UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a)
of the Securities
Exchange Act of 1934 (Amendment No. __)
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Filed by the registrant
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Filed by a party other than the registrant
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Preliminary proxy statement
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Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e) (2))
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Definitive proxy statement
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Soliciting material under Section 240.14a-12
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Hudson Technologies, Inc.
(Name of Registrant as Specified in Its
Charter)
(Name of Person(s) Filing Proxy Statement,
if other than the Registrant)
Payment of filing fee (Check the appropriate box):
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No fee required.
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Fee computed on table below per Exchange Act Rules 14a-6(i) (1) and 0-11.
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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):
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Fee paid previously with preliminary materials.
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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.
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Amount previously paid:
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HUDSON TECHNOLOGIES,
INC.
PO Box 1541, One Blue Hill Plaza
Pearl River, New York 10965
July 21, 2016
Dear Fellow Shareholders:
You are cordially invited
to attend the Annual Meeting of Shareholders of Hudson Technologies, Inc., which will be held on Wednesday, August 24, 2016 at
10:00 A.M., local time at the Holiday Inn Orangeburg, 329 Route 303, Orangeburg, New York 10962. The Notice of Annual Meeting and
Proxy Statement which follow describe the business to be conducted at the meeting.
Whether or not you
plan to attend the Annual Meeting in person, it is important that your shares be represented and voted. After reading the enclosed
Notice of Annual Meeting and Proxy Statement, I urge you to complete, sign, date and return your proxy card in the envelope provided.
If the address on the accompanying material is incorrect, please inform our Transfer Agent, Continental Stock Transfer & Trust
Company, at 17 Battery Place, New York, New York 10004, in writing, of the correct address.
Your vote is very important,
and we will appreciate a prompt return of your signed proxy card. We hope to see you at the meeting.
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Cordially,
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Kevin J. Zugibe, P.E.
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Chairman of the Board and
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Chief Executive Officer
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HUDSON TECHNOLOGIES, INC.
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON AUGUST 24, 2016
To the Shareholders of HUDSON TECHNOLOGIES,
INC.:
NOTICE IS HEREBY GIVEN
that the Annual Meeting of Shareholders of Hudson Technologies, Inc. (the “Company”) will be held on Wednesday, August
24, 2016 at 10:00 A.M., local time at the Holiday Inn Orangeburg, 329 Route 303, Orangeburg, New York 10962 for the following purposes:
1. Election
of four directors to serve until the Annual Meeting of Shareholders to be held in 2018;
2. Advisory
vote to approve named executive officer compensation;
3. Ratification
of the appointment of BDO USA, LLP as the Company’s independent registered public accountants for the fiscal year ending
December 31, 2016; and
4. Transaction
of such other business as may properly come before the meeting or any adjournment or adjournments thereof.
Only shareholders of
record at the close of business on July 7, 2016 are entitled to notice of and to vote at the Annual Meeting or any adjournments
thereof.
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By Order of the Board of Directors
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Stephen P. Mandracchia
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Secretary
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July 21, 2016
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IF YOU DO NOT EXPECT TO BE PRESENT AT
THE MEETING:
PLEASE FILL IN, DATE, SIGN AND RETURN
THE ENCLOSED PROXY CARD IN THE ENVELOPE PROVIDED FOR THAT PURPOSE, WHICH REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES. THE
PROXY MAY BE REVOKED AT ANY TIME PRIOR TO EXERCISE, AND IF YOU ARE PRESENT AT THE MEETING YOU MAY, IF YOU WISH, REVOKE YOUR PROXY
AT THAT TIME AND EXERCISE THE RIGHT TO VOTE YOUR SHARES PERSONALLY.
PROXY STATEMENT
HUDSON TECHNOLOGIES, INC.
ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON AUGUST 24, 2016
This proxy statement
is furnished in connection with the solicitation of proxies by the Board of Directors (the “Board”) of Hudson Technologies,
Inc. (the "Company", “Hudson”, “we” or “our”) for use at the Annual Meeting of Shareholders
(the "Annual Meeting") to be held on Wednesday, August 24, 2016, and including any adjournment or adjournments thereof,
for the purposes set forth in the accompanying Notice of Annual Meeting.
Management intends
to mail this proxy statement and the accompanying form of proxy to shareholders on or about July 26, 2016.
Proxies in the accompanying
form, duly executed, returned and not revoked, will be voted at the Annual Meeting. Any proxy given pursuant to such solicitation
may be revoked by the shareholder at any time prior to the voting of the proxy by a subsequently dated proxy, by written notification
to the Secretary of the Company, or by personally withdrawing the proxy at the Annual Meeting and voting in person.
The address and telephone
number of the principal executive offices of the Company is:
PO Box 1541, One Blue Hill Plaza
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Pearl River, New York 10965
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Telephone No.: (845) 735-6000
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OUTSTANDING STOCK AND VOTING RIGHTS
Only shareholders of
record at the close of business on July 7, 2016 (the "Record Date") are entitled to notice of and to vote at the Annual
Meeting. As of the Record Date, there were issued and outstanding 33,607,109 shares of the Company's common stock, par value $.01
per share ("Common Stock"), the only class of voting securities of the Company. Each share of Common Stock entitles the
holder thereof to one vote on each matter submitted to a vote at the Annual Meeting.
VOTING PROCEDURES
Directors will be elected
by a plurality of the votes cast by the holders of Common Stock in person or represented by proxy at the Annual Meeting, provided
a quorum is present at the meeting. Therefore, the nominees receiving the greatest number of votes cast at the meeting will be
elected as directors of the Company. Proposals 2 and 3 will be decided by the majority of the votes cast by the holders of the
Common Stock in person or represented by proxy at the Annual Meeting, provided a quorum is present at the meeting. A quorum will
be present at the Annual Meeting if the holders of a majority of the outstanding shares of Common Stock as of the Record Date are
present in person or represented by proxy. Votes will be counted and certified by one or more Inspectors of Election who are expected
to be employees of Continental Stock Transfer & Trust Company, the Company's transfer agent.
In accordance with
applicable law, abstentions and "broker non-votes" (i.e., proxies from brokers or nominees indicating that such persons
have not received instructions from the beneficial owners or other persons entitled to vote shares as to a matter with respect
to which the brokers or nominees do not have discretionary power to vote) will be treated as present for purposes of determining
the presence of a quorum. Based upon the requirements of the law of the State of New York and the Certificate of Incorporation
and By-laws, as amended (the "By-laws"), of the Company, "votes cast" at a meeting of shareholders by the holders
of shares entitled to vote are determinative of the outcome of each matter to be voted on. Failures to vote, broker non-votes and
abstentions will not be considered "votes cast" and will therefore have no effect on the outcome.
Proxies will be voted
in accordance with the instructions thereon. If no instructions are given, the proxies will be voted “for” the director
nominees and “for” the other proposals set forth herein and in the discretion of the indicated proxies upon such other
business as may properly come before the meeting. Proxies may be revoked as noted above.
PROPOSAL 1
ELECTION OF FOUR DIRECTORS TO THE BOARD
OF DIRECTORS
The
Company's By-laws currently provide that the Board is divided into two classes, with each class to have a term of two years (the
term of each class expiring in alternating years) and is to consist, as nearly as possible, of one-half of the number of directors
constituting the entire Board. The By-laws provide that the number of directors shall be fixed by the Board but in any event, shall
be no less than five (5) (subject to decrease by a resolution adopted by the shareholders).
At the Annual Meeting
a class of four directors will be elected to a two-year term expiring at the Annual Meeting of Shareholders to be held in 2018.
Messrs. Dominic J. Monetta, Richard Parrillo, Eric A. Prouty and Kevin J. Zugibe are the nominees for a two-year term expiring
at the Annual Meeting of the Shareholders to be held in 2018.
Messrs. Vincent P.
Abbatecola, Brian F. Coleman and Otto C. Morch will not stand for election at the Annual Meeting because their respective terms
expire at the Annual Meeting of Shareholders to be held in 2017.
Proxies will be voted
for the nominees named below, unless authority is withheld. Should any nominee not be available for election, proxies will be voted
for such substitute nominee as may be designated by the Board. Each of the nominees has indicated to the Board that he will be
available and is willing to serve.
THE BOARD OF DIRECTORS RECOMMENDS THAT
SHAREHOLDERS VOTE FOR THE ELECTION OF THE NOMINEES SPECIFIED BELOW.
The following is information
with respect to the nominees for election as directors at the Annual Meeting that each nominee for director has given us about
his age, all positions he holds, his principal occupation and his business experience for at least the past five years. In addition
to the information presented below regarding each nominee’s specific experience, qualifications, attributes and skills that
led our Board to the conclusion that he should serve as a director, we also believe that all of our directors have a reputation
for integrity, honesty and adherence to high ethical standards. They each have demonstrated business acumen and an ability to exercise
sound judgment, as well as a commitment to service to the Company and our Board.
Name
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Age
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Position
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Dominic J. Monetta
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74
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Director
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Richard Parrillo
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63
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Director
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Eric A. Prouty
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46
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Director
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Kevin J. Zugibe
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52
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Director, Chairman and Chief Executive Officer
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Dominic J. Monetta,
DPA
has been a Director of the Company since April 1996. Dr. Monetta has, since August 1993, been the President of Resource
Alternatives, Inc., a corporate development firm concentrating on resolving technically oriented managerial issues facing chief
executive officers and their senior executives. From December 1991 to May 1993, Dr. Monetta served as the Director of Defense Research
and Engineering for Research and Advanced Technology, United States Department of Defense. From June 1989 to December 1991, Dr.
