CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
EXHIBIT 10.37
Agency Name: Xxxxxxx Xxxxxxxx Xxxxxxxx Inc.
ADVERTISING/MARKETING PROMOTION AGENCY AGREEMENT
This sets forth the Agreement between the above-named advertising, marketing or
promotion firm ("Agency") and American Express Travel Related Services Company,
Inc. ("American Express") concerning the provision to American Express of
advertising, marketing, promotion or similar services. This contract is
effective as of October 1, 1997.
1. Services Provided to American Express. Agency shall provide to American
Express the services described in Exhibit 1 as attached. (In the event of any
conflict between any exhibit and this Agreement, the terms of this Agreement
shall control.) The Services shall be provided in a professional manner to
American Express' reasonable satisfaction.
2. Fees and Costs. (a) Fees - Agency shall be paid as set forth in Exhibit 2 as
attached. If any of the Services to be provided are covered by the ratecard
published by American Express, the fees to be paid will be as set forth on
such ratecard. Such fees are in lieu of any and all commissions except those
commission set forth in Exhibit 2, markups or other payments to Agency, other
than reimbursable expenses as provided herein.
(b) Third-Party Costs. American Express will reimburse Agency at Agency's
cost (without markup or commission) for reasonable expenditures paid to
third parties and incurred for necessary artwork, engraving,
electrotyping, typography, translations and all other materials involved
in the mechanical production of marketing material, advertising, radio
and television production and all their associated costs, talent, music,
photographs, testimonials and all other marketing and advertising
adjuncts, including expenditures in connection with acquiring
authorization for the use of the names or photographs of individuals.
Such costs shall be reimbursed only if American Express' approval was
obtained before such costs are incurred. Any of the third party services
specified in the this paragraph, which are covered by ratecards published
by American Express from time to time, shall be billed by Agency to
American Express at the rates no more than those specified in the
ratecards and shall not be included in Agency fee.
(c) Internal Costs. American Express will reimburse Agency at Agency's cost
(without xxxx-up or commission) for reasonable expenses, including:
. transportation, hotels and meals, of Agency personnel in connection
with travel made in furtherance of this Agreement, in conformance with
American Express' Travel and Entertainment Guidelines attached hereto
as Appendix 1 and Appendix la. No such travel shall be undertaken
without American Express' prior approval and any travel expenses in
excess of $500.00 must be approved in advance by Client. Agency shall
not charge for local travel expenses incurred for in-town trips;
1
. messenger, packing, forwarding, tape duplication and the like, and
express delivery, if approved in advance by American Express.
. American Express shall not reimburse Agency for any other out-of-
pocket expenses, including without limitation telexes, long distance
or local telephone, telecopying, photocopying, secretarial and postage
on correspondence, except if such expenses are incurred by Agency in
the course of out-of-town travel made in furtherance of this
Agreement.
. Under no circumstances will Agency xxxx American Express for
entertainment of Client's employees other than normal meal expense
incurred during out-of-town travel which is paid by Agency; and such
entertainment as Agency may deem appropriate shall be kept to a
minimum and within the bounds of prudent business practice. Agency
records of reimbursement for entertainment of American Express'
personnel shall be kept and made available for, and be part of, the
examination of Agency's books and records referred to in paragraph 11
of this Agreement.
(d) Billing. Unless American Express and Agency specifically agree otherwise,
Agency will xxxx American Express directly on a weekly basis for third-
party and internal costs. Such xxxx will be due within thirty days of
receipt by American Express at the address designated by American
Express.
3. Confidentiality. Proprietary information provided by the disclosing party to
the receiving party shall remain the property of the disclosing party and
shall not be disclosed by the receiving party to any third party including
employees of affiliates during the term of this Agreement or thereafter
without the disclosing party's prior written approval. Notwithstanding the
foregoing, the receiving party may disclose such information when required to
do so by law provided; however, that the receiving party gives the disclosing
party prior written notice of any intention to make such disclosures, with
sufficient time for the disclosing party to take steps to protect its
interest if it so desires. The receiving party shall promptly inform the
disclosing party of all requests by third parties for information about the
disclosing party prior to delivery of any such information with sufficient
time to provide the disclosing party with opportunity to object in a timely
and meaningful manner.
4. Term and Termination. This Agreement shall be effective as of the date it is
signed by duly authorized representatives of Agency and American Express. It
shall remain in force until the services to be performed by Agency are
completed or canceled by American Express. Either party may terminate this
agreement by 90 days' prior written notice to the other party. In the event
of any such cancellation, at American Express' option agreements with third
parties shall be assigned to American Express or its designee or canceled.
Where the terms of such third party agreements do not permit such assignment
and/or cancellation, American Express shall bear any losses incurred by
Agency associated with cancellation of this Agreement. Provisions of this
Agreement that by their nature continue beyond any termination, including
Confidentiality, Indemnity and Ownership, shall not be affected by any
cancellation or termination of this Agreement. The provisions of paragraph
3,6,8,10 shall survive the termination of this agreement.
2
5. Insurance. Agency, at its own cost and expense, shall continuously maintain
in full force and effect an Advertising Liability Insurance Policy (the
"Policy") that provides coverage for Agency and American Express in a minimum
amount of five million ($5,000,000.00) U.S. dollars for any claim, loss or
liability resulting from the conduct of Agency or from the creation or
publication of advertising pursuant to this Agreement, which policy shall
provide that it may not be changed or, canceled without 30 days' prior
written notice to Agency. Agency shall provide American Express with
immediate notice of any such change or cancellation of the Policy. The Policy
may have a deductible of not more than one million ($1,000,000.00) U.S.
dollars. At American Express' request, Agency shall provide American Express
with a copy of the Policy.
6. Indemnity. (a) American Express Indemnifies Agency. (i) American Express
shall be responsible for the accuracy, completeness and propriety of
information concerning its industry, organization, products and services, or
the products and services of competitors, which American Express furnishes to
Agency in connection with the performance of this Agreement. Accordingly,
American Express shall indemnify and hold Agency harmless from and against
any loss, damage, liability, claim, demand, suit and expense (including
reasonable attorneys' fees) which may be incurred by Agency as the result of
any claim, suit or proceeding made or brought against Agency based upon any
advertising or other services which Agency prepared or performed for American
Express and which was approved by American Express, to the extent such
claims, suits or proceedings relate to the accuracy, completeness or
propriety of the information concerning American Express' industry,
organization, products and services, or the products and services of
competitors, which American Express furnished to Agency.
(ii) American Express shall also similarly indemnify and hold Agency
harmless in respect of any loss which Agency may sustain resulting
from any claim, suit or proceeding made or brought against it
arising out of the nature or use by a third party of any of
American Express' products or services.
(b) Agency Indemnifies American Express. (i) Agency agrees in connection with
all advertising or promotional matter or other materials submitted by
Agency to American Express to indemnify and hold American Express
harmless from and against any loss, damage, liability, claim, demand,
suit or expense (including reasonable attorneys' fees) which may be
incurred by American Express as the result of any claim, suit or
proceeding made or brought against American Express based upon any
advertising or other services which Agency prepared or performed for
American Express (whether or not approved by American Express), to the
extent such claims, suits or proceedings relate to:
A) libel, slander or defamation; or
B) any infringement of copyright, trademark, service xxxx, title or
slogan; or
C) piracy, plagiarism, unfair competition or idea misappropriation;
or
D) misappropriation of personality; or
E) any invasion of privacy; or
3
F) violation of the right of publicity; or
G) other property or intellectual property rights.
(ii) Agency similarly agrees to indemnify and hold American Express
harmless from and against any loss, damage, liability, claim,
demand, suit or expense (including reasonable attorney's fees)
which may be incurred by American Express as the result of any
claim, suit or proceeding made or brought against American Express
based upon claims arising from contracts, agreements or
understandings between Agency and third parties to effectuate the
purposes of the Agreement.
(iii) Agency agrees to pay American Express liquidated damages in the
amount of $2 million for breach of the obligations of section 10(a)
including solicitation and hiring American Express employees with
access to proprietary information to support Competitive Products
as defined in section 10.
(c) Obligations and Rights of Indemnified Party. Upon the assertion of a
claim or commencement of any suit against a party that may give rise to
a claim of indemnity under this Agreement, the indemnitee shall promptly
give the indemnitor notice of such a claim or suit, and shall give the
indemnitor reasonable opportunity to settle or defend the claim or suit
with counsel of its own choosing. Indemnitee shall have at all times the
right to participate in any such settlement which it reasonably believes
would have an adverse impact on its business. The parties shall render
to each other such assistance as may be reasonably requested to defend
against any such claim or suit. An indemnitee shall not settle any such
claim or suit without the prior written permission of the indemnitor.
7. Duties of Agency. (a) Agency shall not place any advertising without first
obtaining the approval of American Express nor shall it incur any expenditure
for which American Express shall be billed, without first obtaining the
approval of American Express for the estimated cost thereof. Agency shall
make no agreements, commitments or disbursements nor incur any obligations in
an amount greater than or equal to $3,000.00 on behalf of American Express or
for American Express' account without American Express' prior written
approval. American Express' verbal approval is required for amounts less than
$3,000.00.
(b) Agency has not accepted and shall not hereafter during the term of this
Agreement and for ninety (90) days thereafter accept appointment as an
advertising agency for any products or services competing with American
Express' products or services without full discussion and disclosure to
American Express and American Express' prior written approval. Products
or services which compete with American Express' products or services
include, without limitation, credit, debit, charge or stored value cards,
calling card with linkage to credit or financial services, travelers
cheques and travel agency services.
(c) Agency will take all reasonable precautions to safeguard any and all of
American Express' property entrusted to Agency's custody or control.
4
(d) Agency will take all reasonable precautions to safeguard any and all
wardrobe and prop items owned by or rented by or on behalf of American
Express and entrusted to Agency's custody or control.
(e) Agency will take all reasonable precautions to guard against any loss to
American Express which arises out of Agency's engagement of third parties
for the execution of American Express assignments and the failure of such
third parties to properly execute such assignment.
(f) Agency will obtain all necessary releases, licenses, permits and other
authorization to use names, likeness, photographs, music, artwork, film,
copyrighted materials or any other property or rights belonging to third
parties or employees and independent contractors of Agency for use in
advertising for American Express, and shall indemnify and hold American
Express harmless from and against any loss, damage, liability, claim,
demand, suit or expense (including reasonable attorneys' fees) which may
be incurred by American Express as the result of any claim, suit or
proceeding made or brought against American Express based upon claims
arising out of or in connection with any such use.
(g) All acting, musical or other performing talent (the "Talent") employed by
Agency pursuant to this Agreement shall be engaged through a third party
service and shall not be considered employees of American Express. Agency
shall instruct such third party service to withhold all legally required
income and other taxes for the Talent, and to prepare and file all
required tax reports and returns in connection with compensation paid to
the Talent.
(h) Agency will proofread all advertising materials prepared by Agency,
including those approved by American Express.
(i) From time to time American Express may provide Agency with new or
additional information concerning American Express' organization,
products or services. Agency will assure that its personnel performing
services for American Express become familiar with such information, and
shall be responsible for any additional production costs incurred as a
result of errors arising from Agency's failure to do so.
(j) Agency shall use its best efforts to undertake, obtain or perform all of
the above services at the most advantageous rates, terms and conditions
available and, from time to time, cooperate with American Express in
evaluating the effectiveness of such efforts. Agency agrees to obtain
bids from at least three vendors for all services in connection with
television and print production which are in excess of $3,000 and which
Agency obtains from third parties. Agency further agrees to keep all
documentation reflecting such bids for at least two years after their
receipt.
8. Ownership. All slogans, names, plans, advertising, publicity, promotional
materials or ideas (as those ideas are embodied in Agency materials) or any
other materials submitted, created or developed by Agency for American
Express during the term of this Agreement ("American Express Work") shall be,
as between Agency and American Express, American Express' sole and exclusive
property and shall be dealt with by Agency as such. All American Express work
shall be deemed to be "work made for hire". To the extent that any American
Express work hereunder may not be
5
considered "work made for hire", Agency hereby irrevocably assigns to
American Express all its right, title and interest in and to such American
Express Work to American Express and will execute any and all documents
necessary to transfer and/or evidence American Express' ownership rights.
Agency shall not copyright or sell American Express Work for Agency's own
benefit or take any other action inconsistent with American Express'
exclusive ownership of Client Work.
American Express acknowledges that Agency possesses general knowledge,
experience, skill, talent, ideas, concepts, know-how, algorithms, libraries
of codes and other information in the field in which it will provide the
services and deliverables and that such information was or will be developed
or acquired by Agency other than directly in connection with the services and
deliverables, including, without limitation, Agency's proprietary models and
processes ("Agency Information"). American Express does not assert any right
to the Agency Information, except to the extent when such model and process
is customized to include in whole or in part American Express data, processes
and methodology and proprietary information. In such event, the customized
Agency Information shall constitute American Express work, but Agency retains
all rights to the underlying Agency Information.
Agency warrants that all American Express Work shall be originally and
exclusively created for American Express, except for those materials which
Agency obtains or licenses from third parties with American Express' consent.
Agency shall inform American Express in writing if American Express'
ownership of any material is limited in any way by rights of a third party.
Agency further warrants that no American Express Work shall infringe on the
copyrights, trademarks or other property rights of third parties. Agency
shall not grant to third parties or use for the benefit of third parties
copyrights or property rights in original American Express Work created by
Agency without the express consent of American Express.
9. Non-Exclusivity. This Agreement does not establish Agency as the exclusive
advertising agency of American Express during the term of this Agreement or
otherwise. American Express shall not be obliged to use the services of
Agency except as specifically set forth in this Agreement.
10. Non-Competition. (a) Agency Non-Competition. Agency shall render undivided
loyalty and allegiance to American Express in relation to the services to be
rendered under this Agreement. Agency shall not, during the term of this
Agreement and for a period of one (1) year thereafter, act as advertising
agency or render any of the services to be supplied hereunder in connection
with any of the products or services listed on Exhibit 3 ("Competitive
Products").(1) Agency agrees not to solicit or hire American Express
employees with access to or knowledge of American Express proprietary
information during the term of this Agreement and for a period of one (1)
year after termination of this Agreement and cause its affiliates to do the
same.
(b) Employee Non-Competition. Agency account management and creative
personnel working on the subject matter herein who have access to
American Express' confidential and/or proprietary information,
including but not limited to information concerning current and
----------------------
(1) Exhibit 3 and 4 should list (i) the product lines covered by the Agreement,
and (ii) any other related product lines, as well as (iii) entities that compete
generally with American Express Travel Related Services' business.
6
future marketing plans and strategies, (each an "Employee") shall not
perform any work for any other client (including those of affiliates)
that sells or markets any Competitive Product (each a "Client") or for
any of the American Express' competitors listed on Exhibit 4 (each a
"Competitor") (1) during the term of this Agreement and for a period of
one (1) year after the earlier of the termination of this Agreement or
the termination of the Employee's employment with Agency. Furthermore,
employee shall not work for or support affiliates that provide services
to competitors during the term of this Agreement and for a period of one
(1) year after termination of this Agreement. Furthermore, each Employee
agrees not to solicit or hire existing or former agency or American
Express employees, agents or third parties with knowledge of American
Express confidential or proprietary information to perform or assist on
any work involving a Competitive Product for any Client or Competitor for
a period of one (1) year after the earlier of the termination of this
Agreement or the termination of the Employee's employment with Agency.
(c) Employee Undertaking. Agency shall cause each Employee, as consideration
for being permitted to work on the American Express account and for being
granted access to American Express' confidential and/or proprietary
information, to agree in writing to the terms of sub-paragraph 10(b) by
executing a Non-Competition Agreement substantially in the form set forth
as Exhibit 5 hereof. Agency shall provide an original counterpart of all
such Non-Competition Agreements to American Express.
(d) It is expressly understood and agreed that Xxxxxxx Xxxxxxx and Xxxxx
Xxxxx shall have no involvement with the development or implementation of
strategies and marketing plans for Xxxxxxx Schwabs, Prudential and any
other competitors of American Express supported by an affiliate.
11. Reports: Books and Records. 1) From time to time American Express may
request Agency to participate in, and Agency will use its best efforts to
participate in, a periodic agency performance evaluation with respect to (a)
Agency's contribution to the American Express business results, (b) Agency's
servicing of American Express's account, (c) Agency's economics in servicing
American Express's accounts, (d) the working relationship between Agency and
American Express, and (e) the implementation of this Agreement.
2) Upon reasonable notice, all contracts, paper, correspondence, copybooks,
time sheets, account records, records reflecting discounts, and other
documents which relate to American Express's account, will be open to
inspection, examination and audit by American Express or American
Express's representative during Agency's normal business hours at
Agency's place of business.
3) At any reasonable time during the life of this Agreement and for one year
thereafter, and upon reasonable prior notice to Agency, American Express
may examine and make reasonable copies of American Express's files and
records (excluding, however, payroll and personnel records) pertaining to
American express advertising and marketing.
4) Unless prohibited by applicable law, Agency shall promptly advise
American Express of any actual or contemplated material changes in
Agency's ownership or control.
5) Agency shall provide American Express with annual financial ratios no
later than March 31 of the following year. In the event that there is
sufficient risk that agency may become insolvent
7
or unable to complete projects for American Express, American Express may
suspend the agency relationship and withdraw any or all projects
previously assigned.
All of the foregoing and other requested information supplied by Agency to
American Express will be provided in such form and substance as American
Express shall reasonably designate.
American express shall have the right to set-off against the compensation to
be paid to Agency for any current year under paragraph 2. Hereof the amount
of any overpayment revealed in any audit performed by American Express of
amounts paid by American Express to Agency or billed by Agency to American
Express of amounts paid prior year. If an underpayment is revealed in the
audit, Agency will be entitled to any additional payment.
12. Corporate Purchasing Card. Agency agrees, upon request from American
Express, to accept the American Express Corporate Purchasing Card as a
method of payment, subject to the parties agreeing on mutually acceptable
terms and conditions, as well as the method of implementing the Corporate
Purchasing card program.
13. Services by Affiliate. In the event that Agency desires any of its parents,
subsidiaries or other affiliates ("Affiliate") to render services to
American Express, Agency first shall cause said Affiliate to execute either
a separate Agency Agreement with American Express or the Affiliate Agreement
attached hereto as Exhibit 6.
14. Compliance With Law. Agency will take all reasonable precautions to ensure
that all services, materials and copy supplied to American Express shall not
violate any laws or orders or regulations. In addition, Agency will comply
with all applicable provisions of the Workers' Compensation law and all
other federal, state and local laws, rules and regulations which may be
applicable to Agency as an employer.
15. Notice. All notices which either party is required or may desire to give the
other party hereunder shall be given by addressing the communication to an
appropriate officer of the other party at the address set forth hereunder
and may be given by registered mail, fax, telex, cable or personal delivery.
Such notices shall be deemed given on the date of receipt if given by mail,
fax or personal delivery, or after prepaid deposit of message with cable
company if telexed or cabled:
A. To: American Express at: American Express Travel Related Services
Company, Inc.
World Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Vice President - Global Agency Contract and
Procurement (Mariana Xx Xxxxxxxx)
Copy: General Counsel's Office (Xxx Xxxx)
Executive Vice President- Global Advertising
(Xxxx X Xxxxx)
B. To Agency at: Xxxxxxx Xxxxxxxx Xxxxxxxx, Inc.
The Prudential Tower, 000 Xxxxxxxx Xxxxxx,
Xxxxxx, Xxxxxxxxxxxxx 00000
Attention: CEO and President - Xxxxx Xxxxx
8
Copy: CEO - Xxxxx Xxxxxxxxxx
The Prudential Tower,
000 Xxxxxxxx Xxxxxx,
Xxxxxx, Xxxxxxxxxxxxx 00000
16. Entire Agreement. This Agreement constitutes the entire agreement with
respect to the subject matter hereof, and may only be modified or amended in
a written document signed by both parties.
17. Severability. The invalidity or unenforceability of one or more provisions
of this Agreement shall not affect the validity or enforceability of any of
the other provisions hereof, and this Agreement shall be construed in all
respects as if such invalid or unenforceable provisions were omitted.
