL business unit, Mr. Day, was focused on these three corporate financial targets in addition to financial targets of his business unit. An award earned under the 2018 STIP was based on the following allocation:

revenue (15% of potential award);
Adjusted EBITDA (40% of potential award);
Adjusted EBITDA less CAPEX (15% of potential award); and
individual and team performance goals (30% of potential award).

Each named executive officer was evaluated based on the achievement of individual and team performance goals.

Peter D. Aquino achieved his individual leadership and operational goals, including acquisition of SingleHop LLC and additional flagship data centers, as well as developed international strategic partnerships.
James C. Keeley achieved his individual and group goals of restructuring his group, as well as supporting the audit, tax, accounting, information technology, and procurement functions.
Andrew G. Day achieved individual and group goals including improved customer relationships, closing strategic transactions, and developing his leadership team.
Richard P. Diegnan achieved his individual and group goals of supporting the Company with respect to transactions, litigation, contracts, regulatory filings including SEC filings and other legal matters.

Since Messrs. Dennerlein and Needles separated from the Company in 2018, they were not eligible for a STIP award.

Our revenue, Adjusted EBTIDA and Adjusted EBITDA less CAPEX targets for the 2018 STIP were as follows:

Criteria
Target
($ in millions)
2018 Actual
Performance
($ in millions)
Achievement
(%)
Revenue
$
322
 
$
317
 
 
98
%
Adjusted EBITDA (non-GAAP)(1)
$
110
 
$
111
 
 
101
%
Adjusted EBITDA less CAPEX(1)
$
60
 
$
70
 
 
115
%
(1) Adjusted EBITDA and Adjusted EBITDA less CAPEX are non-GAAP financial measures, which we define in Annex A. Reconciliations between Adjusted EBITDA and Adjusted EBITDA less CAPEX to the most directly comparable GAAP measures are also provided in Annex A.

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The minimum, target and maximum payouts for corporate and business unit goals were as follows:

 
% Achievement
versus Target
Potential
Corporate Payout
Potential
BU Payout
Max.
 
105
%
 
125
%
 
125
%
Target
 
100
%
 
100
%
 
100
%
Min.
 
95
%
 
75
%
 
75
%

The Compensation Committee elected to use revenue, Adjusted EBITDA and Adjusted EBITDA less CAPEX because each performance metric is tied to long term profitable growth and the creation of shareholder value. The Compensation Committee designed the 2018 STIP to only award cash bonuses if the named executive officers achieved at least 100% (the target level) of Adjusted EBITDA performance, regardless of achieving revenue or Adjusted EBITDA less CAPEX targets.

Each named executive officer’s target award is disclosed below and in the Grants of Plan Based Awards table, as well as the threshold and maximum award under the 2018 STIP. Target awards for Messrs. Aquino, Keeley, Day and Diegnan were also set forth in each executive officers’ employment agreement or employment arrangement as set forth under “Employment Agreements with the Named Executive Officers”.

 
Potential STIP Payout
Name
Target
%
2018
Earned
Salary
Threshold
Target
Max
Peter D. Aquino(1)
 
100
%
$
505,000
 
$
252,500
 
$
505,000
 
$
1,010,000
 
James C. Keeley
 
50
%
$
148,077
 
$
37,019
 
$
74,038
 
$
92,548
 
Andrew G. Day(2)
 
50
%
$
247,900
 
$
61,975
 
$
123,950
 
$
154,938
 
Richard P. Diegnan
 
50
%
$
225,000
 
$
56,250
 
$
112,500
 
$
140,625
 
(1) Pursuant to Mr. Aquino’s Employment Agreement, the maximum potential cash bonus he can receive is 200% of base salary.
(2) Mr. Day is paid in Canadian dollars. For this table, amounts were converted in US dollars based on the exchange rate of 0.74 on December 31, 2018.

We believe that the structure of our 2018 STIP appropriately aligns the interests of our executive officers with those of our shareholders.

For 2018, the Compensation Committee (and the Board in the case of our CEO) evaluated our corporate performance, applicable business unit performance and individual performance in determining the awards paid to each named executive officer. Targets for each of the performance objectives discussed above are designed to enhance stockholder value, are competitive and support our financial plan and overall business goals. Each named executive officer, other than Mr. Day, received an award above their target award in recognition of the percentage achievement of corporate goals and their individual performance in 2018. Mr. Day received an award in recognition of the percentage achievement of corporate and business unit goals and his individual performance in 2018.

