EX-19 3 cwco-20231231xex19.htm EX-19

EXHIBIT 19

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CONSOLIDATED WATER CO. LTD.

I N S I D ER T R AD I N G A N D D I S C LOS UR E OF N O N-PU B L I C I NF O RMA T I ON P OL I C Y

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Contents

OVERVIEW‌2

G E NERAL P O L ICY‌3

D E F INI T I O NS‌4

CERTAIN EXCEPTIONS‌6

PO T ENTIAL CRIMIN A L AND CI V IL LIABI L ITY AN D/OR DI S CIPL I NA R Y ACTION‌7

IN D I V ID U AL R ES PO NS I B ILI T Y OF E A CH A FFILI A TE TO COMP L Y WITH PO L I C Y‌8

REPORTING S H A RE OW N ER S HIP AND TR A NS A CTI O NS; D I S G O RGEM E NT OF S HORT-S WING P R OFITS‌8

TR A DI N G WIN D OW AND ANN U AL C E RTIF I CATION‌10

ADDITIONAL RESTRICTIONS‌11

P RE-CL E A R A N CE O F TR A DES A N D P O S T-TR A DE NO T I F IC A T I ON‌11

P r e-C l e a r a n c e of T r a de s‌12

P os t-T r a d e No t i f ica t ion‌12

EXCEPTION FOR T RA DI N G P L ANS‌13

IN Q UIRIES‌13

INS I D E R T RADING P O L I CY QUICK R E F E RENCE‌13

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OVERVIEW

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This I nsid e r T r a ding and Disclosure of Non-public Information P ol ic y (t h e “Polic y”) s e ts forth the g e n e r a l st a nd a rds for a ll dir ec tors, o f fi ce rs, e mp l o y e e s, a g e nts a nd r e p re s e ntatives (c ol le c t i v e l y, “Aff i l i ates”) of Consolidat e d W a ter Co. L td. a nd i t s subs i dia r i e s (c ol l ec t i v e l y, the “Compa n y”) with r e spe c t to trading, or causing trading of, the Compa n y’s s e c u r i t ies while in possession of Material Non-public Information (as defined herein). I n a ddi t ion, th i s P ol ic y i m poses fu r ther c omp l ia n c e p r o c e dur e s on the Compa n y’s di r ec tors, e x ec ut i v e o f fi c e rs a nd ce rt a in A f f i l iat e s who h a ve b ee n not i fi e d b y the Company’s Chief F inan c i a l O f f i ce r (the “C F O”) a s provid e d h e r e in b elow.

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The C F O w i l l admin i ster the I nsi d e r T r a ding P ol i c y.

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APPLIC A BILI T Y OF P OLICY

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This P ol ic y a ppl i e s to a ll trading or other transactions in the C o mpa n y’s s e c u r i t ies, including c om m on stock, opt i ons for c om m on stock a nd a n y other s ec u r i t ies the Compa n y m a y is s ue f r om t i me to t i me. Th e se oth e r s ec u rities m a y inclu d e p re fer re d or p r e f e r e n c e s tock, w a r r a nts, c onv e rtible d e b e ntur e s a nd d e riv a t i ve s e c u r i t ies r e lating to the Compa n y’s stock, wh e ther or not i ssued b y the Co m p a n y, s u c h a s e x c h a n g e-t r a d e d opt i ons.

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A n y p e rson who h a s M a t e r ial No n-pub l i c I nf o rm a tion re g a rdi n g the C o mpa n y m a y not pur c h a se o r s e ll the Compa n y’s s ec u rities unt i l t h e info r mation h a s b e e n fu l l y d isclosed to the g e n er al pub l i c in acc o r d a n c e with th i s P ol ic y. I n a ddi t ion, a n y p e rson who h a s obt a ined Mat e ri a l No n-publ i c I n f o rm a t i on a bout a nother c ompa n y obtained thr o u g h his or h e r e mp l o y ment with the C ompa n y m a y not pu r c h a se a nd s e ll such c omp an y’s s ec u r i t ies unt i l the info r mation h a s b ee n ful l y disclosed to the g e n e r a l publ i c. “Mat e ri a l No n-publ i c I n fo r mat i on” a nd “ful l y disclosed to the g e n e ra l publ i c” a re e a c h disc u ssed in fu r ther d e tail i n th i s P ol ic y.

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Effective: November 17, 2021

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S TAT E M E NT O F PO L I CY

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G E NERAL P O L ICY

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YOU M AY NOT USE M AT E RI A L N O N-PUBLIC I N F O R M ATI O N IN TRADING ANY SECURITY OF THE COMPANY.

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A N Y NON-PUBLIC IN F O R M ATI O N, W H E TH E R OR NOT M AT E RI A L, RE L ATING TO THE CO M P A N Y IS THE P R O P ERTY O F THE CO M P A N Y. YOU M AY NOT DISC L O S E S U C H I NF OR M ATI O N A C QUIRED U N DER A N Y CI R C UM S TA N CES U N LE S S S P ECI F IC A LLY A U TH O RI Z ED BY THE C F O.

