On August 1, 2016 (the Distribution Date), Emergent BioSolutions Inc. completed its previously announced distribution (the Distribution) of all of the outstanding shares of common stock of Aptevo Therapeutics Inc. The company's board of directors expanded its size from five directors to seven directors, each of Fuad El-Hibri, Marvin L. White, Daniel J. Abdun-Nabi, Grady Grant, III, Barbara Lopez Kunz and John E. Niederhuber, M.D. was elected to serve as directors of the company and each of A.B. Cruz III, Michael Darling, Eric Burt and Robert Kramer, who had been serving as members of the board, resigned from the board. Zsolt Harsanyi, Ph.D., who had been serving as a member of the Board, remains on the Board and will continue to serve as a director of Aptevo following the Distribution. The members of the Board have each been assigned to a class with an initial term expiring as follows: Class I: Mr. Harsanyi and Ms. Kunz were appointed to serve as Class I directors with terms expiring at the 2017 annual meeting of stockholders; Class II: Mr. Abdun-Nabi and Mr. Grant were appointed to serve as Class II directors with terms expiring at the 2018 annual meeting of stockholders; and Class III: Mr. El-Hibri, Dr. Niederhuber and Mr. White were appointed to serve as Class III directors with terms expiring at the 2019 annual meeting of stockholders. Also in connection with the distribution, the company’s board made the following governance decisions: The board's audit committee was reconstituted to be comprised of Mr. Grant, Dr. Harsanyi (Chair) and Ms. Kunz; The board's compensation committee was reconstituted to be comprised of Mr. Grant, Ms. Kunz and Dr. Niederhuber (Chair); and Dr. Niederhuber was appointed as lead independent director. The board has determined that each of Mr. Grant, Dr. Harsanyi, Ms. Kunz and Dr. Niederhuber qualifies as an independent director under the director independence standards set out in the NASDAQ Marketplace Rules.