Document



 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
SCHEDULE 14A
 
 
 
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
Filed by the Registrant ☒                 Filed by a Party other than the Registrant ☐
Check the appropriate box:
Preliminary Proxy Statement
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
Definitive Proxy Statement
Definitive Additional Materials
Soliciting Material Pursuant to §240.14a-12
 
 
 
AngioDynamics, Inc.
(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (check the appropriate box):

No fee required

Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11
(1)
Title of each class of securities to which transaction applies:
 
 
 
 
 
 
(2)
Aggregate number of securities to which transaction applies:
 
 
 
 
 
 




(3)
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
 
 
 
 
 

(4)
Proposed maximum aggregate value of transaction:
 
 
 
 
 
 
 
(5)
Total fee paid:
 
 
 
 
 

Fee paid previously with preliminary materials.
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
(1)
Amount Previously paid:
 
 
 
 
 

(2)
Form, Schedule or Registration Statement No.:
 
 
 
 
 

 
(3)
Filing Party:
 
 
 
 
 
 
(4)
Date Filed:
 
 
 
 
 


 
 





http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12435867&doc=3
14 Plaza Drive
Latham, New York 12110
(518) 798-1215
                                            
August 30, 2018
Dear Shareholder:
You are cordially invited to attend the Annual Meeting of Shareholders of AngioDynamics, Inc. to be held on Wednesday, October 10, 2018 at 10:00 a.m., local time, at AngioDynamics’ Corporate Headquarters, 14 Plaza Drive, Latham, New York, 12110.
At this year’s Annual Meeting you will be asked to:
(i)
consider and vote upon a proposal to elect one Class III director, for a term of three years;
(ii)
consider and vote upon a proposal to ratify the appointment of AngioDynamics’ independent registered public accounting firm for the fiscal year ended May 31, 2019;
(iii)
consider and vote upon a “Say-on-Pay” advisory vote on the approval of the compensation of AngioDynamics’ named executive officers;
(iv)
consider and vote upon a proposal to approve the amended AngioDynamics, Inc. 2004 Stock and Incentive Award Plan to, among other things, increase the total number of shares of common stock reserved for issuance under the plan from 7,000,000 to 7,750,000;
(v)
consider and vote upon a proposal to approve the amended AngioDynamics, Inc. Employee Stock Purchase Plan to increase the total number of shares of common stock reserved for issuance under the plan from 2,500,000 to 3,500,000; and
(vi)
transact such other business as may properly come before the Annual Meeting or any adjournment or postponement thereof.
As we did last year, we are pleased to furnish proxy materials to our shareholders over the internet. Instead of mailing printed copies to each shareholder, we are mailing a Notice Regarding Internet Availability which contains instructions on how to access your proxy materials; how each shareholder can receive a paper copy of proxy materials, including this Proxy Statement, our annual report on Form 10-K for the fiscal year ended May 31, 2018 and a form of proxy card; and how to access your proxy card to vote through the internet or by telephone. We believe that this e-proxy process will expedite shareholders’ receipt of proxy materials and lower the costs and reduce the environmental impact of our Annual Meeting.
The Board of Directors unanimously believes that the election of its nominees for directors, the ratification of the appointment of AngioDynamics’ independent registered public accounting firm, the approval (on an advisory basis) of the compensation of its named executive officers, the approval of the AngioDynamics, Inc. 2004 Stock and Incentive Award Plan, as amended, to, among other things, increase the total number of shares of common stock reserved for issuance under the plan from 7,000,000 to 7,750,000 and the approval of the AngioDynamics, Inc. Employee Stock Purchase Plan, as amended, to increase the total number of shares of common stock reserved for issuance under the plan from 2,500,000 to 3,500,000 are in the best interests of AngioDynamics and its shareholders, and, accordingly, recommends a vote “FOR” each proposal.
In addition to the business to be transacted as described above, management will address shareholders with respect to AngioDynamics’ developments over the past year and respond to comments and questions of general interest to shareholders.

Your vote is important and whether or not you plan to attend the Annual Meeting, we encourage you to vote promptly. You may vote your shares via a toll-free telephone number or over the internet. If you requested and received a paper copy of the proxy card by mail, you may sign, date and mail the proxy card in the envelope provided. Instructions regarding all three methods of voting are contained on the proxy card. Voting by proxy will ensure your shares are represented at the Annual








Meeting. As a result of changes in applicable law, banks and brokers can no longer exercise discretionary voting in uncontested elections of directors. If you are not a shareholder of record, please follow the instructions provided by the shareholder of record (your bank or broker) so that your shares are voted at the meeting on all matters.

Sincerely,
         http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12435867&doc=6
James C. Clemmer
Chief Executive Officer




http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12435867&doc=4
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS

August 30, 2018
The 2018 Annual Meeting of Shareholders of AngioDynamics, Inc. will be held at AngioDynamics’ Corporate Headquarters, 14 Plaza Drive, Latham, New York, 12110, on Wednesday, October 10, 2018 at 10:00 a.m., local time, for the following purposes:
1.
to vote upon a proposal to elect one Class III director, for a term of three years;
2.
to ratify the appointment of AngioDynamics’ independent registered public accounting firm for the fiscal year ended May 31, 2019;
3.
to vote upon a “Say-on-Pay” advisory vote on the approval of the compensation of AngioDynamics’ named executive officers;
4.
to vote upon a proposal to approve the amended AngioDynamics. Inc. 2004 Stock and Incentive Award Plan to, among other things, increase the total number of shares of common stock reserved for issuance under the plan from 7,000,000 to 7,750,000;
5.
to vote upon a proposal to approve the as amended AngioDynamics, Inc. Employee Stock Purchase Plan to increase the total number of shares of common stock reserved for issuance under the plan from 2,500,000 to 3,500,000; and
6.
to transact such other business as may properly come before the meeting or any adjournment or postponement thereof.
Only shareholders who held shares at the close of business on Friday, August 24, 2018, are entitled to notice of and to vote at the meeting or any adjournments or postponements thereof.
It is important that your shares be represented and voted at the meeting. You can vote your shares by completing and returning your proxy card or by voting on the internet or by telephone. Please see the instructions below under the heading “How do I vote my shares without attending the meeting?”.
The Annual Meeting for which this notice is given may be adjourned from time to time without further notice other than announcement at the meeting or any adjournment thereof. Any business for which notice is hereby given may be transacted at any such adjourned meeting.

By Order of the Board of Directors,
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Stephen A. Trowbridge, Senior Vice President, General Counsel and Assistant Secretary

Latham, New York



Important Notice Regarding the Availability of Proxy Materials
for the Annual Meeting to be Held on October 10, 2018.
Our Proxy Statement for the 2018 Annual Meeting of Shareholders, the proxy card, and annual report on Form 10-K for our fiscal year ended May 31, 2018 are available on the following website: www.proxyvote.com. To view materials via the internet, please follow the instructions set forth on the Notice Regarding Internet Availability mailed on or about August 30, 2018 to all shareholders of record on August 24, 2018.




TABLE OF CONTENTS
 
 
Page
Proxy Statement
1
 
Introduction
1
 
General Information About the Meeting
1
PROPOSAL I - ELECTION OF DIRECTORS
5
 
Nominees
5
 
Recommendation of the Board of Directors
6
 
Other Directors
7
CORPORATE GOVERNANCE
10
MEETINGS AND BOARD COMMITTEES
12
OWNERSHIP OF SECURITIES
15
 
Equity Compensation Plan Information
16
EXECUTIVE COMPENSATION
17
 
Compensation Discussion and Analysis
17
 
Summary Compensation Table for Fiscal 2018
28
 
Grants of Plan-Based Awards for Fiscal 2018
30
 
Outstanding Equity Awards at Fiscal 2018 Year-End
31
 
Option Exercises and Stock Vested for Fiscal 2018
32
 
Estimates of Potential Payments Upon Termination or Change in Control
33
 
CEO Pay Ratio
34
 
Director Compensation Table
35
PROPOSAL 2 - RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
36
 
Recommendation of the Board of Directors
36
AUDIT MATTERS
37
 
Audit Committee Report
37
 
Principal Accounting Fees and Services
38
 
Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm
38
PROPOSAL 3 - ADVISORY VOTE ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
40
 
Adoption of Proposal 3
40
 
Recommendation of the Board of Directors
40
PROPOSAL 4 - AMENDMENT OF THE ANGIODYNAMICS, INC. 2004 STOCK AND INCENTIVE AWARD PLAN
41
 
Summary Description of the 2004 Plan (as amended)
41
 
Summary of Federal Income Tax Consequences under the 2004 Plan
44
 
Recommendation of the Board of Directors
45
PROPOSAL 5 - AMENDMENT OF THE ANGIODYNAMICS, INC. EMPLOYEE STOCK PURCHASE PLAN
46
 
Summary of the ESPP Plan (as amended)
46
 
Summary of Federal Income Tax Consequences under the ESPP
48
 
Recommendation of the Board of Directors
48
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
49
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
50
ANNUAL REPORT
51
SHAREHOLDER PROPOSALS AND NOMINATIONS
52
OTHER MATTERS
53
APPENDIX A
A-1
APPENDIX B
B-1




ANGIODYNAMICS, INC.
14 Plaza Drive
Latham, New York 12110
 
 
 
PROXY STATEMENT
FOR
ANNUAL MEETING OF SHAREHOLDERS
OF ANGIODYNAMICS, INC.
October 10, 2018
 
 
 
INTRODUCTION
We are furnishing this proxy statement to the shareholders of AngioDynamics, Inc. in connection with the solicitation by our Board of Directors of proxies to be voted at our 2018 Annual Meeting of Shareholders referred to in the attached notice and at any adjournments of that meeting (the “Annual Meeting”). The Annual Meeting will be held at AngioDynamics’ Corporate Headquarters, 14 Plaza Drive, Latham, New York, 12110, on Wednesday, October 10, 2018 at 10:00 a.m., local time, or at any adjournment or postponement thereof. Only shareholders who held shares at the close of business on Friday, August 24, 2018 are entitled to notice of and to vote at the meeting, or at any adjournments or postponements thereof. We expect to mail this proxy statement and the accompanying proxy card or voting instruction form beginning on August 30, 2018 to each shareholder entitled to vote at the Annual Meeting.
When used in this proxy statement, the terms “we,” “us,” “our,” “the Company” and “AngioDynamics” refer to AngioDynamics, Inc. The terms “Board of Directors” and “Board” refer to the Board of Directors of AngioDynamics, Inc. Our principal executive offices are located at 14 Plaza Drive, Latham, New York 12110.
GENERAL INFORMATION ABOUT THE MEETING AND VOTING
What am I voting on?
At the Annual Meeting, we will ask holders of our common stock to consider and vote upon the following items:
1. Election of Directors
The election of one Class III director, namely, Wesley E. Johnson, Jr. If elected, the Class III director will serve until the 2021 Annual Meeting of Shareholders and until his successor is duly elected and qualified.
2. Ratification of Appointment of Independent Registered Public Accounting Firm
Ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending May 31, 2019.
3. Advisory Vote on the Compensation of our Named Executive Officers
A “Say-on-Pay” advisory vote on the approval of the compensation of our named executive officers.
4. The AngioDynamics, Inc. 2004 Stock and Incentive Award Plan, as amended
Approval of the amended AngioDynamics 2004 Stock and Incentive Award Plan to, among other things, increase the total number of shares of common stock reserved for issuance under the plan from 7,000,000 shares to 7,750,000 shares.
5. The AngioDynamics, Inc. Employee Stock Purchase Plan, as amended
Approval of the amended AngioDynamics, Inc. Employee Stock Purchase Plan to increase the total number of shares of common stock reserved for issuance under the plan from 2,500,000 shares to 3,500,000 shares.
How can I receive proxy materials?
Under rules adopted by the U.S. Securities and Exchange Commission (the “SEC”), we are furnishing proxy materials to our shareholders primarily via the internet, instead of mailing printed copies of proxy materials to each shareholder. On or about August 30, 2018, we began mailing to our shareholders a “Notice of Internet Availability of Proxy Materials” (sometimes

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referred to herein as the “Notice”) containing instructions on how to access this proxy statement, the accompanying notice of Annual Meeting and our annual report for the fiscal year ended May 31, 2018 online. If you received the Notice by mail, you will not automatically receive a printed copy of the proxy materials in the mail. Instead, the Notice instructs you on how to access and review all of the important information contained in the proxy materials. The Notice also instructs you on how you may submit your proxy via the internet.
Finally, you can receive a copy of our proxy materials by following the instructions contained in the Notice regarding how you may request to receive your materials electronically or in printed form on a one-time or ongoing basis. Requests for printed copies of the proxy materials can be made through the internet at http://www.proxyvote.com, by telephone at 1-800-579-1639 or by e-mail at sendmaterial@proxyvote.com by sending a blank e-mail with your control number in the subject line.
Who is entitled to vote?
Shareholders of record at the close of business on August 24, 2018, the record date for the Annual Meeting, are entitled to receive this proxy statement and to vote at the meeting and at any adjournment or postponement thereof. As of the close of business on the record date, there were 37,075,275 outstanding shares of our common stock entitled to notice of, and to vote at, the Annual Meeting. Holders of our common stock have one vote per share on each matter to be acted upon. A list of the shareholders of record entitled to vote at the Annual Meeting will be available at the Annual Meeting and for 10 days prior to the Annual Meeting, for any purpose germane to the meeting. Interested parties should contact our general counsel between the hours of 9:00 a.m. and 4:30 p.m. at our principal executive offices at 14 Plaza Drive, Latham, New York 12110.
How do I vote my shares without attending the meeting?
If you are a shareholder of record as of the record date for the Annual Meeting, you may vote by granting a proxy. For shares held in street name, you may vote by submitting voting instructions to your broker or nominee. In most circumstances, you may vote:
By Internet or Telephone-If you have internet or telephone access, you may submit your proxy by following the voting instructions in the Notice of Annual Meeting no later than 11:59 p.m., New York City Time, on October 9, 2018. If you vote by internet or telephone, you need not return your proxy card.
By Mail-If you received a paper copy of this proxy statement, you may vote by mail by signing, dating and mailing your proxy card in the envelope provided. You should sign your name exactly as it appears on the proxy card. If you are signing in a representative capacity (for example, as guardian, executor, trustee, custodian, or attorney or an officer of a corporation), you should indicate your name and title or capacity.
 
How do I vote my shares in person at the meeting?
If you are a shareholder of record and prefer to vote your shares at the meeting, bring the accompanying proxy card (if you received a paper copy of the proxy statement) and proof of identification. You may vote shares held in street name only if you obtain a “legal” proxy from the record holder (bank, broker or other nominee) giving you the right to vote the shares.
Even if you plan to attend the meeting in person, we encourage you to vote in advance by internet, telephone or mail so that your vote will be counted in the event you are unable to attend.
How do I gain admission to the meeting?
If you wish to attend the Annual Meeting and you are a record holder, you must bring valid state or federal identification or a passport to register before entering the meeting. All invited guests will need valid identification in order to enter the meeting. If you hold shares through an intermediary, such as a bank, broker, trustee or other nominee, and you plan to attend the Annual Meeting, you must bring proof of share ownership, such as a recent bank or brokerage firm account statement or a letter from the bank, broker, trustee or other nominee holding your shares, confirming your ownership in order to gain entrance to the meeting.
What does it mean if I receive more than one proxy card or Notice?
If you receive more than one proxy card or Notice, it generally means that you hold shares registered in more than one account. If you received a paper copy of this proxy statement and you vote by mail, you should sign and return each proxy card. Alternatively, if you vote by internet or telephone, you should vote once for each proxy card and/or Notice you receive. If you have received more than one Notice, you should vote once for each Notice that you receive.

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May I change my vote?
Yes. Whether you have voted by mail, internet or telephone, you may change your vote and revoke your proxy, prior to the Annual Meeting, by:

Sending a written statement to that effect to AngioDynamics’ Senior Vice President and General Counsel at Corporate headquarters at 14 Plaza Drive, Latham New York, 12110;
Voting by internet or telephone at a later time;
Submitting a properly signed proxy card with a later date; or
Voting in person at the Annual Meeting and by filing a written notice of termination of the prior appointment of a proxy with AngioDynamics, or by filing a new written appointment of a proxy with AngioDynamics (unless you are a beneficial owner without a legal proxy, as described below).
Please note, however, that if a shareholder’s shares are held of record by a bank, broker, trustee or other nominee and that shareholder wishes to vote at the Annual Meeting, the shareholder must bring to the Annual Meeting a letter or “legal proxy” from the bank, broker, trustee or other nominee, confirming the shareholder’s beneficial ownership of the shares.
What constitutes a quorum?
A majority of the outstanding shares of common stock present in person or by proxy is required to constitute a quorum at the Annual Meeting. For purposes of determining the presence of a quorum for transacting business at the Annual Meeting, abstentions and broker “non-votes” (proxies from banks, brokers or nominees indicating that such persons have not received instructions from the beneficial owner or other persons entitled to vote shares on a particular matter with respect to which the banks, brokers or nominees do not have discretionary power) will be treated as shares that are present.
 
How does the Board recommend that I vote?
The Board of Directors recommends that you vote your shares:
“FOR” the election of the Class III director who has been nominated by the Board of Directors;
“FOR” the ratification of the appointment of Deloitte & Touche LLP as AngioDynamics’ independent registered public accounting firm for the fiscal year ending May 31, 2019;
“FOR” the approval (on an advisory basis) of the compensation of our named executive officers;
“FOR” the approval of the AngioDynamics, Inc. 2004 Stock and Incentive Award Plan, as amended, to, among other things, increase the total number of shares of common stock reserved for issuance under the plan from 7,000,000 to 7,750,000;
“FOR” the approval of the AngioDynamics, Inc. Employee Stock Purchase Plan, as amended, to increase the total number of shares of common stock reserved for issuance under the plan from 2,500,000 to 3,500,000; and
with respect to any other matter that may properly be brought before the Annual Meeting, in accordance with the judgment of the person or persons voting. We do not expect that any matter other than as described in this proxy statement will be brought before the Annual Meeting.
What happens if I do not give specific voting instructions?
Shareholders of Record. If you are a shareholder of record and you indicate when voting over the internet or by telephone that you wish to vote as recommended by the Board, or sign and return a proxy card without giving specific voting instructions, then the persons named as proxies will vote your shares in the manner recommended by the Board of Directors on all matters presented in this proxy statement and as the persons named as proxies may determine in their discretion with respect to any other matters properly presented for a vote at the Annual Meeting.
Street Name Holders. If you hold your shares in “street name” (that is, through a bank, broker, trustee or other nominee) and do not provide specific voting instructions, then, under the rules of The Nasdaq Stock Market, the bank, broker, trustee or other nominee may generally vote on routine matters but cannot vote on non-routine matters. If you do not provide voting instructions on non-routine matters, your shares will not be voted by your bank, broker or other nominee. As a result, your bank, broker, trustee or other nominee may not vote your shares without receipt of a voting instruction form with respect to Proposal 1, Proposal 3, Proposal 4 and Proposal 5 because each proposal is a non-routine matter, but may vote your shares without your instructions with respect to Proposal 2 (ratification of appointment of independent registered public accounting firm) because this matter is considered routine.