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| ● | T ra di n g on Ma t e ri a l N on-publ i c I n f o r m a t i on. W hi l e y ou a r e in the po s s e ss i on of Mat e ri a l Non-publ i c I n f o r mation, y ou and m e m b e rs of y our imm e dia t e fami l y o r hous e hold m a y not purch a se or s e ll the Compa n y’s s ec u rities (o r, if such info r mation r e lat e s to a nother comp an y, the s ec u r i t ies of such other c ompa n y). This includ e s a n y o f f e r to pu r c h a se o r o f f e r to s e l l. The p e riods of t i me c ov e r e d b y th i s p r ohib i t i on include the d a te that y ou fi r st possess Mat e ri a l No n-publ i c I n fo r mation a n d e nding a t the c lose of busin e ss on t he s ec o n d T r a d i n g Day (e v e r y d a y that the N A S D A Q Global Select Ma r k e t is o p e n for t r a ding - g e n e r a l l y, e v e r y d a y of the y e a r other than S a turd a y s, S und a y s a nd f e d e r a l hol i d a y s (a “T r a ding D a y”)) following the d a te the info r ma t ion is ful l y d isclosed to the g e n e r a l publ i c i n acc o r d a n c e with t his P ol i c y.

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I f you a r e in possession of Mat e ri a l No n-publ i c I n fo r mation, y ou m u st fo r e g o a p r opos e d tr a ns a c t i on:

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| ● | e v e n tho u g h y ou plan n e d to make the t r a ns ac t i on b e fo r e l e a rni n g of the

Mat e ri a l Non-publ i c I n f o rm a t i on; a nd

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| ● | e v e n tho u g h y ou m a y lose mon e y o r a potential p r o f it b y not c omp l e t i n g the tr a nsa c t i on. |

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| ● | Oth e r T ra di n g P rohibition s. You m a y not, at any time, w r i t e a n y opt i ons (s e l l ing put or ca ll opt i ons) on the Compa n y’s s ec u r i t ies or s e ll short (s e l l a s ec u r i t y not own e d b y y o u) se c u r i t ies of the Com p a n y.

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Effective: November 17, 2021

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| ● | Tippin g. You a r e p r o hib i ted f r om disclos i ng (“tippin g”) Mat e ri a l No n-publ i c I n fo r mation to a n y other p e rson (in c lud i n g f a m i l y memb e rs) wh e re that i n f o r mation m a y be u s e d b y that p e rson f o r his or h e r p r o f it b y t r a di n g in the s ec u r i t ies of c ompani e s (in c lud i n g the Compa n y) to whi c h the info r mation r e lat e s. Als o, y ou m a y not make r e c om m e n d a t i ons or e x p re ss opin i ons c o n ce rni n g tr a di n g in the Compa n y’s (or a n y other c ompa n y’s) se c u r i t ies based on Mat e ri a l No n-publ i c I n f o r mation.

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| ● | Confid e nt i a l i t y. Un a uth o ri z e d disclosure of in t e r n a l info r mation c ould c re a te s e rious p r oblems for t h e Compa n y, wh e th e r or not the info r mation w a s disclosed for t h e purp o se of c ondu c t i n g i m p r op e r tr a di n g in the C ompa n y’s s e c u r i t ies. Y o u should n o t discuss in t e rn a l Compa n y matt e rs or d e v e lop m e nts with a n y one outs i de the Compa n y, including th r ou g h the use of E-m a il or the I nt e rn e t (in c lud i ng o n-l i ne bul l e t i n bo a rds a nd c h a t r ooms), e x ce pt as re qui r e d in t he p e r f o rm a n c e of y our r e g ul a r job du t ies.

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This p r ohib i t i on a lso a p pl i e s to inqu i ri e s a bout the Compa n y f r om the f inan c ial or busin e ss p re ss, investm e nt a n a l y sts or othe r s in t he fin a n c ial c om m uni t y. Unl e ss y ou a re e x p re ss l y a uthori z e d othe r wise, a ll t h e se c om m unic a t i ons on b e h a lf of t h e Compa n y should b e di r e c ted to a nd h a ndled thr o u g h t h e Chief E x ec ut i ve O f fi c e r o f Consolidat e d W a ter C o. L td. (the “CEO”) or C F O. L ike w ise, sol i c i t a t i on of the m e dia for c o v e ra g e o f c o r po r a te is s u e s, e nt i t i e s a nd/or p e rsonn e l is the sole re spons i bi l i t y of the CEO.

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D E F INI T I O NS

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“F u l l y Dis c losed to t h e G e n e ral P u bl i c”

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“F ul l y disclosed to the g e n e r a l publ i c” me a ns information must have been disseminated in a manner designed to reach investors generally, including filing the information in a Form 8-K or other periodic report with the Securities and Exchange Commission or, in some instances, is s ui n g a p r e ss r e l e a se to in t e rn a t i on a l wi r e s e rvi ce s. A spee c h to a n a udien ce, discussions with the p re ss or s ec u r i t ies a n a l y st s, a T V or r a dio a pp e a r a n ce, or a n a rticle in a n obs c u r e or indust r y fo c used m a g a z ine d o e s n ot quali f y a s f ull disclos u r e. F ul l y disclosed to t h e g e n e r a l publ i c me a ns that the s ec u r i t ies ma r k e ts h a v e h a d the o p portuni t y to d i g e st the n e ws. G e n e r a l l y, two T ra di n g D a y s follo w ing the filing of a Form 8-K or other periodic report and/or the r e le a s e to in t e rn a t i o n a l wire s e rvi ce s will be e nou g h t i me f o r the s ec u r i t ies m a r k e ts t o di g e st t he n e ws.