Monetta served as the Director of the Office of New Production Reactors, United States Department of Energy. Dr. Monetta’s
qualifications to sit on our Board include his chemical engineering and other management experience obtained as a senior executive
for the US Departments of Energy and Defense. Dr. Monetta has 18 years of experience in the air conditioning and refrigeration
industry by virtue of his service on our Board and his experience also includes his membership on the Company’s Audit Committee
for the last 7 years and Occupational, Safety and Environmental Protection Committee for the last 13 years.
Richard Parrillo
has been a director of the Company since September 2014. Mr. Parrillo has, since 2007 been the Managing Member and principal
of Tank Wash USA, LLC, an industrial tank cleaning and inspection company. Between 2000 and 2007, Mr. Parrillo was the Managing
Member of Brite Clean, LLC. Between 1999 and 2007, Mr. Parrillo was the Managing Member of Matlack Leasing Corporation, and he
served as Vice President of Matlack Leasing Corporation, a subsidiary of Matlack Systems, Inc. from 1995 to 1999. From 1990 to
1995, Mr. Parrillo served as North American Sales Manager for Eurotainer USA, Inc. Mr. Parrillo also served as Sales/Operations
Manager for SSM Coal North America, Inc., from 1984 to 1990, and worked at Rentco Division of Fruehauf Corp. We believe that Mr.
Parrillo’s qualifications to sit on the board include his more than 27 years of business experience in the petrochemical
and related service industries, both domestically and internationally, as well as his experience in the areas of mergers, acquisitions,
management and sales, having negotiated, acquired and managed 14 related companies over the past 27 years.
Eric A. Prouty
has been a director of the Company since September 2014. Mr. Prouty has, since January 2012, been an independent consultant providing
business development consulting services and has provided such services to Hudson at various times since May 2012. From
March 2006 through November 2011, Mr. Prouty served as an equity research analyst for Canaccord Genuity, formerly known as Canaccord
Adams, a global investment banking firm. Between February 2001 and March 2006 Mr. Prouty served as an equity research analyst
for Adams Harkness. While at Adams Harkness, Mr. Prouty served on the firm’s Board of Directors from 2004 until in
early 2006 and also served as Director of Research from 2004 until 2007. Between March 2000 and February 2001, Mr. Prouty
served as an equity research analyst for the investment banking firm of Robertson Stephens. From November 1996 through March 2000,
Mr. Prouty served as an equity research analyst for the investment banking firm of First Albany. Between June 1992 and November
1996, Mr. Prouty served as an equity research associate at State Street Research and Management. We believe that Mr. Prouty’s
qualifications to sit on the board include his more than 22 years of experience as an equity research analyst in the investment
banking field.
Kevin J. Zugibe,
P.E.,
a founder of the Company, has been Chairman of the Board and Chief Executive Officer of the Company since its inception
in 1991. From May 1987 to May 1994, Mr. Zugibe was employed as a power engineer with Orange and Rockland Utilities, Inc., a major
public utility, where he was responsible for all HVAC applications. Mr. Zugibe is a licensed professional engineer, and from December
1990 to May 1994, he was a member of Kevin J. Zugibe & Associates, a professional engineering firm. We believe Mr. Zugibe’s
qualifications to sit on our Board include his 28 years of experience in the air conditioning and refrigeration industry including
as our founder, our Chairman and Chief Executive Officer for 23 years. Mr. Zugibe is the brother-in-law of Stephen P. Mandracchia.
The following is information
with respect to the directors whose terms of office expire at the Annual Meeting of Shareholders to be held in the year 2017:
Name
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Age
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Position
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Vincent P. Abbatecola
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70
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Director
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Brian F. Coleman
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54
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Director, President and Chief Operating Officer
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Otto C. Morch
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82
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Director
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Vincent P. Abbatecola
has been a Director of the Company since June 1994. Mr. Abbatecola is President of Abbey Ice & Spring Water, Spring Valley,
New York, where he has been employed since May 1971. He was formerly the Chairman of the International Packaged Ice Association
and a trustee of Nyack Hospital. Mr. Abbatecola serves on the Rockland Board of Governors, the United Hospice of Rockland Board
and the St. Thomas Aquinas College President’s Council. We believe that Mr. Abbatecola’s qualifications to sit on our
Board include his business experience obtained as President, and formerly as Vice President, of Abbey Ice and Spring Water, and
his 22 years of experience in the air conditioning and refrigeration industry by virtue of his service on our Board including as
Chairman of the Company’s Audit Committee for 20 years.
Brian F. Coleman
has been a Director of the Company since December 2007, and President and Chief Operating Officer of the Company since August 21,
2001 and served as Chief Financial Officer of the Company from May 1997 until December 2002. From June 1987 to May 1997, Mr. Coleman
was employed by, and from July 1995, was a partner with BDO USA, LLP, the Company's independent registered public accounting firm
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We believe Mr. Coleman’s qualifications to sit on our Board include his prior financial and accounting experience obtained
as a partner with BDO USA, LLP, and his 19 years of experience in the air conditioning and refrigeration industry including as
our President and Chief Operating Officer for the past 15 years.
Otto C. Morch
has been a Director of the Company since March 1996. Mr. Morch was a Senior Vice President of Commercial Banking at Provident Savings
Bank, F.A. for more than five years until his retirement in December 1997. We believe that Mr. Morch’s qualifications to
sit on our Board include his financial and other experience obtained as a Senior Vice President at Provident Savings Bank, F.A.,
his 20 years of experience in the air conditioning and refrigeration industry by virtue of his service on our Board including his
membership on the Company’s Audit Committee for 20 years.
The Board has determined
that each of Messrs. Abbatecola, Monetta, Morch and Parrillo is an “independent director” within the meaning of applicable
NASDAQ Listing Rules.
Board Meetings
A total of 9 meetings
of the Board were held during the fiscal year ended December 31, 2015 (“Fiscal 2015”). During Fiscal 2015, no director
attended fewer than 75 percent of the aggregate of (1) the Board meetings that were held, and (2) the meetings held by the committees
of the Board on which he served.
Committees of the Board of Directors
The Board has established
a Compensation Committee, which is responsible for, among other things, assisting the Board in overseeing our executive compensation
strategy and reviewing and approving the compensation of our executive officers and for the administration of the Company's employee
benefit plans. The Compensation Committee is also responsible for reviewing and approving the compensation of the Company’s
directors. The executive officers do not determine executive or director compensation, but provide information and recommendations
to the Compensation Committee upon its request. The members of the Compensation Committee are Messrs. Abbatecola, Monetta, Morch
and Parrillo. The Compensation Committee held 3 meetings during Fiscal 2015. In June 2013, the Board adopted the Hudson Technologies,
Inc. Compensation Committee Charter (the “Compensation Committee Charter”). A copy of the Compensation Committee charter
is available on the Company’s website.
The Board also
has an Audit Committee which supervises the audit and financial procedures of the Company and is responsible for the selection
of the Company’s independent registered public accountants. The members of the Audit Committee are Messrs. Abbatecola, Morch,
Monetta and Parrillo. The Board has determined that each member of the Audit Committee is an “independent director”
within the meaning of the applicable NASDAQ Listing Rules and applicable Securities and Exchange Commission (“SEC”)
rules under the Securities Exchange Act of 1934 (the “Exchange Act”). The Audit Committee does not have a member that
qualifies as a “financial expert” under the federal securities laws. The members of the Audit Committee have each been
active in the business community and have broad and diverse backgrounds, and financial experience. Two of the current members have
served on the Company’s Audit Committee and have overseen the financial review by the Company’s independent auditors
for more than 13 years. The Company believes that the current members of the Audit Committee are able to fully and faithfully perform
the functions of the Audit Committee and that the Company does not need to install a “financial expert” on the Audit
Committee. The Audit Committee held 5 meetings during Fiscal 2015. A copy of the Audit Committee charter is available on the Company’s
website.
The Board also has
an Executive Committee which is authorized to exercise the powers of the Board in the general supervision and control of the business
affairs of the Company during the intervals between meetings of the Board. The members of the Executive Committee are Messrs. Abbatecola,
Morch, Prouty and Zugibe.
The Board also has
an Occupational, Safety and Environmental Protection Committee, which is responsible for satisfying the Board that the Company's
Environmental, Health and Safety policies, plans and procedures are adequate. The members of the Occupational, Safety and Environmental
Protection Committee are Messrs. Monetta and Zugibe.
The Board has a Nominating
Committee whose members consist of Messrs. Abbatecola, Monetta and Zugibe, and which was responsible for recommending to the independent
directors the nominees for election to the Board at the annual meeting of the shareholders. In accordance with applicable NASDAQ
Listing Rules, the nominees for director at the Annual Meeting named above were selected as nominees to the Board by vote of a
majority of the independent directors. When reviewing candidates to our Board, the Nominating Committee and the independent members
of the Board consider the evolving needs of the Board and seek candidates that fill any current or anticipated future needs. The
Nominating Committee and the independent Board members also believe that all directors should possess the attributes described
below in the last paragraph under the caption “Consideration of Director Nominees Recommended by Shareholders.” While
neither the Nominating Committee nor the Board has a formal policy with respect to diversity, the Nominating Committee and the
Board believe that it is important that the Board members represent diverse viewpoints. In considering candidates for the Board,
the Nominating Committee and the independent members of the Board consider the entirety of each candidate’s credentials in
the context of these standards. With respect to the nomination of continuing directors for re-election, the individual’s
contributions to the Board are also considered.