3



What is the voting requirement to approve each proposal?
Under Delaware law and AngioDynamics’ Amended and Restated Certificate of Incorporation and By-Laws, if a quorum exists at the meeting, the affirmative vote of a plurality of the votes cast at the meeting is required for the election of directors (Proposal 1). A properly executed proxy marked “withhold authority” with respect to the election of one or more directors will not be voted with respect to the director or directors indicated, although it will be counted for purposes of determining whether there is a quorum. On May 29, 2018, we amended our Corporate Governance Principles to provide that, in the case of an uncontested election of directors, a director nominee who does not receive votes cast "for" his or her election or re-election in excess of 50% of the number of votes cast with respect to such nominee's election or re-election (a "Majority Vote"), shall tender his or her resignation to the Board of Directors, with such resignation expressly stating that it is contingent upon the acceptance of the resignation by the Board of Directors in accordance with our Corporate Governance Principles. If a nominee fails to receive a Majority Vote, the Company's Nomination and Corporate Governance Committee, or another duly authorized committee of the Board of Directors, will consider whether to accept the nominee's resignation and will submit a recommendation for prompt consideration by the Board of Directors. The Board of Directors shall then act on the resignation, taking into account such committee's recommendation, within ninety (90) days following certification of the shareholder vote.
For the ratification of the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending May 31, 2019 (Proposal 2), the affirmative vote of the holders of a majority of the shares represented in person or by proxy and entitled to vote on this item will be required for approval.
For the “Say-on-Pay” advisory vote (Proposal 3), the affirmative vote of the holders of a majority of the shares represented in person or by proxy and entitled to vote on the item will reflect the advice of the shareholders. The approval, on an advisory basis, of the compensation paid to our named executive officers, also known as a “Say on Pay” vote, is an advisory vote mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. This means that while we ask shareholders to approve the compensation paid to our named executive officers, it is not an action that requires shareholder approval, and shareholders are not voting to approve or disapprove the Board’s recommendation with respect to this proposal. The "Say-on-Pay" vote is an advisory vote and is non-binding on the Board, although the Board and the Compensation Committee welcome the input of shareholders on the Company’s compensation policies and will take the advisory vote into account in making determinations concerning executive compensation.
For the approval of the AngioDynamics, Inc. 2004 Stock and Incentive Award Plan, as amended (Proposal 4), and the approval of the AngioDynamics, Inc. Employee Stock Purchase Plan, as amended (Proposal 5), the affirmative vote of a majority of votes cast on this item will be required for approval.
A properly executed proxy marked “Abstain” with respect to any such matter will not be voted, although it will be counted for purposes of determining whether there is a quorum present. Accordingly, an abstention will have the effect of a negative vote on Proposal 2, Proposal 3, Proposal 4, and Proposal 5, but will have no effect on the election of directors or determining whether a Majority Vote has been achieved.
What is a broker non-vote?
If you hold your shares in street name and do not provide voting instructions to your broker, your shares will not be voted on any proposal for which your broker does not have or does not exercise discretionary authority to vote (a “broker non-vote”). Shares constituting broker non-votes are not counted or deemed to be present in person or by proxy for the purpose of voting on a non-routine matter at the Annual Meeting and, therefore, will not be counted for the purpose of determining whether shareholders have approved the election of directors in Proposal 1, the “Say-on-Pay” advisory vote in Proposal 3, the approval of the AngioDynamics, Inc. 2004 Stock and Incentive Award Plan in Proposal 4, or the approval of the AngioDynamics, Inc. Employee Stock Purchase Plan in Proposal 5, because such proposals are considered non-routine matters. If you do not provide voting instructions to your broker, your broker only will have discretion to vote your shares on Proposal 2, because the ratification of the appointment of the independent registered public accounting firm is considered a routine matter. Broker non-votes are counted as present for the purpose of determining whether a quorum is present at the Annual Meeting.
How can I find voting results of the Annual Meeting?
We will announce preliminary voting results at the Annual Meeting and, within four business days following the date of the Annual Meeting, we will file a Current Report on Form 8-K with the SEC indicating final voting results.
Who bears the cost of soliciting proxies?
The cost of solicitation of proxies being solicited on behalf of the Board of Directors will be borne by us. In addition to the use of the mail and the internet, proxy solicitation may be made by telephone, facsimile and personal interview by our officers, directors and employees.

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PROPOSAL 1-ELECTION OF DIRECTORS
Nominees
Our Board of Directors currently consists of nine directors. The Board is classified into three classes, each of which has a staggered three-year term. At the Annual Meeting, our shareholders will be asked to elect one Class III director, namely, Wesley E. Johnson, Jr. If elected, Mr. Johnson will hold office until the Annual Meeting of Shareholders to be held in 2021 and until his successor is duly elected and qualified. The Class I directors and Class II directors will continue in office during the terms indicated below. Unless otherwise specified, all proxies received will be voted in favor of the election of the nominee named below as a director of AngioDynamics. Directors will be elected by a plurality of the votes cast, in person or by proxy, at the Annual Meeting. On May 29, 2018, we amended our Corporate Governance Principles to provide that, in the case of an uncontested election of directors, a director nominee who does not receive a Majority Vote shall tender his or her resignation to the Board of Directors, with such resignation expressly stating that it is contingent upon the acceptance of the resignation by the Board of Directors in accordance with our Corporate Governance Principles. If a nominee fails to receive a Majority Vote, the Company’s Nominating and Corporate Governance Committee, or another duly authorized committee of the Board of Directors, will consider whether to accept the nominee’s resignation and will submit a recommendation for prompt consideration by the Board of Directors. The Board of Directors shall then act on the resignation, taking into account such committee’s recommendation, within ninety (90) days following certification of the shareholder vote.
The current term of Wesley E. Johnson, Jr. expires at the Annual Meeting and when his successor is duly elected and qualified. Mr. Johnson has consented to be named as a nominee and, if elected, to serve as a director. Management has no reason to believe that Mr. Johnson will be unable or unwilling to serve as a director if elected. Should Mr. Johnson not remain a candidate for election at the date of the Annual Meeting, proxies may be voted for substitute nominees selected by the Board of Directors.
The current term of Steven R. LaPorte expires at the Annual Meeting and when his successor is duly elected and qualified. On August 28, 2018, Mr. LaPorte notified the Board that he intends to retire from the Board, effective upon the occurrence of the Annual Meeting, and will not stand for reelection at the Annual Meeting. The Board intends to seek qualified candidates to fill the vacancy created by Mr. LaPorte’s retirement and may fill such vacancy following the Annual Meeting in accordance with Delaware law and our Amended and Restated Certificate of Incorporation and By-laws.
As of August 30, 2018, the following Directors served on the following committees:
 
 
 
 
Committee Memberships
Name
Age
Director Since
Independent
B
AC
CC
NCG
Howard W. Donnelly
57
2004
Y
C
 
 
 
Jeffrey G. Gold
70
1997
Y
M
M
M
 
Kevin J. Gould
64
2010
Y
M
 
M
M
Wesley E. Johnson, Jr.
60
2007
Y
M
M
 
C
Steven R. LaPorte
68
2007
Y
M
 
M
M
Dennis S. Meteny
65
2004
Y
M
C
 
 
Jan Stern Reed
58
2016
Y
M
M
 
M
Eileen O. Auen
55
2016
Y
M
 
C
 
James C. Clemmer
54
2016
N
M
 
 
 
AC
Audit Committee
B
Board of Directors
CC
Compensation Committee
C
Chair
NCGC
Nominating and Corporate Governance Committee
M
Member
Set forth below are the names, principal occupations and director positions on public companies, in each case, for the past five years, ages of the directors and nominee, and information relating to other positions held by them with us and other companies. Additionally, there is a brief discussion of each director’s and nominee’s experience, qualifications, attributes or skills that led to the conclusion that such person should serve as a director. There are no family relationships between or among any of the directors, executive officers and nominees for director.

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Class III Director (Term expiring at the 2018 Annual Meeting):
 
WESLEY E. JOHNSON, JR.
Director since 2007
 
Chief Executive Officer ("CEO") and Director
age 60
 
Admittance Technologies, Inc.
 
 
Since February 2013, Mr. Johnson has been Chief Executive Officer and Director of Admittance Technologies, Inc., a medical device company. Mr. Johnson is also a director of Minimus Spine, Inc., a private medical device company. From 2003 to 2007, Mr. Johnson served as a member of the board of RITA Medical Systems, Inc. and chairman of its Audit Committee. From February 2008 to May 2012, Mr. Johnson served as President, CEO and director of Cardiokinetix, Inc., a developer of medical devices for the treatment of congestive heart failure. From October 2005 to February 2008, Mr. Johnson served as General Manager of Abbott Spine, S.A., a division of Abbott Laboratories. From June 2003 to October 2005, Mr. Johnson served as Division Vice President, Finance for Abbott Spine. From May 1999 to June 2003, he served as Vice President of Operations and Chief Financial Officer for Spinal Concepts. Mr. Johnson holds a B.B.A. in Accounting from Texas A&M University and became a certified public accountant in 1981. Mr. Johnson is chairman of our Nominating and Corporate Governance Committee and a member of our Audit Committee.
 
 
 
 
 
 
 
 
Director Qualifications: Mr. Johnson’s service as CFO for Spinal Concepts, General Manager of Abbott Spine and CEO of Cardiokinetix provides valuable business, leadership and management experience, particularly with respect to the numerous financial, business and strategic issues faced by a diversified medical device company. In addition, Mr. Johnson's experience with PricewaterhouseCoopers and his positions as a public company CFO of Urologix, Inc. and Orthofix, Inc. (formerly American Medical Electronics, Inc.) provides valuable financial and accounting experience for his position on the Audit Committee.
Recommendation of the Board of Directors
The Board of Directors recommends a vote “FOR” the election of the nominee.

6



Other Directors
The following Class I and Class II directors will continue on the Board of Directors for the terms indicated:
Class I Directors (Term expiring at the 2019 Annual Meeting):
 
JEFFREY G. GOLD
Director since 1997
 
Former President and Chief Executive Officer
age 70
 
Myoscience, Inc.
 
 
From March 2014 to January 2016, Mr. Gold was President and CEO of Myoscience, Inc., a privately-held medical device company focusing on Focused Cold TherapyTM for the treatment of peripheral nerve conditions. From January 2012 to March 2014, Mr. Gold was CEO at Velomedix, Inc., a medical device company focused on therapeutic hypothermia for patients experiencing heart attack, stroke or cardiac arrest. Prior to January 2012, Mr. Gold was a Venture Partner for Longitude Capital, a healthcare venture capital fund from January 2007 through December 2011. Mr. Gold was President and CEO of CryoVascular Systems, a peripheral vascular disease device company, from 2001 through its sale to Boston Scientific in 2005. From 1997 to 2000, he was Executive Vice President and Chief Operating Officer of Cardio Thoracic Systems, Inc., a company engaged in the development and introduction of devices for beating-heart coronary bypass surgery. Prior to that, Mr. Gold spent 18 years with Cordis Corporation in a variety of senior management roles including Vice President of Manufacturing and Vice President of Research and Development, and was a co-founder and President of Cordis Endovascular Systems, a subsidiary engaged in the interventional neuroradiology and peripheral vascular businesses. At Cordis, Mr. Gold also had responsibility for its peripheral vascular business. He serves on the board of directors of Corindus Inc. (NYSE: CVRS) and several privately held start-up medical device companies and is a member of the Executive Committee for the Center for Entrepreneurship and Innovation at the University of Florida and is a member of the Commercialization Advisory Board for the Cleveland Clinic. Mr. Gold has a B.S. in Industrial Engineering from Northeastern University in Boston, Massachusetts and an MBA from the University of Florida in Gainesville, Florida. Mr. Gold is a member of our Compensation Committee and our Audit Committee. During the fiscal year ended May 31, 2018, Mr. Gold was a member of our Audit Committee and our Nominating and Corporate Governance Committee.
 
 
 
 
 
 
 
 
Director Qualifications: Mr. Gold provides us with valuable business, leadership and management experience as a result of his tenures at Cordis, CardioThoracic Systems and as President and CEO of CryoVascular Systems. In addition, Mr. Gold’s experience as a Venture Partner for Longitude Capital provides insight into emerging technologies and strategic directions in the healthcare industry. Mr. Gold’s breadth of experience in the healthcare industry, ranging from endovascular devices, coronary bypass surgery and peripheral vascular disease devices, provides our Board with valuable strategic and technical expertise necessary to direct a diverse medical device company.
 
KEVIN J. GOULD
Director since 2010
 
Former Chief Operating Officer
age 64
 
Tyco Healthcare
 
 
From 1991 to 2007, Mr. Gould held various management positions for the Kendall Company, which later became Tyco Healthcare, a division of Tyco International, Ltd., serving as COO of Tyco Healthcare from 2005 to 2007 and as President, North America, from 2000 to 2005. Tyco Healthcare became a public company in 2007 and is now known as Covidien. Mr. Gould served on the Board of Trustees of St. Elizabeth’s Hospital in Brighton, Massachusetts. Mr. Gould holds a B.A. from St. Anselm’s College in Manchester, New Hampshire and an M.B.A. from Anna Maria College in Paxton, Massachusetts. Mr. Gould is member of our Compensation Committee and our Nominating and Corporate Governance Committees. During the fiscal year ended May 31, 2018, Mr. Gould was Chairman of our Compensation Committee.
 
 
 
 
 
 
 
 
Director Qualifications: Mr. Gould’s service as COO and President, North America of Tyco Healthcare provides our Board with valuable business, leadership and management experience, particularly with respect to the numerous operational, financial, business and strategic issues faced by a growing, diversified medical device company.

7



 
DENNIS S. METENY
Director since 2004
 
Director
age 65
 
Blue Water Growth LLC
 
 
Since January 2014, Mr. Meteny has been a director of Blue Water Growth LLC, a global business consulting firm with services including mergers and acquisitions, private capital solutions, product distribution, outsourcing, and a wide variety of business advisory services for its Western and Asian clients. From 2006 to January 2014, Mr. Meteny was President and Chief Executive Officer of Cygnus Manufacturing Company LLC, a privately held manufacturer of medical devices, health and safety components, and high precision transportation, aerospace and industrial products. From 2003 to 2006, Mr. Meteny was an Executive-in-Residence at the Pittsburgh Life Sciences Greenhouse, a strategic economic development initiative of the University of Pittsburgh Health System, Carnegie Mellon University, the University of Pittsburgh, the State of Pennsylvania and local foundations. From 2001 to 2003, he was President and Chief Operating Officer of TissueInformatics, Inc., a privately held company engaged in the medical imaging business. From 2000 to 2001, Mr. Meteny was a business consultant to various technology companies. Prior to that, Mr. Meteny spent 15 years in several executive-level positions, including as President and Chief Executive Officer, from 1994 to 1999, of Respironics, Inc. a cardio-pulmonary medical device company. Mr. Meteny holds a B.S. Degree in Accounting from The Pennsylvania State University and an MBA from the University of Pittsburgh. Mr. Meteny is the Chairman of our Audit Committee.
 
 
 
 
 
 
 
 
Director Qualifications: Mr. Meteny’s service as CFO, COO and CEO of Respironics, COO of TissueInformatics and CEO of Cygnus Manufacturing Company, provides our Board with valuable business, leadership and management experience, including leading a large, diverse healthcare company, giving him a keen understanding of the numerous operational and strategic issues facing a diversified medical device company such as AngioDynamics. In addition, as noted above, Mr. Meteny is the Chairman of our Audit Committee and is designated as a “financial expert” as a result of his extensive financial and accounting background with Ernst & Young and his position as CFO of Respironics.
  
Class II Directors (Term expiring at the 2020 Annual Meeting):
 
EILEEN O. AUEN
Director since 2016
 
Former Executive Chairman
age 55
 
Helios
 
 
Ms. Auen most recently served as Executive Chairman of Helios, a $1 billion healthcare services firm formed by the merger of PMSI and Progressive Medical in 2013. Prior roles include Chairman and Chief Executive Officer of PMSI, Head of Healthcare Management at Aetna, and Chief Executive Officer of APS Healthcare. She currently provides consulting services to the healthcare industry through Deep Run Consulting, a firm she founded. Ms. Auen earned a bachelor’s degree in Economics and Finance from Towson University, and an M.B.A. from the University of Virginia School of Business. Ms. Auen currently serves as the Lead Director for ICF International (NASDAQ:ICFI).  She also serves as a member of the Board of Directors for Medstar Union Memorial Hospital and Tufts Health Plan. Ms. Auen is the Chairperson of our Compensation Committee. During the fiscal year ended May 31, 2018, Ms. Auen was a member of our Compensation Committee.
 
 
 
 
 
 
 
 
Director Qualifications: Ms. Auen’s extensive experience in the health care industry, including at PMSI, Aetna, APS Healthcare and Tufts Health Plan, provides the Company with significant management experience in the areas of finance, accounting, business operations, management, risk oversight, executive decision making and corporate governance. In addition, Ms. Auen's experience in the healthcare payment environment provides reliable perspectives to our board.

8



 
JAMES C. CLEMMER
Director since 2016
 
President and Chief Executive Officer
age 54
 
AngioDynamics, Inc.
 
 
Mr. Clemmer joined AngioDynamics in April 2016 as our President and CEO. Prior to joining AngioDynamics, Mr. Clemmer served as President of the Medical Supplies segment at Covidien plc from September 2006 to January 2015. In this role, Mr. Clemmer directed the strategic and day-to-day operations for global business divisions that collectively manufactured 23 different product categories. In addition, he managed global manufacturing, research and development, operational excellence, business development and all other functions associated with the Medical Supplies business. Prior to his role at Covidien, Mr. Clemmer served as Group President at Kendall Healthcare from July 2004 to September 2006, where he managed the US business across five divisions and built the strategic plan for the Medical Supplies segment before it was spun off from Tyco. Mr. Clemmer served as interim president at the Massachusetts College of Liberal Arts from August 2015 until March 1, 2016. Mr. Clemmer is a graduate of the Massachusetts College of Liberal Arts. Mr. Clemmer is a member of the board of directors of Lantheus Medical Imaging.
 
 
 
 
 
 
 
 
Director Qualifications: Through his position as our CEO and his tenure at Covidien, Mr. Clemmer brings leadership, extensive executive and operational experience, strategic expertise and a deep knowledge of the medical device industry to the Board. Mr. Clemmer’s service as a Director and CEO of AngioDynamics creates a critical link between management and the Board, enabling the board to perform its oversight function with the benefits of management’s perspectives on the business.
 
HOWARD W. DONNELLY
Director since 2004
 
President and CEO
age 57
 
BlueFin Medical, LLC
 
 
Since 2017, Mr. Donnelly has been President and CEO of Bluefin Medical, a spin off of Concert Medical, LLC. BlueFin Medical is a company focused on the regional anesthesia market. From 2005 to March 2018, Mr. Donnelly was President of Concert Medical LLC, a manufacturer of interventional medical devices. Concert Medical was acquired by Theragenics in March 2018. From 2010 to 2016, Mr. Donnelly was President and CEO of HydroCision Inc., a company focused on spine surgery and the pain management market. Mr. Donnelly is currently the HydroCision's Chairman of the Board. From 2002 to 2008, Mr. Donnelly was a director and member of the audit, compensation and nominating and governance committees of Vital Signs, Inc. From 1999 to 2002, he was President of Level 1, Inc., a medical device manufacturer and subsidiary of Smiths Group. From 1990 to 1999, Mr. Donnelly was employed at Pfizer, Inc., with his last position as Vice President, Business Planning and Development for Pfizer’s Medical Technology Group from 1997 to 1999. Mr. Donnelly holds a B.S. and an M.B.A. from Bryant College.
 
 
 
 
 
 
 
 
 
Director Qualifications: Mr. Donnelly brings extensive industry experience as a result of his tenures at Pfizer, Level 1, Concert Medical and HydroCision. Mr. Donnelly provides the Board with valuable business, leadership and management insight, particularly in the areas of manufacturing and business combinations.
 
JAN STERN REED
Director since 2016
 
Former Senior Vice President, General Counsel and Corporate Secretary
age 58
 
Walgreens Boots Alliance, Inc.
 
 
Ms. Reed was most recently Senior Vice President, General Counsel and Corporate Secretary at Walgreens Boots Alliance, Inc., a global pharmacy-led, health and wellbeing enterprise with annual revenues in excess of $115 billion. Prior to this role, Ms. Reed served as Executive Vice President of Human Resources, General Counsel and Corporate Secretary of Solo Cup Company, and Associate General Counsel, Corporate Secretary and Chief Governance Officer at Baxter International Inc. Ms. Reed earned a Bachelor of Arts degree, with honors, in Psychology from the University of Michigan, and a Juris Doctor from Northwestern University School of Law. Ms. Reed also currently serves as a member of the Board of Directors for Stepan Company (NYSE:SCL). Ms. Reed is a member of our Audit Committee and Nominating and Corporate Governance Committee. During the fiscal year ended May 31, 2018, Ms. Reed was a member of our Audit Committee.
 
 
 
 
 
 
 
 
Director Qualifications: Ms. Reed provides the Board of Directors with global executive leadership in legal, corporate governance, risk management, health care regulatory and compliance, manufacturing and strategic business matters as well as extensive experience with acquisitions and employee development.


