Guidelines for Travel and Related Expenses

Corporate Travel Policy

Guidelines for travel and related expenses

May 12, 2008

5420 Old Orchard Road Skokie, Illinois 60077-1083 847.966.6200 Fax 847.966.9781 www.cement.org

Travel 1 Portland Cement Association Corporate Travel Policy

Section Page No. 1.1 Overview 3 1.2 Approval of Travel 4 1.3 Trip Report 4 1.4 Travel Arrangements 4 1.5 Personnel Aboard One Aircraft 4 1.6 Personal Travel 4 1.7 Non-Employee Travel 4 1.8 Damaged or Lost Luggage 4 1.9 Automobile Rental, Limousine, or Taxi 5 2.0 Use of Personal Vehicle for Business Travel 6 2.1 Business Meals and Entertainment 6 2.2 Lodging 6 2.3 Corporate Credit Card 6 2.4 Travel Advances 7 2.5 Expense Reporting 7 2.6 Reimbursable Expenses 9 2.7 Non-Reimbursable Expenses 10

Travel 2 Travel

1.1 Overview The purpose of this policy is to provide guidelines for authorized employee travel, entertainment, and other expenses incurred in the conduct of company business. In addition to the guidelines, the policy provides specific procedures with regard to incurring and reporting business expenses, use of corporate credit card, travel advances, and expense reporting.

It is PCA’s corporate policy to reimburse employees for necessary travel and other related expenses incurred while engaged in the conduct of Association business. The policy is intended so that the accommodations and services required shall adequately meet the needs of employees for comfort and appropriateness for the effective conduct of business.

PCA will not pay unreasonable or excessive charges. Expenses incurred for travel or entertainment should be within reasonable limits and commensurate with the nature of the business assignment.

It is the responsibility of Corporate Services to establish travel policy and requirements as stated in these guidelines. It is the responsibility of the Accounting Department to maintain all appropriate documentation of corporate travel expense and to reimburse out-of-pocket expenses in a timely manner.

It remains the responsibility of the department director to control travel and entertainment expenditures. Compliance with corporate policy and instruction for completing the proper forms in detail is the responsibility of the person submitting an expense report. The employee’s direct supervisor will approve expenses.

While this policy does not cover every possible situation, it establishes adequate parameters for employees to make appropriate judgments about the expenditure of company funds.

Travel 3 1.2 Approval of Travel Authorization for business travel is obtained in advance through the traveler’s supervisor. The supervisor must be advised of the travel purpose, travel method, and proposed itinerary. If the trip includes international travel other than Canada, authorization must be received before the trip from both the supervisor and an officer.

1.3 Trip Report A brief trip report will be generated after each trip by the traveler. The trip report will state the details of the trip and the business objectives accomplished. The report will be used in the annual evaluation of travel and achievement of PCA objectives. The PCA expense report contains a trip report section.

1.4 Travel Arrangements Airline reservations should be booked through a PCA traveler coordinator. Staff should book the most direct route and the lowest fare. Obtaining the lowest airfare can best be accomplished by planning travel as far in advance as possible.

A PCA officer may authorize business or first class travel if it is warranted due to a physical disability, or if time constraints are involved.

1.5 Personnel Aboard One Aircraft The number of PCA staff and corporate (elected) officers who can travel together on the same aircraft, commercial or private, is limited as follows:

1. The Chief Executive Officer and no more than two other officers can travel on the same aircraft. 2. No more than five PCA staff can travel on the same aircraft.

1.6 Personal Travel Any incentives earned on the business portion of travel through an airline mileage program may be retained by the traveler for personal use. However, business travel arrangements may not be made on specific airlines for the purpose of earning mileage incentives, unless that particular airline offers the lowest available fare.

1.7 Non-Employee Travel The Association will not reimburse the employee for their spouse’s travel in conjunction with PCA meetings, trade shows, and other events unless special circumstances prevail, such as medical or mobility assistance, and if approved by an officer. .

1.8 Damaged or Lost Luggage Commercial air carriers accept liability for loss, delay, or damage to baggage. If a traveler experiences damage to luggage due to handling by the air carrier, a claim should be filed with the carrier. Any additional monies needed to repair or replace luggage are the responsibility of the traveler and are not reimbursable.

Travel 4 1.9 Automobile Rental, Limousine, or Taxi Employees should use taxi and shuttle services when available and economically feasible. Employees are expected to use the most economical ground transportation, and are encouraged to use courtesy cars, taxis, rental cars. Many hotels have courtesy cars which will pick up the traveler at the airport and take him/her back to hotel at no charge or at a nominal fee. Employees are urged to use this service.

For travel to and from O’Hare and Midway airports, PCA maintains an account with O’Hare-Midway Limousine Service (refer to Account #8371 when making a reservation; telephone number: 312.558.1111). Employees should consider whether the cost of mileage, tolls, and parking is more economical than using a taxi or the limousine service. When reserving a limousine, traveler’s should request a shared car.

