|
MTM Technologies, Inc. (the "Company")
Insider Trading Policy
November 9, 2005;
updated April 2, 2008
1.General
Federal securities laws prohibit trading in
the securities of a company on the basis of "inside"
information. Anyone violating these laws is subject to personal
liability and could face criminal penalties. The Company takes
seriously our obligation, and that of our associates, to prevent
insider trading violations. In light of the severity of the
possible sanctions, both to you individually and to us as a
company, we have established this Insider Trading Policy to
assist all of us in complying with our obligations. Any
violation of this or any other Company policy could subject you
to disciplinary action, up to and including termination.
This policy is not intended to replace your
responsibility to understand and comply with the legal
prohibition on insider trading. If you have specific questions
regarding this policy or the applicable law, contact our
Compliance Officer (see Section 7(a)).
2. Statement of Policy
No Insider (see Section 5(b)) may buy or
sell our securities at any time when they have Material
Non-Public Information relating to us (see Section 5(c)).
No Insider may buy or sell securities of
another company at any time when they have Material Non-Public
Information about that company, including, without limitation,
any of our customers, vendors or suppliers, when that
information is obtained in the course of services performed on
our behalf.
No Insider may disclose our Non-Public
Information to third parties.
No Insider may disclose ("tip") Material
Non-Public Information to any other person (including family
members), and no Insider may make recommendations or express
opinions on the basis of Material Non-Public Information with
regard to trading in securities.
No Insider who receives or has access to our
Material Non-Public Information may comment on stock price
movement or rumors of other corporate developments that are of
possible significance to the investing public unless it is part
of your job (such as Investor Relations) or you have been
specifically authorized by the CEO or CFO in each instance.
If you comment on stock price movement or
rumors, or disclose Material Non-Public Information to a third
party, you should contact promptly the Compliance Officer.
No Insider may buy or sell our securities
during any "Blackout Period" (see Section 5(a)).
This policy continues in effect until the
end of the first Blackout Period after termination of employment
or other relationship with us.
3. Certain Exceptions
The prohibition on trading in Company
securities set forth above does not apply to:
(i) The exercise of stock options for
cash under our stock option plans (but not the sale of any
such shares), since we are the other party to the
transaction and the price does not vary with the market but
is fixed by the terms of the option agreement;
(ii) If it becomes available as an
investment option, the purchase of stock through a Company
stock fund of the Savings and Investment Plan (401(k)) or
through any approved employee stock purchase plan, in each
case through regular payroll deductions; however, the
election to transfer funds into or out of the stock fund or
to sell such shares is subject to this policy; and
(iii) Purchases or sales made pursuant
to a binding contract, written plan or specific instruction
(a trading plan) which is adopted and operated in compliance
with Rule 10b5-1.
If it becomes available as an investment
option, the purchase of stock through a Company stock fund of
the Savings and Investment Plan (401(k)) or through any approved
employee stock purchase plan, in each case through regular
payroll deductions; however, the election to transfer funds into
or out of the stock fund or to sell such shares is subject to
this policy.
4. Pre-clearance of Trades/Suspension of
Trading.
(a) Insiders Requiring Pre-Clearance.
Certain Insiders must contact our Compliance Officer to
obtain "pre-clearance" at any time prior to buying or
selling our securities. Individuals subject to this
pre-clearance requirement are:
(i) Section 16 Individuals.
All members of our Board of Directors and our executive
officers. We will inform each person who is subject to
the reporting and penalty provisions of the federal
securities laws that they are deemed to be a "Section 16
Individual". Section 16 Individuals must comply with the
pre-clearance requirement for six (6) months after the
termination of their status as a Section 16 Individual.
(ii) Other Restricted Persons.
From time-to-time we will notify other persons that they
are subject to the pre-clearance requirement if we
believe that, in the normal course of their duties, they
are likely to have regular access to Material Non-Public
Information ("Other Restricted Persons"). Examples of
persons subject to pre-clearance by virtue of their jobs
are members of the executive leadership team and their
administrative staff, and members of the legal, investor
relations, finance and business development departments.
Occasionally, certain individuals may have access to
Material Non-Public Information for a limited period of
time. During such a period, such persons may be notified
that they are also subject to the pre-clearance
procedure.
(b) Suspension of Trading. From
time-to-time, we may recommend that Directors, officers,
selected employees and others suspend trading in our
securities because of developments that have not yet been
disclosed to the public. All those affected should not trade
in our securities while the suspension is in effect, and
should not disclose to others that we have suspended trading
for certain individuals.
5. Definitions
(a) Black-Out Periods. (i) Four
Blackout Periods begin at midnight of the fourteenth day of
the last month of each fiscal quarter (March, June,
September, and December are currently the last months of our
fiscal quarters) of each year, and end when two full trading
days have passed on the NASDAQ Stock Market ("NASDAQ"), or
the applicable exchange, after we announce our complete
financial results for the preceding fiscal period; and (ii)
Any other period as may be established from time to time by
the Board of Directors, the CEO, the CFO or the General
Counsel in light of particular events or developments
affecting the Company.
Assuming the NASDAQ is open each day, below
is an example of when you can trade:
| Announcement Day |
First Day You Can Trade |
| Monday Before Market Opens |
Wednesday |
| While Market is Open
Monday |
Thursday |
(b) Insiders. Company
"Insiders" are (i) members of our Board of Directors,
our corporate officers and our employees; (ii) our
consultants and other persons associated with us and our
subsidiaries, including distributors, sales agents and
joint venture partners, who receive or have access to
our Material Non-Public Information; and (iii) household
and immediate family members of those listed in (i) and
(ii).
(c) Material Information.