9



CORPORATE GOVERNANCE
Director Independence
The listing standards of The Nasdaq Stock Market LLC require that a majority of a listed company’s directors qualify as independent. Our Board of Directors has determined that eight of our nine directors and nominees-Mses. Auen and Reed, and Messrs. Donnelly, Gold, Gould, Johnson, LaPorte and Meteny-are independent under the Nasdaq listing standards. Under the Nasdaq listing standards, an “independent director” is a director who is not an officer or employee of AngioDynamics or any subsidiary and who does not have any relationship that the Board of Directors believes would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. Our Board of Directors reviews the relationships that each director has with our Company on an annual basis and only those directors having no direct or indirect material relationship with our Company and who qualify as independent under the Nasdaq listing standards will be considered independent directors of AngioDynamics.
Communications with the Directors
Shareholders may communicate in writing with any particular director, the independent directors as a group, or the entire Board by sending such written communication to our Secretary at our principal executive offices, 14 Plaza Drive, Latham, New York 12110. Copies of written communications received at such address will be provided to the Board or the relevant director or directors unless such communications are determined by our outside counsel to be inappropriate for submission to the intended recipient(s). However, any communication not so delivered will be made available upon request to any director. Examples of shareholder communications that would be considered inappropriate for submission include, without limitation, customer complaints, business solicitations, product promotions, résumés and other forms of job inquiries, junk mail and mass mailings, as well as material that is unduly hostile, threatening, illegal or similarly unsuitable.
Policy on Director Attendance at Annual Meetings
All Board members are encouraged to attend our Annual Meetings of shareholders absent an emergency or other unforeseen circumstance. All of our directors who were currently in office attended our 2017 Annual Meeting of Shareholders.
Compliance Program
Our Board of Directors has adopted a written Code of Business Conduct and Ethics for our Company. Our Code of Business Conduct and Ethics is available at our website located at www.angiodynamics.com under the “Investors-Corporate Governance-Governance Documents-Code of Ethics” caption. All Company officers, employees, and directors are required to comply with our Code of Business Conduct and Ethics. Our Code of Business Conduct and Ethics covers a number of topics, including conflicts of interest, insider trading, fair dealing, equal employment opportunity and harassment, anti-bribery, and confidential information, as well as requiring adherence to all laws, rules, and regulations applicable to our business. Employees are required to bring any violations and suspected violations of the Code of Business Conduct and Ethics to the attention of the Company through management or our legal counsel or by using the Company’s confidential Compliance Hotline. The Company also maintains a Board-approved comprehensive compliance program to ensure our employees comply with applicable laws, rules, regulations, and industry codes when interacting with healthcare professionals.
The Company maintains the Compliance Hotline for the Company employees and third parties to use as a means of raising concerns or seeking advice. The Compliance Hotline is provided by an independent third-party and is available worldwide. Individuals using the Compliance Hotline may choose to remain anonymous and all inquiries are kept confidential to the extent practicable in connection with the investigation. All Compliance Hotline inquiries are forwarded to the Company’s Corporate Compliance Officer and internal auditor for investigation. The Audit Committee is informed of any matters reported to the Company’s Corporate Compliance Officer, whether through the Compliance Hotline, management, or otherwise, involving accounting, internal control, or auditing matters.
Board of Directors Leadership Structure
Howard W. Donnelly is our independent, non-executive Chairman of the Board of Directors, and James C. Clemmer is our Chief Executive Officer. We separate the roles of Chief Executive Officer and Chairman of the Board of Directors in recognition of the differences between the two roles. The Chief Executive Officer is responsible for setting the strategic direction for the Company and the day-to-day leadership and performance of the Company, while the Chairman of the Board of Directors provides guidance to the Chief Executive Officer and sets the agenda for Board meetings and presides over meetings of the Board. We also believe that separation of the positions reinforces the independence of the Board in its oversight of the business and affairs of the Company, and creates an environment that is more conducive to objective evaluation and oversight of management’s performance, increasing management accountability and improving the ability of the Board to monitor whether management’s actions are in the best interests of the Company and its shareholders.

10



Risk Oversight
Our Board of Directors monitors management’s enterprise-wide approach to risk management. The full Board of Directors’ role in discussing and developing our business strategy is a key part of its understanding of the risks the Company faces and what steps management is taking to manage those risks. The Board of Directors regularly assesses management’s appetite for risk and helps guide management in determining what constitutes an appropriate level of risk for the Company.
While the Board of Directors has the ultimate oversight responsibility for the risk management process, various committees of the Board also have responsibility for risk management. In particular, the Audit Committee reviewed management’s enterprise risk assessment, which focused on four primary areas of risk: Strategic; Financial; Operational and Legal/Compliance. In addition, the Audit Committee focuses on financial risks, including internal controls. In setting compensation, the Compensation Committee strives to create incentives that encourage a level of risk-taking behavior consistent with our business strategy.

11



MEETINGS AND BOARD COMMITTEES
Committees of the Board
During our fiscal year ended May 31, 2018, our Board of Directors had three standing committees, the members of which have been elected by the Board: the Audit Committee; the Compensation Committee; and the Nominating and Corporate Governance Committee. Each committee is composed entirely of independent directors and the chairman and members of each committee are appointed annually by the Board. Each committee is authorized to retain its own outside counsel and other advisors as it desires, subject to, for the Nominating and Corporate Governance Committee a $100,000 annual limitation on fees and expenses for such counsel and advisors without the full Board’s prior consent.
Each committee has adopted a written charter, and a brief summary of each committee’s responsibilities follows.
Audit Committee and Audit Committee Financial Expert
The Audit Committee assists our Board of Directors in its oversight of:

the integrity of our financial statements, financial reporting process, system of internal controls over financial reporting, and audit process;
our compliance with, and process for monitoring compliance with, legal and regulatory requirements;
our independent registered public accounting firm’s qualifications and independence; and
the performance of our independent registered public accounting firm.

In addition, our Audit Committee provides an open avenue of communication between the independent registered public accounting firm and the Board.
The authority and responsibilities of the Audit Committee are set forth in detail in its charter, which is available on our website located at www.angiodynamics.com under the “Investors-Corporate Governance-Committee Charters-Audit Committee” caption. The information on our website is not a part of this proxy statement.
During our fiscal year ended May 31, 2018, the members of the Audit Committee were Dennis S. Meteny, Jeffrey G. Gold, Wesley E. Johnson, Jr., and Jan Stern Reed, each of whom has been determined by our Board to be independent under the Nasdaq listing standards. The Board has also determined that each member of the Audit Committee is financially literate in accordance with the Nasdaq listing standards and that Mr. Meteny, who serves as the chair of the Audit Committee, is an “audit committee financial expert,” as defined under SEC rules. The Audit Committee met 8 times during our fiscal year ended May 31, 2018. All of such meetings were attended, either in person or telephonically, by all of the members of the Audit Committee. The Audit Committee did not take any actions by unanimous written consent during the fiscal year ended May 31, 2018.
The report of the Audit Committee begins on page 37 of this proxy statement.
Compensation Committee
The Compensation Committee is responsible for:
developing and evaluating potential candidates for executive positions;
reviewing and recommending to the Board each year the objectives that will be the basis for the payment of the annual incentive compensation to the CEO;
reviewing and recommending to the full board the compensation for the CEO
reviewing our CEO’s performance annually in light of the Compensation Committee’s established goals and objectives;
reviewing and approving the evaluation process, compensation structure and payouts for our other executive officers annually and overseeing the CEO’s decisions concerning the performance and compensation of our other executive officers; and
reviewing and administering our incentive compensation and other stock-based plans and recommending changes in such plans to the Board, as needed.
The authority and responsibilities of the Compensation Committee are set forth in detail in its charter, which is available on our website located at www.angiodynamics.com under the “Investors-Corporate Governance-Committee Charters-Compensation Committee” caption. The information on our website is not a part of this proxy statement. The Compensation Committee has authority under its charter to delegate its responsibilities to a subcommittee of the Committee, but did not do so during our fiscal year ended May 31, 2018.

12




During our fiscal year ended May 31, 2018, the members of the Compensation Committee were Kevin J. Gould, Eileen O. Auen and Steven R. LaPorte, each of whom has been determined by our Board of Directors to be independent under the Nasdaq listing standards. Mr. Gould served as chair of the Compensation Committee. As of July 18, 2018, Ms. Auen is the Chair of our Compensation Committee and Mr. Gold joined the Compensation Committee. The Compensation Committee met 6 times during our fiscal year ended May 31, 2018. All of such meetings were attended, either in person or telephonically, by all of the members of the Compensation Committee. The Compensation Committee took action by written consent on one occasion during the fiscal year ended May 31, 2018.
Compensation Committee Interlocks and Insider Participation
During fiscal 2018, as of the date of this proxy statement, none of the members of the Compensation Committee was or is an officer or employee of the Company, and no executive officer of the Company served or serves on the compensation committee or board of directors of any company that employed or employs any member of the Company’s Compensation Committee or Board of Directors.
Nominating and Corporate Governance Committee
The Nominating and Corporate Governance Committee is responsible for:
assisting the Board in identifying individuals qualified to serve as directors of our Company and on committees of the Board and assessing the background and qualifications of director candidates;
advising the Board with respect to Board composition, procedures and committees;
developing and recommending to the Board a set of corporate governance principles applicable to our Company, including principles for determining the form and amount of director compensation; and
overseeing the evaluation of the Board.
The Nominating and Corporate Governance Committee’s guidelines for selecting nominees to serve on the Board are set forth in its charter and summarized below.
The Nominating and Corporate Governance Committee may apply several criteria in selecting and assessing nominees. At a minimum, the committee will consider:
whether each such nominee has demonstrated, by significant accomplishment in the nominee’s field, an ability to make a meaningful contribution to the Board’s oversight of the business and affairs of our Company; and
the nominee’s reputation for honesty and ethical conduct in the nominee’s personal and professional activities.
Additional factors that the committee shall take into account are set forth in its charter, and include, for example, the relevance of a candidate’s specific experiences, skills, industry background and knowledge to the business and objectives of our Company; a candidate’s potential contribution to the diversity of the Board (including gender, race and ethnicity); a candidate’s personal and professional integrity, character and business judgment; a candidate’s time availability in light of other commitments; any potential conflicts of interest involving a candidate; and any other factors or qualities that the committee believes will enhance the Board’s ability to effectively manage and direct our Company’s affairs and business, including, where applicable, the ability of Board committees to perform their duties or satisfy any independence requirements under the Nasdaq listing standards or otherwise. In identifying director candidates, the committee also considers the composition of the Board as a whole, with the goal of achieving a balance of the above-listed criteria across the entire Board and a mix of management and independent directors, while also filling the need for particular skill sets, such as those required of Audit Committee.
The Nominating and Corporate Governance Committee will identify nominees by first evaluating the current members of our Board of Directors whose terms are expiring and who are willing to continue in service. In doing so, the committee will balance the skills and experience of such current directors, as well as the value of continuity of their service, with that of obtaining new perspectives for the Board.
For new nominees, the committee will identify potential candidates based on input from members of the Board and management and, if the committee deems it appropriate, from one or more third-party search firms. The committee will seek new qualified director candidates from, among other areas, the traditional corporate/business environment, healthcare providers and other professional fields and governmental and regulatory agencies that are relevant to our company’s business and objectives. The committee will seek to include qualified and diverse director candidates, including women and individuals from minority groups, in the pool from which nominees are selected. In this regard, the committee and the board believe that a diverse Board can lead to improved company performance by encouraging new ideas, expanding the knowledge base available

13



to the Board and management and fostering a boardroom environment and culture that promotes new perspectives, innovation and deliberation.
Once a person has been identified by the committee as a potential candidate, the committee will assess, based on publicly available information regarding the person, whether the candidate should be considered further. If the committee determines that the candidate warrants further consideration and the person expresses a willingness to be considered and to serve on the Board, the committee will request information from the candidate, review his or her accomplishments and qualifications and conduct one or more interviews with the candidate. If the candidate appears qualified, committee members may also contact references provided by the candidate or other persons with first-hand knowledge of the candidate’s experience and accomplishments. Additionally, candidates may be requested to meet with some or all of the other members of the Board of Directors. Using the input from these interviews and the other information it has obtained, the committee will determine whether it should recommend that the Board nominate, or elect to fill a vacancy with, a final prospective candidate. The committee’s evaluation process is the same for candidates recommended by shareholders.
The authority and responsibilities of the Nominating and Corporate Governance Committee are set forth in detail in its charter, which is available on our website located at www.angiodynamics.com under the “Investors-Corporate Governance-Committee Charters-Nominating & Corporate Governance Committee” caption. The information on our website is not a part of this proxy statement.
During our fiscal year ended May 31, 2018, the members of the Nominating and Corporate Governance Committee were Jeffrey G. Gold, Wesley E. Johnson, Jr. and Steven R. LaPorte, each of whom has been determined by our Board of Directors to be independent under the Nasdaq listing standards. Mr. Johnson served as the chair the committee. As of July 18, 2018, Ms. Reed and Kevin J. Gould joined the Nomination and Corporate Governance Committee and Mr. Gold rotated off the committee. The Nominating and Corporate Governance Committee met 5 times during the fiscal year ended May 31, 2018. All of such meetings were attended, either in person or telephonically, by all of the members of the Nominating and Corporate Governance Committee. The Nominating and Corporate Governance Committee did not take action by unanimous written consent during the fiscal year ended May 31, 2018.
Recommendations by Shareholders of Director Nominees
Shareholders may recommend individuals to the Nominating and Corporate Governance Committee for consideration as potential director candidates by submitting their names and appropriate background and biographical information to the Nominating and Corporate Governance Committee, c/o AngioDynamics, Inc., 14 Plaza Drive, Latham, New York 12110 at least 90 days but no more than 120 days prior to the anniversary date of the previous year’s Annual Meeting. Assuming that the appropriate information has been timely provided, the committee will consider these candidates in the same manner as it considers other Board candidates it identifies. Our shareholders also have the right to nominate director candidates without any action on the part of the Nominating and Corporate Governance Committee or our Board of Directors by following the advance notice provisions of our by-laws as described under “Nomination of Directors.”
Meetings of the Board and Committees
Our Board of Directors held ten meetings, either in person or by telephone, and took action by unanimous written consent one time during our fiscal year ended May 31, 2018. Each incumbent director attended more than 75% of the meetings of the Board and of each committee of which he or she was a member that were held during the period in which he was a director or committee member.


14



OWNERSHIP OF SECURITIES
The following table sets forth the AngioDynamics common stock beneficially owned by each of our directors, each of our named executive officers, all of our directors and executive officers as a group and each person known by us to beneficially own more than 5% of our common stock as of August 24, 2018. Except as otherwise noted, each individual director or named executive officer had sole voting and investment power with respect to the AngioDynamics common stock. As of August 24, 2018, there were 37,075,275 shares of our common stock outstanding. As of August 24, 2018, no director or executive officer beneficially owned more than 1% of the shares of our outstanding common stock. As of August 24, 2018, AngioDynamics’ current directors and executive officers as a group beneficially own 1.23% of the shares of common stock outstanding.
Name of Beneficial Owner
 
Number of
Shares of
Common Stock
Owned as of
August 24,
2018(a) 
 
% of
Outstanding
Shares 
 
Number
of Shares
Beneficially
Owned, Number
that May be
Acquired
Within 60 Days
of August 24,
2018
 
5% Owners
 
 
 
BlackRock, Inc.
    55 East 52nd Street
    New York, NY 10022
4,730,396 (b)

12.8
%

Dimensional Fund Advisors LP
    Palisades West, Building One
    6300 Bee Cave Road
    Austin, TX, 78746
3,099,116 (c)

8.4
%

The Vanguard Group
    100 Vanguard Boulevard
    Malvern, PA 19355
2,038,599 (d)

5.5
%

Non-Employee Directors
 
 
 
Eileen O. Auen
14,226

*

6,250

Howard W. Donnelly
83,207

*

22,712

Jeffrey G. Gold
88,604

*

29,362

Kevin J. Gould
76,492

*

29,362

Wesley E. Johnson, Jr.
75,565

*

29,362

Steven R. LaPorte
88,350

*

29,362

Dennis S. Meteny
97,718

*

29,362

Jan Stern Reed
14,542

*

6,250

Named Executive Officers
 
 
 
James C. Clemmer
206,421

*

156,729

Michael C. Greiner
59,337

*

55,441

Robert A. Simpson
18,579

*

15,785

David D. Helsel

*


Stephen A. Trowbridge
80,486

*

51,491

All directors and executive officers as a group (18 persons)(e)
1,042,975

2.8
%
584,892

 *
Represents less than one percent of the number of shares outstanding at August 24, 2018.

(a)
Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Under those rules, although not outstanding, shares of common stock subject to options that are exercisable or will become exercisable within 60 days of August 24, 2018 and restricted stock units that will vest within 60 days of August 24, 2018 are deemed to be outstanding and to be beneficially owned by the person holding the securities for the purpose of computing the percentage ownership of the person, but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.
(b)
Share ownership information based upon a Schedule 13G/A filed by BlackRock, Inc. on January 19, 2018. According to the Schedule 13G/A, Blackrock, Inc. has sole voting power with respect to 4,658,683 shares and sole dispositive power with respect to 4,730,396 shares.
(c)
Share ownership information is based upon a Schedule 13G/A filed by Dimensional Fund Advisors LP on February 9, 2018. According to the Schedule 13G/A, Dimensional Fund Advisors serves as investment adviser to four investment

15



companies and serves as investment manager to certain other commingled group trusts and separate accounts (collectively, the “Funds”). In its role as investment adviser, neither Dimensional Fund Advisors nor its subsidiaries possess voting and/or investment power over the securities of the Issuers that are owned by the Funds, and may be deemed to be the beneficial owner of the shares of the Issuer held by the Funds. Dimensional Fund Advisors disclaims beneficial ownership of such securities. To the knowledge of Dimensional Fund Advisors, none of the Funds individually own more than 5% of the outstanding shares of Common Stock. The Funds have sole dispositive power with respect to 3,099,116 shares and have sole voting power with respect to 2,979,625 shares.
(d)
Share ownership information is based upon a Schedule 13G filed by the Vanguard Group on February 8, 2018. According to the Schedule 13G, the Vanguard Group has sole voting power with respect to 41,124 shares, shared voting power with respect to 3,371 shares, sole dispositive power with respect to 1,997,644 shares and shared dispositive power with respect to 40,955 shares. According to the 13G, Vanguard Fiduciary Trust Company ("VFTC"), a wholly-owned subsidiary of The Vanguard Group, Inc., is the beneficial owner of 37,224 shares or .10% of the Common Stock outstanding of the Company as a result of its serving as investment manager of collective trust accounts. According to the 13 G, Vanguard Investments Australia, Ltd. ("VIA"), a wholly-owned subsidiary of The Vanguard Group, Inc., is the beneficial owner of 7,631 shares or .02% of the Common Stock outstanding of the Company as a result of its serving as investment manager of Australian investment offerings.
(e)
Includes all of the persons identified as non-employee directors and named executive officers and Mr. Benjamin Davis, SVP Business Development, Mr. Warren Nighan, SVP RA/QA, Mr. Chad Campbell, SVP and GM-Vascular Access, and Ms. Heather Daniels, SVP Human Resources. Mr. Davis owns 53,731 shares of common stock, including 47,060 shares that may be acquired within 60 days of August 24, 2017. Mr. Nighan owns 17,843 shares of common stock, including 15,486 shares that may be acquired within 60 days of August 24, 2017. Mr. Campbell owns 50,747 shares of common stock, including 45,810 shares that may be acquired within 60 days of August 24, 2017. Ms. Daniels owns 17,127 shares of common stock, including 15,068 shares that may be acquired within 60 days of August 24, 2017.
 
Equity Compensation Plan Information
The following table sets forth information, as of May 31, 2018, with respect to compensation plans under which our equity securities are authorized for issuance.  
 
(a) 
 
(b) 
 
(c) 
 
Plan Category
 
Number of securities to be issued upon exercise of outstanding options, warrants and rights 
 
Weighted-average
exercise price of
outstanding options,
warrants and rights (2) 
 
Number of securities remaining
available for future issuance
under  equity compensation
plans (excluding securities
reflected in column (a)) (3) 
 
Equity compensation plans approved by security holders
2,147,771(1)

$15.86
1,571,428

Equity compensation plans not approved by security holders
475,000(4)

$12.14
None

Total
2,622,771

$15.42
1,571,428

 
(1)
Includes (i) 1,496,413 stock options with a weighted-average exercise price of $15.86, (ii) 449,502 restricted stock units, and (iii) 201,856 performance share awards.
(2)
Because there is no exercise price associated with restricted stock units and performance share awards, such equity awards are not included in the calculation of the weighted-average exercise price shown here.
(3)
Reflects the number of securities remaining available for future issuance under the AngioDynamics, Inc. 2004 Stock and Incentive Award Plan, as amended.
(4)
Includes (i) 200,000 stock options with a weighted-average exercise price of $12.14, (ii) 25,000 restricted stock units, and (iii) 250,000 performance share awards. On April 1, 2016, the Company entered into an employment agreement with James C. Clemmer to secure his service as President and Chief Executive Officer of the Company. As part of his employment agreement, the Company granted Mr. Clemmer 250,000 performance share awards, 200,000 options at an exercise price of $12.14, and 50,000 restricted stock units (25,000 vested prior to May 31, 2018). The awards were granted as an inducement material to Mr. Clemmer’s entering into employment with the Company, within the meaning of Nasdaq Listing Rule 5635.