Shareholder nominations
for directors of the Company will be considered by the independent directors subject to the shareholder complying with the procedures
described below. The Nominating Committee held one meeting during Fiscal 2015. The Nominating Committee does not have a charter.
Board Leadership Structure
The Board believes
our current leadership structure, where our Chief Executive Officer also serves as our Chairman of the Board, provides us with
the most effective leadership model by enhancing the Chairman and Chief Executive Officer’s ability to provide insight and
direction of business strategies and plans to both the Board and our management. The Board believes that a single person, acting
in the capacities of Chairman and Chief Executive Officer, provides us with unified leadership and focus and that our business
strategies are best served if the Chairman is also a member of our management team. We do not have a lead independent director;
however, our Audit Committee and our Compensation Committee are comprised solely of independent directors and our Nominating Committee
is comprised of a majority of independent directors. We believe the composition of these three Board committees, the fact that
our independent directors determine Board nominees and the compensation of our executive officers, as well as the practice of our
independent directors to meet in executive session without our Chief Executive Officer and the other members of our management
present, help ensure that our Board maintains a level of independent oversight of management that is appropriate for our Company.
Risk Management
The Board has an active
role, as a whole and also at the committee level, in overseeing management of the Company’s risks. The Board regularly reviews
information regarding the Company’s credit, liquidity and operations, as well as the risks associated with each. The Company’s
Compensation Committee is responsible for overseeing the management of risks relating to the Company’s executive compensation
plans and arrangements. The Audit Committee oversees management of financial risks and potential conflicts of interest with related
parties. The Nominating Committee manages risks associated with the independence of the Board. While each committee is responsible
for evaluating certain risks and overseeing the management of such risks, the entire Board is regularly informed through committee
reports, or otherwise, about such risks.
Audit Committee Report
In December 2015,
the Audit Committee met with management to review and discuss the audit and the procedures and timing of the audit. In
February 2016, the Audit Committee met with management to review and discuss the audited financial statements. The Audit
Committee also discussed with the Company’s independent registered public accounting firm, BDO USA, LLP the matters
required to be discussed by Public Accounting Oversight Board Standard No. 16. The Audit Committee has received the written
disclosures and confirming letter from BDO USA, LLP required by the applicable requirements of the Public Accounting
Oversight Board regarding its independence and has discussed with BDO USA, LLP its independence from the Company. Based upon
the review and discussions referred to above, the Audit Committee ratified its prior recommendation to the Board that the
audited financial statements be included in the Company’s Annual Report on Form 10-K for the year ended December 31,
2015.
The Audit Committee-
Vincent Abbatecola, Otto
Morch, Dominic Monetta and Richard Parrillo.
Code of Conduct and Ethics
The Company has adopted
a written code of conduct and ethics that applies to all directors, and employees, including the Company's principal executive
officer, principal financial officer, principal accounting officer or controller and any persons performing similar functions.
The Company will provide a copy of its code of conduct and ethics to any person without charge upon written request addressed
to Hudson Technologies, Inc., PO Box 1541, One Blue Hill Plaza, Pearl River, New York 10965, Attention: Stephen P. Mandracchia.
Executive Officers
In addition to Kevin
J. Zugibe and Brian Coleman, Messrs. James R. Buscemi, Charles F. Harkins, Jr. and Stephen P. Mandracchia serve as executive officers
of the Company. Executive officers are elected annually and serve at the pleasure of the Board. The following is information with
respect to such executive officers:
James R. Buscemi,
age 63
,
served as Chief Financial Officer of the Company from December 2002 through June 2016, and prior to that time
served as Corporate Controller since joining the Company in 1998. Prior to joining the Company, Mr. Buscemi held various financial
positions within Avnet, Inc., including Chief Financial Officer of Avnet's electric motors and component part subsidiary, Brownell
Electro, Inc. Effective July 1, 2016 Mr. Buscemi stepped down as Chief Financial Officer and will remain with the Company for a
transition period prior to his planned retirement at the end of September 2016.
Charles F. Harkins,
Jr.,
age 54,
has been Vice President of Sales of the Company since December 2003. Mr. Harkins has served in a variety
of capacities since joining the Company in 1992. Prior to joining the Company, Mr. Harkins served in the U.S. Army for 13 years
attaining the rank of Staff Sergeant; he is a graduate of the U.S. Army Engineering School and the U.S. Army Chemical School.
Stephen P. Mandracchia
,
age 56, a founder of the Company, has been Vice President Legal and Regulatory of the Company since August 2003 and has been Secretary
of the Company since 1995. Mr. Mandracchia has served in a variety of capacities with the Company since 1993. Mr. Mandracchia was
a member of the law firm of Martin, Vandewalle, Donohue, Mandracchia & McGahan in Great Neck, New York until 1995 (having been
associated with such firm since 1983). Mr. Mandracchia is the brother-in-law of Mr. Zugibe.
COMMUNICATIONS WITH THE BOARD
The Board has established
a process for shareholders to send communications to the Board. Shareholders may communicate with the Board individually or as
a group by writing to: The Board of Directors of Hudson Technologies, Inc. c/o Corporate Secretary, PO Box 1541, One Blue Hill
Plaza, Pearl River, NY 10965. Shareholders should identify their communication as being from a shareholder of the Company. The
Corporate Secretary may require reasonable evidence that the communication or other submission is made by a shareholder of the
Company before transmitting the communication to the Board.
BOARD ATTENDANCE AT ANNUAL SHAREHOLDER
MEETINGS
We have a policy that
strongly encourages directors to attend our Annual Meeting of Shareholders. Last year’s Annual Meeting of Shareholders was
attended by all of our seven directors.
CONSIDERATION OF DIRECTOR NOMINEES RECOMMENDED
BY SHAREHOLDERS
Shareholders of Hudson
wishing to recommend director candidates to the Board must submit their recommendations in writing to the Chairman of the Board,
c/o Corporate Secretary, Hudson Technologies, Inc., PO Box 1541, One Blue Hill Plaza, Pearl River, NY 10965.
The independent directors
of the Board will consider nominees recommended by Hudson’s shareholders provided that the recommendation contains sufficient
information for the independent directors to assess the suitability of the candidate, including the candidate’s qualifications.
Candidates recommended by shareholders that comply with these procedures will be considered either solely by Hudson’s independent
directors, or by a nominating committee of the Board that is comprised solely of Hudson’s independent directors, if such
committee exists at the time. The recommendations must also state the name of the shareholder who is submitting the recommendation.
In addition, it must include information regarding the recommended candidate relevant to a determination of whether the recommended
candidate would be barred from being considered independent under applicable NASDAQ Listing Rules. Each nomination is also required
to set forth: (i) a representation that the shareholder making the nomination is a holder of record of capital stock of Hudson
entitled to vote at such meeting; (ii) a representation as to the beneficial interest of the shareholder making the nomination
including, without limitation, any derivative securities holdings, short interests, hedges and any agreements that increase or
decrease such shareholder’s voting power; (iii) all stock ownership information with respect to any shareholder or shareholder
group with whom the shareholder making the nomination is associated, whether or not such persons constitute a filing group for
purposes of Schedule 13D; (iv) whether the shareholder making the nomination intends individually or as part of a group, to deliver
a proxy statement and/or form of proxy to holders of at least the percentage of Hudson’s outstanding capital stock required
to approve or adopt the proposal, and/or to otherwise solicit proxies in support of such proposal; (v) a description of all direct
and indirect compensation and other material monetary agreements, arrangements and understandings during the past three years,
and any other material relationships, between or among such shareholder and beneficial owner, if any, and their respective affiliates
and associates, or others acting in concert therewith, on the one hand, and each proposed nominee, and his or her respective affiliates
and associates, or others acting in concert therewith, on the other hand, including, without limitation, all information that would
be required to be disclosed pursuant to Rule 404 promulgated under Regulation S-K if the shareholder making the nomination and
any beneficial owner on whose behalf the nomination is made, if any, or any affiliate or associate thereof or person acting in
concert therewith, were the “registrant” for purposes of such rule and the nominee were a director or executive officer
of such registrant; (vi) such other information regarding each nominee proposed by such shareholder as would be required to be
included in a proxy statement filed pursuant to the proxy rules of the SEC had the nominee been nominated by the Board; and (vii)
the consent of each nominee to serve as a director of Hudson if so elected. A nomination which does not comply with the above requirements
or that is not received by the deadline referred to below will not be considered. All shareholder recommendations will be reviewed
in the same manner as other potential candidates for board membership.
The qualities and skills
sought in prospective members of the Board are determined by the Board. The Board generally requires that director candidates be
qualified individuals who, if added to the Board, would provide the mix of director characteristics, experience, perspectives and
skills appropriate for Hudson. Criteria to be considered for selection of candidates will include, but not be limited to: (i) business
and financial acumen, as determined by the Board in its discretion, (ii) qualities reflecting a proven record of accomplishment
and ability to work with others, (iii) knowledge of Hudson’s industry, (iv) relevant experience and knowledge of corporate
governance practices, and (v) expertise in an area relevant to Hudson. Such persons should not have commitments that would materially
conflict with the time commitments of a Director of Hudson.