The amounts paid to each named executive officer are set forth below and also in the Summary Compensation Table below under the column “Non-Equity Incentive Plan Compensation”:

Name
STIP Percentage Award
(% of Target)
STIP Award
($)
Peter D. Aquino
 
107
%
$
540,130
 
James C. Keeley
 
107
%
$
79,189
 
Andrew G. Day(1)
 
88
%
$
109,320
 
Richard P. Diegnan
 
107
%
$
120,326
 
(1) Mr. Day is paid in Canadian dollars. For this table, amounts were converted in US dollars based on the exchange rate of 0.74 on December 31, 2018.

The Compensation Committee and the Board will continue to consider the needs of our Company, particularly as we execute on our turnaround and integration plans, in designing and implementing our cash compensation programs.

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Long-Term Equity Incentive Compensation

We grant long-term equity incentive compensation annually under the 2017 Plan, which our shareholders approved at the 2017 annual meeting of shareholders and amendments at the 2018 annual meeting of shareholders.

Equity Grant Practices. Our Compensation Committee administers our 2017 Plan and approves the amount of and terms applicable to grants and awards to executive officers, other than grants and awards to our Chief Executive Officer, which our full Board approves. In addition to annual grants, the Compensation Committee may approve special grants or awards to executive officers, such as a grant or award to a new hire, or for a promotion.

Our Compensation Committee annually reviews long-term equity incentive levels for all executive officers in light of long-term strategic and performance objectives and each executive officer’s role within our Company and current and anticipated contributions to our future performance. In determining the aggregate value of grants for an individual, the Compensation Committee considers the individual’s level of experience, responsibilities, performance, retention considerations, market trends, relative internal impact of the role and expected future contribution, personal and business unit performance and internal peer equity, as well as the competitive market data provided by CSI. Our CEO provides input to these decisions, except in the case of his own compensation.

It has been the Compensation Committee’s practice to approve annual grants at its regularly-scheduled meetings in March. The Compensation Committee expects to continue this practice in future years and will attempt to schedule regular meetings to accommodate this practice.

Restricted Stock. For 2018, the Compensation Committee designed our long-term equity program to encourage achieving Adjusted EBITDA less CAPEX goals and to promote retention of our executive officers. Each of our named executive officers was granted restricted stock, 50% of which could be earned based on achieving Adjusted EBITDA less CAPEX goals for 2018 and 50% was subject to time vesting. The performance-based restricted stock is earned on an all or nothing basis, i.e., the Adjusted EBITDA less CAPEX target must be met in order for the performance shares to vest.

The performance-based restricted stock was tied to the achievement of Adjusted EBITDA less CAPEX goal for fiscal year 2018, as set forth below:

Criteria
Target
($ in millions)
2018 Actual
Performance
($ in millions)
Achievement
(%)
Adjusted EBITDA less CAPEX (non-GAAP)
$
60
 
$
70
 
 
100
%

The Compensation Committee selected Adjusted EBITDA less CAPEX as the performance metric because it is an important measure of how our business operates and is tied to the increase in the trading price of our common stock. All of the performance-based restricted stock was earned by the named executive officers as the Company met the target for Adjusted EBITDA less CAPEX for fiscal year 2018. The Adjusted EBITDA less CAPEX targets were challenging and supported our overall transformation plan for 2018.

Equity is awarded in shares of our common stock, based on the 90-day rolling average closing price of a share of common stock on the date of grant. Subject to limited exceptions under the 2017 Plan, awards granted under the 2017 Plan are subject to a minimum vesting period of one year from the date the award is made. Restrictions on time-vested restricted stock generally lapse in three equal annual installments beginning on the first anniversary of the grant date. In respect to the performance portion, if the goal is achieved, restrictions on performance based restricted stock lapse in three equal annual installments beginning on the first anniversary of the grant date. Vesting of the shares of restricted stock is conditioned upon continued employment with the Company, and is subject to acceleration upon certain events. In connection with their respective separation from the Company in 2018, Messrs. Dennerlein and Needles forfeited their unvested restricted stock awards.