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If you a r e un s u r e w h e ther i nf o r m a tion has been fully disclosed to the general public, you s h o u ld c o n s u lt w ith t h e CEO or C F O.

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Effective: November 17, 2021

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Mat e rial No n-p u bl i c I n f or m a t ion

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I t is not poss i ble to d e fine a ll c a t e g o r ies of M a te r ial No n-publ i c I n f o r m a t i on. Ho we v e r, info r mation should be r e g a rd e d a s mat e ri a l if t h e re is a re a sona b le l i k e l i hood that i t would be c onsid e r e d i m port a nt to a n investor in making a n inv e st m e nt d ec i sion r e g a rdi n g the pu rc h a s e or s a le o f s e c u r i t ies.

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Mat e rial I n fo r m at i o n

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W hi l e it is sometimes d i f f icult to d e te r m i ne wh e ther info r m a t i on is mat e ri a l, v a rious c a t e g o r i e s of info r mation a re p a rticul a r l y s e nsi t ive a n d, generally, should a lw a y s be c o nside re d mat e r i a l. E x a mp l e s of su c h info r mation are provided below.

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● F inan c ial r e sul t s

● P roj ec t i ons of f uture e a r n in g s or losses

● S i g nifi ca nt ac quis i t i ons of or me r g e rs with other e nt i t i e s, or s a les of si g nif i ca nt a ssets or busin e sses

● S i g nifi ca nt new o r modi f ied c ontr ac ts, pro j ec ts, se rvi ce s or p r od u c t annou n ce ments

● G a in or loss, or c h a n ge i n st a tus, of si g nifi ca nt c u sto m e rs or c ontr a c ts

● S tock splits

● N e w e qui t y or d e bt of f e rin g s

● S i g nifi ca nt e x posure a p pl i ca b l e to, or jud i c ial d ec is i ons a rising f r o m, ac tual or thr ea ten e d l i t i g a t i on

● S i g nifi ca nt g ov e rnm e ntal r e g ulato r y a c t i vi t ies

● Ch a n g e s in s e nior m a n a g e ment

● Ch a n g e s in div i d e nd pol i c y

● S i g nifi ca nt prici n g c h a n g e s

● I mpendi n g b a nkru p t c y or f inan c ial l i quid i t y pro b l e ms

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Either posit i ve OR n e g a t i ve info r mation m a y b e mat e ri a l. I t ca n sometim e s be dif f icult to know wh e th e r inf o rm a t i on would be c onsid e r e d “ma t e ri a l.” The d e t e rmin a t i on of wh e ther info r mation is mat e ri a l is a l m ost a lw a y s made a ft e r the fa c t, w h e n the e f f ec t o f that info r mation on the ma r k e t ca n be q u a nt i fi e d. Althou g h y ou m a y h a ve info r mation a bout the Compa n y o r a nother c ompa n y that y ou do not c onsid e r to be m a te r ial, f e d e r a l re g ulato r s a nd ot h e rs m a y c o n c lude (with the b e n e fit of hindsi g ht) t h a t such info r mation w a s mat e ri a l. Th e r e f o r e, tr a ding in the Compa n y’s or a not h e r c ompa n y’s s ec u r i t ies w h e n y o u possess No n-publ i c Info r mation a bout them ca n be ris k y. W h e n doubt e x i st s, the info r mation should be p r e sumed to be mat e r i a l.

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If you a r e un s u r e w h e ther i nf o r m a tion of wh i c h you a r e a w a r e is m a t e r ia l, you s h o u ld c o n s u lt w ith t h e CEO or C F O.

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Effective: November 17, 2021

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Non-p u bl i c I n fo r m at i o n

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No n-publ i c info r mation, wh e ther mat e ri a l or not, is info r mation that h a s not b ee n ful l y disclosed to the g e n e r a l publ i c a nd is oth e r w ise not a v a i l a ble to the g e n e r a l publ i c. Se e “F u l l y Dis c losed t o the G e ne r al P ub l i c” a bov e.