DEADLINE AND PROCEDURES FOR SUBMITTING
BOARD NOMINATIONS
A shareholder wishing
to nominate a candidate for election to the Board at the Annual Meeting of Shareholders to be held in 2017, which we currently
anticipate will be held in or about August 2017, is required to give written notice containing the required information specified
above and otherwise in accordance with our By-Laws, addressed to the Independent Directors of the Board, c/o Secretary of the Company,
Hudson Technologies, Inc., PO Box 1541, One Blue Hill Plaza, Pearl River, NY 10965, of his or her intention to make such a nomination.
The notice of nomination and other required information must be received by the Company’s Secretary no earlier than April
26, 2017 and no later than May 26, 2017. In the event that the Annual Meeting of Shareholders to be held in 2017 is held either
before July 24, 2017 or after October 23, 2017, then the notice of nomination and other required information must be received by
the Company’s Secretary no later than 90 days prior to the date of such meeting or, within 10 days following the first public
pronouncement of the date of such annual meeting if such public announcement is made less than 100 days prior to the date of such
meeting.
In addition, to be
timely, a shareholder’s notice must be updated and supplemented, if necessary, so that the information provided or required
to be provided in such notice will be true and correct as of the record date for the 2017 Annual Meeting and as of the date that
is 10 business days prior to such meeting or any adjournment or postponement thereof, and such update and supplement must be delivered
to, or mailed and received by, the Chairman of the Board of Directors at the principal executive offices of the Company not later
than 5 business days after the record date for the meeting (in the case of the update and supplement required to be made as of
the record date), and not later than 8 business days prior to the date for the meeting, or if the meeting is adjourned or postponed,
on the first practicable date after any adjournment or postponement thereof (in the case of the update and supplement required
to be made as of 10 business days prior to the meeting or any adjournment or postponement thereof).
Section 16(a) Beneficial Ownership Reporting
Compliance
Section 16(a) of the
Exchange Act requires the Company's officers and directors and persons who own more than 10% of a registered class of the Company's
equity securities (collectively, the "Reporting Persons") to file reports of ownership and changes in ownership with
the SEC. Reporting Persons are required by SEC regulations to furnish the Company with copies of all Section 16(a) forms they file.
Based solely on Hudson’s
review of copies of such forms received by Hudson, and on representations made to us, we believe that during the year ended December
31, 2015, all filing requirements applicable to all officers, directors and greater than 10% beneficial shareholders were timely
complied with.
EXECUTIVE COMPENSATION
The following table discloses, for the
years indicated, the compensation for our Chief Executive Officer and for our two most highly compensated executive officers, other
than the Chief Executive Officer, who were serving as executive officers at the end of the year ended December 31, 2015 and whose
total compensation during the year ended December 31, 2015 exceeded $100,000 (the “Named Executives”).
SUMMARY
COMPENSATION TABLE
Name and Principal Position
|
|
Year
|
|
|
Salary
($)
|
|
|
Stock Awards
($)
|
|
|
Option
Awards
($) (1)
|
|
|
Non-Equity
Incentive Plan
Compensation
($) (2)
|
|
|
All Other
Compensation
($) (3)
|
|
|
Total
($)
|
|
Kevin J. Zugibe, Chairman,
|
|
|
2015
|
|
|
$
|
384,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
260,000
|
|
|
$
|
0
|
|
|
$
|
644,000
|
|
Chief Executive Officer (4)
|
|
|
2014
|
|
|
$
|
288,500
|
|
|
$
|
0
|
|
|
$
|
189,556
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
478,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brian F. Coleman, President,
|
|
|
2015
|
|
|
$
|
250,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
195,000
|
|
|
$
|
9,600
|
|
|
$
|
454,600
|
|
Chief Operating Officer (4)
|
|
|
2014
|
|
|
$
|
212,500
|
|
|
$
|
0
|
|
|
$
|
136,000
|
|
|
$
|
0
|
|
|
$
|
9,623
|
|
|
$
|
358,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charles F. Harkins, Jr., Vice
|
|
|
2015
|
|
|
$
|
213,500
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
175,000
|
|
|
$
|
8,400
|
|
|
$
|
396,900
|
|
President Sales
|
|
|
2014
|
|
|
$
|
191,000
|
|
|
$
|
0
|
|
|
$
|
108,800
|
|
|
$
|
0
|
|
|
$
|
8,371
|
|
|
$
|
308,171
|
|
(1) We utilize the grant date fair value using the Black-Scholes
method as described in Note 10 to the Notes to the Consolidated Financial Statements contained in our Annual Report on Form 10-K
for the year ended December 31, 2015.
(2) Amount was earned in 2015 and paid in 2016.
(3) Represents payments of annual premiums for long term care
insurance purchased for the benefit of the executive officers and, where applicable, the executive officer’s spouse.
(4) Messrs. Coleman and Zugibe did not receive any additional
compensation for services as a director during the years ended December 31, 2015 and 2014.
Narrative Disclosure to Summary Compensation
Table
Employment, Termination, Change of Control and other Agreements
Kevin J. Zugibe.
In March, 2016
we entered into a Second Amended and Restated Employment Agreement with Kevin J. Zugibe, which currently expires in March 2018
and is automatically renewable for successive two year terms unless either party gives notice of termination at least ninety days
prior to the expiration date of the then current term. Pursuant to the agreement, Mr. Zugibe is receiving an annual base salary
of $384,000 with such increases and bonuses as our Board of Directors may determine. The agreement provides, in the event of Mr.
Zugibe's disability, for the continuation of at least 75% of Mr. Zugibe's salary for up to one hundred twenty days after the commencement
of his disability. Mr. Zugibe is also entitled to take up to five weeks of vacation, excluding paid holidays.
As part of the agreement, Mr. Zugibe has
agreed to certain covenants and restrictions, which include an agreement that Mr. Zugibe will not compete with us in the United
States for a period of twenty-four months after his termination for any reason. The agreement also provides that, in the event
of his involuntary separation from Hudson without cause, or in the event of his voluntary separation for a good reason as enumerated
in the agreement, Mr. Zugibe will receive severance payments, in the form of the continuation of his annual base salary and benefits
for a period of twenty-four months, and payment over a twenty four month period of an amount equivalent to 100% of the highest
bonus paid to Mr. Zugibe in the three years prior to his termination. The agreement also provides that in the event of his involuntary
separation from Hudson without cause, or in the event of his voluntary separation for a good reason as enumerated in the agreement,
we will assign to Mr. Zugibe any life insurance policy we hold insuring the life of Mr. Zugibe. We are the beneficiary of a “key-man”
insurance policy on the life of Mr. Zugibe in the amount of $1,000,000.
Brian F. Coleman.
In March 2016,
we entered into an agreement with Brian F. Coleman, pursuant to which, Mr. Coleman has agreed to certain covenants and restrictions,
which include an agreement that Mr. Coleman will not compete with us in the United States for a period of eighteen months after
his termination for any reason. The agreement provides, in the event of his disability, for the continuation of at least 75% of
his salary for up to one hundred twenty days after the commencement of his disability. The agreement also provides that, in the
event of his involuntary separation without cause, or in the event of his voluntary separation for a good reason as enumerated
in the agreement, Mr. Coleman will receive severance payments, in the form of the continuation of his annual base salary and benefits
for a period of eighteen months, and payment over an eighteen month period of an amount equivalent to 100% of the highest bonus
paid to Mr. Coleman in the three years prior to his termination.
Charles F. Harkins
. On October 10,
2006, we entered into an agreement with Charles F. Harkins, pursuant to which, as amended and supplemented, Mr. Harkins has agreed
to certain covenants and restrictions, which include an agreement that Mr. Harkins will not compete with us in the United States
for a period of eighteen months after his termination for any reason. The agreement provides, in the event of his disability, for
the continuation of at least 75% of his salary for up to one hundred twenty days after the commencement of his disability. The
agreement also provides that in the event of his involuntary separation without cause, or in the event of his voluntary separation
for a good reason as enumerated in the agreement, Mr. Harkins will receive severance payments, in the form of the continuation
of his annual base salary and benefits for a period of eighteen months, and a lump sum payment equivalent to the highest bonus
paid to him in the three years prior to his termination, pro-rated to the date of his termination.
In December 2015, the Company established
an annual bonus program for the payment of cash and/or equity awards to some or all of the executive officers based upon the Company’s
annual earnings and potentially other financial and personal metrics. The amount of the aggregate pool to be established each year
will be determined by the Independent Board Members on or about the end of each fiscal year, commencing with fiscal year 2015,
based upon the Company achieving earnings in excess of a pre-determined level for each fiscal year (the “Benchmark”).