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EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
Compensation Philosophy and Objectives
AngioDynamics operates in an extremely competitive industry. Our compensation philosophy is designed to:
align our executive officers’ compensation with our business objectives and the interests of our shareholders;
enable us to attract, motivate and retain the level of successful, qualified senior executive leadership talent necessary to achieve our long-term goals; and
reward performance, company growth and advancement of our long-term strategic initiatives.

AngioDynamics generally sets executive compensation targets for cash and equity-based compensation at or near the 50th percentile of companies in a predetermined comparable group through a combination of fixed and variable compensation. Our compensation program supports our “pay for performance” philosophy by targeting fixed compensation (base salary) at or near the 50th percentile of the comparable companies and targeting variable compensation at the 50th percentile with the opportunity to earn above the 50th percentile when warranted by performance.
AngioDynamics views these ranges of compensation targets as a guideline, not a rule, in setting and adjusting our compensation programs. While the Compensation Committee attempts to base compensation decisions on the most recent market data available, it also recognizes the importance of flexibility, and may go above or below the targeted ranges for any individual or for any specific element of compensation. Individual executive compensation may be above or below the stated philosophy based on considerations such as individual performance, experience, history and scope of position, current market conditions and the specific needs of the business at critical points in time.
In addition, our compensation strategy takes into account our financial performance relative to our peer companies including companies that:
exclusively design, develop, manufacture, and market medical devices;
market and sell products primarily through a direct sales force;
are publicly traded on the Nasdaq or NYSE stock exchanges and have at least one published proxy statement;
have revenues, market value, and an employee size of a minimum of approximately 50% of, and up to approximately 200% of our expected revenues, market size and employee count for the next fiscal year; and
are generally profitable.

Within this overall philosophy, the Compensation Committee’s objectives are to:
offer a total compensation package that takes into consideration the compensation practices of similarly situated companies with which we compete for exceptional senior level talent;
provide annual cash incentive awards relative to attaining certain pre-determined financial metrics, along with completion of individual objectives;
align financial incentives with shareholders’ interests through significant equity-based incentives to senior management; and
reward overachievement of goals with programs designed to have significant upside bonus opportunity for participants.
The Compensation Committee
The Compensation Committee is responsible for: (i) assisting the Board in developing and evaluating potential candidates for executive positions; (ii) reviewing and recommending to the Board the corporate goals and objectives with respect to our CEO’s compensation on an annual basis; (iii) reviewing our CEO’s performance annually in light of the committee’s established goals and objectives and recommending to the full board the compensation payable to the CEO; (iv) reviewing and approving the evaluation process, compensation structure and payouts for our other named executive officers annually and overseeing the CEO’s decisions concerning the performance and compensation of our other named executive officers; and (v) reviewing and ensuring our incentive compensation and other stock-based plans are administered consistent with the terms of such plans and recommending changes in such plans to the Board, as needed. The authority and responsibilities of the Compensation Committee are set forth in detail in its charter, which is available on our website located at

17



www.angiodynamics.com under the “Investors-Corporate Governance-Committee Charters-Compensation Committee” caption.
Our Board of Directors has determined that all of the directors who were members of the Compensation Committee during our fiscal year ended May 31, 2018, Messrs. Gould and LaPorte and Ms. Auen are independent under the Nasdaq listing standards. Although the Compensation Committee comprises solely independent directors, it does consider the recommendations, if any, provided by our CEO in determining the appropriate levels of compensation for our named executive officers, other than the CEO.
Named Executive Officers
AngioDynamics’ named executive officers are James C. Clemmer, President and CEO, Michael C. Greiner, Executive Vice President ("EVP") and Chief Financial Officer ("CFO"), David D. Helsel, Senior Vice President ("SVP") of Global Operations and R&D, Robert A. Simpson, SVP and General Manager ("GM") - Peripheral Vascular and Stephen A. Trowbridge, SVP and General Counsel.
Components of Executive Compensation for Fiscal 2018
The three components of the compensation program for named executive officers are base salary, annual cash incentive compensation and long-term equity-based incentive awards in the form of performance share awards, stock options and restricted stock unit awards. The Compensation Committee administers these components with the goal of providing total compensation that is competitive in the marketplace, while recognizing meaningful differences in individual performance and offering the opportunity to earn superior rewards when merited by individual performance. The Compensation Committee’s policy is to establish ranges for base salary, annual cash incentive compensation and equity-based incentives for named executive officer positions, including that of the CEO, with consideration to the averages paid by similarly-situated companies, which include publicly traded companies of similar structure, revenue, and profitability in the life sciences industry.
In determining these ranges, the Compensation Committee reviewed information from a compensation survey conducted on our behalf during our fiscal year ended May 31, 2017 by Steven Hall Partners, an independent consulting company engaged by the Compensation Committee to conduct the survey. The Compensation Committee assessed the independence of Steven Hall Partners and concluded that no conflict of interest exists with respect to the service to the Compensation Committee. The Compensation Committee also approved the list of peers to be used in the analysis. During our fiscal year ended May 31, 2018, the Company analyzed information with respect to the following peer group.
Accuray
DexCom, Inc.
Merit Medical Systems, Inc.
Conmed Corporation
Exactech, Inc.
Natus Medical Incorporated
Cantel Medical Corp.
ICU Medical, Inc.
NxStage Medical, Inc.
Cynosure, Inc.
Masimo Corporation
RTI Surgical, Inc.
 
 
The Spectranetics Corporation
In order to ensure a comprehensive review in preparing the compensation survey, Steven Hall took the following steps:
1)
Compiled information to form the basis of the survey, including analyzing and selecting peer companies, analyzing our historical and current compensation practices and philosophies, and determining the positions to be included in the survey, with the assistance of the Compensation Committee and other key contributors.
2)
Performed a proxy review using peer group data and other industry specific surveys to analyze base salary, total cash compensation, and long-term incentives paid to executives and summarized its findings in the form of a competitive pay analysis.
3)
Presented recommendations for comprehensive executive plan strategy and pay structure for the next fiscal year, including base salary levels, design of the annual bonus program, and amount and allocation of short-term and long-term incentive compensation components.




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The following table depicts the components of target compensation for our CEO and our other named executive officers established by our Compensation Committee for our fiscal year ending May 31, 2018. Each of the components is described in more detail below.
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http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12435867&doc=7
CEO Employment Agreement
On April 1, 2016, AngioDynamics entered into an employment agreement with James C. Clemmer, appointing Mr. Clemmer as President and Chief Executive Officer of the Company, effective April 4, 2016. Mr. Clemmer succeeded Joseph M. DeVivo who had served as President and CEO since September 2011. Pursuant to the employment agreement with Mr. Clemmer, he will serve as the Company’s President and CEO for an initial two-year term, subject to successive one-year extensions unless either party notifies the other in writing not later than March 1 immediately prior to the anniversary of the employment agreement effective date, beginning on March 1, 2018 and each March 1 thereafter. Mr. Clemmer’s employment agreement provides him with an annual base salary ($650,000 in fiscal 2018) and eligibility for an annual bonus with a target level of 100% of his base salary, payable based upon our achievement of pre-determined financial metrics as discussed in further detail below. In addition, pursuant to the agreement, Mr. Clemmer is eligible to receive (i) an executive car allowance of $1,500 per month (less applicable taxes) and (ii) reimbursement for reasonable business expenses incurred during the period of employment subject to the Company’s expense reimbursement policies. During the first year of the initial term of Mr. Clemmer’s employment with the Company, he was eligible for a relocation allowance of $75,000 in the form of reimbursements and payments.  Mr. Clemmer is eligible to participate in the benefit and perquisite plans and programs generally available to senior executives of the Company, including health insurance, life and disability insurance, the Employee Stock Purchase Plan, 401(k) plan and flexible spending plan.
In addition, under his employment agreement, Mr. Clemmer was granted equity awards effective April 4, 2016 in the form of (i) 250,000 performance share awards, (ii) an option to purchase 200,000 shares of common stock, and (iii) 50,000 restricted stock units. The performance share awards have a three-year term with payouts to be made in shares of AngioDynamics common stock at the end of the term ranging between 0 and 200% of the grant amount depending on the Company’s total shareholder return relative to a peer group of companies substantially similar to the peer group previously disclosed in connection with the Company’s prior performance share award programs. The options will vest in four equal

19



installments beginning on the first anniversary of the grant date, have a strike price equal to the closing price of AngioDynamics’ common stock as of April 4, 2016 ($12.14) and expire, if not exercised, on April 4, 2023. The restricted stock units will vest in four equal installments beginning on the first anniversary of the grant date. Each of these three grants was granted to Mr. Clemmer as inducement equity awards in accordance with Nasdaq Listing Rule 5635(c)(4).
Base Salaries
The base salary for each named executive officer is determined at levels considered appropriate for comparable positions at similarly situated companies, while targeting the average 50th percentile for total cash compensation of executives at such similarly situated companies. Adjustments to each individual’s base salary are made based on annual performance reviews with consideration given to the executive’s performance as well as his/her salary compared with the range of those listed in the aforementioned survey and our executives generally. Among the criteria used in the annual performance reviews are the work and supervisory performance of the executive, demonstrated management and leadership skills, performance to specific established personal goals, and the strengths and weaknesses that the executive demonstrates on the job.
Following are the base salary increases for the named executive officers for fiscal 2018 that were effective September 1, 2017 and for our fiscal year 2019 that will be effective September 1, 2018.
Name
 
Fiscal 2017
Base Salary 
 
Fiscal 2018
Base Salary 
 
Percentage
Increase 
 
Fiscal 2019
Base Salary
 
Percentage
Increase 
 
James C. Clemmer
$
625,000

$
650,000

4
%
$
700,000

8
%
Michael C. Greiner
$
370,000

$
410,000

11
%
$
422,000

3
%
David D. Helsel
N/A

$
315,000

N/A

$
341,000

8
%
Robert A. Simpson
$
330,000

$
330,000

%
$
340,000

3
%
Stephen A. Trowbridge
$
314,000

$
327,000

4
%
$
337,000

3
%
Salary increases for all AngioDynamics employees averaged approximately 3% during each of our fiscal years 2018 and 2019. The salary increases for our named executive officers were within the guidelines for our employees. Mr. Clemmer’s salary increase for our Fiscal Year ending May 31, 2019 included a 5% market adjustment, and Mr. Helsel’s salary increase for our Fiscal Year ending May 31, 2019 included a 5% increase in connection with his role expansion to include management of our R&D function.
Annual Cash Incentives
The Compensation Committee believes that a meaningful portion of the annual compensation of each named executive officer should be in the form of annual cash incentive compensation.
For our fiscal year ended May 31, 2018, 100% of the annual cash incentive target was based upon pre-determined financial metrics. For our named executive officers during our fiscal year ended May 31, 2018, the financial metrics target was as follows: 60% based on our achievement of our pre-determined net sales target, 20% based on our achievement of our pre-determined adjusted EPS target and 20% based upon our achievement of our pre-determined free cash flow target. The Compensation Committee uses net sales, adjusted EPS and free cash flow as the targets to measure financial performance because it believes these metrics are highly linked to creating value for shareholders. Additional compensation up to a maximum of 100% of the target incentive payment amounts may be awarded if we overachieve our annual financial targets.
For our fiscal 2018, we achieved 96.44% of our net sales target of $357.0 million, resulting in no payout of the 60% target associated with net sales, 112.12% of our adjusted EPS target of $0.74, resulting in 150% of the target payout of the 20% target associated with adjusted EPS, and 107.16% of our free cash flow target of $36.3 million, resulting in a 110% payout of the 20% target associated with free cash flow. With respect to the payout associated with adjusted EPS, after taking into consideration the impact of tax law changes in 2018 on the Company’s consistently applied and publicly reported adjusted EPS result, the Compensation Committee set the adjusted EPS payout to 120% of the target.

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In fiscal 2018, the target incentive payment amounts and the actual payout amounts, each as a percentage of base salary, for the named executive officers were as follows: 
Name
 
Target as a
Percentage of Base Salary 
 
Actual Payout as a
Percentage of Base Salary 
 
James C. Clemmer
100
%
42
%
Michael C. Greiner
65
%
27
%
David D. Helsel (1)
45
%
19
%
Robert A. Simpson
45
%
19
%
Stephen A. Trowbridge
45
%
19
%
 
(1)
Mr. Helsel joined the Company effective December 18, 2017, his target incentive amount for our fiscal year ended May 31, 2018 was subject to a pro rata adjustment.
Long-Term, Equity-Based Incentive Awards
In 2004, we adopted the AngioDynamics, Inc. 2004 Stock and Incentive Award Plan, as amended, (the "2004 Plan"). The 2004 Plan provides for the grant of incentive awards, including performance share awards, performance unit awards, restricted stock awards and restricted stock unit awards, as well as incentive and non-qualified stock options and stock appreciation rights. The Compensation Committee believes that including equity grants as a significant component of executive compensation aligns our executives’ interest with those of our shareholders. The Compensation Committee has made grants of stock options, restricted stock unit awards and performance share awards and, in the future, expects to offer other awards under the 2004 Plan in order to provide named executive officers with an opportunity to share, along with shareholders, in our long-term performance and to reward these individuals for their contribution to our performance.
Stock option and restricted stock unit grants generally are made to each named executive officer upon his or her joining AngioDynamics and satisfying the requirements for eligibility under the plan, with additional grants in the form of options, restricted stock units and performance share awards being made annually. Stock options granted under the 2004 Plan generally have a four-year vesting schedule. Stock options granted prior to May 1, 2007 or after June 1, 2017 generally expire ten years from the date of grant while stock options granted between May 1, 2007 and May 31, 2017 generally expire seven years from the date of grant. The exercise price of options granted under our plan must be at least 100% of the fair market value of the underlying stock on the date of grant. Restricted stock unit awards typically vest equally over a four-year period and are settled in shares of AngioDynamics' common stock if the employee remains active with the company through the vesting date. Performance share awards are generally made each year, with each grant having a three-year term with payouts to be made in shares of AngioDynamics’ common stock at the end of the term depending on AngioDynamics’ total shareholder return relative to a peer group of companies with similar risk profiles to AngioDynamics. The number of shares of common stock that vest under the performance share award will be in a range of 0% to 200% of the target amount of shares granted to the employee based upon AngioDynamics’ TSR percentile ranking relative to the peer group as follows:
TSR Performance
Percentile Rank
 
Performance Share Awards
as a Percent of Target 
 
75th Percentile or above
200%
50th Percentile
100%
25th Percentile
50%
Below 25th Percentile
0%
If the minimum level of performance (at least the 25th percentile) is achieved for the performance period, the number of shares of common stock vesting under the performance share award will be calculated linearly between each set of data points.

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The peer group for performance share awards made in fiscal 2018 is set forth in the table below.  
Abiomed Inc.
Digirad Corp
Masimo Corporation
Accuray Inc.
Edwards Lifesciences Corporation
Merit Medical Systems, Inc.
AlphaTec Holdings Inc.
Endologix, Inc.
Mine Safety Appliances Company
Articure, Inc.
Haemonetics Corporation
Natus Medical Incorporated
Atrion Corporation
ICU Medical, Inc.
NuVasive, Inc.
Becton, Dickinson & Company
Insulet Corporation
Resmed Inc.
Boston Scientific Corporation
Integra Lifesciences Holdings Corporation
RTI Surgical, Inc.
Cantel Medical Corp.
Intricon Corporation
Stryker Corporation
Conmed Corporation
Intuitive Surgical, Inc.
Teleflex Incorporated
CryoLife, Inc.
Invacare Corporation
Varian Medical Systems, Inc.
Cutera, Inc.
Lakeland Industries Inc.
Zimmer Biomed
Dexcom, Inc.
Lemaitre Vascular, Inc.
 
Except as described below under "Potential Payments Upon Termination or Change in Control," in the event of the named executive officer’s termination of employment, all of his or her unvested options, restricted stock units and performance share awards are generally forfeited in accordance with the provisions of the 2004 Plan and the applicable grant agreement.
The number of stock options, restricted stock units or performance share awards granted to each named executive officer is generally based upon several factors, including: (i) position with AngioDynamics; (ii) base salary; (iii) performance; and (iv) the grants made, on average, by similarly situated companies to executives with similar responsibilities. For our fiscal year ended May 31, 2018, the Compensation Committee set targets of total long term incentive awards at 225% of base salary for the CEO, 100% of base salary for the EVP and CFO and 75% of base salary for the other named executive officers. For our fiscal year ended May 31, 2018, the total long term incentive target comprises 50% of total value from performance share awards, 25% of total value from restricted stock units and 25% of total value from options.
The Compensation Committee and the Board of Directors believe that this annual long term incentive program provides a strong pay for performance orientation while effectively incentivizing management decision making and providing appropriate retention incentives. Performance share award payouts are directly tied to AngioDynamics’ total shareholder return relative to a peer group of companies with similar risk profiles to AngioDynamics. Stock options effectively incentivize management to maximize company performance, as the value of options is directly tied to appreciation in the value of our common stock. Stock options also provide an effective retention mechanism because of the four-year vesting provisions. Restricted stock units are intended to retain key management through vesting periods, with the opportunity for capital accumulation and more predictable long-term incentive value than stock options.
For our fiscal year ended May 31, 2018, based upon the Black-Scholes valuation for our options as of July 26, 2017, the Compensation Committee granted the following options to our named executive officers as follows: 
Executive Officer
Number of Options
James C. Clemmer
77,627

Michael C. Greiner
21,762

David D. Helsel (1)
N/A

Robert A. Simpson
13,137

Stephen A. Trowbridge
13,018


(1)
Mr. Helsel joined the Company on December 18, 2017. The Compensation Committee granted 50,000 options to Mr. Helsel on December 18, 2017.



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For our fiscal year ended May 31, 2018, based upon the closing price for our common stock as of July 26, 2017, the Compensation Committee granted the following restricted stock units for our named executive officers as follows:  
Executive Officer
Number of Restricted Stock Units
James C. Clemmer
22,092

Michael C. Greiner
6,193

David D. Helsel (1)
N/A

Robert A. Simpson
3,739

Stephen A. Trowbridge
3,705


(1)
Mr. Helsel joined the Company on December 18, 2017. The Compensation Committee granted 10,000 restricted stock units to Mr. Helsel on December 18, 2017.
For our fiscal year ended May 31, 2018, based upon the closing price for our common stock as of July 26, 2017, the Compensation Committee granted the following performance share awards for our named executive officers with a target number of performance shares as follows:  
Executive Officer
Target Number of Performance Shares
James C. Clemmer
44,184

Michael C. Greiner
12,387

David D. Helsel (1)
N/A

Robert A. Simpson
7,477

Stephen A. Trowbridge
7,409


(1) Mr. Helsel joined the Company on December 18, 2017. The Compensation Committee granted 10,000 performance share awards to Mr. Helsel on December 18, 2017.

Grants of options and restricted stock units made to our named executive officers in fiscal 2018 are set forth below in the table titled “Grants of Plan-Based Awards for Fiscal 2018.”
Vesting of Fiscal 2015 Performance Share Awards
Mr. Trowbridge’s fiscal 2015 grant of performance share awards, which was eligible to vest on July 25, 2017, was forfeited because the applicable performance goals were not achieved. To be eligible to vest, the Company needed to achieve a threshold TSR ranking for the July 25, 2014 - July 25, 2017 performance period of at least the 25th percentile. Actual achievement was below the 25th percentile.
Stock Ownership Guidelines

To further align the interests of management and shareholders, we maintain stock ownership guidelines for our senior executive officers, including our named executive officers. Our CEO is required to hold an amount of shares with a value equal to three times his or her base salary, while our EVP and CFO and each of our SVPs is required to hold an amount of shares with a value equal to one times his or her base salary. Employees who are hired or promoted to these management positions must acquire the required number of shares within five years. A senior executive that participates in our employee stock purchase plan at the maximum level from such senior executive’s eligibility date may count unvested restricted stock units towards his or her shareholding requirement. A senior executive that holds an amount of shares less than the applicable ownership level must hold 100% of all Net Shares (as defined below) granted by the company to be eligible for future stock option grants or other equity awards. Net Shares are all shares received pursuant to all company equity awards excluding shares sold to cover (i) the exercise price of options and/or (ii) taxes. The Compensation Committee is mindful that each individual’s personal circumstances will affect progress toward the targeted levels of stock ownership. Senior executives who are unable to achieve or maintain the targeted level of ownership within the prescribed time period may consult with the Compensation Committee with respect to a hardship exemption. Each of our named executive officers is currently in compliance with the applicable holding requirements.


