How YPO International is Structured and What Our Dues Pay For

1. How YPO International isStructured and What Our Dues Pay For Mark Louchheim, International Board Member Les Ward, YPO CAO/CFO 16 March 2006

2. Overview • Members • Chapters • Regions • Leadership Congress • International Board of Directors • YPO International Management

3. YPO International Structure Leadership Congress International Management

4. Chapters Chapters provide frequent and intimate contact among YPO’s 10,000+ members • Primary chapters • Geographically-based • Gateway chapter • Secondary chapters or network • Geographically-based • Interest or passion-based

5. Regions • 15 geographically contiguous regions – provide chapter support and governance administration • The Regional Chair leads the Regional Executive Committee (REX) and/or Regional Board (RB) • Each region has a governance structure and slate of officers which manage the individual region’s needs • Some regions subdivide themselves into Areas and nominate an officer to serve as an Area Chair

6. Regional Board Members • Regional Chair (“RC”) • International Board Representative (may also be RC) • Area Chairs from region (if any) • Chapter Chairs • Chapter Education Chair and/or Education Chair-elect • Current and future Conference Chairs • YPO CEO or other management representative • Regional Director (formerly Area Director) or other management representative • Additional participants may include other chapter officers or leadership

7. Regional Board Responsibilities • Serves as a link between the International Board and chapter leadership by: • keeping chapter leaders informed of issues at the International level • providing the International Board with the view from the region’s membership • Ensures region has long-term strategic plan in place • Acts as stewards of regional and development funding, looking for key opportunities to improve the members’ experience in YPO

8. Regions Canada Central US East Central US Latin America/Caribbean Northeastern US Pacific US Southern US Western US Australia/New Zealand Northern Asia Southeast Asia Southern Asia Africa Europe Middle East/North Africa

9. Leadership Congress • Opportunity for each Chapter to provide input to YPO International on tactical and strategic issues • Opportunity for Chapters to raise issues of concern that they feel need to be addressed

10. International Board of Directors • The governing body of YPO International • Assures long term vision and strategy • Sets broad policy • 12 Regionally Elected Directors • 3 year term • 8 non-elected Directors • 1 year renewable term • Maintains and enhances YPO’s uniqueness • Stimulates participation and develops leaders

11. Dave Maney Education Chair* Jeffrey Rosenthal Networks Chair* Mike Kelley Events Chair* Carrie Stone Forum Chair* Regional Chair TBD Finance Chair* Shep Moyle Past Chairman* & Leadership Chair Loay Nazer Chairman of the Board* Regional Chair TBD RMD Chair* Regional Chair Hiten Khatau Wildcard TBD Audit Chair* Dave Nelsen Vice Chairman of the Board David Martin CEO 2006-2007 YPO International Board of Directors John Garda Corporate Secretary and Legal Counsel*† *Indicates Officers of YPO † Indicates Non Voting Member

12. Greg Martin Pacific US Rich Kylberg Western US Sean J. Clancy Asia/Australia/NZ Mike Pappas Southern US Carlos Penaloza Latin American/Caribbean Toby Malhoutra MENA/Southern Asia Howard Kaplan Northeast US Ekin Ozker Europe Davis Nelsen East Central US Rich Thompson Canada Richard Van Rensburg Africa Brent Johnson Central US 2006-2007 YPO International Board of Directors (cont’d)Regional Elected Directors

13. International Chairman of the Board • Elected for a one-year term • Oversees YPO activities and executes Board decisions through the CEO • Ex-officio member of all committees • Full member of: Nominating, Events Budget, and RMD • Chairs Compensation Committee

14. Committees • Events (Events Budget SC, Events Chairs RT, GLC) • Education • Forum • Networks • Audit • Finance • Regional & Membership Development (RCC) • Leadership • Nominating • Compensation

15. Events Committee • Oversees all YPO International Events • Recommends new events to the Chairman of the Board • Reviews programs for quality, reviews event ratings and recommends improvements • Recommends new champions and provides training to all event Chairs • Oversees the Global Leadership Conference • Provides oversight to the Event Chairs’ Roundtable and the Events Budget Committee

