Consistent with the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Board maintains a policy pursuant to which the Company and the Board reserve the right to recover (or “clawback”) from certain current and/or former key employees any wrongfully earned performance-based compensation, including stock-based awards, under the following circumstances:
There is a restatement of Company financials due to material noncompliance with any financial reporting requirement;
The Board determines that the current or former employee has willfully committed an act of fraud, dishonesty or recklessness in the performance of his or her duties that contributed to the noncompliance that resulted in the requirement to restate Company financials; and
The cash incentive or performance-based equity compensation would have been less valuable than what was actually awarded or paid based upon the application of the correct financial results.
These provisions are designed to deter and prevent detrimental behavior and to protect our investors from financial misconduct.