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Hedging and Pledging Policy
Our Insider Trading Policy prohibits directors and employees, including named executive officers, from engaging in hedging or monetization transactions, such as zero-cost dollars and forward sale contracts, and from engaging in borrowing against AngioDynamics’ securities held in a margin account, or pledging AngioDynamics’ securities as collateral for a loan (unless the individual can clearly demonstrate the financial capacity to repay the loan without resorting to the pledged securities).
Clawback Policy
If any award (including an annual cash incentive award as well as a long term equity-based incentive award) was granted to an AngioDynamics’ executive and the Compensation Committee (or the Board of Directors) later determines that the financial results of the Company used to determine the amount of that award, or any payment under that award, whether to the executive or to the executive’s beneficiary, are materially restated and that such executive engaged in fraud or intentional misconduct with respect to the inputs to, or determination of, such financial results, the Company will seek repayment or recovery of the award, as the Board of Directors in its sole discretion determines is reasonable and appropriate, notwithstanding any contrary provision of any incentive plan. In addition, the Compensation Committee or the Board of Directors may provide that any executive and/or any award, including any shares subject to or issued under an award, is subject to any other recovery, recoupment, clawback and/or other forfeiture policy maintained by the Company from time to time.
Perquisites
All executives of AngioDynamics are eligible to participate in our Fleet Vehicle Program at the executive level. Executives hired before May 2012 may accept a company vehicle. Executives hired after May 2012 are entitled to an automobile allowance of $1,200 per month ($1,500 in the case of our CEO) and we will cover the employee’s expenses for mileage or gas for company-related business.
Deferred Compensation Program
We do not sponsor or maintain any non-qualified deferred compensation programs for the benefit of any of our named executive officers.
 
Potential Payments upon Termination or Change in Control
Executive Severance Policy
Our named executive officers may be eligible for severance payments and benefits under our AngioDynamics Senior Executive Severance Pay Guidelines.
A senior executive may be eligible to receive severance benefits in the following situations:
The elimination of the executive’s job or position;
The relocation of the executive’s job or position to a location in excess of 60 miles from the current location of employment; or
Divestment of the executive’s business or business unit, unless the acquiring/successor entity offers continuing employment that does not involve a major relocation, as described above.
A senior executive would generally not be eligible for severance benefits in the following situations:
Terminations for performance reasons, including, but not limited to, violating work rules;
Voluntary resignations;
In the event of an asset or stock sale, where the executive continues employment with a successor in interest to AngioDynamics or any of either its or AngioDynamics’ subsidiaries, affiliates or joint ventures; or
A transfer or reassignment of the executive to another location, division, subsidiary, affiliate or joint venture that does not result in relocation as described above.

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In addition, severance under this policy typically will not be available to executives who have agreements with AngioDynamics, its subsidiaries and/or affiliates and joint ventures that provide for payments upon termination of employment, other than those that derive from these guidelines. To be eligible for severance pay the executive must sign a separation agreement acceptable to the Company. During our fiscal year ended May 31, 2018, in general, the following schedule for the payment of cash severance is considered appropriate:  
Service Completed
 
Severance Payment 
 
Less than 3 years of service
1 months' base salary
3-5 years of service
2 months' base salary
6-9 years of service
3 months' base salary
10-12 years of service
4 months' base salary
13+ years of service
6 months' base  salary
The following additional consideration may be appropriate for exempt employee positions described below:
    Vice Presidents: an additional 4 months of base salary; and
    Sr. Vice Presidents: an additional 6 months of base salary.

EVPs and SVPs who report directly to the CEO are entitled to an aggregate severance benefit equal to 12 months of base salary.
In general, the CEO is eligible for a severance benefit equal to 18 months of base salary, unless a different severance benefit is set forth in an effective agreement.
The maximum severance period that will be offered under any circumstances (other than to the CEO) is 12 months.
 Payments are generally made in accordance with the Company’s regular salary payment practices, subject to modification in connection with Section 409A of the Internal Revenue Code, unless a different method is set forth in an effective agreement.
Additional benefits such as outplacement assistance, continued insurance coverage, and/or an agreement not to contest eligibility for unemployment compensation, may also be offered in a separation agreement.
Change-In-Control Arrangements
In August 2013, our Board of Directors authorized us to enter into change in control severance agreements with certain executive officers. Each agreement has a current term that expires on December 31 of each year, and will automatically renew on each immediately following January 1 for an additional one year term (unless the Company has given notice prior to such January 1 that the term will not be extended); provided however, that if a change in control occurs the term will expire no earlier than 12 calendar months after the calendar month in which such change in control occurs. A change of control is generally defined in each agreement as any of the following: (i) a person is or becomes a beneficial owner of more than 50% of our voting securities, (ii) the composition of a majority of our Board changes, (iii) we consummate a merger or consolidation (other than a transaction following which the Company’s voting securities continue to represent (by remaining outstanding or by conversion) at least 60% of the combined voting power of the Company or its successor, or a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person becomes a beneficial owner of more than 50% of our voting securities), or (iv) our shareholders approve a plan of liquidation or sale of substantially all of our assets. Each agreement provides, among other things, that if a change in control occurs during the term of the agreement, and the executive’s employment is terminated either by us or by the executive, other than (a) by us for cause, (b) by reason of death or disability, or (c) by the executive without good reason, such executive will receive a severance payment equal to: (A) 2.5 times his annual base salary for the CEO and 2 times the executive’s annual base salary for the EVP and CFO, SVP and GM, SVP Operations and SVP and General Counsel, (B) unpaid and prorated annual bonus amounts, and (C) earned but unused vacation time. In addition, each agreement provides that in the event that the severance and other benefits provided for in the agreement or otherwise payable to the executive would be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code, the benefits under the agreement will be either (i) delivered in full, or (ii) delivered to a lesser extent which would result in no portion of the benefits being subject to such excise tax, whichever is more beneficial to the executive.
Payment made under each respective agreement is generally made in a lump sum within thirty days following termination subject to delay if required by Section 409A of the Internal Revenue Code.


25



Equity Acceleration under the 2004 Plan
Under the terms of the 2004 Plan and our applicable equity award agreements, grantees may be eligible for accelerated vesting of equity awards upon certain terminations of employment or in connection with a change in control. Outstanding stock options will become fully exercisable upon a change in control (as defined in the 2004 Plan), or upon a termination because of death or disability. Restricted stock units are eligible for prorated vesting upon a termination because of death or disability, and full vesting if a grantee is terminated without cause or resigns for good reason on or after a change in control (as defined in the 2004 Plan) or the Company experiences a terminal transaction in connection with a change in control and the restricted stock units are not assumed or substituted. Performance share awards are eligible for prorated vesting following the end of the applicable performance period upon a termination due to death, disability, or retirement based on actual performance (but based on target performance if a change in control (as defined in the applicable award agreement) follows the termination and occurs during the performance period), and full vesting (at the target level) upon a change in control that occurs during the performance period.
See the table entitled “Estimates of Potential Payments Upon Termination or Change in Control” below for estimates of the severance payments and benefits described above.
Internal Revenue Code Section 162(m) Considerations
Section 162(m) of the Internal Revenue Code generally prohibits a publicly held corporation, such as AngioDynamics, from claiming a deduction on our federal income tax return for compensation in excess of $1 million paid for a given fiscal year to the CEO (or person acting in that capacity), CFO, and to the three most highly compensated officers other than the CEO as of the end of our fiscal year. Effective for taxable years beginning after December 31, 2017, Section 162(m)’s exemption from this deduction limit for “qualifying performance-based” compensation (i.e., compensation paid only if the individual’s performance meets pre-established objective goals based on performance criteria approved by shareholders) has been repealed, such that compensation paid to our covered officers in excess of $1 million will not be deductible unless it qualifies for transition relief applicable to certain arrangements in place as of November 2, 2017.
Prior to the repeal of this exemption, in general, the Compensation Committee structured awards to executive officers under the Company’s incentive programs in a manner to qualify for the exemption. However, the Compensation Committee retained the discretion to award compensation that exceeded the Section 162(m) deductibility limit and did not qualify for the exemption.
Going forward, as in previous years, the potential deductibility of compensation is only one of many considerations that the Compensation Committee will take into account when establishing the compensation paid to our named executive officers, and we believe it is important that the Compensation Committee retain flexibility and authority to grant or adjust compensation as needed to address particular circumstances, or unexpected, unusual or non-recurring events, or to attract and retain key executive talent, even if this results in the payment of compensation that is not deductible (whether by application of Section 162(m), to the extent applicable, or otherwise). Therefore, the Compensation Committee may make payments of compensation that are not deductible if, in its judgment, such payments are advisable to achieve our compensation objectives.
2017 Shareholder Advisory Vote on Executive Compensation
At our 2017 annual meeting, our shareholders approved, on an advisory basis, the compensation paid to our named executive officers, as disclosed under the compensation disclosure rules of the SEC, including the compensation discussion and analysis, the compensation tables and any related materials disclosed in the proxy statement for the 2017 annual meeting. The shareholder vote in favor of our named executive officer compensation totaled approximately 91 percent of all votes cast, including abstentions. The Compensation Committee considered the results of the 2017 vote and views the outcome as evidence of strong shareholder support of our executive compensation decisions and policies. Accordingly, the Compensation Committee did not change its approach to executive compensation in 2018.

Compensation Policies and Practices Relating to Risk Management

Each year, the Compensation Committee reviews our compensation programs applicable to all employees and reviews and approves the compensation program applicable to executives, including the named executive officers. Based on the Compensation Committee’s review of the terms and elements of these programs, as well as our practices and policies, the Compensation Committee determined that the Company’s compensation policies and practices are appropriately designed to provide incentives for our employees without creating an inappropriate risk of excessive risk taking. Among other factors, the Compensation Committee’s compensation philosophy generally discourages excessive risk taking by, among things:


26



targeting base salary at or near the 50th percentile of comparable companies, providing meaningful compensation at a fixed level;
designing total compensation programs to comprise a meaningful amount of long-term incentive compensation;
balancing the composition of the Company’s long-term incentive program to include time based restricted stock units and stock options to go along with relative TSR performance shares;
capping the total payout of short-term cash incentive opportunities; and
adopting a code of ethics and business conduct applicable to all employees and directors.

In addition, the Company’s 2004 Stock and Incentive Award Plan, as amended, includes clawback provisions that provide that any award (including annual cash incentive awards as well as long term equity-based incentive awards) granted to an executive are subject to repayment if the Compensation Committee or the Board of Directors later determines that the financial results of the Company upon which such awards were based are materially restated and such executive engaged in fraud or intentional misconduct in connection with such financial results. See Clawback Policy set forth in this Compensation Discussion and Analysis.

Based on the Compensation Committee’s review, the Company has concluded that the risks arising from its compensation policies and practices for its employees are not reasonably likely to have a material adverse effect on the Company.
Compensation Committee Report on Executive Compensation
The Compensation Committee of the Board of Directors evaluates and makes recommendations to the Board of Directors regarding the compensation of the CEO and approves the compensation of our other named executive officers. The Compensation Committee also administers all executive compensation programs, incentive compensation plans and equity-based plans and all other compensation and benefit programs currently in place. We have reviewed and discussed the foregoing Compensation Discussion and Analysis with management. Based on our review and discussion with management, we have recommended to the Board that the Compensation Discussion and Analysis be included in this proxy statement for filing with the SEC.

Eileen O. Auen(Chairman)
Jeffrey G. Gold
Kevin J. Gould
Steven R. LaPorte


27




Summary Compensation Table for Fiscal 2018
The following table sets forth information concerning the compensation for services, in all capacities for our fiscal year ended May 31, 2018 of (i) our CEO, (ii) our EVP and CFO, and (iii) those persons who were, at the end of fiscal 2018, our three most highly compensated executive officers other than our CEO and CFO. 
Name and Principal
Position
 
Fiscal
Year 
 
Salary
($)
 
Bonus
($) 
 
Stock
Awards
($)(1) 
 
Option
Awards
($)(2) 
 
Non-Equity
Incentive Plan
Compensation
($) 
 
Change in
Pension Value
and
Nonqualified
Deferred
Compensation
Earnings (3)($) 
 
All Other
Compensation
(4) ($) 
 
Total ($) 
 
James C. Clemmer (5)
2018
643,269


1,418,527

366,586

273,000


41,239

2,742,621

President, CEO
2017
625,000


351,559

351,713

490,625


18,962

1,837,859

 
2016
84,135


4,847,000

706,700



2,423

5,640,258

Michael C. Greiner (6)
2018
399,231


397,676

102,769

111,930


31,431

1,043,037

EVP, CFO
2017
280,346

100,000

612,900

452,970

177,600


47,310

1,671,126

David D. Helsel (7)
2018
133,481


410,300

252,110

24,846


6,092

826,829

SVP, Global Operations and R&D
 
 
 
 
 
 
 
 
 
Robert A. Simpson (8)
2018
330,000


240,057

62,038

62,370


124,204

818,669

SVP and GM, Peripheral Vascular
2017
100,269


839,250

243,015

39,600


5,830

1,227,964

Stephen A. Trowbridge
2018
323,342


237,874

61,476

61,751


34,173

718,616

SVP and General Counsel

2017
311,695


213,059

57,213

113,097


23,050

718,114

 
2016
302,275


190,429

68,306

61,810


29,972

652,792


(1)
Stock Awards: The stock awards column represents aggregate grant date fair value of restricted stock unit awards and performance share awards granted in the respective fiscal year as computed in accordance with FASB ASC Topic 718, Compensation - Stock Compensation. Accordingly, the grant date fair value of restricted stock units was determined by multiplying the number of restricted stock units by the closing stock price on the date of grant, while the grant date fair value of performance share awards was determined using a Monte Carlo simulation. The assumptions used in the valuation of stock-based awards are discussed in Note 13 to our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2018. The table below shows the grant date fair value of the performance share awards included in the stock awards column for each year, and the maximum grant date value assuming that the highest level of performance conditions was achieved:
 
 
Performance Shares
Name
 
Grant Date
 
Grant Date Fair Value
 
Maximum Grant Date Value
James C. Clemmer
 
7/26/2017
 
$
1,052,905

 
$
2,105,810

 
 
4/1/2016
 
$
4,240,000

 
$
8,480,000

Michael C. Greiner
 
7/26/2017
 
$
295,182

 
$
590,364

 
 
8/18/2016
 
$
452,200

 
$
904,400

David D. Helsel
 
12/18/2017
 
$
238,300

 
$
476,600

Robert A. Simpson
 
7/26/2017
 
$
178,177

 
$
356,354

 
 
7/27/2016
 
$
678,300

 
$
1,356,600

Stephen A. Trowbridge
 
7/26/2017
 
$
176,556

 
$
353,112

 
 
7/27/2016
 
$
155,873

 
$
311,746

 
 
7/22/2015
 
$
121,797

 
$
243,594



28



(2)
Option Awards: The option awards column represents the aggregate grant date fair value of stock option awards granted in the respective fiscal year as computed in accordance with FASB ASC Topic 718, Compensation - Stock Compensation. The fair value of each stock option award is estimated on the grant date using the Black-Scholes option valuation model. The assumptions used in the valuation of stock-based awards are discussed in Note 13 to our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2018.
(3)
For each of the Named Executive Officers, the amounts reported in Non-Equity Incentive Plan Compensation include the payments under our fiscal 2018 annual cash incentive program, as described above under “Annual Cash Incentives.”
(4)
For each of the Named Executive Officers, the amounts reported in All Other Compensation include amounts we contributed as matching contributions under the 401(k) Plan, car allowance and reimbursement for relocation expenses in connection with commencement of employment and are provided in the table below.
Name
Fiscal Year
401 (k) Match ($)
Car Allowance ($)
Relocation ($)
Total All Other Compensation ($)
James C. Clemmer
2018
23,239

18,000


41,239

 
2017
962

18,000


18,962

 
2016

2,423


2,423

Michael C. Greiner
2018
17,031

14,400


31,431

 
2017

10,911

36,399

47,310

David D. Helsel
2018

6,092


6,092

Robert A. Simpson
2018
6,854

14,400

102,950

124,204

 
2017

4,375

1,455

5,830

Stephen A. Trowbridge
2018
16,506

17,667


34,173

 
2017
15,737

7,313


23,050

 
2016
16,126

13,846


29,972


(5)    Mr. Clemmer joined the Company on April 4, 2016.
(6)    Mr. Greiner joined the Company on August 18, 2016.
(7)     Mr. Helsel joined the Company on December 18, 2017.
(8)     Mr. Simpson joined the Company on February 7, 2017.

(

29




Grants of Plan-Based Awards for Fiscal 2018
The following table provides information with respect to options to purchase shares of Common Stock, restricted stock units and performance awards granted to the named executive officers in fiscal 2018 pursuant to the 2004 Stock and Incentive Award Plan.  
Name
 
Grant
Date(2) 
 
Estimated Future Payouts
Under Non-Equity Incentive
Plan Awards (1) 
 
Estimated Future Payouts
Under Equity Incentive
Plan Awards 
 
All Other
Stock
Awards:
Number of
Shares of
Stock or
Units (#) 
 
All Other
Option
Awards:
Number of
Securities
Under-
lying
Options
(#)(4) 
 
Exercise
or Base
Price of
Option
Awards
($/Sh) 
 
Grant
Date Fair
Market
Value of
Stock
and
Option
Awards(5)
($) 
 
Threshold(3) 
 
Target
($) 
 
Maximum
($) 
 
Threshold
(#) 
 
Target
(#) 
 
Maximum
(#) 
 
James C. Clemmer

81,250

650,000

1,300,000








 
7/26/2017




22,092

44,184

88,368




1,052,905

 
7/26/2017







22,092



365,623

 
7/26/2017








77,627

16.55

366,586

Michael C. Greiner

33,313

266,500

533,000








 
7/26/2017




6,194

12,387

24,774




295,182

 
7/26/2017







6,193



102,494

 
7/26/2017








21,762

16.55

102,769

David D. Helsel

7,395

59,156

118,312








 
12/18/2017




5,000

10,000

20,000




238,300

 
12/18/2017







10,000



172,000

 
12/18/2017








50,000

17.20

252,110

Robert A. Simpson

15,188

148,500

297,000








 
7/26/2017




3,739

7,477

14,954




178,177

 
7/26/2017







3,739



61,880

 
7/26/2017








13,137

16.55

62,038

Stephen A. Trowbridge

18,378

147,026

294,052








 
7/26/2017




3,705

7,409

14,818




176,556

 
7/26/2017







3,705



61,318

 
7/26/2017








13,018

16.55

61,476

 
(1)
The amounts shown under “Estimated Future Payouts under Non-Equity Incentive Plan Awards” represent the threshold, target, and maximum amounts payable under our fiscal 2018 annual cash incentive program, as described above under “Annual Cash Incentives.”
(2)
Grant Date pertains to the fiscal 2018 stock option, restricted stock unit, and performance share awards.
(3)
Threshold represents the minimum amount earned if one of the financial metrics under the plan on which 20% of the bonus is based were achieved at the minimum level needed for any payment.
(4)
In accordance with the terms of the 2004 Plan, these options were granted at 100% of the closing market price on the date of grant, or if such date was not a trading day, the average of the high and low sale prices of our common stock on the most recent prior trading day. These options have a ten-year term. Generally, all options become exercisable as to 25% of the shares on each of the first four anniversary dates of the date of grant.
(5)
Represents grant-date fair value based on FASB ASC 718 for fiscal 2018 equity grants. The assumptions used in the valuation of stock-based awards are discussed in Note 13 to our Audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended May 31, 2018.
 

30



Outstanding Equity Awards at Fiscal 2018 Year-End
The following table summarizes the number of securities underlying outstanding equity awards for the named executive officers on May 31, 2018.  
 