In the event the Company’s earnings exceed the Benchmark for the applicable fiscal year, some or all of the executive officers
may receive bonuses in the form of cash, stock options, stock or some combination thereof. The independent members of the Board
of Directors will determine the amount, if any, of the awards to be received by the Chief Executive Officer (“CEO”)
and the President/Chief Operating Officer (“COO”) and whether the awards will be made in cash, stock options or stock,
or some combination thereof, which determination will be made, based upon the overall financial results of the Company during the
applicable fiscal year as well as on the personal performance of the CEO and COO during the applicable fiscal year. The CEO and
the COO will determine the amount, if any, of the awards to be received to all other executive officers, and whether the awards
will be made in cash, stock options or stock, or some combination thereof, which determination will be made based upon the overall
financial results of the Company during the applicable fiscal year as well as on the personal performance of each of the executive
officers during the applicable fiscal year.
For fiscal year 2015, the Independent Board Members determined
that the 2015 Benchmark had been achieved and established a bonus pool not to exceed $900,000 for the award of cash bonuses to
the Executive Officers in accordance with the Company’s annual bonus program, which bonuses were paid to the Executive Officers
in the first quarter of 2016.
Stock Option Grants or Stock Awards
The following table discloses the outstanding option awards
held by the Named Executives as of December 31, 2015. All outstanding grants to the Named Executives are fully vested. No stock
awards have been issued to the Named Executives.
OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
|
|
|
|
|
|
|
|
|
Name
|
|
Number of Securities
Underlying Unexercised
Options
(#)
Exercisable
|
|
|
Option
Exercise
Price
($)
|
|
|
Option Expiration
Date
|
Kevin J. Zugibe,
Chairman, Chief Executive Officer
|
|
|
|
35,000
|
|
|
$
|
1.40
|
|
|
3/31/2016
|
|
|
|
9,300
|
|
|
$
|
1.02
|
|
|
10/10/2016
|
|
|
|
28,145
|
|
|
$
|
3.55
|
|
|
10/1/2017
|
|
|
|
251,855
|
|
|
$
|
3.23
|
|
|
10/1/2017
|
|
|
|
195,000
|
|
|
$
|
0.85
|
|
|
11/20/2017
|
|
|
|
78,000
|
|
|
$
|
1.26
|
|
|
12/17/2019
|
Brian F. Coleman,
President, Chief Operating Officer
|
|
|
|
32,500
|
|
|
$
|
1.40
|
|
|
3/31/2016
|
|
|
|
8,100
|
|
|
$
|
1.02
|
|
|
10/10/2016
|
|
|
|
30,960
|
|
|
$
|
3.23
|
|
|
10/1/2017
|
|
|
|
169,040
|
|
|
$
|
3.23
|
|
|
10/1/2017
|
|
|
|
180,000
|
|
|
$
|
0.85
|
|
|
11/20/2017
|
|
|
|
75,000
|
|
|
$
|
1.26
|
|
|
12/17/2019
|
Charles F. Harkins, Jr.,
Vice President Sales
|
|
|
|
30,960
|
|
|
$
|
3.23
|
|
|
10/1/2017
|
|
|
|
129,040
|
|
|
$
|
3.23
|
|
|
10/1/2017
|
The following table shows information with
respect to all stock options exercised by the Named Executives during 2015. There were no vesting stock grants for the Named Executives
during 2015.
OPTION EXERCISES AND STOCK VESTED
Name
|
|
Date of Grant of
Exercised Options
|
|
Number of Shares
purchased upon
Exercise of Options
|
|
|
Date of
Exercise
|
|
Exercise Price
|
|
|
|
|
|
|
|
|
|
|
|
|
Kevin J. Zugibe, Chairman,
|
|
|
|
|
|
|
|
|
|
|
|
|
Chief Executive Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7/8/05
|
|
|
18,750
|
|
|
5/8/15
|
|
$
|
0.83
|
|
|
|
9/30/05
|
|
|
18,750
|
|
|
5/8/15
|
|
$
|
2.15
|
|
|
|
12/29/05
|
|
|
123,750
|
|
|
12/9/15
|
|
$
|
1.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brian F. Coleman, President
|
|
|
|
|
|
|
|
|
|
|
|
|
Chief Operating Officer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7/8/05
|
|
|
12,500
|
|
|
3/16/15
|
|
$
|
0.83
|
|
|
|
9/30/05
|
|
|
12,500
|
|
|
3/16/15
|
|
$
|
2.15
|
|
|
|
12/29/05
|
|
|
12,500
|
|
|
3/16/15
|
|
$
|
1.76
|
|
|
|
12/29/05
|
|
|
67,300
|
|
|
9/8/15
|
|
$
|
1.76
|
|
|
|
12/29/05
|
|
|
2,700
|
|
|
12/16/15
|
|
$
|
1.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charles F. Harkins, Jr.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12/29/05
|
|
|
50,016
|
|
|
5/4/15
|
|
$
|
1.76
|
|
|
|
3/31/06
|
|
|
23,125
|
|
|
5/4/15
|
|
$
|
1.40
|
|
Stock Option Plans
1997 Stock Option Plan
We adopted the 1997 Stock Option Plan (the
“1997 Plan”) effective June 11, 1997 pursuant to which 2,000,000 shares of our common stock were reserved for issuance
upon the exercise of options designated as either (i) ISOs under the Code, or (ii) nonqualified options. ISOs could be granted
under the 1997 Plan to our employees and officers. Non-qualified options could be granted to consultants, directors (whether or
not they are employees), our employees or officers. Stock appreciation rights could also be issued in tandem with stock options.
Effective June 11, 2007 our ability to grant options under the 1997 Plan expired.
As of December 31, 2015, we had options
to purchase 17,400 shares of our common stock outstanding under the 1997 Plan.
2004 Stock Incentive Plan
We have adopted the 2004 Stock Incentive
Plan (the “2004 Plan”), pursuant to which 2,500,000 shares of our common stock were reserved for issuance upon the
exercise of options, designated as either (i) ISOs, under the Code or (ii) non-qualified options, or for issuance upon the granting
of restricted stock, deferred stock or other stock-based awards. ISOs could be granted under the 2004 Plan to employees and officers
of Hudson. Non-qualified options, restricted stock, deferred stock or other stock-based awards could be granted to consultants,
directors (whether or not they are employees), employees or officers of Hudson. Stock appreciation rights could also be issued
in tandem with stock options. The ability to grant options or other awards under the 2004 Plan expired on September 10, 2014.
As of December 31, 2015, we had options
outstanding to purchase 1,108,486 shares of common stock under the 2004 Plan.
2008 Stock Incentive Plan
We have adopted the 2008 Stock Incentive
Plan (the “2008 Plan”), pursuant to which 3,000,000 shares of our common stock are currently reserved for issuance
upon the exercise of options, designated as either (i) ISOs, under the Code or (ii) non-qualified options, or for issuance upon
the granting of restricted stock, deferred stock or other stock-based awards. ISOs may be granted under the 2008 Plan to employees
and officers of Hudson. Non-qualified options, restricted stock, deferred stock or other stock-based awards may be granted to consultants,
directors (whether or not they are employees), employees or officers of Hudson. Stock appreciation rights may also be issued in
tandem with stock options.
The 2008 Plan is intended to qualify under
Rule 16b-3 under the Exchange Act and is administered by our Compensation Committee of the Board of Directors. The Committee, within
the limitations of the 2008 Plan, determines the persons to whom options will be granted, the number of shares to be covered by
each option, whether the options granted are intended to be ISOs, the duration and rate of exercise of each option, the exercise
price per share and the manner of exercise and the time, manner and form of payment upon exercise of an option. In the case of
restricted stock, deferred stock or other stock-based awards, the Committee, within the limitations of the 2008 Plan, determines
the persons to whom awards will be granted, the number of shares of stock subject to the award, and the restrictions on issuance
and transfer of such shares. Unless the 2008 Plan is sooner terminated, the ability to grant options or other awards under the
2008 Plan will expire on June 19, 2018.
ISOs granted under the 2008 Plan may not
be granted at a price less than the fair market value of our common stock on the date of grant (or 110% of fair market value in
the case of ISO’s granted to a 10% shareholder). In the case of ISOs, the aggregate fair market value of shares for which
ISOs granted to any employee are exercisable for the first time by such employee during any calendar year (under all of our stock
option plans) may not exceed $100,000. Non-qualified options granted under the 2008 Plan may not be granted at a price less than
the fair market value of our common stock. Options granted under the 2008 Plan will expire not more than ten years from the date
of grant (five years in the case of ISOs granted to a 10% shareholder). Except as otherwise provided by the Committee with respect
to non-qualified options, all options, restricted stock, deferred stock or other stock-based awards granted under the 2008 Plan
are not transferable during a grantee’s lifetime but are transferable at death by will or by the laws of descent and distribution.
In general, upon termination of employment of a grantee, all options, restricted stock, deferred stock or other stock-based awards
granted to such person which are not exercisable on the date of such termination immediately terminate, and any options that are
exercisable terminate 90 days following termination of employment.
As of December 31, 2015, we had options
outstanding to purchase 1,507,703 shares of common stock and 1,439,023 shares are reserved for future issuances under the 2008
Plan.
2014 Stock Incentive Plan
We have adopted the 2014 Stock Incentive
Plan (the “2014 Plan”), pursuant to which 3,000,000 shares of our common stock are currently reserved for issuance
upon the exercise of options, designated as either (i) ISOs, under the Code or (ii) non-qualified options, or for issuance upon
the granting of restricted stock, deferred stock or other stock-based awards. ISOs may be granted under the 2014 Plan to employees
and officers of Hudson. Non-qualified options, restricted stock, deferred stock or other stock-based awards may be granted to consultants,
directors (whether or not they are employees), employees or officers of Hudson. Stock appreciation rights may also be issued in
tandem with stock options.
