interest question involving the CEO or other executive officers (as determined under Rule 16a- 1(f) of the Securities Exchange Act of 1934) of the Company, taking into consideration the recommendation of the Audit Committee. The Company will not make any personal loans or extensions of credit to directors or executive officers. No director (other than employee directors) or family member may provide personal services for compensation to the Company. XII. REPORTING CONCERNS TO INDEPENDENT DIRECTORS OR THE AUDIT COMMITTEE Anyone who has a concern about Applied’s conduct or about its accounting, internal accounting controls or auditing matters may communicate that concern directly to any independent director, the Audit Committee or the Ethics and Compliance organization. Such communications may be confidential or anonymous, and may be e-mailed or submitted in writing to designated addresses, or reported by phone to a confidential, global, toll-free phone number. All such concerns will be forwarded to the appropriate directors for their review, and will be simultaneously reviewed and addressed by Applied’s Ethics and Compliance organization in the same way that other concerns are addressed by the Company. The status of all outstanding concerns addressed to the independent directors or the Audit Committee will be reported to the directors on a quarterly basis, or more frequently if circumstances warrant. The independent directors or the Audit Committee may direct special resources, including the retention of outside advisors or counsel, for any concern as appropriate. The Company’s Standards of Business Conduct prohibit any employee from retaliating or taking any adverse action against any member of the Company’s workforce for raising or helping to resolve an integrity concern. XIII. COMPENSATION OF INDEPENDENT DIRECTORS The Human Resources and Compensation Committee is responsible for reviewing and approving compensation and benefits, including stock options and restricted stock units, for independent directors. In discharging this duty, it is guided by three goals: compensation should fairly pay directors for work required on behalf of a company of Applied’s size and scope; compensation should align directors’ interests with the long-term interests of stockholders; and the structure of the compensation should be transparent and easily understandable. The Human Resources and Compensation Committee will review independent director compensation and benefits from time to time. XIV. ANNUAL COMPENSATION REVIEW OF SENIOR EXECUTIVES The Human Resources and Compensation Committee annually determines the CEO’s salary, bonus and other incentive and equity compensation and, in connection with such determination, reviews and approves the goals and objectives assigned to the CEO and evaluates the CEO’s performance in light of these goals. The committee also annually reviews and approves the principal elements of total compensation for the Company’s officers and such other key employees as the committee determines to be appropriate. Corporate Governance Guidelines 3.11.2022 9
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