Option Awards (1) 
 
 
Stock Awards(2) 
 
 
 
Number of Securities
Underlying Unexercised
Options (#)

 
 
 
 
 
Shares or Units of
Stock That Have
Not Vested

 
 
Equity Incentive Plan
Awards: Number of
Unearned Shares,
Units or Other Rights
That Have Not Vested

 
Name
 
Option Grant Date

Exercisable 
 

Unexercisable 
 
Option
Exercise
Price
($) 
 
Option
Expiration
Date 
 
 
Grant Date
Number  (#)(3) 
 
Market Value ($) 
 
Grant Date
Number  (#)(4) 
 
Market or Payout Value ($) 
 
James C. Clemmer
4/4/16
100,000

100,000

12.14

4/4/23
 
4/4/16
25,000

303,500

4/1/16
250,000

4,240,000

7/27/16
18,661

55,981

16.59

7/27/23
 
7/27/16
15,894

263,681

7/26/17
44,184

1,052,905

7/26/17

77,627

16.55

7/26/27
 
7/26/17
22,092

365,623

 
 
 
Michael C. Greiner
8/18/16
25,000

75,000

16.07

8/18/23
 
8/18/16
7,500

120,525

8/18/16
20,000

452,200

7/26/17

21,762

16.55

7/26/27
 
7/26/17
6,193

102,494

7/26/17
12,387

295,182

David D. Helsel
12/18/17

50,000

17.20

12/18/27
 
12/18/17
10,000

169,600

12/18/17
10,000

238,300

Robert A. Simpson
1/31/17
12,500

37,500

16.10

1/31/24
 
1/31/17
7,500

120,750

1/31/17
30,000

678,300

7/26/17

13,137

16.55

7/26/27
 
7/26/17
3,739

61,880

7/26/17
7,477

178,177

Stephen A. Trowbridge
8/6/13
17,470


11.92

8/6/20
 
7/25/14
1,184

16,659

7/22/15
5,737

121,797

7/25/14
10,219

3,406

14.07

7/25/21
 
4/24/15
3,750

64,125

7/27/16
6,894

155,873

7/22/15
7,380

7,378

15.95

7/22/22
 
7/22/15
2,152

34,324

7/26/17
7,409

176,556

7/27/16
3,036

9,106

16.59

7/27/23
 
7/27/16
2,586

42,902

 
 
 
7/26/17

13,018

16.55

7/26/27
 
7/26/17
3,705

61,318

 
 
 
 
(1)
Stock options vest 25% on each of the first four anniversaries following the grant date.
(2)
The value of restricted stock units and performance share awards is determined using the closing price of our common stock on May 31, 2018 ($21.03).
(3)
Restricted stock units vest 25% on each of the first four anniversaries following the grant date.
(4)
Performance share awards vest on the three-year anniversary of the grant date, subject to achievement of performance metrics. The performance share awards in this table reflect the target amount of shares that were granted.
 

31




Option Exercises and Stock Vested for Fiscal 2018
The following table summarizes the stock option exercises and shares vested by the named executive officers during our fiscal year ended May 31, 2018.  

 
Option Awards 
 
Stock Awards 
 
Name
 
Number of Shares
Acquired on Exercise
(#) 
 
Value Realized
on Exercise
($) 
 
Number of Shares
Acquired on Vesting
(#) 
 
Value Realized
on Vesting
($) 
 
James C. Clemmer


17,797

323,534

Michael C. Greiner


2,500

42,750

David D. Helsel




Robert A. Simpson


2,500

43,525

Stephen A. Trowbridge


8,212

148,740


























32



Estimates of Potential Payments Upon Termination or Change in Control
The following discussion estimates the potential payments to Messrs. Clemmer, Greiner, Simpson, Helsel and Trowbridge under existing agreements, plans or other arrangements, for various scenarios involving a change in control or termination of employment as described above under “Potential Payments Upon Termination or Change in Control,” in each case assuming the termination date was May 31, 2018, and where applicable, using the closing market price of our common stock of $21.03 per share on that date (as reported on Nasdaq).
Name
Severance Amount
Prorated Bonus
Accelerated Vesting of Stock Options (1)
Restricted Stock Unit and Performance Share Vesting (2)
Total (3)
James C. Clemmer
 
 
 
 

   Termination without Cause
$
975,000

$

$

$

$
975,000

   Death
$

$

$
1,485,324

$
534,770

$
2,020,094

   Disability
$

$

$
1,485,324

$
534,770

$
2,020,094

   Retirement
$

$

$

$

$

   Change in Control (No Termination)
$

$

$

$

$

   Change in Control + Qualified Termination
$
1,650,000

$
273,000

$
1,485,324

$
7,511,285

$
10,919,609

Michael C. Greiner
 
 
 
 

   Termination without Cause
$
410,000

$

$

$

$
410,000

   Death
$

$

$
469,494

$
96,138

$
565,632

   Disability
$

$

$
469,494

$
96,138

$
565,632

   Retirement
$

$

$

$

$

   Change in Control (No Termination)
$

$

$

$

$

   Change in Control + Qualified Termination
$
820,000

$
111,930

$
469,494

$
969,062

$
2,370,486

David D. Helsel
 
 
 
 

   Termination without Cause
$
315,000

$

$

$

$
315,000

   Death
$

$

$
191,500

$
21,906

$
213,406

   Disability
$

$

$
191,500

$
21,906

$
213,406

   Retirement
$

$

$

$

$

   Change in Control (No Termination)
$

$

$

$

$

   Change in Control + Qualified Termination
$
630,000

$
24,846

$
191,500

$
420,600

$
1,266,946

Robert A. Simpson
 
 
 
 

   Termination without Cause
$
330,000

$

$

$

$
330,000

   Death
$

$

$
243,729

$
68,956

$
312,685

   Disability
$

$

$
243,729

$
68,956

$
312,685

   Retirement
$

$

$

$

$

   Change in Control (No Termination)
$

$

$

$

$

   Change in Control + Qualified Termination
$
660,000

$
62,370

$
243,729

$
1,024,498

$
1,990,597

Stephen A. Trowbridge
 
 
 
 

   Termination without Cause
$
327,000

$

$

$

$
327,000

   Death
$

$

$
159,937

$
157,872

$
317,809

   Disability
$

$

$
159,937

$
157,872

$
317,809

   Retirement
$

$

$

$

$

   Change in Control (No Termination)
$

$

$

$

$

   Change in Control + Qualified Termination
$
654,000

$
61,751

$
159,937

$
702,760

$
1,578,448

(1)
Amounts in the “Accelerated Vesting of Stock Options” column represent the value of the number of each named executive officer’s in-the-money stock option awards that would have been eligible for accelerated or continued vesting upon a termination and/or change in control occurring on May 31, 2018, calculated by multiplying the number of shares underlying such in-the-money unvested stock options held by each named executive officer by the difference between that option’s exercise price and $21.03 (the closing price of our common stock on May 31, 2018, as reported on Nasdaq).

33



See the discussion above under “Potential Payments Upon Termination or Change in Control-Equity Acceleration under the 2004 Plan” for a description of the applicable vesting provisions.
(2)
Amounts in the “Restricted Stock Unit and Performance Share Vesting” column represent the value of the number of each named executive officer’s restricted stock units and performance share awards that would have been eligible for accelerated or continued vesting upon a termination and/or change in control occurring on May 31, 2018, calculated by multiplying the number of such restricted stock units and target number of performance share awards by $21.03 (the closing price of our common stock on May 31, 2018, as reported on Nasdaq), with proration in the applicable circumstances. See the discussion above under “Potential Payments Upon Termination or Change in Control-Equity Acceleration under the 2004 Plan” for a description of the applicable vesting provisions.
(3)
The totals shown here do not take into account the application of any “best-after-tax” cutback that may apply if an executive’s payments would otherwise be subject to the excise tax imposed by Section 4999 of the Internal Revenue Code.
Employees, including named executive officers, are not generally entitled to any benefits upon termination for cause. All unvested stock options, restricted stock units, and performance share awards, as well as all vested but unexercised stock options are forfeited as of the date of termination for cause.
CEO Pay Ratio
The following information about the relationship of the annual total compensation of our employees and the annual total compensation of for the CEO Jim Clemmer, for the fiscal year ended May 31, 2018 is set forth below as required by Section 953(b) of Dodd-Frank and the applicable rules of the SEC.
the median of the annual total compensation of all AngioDynamics’ employees (other than Mr. Clemmer) was $41,995; and
the annual total compensation of Mr. Clemmer as reported in the “Total” column of the Summary Compensation Table in this Proxy Statement was $2,742,621.
Based on this information, the ratio of Mr. Clemmer’s annual total compensation for the fiscal year ended May 31, 2018 to the median of the annual total compensation of all AngioDynamics’ employees is 65 to 1. The company believes this ratio is a reasonable estimate based on AngioDynamics’ specific employee demographics and compensation and was calculated in accordance with applicable rules of the SEC. The pay ratio reported by other companies may not be comparable to the pay ratio reported by us, as other companies may have different employment and compensation practices and may utilize different methodologies, exclusions, estimates and assumptions in calculating their pay ratios.
In calculating our 2018 CEO pay ratio, we calculated the annual total compensation (annual taxable compensation) for all employees of the company (other than the CEO) for the fiscal year ended May 31, 2018. We believe that annual total compensation is a consistently applied compensation measure and appropriate for determining the median-paid employee. We annualized the compensation of all employees who were hired during our fiscal year ended May 31, 2018 but did not work for AngioDynamics for the entire fiscal year and converted annual compensation paid to our international employees into U.S. Dollars.






 

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Director Compensation Table
The following table sets forth the fees, awards and other compensation paid to or earned by our directors (other than named executive officers) for the fiscal year ended May 31, 2018:  

Name
 
Fees Earned
or Paid in
Cash ($) 
 
Stock
Awards
($)(1) 
 
Total
($) 
 
Howard W. Donnelly
110,000

132,003

242,003

Jeffrey G. Gold
70,000

132,003

202,003

Kevin J. Gould
72,500

132,003

204,503

Wesley E. Johnson, Jr.
76,000

132,003

208,003

Steven R. LaPorte
67,500

132,003

199,503

Dennis S. Meteny
80,000

132,003

212,003

Eileen Auen
62,500

132,003

194,503

Jan Stern Reed
65,000

132,003

197,003

 
(1)
Represents grant-date fair value based on FASB ASC 718.

Director Compensation Program During the Fiscal Year Ended May 31, 2018
For fiscal 2018, following consultation with Steven Hall Partners, the Nominating and Corporate Governance Committee’s independent compensation consultant, we provided our directors (who are not our employees) with the following compensation: Directors received an annual retainer of $55,000. The chairman of the Board of Directors received an additional annual retainer of $55,000. The chairman of the Audit Committee received an additional annual retainer of $25,000, the chairman of the Compensation Committee received an additional annual retainer of $17,500, and the chairman of the Nominating and Corporate Governance Committee received an additional annual retainer of $11,000. Members of the Audit Committee receive an additional annual retainer of $10,000, members of the Compensation Committee received an additional annual retainer of $7,500 and members of the Nominating Committee received an additional retainer of $5,000.
Directors who are not our employees also received an annual equity grant, wholly comprising restricted stock units, vesting one year from the grant date, with a grant-date fair value equal to $132,000. New directors do not receive any equity grants upon joining the board.
We also reimburse directors who are not our employees for reasonable travel and other related expenses incurred to attend board and committee meetings.
Directors who are our employees receive no additional compensation for their services as directors.
Stock Ownership Guidelines for Board of Directors
To further align the interests of our Board of Directors and shareholders, we maintain stock ownership guidelines for the Board of Directors. Under these guidelines, each member of our Board of Directors is required to hold 8,000 shares. New members of the Board of Directors are allowed 36 months from the time they join the Board to acquire the required number of shares, provided they acquire at least 1/3 of the required amount within 15 months of joining the Board and an additional 1/3 within 27 months of joining the Board. Each member of our Board of Directors is currently in compliance with the applicable holding requirement.




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PROPOSAL 2- RATIFICATION OF APPOINTMENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
The Audit Committee of our Board of Directors has selected Deloitte & Touche LLP, independent certified public accountants, as our company’s independent registered public accounting firm for the fiscal year ending May 31, 2019. The Audit Committee has directed that the appointment of Deloitte & Touche LLP be submitted to our shareholders for ratification due to the significance of their appointment to us. If our shareholders fail to ratify the appointment, it will be considered as a direction to our Board of Directors and the Audit Committee to consider the selection of a different firm. Even if the appointment is ratified, the Audit Committee in its discretion may select a different independent registered public accounting firm at any time during the year if it determines that such a change would be in the best interests of our company and our shareholders.
The proposal to ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending May 31, 2019, must be approved by the affirmative vote of the holders of a majority of the shares represented in person or by proxy and entitled to vote at the Annual Meeting.
Representatives of Deloitte & Touche LLP will attend the Annual Meeting. They will have an opportunity to make a statement if they desire to do so, and they will be available to respond to appropriate questions.
Recommendation of the Board of Directors
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE RATIFICATION OF THE APPOINTMENT OF DELOITTE & TOUCHE LLP AS THE COMPANY’S INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FOR THE FISCAL YEAR ENDING MAY 31, 2019.


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AUDIT MATTERS
Audit Committee Report
During our fiscal year ended May 31, 2018, the members of the Audit Committee were Dennis S. Meteny, Jeffrey G. Gold, Wesley E. Johnson, Jr., and Jan Stern Reed. Each member of the Audit Committee has been determined by the Board of Directors (the “Board”) to be independent under the listing standards of The Nasdaq Stock Market LLC. The Audit Committee operates under a written Audit Committee Charter, which was adopted by the Board of Directors on February 27, 2004, and revised and approved by the Board of Directors on May 10, 2006, May 11, 2009, October 2010 and January 2015. The Audit Committee Charter is available on our website at www.angiodynamics.com under the “Investors-Corporate Governance-Committee Charters-Audit Committee” caption.
Management of the Company is responsible for internal controls, the financial reporting process and compliance with laws and regulations and ethical business standards. The Company’s independent registered public accounting firm is responsible for performing an independent audit of the Company’s financial statements and effectiveness of internal controls in accordance with auditing standards generally accepted in the United States of America and for issuing a report thereon. The Audit Committee is charged with the duty to monitor and oversee these processes.
Pursuant to the Charter, the primary responsibilities of the Audit Committee are to assist the Board in its oversight of: (i) the integrity of the Company’s financial statements, financial reporting process, system of internal controls over financial reporting, and audit process; (ii) the Company’s compliance with, and process for monitoring compliance with, legal and regulatory requirements; (iii) the independent registered public accounting firm’s qualifications and independence; and (iv) the performance of the Company’s independent registered public accounting firm, including, without limitation, ensuring that interim quarterly financial statements are reviewed by the Company’s independent registered public accounting firm. The quarterly reviews include discussions by management and the independent registered public accounting firm with the Audit Committee. The Audit Committee must also pre-approve all audit and permitted non-audit services to be performed by the independent registered public accounting firm.
The Audit Committee has the authority to select, determine the compensation paid to, and replace the Company’s independent registered public accounting firm. PricewaterhouseCoopers LLP was the Company's auditor for the first quarter of fiscal 2017. The Audit Committee selected Deloitte & Touche LLP starting in the second quarter of fiscal 2017 as the Company’s independent registered public accounting firm. During the fiscal year ended May 31, 2018, Deloitte & Touche LLP acted as, and continues to act as, the company’s auditor.
The Charter provides that the Audit Committee shall always consist of not less than three members, all of whom must be independent directors. No member of the Audit Committee may serve on the Audit Committees of more than two other public companies unless the Board determines that such simultaneous service would not impair the ability of such director to serve effectively on the Audit Committee, and discloses this determination in the proxy statement. To carry out its responsibilities, the Audit Committee met eight times, either in person or by telephone, during fiscal 2018.
Prior to the issuance of the fiscal 2018 financial statements, the Audit Committee met with management and with Deloitte & Touche LLP to review the financial statements and to discuss significant accounting issues and policies. Management advised the Audit Committee that the Company’s consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America. The Audit Committee’s review included discussion with Deloitte & Touche LLP of matters that are required to be discussed pursuant to Statement on Auditing Standards No. 16, “Communications with Audit Committees,” as adopted by the Public Company Accounting Oversight Board.
The Audit Committee discussed with Deloitte & Touche LLP matters relating to Deloitte & Touche LLP's independence, including the written disclosures and the letters provided by Deloitte & Touche LLP to the Audit Committee as required by applicable requirements of the Public Company Accounting Oversight Board. Deloitte & Touche LLP informed the Audit Committee in writing that they were independent with respect to the Company within the regulations promulgated by the Securities and Exchange Commission and the requirements of the Public Company Accounting Oversight Board. The Audit Committee has concluded that Deloitte & Touche LLP are independent of the Company and its management.
The Audit Committee discussed with the Company’s independent registered public accounting firm the overall scope and plan for their audit. The Audit Committee met with the independent registered public accounting firm, with and without management present, to discuss the results of their examination and the evaluation of the Company’s internal controls.
On the basis of these reviews and discussions, the Audit Committee recommended to the Board of Directors that the Board approve the inclusion of the Company’s audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2018, for filing with the Securities and Exchange Commission.

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Members of the Audit Committee:
Dennis S. Meteny, Chairman
Jeffrey G. Gold
Wesley E. Johnson
Jan Stern Reed
The Audit Committee Report does not constitute soliciting material, and shall not be deemed to be filed or incorporated by reference into any other filing we make under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (hereinafter referred to as the Exchange Act), except to the extent that we specifically incorporate the Audit Committee Report by reference therein.
Principal Accounting Fees and Services
The following table presents fees for professional audit services rendered by Deloitte & Touche LLP for the audit of our financial statements for the fiscal years ended May 31, 2018 and May 31, 2017, for inclusion in our Annual Reports on Form 10-K for the fiscal years ended May 31, 2017 and May 31, 2016, reviews of quarterly financial statements, and fees paid in those periods for other services rendered by Deloitte & Touche LLP and PricewaterhouseCoopers LLP, in thousands:

 
2018
 
2017
Audit Fees - Deloitte & Touche LLP
$
1,094

 
$
1,293

Audit Fees - PricewaterhouseCoopers LLP
18

 
180

Audit-Related Fees - PricewaterhouseCoopers LLP

 
2

Tax Fees - Deloitte & Touche LLP

 
16

Tax Fees - PricewaterhouseCoopers LLP

 
116

 
$
1,112

 
$
1,607

All fees shown in the table were related to services that were approved by the Audit Committee.
Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of Independent Registered Public Accounting Firm
Consistent with SEC policies regarding auditor independence, the Audit Committee has responsibility for appointing, setting compensation and overseeing the work of the independent registered public accounting firm.
In recognition of this responsibility, the Audit Committee has established a policy to pre-approve all audit and permissible non-audit services provided by the independent registered public accounting firm.
Prior to engagement of the independent registered public accounting firm for the next year’s audit, management submits a list of services and related fees expected to be rendered during that year within each of four categories of services to the Audit Committee for approval.
1.
Audit services include audit work performed on the financial statements and internal control over financial reporting, as well as work that generally only the independent registered public accounting firm can reasonably be expected to provide, including comfort letters, statutory audits, and discussions surrounding the proper application of financial accounting and/or reporting standards.
2.
Audit-Related services are for assurance and related services that are traditionally performed by the independent registered public accounting firm, including due diligence related to mergers and acquisitions and special procedures required to meet certain regulatory requirements.
3.
Tax services include all services, except those services specifically related to the audit of the financial statements, performed by the independent registered public accounting firm’s tax personnel, including tax analysis, assisting with coordination of execution of tax related activities, primarily in the area of corporate tax planning, supporting other tax-related regulatory requirements and tax compliance and reporting.
4.
Other Fees are those associated with services not captured in the other categories. We generally do not request such services from the independent registered public accounting firm.

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Prior to engagement, the Audit Committee pre-approves the independent registered public accounting firm services within each category. The fees are budgeted in the Company’s annual operating budget. During the year, circumstances may arise when it may become necessary to engage the independent registered public accounting firm for additional services not contemplated in the original pre-approval categories. In those instances, the Audit Committee requires specific pre-approval before engaging the independent registered public accounting firm.
The Audit Committee may delegate pre-approval authority to one or more of its members. The member to whom such authority is delegated must report, for informational purposes only, any pre-approval decisions to the Audit Committee at its next scheduled meeting.
 