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Named executive officers received the following equity awards in 2018 under our annual long-term incentive program:

Name
Number of Shares
of Restricted
Stock Granted in
2018
Peter D. Aquino
 
158,076
 
James C. Keeley
 
12,992
 
Andrew G. Day
 
17,498
 
Richard P. Diegnan
 
15,464
 
Robert M. Dennerlein(1)
 
18,900
 
Corey J. Needles(1)
 
17,182
 
(1) In connection with their separation from the Company in 2018, Mr. Dennerlein forfeited 37,176 unvested shares of restricted stock that were granted in 2017 and 2018 and Mr. Needles forfeited 33,796 unvested shares of restricted stock that were granted in 2017 and 2018.

For the grant date fair values of the restricted stock, please see the Summary Compensation Table and the Grants of Plan-Based Awards Table below.

Clawback Policy and Equity Agreements. We have a robust clawback policy that allows us to recover compensation paid to any executive officer whether or not they engaged in fraud or intentional misconduct in the event of a financial statement restatement. In addition, all our equity agreements under the 2017 Plan contain a “clawback” provision that provides us with the ability to impose the forfeiture of equity compensation in the event of any financial restatement or mistake in financial calculations.

Mr. Aquino’s Original Sign-On Awards

As a material inducement to Mr. Aquino entering into employment with the Company, Mr. Aquino received 396,250 restricted shares of the Company’s common stock in 2016.

A portion of the shares of restricted stock are subject to time-based vesting, a portion are subject to performance-based vesting based on the Company achieving specified stock price targets, and a portion are subject to vesting based on both the Company achieving specified performance targets based on the Company’s stock price and time-based vesting following the Company’s achievement of those performance targets. The terms of the awards are summarized below. The closing price performance targets were increased in conformity with the reverse stock split effected in November 2017.

Performance Awards

50,000 restricted shares will be earned and vest when our common stock trades with a closing price of at least $20.00 for five business days.
62,500 restricted shares will be earned and vest when our common stock trades with a closing price of at least $30.00 for five business days.
62,500 restricted shares will be earned and vest when our common stock trades with a closing price of at least $40.00 for five business days.

For each of these awards, the five business days requirement need not be consecutive, and Mr. Aquino must achieve the trading price goal within three years of his date of hire.

Time-Based Awards

25,000 restricted shares will vest on the first anniversary of the date of the award if Mr. Aquino is still employed by us on that date.
25,000 restricted shares will vest on the second anniversary of the date of the award if Mr. Aquino is still employed by us on that date.
25,000 restricted shares will vest on the third anniversary of the date of the award if Mr. Aquino is still employed by us on that date.

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Hybrid Awards

87,500 restricted shares will be earned when our common stock trades with a closing price of at least $20.00 for five business days.
58,750 restricted shares will be earned when our common stock trades with a closing price of at least $30.00 for five business days.

For each of these awards, the five business days requirement need not be consecutive, and Mr. Aquino must achieve the trading price goal within three years of his date of hire. If this target is achieved, then 1/3 of the award will vest annually from the date the target was achieved.

Achievement of Target Price

On October 16, 2017, the 5 day target price of $20.00 was achieved and the performance award of 50,000 restricted shares vested. In addition, the hybrid award of 87,500 was earned due to the achievement of the target price of $20.00 and vests annually, 1/3 of the award on each of October 16, 2018, October 16, 2019 and October 16, 2020. The awards based on the $30.00 or $40.00 stock price targets have not been earned.

Stock Ownership Guidelines

Our executive officers and non-employee directors have been subject to robust stock ownership guidelines since 2010, which help align their interests with those of our shareholders. These individuals are required to beneficially own a number of shares of Company common stock having a value equal to or greater than the following thresholds:

Individual
Multiple
Chief Executive Officer
6.0x base salary
Chief Financial Officer
3.0x base salary
All Other Executive and Senior Vice Presidents
2.0x base salary
Non-Employee Directors
5.0x annual retainer

The guidelines require the listed individuals to retain 100% of the shares granted to them by the Company (net of applicable taxes) until the guidelines are achieved. Unrestricted stock held by the individual, including shares purchased on the open market, shares acquired upon exercise of stock options and shares granted by us that have vested, as well as restricted stock still subject to time-based vesting (which are credited toward the guidelines on a pre-tax basis) are credited toward the satisfaction of the ownership guidelines. Unexercised stock options, whether vested or unvested, are not credited toward the satisfaction of the ownership guidelines.

