Corporate Governance Principals.DOC 2
however, that directors who do not meet the NYSE’s independence standards have historicallymade, and can be expected to continue to make, valuable contributions to the Board and to theCompany by reason of their experience, judgment, intelligence and wisdom. The Board willaffirmatively determine on an annual basis, and the Company will disclose as required, as toeach Board member, whether he or she is independent. It is the policy of the Company that nomore than two (2) directors may be employees of the Company.2.4.
. To be considered independent under the NYSE rules, the Board mustaffirmatively determine that a director does not have any direct or indirect material relationshipwith the Company. The Board has established the following guidelines to assist it indetermining director independence in accordance with the NYSE rules:2.4.1.
No director who is an employee or former employee of the Company, or whoseimmediate family member is an executive officer or former executive officer of theCompany, shall be considered “independent” until three years after such employment hasended.2.4.2.
No director who is receiving, or in the last three years has received, or whose immediatefamily member is receiving, or in the last three years has received, more than $100,000per year in direct compensation from the Company, other than fees received in suchdirector’s capacity as a member of the Board or any Board committee and pensionpayments or other forms of deferred compensation for prior service (provided suchcompensation is not contingent in any way on continued service) shall be considered“independent.” Compensation received by an immediate family member for service as anon-executive employee of the Company need not be considered in determiningindependence under this Section 126.96.36.199.4.3.
No director who is, or in the past three years has been, affiliated with or employed by, orwhose immediate family member is, or in the past three years has been, affiliated with oremployed in a professional capacity by, a present or former internal auditor orindependent auditing firm of the Company shall be considered “independent.”2.4.4.
No director who is, or in the past three years has been, employed as, or whose immediatefamily member is, or in the past three years has been, employed as, an executive officerby any company for which any executive officer of the Company serves as a member of its compensation committee (or, in the absence of a compensation committee, the boardcommittee performing equivalent functions, or, in the absence of such committee, theboard of directors) shall be considered “independent.”2.4.5.
No director who is an executive officer or an employee, or whose immediate familymember is an executive officer, of a company that makes payments to, or receivespayments from, the Company for property or services in an amount which, in any singlefiscal year, exceeds the greater of $1,000,000 or 2% of such other company’sconsolidated gross revenue shall be considered “independent” until three years after suchpayments fall below such threshold.2.4.6.
The following commercial, charitable and educational relationships will not beconsidered to be material relationships that would impair a director’s independence:188.8.131.52.
A director of the Company serving as an executive officer or employee of anothercompany (or an immediately family member of the director serving as an executiveofficer of such company) that does business with the Company and either: (i) the