04/14/2021 | Press release | Distributed by Public on 04/14/2021 15:00
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FREQUENTLY ASKED QUESTIONS ABOUT THE ANNUAL MEETING
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| | | | 1 | | |
PROPOSAL 1 - ELECTION OF DIRECTORS
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| | | | 6 | | |
PROPOSAL 2 - RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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| | | | 10 | | |
Fee Disclosure
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| | | | 10 | | |
Pre-Approval Policies and Procedures
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| | | | 11 | | |
PROPOSAL 3 - ADVISORY RESOLUTION TO APPROVE EXECUTIVE
COMPENSATION |
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CORPORATE GOVERNANCE AND BOARD MATTERS
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| | | | 13 | | |
Corporate Governance Profile
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| | | | 13 | | |
Board Committees
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| | | | 13 | | |
Board and Committee Meetings
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| | | | 15 | | |
Risk Management and Oversight Process
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| | | | 16 | | |
Director Selection Process
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| | | | 16 | | |
Code of Business Conduct and Ethics
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| | | | 16 | | |
Hedging and Pledging Policy
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| | | | 17 | | |
Availability of Corporate Governance Materials
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| | | | 17 | | |
Independence of Directors
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| | | | 17 | | |
Board Leadership Structure
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| | | | 17 | | |
Executive Sessions of Non-Management Directors
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| | | | 18 | | |
Communications with the Board
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| | | | 18 | | |
Compensation Committee Interlocks and Insider Participation
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| | | | 18 | | |
Diversity and Inclusion
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| | | | 18 | | |
Legal Proceedings
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| | | | 18 | | |
EXECUTIVE OFFICERS
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| | | | 19 | | |
COMPENSATION OF EXECUTIVE OFFICERS
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| | | | 19 | | |
Compensation Discussion and Analysis
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| | | | 19 | | |
Compensation Committee Report
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| | | | 25 | | |
Summary Compensation Table
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| | | | 26 | | |
Grant of Plan-Based Awards
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Outstanding Equity Awards at Fiscal Year End
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| | | | 27 | | |
Options Exercises and Stock Vested during 2020
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| | | | 27 | | |
Pension Benefits
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| | | | 27 | | |
Nonqualified Deferred Compensation
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| | | | 27 | | |
Potential Payments Upon Termination or Change in Control
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| | | | 27 | | |
Pay Ratio
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| | | | 28 | | |
Equity Compensation Plan Information
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| | | | 28 | | |
2016 Equity Incentive Plan
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| | | | 29 | | |
2014 Director Equity Plan
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| | | | 29 | | |
COMPENSATION OF DIRECTORS
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| | | | 31 | | |
REPORT OF THE AUDIT COMMITTEE
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| | | | 32 | | |
PRINCIPAL STOCKHOLDERS
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| | | | 33 | | |
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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
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| | | | 36 | | |
Ownership of our Manager, Great Ajax FS LLC and Aspen Yo LLC
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| | | | 36 | | |
Management Agreement
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| | | | 36 | | |
Servicing Agreement
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| | | | 37 | | |
Trademark License Agreement
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| | | | 37 | | |
Agreement with Wellington Management
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| | | | 37 | | |
Related Party Transaction Policy
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| | | | 38 | | |
OTHER MATTERS
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| | | | 39 | | |
Delinquent Section 16(a) Reports
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| | | | 39 | | |
Other Matters to Come Before the Annual Meeting
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| | | | 39 | | |
Stockholder Proposals and Nominations for the 2021 Annual Meeting
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| | | | 39 | | |
Householding of Proxy Materials
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| | | | 39 | | |
Name
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Age
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Title
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Director
Since |
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Lawrence Mendelsohn | | |
60
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| | Chairman of the Board of Directors and Chief | | |
2014
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| | | | | | Executive Officer ('CEO'); Manager of our | | | | |
| | | | | | Manager | | | | |
Russell Schaub | | |
57
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| | President and Director; Vice-President and Chief | | |
2015
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| | | | | | Operating Officer of the Servicer | | | | |
Steven L. Begleiter | | |
59
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| | Director | | |
2014
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John C. Condas | | |
60
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| | Director | | |
2015
|
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Paul Friedman | | |
67
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| | Director | | |
2016
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|
Mary Haggerty* | | |
61
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| | Director | | |
2021
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Jonathan Bradford Handley, Jr.
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51
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| | Director | | |
2014
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J. Kirk Ogren, Jr. | | |
61
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| | Director | | |
2014
|
|
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Year Ended
December 31, 2020 |
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Year Ended
December 31, 2019 |
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Audit Fees
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| | | $ | 794,000 | | | | | $ | 745,000 | | |
Audit-Related Fees
|
| | | | - | | | | | | - | | |
Tax Fees
|
| | | | - | | | | | | - | | |
All Other Fees
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| | | | - | | | | | | - | | |
Total
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| | | $ | 794,000 | | | | | $ | 745,000 | | |
Member
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Audit
Committee |
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Compensation
Committee |
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Nominating and
Corporate Governance Committee |
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Investment
Supervisory Committee |
|
Lawrence Mendelsohn
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X (chair)
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Russell Schaub
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| | | | | | | | | | | | |
Steven L. Begleiter
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| | | | | | | | | | | | |
John C. Condas
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| | | | |
X
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X
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X
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Paul Friedman
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X
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X
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X
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Mary Haggerty(1)
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X
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Jonathan Bradford Handley,Jr.(2)
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X (chair)
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J. Kirk Ogren, Jr.
