Policy on Majority Voting
(as adopted on February 21, 2006)
In an uncontested election of Directors, any nominee who receives a greater number of votes “withheld” from his or her election than votes “for”
his or her election will, within five days following the certification of the shareholder vote, tender his or her written resignation to the Chairman of the Board
for consideration by the Nominating and Corporate Governance Committee (the “Committee”). As used in this Policy, an “uncontested election of
Directors” is an election in which the only nominees are persons nominated by the Board of Directors.
The Committee will consider such tendered resignation and, within 45 days following the date of the shareholders’ meeting at which the election occurred,
will make a recommendation to the Board concerning the acceptance or rejection of such resignation. In determining its recommendation to the Board, the Committee
will consider all factors deemed relevant by the members of the Committee including, without limitation, the stated reason or reasons why shareholders who cast
“withhold” votes for the Director did so, the qualifications of the Director (including, for example, whether the Director serves on the audit committee
of the Board as an “audit committee financial expert” and whether there are one or more other Directors qualified, eligible and available to serve on
the audit committee in such capacity), and whether the Director’s resignation from the Board would be in the best interests of the Company and its shareholders.
The Committee also will consider a range of possible alternatives concerning the Director’s tendered resignation as the members of the Committee deem appropriate,
including, without limitation, acceptance of the resignation, rejection of the resignation, or rejection of the resignation coupled with a commitment to seek to
address and cure the underlying reasons reasonably believed by the Committee to have substantially resulted in the “withheld” votes.
The Board will take formal action on the Committee’s recommendation no later than 75 days following the date of the shareholders’ meeting at which the
election occurred. In considering the Committee’s recommendation, the Board will consider the information, factors and alternatives considered by the Committee
and such additional information, factors and alternatives as the Board deems relevant.
Following the Board’s decision on the Committee’s recommendation, the Company, within four business days after such decision is made, will publicly
disclose, in a Form 8-K filed with the Securities and Exchange Commission, the Board’s decision, together with a full explanation of the process by which
the decision was made and, if applicable, the Board’s reason or reasons for rejecting the tendered resignation.
No Director who, in accordance with this Policy, is required to tender his or her resignation, shall participate in the Committee’s deliberations or recommendation,
or in the Board’s deliberations or determination, with respect to accepting or rejecting his or her resignation as a Director. If a majority of the members
of the Committee received a greater number of votes “withheld” from their election than votes “for” their election, then the independent
Directors then serving on the Board who received a greater number of votes “for” their election than votes “withheld” from their election,
and the Directors, if any, who were not standing for election, will appoint an ad hoc Board committee from amongst themselves (the “Ad Hoc Committee”),
consisting of such number of Directors as they may determine to be appropriate, solely for the purpose of considering and making a recommendation to the Board with
respect to the tendered resignations. The Ad Hoc Committee shall serve in place of the Committee and perform the Committee’s duties for purposes of this Policy.
Notwithstanding the foregoing, if an Ad Hoc Committee would have been created but fewer than three Directors would be eligible to serve on it, the entire Board
(other than the Director whose resignation is being considered) will make the determination to accept or reject the tendered resignation without any recommendation
from the Committee and without the creation of an Ad Hoc Committee.
This Policy, as it may from time to time be amended, will be summarized or included in the Company’s proxy statement for each meeting of shareholders (annual
or special) at which directors are to be elected.