Granting of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information

The Company’s board of directors has not adopted any formal policy, predetermined schedule, or plan governing the timing of option or stock appreciation right grants. Accordingly, the board does not follow any set practice as to when such awards are granted.

The board of directors (and the compensation committee, where applicable) does not take material nonpublic information into account when determining the timing or terms of option or stock appreciation right awards. The Company has not timed the disclosure of material nonpublic information for the purpose of affecting the value of executive compensation.

During the last completed fiscal year, the Company did not grant any options or stock appreciation rights to named executive officers within the period beginning four business days before and ending one business day after the disclosure of material nonpublic information. Therefore, the tabular disclosure required by Item 402(x)(2) of Regulation S-K is not applicable.