Supplier & Contractor Travel & Expense Agreement

1 Purpose


The purpose of the Supplier Travel & Expense Agreement (“Agreement”) is to provide guidelines for domestic & international travel and business expense practices throughout Vonage (referred to as “the Company”).

This Agreement applies to all suppliers and contractors of Vonage Holdings Corp. The Agreement defines what the Company considers proper reimbursable expenses in the areas of travel and normal business transactions and supersedes any previously issued policies or guidelines. All activity giving rise to reimbursable expenses must be pre-authorized by Supplier’s relationship manager within Vonage. Any exceptions to this agreement require VP level or above written approval unless otherwise noted. In addition, Supplier’s contract may address any Vonage-approved exceptions to this Agreement.

 

2 Procedure

2.1 Supplier Responsibilities

It is the responsibility of each Supplier to ensure all reimbursable expenses are legitimate and include a detailed business purpose description. All Suppliers authorized to expense travel to Vonage are expected to become familiar with this agreement and to submit applicable travel documentation (expense reports, receipts, etc) within 30 days of business travel completion unless otherwise stipulated by contract agreement.

A Vonage manager who reviews Supplier expense report details, represents by signature approval that the expenses are legitimate business expenses and are in accordance with this agreement.

Managers are responsible for ensuring a signed copy of this agreement is on file prior to their Suppliers’ business travel.

The Company is not responsible for finance charge expenses assessed by personal credit card companies.

2.2 Travel Process

It is required that all Suppliers make their travel arrangements, including air, hotel and car rental reservations and changes to those reservations, through the Vonage authorized travel group, FCm Travel Solutions (US +1 201-934-3896 / UK +44 1612 417041 / HK +852 2830 2788 / SG +65 6692 9654) in accordance with the guidelines provided in this agreement. Suppliers who do not secure travel reservations through FCm Travel Solutions are held personally liable for the cost of the non- compliant travel arrangements.

2.3 Booking Travel

The following information must be provided to FCM Travel Solutions when securing reservations:

  • A valid credit card
  • Date of travel
  • Supplier name, phone and fax numbers
  • City and state/country the Supplier is traveling to and from
  • Supplier ground transportation and lodging needs (if any)
2.4 Air Travel

The travel group has been instructed to obtain the lowest available airfares consistent with the Company’s agreement. The travel group will balance the lowest fare against unduly long layover times for fares with connecting flights. As a guideline, layover times of less than two hours are considered reasonable. Suppliers must accept the lowest-priced airfare on any scheduled major carrier as provided by the travel group, unless a higher fare is deemed appropriate for business reasons and prior email approval is obtained by the travel group from the department Vice President.

All travelers must fly Coach/Economy Class for all flights (a single leg) under 14 hours in duration. Suppliers are personally responsible for all expenses associated with airfare upgrades that are not covered by this agreement. Very often, Suppliers know their schedule requirements well in advance of the travel date. Purchasing airline tickets in advance results in significant savings. Unless business requirements dictate otherwise, Suppliers are expected to book travel at least seven

(7) days in advance of the date of domestic travel and fourteen

(14) days in advance for international travel. Suppliers who need to book their tickets with less than seven (7) days advance notice must obtain prior written approval from the department Vice President sponsoring the supplier services and such written approval must be attached to the related expense report. All business class reservations must be approved by the department Vice President prior to finalizing reservations.

Booking fees assessed by travel agencies are listed separately on the expense report and not included in the air fare cost.

2.5 Unused tickets

2.5.1 Return of a Refundable Unused Ticket

If a ticket is purchased on a refundable fare and not used for the intended purpose, travelers are required to notify the travel group at least two hours prior to the scheduled departure date/time any time travel reservations are cancelled to ensure proper tracking and prompt refunding/crediting. Unused tickets are not to be included on an invoice or Supplier expense report. The Company does not reimburse for “no shows.”

2.5.2 Return/Re-use of Nonrefundable Tickets

Unused nonrefundable tickets have no monetary value and are not transferable. Travelers are required to notify the travel group at least two hours prior to the scheduled departure date/time any time travel reservations are cancelled. The agency maintains an inventory of these tickets for future use.