The 2014 Plan is intended to qualify under
Rule 16b-3 under the Exchange Act and is administered by our Compensation Committee of the Board of Directors. The Committee, within
the limitations of the 2014 Plan, determines the persons to whom options will be granted, the number of shares to be covered by
each option, whether the options granted are intended to be ISOs, the duration and rate of exercise of each option, the exercise
price per share and the manner of exercise and the time, manner and form of payment upon exercise of an option. In the case of
restricted stock, deferred stock or other stock-based awards, the Committee, within the limitations of the 2014 Plan, determines
the persons to whom awards will be granted, the number of shares of stock subject to the award, and the restrictions on issuance
and transfer of such shares. Unless the 2014 Plan is sooner terminated, the ability to grant options or other awards under the
2014 Plan will expire on September 17, 2024.
ISOs granted under the 2014 Plan may not
be granted at a price less than the fair market value of our common stock on the date of grant (or 110% of fair market value in
the case of ISO’s granted to a 10% shareholder). In the case of ISOs, the aggregate fair market value of shares for which
ISOs granted to any employee are exercisable for the first time by such employee during any calendar year (under all of our stock
option plans) may not exceed $100,000. Non-qualified options granted under the 2014 Plan may not be granted at a price less than
the fair market value of our common stock. Options granted under the 2014 Plan will expire not more than ten years from the date
of grant (five years in the case of ISOs granted to a 10% shareholder). Except as otherwise provided by the Committee with respect
to non-qualified options, all options, restricted stock, deferred stock or other stock-based awards granted under the 2014 Plan
are not transferable during a grantee’s lifetime but are transferable at death by will or by the laws of descent and distribution.
In general, upon termination of employment of a grantee, all options, restricted stock, deferred stock or other stock-based awards
granted to such person which are not exercisable on the date of such termination immediately terminate, and any options that are
exercisable terminate 90 days following termination of employment.
As of December 31, 2015, no options have
been issued under the 2014 Plan and 3,000,000 shares are reserved for future issuances under the 2014 Plan.
Director Compensation
Effective January 1, 2015 non-employee
directors receive an annual fee of $40,000 per year, to be paid in a combination of cash and equity compensation in the form of
stock options or stock grants provided that no more than $30,000 will be paid in the form of cash. An additional $5,000 per year
is paid to non-employee directors serving as the chairman of the Company’s Audit, Compensation and Safety and Environmental
Protection Committees. Non-employee directors also receive reimbursement for out-of-pocket expenses incurred for attendance at
meetings of the Board of Directors and Board committee meetings. In 2015 Messrs. Abbatecola, Monetta and Morch each received a
total annual fee of $45,000 plus reimbursement for out-of-pocket expenses incurred for attendance at meetings of the Board of Directors
and Board committee meetings, and Messrs. Parrillo and Prouty each received a total annual fee of $40,000 plus reimbursement for
out-of-pocket expenses incurred for attendance at meetings of the Board of Directors and Board committee meetings. The following
table discloses the compensation of the non-employee directors who served as our directors during the year ended December 31, 2015.
DIRECTOR COMPENSATION
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|
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|
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|
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Nonqualified
|
|
|
|
|
|
|
|
|
|
Fees earned
|
|
|
|
|
|
Option
|
|
|
Non-Equity
|
|
|
Deferred
|
|
|
|
|
|
|
|
|
|
or paid in
|
|
|
Stock
|
|
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Awards
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|
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Incentive Plan
|
|
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Compensation
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All Other
|
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|
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Name
|
|
cash
|
|
|
Awards
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(1)
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|
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Compensation
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|
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Earnings
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Compensation
|
|
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Total
|
|
Vincent P. Abbatecola (2)
|
|
$
|
25,000
|
|
|
$
|
10,000
|
|
|
$
|
10,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
45,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dominic J. Monetta (2)
|
|
$
|
35,000
|
|
|
$
|
0
|
|
|
$
|
10,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
45,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Otto C. Morch (2)
|
|
$
|
25,000
|
|
|
$
|
0
|
|
|
$
|
20,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
45,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Richard Parrillo (2)
|
|
$
|
20,000
|
|
|
$
|
0
|
|
|
$
|
20,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
40,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Eric A. Prouty (2)
|
|
$
|
20,000
|
|
|
$
|
20,000
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
0
|
|
|
$
|
48,000
|
(3)
|
|
$
|
88,000
|
|
(1) We utilize the grant date fair value
using the Black-Scholes method as described in Note 9 to the Notes to the Consolidated Financial Statements contained in our Annual
Report on Form 10-K for the year ended December 31, 2015.
(2) As of December 31, 2015, Mr. Abbatecola
has options to purchase 177,083 shares of common stock outstanding, Mr. Morch has options to purchase 151,168 shares of common
stock outstanding, Dr. Monetta has options to purchase 137,083 shares of common stock outstanding, Mr. Parrillo has options to
purchase 54,769 shares of common stock outstanding, and Mr. Prouty has options to purchase 26,600 shares of common stock outstanding.
(3) Consists of consulting fees paid to
Mr. Prouty.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT
The following table
sets forth information as of the Record Date based on information obtained from the persons named below, with respect to the beneficial
ownership of our Common Stock by (i) each person known by us to be the beneficial owner of more than 5% of our outstanding Common
Stock, (ii) the Named Executive Officers, (iii) each of our directors and (iv) all of our directors and executive officers as a
group:
BENEFICIAL OWNERSHIP TABLE
Name of Beneficial Owner
|
|
Amount and Nature of
Beneficial Ownership
(1)
|
|
|
Percent of Class
|
|
|
|
|
|
|
|
|
|
|
Kevin J. Zugibe
|
|
|
4,589,793
|
(2)
|
|
|
13.4
|
%
|
|
|
|
|
|
|
|
|
|
Brian F. Coleman
|
|
|
955,767
|
(3)
|
|
|
2.8
|
%
|
|
|
|
|
|
|
|
|
|
Charles F. Harkins
|
|
|
160,000
|
(4)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
James R. Buscemi
|
|
|
360,525
|
(5)
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
Stephen P. Mandracchia
|
|
|
1,804,661
|
(6)
|
|
|
5.3
|
%
|
|
|
|
|
|
|
|
|
|
Vincent P. Abbatecola
|
|
|
234,447
|
(7)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Dominic J. Monetta
|
|
|
241,433
|
(8)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Otto C. Morch
|
|
|
192,571
|
(9)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Richard Parrillo
|
|
|
154,769
|
(10)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Eric A. Prouty
|
|
|
53,157
|
(11)
|
|
|
*
|
|
|
|
|
|
|
|
|
|
|
William Blair Investment Management L.P.
|
|
|
3,369,429
|
(12)
|
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
|
Heartland Advisors, Inc.
|
|
|
2,500,000
|
(13)
|
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
|
Northern Rights Capital Management L.P.
|
|
|
2,044,082
|
(14)
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
Perritt Capital Management, Inc.
|
|
|
1,682,750
|
(15)
|
|
|
5.0
|
%
|
|
|
|
|
|
|
|
|
|
All directors and executive officers as a group (Ten Persons)
|
|
|
8,747,123
|
(16)
|
|
|
24.4
|
%
|
* = Less than 1%
(1) A person is deemed to be the beneficial
owner of securities that can be acquired by such person within 60 days from July 7, 2016. Each beneficial owner's percentage ownership
is determined by assuming that options and warrants that are held by such person (but not held by any other person) and which are
exercisable within 60 days from July 7, 2016 have been exercised. Unless otherwise noted, Hudson believes that all persons named
in the table have sole voting and investment power with respect to all shares of our common stock beneficially owned by them. The
address for each beneficial owner, unless otherwise noted, is c/o Hudson Technologies, Inc. at: PO Box 1541, One Blue Hill Plaza,
Pearl River, New York 10965.
(2) Includes (i) 9,300 shares which may
be purchased at $1.02 per share; (ii) 195,000 shares that may be purchased at $0.85 per share; (iii) 78,000 shares which may be
purchased at $1.26 per share; (iv) 28,145 shares that may be purchased at $3.55 per share; and (v) 251,855 shares that may be purchased
at $3.23 per share, under immediately exercisable options.
(3) Includes (i) 8,100 shares which may
be purchased at $1.02 per share; (ii) 180,000 shares which may be purchased at $0.85 per share; (iii) 75,000 shares which may be
purchased at $1.26 per share; (iv) 30,960 shares that may be purchased at $3.23 per share; and (v) 169,040 shares that may be purchased
at $3.23 per share, under immediately exercisable options.
(4) Consists of (i) 30,960 shares that
may be purchased at $3.23 per share; and (ii) 129,040 shares that may be purchased at $3.23 per share, under immediately exercisable
options.
(5) Includes (i) 100,000 shares that may
be purchased at $0.85 per share; and (ii) 48,000 shares which may be purchased at $1.26 per share; (iii) 30,960 shares that may
be purchased at $3.23 per share; and (iv) 74,040 shares that may be purchased at $3.23 per share, under immediately exercisable
options.