Information is deemed to be material if there is a
reasonable likelihood that it would be considered
important to an investor in making a decision regarding
the purchase or sale of securities. While it is not
possible to define all categories of material
information, there are various categories of information
that are particularly sensitive and, as a general rule,
should always be considered material. Examples of such
information include:
-
Financial results
-
Projections of future earnings
or losses
-
News of a pending or proposed
merger
-
Acquisitions /Divestitures
-
Impending bankruptcy or
financial liquidity problems
-
Gain or loss of a substantial
customer or supplier
-
Changes in dividend policy
-
New product announcements of a
significant nature
-
Significant pricing changes
-
Stock splits • New equity or
debt offerings
-
Significant litigation exposure
due to actual or threatened litigation
-
Major changes in senior
management.
Either positive or negative
information may be material.
(d) Non-Public Information.
Non-Public Information is information that has not been
disclosed to the general public and is not available to
the general public. Non-Public Information will be
deemed to be public after two full trading days have
passed on the NASDAQ following the date when the
information is disclosed publicly. See the example above
in section 5(a) for assistance in determining when you
can trade.
(e) Securities. Securities
include common stock, preferred stock, options to
purchase common stock, warrants, convertible debentures
and derivative securities.
6. Potential Criminal And Civil
Liability And/Or Disciplinary Action
(a) Individual Responsibility.
Each person is individually responsible for complying with
the securities laws and this policy, regardless of whether
we have prohibited trading by that person or any Insider.
Trading in securities outside the Blackout Periods or
suspension periods should not be considered a "safe harbor",
although the safest period for trading in the Company's
securities, assuming the absence of Material Non-Public
Information, is generally the first ten trading days
following the end of the Blackout Period. The Blackout
Periods are particularly sensitive for transactions in the
Company's stock for compliance with applicable securities
laws. This is because officers, Directors and certain other
employees will, as any quarter progresses, be increasingly
likely to possess Material Non-Public Information about the
expected financial results for the quarter. The matters set
forth in this policy are guidelines only, and appropriate
judgment should be exercised in connection with all
securities trading.
(b) Potential Sanctions.
(i) Liability for Insider Trading.
Insiders may be subject to substantive financial
penalties and substantial prison sentences for
trading in securities when they have Material Non-Public
Information.
(ii) Liability for Tipping.
Insiders may also be liable for improper transactions by
any person (commonly referred to as a "tippee") to whom
they have disclosed Material Non-Public Information, or
to whom they have made recommendations or expressed
opinions on the basis of such information about trading
securities. The Securities and Exchange Commission (the
"SEC") has imposed large penalties even when the
disclosing person did not profit from the trading. The
SEC, the stock exchanges and the National Association of
Securities Dealers, Inc. use sophisticated electronic
surveillance techniques to uncover insider trading.
(iii) Possible Disciplinary Actions.
Associates who violate this policy will be subject to
disciplinary action, which may include ineligibility for
future participation in our equity incentive plans or
termination of employment.
7. Compliance Officer
(a) Identity of Compliance
Officer. Our Compliance Officer is our General
Counsel. In the event the General Counsel is not
available the Compliance Officer shall be our Chief
Financial Officer. We may, in our sole discretion,
change the Compliance Officer from time-to-time.
(b) Duties of Compliance Officer.
The duties of the Compliance Officer, or his or her
designee, which may be executed on the advice of
counsel, shall include, but not be limited to:
(i) Determining who the Section
16 Individuals are and notifying them.
(ii) Determining who the Other
Restricted Persons are and notifying them.
(iii) Pre-clearing all
securities transactions by Section 16 Individuals
and Other Restricted Persons to determine compliance
with this policy, insider trading laws and other
applicable securities laws and regulations.
(iv) Assisting Section 16
Individuals in the preparation and filing of Section
16 reports (Forms 3, 4 and 5).
(v) Serving as the Company's
designated recipient of copies of reports filed with
the SEC by Section 16 Individuals.
(vi) Reminding all Section 16
Individuals periodically of their reporting
obligations.
(vii) Performing periodic
cross-checks of available materials, which may
include Forms 3, 4 and 5, Forms 144, Schedules 13D
and G, officers' and Directors' questionnaires, and
reports received from our stock administrator and
transfer agent, to determine trading activity by
officers, Directors and others who have, or may
have, access to Material Non-Public Information.
(viii) Circulating this policy
(and/or a summary) to all employees, including
Section 16 Individuals, and providing this policy
and other appropriate materials to new officers,
Directors and others who have, or may have, access
to Material Non-Public Information.
(ix) Assisting our Board of
Directors in implementation of this policy.
(x) Compliance activities with
respect to Rule 144 sales of our stock.
8. Additional Information - For Section
16 Individuals
Section 16 Individuals must also comply
with the reporting obligations and limitations on
"short-swing" transactions set forth in the federal
securities laws. The practical effect of these provisions is
that Section 16 Individuals who both purchase and sell the
Company's securities within a six-month period must refund
all profits from the sale to the Company, whether or not
they had knowledge of any Material Non-Public Information.
Under these provisions, and so long as certain other
criteria are met, the receipt of options under the Company's
option plans, the exercise of that option, and the purchase
of shares through the Company's 401(k) Savings and
Investment Plan is not subject to these restrictions;
however, the sale of any such shares is subject to this
6-month rule. Additionally, Section 16 Individuals may never
make a short sale of the Company's stock. The Company has
provided, or will provide, separate memoranda and other
appropriate materials to its Section 16 Individuals
regarding compliance with these rules.
Corporate Policies
Insider
Trading Policy
Audit
Committee Charter
Compensation Committee Charter
Corporate Governance Committee Charter
Corporate Governance Guidelines
Code of
Business Conduct & Ethics
|