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X
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X (chair)
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X (chair)
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X
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Name
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Age
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Title
|
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Lawrence Mendelsohn | | |
60
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Chairman of the Board and CEO; Manager of our Manager
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|
Russell Schaub | | |
57
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| | President and Director; Vice-President and Chief Operating Officer of the Servicer | |
Mary Doyle | | |
56
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| | CFO; CFO of the Manager and the Servicer | |
Name and principal position
|
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Year
|
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Salary
($) |
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Bonus
($) |
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Stock
awards ($)(1) |
| |
Option
awards ($) |
| |
Non-equity
incentive plan compensation ($) |
| |
Change in
pension value and nonqualified deferred compensation earnings ($) |
| |
All other
compensation ($) |
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Total
($) |
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Lawrence Mendelsohn(2)
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| | | | 2020 | | | | | | ― | | | | | | ― | | | | | | 38,200 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 38,200 | | |
| | | 2019 | | | | | | ― | | | | | | ― | | | | | | 195,160 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 195,160 | | | ||
| | | 2018 | | | | | | ― | | | | | | ― | | | | | | 108,640 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 108,640 | | | ||
Mary Doyle
|
| | | | 2020 | | | | | | 315,000(3) | | | | | | 313,500(3) | | | | | | 76,400 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 704,900 | | |
| | | 2019 | | | | | | 275,208(3) | | | | | | 162,000(3) | | | | | | 97,580 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 534,788 | | | ||
| | | 2018 | | | | | | 250,000(4) | | | | | | 150,000(4) | | | | | | 54,320 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 454,320 | | | ||
Russell Schaub(5)
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| | | | 2020 | | | | | | ― | | | | | | ― | | | | | | 76,400 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 76,400 | | |
| | | 2019 | | | | | | ― | | | | | | ― | | | | | | 97,580 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 97,580 | | | ||
| | | 2018 | | | | | | ― | | | | | | ― | | | | | | 54,320 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 54,320 | | |
Name
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Grant date
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Estimated future payouts
under non-equity incentive plan awards |
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Estimated future payouts
under equity incentive plan awards |
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All other
stock awards: Number of shares of stock or units (#) |
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All other
option awards: Number of securities underlying options (#) |
| |
Exercise
or base price of option awards ($/Sh) |
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Grant date
fair value of stock and option awards |
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Threshold
($) |
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Target
($) |
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Maximum
($) |
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Threshold
(#) |
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Target(1)
(#) |
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Maximum
(#) |
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Lawrence Mendelsohn
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| | | | 8/13/20 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 4,000 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 38,200 | | |
Mary Doyle
|
| | | | 8/13/20 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 8,000 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 76,400 | | |
Russell Schaub
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| | | | 8/13/20 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 8,000 | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 76,400 | | |
Name
|
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Option awards
|
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Stock awards
|
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|
Number of
securities underlying unexercised options (#) exercisable |
| |
Number of
securities underlying unexercised options (#) unexercisable |