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S e le c tive Dis c los u r e of M a ter ial No n-p ub l i c I nf o r m a t ion

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I t is a vio l a t i on of Compa n y pol i c y to disclose i n a n y m a nn e r a n y Mat e r ial No n-publ i c I n fo r mation a bout the Co m p a n y to a n y p e rson e x ce pt a s follows: (i) disclosure to a p e rson who h a s si g n e d a n a ppro p ri a te Comp an y a ppro v e d a g re e ment to hold such info r mation in c onfid e n ce; (ii) disclosure to Compa n y p e rsonn e l who n ee d the info r mation to p r ovide g oods a nd s e rvi ce s to the Company and who agree in writing to the CFO to be bound by this Policy; (iii) disclosure to t h e Compa n y’s la w y e rs or a cc ountants if the info r mation disclosed is r e lat e d to a matter on whi c h th e y a re invo l v e d; or (iv) a s a ppro ve d b y the CEO o r the C F O of the Com p a n y. All c om m unic a t i ons with s ec u r i t ies a n a l y st s, a n y s e c u r i t ies p r o fe ss i on a ls a nd r e p r e s e ntatives of la r g e sha r e h olde r s shall be made sole l y b y the Co m p a n y’s CEO a nd C F O, u nless othe r wise sp e c ifical l y a uthori z e d b y the CEO.

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I f y ou should inadv e rt e n t l y s e l ec t i v e l y disclose a n y Mat e r i a l No n-publ i c I n fo r mation to a n y p e rson, Compa n y pol ic y r e qui r e s that such inadv e rt e nt disclosu r e be r e port e d i m medi a te l y to the CEO or the C F O. S u c h inadv e rt e nt disclosure m a y a rise b eca u s e of a m i stak e n b e l i e f a bout the mat e r iali t y or no n-pu b l i c n a ture of the disclosed info r mation, the identi t y of the r ec i pient of such disclosur e, the a ppl i ca bi l i t y of a c onfid e nt i a l i t y a g ree m e nt or nu m e rous other r ea sons. This is n ece ss a r y b e ca u s e a ppl i ca ble l a w m a y r e quire the Compa n y t o pub l ic l y disclose p r o mp t l y the info r mation that h a d b ee n inadv e rt e nt l y disclosed.

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P r o h i b ition on T r a d i n g C o m p a n y S ec u r itie s—Blac k-O u t P er iod

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The C F O h a s the a utho r i t y, wh e n he or she d ee ms it n ece ssa r y or a dvi s a ble b eca u s e of d e v e lop m e nts known to the Compa n y a nd not y e t disclo s e d to the pu b l i c or for oth e r r e a sons, to p r ohib i t a ll A f filiat e s f rom tr a di n g i n Compa n y s e c u r i t ies, (t he “Blac k-Out P e ri o d”). The Black-Out Period may apply to the time, the Trading Window (as defined in this policy), when ordinarily trading in the Company’s securities is permitted. The Blac k-O u t P e r iod s h all c o n tin u e f o r as lo n g a s the C F O s p ec i f i e s. I n the e v e nt of a B la c k-Out P e riod, A f filiat e s m a y not e n g a ge in a n y tr a ns a c t i on invo l ving the pur c h a se or s a le of the Compa n y’s s ec u r i t ies duri n g the a pp l ic a ble p e riod a nd m a y n ot disclose to othe r s the f ac t of s u c h suspen s ion of tr a di n g. T r a ding duri n g a B l a c k-O ut P e riod is a vio l a t i on of th i s P o l ic y a nd m a y r e sult in s e ri o us in t e rn a l a nd e x te r n a l c onse q u e n c e s, including te r m i n a t i on of e mp l o y ment a nd c iv i l a nd/or c rimin a l p r ose c ut i on, fin e s a nd/or p e n a l t ies. To ensure a Black-Out Period is not in effect, any Affiliate planning to trade in the Company’s securities should notify the CFO of their intention to do so prior to initiating any transactions.

Effective: November 17, 2021

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CERTAIN EXCEPTIONS

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The on l y e x ce pt i ons to th i s P ol ic y a re as follows:

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| a) | A n y a uto m a t i c p a y roll d e du c t i ons, pursu a nt to a c ontribution e l e c t i on made b y y o u while not in the possession of Mat e ri a l No n-publ i c I n f o rm a t i on, a nd Compa n y mat c hi n g c on t r ibu t ions t o b u y Compa n y c o m mon stock. |

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| b) | A wa rd p a y outs b y the Compa n y to y ou (i f a p p l i ca ble) un d e r a n y e qui t y-b a s e d c ompens a t i on plans. |

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| c) | Automatic r e investm e nt of div i d e nds, pursu a nt to a n e l e c t i on made b y y o u while not in the possession of Mat e ri a l No n-publ i c I n f o r mation, und e r the S h a r e holder I n v e st m e nt P lan. |

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| d) | A n y t r a nsa c t i on sp e c ifical l y a ppro v e d in w r i t ing in a dv a n c e b y the C F O.

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| e) | E x e r c ise of stock options under equity-based compensation plans for cash or the delivery of previously owned Company stock. However, the sale of any shares issued on the exercise of Company-granted stock options and any cashless exercise of Company-granted stock options are subject to trading restrictions under this Policy.

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I n a ll c a s e s, DISCRE T IONA R Y pu r c h a s e s or s a les of the Compa n y’s s e c u r i t ies b y y ou und e r t h e Compa n y pla n s d e s c ri b e d a bo v e, incl u ding in t e r-fund t r a ns f e rs o f, a nd p a y roll c ontribution inc rea s e s a nd d ec r ea s e s to, are not c onsid e r e d e x e mp t ions t o the Po l i c y.