2.6 Lost Baggage or Personal Items

The ultimate responsibility for retrieving and compensating for lost or damaged baggage lies with the airlines. The Company will not reimburse Suppliers for personal items lost while traveling on business.

2.7 Baggage Fees

Suppliers are reimbursed for baggage fees up to $25 for domestic travel and $50 for international travel. It is recommended that Suppliers ship meeting materials in advance to avoid excess baggage fees.

 

3 Rail Service

All rail travel, with the exception of local rail tickets, must be booked through the travel group. Travel by train is limited to Coach or Economy fare; however, Supplier’s employees may utilize Amtrak’s Acela service for travel along the East Coast corridor.

 

4 Lodging

Vonage reimburses for single occupancy, standard room rates. No deluxe rooms or suites are reimbursable. In-room movies and other ancillary expenses are not reimbursable. Internet access in the hotel room is reimbursable if there is a legitimate business reason.

Most hotels require a credit card to guarantee late arrival. If travel plans change, Supplier employees must notify the travel group (or the hotel directly if same day) to avoid a no-show room charge.

4.1 Hotel Reservations

Hotel Reservations must be made through the travel group, not directly with the hotels. If attending a conference/convention which has negotiated rates, please contact the travel group with applicable details to ensure the rate is applied and appears on your itinerary. Supplier may accept room upgrades to suites or executive floor rooms only if the upgrade is at no additional cost to the Company.

 

5 Rental Car

Rental car reservations must be made through the travel group, not directly with the rental car company. The travel group has been instructed to utilize the Company’s preferred Rental Car Services (Avis & Enterprise). The company standard is a mid- sized car. Supplier is responsible for any expenses associated with upgrades not covered under this agreement.

The use of a rental vehicle is justified only when it is more economical than the local ground transportation alternative, taking safety and travel time into consideration, or unless business needs dictate. If you are traveling to a country where the driving style is unfamiliar or uncomfortable, such as driving on the opposite side of your normal style, or where the roadways or where the risk of crime against foreigners driving alone is high, please use the taxis provided by the hotel, office, airport taxi management service or as dictated by local custom.

5.1 Rental Car Insurance

Suppliers’ rental cars are not covered under Vonage’s insurance policy.

5.2 Rental Car Cancellation & Return Procedures

Suppliers are responsible for cancelling rental car reservations by notifying the travel group. Suppliers must make every reasonable effort to return the rental car to the original rental city, intact, on time, and with a full tank of gas.

 

6 Parking & Other Transportation

6.1  Airport Parking

Reimbursement for short-term parking at airports is only permitted for same day or overnight travel. Suppliers must use general, long-term or offsite parking for travel exceeding overnight travel. If flying from the New York City area, Fast Track Airport Parking offers Vonage affiliates a 15% discount at Newark, LaGuardia and JFK airports. This rate is available for personal use and is the Vonage approved choice for business travel. Visit www.airportcorporateparking.com/vonage or call the Fast Track Airport Parking at +1-800-621-PARK (7275). Refer

to section 6.4, Alternate Ground Transportation for further options regarding the use of taxis and airport shuttle services.

6.2 Parking and Toll Charges

Parking and toll charges incurred while operating a personal or rental vehicle for business purposes are reimbursable.

6.3 Taxis and Shuttle Services

In all cases, availability of an airport shuttle service must be considered. The cost of taxis or shuttles will be reimbursed when no lower cost alternatives are available, such as driving your personal vehicle to the airport.

6.4 Alternate Ground Transportation

Alternate car service should only be used when the cost is less than other available public or rental car ground transportation options. The least expensive mode of ground transportation must be chosen except where there are security concerns and/or where specific business needs otherwise dictate. Limousines and car service is not reimbursable.

6.5 Personal Car Usage

Vonage reimburses Suppliers for the actual miles traveled. The Suppliers business purpose must be indicated on the expense report and should be accompanied by documentation (MapQuest®, Yahoo®, Google Maps ®, etc.) illustrating the exact points of travel and related mileage. The Supplier employee is reimbursed at the prevailing employee’s government-allowed (e.g., the U.S. Internal Revenue Service) standard mileage rate at the time of travel. Parking and tolls are also reimbursable expenses and receipts must be submitted. It is the personal responsibility of the vehicle owner to carry adequate insurance coverage for the protection of the owner and any passengers. Gasoline for personal vehicles is not reimbursable when mileage is expensed.