| |
Equity incentive
plan awards: number of securities underlying unexercised unearned options (#) |
| |
Option
exercise price ($) |
| |
Option
expiration date |
| |
Number of
shares or units of stock that have not vested (#) |
| |
Market
value of shares or units of stock that have not vested(1) ($) |
| |
Equity
incentive plan awards: number of unearned shares, units or other rights that have not vested (#) |
| |
Equity
incentive plan awards: market or payout value of unearned shares, units or other rights that have not vested(1) ($) |
| |||||||||||||||||||||||||||||
Lawrence Mendelsohn
|
| | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 16,000 | | | | | | 204,520 | | | | | | 16,000 | | | | | | 204,520 | | |
Mary Doyle
|
| | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 14,000 | | | | | | 159,560 | | | | | | 14,000 | | | | | | 159,560 | | |
Russell Schaub
|
| | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | ― | | | | | | 14,000 | | | | | | 159,560 | | | | | | 14,000 | | | | | | 159,560 | | |
Name
|
| |
Option awards
|
| |
Stock awards
|
| ||||||||||||||||||
|
Number of shares
acquired on exercise (#) |
| |
Value realized on
exercise ($) |
| |
Number of shares
acquired on vesting (#) |
| |
Value realized on
vesting(1) ($) |
| ||||||||||||||
Lawrence Mendelsohn
|
| | | | ― | | | | | | ― | | | | | | 13,000 | | | | | | 180,317 | | |
Mary Doyle
|
| | | | ― | | | | | | ― | | | | | | 5,000 | | | | | | 69,233 | | |
Russell Schaub
|
| | | | ― | | | | | | ― | | | | | | 5,000 | | | | | | 69,233 | | |
Plan
|
| |
(a) Number of securities to be
issued upon exercise of outstanding options, warrants and rights |
| |
(b) Weighted-average exercise
price of outstanding options, warrants and rights |
| |
(c) Number of securities
remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) |
| |||||||||
2016 Equity Incentive Plan
|
| | | | ― | | | | | | ― | | | | | | 1,462,109 | | |
2014 Director Equity Plan
|
| | | | ― | | | | | | ― | | | | | | 76,000 | | |
Total
|
| | | | ― | | | | | | ― | | | | | | 1,538,109 | | |
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
Stock Awards
($)(1) |
| |
Total
($) |
| |||||||||
John C. Condas
|
| | | | 60,000 | | | | | | 37,891 | | | | | | 97,891 | | |
Paul Friedman
|
| | | | 60,000 | | | | | | 37,891 | | | | | | 97,891 | | |
Mary Haggerty(2)
|
| | | | - | | | | | | - | | | | | | - | | |
Jonathan Bradford Handley, Jr
|
| | | | 75,000 | | | | | | 37,891 | | | | | | 112,891 | | |
J. Kirk Ogren, Jr
|
| | | | 80,000 | | | | | | 37,891 | | | | | | 117,891 | | |
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Shares Beneficially Owned
|
| |||||||||
| | |
Number
|
| |
Percent
|
| ||||||
Wellington Management Group LLP(1)
|
| | | | 3,939,040 | | | | | | 17.1% | | |
FMR LLC(2)
|
| | | | 3,639,928 | | | | | | 15.8% | | |
BlackRock Inc(3)
|
| | | | 2,066,145 | | | | | | 9.0% | | |
Ithan Creek Master Investors(4)
|
| | | | 1,301,281 | | | | | | 5.7% | | |
Almitas Capital LLC(5)
|
| | | | 1,276,658 | | | | | | 5.6% | | |
Lawrence Mendelsohn(6)(7)(8)(9)(10)(11)(12)(13)
|
| | | | 1,125,732 | | | | | | 4.9% | | |
Aspen Yo LLC(10)(13)
|
| | | | 927,343 | | | | | | 4.0% | | |
Thetis Asset Management LLC(13)
|
| | | | 564,960 | | | | | | 2.5% | | |
Gregory Funding LLC
|
| | | | 284,285 | | | | | | 1.2% | | |
Russell Schaub(12)(14)(15)(16)
|
| | | | 110,240 | | | | | | * | | |
Jonathan Bradford Handley, Jr.(12)(17)
|
| | | | 102,547 | | | | | | * | | |
GAFS
|
| | | | 77,627 | | | | | | * | | |
Mary Doyle(12)
|
| | | | 68,273 | | | | | | * | | |
J. Kirk Ogren, Jr.(12)(18)(19)(20)
|
| | | | 43,005 | | | | | | * | | |
Paul Friedman(12)(21)
|
| | | | 21,244 | | | | | | * | | |
John C. Condas(12)
|
| | | | 20,776 | | | | | | * | | |
Mary Haggerty(22)
|
| | | | 2,000 | | | | | | * | | |
Steven L. Begleiter(23)
|
| | | | - | | | | | | * | | |
Executive officers and directors as a group (9 persons)(24)
|
| | | | 1,493,817 | | | | | | 6.5% | | |
| | |
Shares Beneficially Owned
|
| |||||||||
|
Number
|
| |
Percent
|
| ||||||||
Magnetar Structured Credit Fund LP(1)
|
| | | | 708,400 | | | | | | 30.8% | | |
Flexpoint Special Assets Fund LP(2)
|
| | | | 400,000 | | | | | | 17.3% | | |
Cede & Co (Fast Account)(3)
|
| | | | 340,000 | | | | | | 14.7% | | |
Magnetar Longhorn Fund LP(1)
|
| | | | 327,600 | | | | | | 14.2% | | |
Purpose Credit Alternative Fund - F LLC(1)
|
| | | | 250,000 | | | | | | 10.8% | | |
Magnetar Constellation Fund V LLC(1)
|
| | | | 156,400 | | | | | | 6.8% | | |
Purpose Credit Alternative Fund - T LLC(1)
|
| | | | 125,000 | | | | | | 5.4% | | |
| | |
Shares Beneficially Owned
|
| |||||||||
|
Number
|
| |
Percent
|
| ||||||||
Magnetar Xing He Master Fund LTD(1)
|
| | | | 1,200,000 | | | | | | 41.4% | | |
Magnetar SC Fund LTD(1)
|
| | | | 1,040,000 | | | | | | 36.0% | | |
Magnetar Constellation Master Fund LTD(1)
|
| | | | 425,000 | | | | | | 14.7% | | |
Magnetar Constellation Master Fund V LTD(1)
|
| | | | 227,600 | | | | | | 7.9% | | |