The Board routinely reviews the stock ownership guidelines and may make adjustments to ensure that the interests of executive officers are aligned with our shareholders.

Perquisites Policy

It is our current policy to not provide perquisites to our executive officers. We have, from time to time, offered certain benefits to the named executive officers in connection with their business travel to our corporate headquarters or our Atlanta-based operations. We provide named executive officers with the same benefits available to all of our salaried employees, including (a) a choice of medical, dental and vision plans; (b) basic and voluntary life insurance; (c) short-term disability, long-term disability and long-term care insurance; and (d) participation in our 401(k) plan, including discretionary Company-matching contributions. The Company does not have a pension plan.

Limitations on the Deductibility of Executive Compensation

Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) limits to $1 million the tax deduction available to public companies for annual compensation that is paid to covered employees (generally, the named executive officers). Historically, compensation payments in excess of $1 million to the Chief Executive Officer and the other three most highly compensated executive officers (other than the Chief Financial Officer) were subject to the Code Section 162(m) limit on deductibility with certain exceptions for qualified “performance-based” compensation. The Tax Cuts and Jobs Act (the “TCJA”) signed into law in December 2017, contained significant changes to Code Section 162(m), including the elimination of the performance-based compensation exception for corporate tax years beginning after December 31, 2017, and an expansion of employees covered by the provision.

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Section 162(m) now covers, in addition to those officers who were previous covered, the Chief Financial Officer and any individual who served as the Chief Financial Officer in the relevant taxable year. In addition, once an individual becomes a covered employee under Code Section 162(m) for any taxable year beginning after December 31, 2016, this status carries forward to all future years, even in the event of the employee’s termination or death. The Compensation Committee expects in the future to authorize compensation in excess of $1,000,000 to our named executive officers that will not be deductible under Code Section 162(m) when it believes doing so is in the best interests of the Company and its shareholders. Because we have available net operating losses, however, we expect the impact of any non-deductibility to be negligible for at least the next several years.

Employment Agreements with the Named Executive Officers

Employment Agreements with Peter D. Aquino

On September 12, 2016, the Company and Mr. Aquino entered into an employment agreement. Under the employment agreement, Mr. Aquino will serve as President and Chief Executive Officer of the Company for the three-year period from September 19, 2016 through September 18, 2019, unless terminated earlier. Mr. Aquino is entitled to an annual base salary of $505,000 and is eligible to receive a target cash bonus in 2017 and beyond of 100% of his base salary. If Mr. Aquino achieves performance goals, he will be able to obtain a maximum potential cash bonus of 200% of base salary, upon the recommendation of the Compensation Committee and the approval of the Board. Pursuant to the employment agreement, Mr. Aquino received a bonus of $585,756 in the first quarter of 2018 for 2017 performance. Mr. Aquino further received a grant of an award of restricted stock with respect to 396,250 shares of common stock of the Company, as mentioned above.

The employment agreement also provides that if Mr. Aquino incurs a qualifying termination other than during a protection period, (which is as defined as a period beginning 120 days prior to a change of control event and ending 24 months after the change of control event), Mr. Aquino shall be entitled to (1) severance payment consisting of Mr. Aquino’s base salary plus annual target bonus amount in equal monthly installments payable over a 12 month period; (2) payment of any earned and unpaid base salary as of termination of his employment; and (3) payment of any earned but unpaid other amounts due as of the termination of his employment.

If Mr. Aquino incurs a qualifying termination during a protection period, (which is as defined as a period beginning 120 days prior to a change of control event and ending 24 months after the change of control event), Mr. Aquino shall be entitled to (1) severance payment consisting of Mr. Aquino’s base salary plus annual target bonus amount multiplied by two (2) in equal monthly installments payable over a 12 month period; (2) payment of any earned and unpaid base salary as of termination of his employment; and (3) payment of any earned but unpaid other amounts due as of the termination of his employment.

Mr. Aquino is entitled to receive the benefits and perquisites we generally provide to our senior executives, including reimbursement for air travel and accommodations for business travel between Northern Virginia and Atlanta.

