GOVERNANCE COMMITTEE CHARTER

 

COMMITTEE'S PURPOSE

The Nominating and Corporate Governance Committee (the "Governance Committee" or the "Committee") is appointed by the Board of Directors (the "Board") to assist the Board in identifying qualified individuals to become directors, recommend to the Board qualified director nominees for election at the stockholders' annual meeting, determine membership on the Board committees, recommend a set of Corporate Governance Guidelines, oversee annual self-evaluations by the Board and self-evaluate itself annually, and report annually to the Board on the Chief Executive Officer ("CEO") succession plan.

COMMITTEE MEMBERSHIP

The Committee members shall be appointed, and may be replaced, by the Board. The Committee shall consist of no fewer than three directors. All members of the Committee shall meet the independence standards as specified in the Company's Corporate Governance Guidelines, which have been adopted by the Board with reference to the rules of the New York Stock Exchange and the Securities and Exchange Commission.

MEETINGS

The Committee shall meet as often as necessary to carry out its responsibilities. Any Committee member may request the Chairman of the Committee to call a meeting. The Chairman of Committee shall report on any Committee meeting held at the next regularly scheduled Board meeting following the Committee meeting.

COMMITTEE GOALS AND RESPONSIBILITIES

  1. The Committee shall recommend to the Board director nominees for election at the stockholders' annual meeting.
  2. Prior to nominating an existing director for re-election to the Board, the Committee shall consider and review the existing director's:
    1. Board and committee meeting attendance and performance;
    2. length of Board service;
    3. experience, skills and contributions that the existing director brings to the Board; and
    4. independence.
  3. In the event that a director vacancy arises, the Committee may seek and identify a qualified director nominee to be recommended to the Board for either appointment by the Board to serve the remainder of the term of the director position that is vacant or election at the stockholders' annual meeting. In order to identify such a nominee, the Committee shall solicit recommendations from the directors and senior management. These recommendations shall be considered by the Committee along with any recommendations that have been received from security holders in compliance with paragraph 13 below. The committee may in its discretion retain a search firm to provide additional candidates.
  4. A director nominee shall meet the director qualifications specified in the Company's Corporate Governance Guidelines, including that the director nominee possess personal and professional integrity, has good business judgment, relevant experience and skills and will be an effective director in conjunction with the full Board in collectively serving the long-term interests of the Company's stockholders. The Committee shall apply the same policies and procedures to evaluate candidates for director that are submitted by security holders as are used to evaluate candidates from other sources.
  5. The Committee shall have the sole discretion and authority to retain any search firm to assist in identifying director candidates, retain outside counsel and/or any other internal or external advisors and approve all related fees and retention terms.
  6. The Committee shall review the Board's committee structure and recommend to the Board for its approval directors to be appointed as members on each Board committee. Prior to recommending the re-appointment of a director to a Board committee, the Committee shall review the existing director's independence, if required, skills, Board committee meeting attendance, performance and contribution, and his or her fulfillment of committee responsibilities. If a vacancy on a Board committee occurs, the Committee shall recommend a director with relevant experience and skills, and who is independent, if required by the committee charter, to be appointed to fill the vacancy.
  7. The Committee shall recommend to the Board for its approval the Corporate Governance Guidelines. The Committee will review annually the Corporate Governance Guidelines and recommend any proposed changes to the Board for approval.
  8. The Committee shall develop and recommend to the Board for its approval an annual self-evaluation process for the full Board that will be conducted and overseen by the Committee. The Committee shall report to the full Board, following the end of each fiscal year, the results of the annual self-evaluation, including any comments from the self-evaluations. However, any comments from the self-evaluations regarding individual directors shall be reported to the Chairman and if necessary, to the relevant committee chairman.
  9. The Committee shall annually review its own performance by distributing to its members a written self-assessment.
  10. The Committee shall make an annual report to the Board on emergency as well as expected CEO succession planning. The full Board will work with the Committee to recommend and evaluate potential successors to the CEO. The CEO should make available his or her recommendations and evaluations of potential CEO successors, along with a review of any development plans recommended for such individuals.
  11. Any concerns regarding non-financial matters that are reported to the Anonymous Reporting Hotline that the Audit Committee refers to the Committee shall be reviewed and investigated by the Committee.
  12. The Committee shall review and reassess the adequacy of this Charter annually and recommend any proposed changes to the Board for approval.
  13. The Committee shall treat recommendations for director that are received from the Company's security holders equally with recommendations received from any other source; provided, however, that in order to be considered recommendations from security holders (1) must be received no later than 120 days before the one-year anniversary of the date on which the proxy statement related to the most recent annual meeting was first mailed to security holders (or such earlier date set forth in such proxy statement), and (2) must be mailed to the attention of the Chief Executive Officer at the corporate headquarters.