When car rental is necessary, employees are encouraged to select the most economical vehicle rentals. PCA is a member of the Hertz Business Account Program, (refer to Account CDP# 58319 when making a reservation). Automobiles rented in the United States and Canada in the name of the Portland Cement Association or the Cement Association of Canada, are covered by insurance provided through the Association’s policies with Travelers Property Casualty Company of America or current provider. Coverage under both polices is for a combined single liability limit of $1,000,000. Additional umbrella coverage of $15,000,000 is also provided. Deductibles under the policies are $1,000 comprehensive and collision (US) and $2,500 comprehensive and collision (Canada). Coverage for damage to the rental car is limited to $50,000 under both the U.S. and the Canadian policy.

The traveler should refuse all insurance coverage offered by the rental agency when renting a vehicle for business travel within the United States and Canada. PCA’s business insurance coverage does not apply to rental vehicle outside the boundaries of the United States and Canada to assure that coverage under our policies with Travelers Insurance applies. Therefore, when using a rental vehicle in any country other than the U.S. or Canada (including Mexico) the traveler should accept the insurance coverage offered by the rental agency.

Coverage under PCA’s automobile policies is not provided for automobiles rented by employees of Regional Promotion Groups (RPG). All RPG employees who are holders of the American Express Corporate Card have been enrolled in the American Express Car Rental Loss and Damage Coverage Program. This Program covers loss or damage to a car rented by a card member on the American Express Corporate Card. RPG employees renting a car from a rental agency using the American Express Corporate Card should decline the collision damage waiver offered by the rental agency. Coverage is provided for car rental loss and damage only. Bodily injury coverage is not provided.

Travel 5 2.0 Use of Personal Vehicle for Business Travel PCA will reimburse employees for authorized business use of a personal vehicle at the rates established by the Internal Revenue Service (U.S. employees) and by Revenue Canada (Canadian employees). Toll charges and parking fees are also reimbursable expenditures.

2.1 Business Meals and Entertainment The IRS defines a business meal as food and beverage consumed under circumstances conducive to business discussions. In accordance with IRS regulations, the names of individuals and their business affiliation, location where meal or entertainment took place, date, business purpose, and amount of expense must be reported by the employee.

Expenses incurred in entertaining PCA personnel generally are not reimbursable unless they have a bonafide business purpose or are occasioned by key personnel visiting PCA locations or when an associate is part of the group that is entertaining external people.

2.2 Lodging PCA expects its employees to seek accommodations that are comfortable, convenient, meet business and personal needs, and offer a good value. Employees should use standard single-occupancy rooms at hotels.

When booking hotel accommodations in conjunction with a conference, employees should try to stay at the hotel where the conference or meeting is being held to take advantage of conference rates offered by the hotel. If the employee is attending a meeting where the hotel is not offering discounted rates, the employee should seek a hotel that falls in the moderate range for the city in which the meeting is being held. The employee should take into consideration the distance from the meeting site and convenience when deciding on a hotel.

Travel Expenses

2.3 Corporate Credit Card Staff is reimbursed for out-of-pocket expenses for travel, meals, and other miscellaneous expenses. PCA may also issue an American Express Corporate credit card for the use of certain staff members that frequently need to incur various expenditures on behalf of the Association.

All expenses charged to each corporate card are billed directly to the individual card holder whose responsibility is to remit payment for such charges directly to American Express on a timely basis. Business expenses charged to the corporate credit card will be reimbursed to the cardholder upon submittal of an approved expense report to the accounting department.

Travel 6 As a corporate card member with American Express, PCA staff are eligible to enroll in the American Express Membership Rewards Program. Individuals are responsible to enroll and the yearly fee will not be reimbursable by PCA.

All PCA air travel should be booked with a designated PCA travel coordinator and charged to the PCA American Express Corporate credit card. Air travel charges will be centrally billed to the PCA Accounting Department by American Express on a monthly basis. A credit card issued by PCA will be cancelled upon the date of the employee’s termination. Any employee’s card may be terminated, at the discretion of the Vice President-Finance, if an employee has abused card privileges.

It is the employee’s responsibility to return all company credit cards, before departure from employment and before final compensation checks are issued.

2.4 Travel Advances A travel advance may be issued by the Accounting Department. A Requisition for Funds must be completed and approved by the employee’s supervisor. The travel advance will be deducted from the next expense reimbursement check issued by the Accounting Department.

2.5 Expense Reporting The Internal Revenue Service has significantly restricted deductible expenses with regard to travel and entertainment, increased their frequency of audit in this area, and become increasingly explicit regarding documentation requirements of employee expenses. In compliance with their regulations, PCA requires certain forms of receipts and explanation from its employees. A receipt is required for any expense exceeding $25.00 and any entertainment expense.