On March 16, 2018, the Company and Mr. Aquino amended the employment agreement, dated September 12, 2016. The principal changes to the employment agreement consist of the following: (i) at the end of the current term of the employment agreement, which is due to end on September 19, 2019, the term will automatically renew for successive one-year periods unless either party provides advance written notice of non-renewal; and (ii) non-renewal of the employment agreement by the Company is treated as a Qualifying Termination (as defined in the employment agreement) of Mr. Aquino’s employment, which will entitle Mr. Aquino to severance pay and other benefits.

Employment Arrangements with James C. Keeley

Pursuant to the terms of an Offer Letter, dated as of June 8, 2018, by and between the Company and Mr. Keeley, Mr. Keeley will receive (1) an annual base salary of $275,000; (2) an annual cash incentive bonus based upon criteria established by the Company’s Board of Directors at a target level of 50% of earned base salary; (3) a pro-rated annual restricted stock grant at a target level of 100% of base salary, subject to three-year vesting, 50% of which shall be subject to time-based vesting, and 50% of which shall be subject to performance-based vesting as determined by the Company’s Board of Directors; and (4) customary benefits, including paid time off. After completing one year of service, Mr. Keeley will be eligible to receive twelve (12) months of severance pay for a termination without cause and prior to the completion of one year of service six (6) months of severance pay.

On December 13, 2018, the Company appointed Mr. Keeley as EVP, Chief Financial Officer. In connection with his promotion, the Company and Mr. Keeley entered into a letter agreement, dated December 13, 2018, and effective

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January 1, 2019, Mr. Keeley will receive: (i) an annual base salary of $275,000; (ii) an annual cash incentive bonus based upon criteria established by the Company’s Board of Directors at a target level of 60% of earned base salary; (iii) an annual restricted stock grant at a target level of 125% of base salary, subject to three-year vesting, 50% of which shall be subject to time-based vesting, and 50% of which shall be subject to performance-based vesting as determined by the Company’s Board of Directors; (iv) customary benefits, including paid time off; and (v) twelve (12) months of severance pay for a termination without cause, or twelve (12) months severance pay plus target annual cash incentive bonus (as if met 100% of target bonus objectives) without cause in connection with change of control.

The changes from Mr. Keeley’s prior employment letter were an increase in annual cash incentive bonus from 50% to 60%, an increase in annual restricted stock grants target level from 100% to 125%, and twelve (12) months of salary and target bonus paid in connection with change of control.

Employment Arrangements with Andrew G. Day

Pursuant to the terms of an offer letter dated as of March 30, 2017, and by and between the Company’s subsidiary and Mr. Day, Mr. Day will receive (i) an annual base salary of $335,000 CAD (or approximately $250,000, as Mr. Day is paid in Canadian dollars and the US equivalent is based on current exchange rates); (ii) an annual cash incentive bonus based upon criteria established by the Company’s Board or Compensation Committee at a target level of 50% of base salary; (iii) an annual restricted stock grant in a value equal to one times base salary, subject to three-year vesting, 50% of which shall be subject to time-based vesting and 50% of which shall be subject to performance-based vesting as determined by the Company’s Board or Compensation Committee; (iv) upon termination following six (6) months of employment by the Company, severance equal to twelve (12) months of base salary and payment of the costs of benefits as required pursuant to Canada’s Employment Standards Act, 2000; and (v) customary benefits, including paid vacation days.

On December 13, 2018, the Company appointed Mr. Day, as the Company’s EVP, Chief Operating Officer. In connection with his promotion, the Company and Mr. Day entered into a letter agreement, dated December 13, 2018, and effective January 1, 2019, Mr. Day will receive: (i) an annual base salary of $300,000; (ii) an annual cash incentive bonus based upon criteria established by the Company’s Board of Directors at a target level of 60% of earned base salary; (ii) an annual restricted stock grant at a target level of 125% of base salary, subject to three-year vesting, 50% of which shall be subject to time-based vesting, and 50% of which shall be subject to performance-based vesting as determined by the Company’s Board of Directors; (iv) customary benefits, including paid time off; and (v) twelve (12) months of severance pay for a termination without cause, or twelve (12) months severance pay plus target annual cash incentive bonus (as if met 100% of target bonus objectives) without cause in connection with change of control.