18. Waiver. No waiver or breach of any provision of this Agreement shall
constitute a waiver of any other provision, and no waiver shall be effective
unless made in writing and signed by an authorized representative of the
party against whom such waiver is to be enforced. In the event that any
provision of this Agreement shall be illegal or otherwise unenforceable,
such provision shall be severed, and the balance of the Agreement shall
continue in full force and effect.
19. Assignment. This Agreement may not be assigned by Agency in whole or in part
without the express prior written consent of American Express.
20. Construction. This Agreement shall be construed in accordance with and
governed by the laws (excluding the conflicts of laws provisions) of the
State of New York.
21. Titles. Titles are for reference only. In the event of a conflict between a
title and the content of a section, the content of the section shall
control.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the later date below.
AMERICAN EXPRESS TRAVEL XXXXXXX XXXXXXXX XXXXXXXX, INC.
RELATED SERVICES COMPANY, INC.
By: /s/ Xxxx X. Xxxxx By: /s/ Xxxxx Xxxxx
------------------------------ ---------------------------------
(Xxxx X Xxxxx) (Xxxxx Xxxxx)
Title: EVP Global Advertising Title: CEO and President
--------------------------- ------------------------------
Date: Date: October 19, 1998
---------------------------- ------------------------------
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EXHIBIT 1
Services To Be Provided By Agency
Agency agrees to devote its best efforts to further American Express' interests
with respect to American Express' direct marketing, including but not limiting
to collateral, direct marketing materials and interactive area for the
businesses and marketing areas specified by American Express from time to time.
In addition, Strategic Interactive Group will be the media Agency of Record for
American Express.
As direct marketing agency for American Express, Agency will provide the
following services ("Basic Services"):
A. Familiarize itself with American Express' business and the industry in
which American Express operates.
B. Provide direct marketing counsel and promotion planning as appropriate in
areas in which Agency's advice and guidance would be helpful.
C. Provide senior level strategic counseling.
D. Provide insight of competitive marketing and industry trend.
E. Prepare creative, layouts, copy, scripts and any other elements and
materials to be used in direct marketing and promotion.
F. Produce and / or purchase artwork and mechanicals in a timely, accurate and
usable manner and within the standard set by American Express.
G. Make available to American Express the benefits of Agency's library,
process, media and market research conducted for the common benefits of all
Agency's Clients.
H. Prepare and submit to American Express in writing timely estimates of the
relevant cost of American Express' advertising and direct marketing
expenses.
I. Comply with American Express' standards and processes and work with
American Express to improve marketing processes and standards including but
not limiting to STAMP (standardized direct marketing process), DTP (DeskTop
Publishing Process) and ratecard process.
J. Ensure all relevant agency staff is familiar with American Express'
processes and standards and that agency staff attend relevant training
sessions.
K. Coordinate with American Express' other designated agencies on all related
areas of work.
L. Strategic Interactive Group will be the Agency of Record for interactive
media
M. Other services mutually agreed to by Agency and American Express.
N. Participate in periodic Agency performance evaluation as determined by
American Express.
EXHIBIT 2
Fee Schedule
A. Agency Compensation / Agency Fee
Client agrees to pay Agency a fee for its services based on compensation
schedules, as follows:
1. Annual Retainer -- for Agency's senior management's counseling and strategic
advice to American Express, in accordance with the hourly rate schedule set
forth in Appendix 2 and in the format set forth in Appendix 3. Retainer is
designed to cover only senior agency staff's fully loaded time cost. It
should be proposed by Agency for American Express review no later than
November 15 for the following twelve months. It should be mutually agreed on
no later than Dec 15 for the following twelve months. Retainer can be
modified upon mutual agreement based on business needs.
2. Counseling and Creative Execution Project Ratecards -- this includes
counseling and creative execution ratecards. They are for Agency's services
in performing particular projects, including account management, creative
development and production / traffic, according to the schedules set forth in
Appendix 4a for direct mail ratecard, Appendix 4b for advertising ratecard
and Xxxxxxxx 0x for media commission (which classifies types of projects
based upon the level of complexity); and Appendix 4 (which provides prices
for the classes of projects set forth in Appendix 3). It is understood that
certain projects may be of an extraordinary nature and may require pricing
between the defined complexity levels or over and above what is outlined in
the standard project ratecards. Any extraordinary adjustment will be mutually
agreed upon in advance of the work being done and will be made in accordance
with the approval process. For example, it is possible for a "brochure" to be
at priced at between simple and moderate which means at 1.5 simple pricing.
3. Hourly rate Project Ratecard - for Agency's services in performing particular
projects that do not have a set counseling or creative execution ratecard
pricing for. These typically are non-typical projects, which can either be
very large or very small. Agency should estimate the resource and time that
it will take and use the hourly rate schedule in Appendix 2 to price out the
project for client approval.
4. Media Commission - For Agency's services in planning / stewardship and buying
media placements, according to the schedule set forth in Appendix 4c.
5. Interactive media - For Agency's interactive media fee, according to the
prices set forth in Appendix 6a.
6. Interactive creative - For Agency's interactive services relating to creative
work, according to prices set forth in Appendix 6b.
The prices set in Appendix 2, Appendix 0x, Xxxxxxxx 0x, Xxxxxxxx 4c and Appendix
5a, Appendix 0x, Xxxxxxxx 0x, Xxxxxxxx 5c and Appendix 6a and Appendix 6b can be
reviewed and revised upon mutual agreement every two years. If either party
desires to adjust one or more of the compensation or fee schedules, it shall
notify the other party thereof in writing no later than ninety (90) days before
the first of the year and provide to the other party information supporting its
request. The parties shall mutually determine the adjustment(s), if any, to the
compensation schedule(s). If the parties are unable to agree on such
adjustment(s), the schedule(s) will remain unchanged.
EXHIBIT 2 (continued)
B. Third Party costs
1. For prepress (engraving) costs, Agency must ensure cost to be no more than
the prices set forth in Appendix 5a.
2. For stock and commissioned photography fee, Agency must ensure cost to be no
more than the prices set forth in Appendix 5b.
3. For preproduction or mechanical, Agency must ensure cost to be no more than
the prices set forth in Appendix 5c.
If Agency itself performs any of the services specified in the foregoing
paragraphs B. 1,2 and 3 and Agency's actual cost of doing so is less than the
rate specified in such ratecard, Agency may nevertheless xxxx Client at such
rate. If, however, any third party performs such services and such third party's
actual cost of doing so is less than such rate, Agency shall xxxx American
Express for such third party's actual cost. Agency shall not be reimbursed if
its own costs or those of any third party exceed the rate specified on the
ratecard for performance of such services.
Processes standards:
. Agency must comply with the standard established by American Express including
but not limiting to STAMP, STEPS, DeskTop Publishing (DTP) and ratecard.
. Agency prepares the Agency Fee Counseling, Execution and hourly rate ratecards
immediately after agency concept is developed.
. Agency submits ratecards electronically for American Express marketing
approval(s).
. American Express marketing approves ratecards electronically.
. Agency prints out approved ratecard (Purchase Order) and attach it to invoice
and send to Phoenix for finance processing and payment.
In case of inconsistency between STAMP and STEP and the above summary, the
standards set in STAMP including DTP and ratecard, as well as STEP will prevail.
Scope of Work
American Express will continue to work with Agency to supplement project by
project pricing by periodic scope of work using ratecard pricing and monthly
payment methodology or other mutually agreed upon payment method.
Agency and American Express responsibilities relating to ratecard and invoicing
processes
. Agency is accountable for creating, submitting and modifying ratecards
immediately after agency brief. This will ensures that both Agency and
American Express to have a record and audit trail on project pricing status.
. Agency is accountable for following up with American Express marketing clients
on approval status and budget line information.
. American Express marketing is accountable for approving, request for Discuss
Further the submitted ratecards.
. American Express marketing is accountable for providing Agency with the
appropriate and accurate budget line details or cost center details for agency
to input when creating the ratecards.
. American Express Finance in Phoenix is accountable for ensuring that payment
is timely upon receipt of invoice.
. American Express Global Agency contact and procurement is accountable for
process set up, pricing negotiation and arbitration in case of disagreements
between American Express marketing and Agency.
Client Processes and training
More detailed Ratecard process and how it is integrated into the STAMP and DTP
process (standardized direct marketing and desk top publishing processes) are
contained in the STAMP and desk top publishing manuals which are updated from
time to time. All ratecard pricing, definition, standards and formats can be
found in the Ratecard system and the STAMP / Team work systems on Lotusnotes.
Agency must attend the appropriate training on these three major processes and
ensue agency staff have adequate access to the appropriate systems.
Exhibit 2a
C. Agency Performance and Bonus
Agency will be evaluated twice a year, in June/July and December/January by
American Express clients in accordance with American Express agency evaluation
criteria and process.
Performance rating and bonus target is as follows:
Rating 1 : [***] of aggregate agency compensation before bonus
Rating 2 : [***] of aggregate agency compensation before bonus
Rating 3 : [***] of aggregate agency compensation before bonus
Rating 4 : [***]
Rating 5 : [***]
Performance will be evaluated twice a year, in June/July and December/January
based on the following two evaluation categories:
1) Business rating - This weighs [***] of total performance. Business rating is
further categorized into two categories as follows:
a) Shareholder rating - This weighs [***] of total business
rating (that is, [***]of total performance).
. Shareholder ratings for each business unit is determined by the
American Express Board.
. Overall shareholder rating for the Agency will be calculated based on
the weighted average of the shareholder ratings determined by the
American Express Board based on net income.
b) Customer rating - This weighs [***] of total business rating
(that is, [***] of total performance).
. Customer ratings are determined by the users of Agency services in
American Express.
. Overall customer rating for the Agency will be calculated based on
the weighted average of the customer ratings determined by the
different business units based on agency billing.
2) Leadership rating - This weighs [***] of total performance.
. Agency is rated on four leadership dimensions detailed in Appendix 7:
. Thought leadership [***] (i.e. [***] of total performance)
. Result leadership [***] (i.e. [***] of total performance)
. Change leadership [***] (i.e. [***] of total performance)
. Relationship leadership [***] (i.e. [***] of the total performance)
The performance evaluation matrix and the performance process may be modified
from time to time by American Express to reflect business needs.
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Agency performance evaluation process
. Amex marketing leaders submit inputs to business unit leaders for
consolidation;
. Business unit leaders submit evaluation to VP of Global Agency Contract and
Procurement for Blue Box consolidation;
. Business unit leaders will discuss evaluation at Marketing Council Steering
Committee meeting to finalize ratings for Blue Box for agency.
. Each business unit leader is responsible for conducting evaluation meetings
with his/her agency counterpart. Each marketing leader within a business unit
will also conduct evaluation meeting with his/her counterpart.
. EVP of Global Advertising and Brand Management will conduct overall Blue Box
evaluation meeting with head of agency. This is the only source and time that
incentive % will be discussed. The final incentive communication will take
place after the final business result is available in March.
. It is the responsibility for both American Express and agency to ensure the
evaluation meeting and discussion take place appropriately and timely.
. VP of Global Agency Contract and Procurement is responsible for the overall
evaluation process management and counseling.
Agency incentive payment process
Agency's incentive will be paid out once a year no later than March 31st unless
the final business unit ratings are not finalized by the American Express.
EXHIBIT 3
Competitive Products and Competitors
------------------------------------------------------------------------------------------------------------------------------------
Business Unit
Business Line of Business, Wide
Unit Department of Job Function Standard (if applicable) Competitors
------------------------------------------------------------------------------------------------------------------------------------
TRS U.S. Consumer Card Group Top 15 credit card issuers in owned and VISA Association
(including U.S. Service managed receivable (based on publicly (U.S. and
utility) available data as of the date you begin to International)
provide services to the competitor).
plus
First Data Corp., Total System Services, Inc., Mastercard
Vital Processing Services, Global Payment Association (U.S.
Systems, EDS. and International
and including
Eurocard)
--------------------------------------------------------------------------------------
U.S. Business and Consumer Carlson, Rosenbluth, BTI, World Travel partners, Citicorp and its
Travel Maritz, Sabre, Galileo, Amadeus, Microsoft subsidiaries and
Travel Technologies, Preview Travel, Liberty affiliates
Travel, CUC, Travel Impressions/Empress Travel
plus
Competitors of the International Travel business
--------------------------------------------------------------------------------------
Corporate Card (including Chase, First Bank VISA (U.S. Bancorp), First
Large/middle market, Chicago NBD Corp., First USA, GE Capital,
government card and NationsBank, of Delaware, Portable Software,
Purchasing Card) Extensity, Diners Club, Bank of America
--------------------------------------------------------------------------------------
Top 15 credit card issuers in owned and managed
receivables (based on publicly available data
as of the date you begin to provide services to
the competitor).
plus
AERS First Data Corp., subsidiary of First Data
Resources; the group which is our competition is
called ValueLink - Stored value gift
cards. Stored Value Systems; a subsidiary of
National Processing Corp. - Stored value gift
cards. Any Credit Insurance Company (American
Banker, American Security) unless they do
business with Amex. CUC-HFS for service
enhancements specifically signature,
credentials. Memberworks (unless they do
business with us), Encore (unless they do
business with us), Creditcom (unless they do
business with us). Professional Employment
Organizations (PEOs), Brokerage companies,
E-mail companies, Internet payment companies
--------------------------------------------------------------------------------------
Companies: Xxxxxxx Xxxxx, Fidelity, Xxxxxxx
Xxxxxx, Prudential, SunAmerica, Xxxxxx Xxxxxxx
Xxxx Xxxxxx, Xxxxx Xxxxxx, Xxxxx Xxxxxx,
Xxxx Xxxxxxx, X. Xxxx Price, Dreyfus,
AEFA AEFA and Direct Janus, Scudder, Vanguard, Travelers.
Products/Services: Financial Planning Services,
Mutual Funds, Certificates, Long Term Card
Insurance, Security Services, Annuities,
Life Insurance, Medical Insurance, Tax and
Business Services, Property and Casualty
Insurance, Lending and Deposit Products,
Retirement Plans, Business Planning Services,
Income Protection Plans, Direct Investments,
Wealth Management Services
--------------------------------------------------------------------------------------
Companies: Xxxxxx Xxxx, Citibank, Visa,
Mastercard, Any bank or institution offering
Travelers travel payment options. Products: Travel
Cheques payment options, Money orders, Debit cards,
Credit cards, Charge cards, Travelers Cheques
------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 4
Competitive Products and Competitors
------------------------------------------------------------------------------------------------------------------------------------
Business Unit
Business Line of Business, Wide
Unit Department of Job Function Standard (if applicable) Competitors
------------------------------------------------------------------------------------------------------------------------------------
TRS U.S. Consumer Card Group Top 15 credit card issuers in owned and VISA Association
(including U.S. Service managed receivable (based on publicly (U.S. and
utility) available data as of the date you begin to International)
provide services to the competitor).
plus
First Data Corp., Total System Services, Inc., Mastercard
Vital Processing Services, Global Payment Association (U.S.
Systems, EDS. and International
and including
Eurocard)
--------------------------------------------------------------------------------------
U.S. Business and Consumer Carlson, Rosenbluth, BTI, World Travel partners, Citicorp and its
Travel Maritz, Sabre, Galileo, Amadeus, Microsoft subsidiaries and
Travel Technologies, Preview Travel, Liberty affiliates
Travel, CUC, Travel Impressions/Empress Travel
plus
Competitors of the International Travel business
--------------------------------------------------------------------------------------
Corporate Card (including Chase, First Bank VISA (U.S. Bancorp), First
Large/middle market, Chicago NBD Corp., First USA, GE Capital,
government card and NationsBank, of Delaware, Portable Software,
Purchasing Card) NationsBank, Extensity, Diners Club, Bank of America
of Delaware,
--------------------------------------------------------------------------------------
Top 15 credit card issuers in owned and managed
receivables (based on publicly available data
as of the date you begin to provide services to
the competitor).
plus
AERS First Data Corp., subsidiary of First Data
Resources; the group which is our competition is
called ValueLink - Stored value gift
cards. Stored Value Systems; a subsidiary of
National Processing Corp. - Stored value gift
cards. Any Credit Insurance Company (American
Banker, American Security) unless they do
business with Amex. CUC-HFS for service
enhancements specifically signature,
credentials. Memberworks (unless they do
business with us), Encore (unless they do
business with us), Creditcom (unless they do
business with us). Professional Employment
Organizations (PEOs), Brokerage companies,
E-mail companies, Internet payment companies
--------------------------------------------------------------------------------------
Companies: Xxxxxxx Xxxxx, Fidelity, Xxxxxxx
Xxxxxx, Prudential, SunAmerica, Xxxxxx Xxxxxxx
Xxxx Xxxxxx, Xxxxx Xxxxxx, Xxxxx Xxxxxx,
Xxxx Xxxxxxx, X. Xxxx Price, Dreyfus,
AEFA AEFA and Direct Janus, Scudder, Vanguard, Travelers.
Products/Services: Financial Planning Services,
Mutual Funds, Certificates, Long Term Card
Insurance, Security Services, Annuities,
Life Insurance, Medical Insurance, Tax and
Business Services, Property and Casualty
Insurance, Lending and Deposit Products,
Retirement Plans, Business Planning Services,
Income Protection Plans, Direct Investments,
Wealth Management Services
--------------------------------------------------------------------------------------
Companies: Xxxxxx Xxxx, Citibank, Visa,
Mastercard, Any bank or institution offering
Travelers travel payment options. Products: Travel
Cheques payment options, Money orders, Debit cards,
Credit cards, Charge cards, Travelers Cheques
------------------------------------------------------------------------------------------------------------------------------------
EXHIBIT 5
Non-Competition Agreement
I, ____________________________, have been asked by [Agency]("Agency")
to provide services to American Express Travel Related Services Company, Inc.
("American Express"). In connection with providing those services to American
Express, I understand that I will be given access to confidential and/or
proprietary information concerning American Express, its business, and/or its
marketing plans and strategies.
As consideration for being permitted to work on the American Express
account, for being granted access to American Express' confidential and/or
proprietary information, and for my continued employment at the Agency, I hereby
agree personally to abide by the duties and obligations of Agency and its
Employees as set forth in Sections 3 and 10(a)-(b) of the Advertising/
Marketing/Promotion Agency Agreement dated [date ________] between Agency and
American Express (the "Agreement"), pursuant to which Agency has agreed to
provide [description of services________________] to American Express (the
"Services"). Those sections provide:
3. Confidentiality. Proprietary information provided by the
disclosing party to the receiving party shall remain the property of
the disclosing party and shall not be disclosed by the receiving party
to any third party including employees of affiliates during the term
of this Agreement or thereafter without the disclosing party's prior
written approval. Notwithstanding the foregoing, the receiving party
may disclose such information when required to do so by law provided;
however, that the receiving party gives the disclosing party prior
written notice of any intention to make such disclosures, with
sufficient time for the disclosing party to take steps to protect its
interest if it so desires. The receiving party shall promptly inform
the disclosing party of all requests by third parties for information
about the disclosing party prior to delivery of any such information
with sufficient time to provide the disclosing party with opportunity
to object in a timely and meaningful manner.
10. Non-Competition, (a) Agency Non-Competition. Agency shall render
undivided loyalty and allegiance to American Express in relation to
the services to be rendered under this Agreement. Agency shall not,
during the term of this Agreement and for a period of one (1) year
thereafter, act as advertising agency or render any of the services to
be supplied hereunder in connection with any of the products or
services listed on Exhibit 3 ("Competitive Products").l Agency agrees
not to solicit or hire American Express employees with access to or
knowledge of American Express proprietary information during the term
of this Agreement and for a period of one (1) year after termination
of this Agreement and cause its affiliates to do the same.