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PO T ENTIAL CRIMIN A L AND CI V IL LIABI L ITY AN D/OR DI S CIPL I NA R Y ACTION

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As out l ined b e low, the p e n a l t ies for ins i d e r tr a din g, in a ddi t ion to the n e g a t i ve i m p ac t on the Comp a n y’s r e putati o n a nd busin e ss suc ce ss, a re qui t e sever e.

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Liability for Insider Trading

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United S tat e s Fe d e r a l l a w p r ovides that y ou m a y be subj e c t to c iv i l p e n a l t ies of up to $5,000,000, a ddi t ional c r i m inal mon e y p e n a l t ies a nd up to twenty (20) y e a rs in j a il for e n g a g ing in tr a nsa c t i ons in the C ompa n y’s s ec u r i t ies a t a t i me wh e n y ou h a v e knowl e dge of Mat e ri a l Non-publ i c I n f o rm a t i on re g a rdi n g the C o mpa n y.

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Effective: November 17, 2021

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Liability for Tipping

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You m a y a lso be l i a ble for i m p r op e r tr a nsa c t i o ns b y a n y p e rson to whom y o u h a ve disclosed Mat e r i a l No n-p ubl i c Information re g a rd i ng t h e Compa n y or to w hom y ou h a ve made r e c om m e n d a t i ons or e x p re ssed opin i ons on the b a sis of that info r m a t i on a s to tr a ding in the Compa n y’s s ec u r i t ies (“tipping”). T h e S EC h a s i m posed la r g e p e n a l t ies e v e n wh e n the dis c los i ng p e r s on did not pro f it f inan c i a l l y f rom the t r a din g.

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Possible Disciplinary Actions

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I f y ou vio l a te th i s P ol i c y, y ou will a lso b e subj e c t to disciplina r y ac t i on b y the Compa n y, whi c h m a y i n c lude i n e l i g ib i l i t y for futu r e p a rtic i p a t i on in the Compa n y’s e qui t y-b a s e d c ompens a t i on plans or t e rmin a t i on of e mp l o y men t.

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IN D I V ID U AL R ES PO NS I B ILI T Y OF E A CH A FFILI A TE TO COMP L Y WITH PO L I C Y

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You h a ve the in d iv i du a l r e spons i bi l i t y to c omp l y with th i s P o l i c y a g a inst ins i d e r tr a di n g, re g a rd l e ss of wh e ther t he Compa n y h a s r ec o m mend e d a T ra di n g W indow to y ou or a n y o n e e lse. App r opr i a te jud g ment should be e x e r c ised in c onn ec t i on with a n y t r a ding in the Compa n y’s s e c u r i t i e s. The Compa n y e x p ec ts strict c omp l ian c e with the fo r e g oi n g pol i c ies b y a ll p e rsons s u bje c t to th i s P ol ic y. Fa i l u r e to ob s e rve the g ui d e l i n e s m a y r e sult in s e rious le g a l dif f i c ul t ies for y ou, a s w e ll a s the Compa n y. A f a i l u r e to follow the letter a nd spirit of the P ol ic y w ould be c onsid e r e d a ma t ter of e x tr e me s e rious n e ss.

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THE F O L LOWING I N F O R M ATI O N DE S C R I B ES A D DITIONAL RE S TRI C TIONS A ND REQUI R E M ENTS THAT AP P LY ONLY TO DI R ECTORS, EXE C UTIVE OF F ICERS A N D CERTAIN A F F I L IAT E S WHO HAVE B EEN N O T I F I E D BY T H E C F O:

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REPORTING S H A RE OW N ER S HIP AND TR A NS A CTI O NS; D I S G O RGEM E NT OF S HORT-S WING P R OFITS

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I n t r o du c tion

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All Dir e c tors, E x ec ut i ve O f fi c e rs a nd holde r s of more than 10% of the Compa n y’s e qui t y s ec u r i t ies must r e port to the United S tat e s S ec u rities a nd E x c h a nge Com m is s ion (the “S EC”) a ll of their hold i n g s of a nd tr a n s ac t i ons in the Compa n y’s e qui t y s ec u r i t ies a nd must dis g o r g e to t h e C o mpa n y a n y p r o fits r e a l iz e d f r om b u y i n g a nd s e l l ing (o r s e l l i n g a nd b u y i n g) such s ec u r i t ies with i n a n y si x-mon t h p e riod. P u r suant to Sec t i on 16 of the S ec u r i t ies E x c h a n g e A c t of 1934 (the “1934 A c t”), a n y p e rson who b ec o m e s a Dir e c tor, E x ec ut i ve O f fi ce r or holder of

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more than 10% of the Compa n y’s e qu it y s ec u r i t ies is r e quir e d to file a r e port of b e n e fi c i a l own e rship with the S EC a nd must do so wh e n e v e r the r e is a c h a n g e o f b e n e fi c ial own e rship. All d e l inquent filin g s must be d isclosed in the Compa n y’s a nn u a l g e n e r a l me e t i ng p ro x y stat e ment (w i t h the d e l i nqu e nt ind i viduals identifi e d b y n a me), a nd d e l i nqu e nt fil i n g s c a n trig g e r m o n e ta r y fin e s for t he late f i l e r.