6.6  Additional Guidelines

  • Spouses or significant others may visit Suppliers while on assignment, however, the cost of travel, lodging, meals and all other expenses are the sole responsibility of the Supplier.
  • All Vonage issued equipment is the Supplier’s responsibility while traveling.

Vonage does not reimburse Suppliers for any travel related pet costs.

 

7 Meals and Entertainment

When more than one (1) Supplier is present during a business meal, the most senior level Supplier must pay and expense the bill. A list of attendees, including title, must be documented when expensing meals for more than one Supplier employee.

Entertainment expenses will be reimbursed only when the Supplier can clearly demonstrate a bona fide business purpose. Entertainment includes meals or events at country clubs, theatres, sporting events, etc. where a business discussion takes place during, immediately before or immediately after the event, with a clear benefit to the Company. Reimbursement for entertainment expenses is strictly limited to those Suppliers authorized to entertain guests as part of normal business relationships (generally Directors and above).

Entertainment involving “adult entertainment” is never suitable for business purposes. When giving business courtesies outside of the United States, Supplier is required to fully comply with the Foreign Corrupt Practices Act. Cultural practices should be considered when determining what is appropriate in extending business courtesies in international settings.

Your Expense Report must provide the following:

  • the specific business purpose of the meal/entertainment
  • the name(s) and title(s), and Company of all attendees
  • name and location where the meal/event took place
  • exact amount and date of the expense on an original receipt

7.1    Business Trip Meal Allowances

Suppliers are reimbursed for the actual, reasonable cost of meals associated with business trips (including international destinations). As a guideline, Supplier’s employees are to limit meal expenses associated with business travel to $100 USD daily (including tax and gratuity) where no single meal exceeds $50 USD. Daily meal allowance and individual meal limits are adjusted for the following locations:

City

Daily Allowance (USD)

Individual Meal Limit (USD)

Beijing

$115.00

$60.00

Hong Kong

$145.00

$80.00

London

$145.00

$80.00

New York City

$145.00

$80.00

San Francisco

$120.00

$60.00

Tel Aviv

$140.00

$70.00

The Company reimburses other reasonable and necessary business expenses. Only actual out-of-pocket expenses, with receipts or other documentation of the incurred expense, are reimbursed.

 

8 Miscellaneous Reimbursable Expenses

The Company reimburses other reasonable and necessary business expenses. Only actual out-of-pocket expenses, with receipts or other documentation of the incurred expense, are reimbursed.

8.1 Laundry

Laundry expenses are reimbursable only if Supplier’s employee is away from home for more than five (5) up to twenty-one (21) consecutive nights on business and the costs are properly documented. Supplier employees are personally responsible for all laundry and dry cleaning expenses if business travel requires more than twenty-one (21) consecutive nights (refer to section 5.2, Temporary Housing Accommodations).

8.2 Visas and Airport Use Tax

Vonage provides the necessary documentation and pays for all properly substantiated expenses connected with obtaining required visas. The timeframe for obtaining visas varies by jurisdiction, therefore Supplier must plan accordingly. Supplier should contact its account relationship manager within Vonage for information regarding visas. Airport use tax associated with business travel abroad are also reimbursable.

8.2 Currency Conversion

Supplier employees must obtain and submit all receipts for conversion with the Expense Reports. If receipts cannot be obtained, employees must enter the conversion rate used on the Expense Report’s top right hand corner. The conversion rate is the actual rate used by the employee’s credit card company.

The Company reimburses exchange fees (currency conversion finance charges) charged by the employee’s credit card company.

In order to expedite processing, please write the nature of the expense (e.g., lunch, cab fare, etc.) and the reimbursable currency amount on each foreign receipt.

Any remaining foreign currency must be converted to Supplier’s reimbursable currency at the end of the trip before leaving the foreign country. The Company will not accept foreign currency as a credit on a Supplier’s expense account.

8.4 Vaccinations

Vaccination expenses associated with business travel are reimbursable.