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PROPOSAL 3-ADVISORY VOTE ON THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS
The primary objective of our overall executive compensation program is to provide balanced, comprehensive and competitive rewards for the short and long-term in a cost-effective manner to the Company. We have designed our executive compensation program to incentivize achievement of earnings, sales and other financial metrics that we believe deliver value to our shareholders, drive operational results and promote high levels of individual performance. Our compensation program provides a combination of fixed and variable pay with an emphasis on at-risk compensation linked to performance goals. We believe that compensation levels in the medical device industry are dynamic and very competitive as a result of the need to attract and retain qualified executives with the necessary skills and experience to keep up with the complex regulatory environment in which we operate and to understand the rapidly changing medical technology in our industry. We believe that our current executive compensation program achieves our objectives effectively.
Shareholders are urged to read the Compensation Discussion and Analysis set forth in this proxy statement that discusses how our compensation policies and procedures reflect our compensation objectives, as well as the Summary Compensation Table and other related compensation tables and narrative disclosure, which describe the compensation of our named executives in fiscal 2018.
In accordance with Section 14A of the Exchange Act, as amended, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and as a matter of good corporate governance, shareholders will be asked at the Annual Meeting to approve the following advisory resolution:
Adoption of Proposal No. 3
RESOLVED, that the shareholders of AngioDynamics, Inc. approve the compensation of the Company’s named executive officers as disclosed pursuant to Item 402 of Regulation S-K, including the Compensation Discussion and Analysis, the Summary Compensation Table and related compensation tables, and the related disclosure contained in this proxy statement.
This advisory vote is not binding. Although non-binding, the Compensation Committee will consider the outcome of the advisory vote when making future decisions regarding our executive compensation programs.
The Board of Directors, taking into account the advisory vote of our shareholders at the 2017 Annual Meeting of Shareholders, has approved an annual frequency for shareholder votes to approve the compensation of our named executive officers. As a result, unless the Board determines otherwise, the next such vote will be held at the Company’s 2019 Annual Meeting of Shareholders and on an annual basis thereafter.
Recommendation of the Board of Directors
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE APPROVAL OF THE COMPENSATION OF OUR NAMED EXECUTIVE OFFICERS.


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PROPOSAL NO. 4 - APPROVAL OF THE ANGIODYNAMICS, INC. 2004 STOCK AND INCENTIVE AWARD PLAN, AS AMENDED
We are asking our shareholders to approve the AngioDynamics, Inc. 2004 Stock and Incentive Award Plan (the “2004 Plan”), as amended, to increase the number of shares of our common stock authorized under the 2004 Plan from 7,000,000 shares to 7,750,000 shares, an increase of 750,000 shares. Our Board of Directors approved the amendment of the 2004 Plan on August 28, 2018, subject to shareholder approval at the Annual Meeting. Approval of the amended 2004 Plan requires the affirmative vote of the holders of a majority of the shares cast at the Annual Meeting. As with prior shareholder-approved amendments to the 2004 Plan, shareholder approval will also extend the term of the 2004 Plan until the 10th anniversary of such shareholder approval.
The use of equity compensation is a significant part of our overall compensation philosophy at AngioDynamics. The 2004 Plan serves as an important part of this practice, and is a critical part of the compensation package that we offer our personnel. We believe that the use of stock options, restricted stock units, performance share awards and other equity-based incentives are critical for us to attract and retain the most qualified personnel and to respond to relevant changes in equity compensation practices. In addition, awards under the 2004 Plan provide our employees an opportunity to acquire or increase their ownership stake in the Company, and we believe this alignment with our shareholders’ interests creates a strong incentive to work hard for our growth and success. In light of the Company’s equity grant policies and practices and compensation philosophy, we believe that the number of shares currently available for grants under the 2004 Plan will be insufficient to satisfy our future equity compensation needs. Although our share usage will depend upon a number of actors, including the number of participants in the 2004 Plan, the price per share of our common stock at the time equity grants are made, and the Compensation Committee’s future determinations of the appropriate mix of equity awards, if this proposal is approved by our shareholders, we expect to have sufficient shares for grants to be made under the 2004 Plan over the next 2 years and to return to our shareholders to request approval of additional shares at our 2020 meeting of shareholders. If our shareholders do not approve this amendment, we will continue to grant awards under the 2004 Plan until the numbers of shares authorized and available for issuance has been exhausted. In the event that we reach the current maximum number of shares authorized for grant under the 2004 Plan, regardless of whether shareholders approve this amendment, our Compensation Committee and the Board will consider whether to adopt alternative arrangements based on their assessments of the Company’s needs.
Proposed Increase in Authorized Shares
As of August 24, 2018, options covering 1,798,677 shares of our common stock with a weighted-average exercise price of $16.24 and a weighted-average remaining term of six years were outstanding. As of August 24, 2018, unvested restricted stock units covering 767,425 shares of our common stock were outstanding. As of August 24, 2018, performance share awards covering 315,622 shares of our common stock were outstanding. Finally, as of August 24, 2018, 1,266,008 shares of common stock were available for future grant under the 2004 Plan. Based on the closing market price of our common stock on August 24, 2018, the additional 750,000 shares proposed to be added to the 2004 Plan would have a market value of approximately $16,680,000.
Summary Description of the 2004 Plan (as amended)
The following is a summary of the principal provisions of the 2004 Plan, as amended by this Proposal No. 4. This summary is qualified in its entirety by reference to the full text of the 2004 Plan, as amended to date and as proposed to be amended, a copy of which is attached as Appendix A to this proxy statement.
Purposes of the 2004 Plan. The primary purposes of the 2004 Plan are (i) to provide competitive equity incentives to enable us to attract, retain, motivate and reward persons who render services to us and (ii) to align the interests of our employees and such other persons with the interests of our shareholders by providing participants with the opportunity to share in any appreciation in the value of our stock that their efforts help bring about.
Shares Authorized for Issuance. As proposed to be amended, up to 7,750,000 shares of our common stock may be issued under our 2004 Plan. Shares that are subject to issuance upon exercise of an option but cease to be subject to such option for any reason (other than exercise of such option), and shares that are subject to an award that is granted but is subsequently forfeited or reacquired by us, or that are subject to an award that terminates without shares being issued, will again be available for grant and issuance under the 2004 Plan. Shares that we may withhold in satisfaction of withholding taxes or permit to be used to pay the exercise price of an option are not available again for grant. Shares subject to a stock appreciation right that are not issued in connection with the stock settlement of that stock appreciation right upon its exercise are not available again for grant. No more than 6,000,000 shares can be issued (including shares issued, reacquired by us pursuant to the terms of awards, and then reissued) as “incentive stock options,” or “ISOs” (by which we mean stock options that meet certain requirements of the Internal Revenue Code of 1986, as amended, or the “Code”).

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Administration. The Compensation Committee of our Board of Directors administers the 2004 Plan, except in instances when the Board decides to directly administer the 2004 Plan. As applicable, the Board and the Compensation Committee are referred to in this description as the “committee.” The committee determines the persons who are to receive awards, the number of shares subject to each such award and the other terms and conditions of such awards. The committee also has the authority to interpret the provisions of the 2004 Plan and of any awards granted thereunder and to modify awards granted under the 2004 Plan. The committee may not, however, re-price options issued under the 2004 Plan without the prior approval of our shareholders.
Eligibility. The 2004 Plan provides for the grant of ISOs, within the meaning of section 422 of the Code, to our employees, and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights, performance units and other incentive awards to our employees, directors and other service providers. As of August 24, 2018, there were approximately 1,300 employees (plus service providers) who were eligible to participate in the 2004 Plan.
Individual Limits. No participant in the 2004 Plan may receive options to purchase, or stock appreciation rights with respect to more than 500,000 shares in any calendar year. The maximum number of shares for which restricted stock, performance share awards and any other stock-value-based award not based solely on the appreciation of our common stock after the award may be granted to a plan participant in any calendar year is 500,000 shares. Dollar-denominated awards under the 2004 Plan may not exceed $400,000 for a participant in any calendar year. No non-employee director may be granted awards with a grant date fair value of greater than $500,000 in any calendar year. Generally, all future awards will have a minimum restriction period or performance period, as applicable, of one year from the date of grant (though the committee may provide for earlier vesting upon a participant’s termination by reason of death or disability, or a change in control).
Options. The committee will determine the exercise price of options granted under the 2004 Plan, but, for all ISOs, the exercise price must at least be equal to the fair market value of our common stock on the date of grant. The term of an ISO may not exceed ten years. For any participant who owns 10% of the voting power of all classes of our outstanding stock, the exercise price must equal at least 110% of the fair market value on the grant date and the term must not exceed five years. The committee will determine the term of all options, including the vesting period and exercise period in the event of termination of service of an employee, director or other service provider. All options will be subject to any other terms and conditions included in the applicable option agreement.
Stock Appreciation Rights. Stock appreciation rights, or SARs, may be granted under the 2004 Plan. SARs allow the recipient to receive the appreciation in the fair market value of our common stock between the date of grant and the exercise date of the SARs or, if the SARs are linked to an option, the date of grant of the option. The committee will determine the terms of SARs, including when such rights become exercisable and whether to pay the increased appreciation in cash or with shares of our common stock, or a combination thereof.
Restricted Stock and Restricted Stock Units. Restricted stock may be granted under the 2004 Plan. Restricted stock awards are grants of shares of our common stock that vest in accordance with the terms and conditions established by the committee. The committee will determine the number of shares of restricted stock granted to any employee, director or other service provider. The committee may impose whatever conditions to vesting it determines to be appropriate. For example, the committee may set restrictions based on the achievement of specific performance goals. Shares of restricted stock that do not vest are subject to our right of repurchase or forfeiture. The committee may also make restricted stock unit awards, which are shares of our common stock that are issued only after the recipient satisfies any service or performance objectives or contingencies determined by the committee.
Performance Units and Performance Shares. Performance units and performance shares may be granted under the 2004 Plan. Performance share awards are rights to receive a specified number of shares of our common stock and/or an amount of money equal to the fair market value of a specified number of shares of our common stock, at a future time or times if a specified performance goal is attained and any other terms and conditions specified by the committee are satisfied. Performance unit awards are rights to receive a specified dollar value, payable in either cash or in shares of our common stock, at a future time or times if a specified performance goal is attained and any other terms and conditions specified by the committee are satisfied. The committee will establish organizational or individual performance goals in its discretion, which, depending on the extent to which they are met, will determine the number and/or the value of performance units and performance shares to be paid out to participants.
Performance Metrics. Under the 2004 Plan, the performance goal applicable to any award (other than an appreciation-only award) that the Compensation Committee intends to qualify as performance-based compensation will be based on earnings per share (diluted or basic), total shareholder return, or any one or more of the following performance measures on a consolidated company, business unit or divisional level, or by product or product line, as the Compensation Committee may specify: net sales, net income, operating income, return on equity, return on capital, cash flow, earnings before interest and

42



taxes, or earnings before interest, taxes, depreciation, and amortization. The Compensation Committee will select the performance measure or measures on which the performance goal applicable to any such award will be based and will establish the levels of performance at which such award is to be earned in whole or in part. Any such performance measure or combination of such performance measures may apply to the service provider’s award in its entirety or to any designated portion or portions of the award, as the Compensation Committee may specify. The foregoing performance measures will be determined in accordance with generally accepted accounting principles (“GAAPs”) to the extent that GAAPs define such performance measures, and otherwise will be determined in accordance with any customary and reasonable definition the Compensation Committee approves. However, notwithstanding the preceding sentence, unless the Compensation Committee determines otherwise prior to payment of an award, and subject to any exercise of “negative discretion” by the Compensation Committee, extraordinary, unusual or non-recurring items; discontinued operations; effects of accounting changes; effects of currency fluctuations; effects of financing activities (by way of example, without limitation, effect on earnings per share of issuing convertible debt securities); expenses for restructuring or productivity initiatives; non-operating items; effects of acquisitions and acquisition expenses; and effects of divestitures and divestiture expenses, any of which affect any performance goal applicable to such award (including, without limitation, earnings per share but excluding total shareholder return) will be automatically excluded or included in determining the extent to which the performance goal has been achieved, whichever will produce the higher award.
Incentive Awards. The 2004 Plan authorizes the committee to grant incentive awards, which are rights to receive money or shares on such terms and subject to such conditions as the committee may prescribe. Restricted stock, performance shares and performance units are particular forms of incentive awards but are not the only forms in which they may be made. Incentive awards may also take, for example, the form of cash or stock bonuses.
Change in Control. The 2004 Plan authorizes the committee to grant options and SARs that become exercisable, and any award under the 2004 Plan that becomes non-forfeitable, fully earned and payable, if we have a “change in control,” and to provide for money to be paid in settlement of any award under the 2004 Plan in such event. Additionally, if we have a change of control, the committee may make any award outstanding under the 2004 Plan non-forfeitable, fully earned and payable (or exercisable), or require the automatic cash settlement of all outstanding awards.
In general, under the 2004 Plan, a “change in control” will be deemed to occur if any person or group of persons acting in concert becomes the beneficial owner of more than 40% of our common stock; a majority of our Board changes over any period of two years or less without the approval of a majority of the directors serving at the beginning of such period; there is consummated a merger or consolidation with any other corporation, or the shareholders approve a plan of complete liquidation or dissolution of the Company or there is consummated a sale of assets or plan of complete liquidation following which our shareholders before the transaction will not own at least 60% of our voting power or assets.
Transfers of Awards. The 2004 Plan does not allow for the transfer of awards, except for transfers by will or the laws of descent and distribution or to such other persons designated by a participant to receive the award upon the participant’s death, or except as may otherwise be authorized by the committee for any award other than an ISO.
Clawbacks. The 2004 Plan provides that if an award has been granted to an executive of the Company and the committee later determines that the financial results used to determine the amount of that award are materially restated and that such executive engaged in fraud or intentional misconduct with respect to the inputs to, or determination of, such financial results, the Company will seek repayment or recovery of the award, as the Committee in its sole discretion determines is reasonable and appropriate, notwithstanding any contrary provision of the 2004 Plan. In addition, the committee may provide that any service provider and/or any award, including any shares subject to or issued under an award, is subject to recovery, recoupment, clawback and/or any other forfeiture policy maintained by the Company from time to time.
Amendment of Plan. Subject to any applicable shareholder approval requirements of Delaware or federal law, any rules or listing standards that apply to our Company, or the Code, the 2004 Plan may be amended by the Board of Directors at any time and in any respect, including without limitation to permit or facilitate qualification of options previously granted or to be granted in the future (1) as incentive stock options under the Code, or (2) for such other special tax treatment as may be enacted on or after the date on which the 2004 Plan is approved by the Board. Without shareholder approval, however, no amendment may increase the aggregate number of shares which may be issued under the 2004 Plan, or may permit the exercise price of outstanding options or SARs to be reduced, subject to limited exceptions. Without shareholder approval, the Company shall not execute any cash buyouts of underwater stock options or stock appreciation rights. No amendment of the 2004 Plan may adversely affect any award granted prior to the date of such amendment or termination without the written consent of the holder of such award.



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Summary of Federal Income Tax Consequences under the 2004 Plan
The following is a general summary as of the date of this proxy statement of the material U.S. federal income tax consequences to AngioDynamics and participants in the 2004 Plan with respect to awards granted under the 2004 Plan. This summary is based upon the Code, Treasury Regulations, administrative pronouncements and judicial decisions, in each case as in effect on the date hereof, all of which are subject to change (possibly with retroactive effect). The specific tax consequences for any participant will depend upon his or her individual circumstances. This summary does not address state, local or foreign tax consequences to AngioDynamics or participants in the 2004 Plan.
Tax Treatment of the Participants.
ISOs. Subject to the discussion of the alternative minimum tax (“AMT”) below, a participant will recognize no income upon grant of an ISO and will incur no tax upon exercise of an ISO, provided that the participant is an employee when the ISO is granted and did not cease being an employee for more than three months prior to exercise of the ISO. If a participant holds the shares purchased upon exercise of the ISO (the “ISO Shares”) for more than one year after the date the ISO was exercised and for more than two years after the ISO’s grant date (the “required holding period” ), then the participant generally will realize long-term capital gain or loss (rather than ordinary income or loss) upon disposition of the ISO Shares in an amount equal to the difference between the amount realized upon such disposition and the exercise price of the ISOs.
If a participant disposes of ISO Shares prior to the expiration of the required holding period (a “disqualifying disposition”), then gain realized upon such disposition, to the extent of the difference between the ISO exercise price and the fair market value of the ISO Shares on the date of exercise, will be treated as ordinary income. Any additional gain will be capital gain, and treated as long-term capital gain if the ISO Shares were held by the participant for at least one year.
The difference between the exercise price and fair market value of the ISO Shares on the date of exercise is an adjustment to income for purposes of the AMT. The AMT (imposed to the extent it exceeds the taxpayer’s regular tax) is currently 26% of an individual taxpayer’s alternative minimum taxable income (28% percent in the case of alternative minimum taxable income in excess of $187,800 for married couples filing jointly, or $93,900 for other taxpayers). Alternative minimum taxable income is determined by adjusting regular taxable income for certain items, increasing that income by certain tax preference items and reducing this amount by the applicable exemption amount. If a disqualifying disposition of the ISO Shares occurs in the same calendar year as exercise of the ISO, there is no AMT adjustment with respect to those ISO Shares. Also, upon a sale of ISO Shares that is not a disqualifying disposition, alternative minimum taxable income is reduced in the year of sale by the excess of the fair market value of the ISO Shares at exercise over the amount paid for the ISO Shares.
Nonqualified Stock Options. A participant will not recognize any taxable income at the time a nonqualified stock option, or NQSO, is granted. However, upon exercise of a NQSO, a participant must include in income as compensation an amount equal to the difference between the fair market value of the shares on the date of exercise and the NQSO’s exercise price. The included amount must be treated as ordinary income by the participant and will be subject to income tax withholding by us if the participant is an employee. Upon disposition of the shares by a participant, the participant will recognize capital gain or loss in an amount equal to the difference between the amount received on disposition and the fair market value of the shares on the date of exercise. This gain will be long-term capital gain if the participant has held the shares for at least one year.
Stock Appreciation Rights. A grant of a stock appreciation right has no federal income tax consequences at the time of grant. Upon the exercise of stock appreciation rights, the value of the shares or other consideration received is generally taxable to the recipient as ordinary income, which will be subject to income tax withholding by us if the participant is an employee.
Restricted Stock. A participant receiving restricted shares for services recognizes taxable income when the shares become vested, generally when they are transferable or no longer subject to a substantial risk of forfeiture. Upon vesting, the participant will include in ordinary income an amount, which will be subject to income tax withholding by us if the participant is an employee, equal to the difference between the fair market value of the shares at the time they become substantially vested and any amount paid for the shares.
Upon disposition of the shares by a participant, the participant will recognize capital gain or loss in an amount equal to the difference between the amount received on disposition and the fair market value of the shares on the date of exercise. This gain will be long-term capital gain if the participant has held the shares for at least one year.
A participant can file an election with the IRS (an “83(b) Election”), not later than 30 days after the date of the transfer of the restricted shares, to include in income as compensation (treated as ordinary income), in the year of the transfer of such restricted shares, an amount equal to the difference between the fair market value of such shares on the date of transfer and any amount paid for such shares. The included amount must be treated as ordinary income by the participant and may be subject to

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income tax withholding by us. Income is not again required to be included upon the lapse of the restrictions. Upon disposition of the shares by a participant, the participant will recognize capital gain or loss in an amount equal to the difference between the amount received on disposition and the fair market value of the shares on the date of grant. This gain will be long-term capital gain if the 83(b) Election was made at least one year prior to the disposition.
Restricted Stock Units. A participant receiving a restricted stock unit will recognize ordinary income in an amount equal to the money or the fair market value of the shares received at the time of their receipt.
Performance Shares and Performance Units. Performance Shares and Performance Units will be treated in the same manner as Restricted Stock and Restricted Stock Units, respectively, described above.
Code Section 409A. Section 409A of the Code (“Section 409A”), imposes significant restrictions on a range of nonqualified deferred compensation plans, along with a penalty on a participant receiving compensation under a plan that does not meet the requirements of Section 409A.
The definition of a nonqualified deferred compensation plan is broad and could include certain awards granted under the 2004 Plan. Certain compensation under the 2004 Plan, however, would not be subject to Section 409A, such as:
options where the exercise price is at least equal to fair market value on the date of grant; and
transfers of property subject to Section 83 of the Code (other than option grants) (e.g., where income is taxed at time of vesting or where the participant makes an 83(b) Election).
Amounts deferred under a nonqualified deferred compensation plan that do not comply with Section 409A are includable in a participant’s gross income and taxable immediately to the extent that such amounts are not subject to a substantial risk of forfeiture (e.g., when the participant becomes vested in the deferred amounts). Amounts deferred under a nonqualified deferred compensation plan before January 1, 2005, are generally not subject to the requirements of Section 409A. However, amounts deferred under a nonqualified deferred compensation plan that is materially modified after October 3, 2004, and amounts deferred but not vested prior to January 1, 2005, are subject to Section 409A. An increase in the number of shares authorized under the 2004 Plan should not constitute a material modification.
Tax Treatment of AngioDynamics
Subject to any withholding requirement, the standard of reasonableness, and (if applicable) Section 162(m) of the Code (which generally limits our annual compensation deduction attributable to certain of our covered officers to $1 million annually), we generally will be entitled to a deduction to the extent any participant recognizes ordinary income from an award granted under the 2004 Plan. However, effective for taxable years beginning after December 31, 2017, Section 162(m)’s exemption from its deduction limit for “qualifying performance-based” compensation (i.e., compensation paid only if the individual’s performance meets pre-established objective goals based on performance criteria approved by shareholders) has been repealed, such that compensation paid to certain of our covered officers in excess of $1 million will not be deductible unless it qualifies for transition relief applicable to certain arrangements in place as of November 2, 2017. Going forward, as in previous years, the potential deductibility of compensation is only one of many considerations that the committee will take into account when determining awards under the 2004 Plan, and we believe it is important that the committee retain flexibility and authority to grant or adjust awards under the 2004 Plan as needed to address particular circumstances, or unexpected, unusual or non-recurring events, or to attract and retain key executive talent, even if this results in the grant or settlement of awards under the 2004 Plan that are not deductible (whether by application of Section 162(m), to the extent applicable, or otherwise). Therefore, the committee may make awards under the 2004 Plan that are not deductible if, in its judgment, such payments are advisable to achieve our compensation objectives.
New Plan Benefits. Provided that the shareholders approve the amendment of the 2004 Plan, the number of shares of common stock issuable pursuant to the terms of the 2004 Plan will be available for awards to all eligible participants of the plan. The Board of Directors has not at this time considered or approved any future awards under the 2004 Plan, and, as a result, the identity of future award recipients and the size and terms of future awards are not known at this time.