(b) Employee Non-Competition. Agency management and creative personnel
working on the subject matter herein who have access to American
Express' confidential and/or proprietary information, including
but not limited to information concerning current and future
marketing plans and strategies, (each an "Employee") shall not
perform any work for any other client that sells or markets any
Competitive Product (each a "Client") or for any of the American
Express competitors listed on Exhibit 4 (each a "Competitor")
during
the term of this Agreement and for a period of one (1) year after
the earlier of the termination of this Agreement or the termination
of the Employee's employment with Agency. Furthermore, employee
shall not work for or support affiliates that provide services to
competitors during the term of this Agreement and for a period of
one (1) year after termination of this Agreement. Furthermore, each
Employee agrees not to solicit or hire existing or former agency or
American Express employees, agents or third parties with knowledge
of American Express confidential or proprietary information to
perform or assist on any work involving a Competitive Product for
any Client or Competitor for a period of one (1) year after the
earlier of the termination of this Agreement or the termination of
the Employee's employment with Agency.
(c) It is expressly understood and agreed that Xxxxxxx Xxxxxxx and
Xxxxx Xxxxx shall have no involvement with the development or
implementation of strategies and marketing plans for Xxxxxxx
Schwabs, Prudential and any other competitors of American Express
supported by an affiliate.
I further agree that American Express is a third party beneficiary of
this agreement and has full right, power and authority to enforce its terms.
XXXXXXX XXXXXXXX XXXXXXXX, INC. [EMPLOYEE, DIRECTOR OR OFFICER]
By /s/ Xxxxx Xxxxx
----------------------------- --------------------------------
Name:
Title: President and CEO
Date: October 19, 1998 Date:
------------------------ ---------------------------
EXHIBIT 6
Affiliate Agreement
Strategic Interactive Group, Inc. ("Affiliate"), an affiliate of
Xxxxxxx Xxxxxxxx Xxxxxxxx, Inc. ("Agency"), having been asked by Agency to
provide interactive advertising, marketing or promotion services to American
Express Travel Related Services Company, Inc. ("American Express"), hereby
agrees with American Express as follows:
Affiliate has reviewed that certain "Advertising/Marketing/Promotion
Agency Agreement" dated October 9, 1998 (the "Agreement") between Xxxxxxx
Xxxxxxxx Xxxxxxxx, Inc. and American Express, pursuant to which Agency has
agreed to provide interactive, marketing, advertising and media services to
American Express (the "Services"). In consideration for being allowed to provide
Services to American Express directly and/or through Agency, Affiliate hereby
agrees to be bound by all of Agency's duties and obligations of the Agreement
with respect to any Services Affiliate provides to American Express including
but not limited to the duties and obligations set forth in paragraphs 3
(Confidentiality), 6 (Indemnity), 7 (Duties of Agency), 8 (Ownership), 10 (Non-
competition) and 12 (Compliance with Law).
IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the later date below.
AMERICAN EXPRESS TRAVEL STRATEGIC INTERACTIVE GROUP, INC.
RELATED SERVICES COMPANY, INC.
By: /s/ Xxxx X Xxxxx By: /s/ Xxxxx Xxxxxxxxxx
------------------------------- ------------------------------
Name. Xxxx X Xxxxx Name: Xxxxx Xxxxxxxxxx
Title: EVP -- Global Advertising Title: SVP and CFO
and Brand Management
Date: Date: October 19, 1998
------------------------ ---------------------------
APPENDIX 1
[AMERICAN EXPRESS LOGO]
1998
AMERICAN EXPRESS
EMPLOYEE
TRAVEL & EXPENSE
GUIDE
1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
TABLE OF CONTENTS
I. General Policy 4
II. Payment Methods 4
A. Corporate Card 4
1. Use of Corporate Card 4
2. Reconciliation of Corporate Card Account 4
3. Membership Rewards 4
B. Cash Advances 5
C. Corporate Purchasing Card (CPC) 5
III. Out-of-Town Travel 5
A. Travel Authorization/Arrangements 5
1. Travel Authorization 5
2. Travel Arrangements 6
3. Traveler Profiles 6
4. Passport/Visa Services 6
5. Travel Advisories 6
B. Transportation 6
1. Air Travel 6
2. Car Rental 8
3. Rail 9
4. Taxis 9
5. Company Cars 10
6. Personal Auto 10
7. Ferry/Car Ferry/Channel Tunnel 10
C. Lodging 10
1. Hotel Selection 10
2. Hotel Cancellations 11
3. Hotel Frequent Guest Programs 12
4. Lodging with Relatives/Friends 12
D. Meals 12
E. Weekend Travel 13
1. Weekend Stay (Before or After a Business Trip) 13
2. Weekend Return Home 14
3. Weekend Side Trips 14
F. Spouse/Partner Travel 14
1. For Business or Achievement Awards 14
2. In Lieu of Employee Weekend Return Home 14
G. Temporary Assignments/Extended Business Trips 15
1. Lodging 15
----------------------------------------------------------------------------- 2
1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
2. Meals and Incidental Expenses 15
H. Emergency Travel 15
1. General Procedures 15
2. Personal Emergencies 15
I. Miscellaneous Travel Expenses 15
J. Other Personnel - Travel Expenses 16
1. Consultants 16
2. Employment Candidates 16
3. Employment Contracts 16
4. Expatriate Employees 17
IV. In-Town Travel 17
A. Meals 17
1. Employee Business Meals/Meetings 17
2. Worked Late/Holiday/Weekend Meals 17
3. Meals with Clients/Prospects 17
4. Spouse/Partner In-Town Meal and Entertainment
Expenses 17
V. Group Travel 18
A. Approvals 18
B. Cost Containment Measures 18
VI. Other Business Expenses 18
A. Entertainment 18
B. Club Memberships 19
C. Gifts 19
D. Purchases 19
1. Supplies 19
2. Temporary Services 19
E. Telecommunications 20
1. Cellular Telephones 20
2. Air/Rail Telephones 20
3. Faxes/Modems 20
F. Training 20
G. Subscriptions . 20
H. Professional Dues and Licenses 20
I. Team Building/Department Parties 20
VII. Personal Employee Travel 21
VIII. Expense Reimbursement Procedures 21
A. Responsibilities 21
B. Support for and Submission of Claims 21
IX. Non-Reimbursable Expenses 23
----------------------------------------------------------------------------- 3
1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
I. General Policy
The Company will reimburse employees for actual and reasonable expenses
incurred in conducting Company business that are properly documented, approved
and in accordance with this policy. Not complying with this policy will result
in not being reimbursed for expenses, and appropriate management action, up to
and including termination.
No American Express business segment or unit can establish and apply business
expense reimbursement guidelines more lenient than those set in this policy.
However, they may elect to maintain more restrictive guidelines. Refer to
Addendum 1 for supplemental guidelines for the U.S., and AEB and AEFA
employees. Exceptions not specifically authorized in this policy require the
prior written approval of a Planning and Policy Committee (PPC) member,
stating the business reason for the exception.
II. Payment Methods
The following methods may be used to pay for reimbursable business expenses:
A. Corporate Card
1. Use of Corporate Card
Reimbursable business expenses must be paid for using the American Express
Corporate Card, whenever and wherever possible. Employees incurring business
expenses of at least US$500 per year should apply for a Corporate Card.
Applications can be obtained through the Procurement Fax Information Service
at 1-800-644-0950 or on the Company e-mail bulletin board under "Global
Corporate Travel." Employees without Corporate Cards, for whatever reason,
should have their business travel expenses charged to their manager's
Corporate Card, wherever possible. Use of personal cards for payment of
business expenses and use of the Corporate Card for personal expenses are
prohibited.
2. Reconciliation of Corporate Card Account
Employee Corporate Card accounts must be kept current at all times. Expense
vouchers must be submitted on a timely basis to clear outstanding balances and
to prevent any account from aging past its due date. Employees should refer to
Addendum 1 or contact their local Controller for local account reconciliation
guidelines.
3. Membership Rewards
Employees are not eligible for Membership Rewards points for business-related
charges.
----------------------------------------------------------------------------- 4
1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
B. Cash Advances
Employees are discouraged from using cash advances to pay for business travel
and should use the Corporate Card, whenever possible. Cash advances should
only be used on an exception basis, and when used, charged to an employee
Corporate Card. Employees requiring cash advances are encouraged to use
American Express cash products, including Corporate Travelers Cheques and
Corporate Express Cash. Refer to Addendum 1 or local market addendum for cash
advance limits.
C. Corporate Purchasing Card (CPC)
Where available and feasible, the American Express Corporate Purchasing Card
must be used by authorized employees to purchase goods and services from
designated vendors. These vendors are listed in an "Approved Supplier List"
maintained by Global Procurement. The CPC may not be used to pay for travel
expenses in lieu of the Corporate Card.
Departments that make purchases from vendors listed on the Approved Supplier
List should designate one or more employees to receive a CPC. The only person
who should use the CPC is the person whose name appears on the face of the
Card. Use of the CPC for personal purchases or expenses is prohibited. If the
CPC is currently not available in your location, purchases should be made
through a Global Procurement representative for your office, where applicable.
III. Out-of-Town Travel
A. Travel Authorization/Arrangements
1. Travel Authorization
Out of town travel should occur only when there is a significant value added
to the business that cannot be accomplished through conference calls,
videoconferencing, etc. A list of worldwide videoconferencing facilities and
reservation procedures, are available on the Company's e-mail bulletin board
under "Global Corporate Travel."
Individual trips, or long-term travel plans, must be pre-approved by the
employee's manager and booked as early as possible to take advantage of
advance purchase airline discounts. Pre-approval may be verbal, unless written
approval is required by the local business unit.
----------------------------------------------------------------------------- 5
1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
2. Travel Arrangements
Travel arrangements for air, lodging and car rental must be made at the same
time through the traveler's designated American Express Travel or
Representative office. Failure to use designated offices may result in not
being reimbursed for expenses.
3. Traveler Profiles
To provide readily accessible traveler information and preferences within
policy guidelines to Travel Counselors, employees who travel should complete
and submit a Traveler Profile to their designated travel office for entry into
the American Express reservation system. Travelers are responsible for
ensuring that information on profiles is current. Profile forms are available
on the e-mail bulletin board under "Global Corporate Travel," or can be
obtained from designated travel offices.
4. Passport/Visa Services
When making reservations, travel counselors will notify travelers of passport,
visa, tourist card and immunization requirements and assist travelers, as
necessary, to ensure that the requirements are met. Passport, visa, tourist
card or other entry costs, as well as immunization expenses are reimbursable,
if required for business travel purposes.
5. Travel Advisories
Employees should NOT travel to countries for which a travel advisory has been
issued by the U.S. State Department, local governments or American Express.
B. Transportation
1. Air Travel
Travelers are required to use American Express preferred carriers and the
class of service designated by policy. AEB employees should refer to Addendum
1 for applicable class of service guidelines. Travel Counselors will provide
employees with, and employees must accept, the lowest logical airfare for
their eligible class of service.
Employees must accept alternative flights departing within one hour before or
after the original departure time requested (time window). For domestic
travel, the time window restriction may be waived on the return portion of a
trip if the employee would land after 8:00 p.m. local time. Carrier selection
based on frequent flyer programs is prohibited.
Use of penalty or non-refundable fares is recommended. These tickets can be
changed and reissued for a fee that still make their use more economical to
the company. Reissuance fees are reimbursable.
----------------------------------------------------------------------------- 6
1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
The following tables illustrate class of air travel guidelines for employees who
do not receive agency discounts (AD) and employees eligible for agency
discounts* (AD employees):
---------------------------------------------------------------------------------------------
CLASS OF AIR TRAVEL**
-----------------------------------------------------------------------------
Non-AD Flights (less than)5.5 Flights 5.5 to 8.5 Flights (greater than)8.5
Employees hours (1) hours hours
---------------------------------------------------------------------------------------------
Band 60 and
above Economy First Class First Class
---------------------------------------------------------------------------------------------
Band 50 Economy Business Class (2) First Class
---------------------------------------------------------------------------------------------
Band 45 Economy Business Class (2) Business Class
---------------------------------------------------------------------------------------------
All Others Economy Economy (3) Business Class
---------------------------------------------------------------------------------------------
Flights under 5.5 hours:
(1) All employees must accept the lowest logical air fare and may not request a
higher fared ticket to obtain an upgrade in class of service. Soft
dollar*** or free tickets must be accepted, when offered by the Travel
Counselor.
Flights 5.5 to 8.5 hours:
(2) If business class is not available, the lowest logical economy fare must be
accepted.
(3) Employees band 40 and below must accept the lowest logical fare and may not
request a higher fared ticket to obtain an upgrade in class of service.
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------
CLASS OF AIR TRAVEL
---------------------------------------------------------------------------------------------------
Flights (less than) 5.5 Flights 5.5 to 8.5 Flights (greater than) 8.5
AD Employees hours hours hours (3)
---------------------------------------------------------------------------------------------------------------------------
Band 40 and Business (1) Business (2) First Class
above
---------------------------------------------------------------------------------------------------------------------------
All Others Economy Business (2) First Class
---------------------------------------------------------------------------------------------------------------------------
Flights (less than) 5.5 hours:
(1) If business class is not offered or available, AD first class is authorized.
lf AD first class is not available, non-AD employee guidelines apply. Soft
dollar or free tickets must be accepted when offered, regardless of class of
service.
Flights 5.5 to 8.5 hours:
(2) If business class is not offered or available, AD first class is authorized.
If AD first class is not available, non-AD employee guidelines apply. If
soft dollar or free tickets are available in business class, they must be
accepted.
Flights greater than 8.5 hours:
(3) Employees who hold IATAN cards may fly first class, based on availability.
If AD first class is not available, non-AD employee guidelines apply. If
soft dollar or free tickets are available in business class, they must be
accepted.
---------------------------------------------------------------------------------------------------------------------------
* Employees eligible for agency discounts must request and utilize AD tickets
for business travel.
** AEB employees should refer to Addendum 1 for class of air travel guidelines.
*** Soft dollars are promotional funds earned from individual airline partners
based on sales volume. Soft dollar tickets are charged to a special account,
not the employee's Corporate Card, and therefore, must not be expensed on an
expense voucher.
----------------------------------------------------------------------------- 7
1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
Authorized Exceptions:
. Travel to, from and within Africa; Russia; the European countries of Croatia,
the Czech Republic, Greece, Hungary, Poland and Turkey; the Middle Eastern
countries of Bahrain, Iran, Iraq, lsrael, Jordan, Kuwait, Lebanon, Oman,
Republic of Yemen, Saudi Arabia, Syria, United Arab Emirates; and the Asian
countries of Bangladesh, India, Indonesia, Pakistan, the Peoples Republic of
China, the Philippines, Sri Lanka, and Vietnam may be in business class. In
addition, all employees band 40 and above may fly business class to, from and
within the remaining Asian countries.
. Employees who travel on overnight flights, and proceed directly to work, may
upgrade from economy to business class. If business class is not available,
then first class is permitted. Employees who upgrade may not book an
additional hotel night if their hotel cannot gratuitously accommodate early
check-in or late check-out.
. When traveling with clients or customers, employees may use the same class of
service. In such cases, specific details must be noted on the traveler's
itinerary.
. Travel on the Concorde requires prior written approval from the Office of the
Chief Executive (OCE).
Employees Traveling Together
It is suggested that no more than two senior Company executives or 50% of the
employees of a department travel on the same commercial flight.
Use of Chartered or Private Aircraft
Employees may not use chartered or private aircraft while traveling on Company
business.
2. Car Rental
The use of rental cars is only justified when it is economically cheaper than
the best local ground transportation alternative, taking safety and travel time
into consideration. Personal convenience is not an acceptable justification. Car
rentals are to be booked through the designated American Express Travel or
Representative office which must use preferred suppliers, when available. Rental
cars should be returned on time and with a full tank of gas to avoid additional
hourly and excessive refueling charges. Employees traveling in the U.S. should
refer to Addendum 1 for car rental rates.
Rental cars must be intermediate size for North America and standard size for
other locations. Use of a rental car one size larger than that allowed by policy
is acceptable when: four or more employees travel together and share the rental;
entertaining customers; cars in authorized category are not available; the
upgrade is at no additional cost; transporting excess baggage; or pre-approved
for medical reasons, i.e., drivers with disabilities.
----------------------------------------------------------------------------- 8
1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
Car Rental Insurance Guidelines
The following table stipulates the policy for accepting or declining car rental
insurance, depending on the employee's domicile and travel destination:
------------------------------------------------------------------------------------------------------------------------------------
Domicile Destination Accept Decline Accident Notification
------------------------------------------------------------------------------------------------------------------------------------
U.S. U.S., territories, -- All insurance(1)(2) . Auto damage - Travelers
possessions and Insurance Co.
Canada 0-000-000-0000
. Bodily injury- Travelers
Insurance Co. 0-000-000-0000
------------------------------------------------------------------------------------------------------------------------------------
U.S. Outside U.S., All insurance -- . Bodily Injury - Corporate
territories and Risk Financing 000-000-0000
possessions
------------------------------------------------------------------------------------------------------------------------------------
Canada Canada, U.S., -- All insurance . Auto damage - Travelers
territories and Insurance Co. 0-000-000-0000
possessions . Bodily Injury - Travelers
Insurance Co. 0-000-000-0000
------------------------------------------------------------------------------------------------------------------------------------
Canada All other All insurance -- . Bodily Injury - Corporate
countries Risk Financing 000-000-0000
(except U.S.,
territories and
possessions)
------------------------------------------------------------------------------------------------------------------------------------
All other non- U.S., territories -- All insurance . Auto damage - Travelers
U.S./non- and possessions Insurance Co. 0-000-000-0000
Canada . Bodily Injury - Travelers
Insurance Co. 0-000-000-0000
------------------------------------------------------------------------------------------------------------------------------------
All EMEA Europe CDW/LDW if All other . Bodily Injury - Corporate
not included insurance Risk Financing 000-000-0000
in base rental
rate (2)
------------------------------------------------------------------------------------------------------------------------------------
All other non- countries other CDW/LDW -- . Bodily Injury - Corporate
U.S. except than own domicile and all other Risk Financing 000-000-0000
Canada and U.S., insurance
territories,
possessions,
Canada and
Europe
------------------------------------------------------------------------------------------------------------------------------------
1) Bodily injury and property damage liability; uninsured motorist; personal
injury protection; theft protection; personal accident and loss and damage.
2) CDW/LDW - collision damage waiver/loss damage waiver (damage to rental car).
3. Rail
Economy class should be used for rail travel under three (3) hours and
club/first class travel is permitted for trips exceeding three hours, where
airfare would be more expensive.
4. Taxis
Use of taxis and approved car services are authorized in cases where valid
business reasons warrant their use. The most economical and efficient means of
getting around at the travel destination should be used, taking safety into
consideration. The use of hotel courtesy coaches, when traveling to and from the
airport, should be evaluated as an alternative to
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
taxis. Employees traveling in the New York City area should refer to Addendum
1 for a list of American Express approved car services.
5. Company Cars
Employees with Company cars are expected to use them for local business-
related travel unless a more economical means of travel is available.
6. Personal Auto
The Company will reimburse employees for using their personal autos for
Company business when it is cheaper than the best local transportation
available and not for personal convenience. When using a personal auto, costs
are reimbursed as stated by local authorities. Refer to addendum 1 or local
market addendum for reimbursement rates. Employees will also be reimbursed for
parking and tolls. On long distance trips, i.e., over 300 miles or 500 kms,
car rental should be used as the less costly alternative.
7. Ferry/Car Ferry/Channel Tunnel
Employees may use ferries, car ferries or the Channel Tunnel where the total
cost is less than air or rail fare to the same location.
Travel to European centers by car and ferry is permitted provided a written
cost estimate is approved by a unit executive of band 45 or higher, prior to
the trip, and attached to the expense voucher. The decision to approve must
consider the loss of working hours between using the car and ferry and a more
expedient method of travel.
C. Lodging
Hotel reservations should be made by the designated American Express Travel or
Representative office.
1. Hotel Selection
Travel Counselors are instructed to book employees in preferred hotels with
which American Express has negotiated discounted employee rates. If a
preferred hotel is not available, employees must use a moderately priced hotel
listed in the American Express Select Hotel Guide, charging a rate at or below
the guideline rate set by American Express for the destination city. Lists of
preferred hotels and maximum guideline rates are available on the e-mail
bulletin board under Global Corporate Travel. The American Express Select
Hotel Guide is available at designated travel or representative offices or
from the Global Corporate Travel Group.