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Although the obligation to disclose beneficial ownership of the Company’s equity securities is on the person required to make such disclosure and not the Company, the failure to timely file the appropriate form with the SEC reflects poorly on the Company. Therefore, the Company will assist persons with the filing of the required form.

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B e n e f icial O w n er s h ip S ta t e me n ts

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Th re e t y p e s o f re p o rts a r e re qui r e d to be f i l e d un d e r Se c t i on 16(a) of the 1 9 34 A c t:

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| ● | Form 3: Initial Statement of Beneficial Ownership of Securities. This form indicates a person’s beneficial ownership of equity securities of the Company (including derivatives securities) and must be filed by persons who have not previously filed such a statement with the SEC. The requirement to file a Form 3 arises when a person becomes a Director or is appointed an Executive Officer or becomes a 10% equity holder. Even if a Director or Executive Officer has no direct, indirect or beneficial interest in the Company’s equity securities, a Form 3 must be filed informing the SEC of the person’s relationship with the Company. Form 3 statements must be filed within 10 days after the occurrence of the event which necessitated the filing of the statement. |

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| ● | Form 4: Statement of Changes of Beneficial Ownership of Securities. Once a Form 3 has been filed for a person, and as long as that person remains a Director, Executive Officer or 10% stockholder (and for up to six months after a person ceases to be a Director or Executive Officer), a Form 4 must be filed whenever any of the following takes place: (i) a change in the number of equity securities (including derivative securities) beneficially owned or (ii) a change in the nature of beneficial ownership as previously reported to the SEC. Form 4 statements must be filed within two (2) business days of the date on which the event or transaction occurred which necessitated the filing. |

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| ● | Form 5: Annual Statement of Beneficial Ownership of Securities. Form 5 must be filed for any person who has been a Director, Executive Officer or 10% holder for any part of the Company’s fiscal year to disclose: (i) acquisitions during any six-month period aggregating less than $10,000; (ii) all transactions that should have been reported in the last fiscal year but were not; and (iii) all exempt transactions, except in the case of (i), (ii) or (iii) as were reported on a Form 4. If required, a Form 5 must be filed within 45 days after the end of the Company’s fiscal year. |

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TR A DI N G WIN D OW AND ANN U AL C E RTIF I CATION

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The following stan d a rds a pp l y on l y to:

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| ● | Directors; |

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| ● | E x ec ut i ve O f fi ce rs (tho s e o f fi c e rs who a re subj e c t to the p r ovis i ons of Sec t i on 16 of the 1934 A c t - n a me l y t he re p o rting o f b e n e fi c ial own e rship on F o r ms 3, 4 and 5 a nd p r ohib i t i on on short-swing p r o fits); a nd |

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| ● | ce rt a in A f f i l iat e s of t h e Compa n y who h a ve b ee n s e p a r a te l y not i fi e d that these p r ovis i ons a pp l y to them. Annu a l l y, or wh e n other si g nifi c a nt e v e nts o cc u r, the A f filiat e s subj ec t to the s e stand a rds will be r e vi e w e d a nd ind i viduals will be a d d e d or r e moved f r om c ov e ra g e a s n e ce ssa r y. You will be not i fi e d if the r e is a n y c h a n ge in y o ur status. Notifi ca t i o n shall be in w r i t ing via letter or e le c tronic c om m unic a t i on with evid e n c e of re ce ipt b y the notifi e d p a r t y. |

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T r a d i n g Wi n d o w

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C e rt a in t i mes during the y e a r a r e p a rticul a r l y s e nsi t ive p e riods for tr a nsa c t i ons in the Compa n y’s s e c u r i t ies. T his s e nsi t iv i t y is due to t he f a c t that D i r e c tors, E x ec ut i ve O f fi ce rs a nd c e rt a in ot h e r A f fili a tes wil l, duri n g that p e r i od, o f ten h a ve knowl e d g e of Mat e r i a l No n-publ i c I n f o r m a t i on a bout t he e x p ec ted f ina n c ial r e sul t s for the q u a rt e r.

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To a ss i st in c omp l y i ng with ins i d e r tr a ding l a ws, the Compa n y utilizes a “Tr a di n g Window”, which op e ns after the c losing of the Nasdaq stock market on the s ec o n d T r a d i n g Day following the d a te o f publ i c disclosure of the C ompa n y’s fin a n c i a l r e sul t s for a p a rticul a r fis ca l qu a rt e r or y e a r, a n d c loses a t t he c lose of the Nasdaq stock market on t he t w e n ty-f irst T r a d i n g Day following the d a te the Company’s fin a n c i a l r e sul t s a re disclo s e d. A ll Dire c tors a nd E x ec ut i ve O f fi ce rs o f the Compa n y a nd e a c h other A f filiate identifi e d b y the C F O m a y not c ondu c t tr a ns a c t i ons invo l ving the pur c h a se or s a le of the Compa n y’s s e c u r i t ies (i n c lud i ng the e x e r c ise o f stock opt i ons) other t h a n duri n g the Tr a di n g W indow. Furthermore, the ability to purchase or sell the Company’s securities within the Trading Window immediately ceases if Mat e r i a l No n-publ i c I n f o r m a t i on arises during the Trading Window. The p r e f e r r e d p e riod for tr a di n g in the Compa n y’s s ec u rities i s g e n e r a l l y the f irst t e n trading d ays of eac h T ra di n g W indow, assuming Material Non-public Information has not arisen during that time.