(6) Includes (i) 1,080,661 shares held
of record in the name of Mr. Mandracchia’s wife, Theresa Mandracchia, over which Mr. Mandracchia has sole voting power and
shared dispositive power, and (ii) the following shares which may be purchased by Mr. Mandracchia upon the exercise of options
previously granted to him: (a) 125,000 shares that may be purchased at $0.85 per share; (b) 58,000 shares which may be purchased
at $1.26 per share; (c) 28,145 shares that may be purchased at $3.55; and (d) 76,855 shares which may be purchased at $3.23 per
share, under immediately exercisable options.
(7) Includes (i) 40,000 shares which may
be purchased at $0.85 per share; (ii) 40,000 shares which may be purchased at $1.21 per share; (iii) 25,000 shares that may be
purchased at $1.31 per share; (iv) 10,281 shares which may be purchased at $ 3.27 per share; (v) 21,118 shares which may be purchased
at $1.88 per share; (vi) 26,600 shares that may be purchased at $3.23 per share; and (vii) 14,084 shares that may be purchased
at $3.05 per share under immediately exercisable options.
(8) Includes (i) 40,000 shares which may
be purchased at $1.21 per share; (ii) 25,000 shares which may be purchased at $1.31 per share; (iii) 10,281 shares which may be
purchased at $3.27 per share; a (iv) 21,118 shares which may be purchased at $1.88 per share; (v) 26,600 shares that may be purchased
at $3.23 per share; and (vi) 14,084 shares that may be purchased at $3.05 per share under immediately exercisable options.
(9) Includes (ii) 40,000 shares which may
be purchased at $ 1.21 per share; (ii) 25,000 shares which may be purchased at $1.31 per share; (iii) 10,281 shares which may be
purchased at $3.27 per share; (iv) 21,118 shares which may be purchased at $1.88 per share; (v) 26,600 shares that may be purchased
at $3.23 per share; and (vi) 28,169 shares that may be purchased at $3.05 per share, under immediately exercisable options.
(10) Includes (i) 26,600 shares that may
be purchased at $3.23 per share; and (ii) 28,169 shares that may be purchased at $3.05 per share, under immediately exercisable
options.
(11) Includes (i) 26,600 shares that may
be purchased at $3.23 per share under immediately exercisable options.
(12) Represents aggregate amount of beneficially
owned common stock as reported in a Schedule 13G/A filed by William Blair Investment Management, LLC on July 8, 2016. The address
of William Blair Investment Management, LLC is 224 W. Adams St., Chicago, IL 60606.
(13) Represents aggregate
amount of beneficially owned common stock as reported in a Schedule 13G/A filed by Heartland Advisors, Inc. and William J. Nasgovitz
on February 5, 2016. The address of Heartland Advisors, Inc. is 789 North Water Street, Milwaukee, WI 53202.
(14) Represents aggregate amount of beneficially
owned common stock as reported in a Schedule 13G/A filed by Northern Right Capital Management, L.P., Northern Right Capital (QP),
L.P., Becker Drapkin Partners SLV, Ltd., BC Advisors, LLC, Steven R. Becker and Matthew A. Drapkin on February 12, 2016, and based
upon other information available to the Company. The address of Becker Drapkin Management L.P. is 500 Crescent Court, Suite 230,
Dallas, TX 75201. Also reflects issuance of 66,932 shares of common stock upon exercise of outstanding warrants made on July 7,
2016.
(15) Represents aggregate amount of beneficially
owned common stock as last reported in a Schedule 13G/A filed by Perritt Capital Management, Inc., and Perritt Funds, Inc. on February
4, 2016. The address of Perritt Capital Management, Inc. is 300 South Wacker Drive, Suite 2880, Chicago, Illinois 60606.
(16) Includes options to purchase 2,273,103
shares of common stock which may be purchased under immediately exercisable options.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
During 2015 and 2014, Mr. Prouty provided
consulting services to the Company and received compensation of $48,000 and $95,000 in 2015 and 2014, respectively, from the Company
for those services. The Company may from time to time utilize Mr. Prouty for additional consulting services and on such occasions
will provide compensation to Mr. Prouty for those services.
Review, approval or ratification of
transactions with related persons
Each year, all of our directors and officers
are asked to disclose the existence of family relationships and other related transactions in Director and Officer Questionnaires.
Our Audit Committee is responsible for reviewing and approving or ratifying related-person transactions. A related person is any
executive officer, director or more than 5% stockholder, or any immediate family member of the foregoing persons, or entity owned
or controlled by such person. In addition, pursuant to our Code of Business Conduct and Ethics, all of our employees and directors
are required to bring any conflict of interest to the attention of one of the Company’s executive officers or directors.
In determining whether to approve or ratify a related party transaction, the Audit Committee will consider, among other factors
it deems appropriate, whether the related party transaction is on terms no less favorable to us than terms generally available
to us from an unaffiliated third-party under the same or similar circumstances, and the extent of the related party’s interest
in the transaction. Any transaction which is deemed to be a related party transaction requires the approval, initially by a majority
of the non-interested Audit Committee members and finally by a majority of the non-interested Board members. There are no other
written procedures governing any review of related person transactions.
PROPOSAL 2
ADVISORY VOTE TO APPROVE NAMED EXECUTIVE
OFFICER COMPENSATION
The Company is asking
its shareholders to approve a non-binding advisory resolution on its named executive officer compensation as reported in this Proxy
Statement pursuant to the Securities Exchange Act and related SEC rules and regulations. At our 2013 annual meeting of shareholders,
the shareholders voted, on an advisory basis, in favor of annual votes with respect to named executive officer compensation, and
our Board of Directors has agreed to implement annual votes with respect thereto.
Our compensation structure
is established by our Compensation Committee and is designed to attract and retain motivated executives who substantially contribute
to our long-term success and the creation of shareholder value, to reward executives when the Company performs financially or operationally
well, to align the financial interests of our executives with the interests of our shareholders, and to be competitive within our
industry without targeting or setting compensation at specific benchmark percentiles. Our Compensation Committee’s philosophy
is to balance the named executive officers’ short-term compensation with long-term compensation in order to align their interests
with the interests of our shareholders. Within this framework, our Compensation Committee strives to maintain executive compensation
that is fair, reasonable, and competitive.
In accordance with
the Securities Exchange Act, and as a matter of good corporate governance, the Company is asking shareholders to approve the following
advisory resolution at the Annual Meeting:
RESOLVED, that the shareholders
of Hudson Technologies, Inc. (the “Company”) approve, on an advisory basis, the compensation of the Company’s
named executive officers as disclosed in this proxy statement, including as discussed in the section entitled “Executive
Compensation”, the Summary Compensation Table and the related compensation tables, notes and narrative in the Proxy Statement
for the Company’s 2016 Annual Meeting of Shareholders.
This advisory resolution,
commonly referred to as a “say-on-pay” resolution, is non-binding on the Board. Although non-binding, the Board and
the Compensation Committee values the input of our shareholders and will carefully review and consider the voting results when
evaluating our named executive officer compensation program.
THE BOARD UNANIMOUSLY RECOMMENDS A VOTE
“FOR”
THE APPROVAL OF THE NON-BINDING ADVISORY
RESOLUTION ON THE
COMPANY’S NAMED EXECUTIVE OFFICER
COMPENSATION
PROPOSAL 3
RATIFICATION OF THE APPOINTMENT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS
BDO USA, LLP has audited
and reported upon our financial statements for our fiscal year ended December 31, 2015. The Audit Committee of the Board has re-appointed
BDO USA, LLP as our independent registered public accountants for the fiscal year ending December 31, 2016. Although shareholder
approval of the appointment of BDO USA, LLP is not required by law, the Audit Committee and the Board believe that it is advisable
to give shareholders an opportunity to ratify this appointment. In view of the difficulty and expense involved in changing auditors
on short notice, however, should the shareholders not ratify the selection of BDO USA, LLP, it is contemplated that the appointment
of BDO USA, LLP for the fiscal year ending December 31, 2016 will be permitted to stand unless the Audit Committee finds other
compelling reasons for making a change. Disapproval by the shareholders will be considered a recommendation that the Audit Committee
select other auditors for the following year. Furthermore, although the appointment of BDO USA, LLP is being submitted for shareholder
ratification, the Audit Committee reserves the right, even after ratification by shareholders, to change the appointment of BDO
USA, LLP as our independent registered public accountants, at any time during the 2016 fiscal year, if it deems such change to
be in our best interest. A representative of BDO USA, LLP is expected to be present at the Annual Meeting with the opportunity
to make a statement if he or she desires to do so and is expected to be available to respond to appropriate questions.
In addition to retaining
BDO USA, LLP to audit the Company’s financial statements, we have engaged BDO USA, LLP from time to time to perform other
services. The following sets forth the aggregate fees billed by BDO USA, LLP to the Company in connection with services rendered
during the years ended December 31, 2015 and December 31, 2014.
Audit Fees.
The aggregate fees billed
by BDO USA, LLP for professional services rendered for the audits and reviews of the Company's financial statements for the years
ended December 31, 2015 and 2014 totaled $391,000 and $277,000, respectively.
Audit-Related Fees.
In 2015 and
2014, the aggregate fees billed by BDO USA, LLP for assurance and related services that are reasonably related to the performance
of the audit or review of the Company's financial statements were $10,000 and 20,000, respectively. The fees in 2015 and 2014 were
related to the due diligence process with respect to the Company’s recent acquisitions.