Employees holding IATAN (or IATA) cards (AD employees) are expected to request
and accept travel industry discounts at preferred hotels.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
Safety and security are of primary importance when employees are traveling on
Company business. If an employee arrives at a preferred hotel and feels that
there is a threat to his/her safety, the traveler may relocate to another hotel,
and be reimbursed. Travelers must, however, report this hotel, within 24 hours,
to the Global Corporate Travel Group responsible for the worldwide employee
hotel program. The Unit can be reached through e-mail (See addendum 1 for e-mail
addresses).
While hotel reservations should be booked by designated travel offices, there
will be occasions when individual, group or conference hotel reservations will
be booked directly, or where an American Express or Representative office in a
destination city can make a hotel reservation at a lower rate. In these
instances, the traveler is responsible for notifying his/her designated home
booking office of the accommodation, confirmation number and rate to complete
the traveler's itinerary.
When the combined costs of round trip ground transportation, to and from where
the employee must be for business purposes, and lodging at an American Express
preferred hotel equals or exceeds the combined cost of staying at another, more
conveniently located property, the alternate property may be used. In this case,
the Travel Counselor will note the reason for the exception on the traveler's
itinerary, and the reservation will be considered within policy. A detailed cost
comparison analysis must be attached to the expense voucher when submitting
related expenses for reimbursement.
For international flights arriving or departing at exceptionally early or late
hours, employees may book an additional day if the hotel cannot adequately
accommodate early check-in or late check-out. Where available, day rooms at
airports should be considered for such circumstances, or for long waits between
connecting flights. Employees traveling on an overnight flight and upgrading to
business class will not be reimbursed for an additional hotel day.
In instances where an American Express negotiated hotel is not available and the
only hotel available in the employee's business travel destination exceeds the
guideline rate, the Travel Counselor may make the reservation at the out-of-
policy hotel, noting on the itinerary that the employee is within policy and
why. Without the required itinerary indicating that the employee is within
policy or without written approval from a P&PC member, Vendors Payable will only
reimburse employees up to the guideline rate and employees are responsible for
paying the difference between the actual hotel rate and the guideline rate.
2. Hotel Cancellations
Travelers are responsible for canceling hotel reservations and must notify their
designated travel office of the cancellation. Any penalties incurred for not
canceling a guaranteed hotel
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
reservation are the responsibility of the traveler and not reimbursable.
Travel Counselors will not negotiate the removal of hotel cancellation fees.
3. Hotel Frequent Guest Programs
Some hotels have frequent guest programs that reward travelers with free
accommodations. Participation in these programs must not influence hotel
selection when it would result in a higher cost to the Company. Membership
fees associated with joining these programs are not reimbursable.
4. Lodging with Relatives/Friends
With prior approval of their manager, employees may choose to stay with
relatives or friends while traveling on Company business, in lieu of an
American Express negotiated preferred hotel. Employees will receive $25 for
each night lodging with relatives or friends. This includes weekend nights in
the midst of a trip, where the employee would not be entitled to return home,
as well as, weekend nights needed to take advantage of lower airfares. Meals
and incidentals are not included in the $25. Employees will be reimbursed
through normal expense voucher submission procedures, providing a brief
description of the circumstances on their expense voucher. The $25 may or may
not be taxable as income to employees, depending upon local tax laws.
D. Meals
The Company will reimburse employees for actual meal expenses following the
daily meal guideline established for their travel destination. When two or
more employees are eating together, meal guidelines per person should be
followed and the meal expense must be charged by the senior individual.
However, in cases where the employees are invited to a business meal as a
guest by the local management of the business destination, the host may charge
the meal. Meals with clients or business prospects are not subject to these
guidelines; however, they will be reimbursed only if reasonable and
appropriate.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
must be attached to the expense voucher when submitting related expenses for
reimbursement.
2. Weekend Return Home
Employees are entitled to return home on interim weekends of temporary
assignments. In general, once every three weeks while traveling within the
same continent and once every five weeks while traveling inter-continentally
are considered reasonable guidelines.
3. Weekend Side Trips
The cost of transportation, lodging and meals for weekend "side trips" to
alternate locations, on interim weekends of temporary assignments, is
reimbursable up to the cost of lodging and meals that would have been incurred
if the employee stayed at the business location. An analysis must be attached
to the expense voucher when submitting related expenses for reimbursement.
F. Spouse/Partner Travel
1. For Business or Achievement Awards
Travel expenses of a spouse/partner are not reimbursable as a business expense
unless a material and direct benefit to the Company will be derived from their
presence. However, if the Company invites or requests a spouse/partner to
accompany an employee on a business trip, to a meeting or to an achievement
award event, the Company will reimburse the employee for the spouse/partner's
travel expenses and reasonable dependent care, if applicable.
The spouse/partner is subject to the same travel policy guidelines as the
employee. In-policy spouse/partner expenses will be reimbursed through the
employee's expense voucher. Written approval must be obtained from the Unit
CFO prior to the trip and be attached to the expense voucher when it is
submitted.
2. ln Lieu of Employee Weekend Return Home
In lieu of a weekend return home trip, employees may elect to have a
spouse/partner visit them at their travel destination. The spouse/partner must
travel economy class and employees will only be reimbursed for transportation
costs up to the amount they would have incurred to travel home (e.g., airfare,
parking, mileage, taxi). An analysis must be attached to the expense voucher
when submitting related expenses for reimbursement. Spouse/partner weekend
lodging and meal expenses will not be reimbursed. The amount reimbursed will
be included in the employee's taxable income and will be subject to payroll
taxes.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
G. Temporary Assignments/Extended Business Trips
1. Lodging
Employees on temporary assignments or extended business trips exceeding 30
days should stay in leased, furnished apartments at their temporary locations,
in lieu of hotels, if these apartments are available, practical and cost
efficient. The local American Express business office should assist employees
in finding appropriate accommodations.
2. Meals and Incidental Expenses
Employees will receive a daily allowance to offset meals and incidental
expenses, including groceries, laundry and dry-cleaning. The allowance is in
lieu of specific expense reimbursements and must follow any guidelines
established by local authorities, e.g., IRS in the U.S. Daily allowances
should be reduced proportionately when meals are provided by others, i.e., 1/3
for each business meal attended. Contact your local tax office for applicable
per diem rates.
H. Emergency Travel
1. General Procedures
For any emergency situation, or if you unexpectedly need to change your travel
plans after office hours, contact the locally designated after-hours service
or the Emergency Travel Center at 0-000-000-0000 while traveling in the U.S.,
0-000-000-0000 in Canada and 000-000-0000 for all other locations. Call
collect or use AT&T USA Direct when not using one of the 800 numbers.
Emergency service is available 24 hours a day, 7 days a week, 365 days a year.
The Emergency Travel Center should not be used for non-emergency situations.
Refer to local market addendum for locally designated Emergency Travel Offices
outside the U.S. and Canada.
2. Personal Emergencies
In instances when a business trip is interrupted due to a family emergency,
all reasonable expenses incurred to return home are reimbursable.
I. Miscellaneous Travel Expenses
The following miscellaneous travel related expenses will be reimbursed:
. Reasonable telephone charges - When possible, office telephones should be
used for all calls. Employees should use a local calling card program that
bills charges to the American Express Corporate Card, where available, or a
personal calling card.
. Bottled water.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
. Reasonable laundry, dry-cleaning and pressing services during hotel stays
of more than 3 days.
. Medical expenses - In the case of a medical emergency while on a business
trip, reasonable and necessary doctors' bills, prescriptions, and other
medical services not covered by the employee's insurance program will be
reimbursed when supported by receipts. Reimbursed medical expenses are
included as income in the employee's taxable income and are subject to
payroll taxes.
. Reasonable tips.
. Emergency child care/dependent care expenses - When traveling on Company
business is not customarily part of an employee's job and the employee has
been given short notice of a trip without ample time to provide for regular
child or dependent care, the Company will bear additional care costs. A
brief explanation of the circumstances must be submitted with the expense
voucher.
J. Other Personnel - Travel Expenses
1. Consultants
Consultants are expected to follow the same policy guidelines as American
Express employees. When feasible, contracts should require consultants to
utilize American Express travel resources and products to minimize travel
costs. Travel and entertainment expenses, itemized on consultant invoices and
supported with original receipts, must be recorded as T&E expense in the
Company's accounting system.
2. Employment Candidates
Reasonable travel expenses, including airfare, lodging and meals, incurred by
external candidates will be reimbursed. These expenses should be charged to
the interviewer's Corporate Card, when possible, and submitted for
reimbursement on an expense voucher. Candidates who can reasonably return home
the day of the interview will not be reimbursed for lodging expenses, e.g.,
candidate lives in Boston and interviews in New York.
3. Employment Contracts
Employees who have employment contracts with American Express may be subject
to different reimbursable business expense policies and should consult their
contract for specific guidelines. When submitting claims for expenses
specifically allowed in the employment contract, employees must submit with
the expense voucher the portion of the contract that pertains to the expense
item.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
4. Expatriate Employees
Expatriate employees may be subject to different reimbursable expense policies
and should contact Expatriate Services at 000-000-0000 or their Human
Resources representative for specific guidelines.
IV. In-Town Travel
A. Meals
1. Employee Business Meals/Meetings
Meal expenses for employee business meetings. i.e., employees only, will be
reimbursed if costs are reasonable and meals are infrequent. Every effort
should be made to have these meetings in-house, e.g., cafeteria or approved
local caterer. If two or more employees are dining together, the senior
individual must charge the meal.
Personal development review meetings between a manager and a subordinate
should follow the in-house guideline for meetings during breakfast or lunch.
If schedules force these meetings to occur over dinner, a moderately priced
restaurant should be selected.
2. Worked Late/Holiday/Weekend Meals
If an employee works overtime: after normal hours, on a holiday or on a
weekend, the cost of meals will be reimbursed. See Addendum 1 or local market
addendum for guidelines.
3. Meals with Clients/Prospects
Reasonable business meals with business associates and clients that are
essential to conducting Company business will be reimbursed. If more than one
employee is present, the senior level employee must charge the meal.
Documentation of the attendees, their business relationship and topics
discussed, or benefits derived, must be written on the receipt or record of
charge (ROC). If a business meal meeting with a client is considered
confidential, the client's name need not be identified on the receipt, If this
would constitute a breach of confidentiality in the country where the client
is doing business. In this instance, a brief explanation must be provided on
the receipt.
4. Spouse/Partner In-Town Meal and Entertainment Expenses
Spouse/partner in-town meal and entertainment expenses are reimbursable if a
material and direct benefit to the Company will result from the presence of
the employee's spouse/partner, or the expense is incurred as part of a Company
sponsored event which specifically includes the spouse/partner. Refer to
Addendum 1 or local market addendum for additional guidelines.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
V. Group Travel
A. Approvals
Group meetings are Company-planned gatherings for at least 10 people.
Expenditures may include travel, meals, equipment rental, meeting rooms,
entertainment and other services. Group meetings must be approved in
accordance with the Company approval authority policy, considering the total
cost of the meeting to the Company, inclusive of all participants.
B. Cost Containment Measures
Employees are encouraged to use American Express group travel management
departments, e.g., GTMS in the U.S., to arrange group meetings and related
travel. International employees should contact their GTMS equivalent and
consult their local market addendum for additional guidelines. When a group
travel management department can not provide meeting services, employees
should contact their local travel management unit to ensure that they receive
the lowest negotiated air and hotel rates.
Group meetings can be a significant cost to the Company. As a result, the
meeting coordinator is expected to use preferred hotel properties whenever
feasible and consider the following techniques or measures to contain costs
when planning a meeting/event:
. A budget must be prepared and followed.
. Meeting frills must be kept to a minimum.
. American Express Company owned/leased facilities must be used, whenever
possible.
. The number of meeting days must be kept to a minimum.
. Group meetings, occurring at resort or tourist locations should be planned
off-season, whenever possible.
. Meeting sites should be within driving range for participants, if possible,
or at a location that will result in the least overall participant travel
cost to the Company.
. Volume discounts should be sought for all costs.
VI. Other Business Expenses
A. Entertainment
Reasonable entertainment expenses, i.e., non-meal activities, with business
associates and clients, that are essential to conducting Company business,
will be reimbursed. The Company must expect to derive income or some specific
benefit, at some definite future time, from business discussions before,
during or after the entertainment event. The senior level employee attending
the event must charge the expense.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
Season or Skybox entertainment tickets may only be purchased for business
purposes and require the prior written approval of a unit executive of band 70
or above. Employees should contact their local tax departments, to address any
tax issues, if the purchase of these tickets is being contemplated.
B. Club Memberships
Club memberships are limited to senior executives and should be essential to,
and used primarily for, conducting Company business. For country clubs, the
Company will reimburse the senior executive for membership in one club. The
Company will not pay for membership or other expenses incurred at any club or
facility with discriminatory practices. Club memberships (including renewals)
must be approved by a member of the Planning & Policy Committee.
C. Gifts
Refer to Addendum 1 or local market addendum for guidelines.
D. Purchases
Goods and services for business purposes should be purchased using the
American Express Corporate Purchasing Card, where available and whenever
possible. If the Corporate Purchasing Card is not available in your location,
purchases should be made through the Global Procurement representative for
your location. Employees should not be purchasing goods and services directly
from vendors when local purchasing functions exist. For AEB, system related
purchases must be made through EDS.
1. Supplies
Supplies should be purchased from vendors listed on the "Approved Supplier
List" maintained by Global Procurement and must be paid for with the Corporate
Purchasing Card, where available and whenever possible.
2. Temporary Services
Every attempt should be made to limit the use of temporary services. When
possible, the resources of other departments should be shared, or used, in
lieu of obtaining temporary help. Temporary help should be secured through
vendors with whom the Company has negotiated contracts, and paid for using the
Corporate Purchasing Card, where available and whenever possible.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
E. Telecommunications
1. Cellular Telephones
Refer to Addendum 1 or local market addendum for cellular telephone
guidelines.
2. Air/Rail Telephones
Except in an emergency, or when a critical business issue is involved,
employees should not use airphones, railphones or telephones in car services
or taxis, due to their high cost.
3. Faxes/Phone Lines
The installation and business usage of a fax or phone line outside of the
office requires prior written approval of a unit executive of band 45 or
above.
F. Training
The cost of training seminars should be charged to a Corporate Card or the
Corporate Purchasing Card, whenever possible.
G. Subscriptions
Subscriptions for general business publications, e.g., The Wall Street Journal
and Business Week, must be approved by a unit executive of band 70 or above.
Subscriptions for technical business publications necessary for performing job
functions, e.g., Financial Accounting Standards Board Update Service, US Tax
Reporter, will be reimbursed.
H. Professional Dues and Licenses
The Company will reimburse an exempt employee for membership fees in
professional job-related organizations. The Company will reimburse employees
for licenses necessary to perform job functions.
I. Team Building/Department Parties
Expenses for department parties, team meetings, holiday parties and outings
are limited to amounts designated for such events during the budget process.
In some countries, team building expenses are considered taxable benefits.
Employees should consult their local addendum for guidance on tax
implications.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
VII. Personal Employee Travel
Employees are eligible for personal leisure travel benefits. Refer to Addendum
1 or contact your designated travel office for a description of benefits.
VIII. Expense Reimbursement Procedures
A. Responsibilities
--------------------------------------------------------------------------------
Employee/Travel . Provide and maintain a current Traveler Profile at
Arranger designated travel/representative office.
. Incur expenditures in accordance with policy.
. Ensure arrangements are made in accordance with policy.
. Prepare accurate expense claims and submit them on a
timely basis with appropriate documentation attached.
. Utilize Corporate Card, whenever possible, and for
business purposes only.
. Keep Corporate Card account current.
--------------------------------------------------------------------------------
Designated . Provide information and travel options in accordance
Travel/Representative with policy: lowest logical airfares, lodging and car
Office rental rates of preferred vendors.
. Identify and note exceptions to policy.
--------------------------------------------------------------------------------
Cost Center . Manage travel budget and employee travel in accordance
Owner/Expense Approver with goals.
. Review & approve expense voucher claims on a timely
basis ensuring claims comply with policy.
. Enforce T&E policy compliance.
--------------------------------------------------------------------------------
Vendors Payable . Audit T&E expense claims against policy.
. Process claims for reimbursement in a timely manner.
. Reject claims which are out of policy.
--------------------------------------------------------------------------------
Global Corporate . Negotiate best-in-class terms with travel suppliers.
Travel . Provide guidance, expertise and training on all
travel-related matters.
. Monitor and control travel expenditures through Card
and Travel systems MIS.
. Continuously improve the business travel process.
. Recommend policy revisions for adoption.
--------------------------------------------------------------------------------
Senior Executives . Promote policy awareness and compliance by example.
--------------------------------------------------------------------------------
B. Support for and Submission of Claims
All expenses submitted for reimbursement must be itemized on an expense
voucher with the business purpose expressly stated. Employees submitting an
expense voucher for the first time, should provide their home mailing address
and telephone number on the expense voucher. Original documentation, as
described below, must be submitted with the expense voucher. Tear tabs are not
acceptable receipts. If original receipts have been lost, the
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
employee must acknowledge, in writing, that these expenses will not be submitted
again and the applicable expense item must be initialed on the Travel Expense
Voucher by the approver. Refer to local market addendum for additional
documentation requirements.
--------------------------------------------------------------------------------
Expense Required Documentation
--------------------------------------------------------------------------------
Air Transportation Travel itinerary, passenger coupon of airline ticket,
boarding pass and ROC. In the case of electronic ticketing,
the faxed or emailed passenger receipt of the electronic
ticket in lieu of the passenger coupon.
--------------------------------------------------------------------------------
Car Rental Travel itinerary, car rental agreement and ROC.
--------------------------------------------------------------------------------
Personal Auto Parking and Toll receipts.
--------------------------------------------------------------------------------
Lodging Travel itinerary, hotel invoice and ROC.
--------------------------------------------------------------------------------
Meals Hotel xxxx, ROC or receipt for expenses of US$25 or more.
Business purpose, attendees, titles and their affiliations
must be noted. If a business meal meeting with a client is
considered confidential, the client's name need not be
identified on the receipt, if this would constitute a breach
of confidentiality in the country where the client is doing
business. In this instance, a brief explanation must be
provided on the receipt.
--------------------------------------------------------------------------------
Entertainment A receipt for any expense of US$25 or more. Names of
individuals entertained, their titles and company name. The
name and location of the establishment where the meal or
event took place. The exact amount and date of the expense.
The specific business topic discussed, and in the case of
entertainment events, the specific time the business
discussion took place, i.e., before, during or after the
event.
The name of individuals entertained need not be identified
on the receipt if this would constitute a breach of
confidentiality in the country where the persons are doing
business. In this instance, a brief explanation must be
provided on the receipt.
--------------------------------------------------------------------------------
Meal allowances ROC or receipt for all expenses regardless of amount.
--------------------------------------------------------------------------------
Telephone, Telex, AT&T Calling Card calls - Corporate Card statement; Other
Fax Card Card calls - Calling Card statement.
--------------------------------------------------------------------------------
Taxi/Local Receipt for all expenses regardless of amount, in countries
Transportation where possible.
--------------------------------------------------------------------------------
Other Expenses Receipts or supporting documentation for all items of US$25
or more.
--------------------------------------------------------------------------------
Out of Policy Written approval must be attached to the expense voucher,
Exceptions along with a brief explanation or appropriate documentation
supporting the business reason for the exception.
--------------------------------------------------------------------------------
Employees must submit all pages of their original travel itineraries with their
expense vouchers. Employees will not be reimbursed for air travel, lodging or
car rental expenses
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
unless an itinerary is attached to the expense voucher to ensure that the
reservations were made through a designated American Express Travel or
Representative office and are in compliance with travel policy guidelines. If
an employee's designated Travel or Representative office does not generate
travel itineraries, a note to that effect must be attached to the expense
voucher. An employee's expense voucher must be reviewed and approved by their
direct supervisor and/or cost center owner.
Employees should contact Vendors Payable for clarification on expense
reimbursement procedures and documentation requirements.
IX. Non-Reimbursable Expenses
The following list of non-reimbursable expenses is provided only as a guide
and is not necessarily all inclusive. When unsure, clarification should be
sought from the Global Corporate Travel Group or Management & Finance Policy
Group prior to incurring expenses.