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You should inquire of the CFO if you are uncertain wh e n the quarterly T r a di n g W indow op e ns a nd c los e s and, regardless of the Trading Window, you should notify the CFO of your

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intention to trade in the Company’s securities prior to initiating any transactions. You will be g i v e n w r i t ten not i c e via email if the C F O e x e r c i s e s his or h e r a uthori t y to c lose the T ra di n g W indow ea r l y, b y i m posit i on of a B l ac k-Out P e r iod. I f a t a n y t i me the C F O c lo s e s the T ra di n g W indow ea r l y, t his f a c t should not be di s c losed to the publ i c, a nd y o u will not be p e rmit t e d to m a ke tr a d e s during such B l a c k-Out P e riod.

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The purp o se of the T ra d ing W indow is to h e lp e stablish a di l i g e nt e f f o r t to a void a n y violation of ins i d e r tr a ding la w s. You should know, how e v e r, that e v e n during the T ra di n g W indow, if y ou h a ve knowl e d g e of Mat e ri a l No n-publ i c I n fo r mat i on c on ce rni n g the Compa n y, y ou m a y n ot initiate a n y tr a ns a c t i ons in the C o mpa n y’s s ec u rities unt i l such info r mation h a s b ee n fully disclosed to the g e n e ral publ i c for a t le a st t w o T r a d i n g Da y s, wh e ther or not the C F O h a s r e c om m e n d e d a sus p e nsion of tr a ding to y ou. Tradi n g in t h e C o m pa n y’s s ec u ri t ies d u ri n g t h e Tradi n g W i n dow s h o u ld n ot be c o n sider e d a “safe h arbor,” a n d y ou s h o u l d always use good judgment. I n a ddi t ion, a t r a nsa c t i on that m a y be n ece s s a r y or s ee m jus t ifiable for indep e nd e nt r e a sons (in c lud i n g a n ee d to r a ise mon e y for a p e rson a l f inan c ial re a son) is n e i t h e r a n e x ce pt i on to th i s P ol ic y nor a s a fe g u a rd a g a inst pro s e c ut i on f o r violation of insid e r t ra di n g la w s.

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An nu al C er ti f ica t ion

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To e nsure c omp l ian c e w i t h th i s P ol ic y, a ll Dire c t o r s and a ll E x ec ut i ve O f fi c e rs (a nd, if applicable, ce rt a in other A f filiat e s who h a ve b ee n so not i fi e d b y the C F O) a r e r e qui r e d to c e rt i f y annually t h a t th e y h a ve c o m pl i e d with th i s P ol ic y a t a ll t i mes f r om the d a te h e r e of (or such less e r t i me a s y ou h a ve b ee n c ov e red und e r the P ol ic y). This certification shall be obtained in connection with the completion by each Director and Executive Officer of the D&O questionnaire circulated for the purpose of preparing the Company’s annual proxy statement.

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ADDITIONAL RESTRICTIONS

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THE F O L LOWING I N F O R M ATI O N DE S C R I B ES A D DITIONAL RE S TRI C TIONS A ND REQUI R E M ENTS THAT AP P LY ONLY TO DI R ECTORS AND EXEC U TIVE O F F ICER S.

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P RE-CL E A R A N CE O F TR A DES A N D P O S T-TR A DE NO T I F IC A T I ON

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The f ol l owing stan d a rds a pp l y on l y to:

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● Dir e c tors,

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● E x ec ut i ve O f fi ce rs (tho s e o f fi c e rs who a re subj e c t to the p r ovis i ons of Sec t i on 16 of the 1934

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A c t - n a m e l y t h e r e p o rting o f b e n e fi c ial own e rship on F o r m 3, 4 a nd 5 a nd p r ohib i t i on on short-swing pr o fits), and

● Spouses or other persons living in such Directors or Executive Officers’ household or to entities over which such person exercises control.

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P r e-C l e a r a n c e of T r a de s

Dir e c tors a nd E x ec ut i ve O f fi ce rs m a y on l y tr a de in the Compa n y’s s e c u r i t ies wh e n the T ra di n g W indow is o p e n (a nd a ssu m ing a B l ac k-Out P e riod h a s not b e e n i m pose d), a nd then on l y with the p r ior a ppro va l of the Comp an y’s C F O. T ra di n g sub j ec t to the p r e-c le a r a n c e inclu d e s a n y p u rc h a se o r s a le volun t a ri l y made b y o r dir ec ted b y y ou und e r t h e Compa n y’s b e n e fit pla n s. You must obtain pre-clearance from the CFO via email to purchase or sell any of the Company’s securities or to exercise any Company stock options. No r mal l y, t h e C F O will a ppro v e, a s c onsistent with this P ol ic y, a n y tr a n s ac t i on that c omp l ies with t h is P ol ic y a nd a ppl i ca ble s ec u r i t ies l a w a nd that o cc u r s d u ring a n op e n T ra di n g W indow.