Tax Fees.
In 2015 and 2014 the aggregate
fees billed by BDO USA, LLP for professional services rendered for tax advice totaled $39,000 and 36,000, respectively.
All Other Fees.
In 2015 and 2014,
all other fees billed by BDO USA LLP for professional services rendered other than the services described in the paragraphs caption
“Audit Fees”, “Audit Related Fees” and “Tax Fees” were $14,000 and 5,000, respectively. The
fees in 2015 and 2014 were for consulting fees relating to acquisitions.
The Audit Committee has established its
pre-approval policies and procedures, pursuant to which the Audit Committee approved the foregoing audit services provided by BDO
USA, LLP in 2015. Consistent with the Audit Committee's responsibility for engaging the Company’s independent auditors, all
audit and permitted non-audit services require pre-approval by the Audit Committee. The full Audit Committee approves proposed
services and fee estimates for these services. The Audit Committee chairperson or their designee has been designated by the Audit
Committee to approve any services arising during the year that were not pre-approved by the Audit Committee. Services approved
by the Audit Committee chairperson are communicated to the full Audit Committee at its next regular meeting and the Audit Committee
reviews services and fees for the fiscal year at each such meeting. Pursuant to these procedures, the Audit Committee approved
the foregoing audit services provided by BDO USA, LLP.
THE BOARD UNANIMOUSLY RECOMMENDS
A VOTE “FOR” THE RATIFICATION OF THE APPOINTMENT OF BDO USA, LLP AS OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS FOR
THE FISCAL YEAR ENDING DECEMBER 31, 2016.
SHAREHOLDER PROPOSALS
Shareholders who wish
to present proposals appropriate for consideration at the 2017 Annual Meeting of Shareholders, which the Company currently anticipates
will be held in or about August 2017 must submit the proposal in proper form in a manner consistent with our By-Laws, and in satisfaction
of the conditions established by the Securities and Exchange Commission, to the Company at its address set forth on the first page
of this proxy statement not later than March 23, 2017 to be considered for inclusion in the Company's proxy statement and form
of proxy relating to such annual meeting. Any such proposals, as well as any questions related thereto, should be directed to the
Secretary of the Company.
After the March 23,
2017 deadline, a shareholder may present a proposal at the Company’s 2017 Annual Meeting if advance notice of the proposal
is submitted in writing to the Company’s Chairman of the Board, c/o Corporate Secretary, at the address set forth above no
earlier than April 26, 2017 and no later than May 26, 2017. In the event that the Annual Meeting of Shareholders to be held in
2017 is held either before July 24, 2017 or after October 23, 2017, then the notice must be received by the Company’s Secretary
no later than 90 days prior to the date of such meeting or, within 10 days following the first public pronouncement of the date
of such annual meeting if such public announcement is made less than 100 days prior to the date of such meeting. If timely submitted
and otherwise in compliance with our By-Laws, the shareholder may present the proposal at that Annual Meeting, but the Company
is not obligated to include the proposal in its proxy statement.
In addition, to be
timely, a shareholder’s notice must be updated and supplemented, if necessary, so that the information provided or required
to be provided in such notice will be true and correct as of the record date for the 2017 Annual Meeting and as of the date that
is 10 business days prior to such meeting or any adjournment or postponement thereof, and such update and supplement must be delivered
to, or mailed and received by, the Chairman of the Board of Directors at the principal executive offices of the Company not later
than 5 business days after the record date for the meeting (in the case of the update and supplement required to be made as of
the record date), and not later than 8 business days prior to the date for the meeting, or if the meeting is adjourned or postponed,
on the first practicable date after any adjournment or postponement thereof (in the case of the update and supplement required
to be made as of 10 business days prior to the meeting or any adjournment or postponement thereof).
OTHER INFORMATION
In addition to the
use of the mails, proxies may be solicited by the directors, officers, and employees of the Company without additional compensation
in person, or by telephone, facsimile, email, or otherwise. Arrangements may also be made with brokerage firms and other custodians,
nominees, and fiduciaries for the forwarding of solicitation material to the beneficial owners of Hudson common stock, and we will
reimburse these brokers, custodians, nominees, and fiduciaries for reasonable out-of-pocket expenses incurred. The cost of solicitation
will be borne entirely by Hudson.
A COPY OF THE COMPANY'S
ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2015 IS BEING FURNISHED HEREWITH AS PART OF THE ANNUAL REPORT TO SHAREHOLDERS
TO EACH SHAREHOLDER OF RECORD AS OF THE CLOSE OF BUSINESS ON THE RECORD DATE.
COPIES OF EXHIBITS
TO SUCH ANNUAL REPORT ON FORM 10-K WILL BE PROVIDED FOR A NOMINAL CHARGE TO SHAREHOLDERS WHO MAKE A WRITTEN REQUEST TO THE COMPANY
AT THE FOLLOWING ADDRESS:
HUDSON TECHNOLOGIES, INC.
|
|
PO Box 1541, One Blue Hill Plaza
|
|
Pearl River, New York 10965
|
|
ATTENTION: Stephen P. Mandracchia, Secretary
|
|
IMPORTANT NOTICE REGARDING THE AVAILABILITY
OF PROXY MATERIALS FOR THE SHAREHOLDER MEETING TO BE HELD ON AUGUST 24, 2016
The Company’s
proxy statement and Annual Report to Shareholders are available online at
http://hudsontech.investorroom.com
.
The
Company’s Annual Meeting of Shareholders will be held on Wednesday, August 24, 2016 at 10:00 A.M., local time at the Holiday
Inn Orangeburg, 329 Route 303, Orangeburg, New York 10962. You may obtain directions to the Holiday Inn Orangeburg by contacting
the Holiday Inn Orangeburg at (855) 743-7676, or by accessing their website at
http://www.holidayinn.com/hotels/us/en/orangeburg/orany/hoteldetail/directions
.
The Board is not aware of any other matters, except for those incident to the conduct of the Annual Meeting, that are to be presented
to shareholders for formal action at the Annual Meeting. If, however, any other matters properly come before the Annual Meeting
or any adjournments thereof, it is the intention of the persons named in the proxy included herewith to vote such proxy in accordance
with their judgment.
|
By order of the Board of Directors
|
|
|
|
Kevin J. Zugibe, P.E.
|
|
Chairman of the Board
|
July 21, 2016
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HUDSON TECHNOLOGIES, INC.
PO Box 1541, One Blue Hill Plaza
Pearl River, New York 10965
IMPORTANT NOTICE REGARDING THE AVAILABILITY
OF PROXY MATERIALS FOR THE
SHAREHOLDER MEETING TO BE HELD ON AUGUST 24, 2016
The Company’s
proxy statement, and Annual Report to Shareholders, including the Annual Report on Form 10-K for the year ended December 31, 2015,
are available on line at
http://hudsontech.investorroom.com
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PROXY FOR ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD AUGUST 24, 2016
THIS PROXY IS SOLICITED ON BEHALF OF
THE BOARD OF DIRECTORS
The undersigned hereby
appoints KEVIN J. ZUGIBE and STEPHEN P. MANDRACCHIA, and each of them, Proxies, with full power of substitution in each of them,
in the name, place and stead of the undersigned, to vote at the Annual Meeting of Shareholders of Hudson Technologies, Inc. (the
"Company") on Wednesday, August 24, 2016, at 10:00 AM, at Holiday Inn Orangeburg, 329 Route 303, Orangeburg, New York
10962 or at any adjournment or adjournments thereof, according to the number of votes that the undersigned would be entitled to
vote if personally present, upon the following matters:
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1.
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To elect a class of four directors to the Board of Directors:
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NOMINEES:
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01) Dominic J. Monetta
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FOR
all nominees listed to the left
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02) Richard Parrillo
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(except as marked to the contrary below).
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03) Eric A. Prouty
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04) Kevin J. Zugibe
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WITHHOLD AUTHORITY
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to vote for all nominees listed to the left.
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(INSTRUCTION: To withhold authority
to vote for any individual nominee, write that nominee's name in the space above.)
2.
To approve, by non-binding advisory vote, named executive officer compensation.
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FOR
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AGAINST
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ABSTAIN
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3. To ratify the appointment
of BDO USA, LLP as independent registered public accountants for the fiscal year ending December 31, 2016.
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FOR
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AGAINST
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ABSTAIN
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(Continued and to be signed on reverse
side)
4.
In
their discretion, the Proxies are authorized to vote upon such other business as may properly come before the meeting.
THIS PROXY WILL BE VOTED IN ACCORDANCE
WITH THE INSTRUCTIONS GIVEN ABOVE. IF NO INSTRUCTIONS ARE GIVEN, THIS PROXY WILL BE VOTED “FOR” THE NOMINEES AND “FOR”
THE OTHER PROPOSALS LISTED ABOVE.
DATED: ________________________________, 2016
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Please sign exactly as name appears hereon. When shares are held by joint tenants, both should sign. When signing as attorney, executor, administrator, trustee or guardian, please give full title as such. If a corporation, please sign in full corporate name by President or other authorized officer. If a partnership, please sign in partnership name by authorized person.
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Signature
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Signature if held jointly
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Please mark, sign, date and return this
proxy card promptly using the enclosed envelope.
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