. Airline or other travel insurance, including automatic flight insurance.
Employees traveling on Company business are automatically covered under the
Company's business travel accident plan. See Employee Benefits Handbook or
contact Human Resources for additional information.
. Barbers and hairdressers.
. Car washes for personal cars and short-term car rentals (one week or less).
. Clothing.
. Costume rental, including formal dinner clothes, unless required and not
expected to be provided by the employee. Purchases of formal clothes are
not reimbursable.
. Excess baggage, except Company documents and equipment necessary for the
business trip. Prior approval of unit executive of band 45 or above is
required.
. Golf or tennis court fees, golf clubs, or any other sporting equipment,
except when part of customer entertainment or an authorized group meeting.
. Kennel cost for dogs and other pets.
. Delinquency charges or reinstatement fees for the Corporate Card.
. Luggage lost or delayed on Company business. Refer to Addendum 1 for
additional guidelines.
. Newspapers and videos.
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1998 AMERICAN EXPRESS EMPLOYEE TRAVEL AND EXPENSE GUIDE
. Passport issuance costs, unless required to travel for business purposes.
. Traffic and parking violations.
. Toiletry articles such as toothbrush, toothpaste and shampoo.
. Reserved parking spots used during normal business day routine.
. Personal telephone calls, considered excessive in amount.
. Hotel charges incurred from failing to cancel reservations.
. Hotel room movies.
. Hotel health and fitness center charges. Employees desiring these
facilities should stay at preferred properties offering them at no
additional cost.
. Car service "no show" charges or charges for personal stops with associated
waiting time while en route.
. Airline Club dues.
. Airline schedule pocket guides.
. Snacks and refreshments consumed during working hours such as coffee, soda,
candy, etc., which are in addition to meal charges for breakfast, lunch and
dinner.
. Doctor bills, prescriptions or other medical services. Refer to your
employee benefits medical plan. See section III, "Miscellaneous Travel
Expenses" for exception.
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ADDENDUM 1-1998 EMPLOYEE GUIDE Appendix 1a
Segment and Regional Supplemental Guidelines
This addendum should be used in conjunction with the American Express Employee
Travel & Expense Guide. Within the context of the Guide, it provides additional
policy guidance to employees of specific regions and business segments. Where
the Guide and Addendum appear inconsistent, the Addendum should be followed.
A. Index 1
B. United States 2
C. American Express Bank (AEB) 6
D. American Express Financial Advisors (AEFA) 8
----------------------------------------------------------------------------- 1
ADDENDUM 1-1998 EMPLOYEE GUIDE Xxxxxxxx 0x
X. Xxxxxx Xxxxxx
1. Expense Voucher Submission and Corporate Card Account Reconciliation
Only one expense reimbursement submission may be made per month and Corporate
Card accounts should be reconciled monthly to prevent account delinquencies.
Account balances outstanding for 60 days will be charged a delinquency fee.
Account balances outstanding for 120 days will be canceled. And at 180 days, the
delinquency will be reported to a credit bureau and appear on the employee's
personal credit report. Employees are responsible for paying any delinquency and
reinstatement fee incurred.
2. Cash Advances
Cash advance limits are: $50 per day for domestic travel up to a maximum of
$200; and $100 per day for international travel up to a maximum of $500. Contact
the American Express Corporate Card Program Administrator to obtain information
about and enroll in American Express cash product programs.
3. Car Rental
The rates below are available within the USA:
COMPANY BASIC RATE ACCOUNT#
-----------------------------------------------------------------
Alamo US$37.00 502279
Avis US$41.00 AB572100
Budget US$37.00 T236100
Hertz US$42.00 CDP157564
National US$40.75 5201708
These rates apply to U.S. based employees, as well as, non-U.S. based employees
traveling in the U.S.
4. Personal Auto
Mileage for business trips will be reimbursed at the IRS tax deductible rate in
effect, i.e., 32.5 cents per mile for 1998. The auto mileage reimbursement rate
is meant to cover all operating related expenses, including insurance and
deductibles. Damage to an employees personal auto while being used for company
business will not be reimbursed.
5. In-Town Expenses
Worked Late Meals
If an employee works overtime and past 7PM, dinner will be reimbursed ($15 for
NYC employees). If an employee works 4 hours or more on a holiday or weekend,
lunch will be reimbursed ($10 for NYC employees).
----------------------------------------------------------------------------- 2
ADDENDUM 1-1998 EMPLOYEE GUIDE Appendix 1a
Worked Late Transportation
If an employee works overtime and past 8PM, the Company will reimburse the
employee for the use of a taxi or approved car service to the their home. For
employees living outside city limits, use of a taxi or car service to the most
convenient and safest public transportation is encouraged. Receipts are required
for all transactions.
American Express Approved Car Services In the NY Area
When using American Express approved car services, payment must be made on the
Corporate Card, unless the employee does not have a Corporate Card. For NYC
employees, car service vouchers are available at the cashiers window on the 44th
floor of the WFC for use by employees who do not have a Corporate Card.
All Employees (U.S. and non-U.S.) must use the following companies when using
car services in the New York City area:
Company Account # Phone Number "800" number
-------- --------- ------------ ------------
MinuteMen 0000 (000) 000-0000 (000) 000-0000
Utog 0000 (000) 000-0000 (000) 000-0000
Battery 0000 (000) 000-0000 (000) 000-0000
Garden State 000 (000) 000-0000 (000) 000-0000
For short trips, yellow cabs are typically more economical and should be used.
Employees are subject to non-reimbursable no show charges if they fail to use a
requested car. Additional stops and waiting time are extra. Tips are included in
the rate and are, therefore, not necessary.
6. Virtual Office Policy
The Virtual Office Policy will be available during the second quarter of 1998
through the Employee Relations Group (ERG). In the interim, employees with
virtual office policy questions should contact American Express Real Estate
Services (ARES) or their local real estate support group.
7. Employee Personal Travel Benefits
All fulltime and part-time U.S. employees and retirees of American Express and
their spouses/partners and unmarried children under 21 years old are entitled to
the following personal travel benefits:
. Discount equal to 50% of commissions paid to American Express by a cruise
line, tour operator, or package provider for cruises tours and land packages.
. "Employee Traveler" special sales - Deeply discounted special travel savings.
. Use of American Express negotiated preferred hotel and airline rates.
To book personal travel, employees should contact the American Express Leisure
Travel Office at 1-800-522-AMEX.
----------------------------------------------------------------------------- 3
ADDENDUM 1-1998 EMPLOYEE GUIDE Appendix 1a
8. Gifts
1. Gifts To Clients/External Parties
Gifts to U.S. business associates or clients cannot exceed US$25 per person
per year and will be reimbursed, or paid for, by the Company only if they bear
a direct relationship to Company business. The US$25 limit does not apply to
items that are for general distribution with a cost of US$4 or less and have
the Company's name clearly and permanently imprinted on them.
Gifts to non-U.S. business associates and clients will be reimbursed when the
value of the gift is reasonable. Gift giving is permissible if it is a widely
accepted local custom that is consistent with local laws and regulations.
Gifts to Companies are not subject to the US$25 limit if they are not intended
for an individual's personal use. The value of these gifts must be reasonable.
2. Gifts to Employees
Gifts to employees are generally considered taxable fringe benefits, except
for length of service awards, handled by Human Resources. Cash awards, e.g.,
gift cheques, gift certificates, of any amount are included in the employee's
taxable income and subject to payroll taxes, where applicable.
The value of these gifts should not exceed US$99. The Company will reimburse
employees for gifts up to US$99. Amounts over US$99 are the responsibility of
the gift-giver(s).
Customary gifts, such as flowers, gift-baskets, or charitable contributions,
sent for a birth, major illness, or bereavement can be charged to the Company.
However, gifts for holidays, showers, birthdays and weddings are not
reimbursable.
9. Cellular Telephones
Usage of cellular telephones is permitted for valid and sustained business
purposes, e.g., field sales personnel, and requires prior written approval by a
unit executive of band 70 or above. The Cellular phone provider must be
stipulated by the Global Procurement Department and charged with the Corporate
Card.
Employees will be reimbursed for reasonable business usage up to 200 minutes per
month. The usage charges itemized on the Corporate Card statement must be
submitted for reimbursement. Personal use of cellular phones will not be
reimbursed. Contact Global Procurement for additional guidelines and equipment
purchase procedures.
10. Baggage Insurance
All U.S. Employees traveling on business (and charging their airline ticket to
the Corporate Card) are covered under the American Express Baggage Insurance
Plan, which provides automatic
----------------------------------------------------------------------------- 4
ADDENDUM 1-1998 EMPLOYEE GUIDE Appendix 1a
coverage up to $1,250 for carry-on and up to $500 for checked baggage, in
excess of the common carrier's coverage. Call 0-000-000-0000 for more
information, claim reporting, or a copy of the Description of Coverage.
11. Key Contacts
--------------------------------------------------------------------------------------------------------------------------
Designated AMEX Travel or Representative Offices:
--------------------------------------------------------------------------------------------------------------------------
For AD and Xxxxx 00 and Above (000) 000-0000 (Executive Travel)
(New York and Phoenix Based Only)
--------------------------------------------------------------------------------------------------------------------------
For SROC and Weston (000) 000-0000 or (000) 000-0000 (Jacaranda Travel)
--------------------------------------------------------------------------------------------------------------------------
For All Others (000) 000-0000 (San Antonio Travel)
--------------------------------------------------------------------------------------------------------------------------
Emergency Travel Center:
In the United States (000) 000-0000
Overseas (AT&T USA Direct or Collect) (000) 000-0000
Canada (000) 000-0000
--------------------------------------------------------------------------------------------------------------------------
Employee Personal/Leisure Travel (800) 522-AMEX (2639)
--------------------------------------------------------------------------------------------------------------------------
Group Travel Management Services (GTMS):
Xxx Xxxxxxxxx (000) 000-0000
--------------------------------------------------------------------------------------------------------------------------
Global Corporate Travel Group E-mail Addresses:
Office Vision - GLOBAO2 Mailhub1
Lotus Notes & cc:Mail - Global Corporate Travel
Internet - GlobalCorporate Xxxxxx@XXXX.xxx
--------------------------------------------------------------------------------------------------------------------------
Management & Finance Policy Group E-mail Address: "Management and Finance Policy Group"
--------------------------------------------------------------------------------------------------------------------------
AT&T Tariff 12 Card and USADirect:
Xxxxx Xxxxxxx (000) 000-0000
--------------------------------------------------------------------------------------------------------------------------
Corporate Travelers Cheque Program
In the US (000) 000-0000
Outside the US 492-5450/ (000) 000-0000 (collect)
--------------------------------------------------------------------------------------------------------------------------
Car Rental Accident Reporting
Collision Damage (000) 000-0000
Bodily Injury (000) 000-0000 (Traveling in the U.S.)
(000) 000-0000 (Traveling outside the U.S.)
Lost or Stolen (000) 000-0000
--------------------------------------------------------------------------------------------------------------------------
Tax Department
Xxxx Xxxxxx (000) 000-0000
Xxxx XxXxxx (000) 000-0000
Xxxxxxxxx Xxxxxx (AEFA) (000) 000-0000
--------------------------------------------------------------------------------------------------------------------------
Human Resources- Relocation/Extended Stay
Housing Xxxx Xxxx (000) 000-0000
--------------------------------------------------------------------------------------------------------------------------
T&E Vouchers
FRC Help Desk (000) 000-0000
--------------------------------------------------------------------------------------------------------------------------
Procurement Fax Information Service - for forms (000) 000-0000
--------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------- 5
ADDENDUM 1-1998 EMPLOYEE GUIDE Appendix 1a
C. American Express Bank (AEB)
1. Out of Town Travel
Class of Air Travel
Class of air travel must adhere to the guidelines summarized in the table below.
Exceptions to these standards require the prior written approval of the AEB CEO.
---------------------------------------------------------------------------------------------------
CLASS OF AIR TRAVEL
---------------------------------------------------------------------------------------------------
Flights (less than)5.5 Flights 5.5 - 8.5 Flights (greater than)8.5
Hours Hours Hours
---------------------------------------------------------------------------------------------------
Band 70 + Coach Business First
---------------------------------------------------------------------------------------------------
Band 50 + Coach Business Business
---------------------------------------------------------------------------------------------------
All others Coach Coach Business
---------------------------------------------------------------------------------------------------
Restriction:
. First Class air travel is not permitted between the US and Western Europe
(i.e., locations west of Vienna, Austria).
-------------------------------------------------------------------------------
Authorized Exceptions:
. Travel to, from and within Africa; Russia; the European countries of
Croatia, the Czech Republic, Greece, Hungary, Poland and Turkey; the Middle
Eastern countries of Bahrain, Iran, Iraq, lsrael, Jordan, Kuwait, Lebanon,
Oman, Republic of Yemen, Saudi Arabia, Syria, United Arab Emirates; and the
Asian countries of Bangladesh, India, Indonesia, Pakistan, the Peoples
Republic of China, the Philippines, Sri Lanka, and Vietnam may be in
business class. In addition, all employees band 40 and above may fly
business class to, from and within the remaining Asian countries.
. Employees who travel on overnight flights, and proceed directly to work,
may upgrade from economy to business class, with prior written approval
from the appropriate Line of Business/Function Head. If business class is
not available, then first class is permitted. Employees who upgrade may not
book an additional hotel night if their hotel cannot gratuitously
accommodate early check-in or late check-out.
. When traveling with clients or customers, employees may use the same class
of service. In such cases, specific details must be noted on the traveler's
itinerary.
2. Spouse/Partner In-Town Meal and Entertainment Expenses
Spouse/partner in-town meal and entertainment expenses are reimbursable if a
material and direct benefit to AEB will result from the presence of the
employee's spouse/partner, or the expense is incurred as part of an AEB
sponsored event which specifically includes the spouse/partner. In either case,
written approval from the appopriate Line of Business Head and Regional
Controller must be obtained for these expenses to be reimbursed.
----------------------------------------------------------------------------- 6
ADDENDUM 1-1998 EMPLOYEE GUIDE Appendix 1a
3. Club Memberships
Club memberships should be limited to those essential to, and primarily used
for, conducting AEB business. Club memberships (including renewals) require
prior written approval from the office of the AEB CEO. All expatriates should
follow the Business and Personal Club Memberships Policy which can be obtained
from your local Human Resources Representative.
4. Subscriptions
Subscriptions to the American Banker require prior written approval of the AEB
CEO.
5. Network Office T & E Expense Policy Requirements
Network office employees should refer to local policy supplements established by
their Country Controller. The policy supplements address the following:
A. Cash advance procedures including daily limits, maximum allowances and
settlement requirements; and in locations where available, cash advance
accounting procedures.
B. In locations where the Corporate Card is not available, establishment of
local authorized principal payment methods.
C. Local American Express Business Travel Center office reservation procedures,
including addresses, telephone numbers, office hours, ticket delivery
instructions and the local travel office 24 hour hotline number for enroute
changes and travel arrangement emergencies.
D. Local policy guidelines for taxi and other local transportation, based on
local business customs and individual city circumstances, and any other local
policy guidelines for in-town transportation.
E. Local car rental company names, account numbers, rates and contact numbers.
Local automobile reimbursement rates based on local government regulations,
customs or operating costs.
F. Acceptable additional limits for lodging and meal expenses based on local
business customs and individual city circumstances. Additional local policy
guidelines for in-town business meals and supper money, including expense
limits.
G. In locations where available, an AT&T, or equivalent, calling card policy for
all business phone calls made outside of the Office.
H. In locations where the Corporate Card is not available, payment of fees for
personal American Express Cards or other credit cards.
I. Local contact names and telephone numbers.
J. Expense voucher preparation and submission procedures.
----------------------------------------------------------------------------- 7
ADDENDUM 1-1998 EMPLOYEE GUIDE Appendix 1a
D. American Express Financial Advisors (AEFA)
This addendum should be used in conjunction with the AEFA 1997/1998 Employee
Resource Guide and the 1998 American Express Employee Travel and Expense Guide.
Where differences exist between guides, this addendum and the Employee Resource
Guide supersedes the American Express Employee Travel and Expense Guide.
1. Air Travel
Class of air travel must adhere to the guidelines summarized in the table below.
Exceptions to these standards require the prior written approval of the AEFA
President and CEO and the SVP - Finance and CFO.
-------------------------------------------------------------------------------
CLASS OF AIR TRAVEL
-------------------------------------------------------------------------------
Flights (less than)6.5 Flights (greater than)6.5
Hours Hours
-------------------------------------------------------------------------------
SVP's Coach First
-------------------------------------------------------------------------------
All Others Coach Business
-------------------------------------------------------------------------------
If the higher class of service for which the employee is eligible is not
available then the next lower class of service must be used. All employees
must accept the lowest logical fare. Lowest logical fare is defined as the
lowest priced non-stop route, departing within 1 hour of your requested
departure time, although employees may use connecting or stopover flights for
greater savings.
Authorized Exceptions:
. Travel to, from and within Africa; Russia; the European countries of
Croatia, the Czech Republic, Greece, Hungary, Poland and Turkey; the Middle
Eastern countries of Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon,
Oman, Republic of Yemen, Saudi Arabia, Syria, United Arab Emirates; and the
Asian countries of Bangladesh, India, Indonesia, Pakistan, the Peoples
Republic of China, the Philippines, Sri Lanka, and Vietnam may be in
business class. In addition, all employees band 40 and above may fly
business class to, from and within the remaining Asian countries.
. When traveling with clients or customers, employees may use the same class
of service. In such cases, specific details must be noted on the travelers
itinerary.
-------------------------------------------------------------------------------
Employees may use frequent flyer award tickets in lieu of purchasing a ticket.
If you chose this alternative, you will be reimbursed up to $300 for each round
trip provided the amount is less than the amount the employee would have
incurred on a regularly scheduled flight. The $300 will be included in the
employees taxable income.
----------------------------------------------------------------------------- 8
ADDENDUM 1-1998 EMPLOYEE GUIDE Appendix 1a
2. Cash Advances
Employees are not able to receive cash travel advances. For expenses which
cannot be charged to the Corporate Card, employees should use Corporate
Travelers Cheques (CTC's).
For extreme circumstances, when an employee must book air or other reservations
so far in advance that the trip will be charged to the Corporate Card before the
employee travels and submits an expense reimbursement, an advance payment can be
made. You need to contact your Controller or Corporate Accounting Operations, to
obtain approval to receive an advance payment.
3. Spouse/Guest Travel
Spousal or guest expenses for business related travel will be reimbursed and
excluded from the employee's income. Pre-approval, in writing is required from
the business unit SVP. SVP's or above must have their immediate manager's
approval. The spouses/guests presence must be shown to be both essential and
directly related to the effective accomplishment of Company business. A copy of
the SVP's approval, documentation of the business purpose, and separate
documentation of the spouse/guests expenses must be attached to the employee
reimbursement form in order to be reimbursed.
Spousal or guest related expenses for non-business related travel will be
reimbursed and included in the employee's income. Pre-approval, in writing is
required from the business unit SVP. SVP's or above must have their immediate
manager's approval. A copy of the SVP's approval and separate documentation of
the spouse/guests expenses must be attached to the employee reimbursement form
in order to be reimbursed.
4. Miscellaneous Travel Expenses:
. Medical Expenses - non-reimbursable.
. Child care/dependant care. For details, refer to the AEFA Employee Resource
Guide.
5. In-town Travel
Refer to the AEFA Employee Resource Guide.
6. Other Business Expenses
Refer to the appropriate section of the AEFA Employee Resource Guide or contact
your Controller or Corporate Accounting Operations.