All business travel and entertainment related expenses must be accounted for on the company’s expense report form. Employees should obtain receipts for all expenses incurred. As a guideline, allowable business expenses must be:

 Customary and accepted in the industry or occupation in which the individual works  Directly related to the individual’s present occupation  Reasonable in amount and not excessive  Necessary to enable the individual to perform properly the duties of individual’s employment

Expense reports with documentation must be approved by the appropriate officer, director, or manager and submitted to PCA’s Accounting Department for payment. Expenses should be reported on the Excel spreadsheet form and the additional Supporting Data form must be completed and submitted with expenses. Supporting data includes identification of individuals who were part of the meeting, meal, their business relationship, and purpose of the meeting. Departmental lunches require pre-approval by

Travel 7 the director or officer. If department staff gathers for meeting/meals, the senior staff individual in the gathering should submit the expense for reimbursement. This type of expense should be listed under Entertainment on the expense report.

An employee expense report may be returned to an employee for correction for the following reasons:

1. Expense report was not properly authorized by the supervisor, or in supervisor’s absence, the supervisor’s direct manager. 2. Expensed item is not reimbursable in accordance with policy. 3. Receipts for expenses over $25.00 were not attached as supporting documentation for expenses. 4. Mileage was not computed at the IRS published rate.

It is the responsibility of the employee to correct any discrepancies or provide substantiation for items in question and submit a new expense report to their supervisor for authorizing signature.

The PCA Accounting Department will verify that each expense report is properly documented in accordance with these guidelines. These guidelines are applicable for expense reports submitted by PCA and CAC staff. Expense report submitted by Regional Promotion (RPG) staff that have been approved by the appropriate RPG officers or staff shall be accepted as submitted.

PCA issues reimbursement checks every Thursday. Expense reports to be issued on Thursdays, must be received by the Accounting Department by 3:00 p.m. on Wednesdays. The Accounting Department will prepare a reimbursement check payable to the traveler for the amount of approved reimbursable business expenses less any outstanding travel advance.

Travel 8 2.6 Reimbursable Expenses 1. Transportation Expenses All business transportation expenses incurred in compliance with above guidelines will be reimbursed if approved by the employee’s supervisor. Excess expenses incurred as a result of deviation from the guidelines will be reimbursed only if approved by an officer.

2. Mileage Employees will be reimbursed for authorized business use of a personal vehicle at the rates established as acceptable by the Internal Revenue Service (U.S. employees) and by Revenue Canada (Canadian employees). This allowance is intended to cover all operating costs. Tolls and parking fees are reimbursed separately.

3. Lodging Employees will be reimbursed for hotel lodging when traveling on PCA business. Employees should use standard single occupancy rooms at hotels, and should take into consideration distance and convenience when deciding on a hotel.

4. Subsistence Reasonable expenses in connection with an employee’s lodging and meals during an approved business trip are reimbursable. Meals purchased for others (including staff) are deemed entertainment expenses and require additional documentation to support justification such as identity of person, business relationship, and business purpose.

5. Other Expenses Other necessary and reasonable expenses incurred during business travel, such as local transportation, telephone calls, internet, copying, fax, postage, and shipping are reimbursable.

6. Passports Initial passports required for international travel in the conduct of company business will be reimbursed by the company. Renewal fees associated with expired passports are also reimbursable.

7. Visas Visa fees levied by foreign governments that are incurred in order to conduct company business abroad will be reimbursed as a miscellaneous travel expense.

8. Airline Clubs Fees for membership in frequent flyer clubs, such as United Red Carpet Club or American Admirals Club, are reimbursable as miscellaneous travel expenses for officers and directors. Each eligible employee is allowed one membership per calendar year.

Travel 9 9. Excess Baggage PCA will reimburse the employee for excess baggage charges only when the employee is required to travel with equipment, printed materials, etc. which exceed the normal weight limitations.

10. Entertainment Entertainment expenses are expenses that either directly relate to the conduct of business or occur directly before or after substantial business discussions. If possible, entertainment must be approved by the employee’s supervisor prior to the event. PCA will reimburse expenses for entertainment which are deemed to be of benefit to the association, whether or not such expenses are incurred during travel.

11. Requested Travel by Members or Affiliate Organizations When PCA staff are requested by members to travel and make presentations, PCA staff will not request that their expenses be reimbursed by the member company unless it is for a contracted education program.

When PCA staff are requested to make presentations and/or teach workshops at industry tradeshows, allied, or affiliate organizations, PCA staff will request reimbursement for travel and out of pocket expenses, unless non-reimbursement is approved by the employee’s supervisor.

2.7 Non-reimbursable Expenses The following are examples of expenses that will not be reimbursed by PCA:

Annual credit card fees for personal credit cards Dry Cleaning Finance charges Flight insurance Gifts for other employees Lost or damaged luggage Salon services Newspapers or magazines purchased during travel Stolen personal items

5/1/08

Travel 10