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The C F O must a dvise y ou with i n two (2) busin e ss d a y s of r ece ipt of y o u r p r e-c le a r a n c e r e qu e st w h e ther s u c h r e q u e st is a p p r ov e d o r disa p p r ov e d. T h e d a te o f r ec e ipt of the p r e-c le a r a n c e r e qu e st b y the C F O is c onsid e r e d to be the fi r st busin e ss d a y.

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P os t-T r a d e No t i f ica t ion

Dir e c tors a nd E x ec ut i ve O f f i ce rs must r e port eac h tr a ns a c t i on in s e c u r i t ies of the Compa n y to the C F O via email wi t hin one (1) busin e ss d a y of the trade da t e.

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EXCEPTION FOR T RA DI N G P L ANS

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Notwithstanding the r e s t ri c t i ons a nd p r ohib i t i ons on tr a ding in the Compa n y’s s e c u r i t ies s e t fo r th in th i s P ol ic y, p e rsons subj ec t to th i s P ol ic y a re p e rmit t e d to e f f e c t tr a ns a c t i ons in the Compa n y’s s ec u r i t i e s pursu a nt to a ppro ve d t r a di n g plans e stablis h e d und e r Rule 10b5-1 und e r the S ec u r i t ies E x c h a nge A c t o f 19 3 4, including t r a nsa c t i ons during B l a c k-Out P e riods. Rule 10 b 5-1 r e quir e s that these tr a nsa c t i ons be made pursu a nt to a plan that w a s e s t a bl i shed w hi l e the p e rson w a s n o t in possession of Ma t e ri a l N on-publ i c Info r mation. I n o rd e r to c omp l y with th i s P ol ic y, the C F O must r e view a n d a ppro v e a n y such tr a di n g plan p r ior to i t s e f fec t i v e n e ss pursu a nt to the s a me t i me f ra me a nd not i fi ca t i on r e qui r e ments a s r e quir e d for the p r e-c le a r a n c e o f t r a d e s. I nsi d e rs s e e king to e stablish a tr a ding plan s hould c onta c t the Com p a n y’s C F O. Rule 10b 5-1 tr a ding plans m a y on l y b e e s t a bl i shed during the tr a di n g window p e riods s e t fo r th in the “T r a di n g W indow” se c t i on of th i s P ol ic y. I f a tr a di n g p l a n i s ap p rov e d b y the Compa n y, it c a n on l y be mod i fi e d du r i n g the t r a ding window p e riods a s s e t fo r th he r e in.

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IN Q UIRIES

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P le a se dir ec t y our q u e st i ons a s to a n y of t h e matte r s discuss e d in th i s P ol i c y to the C F O or if the C F O is un a v a i la ble, the CEO.

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INS I D E R T RADING P O L I CY QUICK R E F E RENCE

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Cov ere d I nd iv idu als

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All A f filiat e s, reg a rdl e ss of posit i on, a re subj ec t t o the I nsider T r a di n g P ol ic y. The C F O will be responsible for monitoring adherence to t h e I nsider T r a ding P ol i c y.

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P r o h i b ition

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You m a y not tr a de s e c u r i t i e s while in the possess i on of Mat e ri a l Non-publ i c I n fo r mation, nor d u r ing a B la c k-Out P e riod of whi c h y ou h a ve b ee n info r med.

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T r a d i n g Wi n d o w, P r e-c lea r a n c e of T r a d e s, a n d P os t-t r a d e No t i f ica t ion

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Dir e c tors, E x ec ut i ve O f f ic e rs a nd c e rt a in A f filia t e s who h a ve b ee n not i fi e d b y the C F O m a y t r a de in t h e Comp an y’s s ec u r i t ies on l y d u ring a T r a ding W indow e ac h qu a rt e r, a s discuss e d in the I nsi d e r T ra di n g P ol i c y (a nd o n l y if a B la c k-Out P e r i od is not then i m posed on them). Dir e c tors a nd E x ec ut i ve O f fi c e rs m a y tr a de in the Compa n y’s s ec u r i t ies on l y a f t e r obt a in i ng p r e-c le a r a n c e of the tr a de f r om t he C F O a n d must p r ovi d e pos t-tr a de not i fi ca t i on to the C F O. Ho we v e r, no Dir e c tor, E x ec ut i ve O f f i ce r or A f filiate of the Compa n y m a y tr a de a t a n y t i me, wh e ther or not during a T ra ding W indow, wh e n in possession of Mat e ri a l No n-publ i c I n f o rm a t i on, e x ce pt p u rsu a nt to a n a ppro ve d Ru l e 10b5-1 plan.

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