The changes from Mr. Day’s prior employment agreement were an increase in salary of $50,000 from $250,000 to $300,000, an increase in annual cash incentive bonus from 50% to 60%, an increase in annual restricted stock grants target level from 100% to 125%, and twelve (12) months of salary and target bonus paid in connection with change of control.

Employment Arrangements with Richard P. Diegnan

Pursuant to the terms of an offer letter dated as of November 7, 2016, by and between the Company and Mr. Diegnan, Mr. Diegnan will receive (i) an annual base salary of $225,000; (ii) an annual cash incentive bonus based upon criteria established by the Company’s Board or Compensation Committee at a target level of 50% of base salary; (iii) potential additional cash bonus up to 75% of base salary, subject to Compensation Committee discretion; (iv) an annual restricted stock grant in a value equal to one times base salary, subject to three-year vesting, 50% of which shall be subject to time-based vesting and 50% of which shall be subject to performance-based vesting as determined by the Company’s Board or Compensation Committee; (v) upon termination following ninety (90) days of employment by the Company, severance equal to twelve (12) months of base salary and payment of the costs of COBRA coverage through the severance period; and (vi) customary benefits, including paid vacation days.

On December 13, 2018, the Company appointed Mr. Diegnan as EVP, General Counsel & Corporate Secretary. In connection with his promotion, the Company and Mr. Diegnan entered into a letter agreement, dated December 13, 2018, and effective January 1, 2019, Mr. Diegnan will receive: (i) an annual base salary of $250,000; (ii) an annual cash incentive bonus based upon criteria established by the Company’s Board of Directors at a target level of 60% of earned base salary; (iii) an annual restricted stock grant at a target level of 125% of base salary, subject to three-year vesting, 50% of which shall be subject to time-based vesting, and 50% of which shall be subject to

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performance-based vesting as determined by the Company’s Board of Directors; (iv) customary benefits, including paid time off; and (v) twelve (12) months of severance pay for a termination without cause, or twelve (12) months severance pay plus target annual cash incentive bonus (as if met 100% of target bonus objectives) without cause in connection with change of control.

The changes from Mr. Diegnan’s prior employment letter were an increase in salary of $25,000 from $225,000 to $250,000, an increase in annual cash incentive bonus from 50% to 60%, an increase in annual restricted stock grants target level from 100% to 125%, and twelve (12) months of salary and target bonus paid in connection with change of control.

Employment Arrangements and Separation Agreement with Robert M. Dennerlein

Pursuant to the terms of an offer letter dated as of October 28, 2016, by and between the Company and Mr. Dennerlein, Mr. Dennerlein will receive (i) an annual base salary of $275,000; (ii) an annual cash incentive bonus based upon criteria established by the Company’s Board or Compensation Committee at a target level of 50% of base salary and a maximum level of 100% of base salary; (iii) an annual restricted stock grant in a value equal to one times base salary, subject to three-year vesting, 50% of which shall be subject to time-based vesting and 50% of which shall be subject to performance-based vesting as determined by the Company’s Board or Compensation Committee; (iv) upon termination following ninety (90) days of employment by the Company, severance equal to twelve (12) months of base salary and payment of the costs of COBRA coverage through the severance period, and (v) customary benefits, including paid vacation days.

In connection with Mr. Dennerlein’s separation, the Company and Mr. Dennerlein entered into a Release Agreement, effective June 11, 2018 whereby, Mr. Dennerlein received: (i) severance pay equal to $275,000 payable over a twelve (12) month period; and (ii) COBRA premiums for twelve (12) months, which are the severance benefits as set forth in his offer letter.

Employment Arrangements and Separation Agreement with Corey J. Needles

Pursuant to the terms of an offer letter dated as of January 3, 2017, and by and between the Company and Mr. Needles, Mr. Needles will receive (i) an annual base salary of $250,000; (ii) an annual cash incentive bonus based upon criteria established by the Company’s Board or Compensation Committee at a target level of 50% of base salary; (iii) an annual restricted stock grant at the discretion of the Compensation Committee, subject to three-year vesting, 50% of which shall be subject to time-based vesting and 50% of which shall be subject to performance-based vesting as determined by the Company’s Board or Compensation Committee; (iv) upon termination following six (6) months of employment by the Company, severance equal to twelve (12) months of base salary; and (v) customary benefits, including paid vacation days.