----------------------------------------------------------------------------- 9
1998 Hourly Rates - BSH
Hourly Rates (updated 3/98) Appendix 2
Agency Function and title $ per hour
------ -------------------- -----------
BSH Account - Account Director, Associate/VP [***]
BSH Account - Account Director, EVP [***]
BSH Account - Account Director, SVP [***]
BSH Account - Account Director, VP [***]
BSH Account - Account Executive [***]
BSH Account - Account Executive, Associate [***]
BSH Account - Account Supervisor [***]
BSH Account - Account Supervisor, VP [***]
BSH Account - Chief Executive Officer [***]
BSH Account - Vice Chairman [***]
BSH Creative - Art Buyer [***]
BSH Creative - Art Buyer, Assistant [***]
BSH Creative - Art Buyer, Manager [***]
BSH Creative - Art Buyer, Senior [***]
BSH . Creative - Art Director [***]
BSH Creative - Art Director, Assistant [***]
BSH Creative - Art Director, Executive/VP [***]
BSH Creative - Art Director, Senior [***]
BSH Creative - Art Director, Senior/VP [***]
BSH Creative - Chief Creative Officer, Vice Chairman [***]
BSH Creative - Copywriter [***]
BSH Creative - Copywriter, Junior [***]
BSH Creative - Copywriter, Senior [***]
BSH Creative - Copywriter, Senior/VP [***]
BSH Creative - Creative Director, Executive [***]
BSH Creative - Creative Director, VP [***]
BSH Database Mktg - Analyst [***]
BSH Database Mktg - Analyst, Associate [***]
BSH Database Mktg - Analytical Services Director [***]
BSH Database Mktg - Analytical Services Director, Associate [***]
BSH Database Mktg - Business Technology Consultant [***]
BSH Database Mktg - Business Technology Consultant, Senior [***]
BSH Database Mktg - Business Technology Director [***]
BSH Database Mktg - Consultant [***]
BSH Database Mktg - Consultant, Senior [***]
BSH Database Mktg - Director, Associate [***]
BSH Database Mktg - Director, VP [***]
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Page 1
1998 Hourly Rates - BSH
BSH Database Mktg - Manager [***]
BSH Database Mktg - Program Designer [***]
BSH Database Mktg - Program Designer, Senior [***]
BSH Database Mktg - Project Manager [***]
BSH Database Mktg - Project Manager, VP [***]
BSH Database Mktg - VP [***]
BSH ESPM - Account Director, VP [***]
BSH ESPM - Manager [***]
BSH ESPM - Marketing Director, Associate/VP [***]
BSH ESPM - Supervisor, VP [***]
BSH ESPM - SVP [***]
BSH lnfo Services - Systems Designer [***]
BSH IRBC - CCTL Manager, Senior [***]
BSH IRBC - Manager [***]
BSH IRBC - Specialist [***]
BSH Partnership Mktg - Director [***]
BSH Partnership Mktg - Manager [***]
BSH Partnership Mktg - VP [***]
BSH Planning & Analysis - Analyst [***]
BSH Planning & Analysis - Associate [***]
BSH Planning & Analysis - Director, Associate [***]
BSH Planning & Analysis - Manager [***]
BSH Planning & Analysis - SVP [***]
BSH Planning & Analysis - VP [***]
BSH Production - Coordinator [***]
BSH Production - Manager, Assistant [***]
BSH Production - Manager, Senior [***]
BSH Production - Manager, Senior/VP [***]
BSH Production - VP [***]
BSH Research & Analysis - Analyst [***]
BSH Research & Analysis - Analyst, Senior [***]
BSH Research & Analysis - Coordinator [***]
BSH Research & Analysis - Coordinator, Senior [***]
BSH Research & Analysis - Director [***]
BSH Research & Analysis - Director, Associate [***]
BSH Research & Analysis - Manager [***]
BSH Scope of Work Adjustment [***]
BSH Teleservices - Analyst [***]
BSH Teleservices - Coordinator [***]
BSH Teleservices - Director, Associate/VP [***]
BSH Teleservices - Director, Managing/VP [***]
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Page 2
1998 Hourly Rates - BSH
BSH Teleservices - Director, VP [***]
BSH Teleservices - EVP [***]
BSH Teleservices - Manager [***]
BSH Teleservices - Manager, Senior [***]
BSH Test Lab - Agent [***]
SIG SIG Account - Account Director, Associate [***]
SIG SlG Account - Account Director, Associate/VP [***]
SIG SIG Account - Account Director, Senior/VP [***]
SIG SIG Account - Account Director, VP [***]
SIG SIG Account - Chief Int. Architect, SVP [***]
SIG SIG Account - Group Director, SVP [***]
SIG SIG Account - Media Analyst [***]
SIG SIG Account - Media Analyst, Senior [***]
SIG SIG Account - Media Manager [***]
SIG SIG Account - President [***]
SIG SIG Analysis - Director, VP [***]
SIG SIG Analysis - Manager [***]
SIG SIG Analysis - Measurement Analyst [***]
SIG SIG Analysis - Measurement Tech Consultant [***]
SIG SIG Content - Editor, Associate [***]
SIG SIG Content - Editor, Senior [***]
SIG SIG Creative - Art Director [***]
SIG SIG Creative - Art Director, Senior [***]
SIG SIG Creative - Copywriter [***]
SIG SIG Creative - Copywriter, Junior [***]
SIG SIG Creative - Copywriter, Senior [***]
SIG SIG Creative - Creative Director, Associate [***]
SIG SIG Creative - Creative Director, Associate/VP [***]
SIG SIG Creative - Creative Director, VP [***]
SIG SIG Creative - Designer [***]
SIG SIG Creative - Designer, Junior [***]
SIG SIG Creative - Designer, Principal [***]
SIG SIG Creative - Designer, Senior [***]
SIG SIG Development - Chief Technology Officer, VP [***]
SIG SIG Development - Media Director, Associate [***]
SIG SIG Development - Media Director, Associate/VP [***]
SIG SIG Development - Programmer Analyst [***]
SIG SIG Development - Programmer Analyst, Principal [***]
SIG SIG Development - Programmer Analyst, Senior [***]
SIG SIG Development - Technology Manager, Associate [***]
SIG SIG Media - Coordinator [***]
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Page 3
1998 Hourly Rates - BSH
SIG SlG Media - Media Director, Associate/VP [***]
SIG SIG Media - Media Director, VP [***]
SIG SIG Media - Planner [***]
SIG SIG Media - Supervisor [***]
SIG SIG Production - Coordinator [***]
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Page 4
Retainer Appendix 3
Billing Rate Proposed
(pre-negotiated Proposed % # Hours * Proposed
Likely every two years) Time For For Counseling Retainer
Agency Function** Title Candidates ($/hr) Counseling Amex Amex ($M)
------------------- --------- ----------- ---------------- ----------------- ---------------- ------------
E.g. Account Management
E.g. Creative
Amex senior management will determine which agency senior staff members will be
on retainer and for what % of their time, on a 12 monthly basis or other
periods of time that are deemed appropriate
* Note: Standard year is assumed to be 1,600 hours
** Retainer definition:
Under normal circumstances, only senior agency staff that are involved in
strategic counseling capacity will be considered to be on retainer. The
concept of retainer is to buy out a % of agency senior strategic thinkers'
time to work on the overall Amex strategy which are not "project" based. In
most situations, only account management / marketing or strategy function
people are on retainer.
Typically, no supervisors' time should be on retainer because their time are
covered by ratecards or projects priced using hourly rates. A typical
situation where supervisor time might be considered to be on retainer is when
there is little or no execution outputs for the period but Amex marketing
still requires Agency supervisor to be dedicated to Amex.
Page 1
Counseling Fee Ratecard-Page 1 of 2 (version 7.3.98) Appendix 4a
Project preparation and presentation of work-in-progress and final results are
included in all the ratecard categories
------------------------------------------------------------------------------------------------------------------------------------
Simple Moderate Complex
------------------------------------------------------------------------------------------------------------------------------------
Competitor Review . Review of competitors' . Moderate scope . Qualitative review of
offers and campaigns - 3-10 competitors competitors' positionings
. Limited scope - 5+ kinds of defined and strategies
- 1-2 competitors information types . Large scope
- 1-5 data points . Moderate difficulty - Industry-wide/l0-15
. Easily accessible information accessing information competitors
- Library, public sources - Large number of
- Straightforward phone information types,
surveys amorphous qualitative
information
. May require extensive
secondary/complicated
research
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Focus Groups . Attendance at 1 in-town . Attendance at and preparation . Attendance at and preparation
(Incl. 2 agency people per (less than 2 hours travel (incl. up to 5 white card (incl., up to 5 white card
focus group location; time) focus group location concepts, input on concepts, input on
Multiple boxes will be questionaires, etc.) for 1 questionaires, etc.) for 1
checked for a multiple (i.e. a Chicago, L.A. NY in-town (less than 2 hours out-of-town (2+ hours
focus group location tour will be a complex, travel time) focus group travel time) focus
project) Creative because of the Chi. out-of- location OR group location
development used in town prep. and attendance, . Attendance at 1 out-of-town
focus groups will be based a moderate because of the (2+ hours travel time) (i.e. a Chicago, LA, NY tour
on execution ratecard. LA out-of-town attendance, focus group location will be a complex, because
Rough comps will be and a simple because of the (i.e. a Chicago, LA, NY tour of the Chi. out-of-town
charged at [***] of NY in-town attendance) will be a complex, because prep. and attendance, a
ratecard cost. of the Chi. out-of-town moderate because of the LA
prep. and attendance, a out-of-town attendance, and
moderate because of the LA a simple because of the NY
out-of-town attendance, and a in-town attendance)
simple because of the NY
in-town attendance)
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Segmentation . Model development . Cluster analysis . Business Unit Level
counseling . Recommendation and variable Segmentation of existing
- Agency works with Amex selection for further CM Base
modelers to provide detailed analysis . New target acquisition
input into variable market segmentation
selection and segment
identification
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Additional . 1-2 presentations within . 3-6 presentations . 6+ presentations
Presentation the same business unit . Involvement of MS and above . Meetings with other business
to personnel other than . Preparation of visual aids units and SEs
immediate team required . Preparation of visual aids
required
. Involvement of MS and above
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Counseling Fee Ratecard-Page 2 of 2 (version 7.3.98) Appendix 4a (continued)
Project preparation and presentation of work-in-progress and final results are
included in all the ratecard categories
------------------------------------------------------------------------------------------------------------------------------------
Simple Moderate Complex
------------------------------------------------------------------------------------------------------------------------------------
Product Development Support . Offer/Service development . Program development . New Product development
. Includes: . 1 or no SE/Partner . Product Feature development . 4-6 SE/Partners
- idea generation, . Agency in supporting role . 2-3 SE/Partners . Agency performing majority
feature configuration to Amex . Agency and Amex work of development
. Excludes: together equally
- communication plan,
focus group
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Product Positioning . Positioning statement as . Positioning statement as the . Positioning statement, sample
the only deliverable only deliverable copy, other sample creative
. Offer/Service positioning . Program/Product Feature . High profile product/Major
. 1-3 positioning statements positioning Program positioning
. 4-6 positioning statements . 7+ positioning statements
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Communications Strategy . Tactical announcement plans . (Re)design of communications . (Re)design of all business
to create awareness about across different features to unit communications and
new or existing products induce loyalty or provide contact map from scratch
. Single product response lift . Multi media communications
. Single segment . 2-4 products design
. Agency in supporting role to . 2-3 segments . 5+ products
Amex . Agency and Amex work . 4+ segments
together equally . Agency performing majority
of work
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Mailing POV on Results . 1-8 test cells . 9-16 test cells . 17-25 test cells
Support Implications . Presents document describing . Presents document describing . Multi-media analysis
implication for control and implication for control and . Qualitative synthesis of
test strategy test strategy learnings from different
channels
. Intermedia optimization
analysis
. Presents document describing
implication for control and
test strategy
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Historical Mail . 1-8 test cells . 9-16 test cells . 17-25 test cells
Plan Summary . Documentation of mailing . Documentation of mailing . Documentation of mailing
campaign campaign campaign
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Direct Marketing Creative Execution Fee Ratecard -
Page 1 of 4 (version 7.3.98) Appendix 4a (continued)
-----------------------------------------------------------------------------------------------------------------------------
New Creative Modifications
--------------------------------------------------------------- -------------------------------------------
Short/ Short/ Long/ Long/ Minor Major
Simple Complex Simple Complex Variation Mod. Mod.
-----------------------------------------------------------------------------------------------------------------------------
Brochures/ . (less than) . (less than) . 750 to 2000 . 750 to 2000 . Up to 20 . Minor . Layout
Inserts/ 750 words 750 words words words words of layout redesign
Self- . No . Photoshoot . No . Photoshoot creative revision and/or
Mailers photoshoot and/or photoshoot and/or copy . 21 to 100 . 100 to 500
or illustration or illustration change/ words of words of
(Additional illustration and/or illustration and/or addtion copy creative copy
fees . 5 or less . 3 to 6 . 5 or less . 3 to 6 . Deletion change/ change and/or
warranted if art images special art images special of images addition . Addition
agency (typography requirements (typography requirements and/or . Addition and change
required to not and/or not included), and/or copy and change of 3 to 5
coordinate included), . 5 to 10 logos and . 5 to 10 OR of up to 3 images
directly with logos and art images Card art art images . Revison images
SE Partners) Card art (typography . No more than (typography after
. No more not included) 2 special not final
than 2 requirements included) mac comp
special
requirements
(glue ons,
pockets,
foldouts,
perforation,
stickers,
die-cuts,
etc.)
-----------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
-----------------------------------------------------------------------------------------------------------------------------
------------------------------------
Incremental Charges
------------------------------------
Additional Add'l
Revision Concept
------------------------------------
. Each . Additional
additional client-
Client- requested
Requested concepts
Revision beyond the 3
beyond the that are
5 that are required at
allowed initial
during the, concept
Work-In- presentation
Progress
Stage
------------------------------------
[***] [***]
------------------------------------
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Direct Marketing Creative Execution Fee Ratecard - Page 2 of 4 (version 7.3.98) Appendix 4a (continued)
------------------------------------------------------------------------------------------------------------------------------------
New Creative Modifications Additional Additional
---------------------------------------------------------------------------------------------------------
Simple Complex Variation Minor Mod. Major Mod. Revision Concept
------------------------------------------------------------------------------------------------------------------------------------
Letter Copy . All standard . New product . Up to 10 words of . Addition of 11 . Addition of 50 . Beyond 5 . Beyond 3
new letters . New audience creative copy change/ to 50 words of to 500 words that are required
. Ongoing addition creative copy of creative allowed in initial
communication . Deletion of paragraphs change copy Work-In- concepts
style OR . Reformat Progress
. All SE offers . Revision after final Stage
MAC comp
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Letterhead . Logos, Card . Photoshoot, . Personal/Gold . Reformat . Major layout . Beyond 3 . Beyond 3
art and SE stock art, variation OR . Minor layout redesign that are required
or Client and/or . Revision after redesign allowed in initial
provided illustration final MAC comp . Addition/ Work-In- concepts
artwork deletion of Progress
. Header lines copy Stage
typography
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Applications . Standard new . Artwork . Minor reformat . Addition of up . Layout redesign . Beyond 3 . Beyond 3
application design . Personal/Gold to 8 fields . Addition of that are required
. Up to 20 . 20 to 40 variation . Deletion of creative allowed in initial
fields fields . Up to 10 words fields teaser copy Work-In- concepts
. Simple logo . Stock art of new creative . Addition of Progress
or Card art and/or copy 8 to 15 fields Stage
illustration OR
. Revision after
final MAC comp
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Envelopes . Simple logo . Photoshoot, . Minor reformat . Teaser copy . Teaser copy . Beyond 3 . Beyond 3
or Card art stock art, . Personal/Gold change rewrite or that are required
and/or variation . Artwork allowed in initial
illustration . Up to 10 words redesign Work-In- concepts
of new creative Progress
copy Stage
OR
. Revision after
final MAC comp
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Coupons/ . No photoshoot, . Photoshoot, . Minor reformat . Minor layout . Layout redesign . Beyond 3 . Beyond 3
Certificates stock are, or stock art, . Personal/Gold revision . Same layout, that are required
illustration and/or variation . Minor creative different offer allowed in initial
. Simple logo illustration . Up to 10 words copy change or different SE Work-In- concepts
or Card art . Teaser copy of new creative (ll to 50 Progress
copy words) Stage
OR . Same offer,
. Revision after different
final MAC comp teaser copy
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Direct Marketing Creative Execution Fee Ratecard - Page 3 of 4 (version 7.3.98) Appendix 4a (continued)
------------------------------------------------------------------------------------------------------------------------------------
New Creative Modifications
----------------------------------------------------------------------------------- Additional Additional
Simple Complex Variation Minor Mod. Major Mod. Revision Concept
---------------------------------------------------------------------------------------------------------------------------------
Postcards . No photoshoot . Photoshoot, . Minor reformat . Minor layout . Addition and/ . Beyond 3 . Beyond 3
or illustration stock art, . Personal/Gold revision or deletion that are required
. Simple logo or and/or variation . Minor creative of major allowed in initial
Card art illustration . Up to 10 words copy change (11 components and Work-In- concepts
of new creative to 50 words) layout redesign Progress Stage
copy OR . New creative
. Revision after copy and artwork
final Mac comp on same layout
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Buckslips . Simple logo or . Photoshoot, . Minor reformat . Minor layout . Major creative . Beyond 3 . Beyond 3
Card art stock art, . Personal/Gold revision copy change that are required
. Client or SE and/or variation . Minor creative (50 to 75 allowed in initial
provided illustration . Up to 10 words copy change (11 words) Work-In- concepts
artwork of new creative to 50 words) . Layout redesign Progress Stage
. Less than 75 copy OR
words of . Revision after
creative copy final Mac comp
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Take-Ones . Short/simple . Long/complex . Addition of app . Redesign or . Layout . Beyond 3 . Beyond 3
. Up to 1,000 . 1,000 to 2,500 fields or app reformat redesign that are required
words of words of layout revision application . 150 to 600 allowed in initial
creative copy creative copy . Minor Personal/ . Minor overall words of Work-In- concepts
. Single OR Gold color, logo, layout revision creative copy Progress Stage
application . 2 to 4 complex and benefits . 31 to 150 words change
applications in copy variation of creative copy
one (e.g., . Up to 30 words of change
Card plus creative copy
Membership change
Miles) . Deletion of images
and/or copy
OR
. Revision after
final Mac Comp
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Direct Marketing Creative Execution Fee Ratecard - Page 4 of 4 (version 7.3.98) Appendix 4a (continued)
------------------------------------------------------------------------------------------------------------------------------------
New Creative Modifications
----------------------------------------------------------------------------------- Additional Additional
Standard Variation Minor Mod. Major Mod. Revision Concept
------------------------------------------------------------------------------------------------------------------------------------
Riser . All new . Personal/Gold variation . Additional of up to . Layout . Beyond 3 that . Beyond 3
components . Up to 10 words of creative 2 images redesign are allowed in required
copy change OR . 11 to 50 words of . Copy rewrite Work-In-Progress initial
. Revision after final mac creative copy change Stage concepts
comp . Minor reformat
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Wallet Card . All new . Personal/Gold variation . Additional of up to . Layout . Beyond 3 that . Beyond 3
components . Up to 10 words of creative 2 images redesign are allowed in required
copy change OR . 11 to 50 words of . Copy rewrite Work-In-Progress initial
. Revision after final mac creative copy change Stage concepts
comp . Minor reformat
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Coupon . All new . Personal/Gold variation . Additional of up to . Layout . Beyond 3 that . Beyond 3
Carrier components . Up to 10 words of creative 2 images redesign are allowed in required
copy change OR . 11 to 50 words of . Copy rewrite Work-In-Progress initial
. Revision after final mac creative copy change Stage concepts
comp . Minor reformat
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Card . All new . Personal/Gold variation . Additional of up to . Layout . Beyond 3 that . Beyond 3
Carrier components . Up to 10 words of creative 2 images redesign are allowed in required
copy change OR . 11 to 50 words of . Copy rewrite Work-In-Progress initial
. Revision after final mac creative copy change Stage concepts
comp . Minor reformat
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Standing . All new . Personal/Gold variation . Additional of up to . Layout . Beyond 3 that . Beyond 3
Display components . Up to 10 words of creative 2 images redesign are allowed in required
copy change OR . 11 to 50 words of . Copy rewrite Work-In-Progress initial
. Revision after final mac creative copy change Stage concepts
comp . Minor reformat
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Fees for Canceled Projects-applies to all . If canceled before Work-In- . If canceled during Work-In- . If canceled at Final Mac
DM Creative Execution Ratecard categories Progress stage, AmEx pays Progress stage, AmEx pays Comp stage, AmEx pays
[***] of Ratecard cost [***] of Ratecard cost [***] of Ratecard cost
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Post-Concept Development Fees-applies to . AmEx pays [***] of Ratecard cost for client-requested Post-Concept Development
all DM Creative Execution Ratecard
Categories
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Advertising Agency Fee Ratecard - Domestic USA Only Appendix 4b
Projects - Standard Pricing
$
This is intentionally left blank and is not applicable to
Xxxxxxx Xxxxxxxx Xxxxxxxx
Appendix 4bi
American Express Advertising Ratecard TV Edit Definitions
This ratecard is intentionally left blank and is not applicable to Xxxxxxx
Xxxxxxxx Xxxxxxx
Appendix 4c
Agency Fee Ratecard - Domestic USA Only
Media Planning/Stewardship & Buying
(This ratecard is intentionally blank and is not applicable for Xxxxxxx
Xxxxxxxx Xxxxxxxx)
Pre-Press (Engraving) Ratecard - Domestic USA Only
Appendix 5a
------------------------------------------------------------------------------------------------------------------------------------
American Express Four Color Pring Advertising Specifications and Price List
------------------------------------------------------------------------------------------------------------------------------------
Format #1 Format #2 Format #3 Format #4 Format #5 Format #6
--------------------------------------------------------------------------------------
Up to (5-1/2x8-1/2) (7x10) (8-1/2x11) (10x14) (11x17) (17x22)
------------------------------------------------------------------------------------------------------------------------------------
[***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
(3) Press proofs/6 progs/2 stop sheets [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
(3) Matchprint/Cromalin proofs [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
(3) Digital proofs (Amex approved) [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
(3) Matchprints, (1) Press proof/progs/25 shs [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Four Color Additional Details
------------------------------------------------------------------------------------------------------------------------------------
Format #1 Format #2 Format #3 Format #4 Format #5 Format #6
--------------------------------------------------------------------------------------
Up to (5-1/2x8-1/2) (7x10) (8-1/2x11) (10x14) (11x17) (17x22)
------------------------------------------------------------------------------------------------------------------------------------
Add'l film - same size/proportional resize [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l film - recrop [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l film - resize/not proportional [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l black type rider/5th rider [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l knockout type change/A.A. [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l Matchprint/Cromalin each [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l press proof/prog (while on press) [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l press proof/prog (back to press) [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l 100 top sheets (while on press) [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l 100 top sheets (back on press) [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l digital proof (Amex approved) [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Press proof/6 progs/25 top sheets [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
American Express Black and White Print Advertising Specifications and Price List
------------------------------------------------------------------------------------------------------------------------------------
Format #7 Format #8 Format #9 Format #10 Format #11 Format #12
--------------------------------------------------------------------------------------
Up to (7x10) (8-1/2x11) (11x17) (13x21) (11x27) (22x30)
------------------------------------------------------------------------------------------------------------------------------------
Base Price* (Halftone) [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Two veloxes [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Base Price* (Line shot) [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Two veloxes [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Additionals
------------------------------------------------------------------------------------------------------------------------------------
Add'l film - same size/proportional resize [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l film - resize/not proportional [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l film - recrop [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l velox proof [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
B/W conversion of four color [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Pre-Press (Engraving) Ratecard - Domestic USA Only Appendix 5a. (cont'd.)
