Business Travel and Entertainment Policy for Suppliers

Introduction

Idle Hour Bakery Inc. and its U.S. subsidiaries, which together form the Idle Hour Bakery USA Inc. bakeries business, are committed to covering necessary and reasonable travel expenses related to Company business activities. This policy aims to strike a balance between cost control and a convenient level of service that enhances the productivity of business travelers. Herein, the terms "Company" or "IHBI" refer to Idle Hour Bakery Inc. and its U.S. subsidiaries.

Responsibility

Each Supplier is responsible for understanding and adhering to this policy. It is the Supplier’s duty to ensure that:

- Travel and entertainment serve a necessary business purpose for IHBI.

- Expenditures comply with IHBI policy.

- All required supporting documents are submitted to IHBI in a timely manner.

Unnecessary travel and entertainment should be avoided.

Policy Guidelines

General

Suppliers are not restricted to a specific travel agency but are expected to choose cost-effective providers for air and hotel bookings. It is prohibited to select alternatives that benefit the Supplier through programs like "frequent flyer" or "frequent stay." Suppliers cannot receive incentives for travel arrangements. The Company will not reimburse expenses for spousal travel.

Air Travel

Suppliers must fly coach or tourist class on IHBI business and are at liberty to use frequent flyer miles for upgrades or personally fund upgrades beyond the authorized class. The lowest cost flights, aligned with the policy’s objectives, should be chosen, and chartered flights will not be reimbursed. Suppliers may retain frequent flyer program benefits but must avoid unnecessary travel or accommodations that increase Company costs. Membership fees for airline clubs will not be reimbursed.

Automobile Rental

Car rentals should be limited to travel beyond 75 miles from the Supplier’s business location with IHBI, with any exceptions requiring written pre-approval. In standard cases, intermediate-sized vehicles are preferred. Suppliers must refuel vehicles before returning them to avoid non-reimbursable refueling charges. Insurance charges and repair costs will not be covered by IHBI.

Personal Automobile Use

With prior written approval, Suppliers may use personal vehicles for business travel when convenient. Reimbursement aligns with a standard mileage rate reflecting expenses like fuel and maintenance. No mileage for commuting between a Supplier’s home and regular work location is reimbursed, nor are tolls and parking expenses.

Hotel Accommodations

Economy class hotels are the standard, and luxury accommodations are not reimbursable by IHBI.

Meals and Entertainment

Expenses for meals and entertainment should be reasonable. Entertainment expenses require details about the business purpose and those involved. Receipts are required for reimbursement, with a daily meal cost limit of $55 per person.

Creative/Alternative Travel Arrangements

Alternative arrangements can be made with prior approval if they result in cost savings without increasing expenses over a regular business trip.

Miscellaneous

Phone expenses, laundry, dry cleaning, and advance travel payments are not reimbursable. Additionally, personal expenses such as clothing, entertainment, and toiletries are not covered. Expense reporting must include itemized invoices with receipts, submitted within 45 days of incurring expenses. Unreported expenses or lack of proper documentation may result in non-reimbursement.