Incentives and Recognition

1. Incentives and Recognition Gillian Tierney Vice President Human Resources 2011

2. Agenda • Company Overview • Philosophy • Incentive Programs • Recognition Programs • Taxes • Budget • Things to avoid

3. About Newmarket International • Newmarket International, Inc. is the leader in delivering group sales, catering and banquet software solutions to the global hospitality and entertainment industries • 325+ employees worldwide with offices in Portsmouth, California, London, Singapore, and China

4. Incentives vs. Recognition • Incentive: • something that incites or tends to incite to action or greater effort • Recognition: • the acknowledgment of achievement, service, or merit

5. Newmarket’s Philosophy • Incentives and recognition are tied to company goals, values, customer service, and performance

6. Incentive Programs

7. EBITDA Bonus Program • Program for employees to share in NI’s success! • EBITDA--Earnings Before Income Tax, Depreciationand Amortization expenses • EBITDA Profit Sharing Bonus for eligible employees • Eligibility—employees not in any other incentive or commission program • New hires joining October 1st or earlier; pro-rated by start date • % of base pay based on position • Bonuses paid if NI meets 100% of target

8. Other Incentives • Merit based salary reviews • Commission incentive for sales • President’s Club for Sales • Stock options • Contests • Green incentives

9. Wellness Incentives • Biggest Loser Contest - $250 prize • $250 raffle to complete a HRA • Lower premium for High Deductible Health plan

10. Rewards and Recognition Programs

11. General Strategies • Tie to goals, values, service, and performance • Mix of core and new programs • Mix of management and peer recognition • Mix of public and private • Mix on monetary and nonmonetary • Rewards for fun • Celebrate Success

12. People’s Choice Award • People’s Choice Award • Quarterly award to acknowledge an outstanding employee • Winner receives a 3 day trip • Nominated and selected by employees • Awarded at quarterly company meeting

13. Peer/Manager Recognition • FWD Award • Employee recognition program • Aligned with company marketing theme • Employees complete FWD coupons to earn points

14. FWD Awards • Each recognition earns 1 point for the following prizes: • 1st Point= NI FWD Key Chain • 3rd Point= NI FWD Water Bottle • 5th Point=NI FWD Hooded Sweatshirt • 10th Point= Raffle for $250 Amex Gift Card

15. Give’ em the Pickle • Newmarket’s Customer Service Training Program

16. Years of Service Awards • 5 years - desk set and $50 • 10 years- clock and $100 • 15 years – crystal award and $150

17. Management Recognition • Thank you • Private recognition • Events • Celebrate Wins Newsletter

18. Rewards for Fun • ½ day Fridays • Give A Ways • Company Meeting Games and Prizes • Family Events—Summer BBQ, Halloween • Free tickets to museums and other venues • Causal Dress Code • New baby blankets

19. Rewards for Fun • Joy Gang • Monthly Employee Social/Fun Events • Roller skating • Bowling nights • Nacho Bar on Cinco de Mayo • Ice Cream Truck • Cooking/Baking contests • Bingo • Food, food, and more food

20. Rewards for Giving Newmarket provides employees with 2 volunteer days per year!

21. Fringe Benefit Tax • We typically don’t tax: • Anniversary gifts for years of service • Meeting give-a-ways (sweatshirts, movie passes, etc..) • Prizes (water bottles, water country tickets, key chains) • Gift certificates • We typically tax high value awards such as: • Trips (People’s Choice, President’s Club) • High value sports tickets • High dollar cash awards • We make our best effort

22. Budget and Management Buy In

23. Things to avoid

24. Thank you and questions

25. Table Discussion • What incentive and recognitions programs do you already have in place? • What are your biggest challenges with incentive and recognition programs? • What is one item you can take away from this session today to implement at your company?

26. Incentive & Recognition Programs Karen Brieger

27. Hertford, UK Reading, UK London, UK Hook, UK Linden,Germany La Défense, France Great Neck, NY Alpharetta, GA Raleigh, NC Melbourne, AUS Bottomline Technologies 1,000+ Employed Worldwide Offices in US, EMEA & Asia-Pac NASDAQ: EPAY Wilton, CT 9,000+ Global Customers Portland, ME Marlton, NJ Portsmouth, NH East Brunswick, NJ 80 of the Fortune 10070 of the FTSE 100 Revenue $189M New Zealand

28. Guiding Principles • Focus on Customers and Commit to Their Success • Innovate, Communicate, Win and Grow • Work With and For Each Other • Do the Right Thing • Create and Grow Sustained Business Value • Be a Company of Which All Can Be Proud

29. C1 – First Class Customer Care • Walk in the customers shoes • ‘Know Your Customer’ • Grow our business through service excellence • Identify business areas where C1 can have a bigger impact • Ensure we have the skills and capabilities to effectively communicate and execute against our C1 goals

30. Programs • Thank you’s • “Happy Monday” • Newsletter • Employee of the Quarter • C1 Customer Execution Award • On-The-Spot Bonus • Project based bonus/rewards • Training opportunities

31. Programs • Quarterly bonus (all levels) • Training opportunities • Challenging work opportunities • Equity Awards • Gift Cards • Wins! • Tenure – Only 10 year • Food!

32. Housekeeping • Taxes • Budgets • Administration

33. Recommendations • Different people, different motivations • Drive your culture • Thank you goes along way • Incent the right behaviors • Don’t be afraid to try

35. Incentives and Recognition

36. About RiverWoods • RiverWoods is a continuing care retirement community, located in Exeter, NH. We have three campuses that enrich the freedom of senior living while easing the challenges of aging. • 475+ employees throughout the three campuses.

37. RiverWoods’ Philosophy • Incentives and recognition are tied to our commitments and core values. They are an expression of the relationship shared between residents and staff. • Our commitment to staff and residents to encourage personal growth and remain at the forefront of excellence in senior living.

38. Incentives

39. Wellness Incentives • The goal of the program is to create opportunities for everyone to achieve their optimal health and well being. Everyone’s wellness journey looks different and RiverWoods wants to help each employee on their journey by providing resources and support to help them achieve their optimal health.

40. Wellness Incentives • Each employee has the opportunity to earn $275.00 over the fiscal year, July 1, 2011 to June 30, 2012. • $50.00 for having your annual physical and “knowing your numbers” (all employees) • $75.00 for completing the Harvard Health Questionnaire (benefits eligible employees) • $100.00 for Dream Activity/Employee Physician Initiative (all employees) • $50.00 Participation in Get Fit in May 5k Event or another like event (all employees)

41. Incentive in Action

42. Wellness Incentive Challenges • Human Behavior • Everyone is motivated by something different • Payroll/Taxes • Communication

43. Financial Incentives • Based on our compensation philosophy • Offered based upon goals and business objectives. • For some positions base plus bonus • Exceptional Job • Snow Bonus • Above and beyond

44. Recognition

45. Gold Level Service • Employees are nominated by anyone in community • Employee Committee • Service Recognition Awards • Gold Level Service Awards

46. Gold Level Service • Recognized at Quarterly All Employee Meeting • Nomination read by manager • Annual Recognition Dinner

47. Instant Recognition • Available in various areas throughout communities • Small note cards • Anyone can recognize someone else INSTANTLY!

48. Departmental Recognition • ES Week/Prizes and Games • Nursing Week • Pat on the Back • Hand written notes • Private Recognition

49. The Power of Thank You • Leadership Development • Positive Work Environment

50. Years of Service • Quarterly All Employee Meetings • One Year – pin/certificate • Five Years – item from employee store • Ten Years - $100 • Fifteen Years - $250