Recommendation of the Board of Directors
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE PROPOSAL TO APPROVE THE ANGIODYNAMICS, INC. 2004 STOCK AND INCENTIVE AWARD PLAN, AMENDED.

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PROPOSAL 5-APPROVAL OF THE ANGIODYNAMICS, INC.
EMPLOYEE STOCK PURCHASE PLAN, AS AMENDED

We are asking our shareholders to approve the Employee Stock Purchase Plan (the “ESPP”), as amended, to increase the total number of shares of common stock that may be offered under the plan from 2,500,000 to 3,500,000. Our Board of Directors approved the amendment of the ESPP on August 28. 2018, subject to shareholder approval at the Annual Meeting. Approval of the ESPP, as amended, requires the affirmative vote of the holders of a majority of the shares cast at the Annual Meeting.
The purpose of the ESPP is to provide a means by which employees of AngioDynamics and its designated subsidiaries (collectively, “participants”) may be given an opportunity to purchase AngioDynamics common stock through payroll deductions. Our Board of Directors believes that by providing our employees with the opportunity to acquire a proprietary interest in the Company, we will be better able to attract, motivate, and retain the best available personnel for the success of our business. All eligible participants will have the same purchase rights and privileges under the ESPP.
As of August 24, 2018, 1,247,809 shares of common stock remained available for purchase under the ESPP.
The essential features of the ESPP are summarized below. This summary does not purport to be a complete description of the ESPP and is qualified by reference to the ESPP, as amended to date and as proposed to be amended, a copy of which is attached as Appendix B to this proxy statement.
Summary of the ESPP Plan (as amended)
Administration. The ESPP will be administered by our Board of Directors. The Board has the final power to construe and interpret both the ESPP and the rights granted under it, and to adopt rules and regulations for the administration of the ESPP. Determinations made by the Board with respect to any matter or provision contained in the ESPP shall be final, conclusive, and binding on AngioDynamics and all participants in the ESPP.
Shares of Stock Subject to the ESPP. Subject to adjustment as provided below, as proposed to be amended, the maximum aggregate number of shares to be offered under the ESPP will be 3,500,000 shares of our common stock. Shares delivered under the ESPP may consist of authorized and unissued shares, treasury shares or shares purchased on the open market.
Purchase Periods and Purchase Dates. Shares of common stock will be offered under the ESPP through offering periods, each with a duration of approximately six months. The offering periods will commence on the first business day on or after September 1st and March 1st of each year and each consists of a series of successive six-month purchase periods. Purchases will occur on the last day of each purchase period.
Eligibility and Participation. Any person who, on the first day of an offering period, has been employed in a full-time capacity for at least three months, with a customary working schedule of 20 or more hours per week and more than five months in a calendar year, is eligible to participate in that offering period. However, no employee is eligible to participate in the ESPP if, on the first day of an offering period, the employee owns stock equal to 5% or more of the total combined voting power or value of all classes of our stock or those of any of our subsidiaries. Eligible participants may join an offering period prior to the beginning of the period.
Purchase Price for Shares. The purchase price of the shares of common stock acquired on each purchase date will be the lower of (i) 85% of the fair market value of a share of common stock on the first day of the offering period or (ii) 85% of the fair market value of a share of common stock on the last day of the offering period, subject to any adjustments made by the Board of Directors in the event of changes in capitalization, dissolution or liquidation, or merger or asset sale. “Fair market value” means the closing sale price (or closing bid price if no sales are reported) of our common stock as reported by the Nasdaq Global Select Market or, in the absence of an established trading market, as determined in good faith by the Board of Directors.
Payroll Deductions and Stock Purchases. The purchase price of the shares of common stock will be accumulated by payroll deductions in an amount of not less than one percent (1%) and not more than fifteen percent (15%) (or such greater percentage as the Board may establish from time to time before an offering commencement date) of a participant’s compensation on each payday during an offering period. The accumulated deduction will automatically be applied on each purchase date to the purchase of whole shares of common stock at the purchase price in effect for that purchase date. For

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purposes of the ESPP, eligible compensation includes salary, wages, overtime, bonuses, commissions and incentive compensation.
Special Limitations. The ESPP imposes certain limitations upon a participant’s right to acquire common stock, including the following:
 
 
 
 
A participant may not be granted rights under the ESPP and all other employee stock purchase plans of AngioDynamics and its subsidiaries to purchase more than $25,000 worth of common stock (determined based on fair market value of the stock on the first day of the offering period) for each calendar year in which the offering period is in effect; and
 
 
 
 
No Participant may purchase more than $9,000 worth of common stock on any one purchase date.
Withdrawal; Termination of Purchase Rights. A participant may withdraw all, but not less than all, the payroll deductions credited to his or her account and not yet used to acquire shares under the ESPP any time on or before 15 days prior to a purchase date.
Purchase rights granted pursuant to any offering period under the ESPP terminate immediately upon cessation of a participant’s employment for any reason. The participant will be deemed to have elected to withdraw from the ESPP, and we will distribute to such participant, or, in the case of his or her death, to the person or persons designated as his or her beneficiary, all of his or her accumulated payroll deductions.
Upon a participant’s withdrawal, all of the participant’s payroll deductions credited to his or her account will be paid to such participant promptly after receipt of a notice of withdrawal, the participant’s purchase right for the offering period will automatically be terminated, no further payroll deductions for the purchase of shares will be made for such offering period, and payroll deductions will not resume at the beginning of the succeeding offering period or any offering period thereafter unless the participant re-enrolls in the ESPP. A participant’s withdrawal from a given offering period will not affect such participant’s eligibility to participate in subsequent offering periods under the ESPP.
No Transfer. Purchase rights granted under the ESPP are not transferable by a participant and may be exercised only by the participant to whom such rights are granted.
Adjustment Provisions. The number of shares authorized but not yet issued and the purchase price thereof, and the maximum number of shares that a participant may purchase each purchase period, will be proportionately adjusted for any increase or decrease in the number of our issued shares of common stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of our common stock, or any other similar change in the number of our outstanding shares effected without the receipt of consideration by us.
Effect of Certain Corporate Transactions. The ESPP provides that, in the event of: (i) a sale of all or substantially all of our assets; or (ii) our merger with or into another corporation, the ESPP will be assumed, or an equivalent plan substituted, by the successor corporation or a parent or subsidiary of the successor corporation. However, if the successor corporation refuses to assume the ESPP or substitute an equivalent plan, the offering period then in progress will be shortened by changing the next purchase date to a date that falls before the date of the proposed sale of assets or merger. Similarly, in the event of a proposed dissolution or liquidation of the Company, the offering period then in progress will be shortened by changing the next purchase date to a date before the date of the proposed dissolution or liquidation. In each such instance, all participants’ purchase rights will be exercised automatically on the new purchase date unless before such date they have withdrawn from the offering period.
Shareholder Rights. No participant will have any shareholder rights with respect to the shares covered by his or her purchase rights until the shares are actually purchased on the participant’s behalf.
Share Proration. Should the total number of shares of common stock to be purchased pursuant to outstanding purchase rights on any particular date exceed the number of shares available for issuance under the ESPP at that time, then the Board will make a pro rata allocation of the available shares in as uniform a manner as shall be practicable and as it shall determine to be equitable.
Duration, Amendment and Termination. Unless sooner terminated by our Board of Directors, the ESPP will continue in effect for a term of ten years from the latest date of shareholder approval.

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The Board may modify or amend the ESPP at any time. Any modification or amendment of the ESPP must be approved by the shareholders if such approval is required under applicable rules and regulations.
The Board may also amend or modify the ESPP, and any purchase rights previously granted under the ESPP, to the extent necessary to ensure the continued qualification of the ESPP under Section 423 of the Code.
Summary of Federal Income Tax Consequences under the ESPP
The following is a summary of the principal United States Federal income taxation consequences to AngioDynamics and participants subject to U.S. taxation with respect to participation in the ESPP. This summary is based upon the Code, Treasury Regulations, administrative pronouncements and judicial decisions, in each case as in effect on the date hereof, all of which are subject to change (possibly with retroactive effect). The specific tax consequences for any participant will depend upon his or her individual circumstances. This summary does not address state, local or foreign tax consequences to AngioDynamics or participants in the ESPP.
The plan is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Code. A participant will be taxed on amounts withheld for the purchase of shares of common stock as if such amounts were actually received. Other than this, no income will be taxable to a participant until disposition of the acquired shares, and the method of taxation will depend upon the holding period of the acquired shares.
If a participant sells or otherwise disposes of the purchased shares within two years after his or her entry date into the offering period in which such shares were acquired or within one year after the actual purchase date of those shares, then the participant will recognize ordinary income in the year of sale or disposition equal to the amount by which the closing selling price of the shares on the purchase date exceeded the purchase price paid for those shares, and AngioDynamics will be entitled to an income tax deduction, for the taxable year in which such disposition occurs, equal in amount to such excess. The participant also will recognize a capital gain to the extent the amount realized upon the sale of the shares exceeds the sum of the aggregate purchase price for those shares and the ordinary income recognized in connection with their acquisition.
If a participant sells or disposes of the purchased shares more than two years after his or her entry date into the offering period in which the shares were acquired and more than one year after the actual purchase date of those shares, the participant will recognize ordinary income in the year of sale or disposition equal to the lower of (i) the amount by which the closing selling price of the shares on the sale or disposition date exceeded the purchase price paid for those shares or (ii) fifteen percent (15%) of the closing selling price of the shares on the participant’s entry date into that purchase period. Any additional gain upon the disposition will be taxed as a long-term capital gain. AngioDynamics will not be entitled to an income tax deduction with respect to such disposition.
If a participant still owns the purchased shares at the time of death, his or her estate will recognize ordinary income in the year of death equal to the lower of (i) the amount by which the closing selling price of the shares on the date of death exceeds the purchase price, or (ii) fifteen percent (15%) of the closing selling price of the shares on his or her entry date into the purchase period in which those shares were acquired.
Directors who are not employees will not be eligible to participate in the ESPP. The future benefits that will be received under the ESPP by the current executive officers of the Company and by all eligible employees are not currently determinable. The Company estimates that approximately 1,300 employees of the Company will be eligible to participate upon commencement of the next offering period of the ESPP.
On August 24, 2018, the closing price of the Company’s common stock on the Nasdaq Global Select Market was $22.24.
Recommendation of the Board of Directors
THE BOARD OF DIRECTORS RECOMMENDS A VOTE “FOR” THE PROPOSAL TO APPROVE THE ANGIODYNAMICS, INC. EMPLOYEE STOCK PURCHASE PLAN, AS AMEDNED.

 



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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Related Party Transactions
There were no related party transactions pursuant to Item 404 of Regulation S-K during our fiscal year ended May 31, 2018.
Policy on Related Party Transactions
On July 27, 2007, the Board of Directors approved a Related Person Transaction Policy. The policy defines “Related Person Transaction” as certain transactions, arrangements or relationships in which the company participates, the amount exceeds $50,000 and certain related persons have a material interest. Under the policy, any potential Related Person Transaction, including for example the purchase of goods or services, guarantees of indebtedness or employment, must be pre-approved by the Audit Committee unless circumstances make pre-approval impracticable. In the latter case, management is allowed to enter into the transaction, but the transaction remains subject to ratification by the Audit Committee at a subsequent Audit Committee meeting. In determining whether to approve or ratify a Related Person Transaction, the Audit Committee will take into account a number of factors, including the related person’s interest and approximate dollar amount of the transaction, as well as, whether the transaction occurred in the ordinary course of business or through a competitive bid process. On an annual basis, the Audit Committee will review and assess ongoing Related Person Transactions to determine whether the relationships remain appropriate.


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SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Exchange Act of 1934, as amended, requires our executive officers and directors, and persons who own more than 10% of a registered class of our equity securities, to file reports of initial ownership and changes in ownership with the SEC. Based solely on our review of copies of such forms received by us, or on written representations from certain reporting persons that no reports were required for such persons, we believe that, during the fiscal year ended May 31, 2018, all of our executive officers, directors and 10% shareholders complied with all Section 16 filing requirements, except that each of James C. Clemmer, Jeffrey G. Gold, Dennis S. Meteny and Stephen A. Trowbridge filed one late Form 4.

 


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ANNUAL REPORT
Any AngioDynamics shareholder may obtain without charge additional copies of our annual report on Form 10-K for the fiscal year ended May 31, 2018 (without exhibits), as filed with the SEC, by writing to:
General Counsel
AngioDynamics, Inc.
14 Plaza Drive
Latham, New York 12110
 


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SHAREHOLDER PROPOSALS AND NOMINATIONS
Under Rule 14a-8 under the Exchange Act, shareholders may present proper proposals for inclusion in our proxy statement and for consideration at our next Annual Meeting of Shareholders. To be eligible for inclusion in our 2018 proxy statement, your proposal must be received by us no later than May 2, 2019 and must otherwise comply with Rule 14a-8. While the Board of Directors will consider shareholder proposals, we reserve the right to omit from our proxy statement shareholder proposals that we are not required to include under the Exchange Act, including under Rule 14a-8.
In addition, our By-Laws contain an advance notice provision with respect to matters to be brought before an Annual Meeting of Shareholders, including nominations for directors, and not included in our proxy statement. If you would like to nominate a director or bring any other business before the shareholders at the fiscal 2018 Annual Meeting, you must comply with the procedures contained in the By-Laws and you must notify us in writing, and such notice must be delivered to or received by our Secretary no earlier than June 12, 2019 and no later than July 12, 2019. However, if the fiscal 2018 Annual Meeting is called for a date that is not within 25 days before or after October 17, 2018, notice must be received by our Secretary no later than the later of (i) the close of business on the 90th day before the fiscal 2018 Annual Meeting and (ii) the close of business on the 10th day following the day on which notice of the fiscal 2018 Annual Meeting was mailed to shareholders or public disclosure of the date of the fiscal 2018 Annual Meeting was made, whichever first occurs.
You may write to our Secretary at our principal executive office, 14 Plaza Drive, Latham, New York 12110, to deliver the notices discussed above and to request a copy of the relevant By-Law provisions regarding the requirements for making shareholder proposals and nominations of directors.
 


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OTHER MATTERS
As of the date of this proxy statement, we know of no matters other than those set forth herein that will be presented for consideration at the meeting. If any other matter or matters are properly brought before the meeting or any adjournment thereof, the persons named in the accompanying proxy will have discretionary authority to vote, or otherwise act, with respect to such matters in accordance with their judgment.


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APPENDIX A
ANGIODYNAMICS, INC.
2004 STOCK AND INCENTIVE AWARD PLAN
(as amended)
1. Purposes. The primary purposes of this Plan are (a) to provide competitive equity incentives that will enable the Company to attract, retain, motivate and reward persons who render services that benefit the Company or other enterprises in which the Company has a significant interest and (b) to align the interests of such persons with the interests of the Company’s shareholders generally.
2. Definitions. Unless otherwise required by the context, the following terms, when used in this Plan, shall have the meanings set forth in this Section 2.
 
(a)
“Affiliate” means an affiliate as defined in Rule 12b-2 promulgated under Section 12 of the Exchange Act.
 
(b)
“Allied Enterprise” means a business enterprise, other than the Company or a Subsidiary, in which the Committee determines the Company has a significant interest, contingent or otherwise. E-Z-EM, Inc. shall be deemed to be an Allied Enterprise while it is an Affiliate of the Company.
 
(c)
“Appreciation-Only Award” means (i) Options and Stock Appreciation Rights the exercise price of which is equal to at least 100% of Fair Market Value on the date on which the Options or Stock Appreciation Rights are granted, and (ii) Linked Stock Appreciation Rights that are granted as an alternative to the related Option after the date of grant of such Option, the exercise price of which Stock Appreciation Rights is equal to at least 100% of Fair Market Value on the date on which such Option was granted.
 
(d)
“Award” means an award granted under this Plan in one of the forms provided for in Section 3(a).
 
(e)
“Beneficiary” means a person or entity (including but not limited to a trust or estate), designated in writing by a Service Provider or other rightful holder of an Award, on such forms and in accordance with such terms and conditions as the Committee may prescribe, to whom such Service Provider’s or other rightful holder’s rights under the Plan shall pass in the event of the death of such Service Provider or other rightful holder. In the event that the person or entity so designated is not living or in existence at the time of the death of the Service Provider or other rightful holder of the Award, or in the event that no such person or entity has been so designated, the “Beneficiary” shall mean the legal representative of the estate of the Service Provider or other rightful holder, or the person or entity to whom the Service Provider’s or other rightful holder’s rights with respect to the Award pass by will or the laws of descent and distribution.
 
(f)
“Board” or “Board of Directors” means the Board of Directors of the Company, as constituted from time to time.
 
(g)
“Change in Control” means that any of the following events has occurred:
 
i.
any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing more than 40% of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (A) of paragraph (iii) below; or
 
ii.
the following individuals cease for any reason to constitute a majority of the number of directors serving on the Board: individuals who, at the beginning of any period of two consecutive years or less (not including any period prior to the Effective Date), constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of such period or whose appointment, election or nomination for election was previously so approved or recommended; or

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iii.
there is consummated a merger or consolidation of the Company or any Subsidiary with any other corporation, other than (A) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary, at least 60% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (B) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing more than 40% or more of the combined voting power of the Company’s then outstanding securities; or
 
iv.
the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 60% of the combined voting power of the voting securities of which are owned by shareholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.
For purposes of the foregoing provisions of this Section 2(g),
 
(A)
the term “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act;
 
(B)
the term “Effective Date” shall mean the date on which the Plan is effective as provided in Section 11 hereof; and
 
(C)
the term “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company.
 
(h)
“Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time. References to a particular section of the Code shall include references to any related Treasury Regulations and to successor provisions of the Code.
 
(i)
“Committee” means the committee appointed by the Board of Directors to administer the Plan pursuant to the provisions of Section 12(a) below.
 
(j)
“Common Stock” means common stock of the Company, par value $.01 per share.
 
(k)
“Company” means AngioDynamics, Inc., a Delaware corporation, and, except for purposes of determining under Section 2(g) hereof whether or not a Change in Control has occurred, shall include its successors.
 
 
 
 
(l)
“Dollar-Denominated Awards” means Performance Unit Awards and any other Incentive Award the amount of which is based on a specified amount of money (other than an amount of money determined by reference to the Fair Market Value of a specified number of shares of Common Stock). Options and Stock Appreciation Rights are not Dollar-Denominated Awards.
 
(m)
“Employee” means any person who is employed by the Company or a Subsidiary on a full-time or part-time basis, including an officer or director if he is so employed.
 
(n)
“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.
 
(o)
“Fair Market Value” on a particular date means as follows:

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