Nicholas Alvarez

About Nicholas Alvarez

Nicholas Alvarez, age 33, serves as Chief Acquisition Officer (CAO) at LifeMD (LFMD). He was appointed to the CAO role in 2020 after leading customer acquisition at the company since 2018; he previously managed over $100 million in paid media budgets at Internet Brands and Cheviot Capital. He holds an undergraduate degree from Loyola Marymount University and oversees media buying and advertising strategy across LifeMD’s brands, excluding PDFSimpli . Company performance context in 2024: Telehealth Net Revenue $158.4 million, Telehealth Cash Rebilling Revenue $119.8 million, and Telehealth Adjusted EBITDA $7.4 million (the corporate bonus program’s metrics), while cumulative TSR since end-2021 measured $63.06 at 2024 year-end vs $105.61 at 2023 and $29.71 at 2022 .

Past Roles

Organization	Role	Years	Strategic Impact
Internet Brands	Digital Marketing Specialist	2015–2016	Managed paid media on sites like Lawyers.com and CarsDirect.com
Cheviot Capital	Head Media Buyer	2016–2018	Led media buying; scaled acquisition budgets >$100 million
LifeMD	Head of Customer Acquisition	2018–2020	Oversaw customer acquisition across brands (pre-CAO)

Fixed Compensation

Metric	2018	2020	2021
Base Salary ($)	$87,000 for first 12 months, then $120,000 thereafter	$172,400 (Amended & Restated Employment Agreement effective Dec 8, 2020)	$300,000 (First Amendment effective July 19, 2021)
Target Bonus ($)	Monthly cash bonus with 30% paid in restricted common stock (per original agreement; schedule in Appendix A)	Eligible discretionary annual performance bonus (amount not specified)	Discretionary Performance Bonus up to $125,000

Performance Compensation

Corporate 2024 Bonus Program (company-wide; Alvarez’s specific payout not disclosed)

Metric	Weighting	Target	Actual	Payout as % of Target
Telehealth Net Revenue	30%	$135–$145 million	$158.4 million	200%
Telehealth Cash Rebilling Revenue	30%	$100–$108 million	$119.8 million	200%
Telehealth Adjusted EBITDA	40%	$0–$7 million	$7.4 million	100%
Total	100%	—	—	160% pre-discretion

Payout curve: 25% reduction for each $1 million below target and 25% increase for each $1 million above target, with potential discretionary increases at higher performance thresholds .

Equity Awards and Vesting (Alvarez-specific)

Award Type	Grant/Agreement Date	Size	Strike Price	Vesting Schedule	Final Vest
Stock Options (time-based)	Employment Agreement effective Jul 26, 2018	600,000 options	$0.23 per share	200,000 options vest at 7-month, 16-month, and 25-month anniversaries of Jul 26, 2018	25-month anniversary of Jul 26, 2018
Stock Options (time-based)	Amended & Restated Employment Agreement effective Dec 8, 2020	200,000 options	Not disclosed	5,555 options vest monthly for 35 months beginning Dec 8, 2020; final 5,575 vesting on Dec 8, 2023	Dec 8, 2023
Performance RSUs (Telemedicine Brands net sales milestones)	Amended & Restated Employment Agreement effective Dec 8, 2020 (Schedule A)	Up to 300,000 RSUs	N/A	150,000 RSUs vest upon $100,000,000 net sales in any calendar year; 150,000 RSUs vest upon $200,000,000 net sales in any calendar year; RSUs vest upon earlier of Change of Control or Dec 8, 2023	Change of Control or Dec 8, 2023
Annual Bonus (cash)	2020 (Summary Compensation Table)	Actual bonus paid $4,853	N/A	Discretionary annual bonus eligibility per agreements	N/A

Equity Ownership & Alignment

As-of Date	Shares Beneficially Owned	Percent of Outstanding	Notes
Apr 29, 2021	180,288	<1% (asterisk indicates less than 1% per DEF 14A table)	Section 16 note: Alvarez had late filings for Form 3 (80,000 options, Jan 20, 2020) and Form 4 (40,000 options, Dec 8, 2020); subsequently filed

Vested vs unvested: All 200,000 options granted under the 2020 amended agreement were fully vested by Dec 8, 2023 via monthly vesting; the 2018 600,000 option tranches vested at specified anniversaries. RSUs up to 300,000 were structured to vest on Change of Control or Dec 8, 2023 contingent on Telemedicine Brands net sales milestones .
Pledging/Hedging: No pledging disclosures identified for Alvarez in reviewed DEF 14A filings; the 2025 beneficial ownership table does not list Alvarez individually (directors and executives as a group: 8,156,197 shares, 18.40%) .

Employment Terms

Term	Detail
Original Employment Agreement	Effective Jul 26, 2018; role: Lead Media Buyer; salary $87,000 first 12 months then $120,000; monthly cash bonus with 30% paid in restricted stock; 300,000 performance-based options ($0.23 strike) and a 10-year option for 600,000 shares at $0.23 with 3 vesting tranches
Appointment as CAO	Jan 20, 2020; continued under 2018 agreement; compensation included $120,000 salary and options to purchase 600,000 shares (valued at $137,250) vesting 200,000 at each 7-, 16-, 25-month anniversary
Amended & Restated Employment Agreement	Effective Dec 8, 2020; base salary $172,400; granted 200,000 options with monthly vest to Dec 8, 2023; eligible discretionary annual performance bonus; eligible up to 300,000 RSUs tied to Telemedicine Brands net sales milestones; RSUs vest on earlier of Change of Control or Dec 8, 2023
First Amendment	Effective Jul 19, 2021; base salary increased to $300,000; discretionary Performance Bonus may be up to $125,000; governing law changed to New York
Severance	If terminated without Good Cause or for Good Reason: lump-sum equal to 6 months of then-current monthly base salary on six-month anniversary of termination, plus pro-rata bonus for year of termination; continued benefits (including Company-paid COBRA if elected) through six-month termination anniversary
Change-of-Control Treatment	RSUs vest upon Change of Control or Dec 8, 2023 (single-trigger for RSU vesting)
Non-compete/Exclusive Service	Agreement requires exclusive service and prohibits affiliation with competing business activities without prior written consent
Term Length	Indefinite term continuing until termination under Section 6

Investment Implications

Compensation structure and alignment: Alvarez’s incentives were heavily equity-driven (options and RSUs), with RSU vesting tied to Telemedicine Brands net sales milestones and single-trigger acceleration on Change of Control, aligning him with growth and potentially sale outcomes; corporate cash bonus metrics emphasize Telehealth revenue quality and adjusted EBITDA, consistent with his acquisition mandate .
Vesting and potential selling pressure: Significant option tranches vested at 7/16/25 months from mid-2018 and a further 200,000 options fully vested by Dec 8, 2023; these events could create periodic insider selling pressure depending on Form 4 activity and blackout windows (Alvarez had late 2020 Section 16 filings, since remedied) .
Ownership and retention risk: Reported beneficial ownership was <1% in 2021, a modest “skin-in-the-game” level compared with CEO; severance is moderate at six months’ salary plus pro-rata bonus, indicating balanced retention economics without outsized golden parachute; RSUs’ single-trigger vesting on Change of Control may incentivize strategic transactions .
Governance and red flags: No pledging disclosures were identified; historical late Section 16 filings in 2020 are a minor compliance flag; no clawback or tax gross-up disclosures specific to Alvarez were found in reviewed materials .