------------------------------------------------------------------------------------------------------------------------------------
American Express Additional Line Item Pricing For All Formats
------------------------------------------------------------------------------------------------------------------------------------
All formats
------------------------------------------------------------------------------------------------------------------------------------
Add'l min. sep. (2x3 or less) [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l sep. ((up to 4x5) [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l sep. (up to 7x9) [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l sep. (up to 9x12) [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l sep. (up to 11x17) [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l 2/c tint each [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l 3/c tint each [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l 4/c tint each [***]
------------------------------------------------------------------------------------------------------------------------------------
Simple silo [***]
------------------------------------------------------------------------------------------------------------------------------------
Complex silo [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l blueprint proof [***]
------------------------------------------------------------------------------------------------------------------------------------
Ghosting (simple square) [***]
------------------------------------------------------------------------------------------------------------------------------------
Paintbox retouching hourly rate [***]
------------------------------------------------------------------------------------------------------------------------------------
Scitex retouching hourly rate [***]
------------------------------------------------------------------------------------------------------------------------------------
Mac retouching hourly rate [***]
------------------------------------------------------------------------------------------------------------------------------------
Mac hourly rate (non-retouching) [***]
------------------------------------------------------------------------------------------------------------------------------------
Color match swatch each [***]
------------------------------------------------------------------------------------------------------------------------------------
Overtime daily rate (non-standard sched.) [***]
------------------------------------------------------------------------------------------------------------------------------------
Overtime weekend daily rate (pre-press) [***]
------------------------------------------------------------------------------------------------------------------------------------
Overtime weekend daily rate (press) [***]
------------------------------------------------------------------------------------------------------------------------------------
Black drop shadow each [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l halftone inset [***]
------------------------------------------------------------------------------------------------------------------------------------
Add'l line shot [***]
------------------------------------------------------------------------------------------------------------------------------------
Base Price and Other Assumptions:
The 4/c base price includes one full size bleed separation, black and k/o type,
with proofing to satisfaction, three reviews on average, total review comprised
of two color proofs with a final confirming proof, to publication
specifications, and final film and blueprint to accompany final film. Six
additional final progs to be held for future placements. All additional
separations detail, silos, shadows, tints, etc., include film composition and
any trapping required.
The black and white base price includes one full size bleed halftone with two
(2) velox proofs, black and k/o type.
American Express and its Advertising Agencies will provide Desktop Publishing
files only.
All Desktop files must undergo Pre-Flight prior to RIP to minimize costs.
American Express will not pay for RIP charges.
American Express suppliers must follow the CREF, DDES and DDAP digital
standards.
American Express will pay only for approved estimates - dollars spent without
American Express approval will not be paid.
A standard schedule is defined as 7 days to first proof, 2 to second and 2 to
final confirming proof. Deviations from the standard schedule may increase
costs.
Note: All black type should be on separate rider during proofing for type
changes.
Note: All digital material must be archived for future use/resizing and cannot
be destroyed without American Express permission.
Note: A change in direction from art turn-over will be considered a chargeable
alteration- all charges must be pre-approved.
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Stock & Commissioned Photography Ratecards - Domestic USA Only Appendix 5b
Commission Photography*
--------------------------------------------------------------------------------
Direct Mail
--------------------------------------------------------------------------------
Simple Medium Complex
Studio --------------------------------------------------------
(Price per Still Life Model in Studio
Photo) --------------------------------------------------------
Amex Card/ With With Props With No Set With Set
Statement Props and Styling
--------------------------------------------------------
[***] [***] [***] [***] [***]
--------------------------------------------------------------------------------
Scenery with Simple Difficult
Location No Model Location With Location With
(Price per Model Model
Photo) --------------------------------------------------------
[***] [***] [***]
--------------------------------------------------------------------------------
6-10 11-20 Greater Than 20
Journalistic Photos Photos Photos
(Price Per
Project) --------------------------------------------------------
[***] [***] [***]
--------------------------------------------------------------------------------
-------------------------------------- --------------------------------------
Multiple Usage % Premium Number of Jobs % Discount
-------------------------------------- --------------------------------------
Buyout-Publication only [***] 2-3 [***]
Buyout-DM & Publications [***] 4-6 [***]
Total Buyout [***] 7-10 [***]
-------------------------------------- --------------------------------------
Stock Photography**
--------------------------------------------------------------------------------
Direct Mail - Brochures, Catalogs and Postcards
--------------------------------------------------------------------------------
Quantity in 1/4 pg or Spot 1/2 pg Full pg
Thousands Photo (Less than 1/4)
--------------------------------------------------------------------------------
10,000+ [***] [***] [***]
3,000 - 10,000 [***] [***] [***]
1,000 - 3,000 [***] [***] [***]
500 - 1,000 [***] [***] [***]
250 - 500 [***] [***] [***]
100 - 250 [***] [***] [***]
50 - 100 [***] [***] [***]
Less Than 50 [***] [***] [***]
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Print Advertising
--------------------------------------------------------------------------------
Circulations in Part of Less than Full pg
Thousands Montage Full pg
--------------------------------------------------------------------------------
10,000+ [***] [***] [***]
3,000 - 10,000 [***] [***] [***]
1,000 - 3,000 [***] [***] [***]
500 - 1,000 [***] [***] [***]
250 - 500 [***] [***] [***]
Less Than 250 [***] [***] [***]
--------------------------------------------------------------------------------
-------------------------------------- --------------------------------------
Premium Positions % Premium Usage % Premium
-------------------------------------- --------------------------------------
Front Cover [***] Total Buyout [***]
Back Cover [***] Exclusivity [***]
Double Page-Spread [***] Unlimited for 1 year [***]
Wrap Around Cover [***] Unlimited for 2 years [***]
-------------------------------------- 2-3 Insertions [***]
4-8 Insertions [***]
-------------------------------------- 9-15 Insertions [***]
No. of Images/Insertions % Discount --------------------------------------
--------------------------------------
2-3 [***]
4-8 [***]
9-15 [***]
--------------------------------------
* Fee based on unlimited time, DM, includes prep days; does not include travel
days & operating expenses (e.g., film, equipment rental, etc.)
** Fee based on basic one-time, non-exclusive, one image, per Insertion
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Pre-Production (Mechanical) Ratecard - Domestic USA Only Xxxxxxxx 0x
A Pre-Production Ratecard was developed to provide American Express and its
agencies with a clear understanding of Pre-Production pricing criteria and
prices. The Ratecard indicates the maximum Pre-Production prices (excluding
artwork) for a single page of work (a project may be comprised of many pages).
Total Cost Per Page
A B C D E F G H
------------------------------------------------------------------------------------------------------------------------------------
Page Category Type Simple Complex Simple Simple Complex Complex None None
------------------------------------------------------------------------------------------------------------------------------------
Page Content* Graphics None None Simple Complex Simple Complex Simple Complex
------------------------------------------------------------------------------------------------------------------------------------
Page Cost* Desktop* [***] [***] [***] [***] [***] [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Up to 10 1 2 2 3 3 4 1 2
Turn-Around pages
Time (Days)
-------------------------------------------------------------------------------------------------------------------
More than 2 3 3 4 4 5 2 3
10 pages
------------------------------------------------------------------------------------------------------------------------------------
FPO/Scans [***] each
-------------------------------
Overtime [***]
-------------------------------
* Only Desktop Mechanical will be accepted by American Express
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Pre-Production (Mechanical) Ratecard - Domestic USA Only Xxxxxxxx 0x
(xxxxxxxxx)
The ratecard has clear assumption built in to define simple and complex type, as
well as simple and complex graphics.
- Pages are defined as follows:
Envelope: 1 page
Sleeves: 1 page
Complete Standalone Text: 1 page
Ratecard prices per page assume the following:
1) No existing prototype
2) Final tight comp required and included in price.
3) No tissue/roughs.
4) Desktop type/mechanical provided.
5) Agency internal revisions (e.g., proofreading) included.
6) Non-client specified retouching included.
7) Overtime requires AmEx authorization.
8) Correction assumes new file, not type patch.
9) AmEx logos are considered stat/FPO's.
10) All revisions to the prototype should be considered "simple".
Pre-Production Ratecard Assumptions
----------------------------------------------------------- ------------------------------------------------------
Simple Complex Simple Complex
----------------------------------------------------------- ------------------------------------------------------
Up to 3 typefaces More than 3 typefaces Single Graphic element Complex graphic
element
Less than 500 words More than 500 words Rules Multiple Graphic
element
Basic Headlines (no Headlines with visible Charts Multiple photos and
kerning) kerning illustrations
indicated as
Ragging Applications FPO's
Boxes Non-AmEx Logos
American Express Interactive Media Fee Ratecard Page 1/5 (rev. 6/11/98.b) Appendix 6a
------------------------------------------------------------------------------------------------------------------------------------
CPM Banner Programs Ratecard Simple Moderate Complex
------------------------------------------------------------------------------------------------------------------------------------
TOTAL: [***] [***] [***]
Definition: . 1 Month Duration . 2 Months Duration . 3 Months Timing
. Programs based on a negotiated cost per . 1 Target Audience . 1 Target Audience . 2 Target Audiences
thousand . 2 Banner Placements . 4 Banner Placements . 6 Banner Placements
------------------------------------------------------------------------------------------------------------------------------------
Deliverable:
------------------------------------------------------------------------------------------------------------------------------------
Media Strategy- . 2 Site Categories . 4 Site Categories . 6 Site Categories
. Pre-planning (media brief, strategy development) . 15 Considered Sites . 30 Considered Sites . 60 Considered Sites
. Development of Consideration List . TIMEFRAME: 5 Days . TIMEFRAME: 5 Days . TIMEFRAME: 5 Days
. Development of RFP Agency + 1 Day Client Agency + 1 Day Client Agency + 2 Days
. Go/No Go Recommendation for proceeding to Go/No Go Decision Go/No Go Decision Client Go/No Go
next phase Decision
------------------------------------------------------------------------------------------------------------------------------------
Media Strategy Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Media Plan-Part I
. Send out RFP's . 5 Recommended Sites . 15 Recommended Sites . 30 Recommended Sites
. Follow-up RFP's . TIMEFRAME: Part I-6 . TIMEFRAME: Part I-7 . TIMEFRAME: Part I-7.5
. Input data in scoring model Days Agency + 2 Days Days Agency + 3 Days Days Agency + 3 Days
. Develop forecast detail Client Go/No Go Decision; Client Go/No Go Decision; Client Go/No Go
. Scoring/Evaluation of sites Part II-6 Days Part II-7 Days Decision; Part II -
. Go/No Go Recommendation for proceeding . [***] of [***] fee . [***] of [***] fee 7.5 Days
to next part of phase incurred after Part I incurred after Part I . [***] of [***] fee
[***] of Media Plan Phase fee incurred if canceled of Media Plan Phase. of Media Plan Phase. incurred after Part I
at this point. of Media Plan Phase.
Media Plan-Part II
. Negotiation
. Plan Development
. Present Recommendation/Revisions
------------------------------------------------------------------------------------------------------------------------------------
Media Plan Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Implementation- . 5 sites . 15 Sites . 30 Sites
. Insertion Orders/PO's . TIMEFRAME: 6 Days in- . TIMEFRAME: 8 Days in- . TIMEFRAME: 9 Days
. Generation of banner instructions and adcodes market (Assumes standard market (Assumes standard in-market (Assumes
. Traffic banners graphics-only banners; 11 graphics-only banners; 13 standard graphics-
. Quality Control of banner placement days for complex banners days for complex banners only banners; 14 days
. Billing, Invoicing, & Make-Good Negotiations (i.e. Java, Shockwave) (i.e. Java, Shockwave) for complex banners
(i.e. Java, Shockwave)
------------------------------------------------------------------------------------------------------------------------------------
Implementation Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Total before Tracking and other items [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Tracking (via MatchLogic*), Analysis & . 1 Report . 2 Reports . 3 Reports
Recommendations**
------------------------------------------------------------------------------------------------------------------------------------
Tracking Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Creative Refresh (banner rotation) . 1 Creative Refresh . 2 Creative Refreshes
------------------------------------------------------------------------------------------------------------------------------------
Creative Refresh Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Media Buy Optimization (revise plan/re-negotiate) . 1 Optimization & 10
Sites Adjusted
------------------------------------------------------------------------------------------------------------------------------------
Media Buy Optimization Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
-------------------------
* NOTE: MatchLogic is billed as a pass-through expense based on [***] per
purchased impression
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
American Express Interactive Media Fee Ratecard Page 4/5 (rev. 6/11/98.b) Appendix 6a (continued)
------------------------------------------------------------------------------------------------------------------------------------
Bounty Banner Programs Ratecard Simple Moderate Complex
------------------------------------------------------------------------------------------------------------------------------------
TOTAL: [***] [***] [***]
Definition: . 1 Month Duration . 2 Months Duration . 3 Months Timing
. Programs where each site is compensated . 1 Target Audience . 1 Target Audience . 2 Target Audiences
based on a per click/application/card. . 2 Banner Placements . 4 Banner Placements . 6 Banner Placement
. CPM/Bounty hybrid programs
------------------------------------------------------------------------------------------------------------------------------------
Deliverable:
------------------------------------------------------------------------------------------------------------------------------------
Media Strategy- . 2 Site Categories . 4 Site Categories . 6 Site Categories
. Pre-planning (media brief, strategy development) . 15 Considered Sites . 30 Considered Sites . 60 Considered Sites
. Development of Consideration List . TIMEFRAME: 5 Days . TIMEFRAME: 5 Days . TIMEFRAME: 5 Days
. Development of RFP Agency + 1 Day Client Agency + 1 Day Client Agency + 2 Days
. Go/No Go Recommendation for proceeding to Go/No Go Decision Go/No Go Decision Client Go/No Go
next phase Decision
------------------------------------------------------------------------------------------------------------------------------------
Media Strategy Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Media Plan-Part I
. Send out RFP's . 5 Recommended Sites . 15 Recommended Sites . 30 Recommended Sites
. Follow-up RFP's** . TIMEFRAME: Part I-7.5 . TIMEFRAME: Part I-9 . TIMEFRAME: Part I-10
. Input data in scoring model Days Agency + 2 Days Days Agency + 3 Days Days Agency + 3 Days
. Develop forecast detail Client Go/No Go Decision; Client Go/No Go Decision; Client Go/No Go
. Scoring/Evaluation of sites Part II-7.5 Days Part II-9 Days Decision; Part II-10
. Go/No Go Recommendation for proceeding . [***] of [***] fee . [***] of [***] fee Days
----- ----- ----- -----
to next part of phase incurred after Part I incurred after Part I . [***] of [***] fee
----- -----
[***] of Media Plan Phase fee incurred if canceled of Media Plan Phase. of Media Plan Phase. incurred after Part I
-----
at this point. Media Plan Phase.
Media Plan-Part II
. Negotiation
. Plan Development
. Present Recommendation/Revisions
------------------------------------------------------------------------------------------------------------------------------------
Media Plan Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Implementation- . 5 sites . 15 Sites . 30 Sites
. Insertion Orders/PO's . TIMEFRAME: 6 Days in- . TIMEFRAME: 8 Days in- . TIMEFRAME: 9 Days in-
. Generation of banner instructions and adcodes market (Assumes standard market (Assumes standard market (Assumes
. Traffic banners graphics-only banners; 11 graphics-only banners; 13 standard graphics-
. Quality Control of banner placement days for complex banners days for complex banners only banners; 14 days
. Billing, Invoicing, & Make-Good Negotiations (i.e. Java, Shockwave) (i.e. Java, Shockwave) for complex banners
(i.e. Java, Shockwave)
------------------------------------------------------------------------------------------------------------------------------------
Implementation Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Total before Tracking and other items [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Tracking (via MatchLogic*), Analysis & . 1 Report . 2 Reports . 3 Reports
Recommendations**
------------------------------------------------------------------------------------------------------------------------------------
Tracking Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Creative Refresh (banner rotation) . 1 Creative Refresh . 2 Creative Refreshes
------------------------------------------------------------------------------------------------------------------------------------
Creative Refresh Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Media Buy Optimization (revise plan/re-negotiate) . 1 Optimization & 10
Sites Adjusted
------------------------------------------------------------------------------------------------------------------------------------
Media Buy Optimization Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
-------------------------
* NOTE: MatchLogic is billed as a pass-through expense based on [***] per
purchased impression
** Items requiring incremental fee versus CPM only programs
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
American Express Interactive Media Fee Ratecard Page 5/5 (rev. 6/11/98.b) Appendix 6a (continued)
------------------------------------------------------------------------------------------------------------------------------------
Multiple Site Sponsorships Programs Ratecard Simple Moderate Complex
------------------------------------------------------------------------------------------------------------------------------------
TOTAL: [***] [***] [***]
Definition: . 1 Month Duration . 2 Months Duration . 3 Months Timing
. Programs which include advertising in . 1 Target Audience . 1 Target Audience . 2 Target Audiences
addition to or instead of simple banners . 2 Banner Placements . 4 Banner Placements . 6 Banner Placements
(i.e. branded content) across multiple sites.