8.5 Gratuities

When appropriate, reasonable tips included on meal receipts will be reimbursed. Generally, a reasonable tip is 15% to 18%, but not to exceed 20%, of the actual meal cost (pre-tax), depending upon the country in which the employee is conducting business. Supplier should note that the gratuity may already be included in the total bill for large groups. Gratuities for services, such as those provided by a porter, a concierge or doorman, are reimbursable if the amount is reasonable and commensurate with the nature and quality of the service provided. Tips for housekeeping service are not reimbursable. Tips for taxi drivers are reimbursable but cannot exceed 15% of the value of the total fare.

 

9 Other Reimbursable Expenses

The company reimburses other business expenses if they are reasonable and necessary in the normal conduct of business. Only actual (not estimated) out-of-pocket expenses with receipts or other documentation of the expense incurred are reimbursed. Vonage reserves the right to reject an expense it does not deem a necessary business expense. Contact the Finance Department with questions regarding eligible expenses.

9.1 Non-Reimbursable Expenses

Any exception to the list of non-reimbursable expenses requires written/email approval from the executive department lead on your expense report.

The following (although not all inclusive), lists expenses that are generally not reimbursable:

  • airline membership fees/dues
  • country club, health club or spa fees
  • parking and traffic violations
  • clothing purchases
  • flight insurance
  • personal car repairs
  • expenses for spouses, domestic partners or family
  • prescription or over the counter medicinal products
  • personal travel portion during business trips
  • computers, laptops or cell phones and chargers for computers, laptops or cell phones
  • headphones on airlines
  • personal entertainment
  • gifts/gift cards for co-workers or customers (existing or potential)
  • hotel no-show,  cancellation charges not caused by business needs
  • internet/phone/cable bills for home/personal use
  • day care for children, pets or elder care
  • limousine or similar luxury car service
  • personal books, magazines, periodicals
  • grooming, nail or hair salon fees
  • lost personal items and valuables
  • pet care or travel costs
  • personal hygiene products
  • luggage for a business trip
  • political or charitable contributions
  • excess baggage charges
  • office supplies for home office
  • prepaid phone cards
  • donations from personal bank accounts
  • credit card, ATM, interest or annual fees
  • flexible/co-working office space (e.g. WeWork)

Note: Suppliers with questions on whether an expense is reimbursable should email [email protected] to solicit guidance.

Expense Reporting and Reimbursement

Expense reports must be submitted to Finance within thirty (30) days after the expense was incurred. Vonage remits payment to the Supplier once the Supplier expenses are approved by their Vonage manager. The name and title of the approver must be printed on the expense report.

Before submitting the Supplier Expense Report to the Finance department, ensure all required original receipts and documentation are neatly attached to the expense report and expenses are clearly defined. Failure to properly complete the Supplier expense report in a timely manner, including omitting the reason for the expense, the names of guests or required receipts could result in the Supplier expense report being rejected or delay reimbursement.

Non-reimbursable (unless approved and signed off on by an authorized Vonage executive who is a member of the Vonage Senior Leadership team) and ineligible expenses submitted for payment are rejected.

9.2 Receipts

Vonage requires the Supplier to attach detailed receipts or other appropriate documentation for all travel, meals and entertainment expenses and any other qualified out-of-pocket expenses for all items. Suppliers must provide airline boarding passes as well as the travel itinerary provided from FCm Travel.

The Supplier’s manager is responsible for reviewing the details of the Suppliers' expense reports. The manager’s review represents that the expenses are legitimate business expenses and consistent with the guidelines detailed in this agreement. Suppliers are responsible for ensuring that the appropriate documentation for their expenses is submitted in a timely manner.

Failure to comply with this agreement could delay or preclude reimbursement of expenses. Submission of an expense report containing any knowingly false information is considered fraudulent and grounds for disciplinary action, up to and including termination.

9.3 Contacts; Changes

If Supplier has any questions regarding this Agreement, please contact [email protected]. Supplier shall be subject to Vonage’s interpretations of this Agreement.

Vonage reserves the right to change, replace or add terms to this Agreement at any time, and will use reasonable efforts to provide Agreement updates to Supplier.