In connection with Mr. Needles’ departure, on December 31, 2018, the Company and Mr. Needles entered into a Release Agreement, whereby Mr. Needles received a severance pay equal to $250,000 payable over a twelve (12) month period, which is the severance benefit as set forth in his offer letter.

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Potential Payments upon Termination or Change in Control

The tables below illustrate for each of Messrs. Aquino, Keeley, Day, and Diegnan, the amounts that he would receive under the applicable termination scenario as of December 31, 2018. Messrs. Dennerlein and Needles are not included below as their employment ended prior to or on December 31, 2018 and the amounts which each former executive officer is entitled to are set forth above.

Peter D. Aquino

Benefit
Termination
For Cause
($)
Termination
Without Cause
($)
Termination
by reason of
Retirement
($)
Termination
by reason of
Death,
Disability
($)
Termination
following a
Change in
Control
($)
Severance payment
 
 
$
505,000
 
 
 
 
 
$
505,000
 
Bonus
 
 
 
 
 
 
 
 
 
 
Continued benefits
 
 
 
 
 
 
 
 
 
 
Life Insurance Payment
 
 
 
 
 
 
$
505,000
 
 
 
Payment for Outstanding Equity Awards
 
 
 
 
 
 
 
 
$
1,850,871
 
Total
 
 
$
505,000
 
 
 
$
505,000
 
$
2,355,871
 

In addition to the severance payment, Mr. Aquino would be entitled to any Accrued Obligation under Article III “Termination Benefit” under his Employment Agreement, dated September 12, 2016. Accrued Obligations include payment of any earned and unpaid Base Salary as of Termination of Employment, and payment of any earned but unpaid other amounts due as of the Termination of Employment, including but not limited to, any unpaid, earned bonus pursuant to the Company’s short-term incentive plan as well as 401(k) matching dollars earned as of Termination of Employment pursuant to the terms of the 401(k) Savings Plan.

James C. Keeley

Benefit
Termination
For Cause
($)
Termination
Without Cause
($)
Termination
by reason of
Retirement
($)
Termination
by reason of
Death,
Disability
($)
Termination
following a
Change in
Control
($)
Severance payment
 
 
$
275,000
 
 
 
 
 
$
275,000
 
Bonus
 
 
 
 
 
 
 
 
 
 
Continued Benefits
 
 
 
 
 
 
 
 
 
 
Life Insurance Payment
 
 
 
 
 
 
$
275,000
 
 
 
Payment for Outstanding Equity Awards
 
 
 
 
 
 
 
 
$
53,917
 
Total
 
 
$
275,000
 
 
 
$
275,000
 
$
328,917
 

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Andrew G. Day

Benefit
Termination
For Cause
($)
Termination
Without Cause
($)
Termination
by reason of
Retirement
($)
Termination
by reason of
Death,
Disability
($)
Termination
following a
Change in
Control
($)
Severance payment
 
 
$
247,900
 
 
 
$
247,900
 
$
247,900
 
Bonus
 
 
 
 
 
 
 
 
 
 
Continued Benefits
 
 
 
 
 
 
 
 
$
110
 
Life Insurance Payment
 
 
 
 
 
 
 
 
 
 
Payment for Outstanding Equity Awards
 
 
 
 
 
 
 
 
$
139,747
 
Total
 
 
$
247,900
 
 
 
$
247,900
 
$
387,757
 

Mr. Day is paid in Canadian dollars. For this table, amounts were converted in US dollars based on the exchange rate of 0.74 on December 31, 2018.

Richard P. Diegnan

Benefit
Termination
For Cause
($)
Termination
Without Cause
($)
Termination
by reason of
Retirement
($)
Termination
by reason of
Death,
Disability
($)
Termination
following a
Change in
Control
($)
Severance payment
 
 
$
225,000
 
 
 
 
 
$
225,000
 
Bonus
 
 
 
 
 
 
 
 
 
 
Continued Benefits
 
 
$
19,612
 
 
 
 
 
$
19,612
 
Life Insurance Payment