This model policy is intended for adoption by companies receiving emergency lending from the federal government. If other companies are interested in adopting these guidelines, they may choose to alter metrics based upon industry size, company size and market sector. Developed by the American Hotel and Lodging Association, Destination Marketing Association International, International Association of Exhibitions and Events, Meeting Professionals International, National Business Travel Association, Professional Convention Management Association, Society of Incentive Travel Executives and theU.S. Travel Association.

Model Board Policy for Approval of Meetings, Events and Incentive/Recognition Travel

1. General policy statement: The CEO shall be responsible for implementing
adequate controls to assure that meetings, events and incentive/recognition
travel organized by the company serve legitimate business purposes and are
cost justified.

2. All proposed meetings, events and incentive/recognition travel organized by
the company must serve one or more specified legitimate business purposes
(see representative listing attached). Each proposed meeting, event or
incentive/recognition travel with a cost exceeding $75,000 must be
supported by a written business case identifying a specific business
purpose.

3. Total annual expenses for meetings, events and incentive/recognition travel
shall not exceed 15 percent of the company’s total sales and marketing
spend.

4. The amount spent for an employee performance incentive/recognition event
shall not exceed two (2) percent of the total compensation of eligible
participants or 10 percent of total award earners’ compensation.

5. The process for approving meetings, events and incentive/recognition
travel, and the procedures for assuring adherence to this policy, will be
subject to independent audit to confirm policy adherence.

6. At least 90 percent of incentive program attendees shall be other than
senior executives (as defined by applicable Treasury Department guidelines)
from the host organization.

7. Performance incentives shall not promote excessive or unnecessary risktaking
or manipulation of financial results.

8. All internal meetings or events attended only by senior executives (as
defined by applicable Treasury Department guidelines) and/or board members
shall be devoted to specific business purposes, and participating senior
executives shall be responsible for any expenses incurred for non-business
related activities.

9. The CEO of the company shall certify to the board at least annually that
the foregoing policies are being followed, and are sufficient to provide
reasonable assurance that the company’s expenditures for such purposes are
not excessive.

10. These policies shall be subject to modification only with board approval
stating the specific business rationale for the change in policy.

As with all business expenditures authorized in these challenging circumstances,
all proposed expenditures for meetings, events and incentive/recognition travel
should be made to strengthen the competitive position of the company in the
marketplace and position the company for the creation of long-term value and
growth. 

Legitimate business purposes formeetings, events and incentive/recognition travel:

• Effective product launches to educate sales force, channel partners and
customers.

• Sales conferences and employee meetings to align vision, strategy and
tactics.

• Training and staff development meetings – learning environments conducive to
adult learning and professional development, improving participants' skills
at their trade and/or their familiarity with the company's products or
services.

• Employee recognition programs to motivate and reward employees for
achievement and productivity.

• Professional conferences that provide networking, education and best
practice sharing across companies and industries.

• Performance incentives with clear rule structures that are designed to
motivate and reward high performers for exceeding established goals that
generate incremental revenue growth for their respective organizations and
that are beyond the investment in the program.

• User conferences for customers utilizing the company's products or services
to obtain feedback, build networks, provide product training and capture
ideas for enhancements to the company's product offerings.

• Product development events designed to generate feedback for research and
development purposes.

• Corporate-sponsored events that further charitable purposes.

• Trade shows and similar events that bring prospective buyers and sellers
together.

• Strategic, business and financial planning and review meetings.

• Employee meetings as a result of company mergers and/or acquisitions for the
purpose of alignment of products, brands and cultures.