16. Education Committee • Ensures the continuing quality, relevance & vitality of YPO’s education offerings • Maintains policies & procedures for supporting high quality education at the Chapter, Regional & International levels • Identifies & supports new Education Champions • Supports new education resources • Oversees ratings & evaluations processes • Recommends YPO education related awards, including those presented at the Global Leadership Conference • Oversees all Champion related training, including the GLC workshop

17. Forum Committee • Ensures the continuing quality, relevance & vitality of YPO’s Forum offerings • Serves as guardian of Forum processes • Promotes & protects standards of forum confidentiality • Encourages that every YPO Member & spouse has access to the Forum experience • Identifies & supports new Forum Champions & Forum products • Oversees all Champion training related to Forum, including the GLC Forum Workshop

18. Networks Committee • Oversees the continuing quality, relevance & vitality of YPO’s Networks offerings • Maintains policies & procedures for supporting YPO Networks • Provide necessary resources at the Chapter, Regional & International levels • Identifies & supports new Network Champions & Networks offerings • Oversees all Champion training including the GLC Workshop

19. Audit Committee • Conducts itself pursuant to an Audit Committee Charter • Oversees annual audit • Recommends rules for disciplinary proceedings • Reviews potential conflicts of interest & other disciplinary matters • Provides independent review of financial or other risk matters • Monitors violations of governance

20. Finance Committee • Oversees all matters of a financial nature • Operating budgets • Investments • Insurance • Benefits • Provides oversight on the reporting of financial results • Preserves and protects YPO funds and assets

21. Regional & Membership Development Committee • Responsible for issues related to Membership, Peer Review, and Chapter issues • Membership access, integration and growth • Diversity • New chapter development • Chapter leadership and training • Membership policies • Chapter health and standards • Membership strategic relationships • Regional and Development funding • RCC provides input to the RMD & develops programs to implement YPO strategies at the Regional level

22. Leadership Committee • Identifies, advances and nurtures YPO Member leaders • Deals with governance issues involving Officers and Directors of the Organization • Recommends new policies and/or changes to existing policies related to YPO governance

23. Nominating Committee(s) (2) • Two distinct committees • Chairman of the Board (1st Committee) • Audit, Finance & RMD Committee Chairs (2nd Committee) • Composition of 1st Committee • Incumbent Past Chair (Chair of 1st Committee) • Incumbent Chair + 6 voting Board Members (chosen by lottery) • Composition of 2nd Committee • Incoming Past Chair (Chair of 2nd Committee) • Incoming International Chair + 6 voting Board Members (chosen by lottery)

24. Compensation Committee • Comprised of the International Chair, Chairs of the Events, Forum, Education, Finance, Leadership and Networks Committees • Reviews the salary & bonus of the CEO and all direct reports to the CEO

25. YPO International Management • Highly trained professional management team supports the Members in the following areas: • International Seminars, Experiences & Universities • Event Registration • Membership • Finance • Networks (M2M Exchange, Networks, Sponsorship and Forum) • Education • Information Systems

26. YPO International Management

27. Education Department

28. YPO International Management

29. Global Operations 6 March 2006 6 March 2006

30. YPO International Management

31. Regional Management Team Regional Directors Events Directors Directors, Member Networks Education Directors Regional Manager Regional Membership Services Managers

32. How Dues are Spent • 72% Member Services - $1,626 • 3% Governance - $78 • 4% Executive - $88 • 10% Finance & Facilities - $217 • 6% Human Resources - $133 • 2% Chairmen Expenses - $45 • 4% Depreciation - $94 • -1% Contribution to Reserve – ($31) Dues - $2,250

33. Value of YPO Membership • Regional support – membership processing, regional initiatives, regional events & regional conferences, TRP’s, etc. • Officer training (GLC) • Members-only website • Networks (incl. Network Navigator, Roundtables, Meetings in Meetings) • Member Exchange – M2Mx

34. Value of YPO Membership (cont’d) • Educational Offerings (Business & Personal Development Seminars, Presidents’ Seminars) • International Events (Universities, Experiences, Conferences) • Family Involvement (Family Universities, Family Experiences, Family Conferences, Parent-Child Seminars, Youth Seminars, Youth Global Network) • Forum

35. Value of YPO Membership ? It’s Priceless

36. Thank You! Q & A