SGI upholds sound corporate governance principles not only because we are required to by law but because it is good business - good for customers, good for partners, good for investors, good for employees. SGI has long been committed to the highest standards of ethical behavior and integrity. These standards are part of our core values and govern our interactions with all of our stakeholders.

SGI's Board, which is predominantly composed of independent directors, has adopted Corporate Governance Guidelines (PDF 47K) and written charters for each of the Board's three standing committees: audit, compensation and corporate governance. The members of the Board participate in periodic director education programs (both internal and external) to stay well-informed about our business and financial affairs and to enable them to fulfill their oversight responsibilities.

Components of our commitment to corporate governance include:

• Four of the five directors are independent of SGI and its management
• SGI has an independent Chairman of the Board
• The Board has adopted clear and concise corporate governance principles
• All committee members are independent directors
• Our Board meets independently of management on a quarterly basis
• We adopted our Code of Business Conduct and Ethics (PDF 799K) which is reviewed and reassessed annually by our audit
• We have a communications channel available to all employees to enable anonymous reporting of any questionable activities directly to the Audit Committee.