------------------------------------------------------------------------------------------------------------------------------------
Deliverable:
------------------------------------------------------------------------------------------------------------------------------------
Media Strategy- . 2 Site Categories . 4 Site Categories . 6 Site Categories
. Pre-planning (media brief, strategy development) . 15 Considered Sites . 30 Considered Sites . 60 Considered Sites
. Development of Consideration List** . TIMEFRAME: 5 Days . TIMEFRAME: 5 Days . TIMEFRAME: 5 Days
. Development of RFP Agency + 1 Day Client Agency + 1 Day Client Agency + 2 Days
. Go/No Go Recommendation for proceeding to Go/No Go Decision Go/No Go Decision Client Go/No Go
next phase Decision
------------------------------------------------------------------------------------------------------------------------------------
Media Strategy Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Media Plan-Part I
. Send out RFP's . 5 Recommended Sites . 15 Recommended Sites . 30 Recommended Sites
. Follow-up RFP's . TIMEFRAME: Part I-7.5 . TIMEFRAME: Part I-9 . TIMEFRAME: Part I-10
. Input data in scoring model** Days Agency + 2 Days Days Agency + 3 Days Days Agency + 3 Days
. Develop forecast detail Client Go/No Go Decision; Client Go/No Go Decision; Client Go/No Go
. Scoring/Evaluation of sites** Part II-7.5 Days Part II-9 Days Decision; Part II-
. Go/No Go Recommendation for proceeding . [***] of [***] fee . [***] of [***] fee 10 Days
to next part of phase incurred after Part I incurred after Part I . [***] of [***] fee
[***] of Media Plan Phase fee incurred if canceled of Media Plan Phase. of Media Plan Phase. incurred after Part I
at this point. of Media Plan Phase.
Media Plan-Part II
. Negotiation**
. Plan Development
. Present Recommendation/Revisions
------------------------------------------------------------------------------------------------------------------------------------
Media Plan Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Implementation- . 5 sites . 15 Sites . 30 Sites
. Insertion Orders/PO's . TIMEFRAME: 8 Days in- . TIMEFRAME: 10 Days in- . TIMEFRAME: 12 Days
. Generation of banner instructions and adcodes market (Assumes standard market (Assumes standard in-market (Assumes
. Traffic banners and coordinate non-banner graphics-only banners; 13 graphics-only banners; 15 standard graphics-
items** days for complex banners days for complex banners only banners; 17 days
. Quality Control of banner and non-banner items** (i.e. Java, Shockwave) (i.e. Java, Shockwave) for complex banners
. Billing, Invoicing, & Make-Good Negotiations (i.e. Java, Shockwave)
------------------------------------------------------------------------------------------------------------------------------------
Implementation Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Total before Tracking and other items [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Tracking (via MatchLogic*), Analysis & . 1 Report . 2 Reports . 3 Reports
Recommendations**
------------------------------------------------------------------------------------------------------------------------------------
Tracking Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Creative Refresh (banner rotation) . 1 Creative Refresh . 2 Creative Refreshes
------------------------------------------------------------------------------------------------------------------------------------
Creative Refresh Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Media Buy Optimization (revise plan/re-negotiate) . 1 Optimization & 10
Sites Adjusted
------------------------------------------------------------------------------------------------------------------------------------
Media Buy Optimization Total: [***] [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
-------------------------
* NOTE: MatchLogic is billed as a pass-through expense based on [***] per
purchased impression
** Items requiring incremental fee versus CPM only programs
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
American Express Interactive Media Fee Ratecard Page 4/5 (rev. 6/11/98.b) Appendix 6a (continued)
------------------------------------------------------------------------------------------------------------------------------------
Single Site/Ad Hoc Sponsorship Ratecard Simple Complex
------------------------------------------------------------------------------------------------------------------------------------
TOTAL: [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Definition:
. Extensive POV (beyond first glance/simple POV), negotiation and
execution for a single sponsorship
------------------------------------------------------------------------------------------------------------------------------------
Deliverable:
------------------------------------------------------------------------------------------------------------------------------------
POV (beyond first glance/simple POV)-
. Briefing (determine client's level of interest, objectives, parameters)
. Clarification of details with Vendor
. Development of initial POV
. Go/No Go Recommendation for proceeding to next phase
------------------------------------------------------------------------------------------------------------------------------------
POV Total: [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
Implementation-
. Negotiation
. Determine logistics between vendor, client and SIG
. Coordinate creative, legal approval, timing
. Insertion orders / Pos
. Trafficking of materials
. Monthly
------------------------------------------------------------------------------------------------------------------------------------
Implementation Total: [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Total before Tracking and other items [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Tracking (via MatchLogic*), Analysis & Recommendations [***] [***]
------------------------------------------------------------------------------------------------------------------------------------
-------------------
* NOTE: MatchLogic is billed as a pass-through expense based on [***] per
purchased impression
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
American Express Interactive Media Fee Ratecard Page 5/5 (rev. 6/11/98.b) Appendix 6a (continued)
-----------------------------------------------------------------------------------------------------------------------------------
AOR Work Definition
-----------------------------------------------------------------------------------------------------------------------------------
Definition:
. Project work that crosses all business units [***]/month
-----------------------------------------------------------------------------------------------------------------------------------
Deliverables:
-----------------------------------------------------------------------------------------------------------------------------------
I. Media Vendor Site Management
. Manage site representatives . Includes fielding calls, attending meetings and reviewing proposals
. Evaluate unsolicited media vendor proposals . Includes delivery of weekly summary of Ad hoc sponsorships
. Contact appropriate AmEx client on appropriate received by agency
proposals
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
II. Rate Negotiation
. Recommend media efficiencies . Negotiate with sites under the AmEx umbrella to maximize efficiencies
. Interface with media vendors . Provide AmEx rates to media vendors
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
III. Rate Development
. Develop AmEx rate schedule . Negotiate with sites under the AmEx umbrella to maximize efficiencies
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
IV. AOL & Cross-Media (i.e. Entrepreneur Magazine, bonus . Negotiation of 1999 AOL contract
web banners) . Implementation of AOL and cross-media programs
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
V. Client Requests/Summations-
. Weekly client and agency status meetings
. Fielding of client questions/requests/calls . Any requests that fall outside of the planning cycle (not included
. Summation of all AmEx expenditures on a monthly basis on rate card)
. Quarterly summation of all AmEx activities with a . Report that details monthly Web expenditures for all AmEx activity
results analysis by business unit
-----------------------------------------------------------------------------------------------------------------------------------
CONFIDENTIAL INFORMATION HAS BEEN OMITTED PURSUANT TO RULE 406 UNDER THE
SECURITIES ACT AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE
COMMISSION. THE LOCATIONS OF THE OMITTED INFORMATION HAVE BEEN INDICATED WITH
ASTERISKS.
Appendix 7
------------------------------------------------------------------------------------------------------------------------------------
DIRECT AGENCY EVALUATION
------------------------------------------------------------------------------------------------------------------------------------
Leadership Survey:
_________________
------------------------------------------------------------------------------------------------------------------------------------
Distinguished Achieved Expectations More Is Expected
------------------------------------------------------------------------------------------------------------------------------------
1 2 3 4 5
-----------------------------------------------------------------------------------------------------------------------------------
V. Overall Satisfaction . Relationship Leadership, Work . Relationship Leadership, Work . Relationship Leadership,
Products, Thought Leadership and Products, Thought Leadership Work Products, Thought
Results Leadership exceeded and Results Leadership Leadership and Results
expectations. achieved expectations. Leadership did not meet
expectations.
-----------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Appendix 7
------------------------------------------------------------------------------------------------------------------------------------
DIRECT AGENCY EVALUATION
------------------------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------------------
Category Weighting Evaluation Criteria
-----------------------------------------------------------------------------------------------------------------------------------
Customers 25% . Metrics equal to those of the AmEx business units that are serviced by
the agency.
. Ultimate rating for the agency is the weighted average of the Customer
ratings for the different business units based on agency xxxxxxxx.
-----------------------------------------------------------------------------------------------------------------------------------
Shareholders 50% . 50% weight is on the metrics of the AmEx business units serviced by the
agency.
. 30% weight on Agency's creative thinking/ideas leading to improved
results.
. 20% weight on the client's evaluation of the agency's cost management,
billing and reporting (each business unit rates agency 1 to 5).
. Ultimate rating for the agency is the weighted average of the Shareholder
ratings and the client evaluation ratings on cost management, billing and
reporting for the different business units based on net income.
-----------------------------------------------------------------------------------------------------------------------------------
Leadership 25% . Twice per year (April and November) conduct a survey of all key clients
(all American Express personnel who work with the agency - weighted 50%
VPs + above respondents and 50% below VP respondents). Dimensions
(and weightings) include Thought Leadership (40%), Result Leadership
(25%), Change Leadership (25%) and Relationship Leadership (10%). See
attached survey.
-----------------------------------------------------------------------------------------------------------------------------------
Appendix 7
------------------------------------------------------------------------------------------------------------------------------------
DIRECT AGENCY EVALUATION
-----------------------------------------------------------------------------------------------------------------------------------
Leadership Survey:
_________________
-----------------------------------------------------------------------------------------------------------------------------------
Distinguished Achieved Expectations More Is Expected
-----------------------------------------------------------------------------------------------------------------------------------
1 2 3 4 5
-----------------------------------------------------------------------------------------------------------------------------------
I. Thought Leadership (40%)
-----------------------------------------------------------------------------------------------------------------------------------
. Creativity/Leadership . Generates and tests break- . Consistently questions and . Rarely challenges the
through ideas with customers. challenges the adequacy and adequacy and quality of
. Seizes opportunities to provide quality of traditional thinking. traditional thinking.
value-added services. . Devises workable solutions to . Applies the same standard
. Develops leading-edge relevant non-routine problems. solutions to problems much
creative or programs that set . Makes practical and creative of the time.
a new industry standard and suggestions for enhancing work . Is hesitant to implement a
leads to above average response. processes. nontraditional solution.
. Devises original, motivating . Routinely includes customer . Sometimes opts for "quick
and successful solutions. perspectives in group fixes" to customer
. Eliminates non-value added activities, projects and meetings. problems rather than
processes and tasks. providing long-term
. Develops creative/programs solutions.
for new services/products
drawing from relevant
experience but pushing
beyond comfort zone.
------------------------------------------------------------------------------------------------------------------------------------
. Strategic Thinking . Is aware of how industry . Maintains a long-term, . Tends to demonstrate a
directions might impact big-picture view. short vs. long-term view.
American Express. . Adapts past solutions to fit . At times is unclear how
. Sees connections, trends current circumstances, maximizing business strategies
and patterns that are not efficiency and avoiding re-work. translate into individual
obvious to others. . Considers whether short-term goals.
. Synthesizes information goals will meet long-term . Considers a broad range of
from widely different sources. objectives. issues but does not
. Successfully integrates consistently distinguish
knowledge of American Express critical from less
businesses and programs within important ones.
and across business units.
. Understanding mission/objectives
of Amex partner and adapting style/
thinking to that group.
. Understanding other Blue Box
initiatives and goals.
. Understanding other relevant
businesses beyond credit cards.
. Contributes new product and service
ideas.
. Leverages multiple channel
experiences to build a comprehensive
strategy linking the message across
channels.
------------------------------------------------------------------------------------------------------------------------------------
Appendix 7
------------------------------------------------------------------------------------------------------------------------------------
DIRECT AGENCY EVALUATION
-----------------------------------------------------------------------------------------------------------------------------------
Leadership Survey:
_________________
-----------------------------------------------------------------------------------------------------------------------------------
Distinguished Achieved Expectations More Is Expected
-----------------------------------------------------------------------------------------------------------------------------------
1 2 3 4 5
-----------------------------------------------------------------------------------------------------------------------------------
II. Results Leadership (25%)
-----------------------------------------------------------------------------------------------------------------------------------
. Driving Results/Timeliness . Consistently drives projects to . Completes projects on time and . Meets some but not all
successful completion within within budget. deadlines.
deadlines and under budget by . Operates with a sense of . Does not usually convey
following a rigorous project urgency. clear expectations.
plan. . Commits to and acts within . Tends to focus on
. Demonstrates strong commitment deadlines. process vs. results.
and drive to achieve results. . Conveys clear expectations and . Hesitates to see advice
. Is consistently results-driven accountability. of others to facilitate
relative to the competition. . Effectively uses technology to speedy achievement of
. Goes beyond role requirements to drive execution. results.
attain objectives. . Persists in working to meet
. Looks to improve cycle time. objectives despite obstacles
and opposition.
. Establishes milestones and
checkpoints for driving
projects to successful
completion.
. Understands and uses speed as
competitive advantage.
-----------------------------------------------------------------------------------------------------------------------------------
. Responsiveness and . Anticipates customers' future . Proactively asks for customers' . Delays in following up
Commitment requirements. opinions and feedback. with customers.
. Consistently uses multiple . Makes realistic, short-and . Occasionally falls short
sources of information to long-term commitments to on commitments to
identify customer requirements. customers. customers.
. Consistently analyzes situations . Follows up to ensure customer . Makes decisions without
from the customers' perspective. satisfaction. consistently assessing
. Handles customer questions and customer needs.
concerns in a timely manner.
-----------------------------------------------------------------------------------------------------------------------------------
Appendix 7
------------------------------------------------------------------------------------------------------------------------------------
DIRECT AGENCY EVALUATION
-----------------------------------------------------------------------------------------------------------------------------------
Leadership Survey:
_________________
-----------------------------------------------------------------------------------------------------------------------------------
Distinguished Achieved Expectations More Is Expected
-----------------------------------------------------------------------------------------------------------------------------------
1 2 3 4 5
-----------------------------------------------------------------------------------------------------------------------------------
II. Results Leadership (25%)
(con`t)
-----------------------------------------------------------------------------------------------------------------------------------
. Timeliness . Consistently drives projects to . Completes projects on time and . Meets some but not
successful completion within within budget. all deadlines.
deadlines and under budget by . Operates with a sense of . Does not usually convey
following a rigorous project urgency. clear expectations.
plan. . Commits to and acts within . Tends to focus on
. Demonstrates strong commitment deadlines. process vs. results.
and drive to achieve results. . Effectively uses technology
to drive execution.
. Understands and uses speed as
competitive advantage.
-----------------------------------------------------------------------------------------------------------------------------------
. Quality of Work . Eliminates non-value added . Establishes milestones and . Inconsistent in applying
process and tasks. checkpoints for driving projects lessons learned from
. Uses statistical and to successful completion. past successes and
quantitative information . Develops ways to continuously failures.
to manage quality. improve the organization. . Neglects to set up
. Sets high standards for . Analyzes, prioritizes, and milestones or feedback
how work gets done. implements improvement systems to evaluate
. Balances best-in-class opportunities. processes.
economics with world class . Establishes milestones . Tends to be accepting
service. and checkpoints for of the status quo.
. Goes beyond role requirements monitoring improvements. . Seldom looks for ways to
to attain objectives. . Applies lessons learned improve processes,
. Uses benchmarking and feedback from past successes and products, or services.
systems to improve processes. failures.
. Consistently benchmarks creative . Persists in working
process against brand principles, to meet objectives
creative brief and strategic despite obstacles and
objectives. opposition.
-----------------------------------------------------------------------------------------------------------------------------------
Appendix 7
------------------------------------------------------------------------------------------------------------------------------------
DIRECT AGENCY EVALUATION
-----------------------------------------------------------------------------------------------------------------------------------
Leadership Survey:
_________________
-----------------------------------------------------------------------------------------------------------------------------------
Distinguished Achieved Expectations More Is Expected
-----------------------------------------------------------------------------------------------------------------------------------
1 2 3 4 5
-----------------------------------------------------------------------------------------------------------------------------------
II. Results Leadership (25%)
(con't)
-----------------------------------------------------------------------------------------------------------------------------------
. Cost . Produces Quality work within . Produces work at budget. . Does not meet budget
budget. . Uses ratecard process to manage . Does not effectively use
. Uses ratecard process to at budget. and monitor ratecards.
optimize cost and quality
of creative.
-----------------------------------------------------------------------------------------------------------------------------------
III. Change Leadership (25%)
-----------------------------------------------------------------------------------------------------------------------------------
. Managing Change . Communicates a clear picture . Develops support mechanisms to . Shows a pattern of
of what change is needed and facilitate transitions to new resisting change.
why. ideas and changes. . Is unclear in
. Expresses confidence in the . Translates broad strategies translating broad
organization's ability to for change into specific goals, strategies into specific
manage change. objectives and responsibilities. goals, objectives, and
. Champions new initiatives . Strives to understand the reasons responsibilities.
and/or acts as a catalyst for change before taking a . Is overly cautious in
for change. position. ambiguous situations.
. Gains the support and . Encourages others to play an
commitment of others. active role in the change effort
. Effectively enlists others to to diffuse fears.
serve as champions and
advocates of change.
. Manages staffing changes
within the agency (as their
teams turnover) as seamlessly
as possible for the client.
. Proactively recommends staffing
changes as business changes.
. Helps drive change throughout
the organization.
-----------------------------------------------------------------------------------------------------------------------------------
. Demonstrating Adaptability . Quickly adapts thoughts and . Quickly refocuses priorities . Demonstrates difficulty
actions in response to and adapts plans in response to in managing multiple
problems and opportunities. change. priorities.
. Readily adjusts style to . Demonstrates resiliency. . Is not always open to
perform effectively in . Demonstrates grace under new ideas and
different situations. pressure. perspectives.
. Adapts quickly and easily to . Approaches problems as . Loses composure in high-
highly ambiguous and complex opportunities for improvement. pressure situations.
situations. . Recovers slowly from
setbacks.
-----------------------------------------------------------------------------------------------------------------------------------
Appendix 7
------------------------------------------------------------------------------------------------------------------------------------
DIRECT AGENCY EVALUATION
-----------------------------------------------------------------------------------------------------------------------------------
Leadership Survey:
_________________
-----------------------------------------------------------------------------------------------------------------------------------
Distinguished Achieved Expectations More Is Expected
-----------------------------------------------------------------------------------------------------------------------------------
1 2 3 4 5
-----------------------------------------------------------------------------------------------------------------------------------
IV. Relationship Leadership (10%)
-----------------------------------------------------------------------------------------------------------------------------------
. Ease of working with Agency . Helps others to resolve issues. . Acknowledges the feelings of . Is inconsiderate of other
. Discourages others from others. people's time.
behaving disrespectfully . Honors requests for keeping . Cannot be counted on to
. Treats all people respectfully information confidential. maintain confidences.
regardless of level. . Follows up with people in a . Is timely in responding
. Proactively supports the active timely manner. to Agency management's
participation of all team . Values others' time. requests but not always
members. . Consistently reinforces to clients'.
. Actively solicits and others' self-esteem. . Is not sensitive to
incorporates feedback to . Contributes to cohesive, the concerns or needs
improve performance. diverse work teams to of others.
achieve goals.
. Consistently uses STAMP.
. Quality of Team . Actively builds, maintains and . Establishes contacts and . Makes effort to initiate
utilizes an extensive informal builds rapport with others. but not sustain
network of Blue Box and Agency . Interacts openly and candidly relationships over time.
colleagues. with others. . Focuses on relationships
. Willingly makes departmental or . Builds relationships with within own business unit,
unit resources available. others to share ideas and rather than seeking out
. Seeks and forges partnerships provide support. partnerships that
that are mutually beneficial. . Willingly engages in shared included Blue Box and
. Identified and maximizes utility processes for resource Agency colleagues.
opportunities to build allocation. . Focuses on maintaining
long-term relationships. existing relationships
. Develops and leverages staffing rather than forging
plan which supports Business new partnerships.
Partners' needs. . Is less than open and
. Hires/trains the teams to be candid with others at
experts within the industry, times.
and brings leading edge
marketplace learnings to Amex.
. Remains enthusiastic during . Is able to deal effectively
change. with multiple and conflicting
demands.
-----------------------------------------------------------------------------------------------------------------------------------
