This policy applies to all Napo associates who may provide a meal to a healthcare professional.

Transcription

1 Business Meals with Healthcare Professionals Policy In order to provide an important and meaningful exchange of information and to respect healthcare professionals abilities to manage their schedules and provide patient care, Napo associates may present information during healthcare professionals working day, including mealtimes. In connection with such meaningful exchange of information or discussions, it is appropriate for occasional meals to be offered as a business courtesy to healthcare professionals as well as members of their staff in attendance. This Policy describes the different types of occasions where incorporating a business meal may be provided within the context of a business interaction. This policy applies to all Napo associates who may provide a meal to a healthcare professional. Limitations on meals to U.S.-licensed healthcare professionals apply even when the healthcare professional is located and/or working outside the U.S. (e.g., attending a medical conference in Central America). Meal Requirements Food and beverages are intended to be ancillary to a meaningful discussion and are permitted only when all of the following are met: A Napo associate or contracted speaker is facilitating a medically relevant discussion with a legitimate attendee. Food may not be provided or left with an HCP, Customer, or administrative staff in the absence of a relevant business discussion (i.e., no Dine and Dash events). This includes smaller items such as bagels, donuts, coffee, candy, as well as more significant items. The meal is intended for consumption by a legitimate attendee during the discussion. A legitimate attendee is one for whom the topic is professionally relevant (e.g. a nurse, medical assistant or office staff who assists the HCP with patient-related matters) and who directly benefits from Napo services (e.g. GIs, ID physicians, or HCPs in the call plan). Spouses, family members or friends of physicians are not authorized attendees and are never legitimate attendees for a meal. Food and beverages are in modest amounts (quantity and cost) as judged against the standards of the local area. Modest and reasonable cost of meals (inclusive of food, beverage, tax and gratuity), shall not exceed: o For meals in office or hospital: Maximum $25 per HCP Maximum $15 per non-hcp o Maximum $125 per person for meals during Speaker Programs In most instances the meal cost should be substantially below this maximum amount. Exceptions will be rare and must be pre-approved by the CFO, Compliance Officer, and Chief Commercial Officer. Any meal amount that deviates from these amounts without express written approval by the CFO (or other Finance department designee) may be subject to disciplinary action and will not be reimbursed until approved. Sign-in sheets must be utilized at every meal. See EXHIBIT A.

2 The meal is provided on no more than an occasional basis (i.e., a good general rule is one (1) time per quarter). The meal is not recreation/ entertainment and is not associated with recreation/ entertainment. The meal is provided in a venue and manner conducive to having a meaningful informational discussion. Examples of appropriate venues include: physician offices, hospital offices/ conference rooms/ on campus cafeterias, conference centers, business offices, and some restaurants for speaker programs (particularly those with a private room). Examples of inappropriate venues include: resorts, dinner cruises, bar areas, physician or representative s homes, sports facilities, comedy clubs, adult entertainment establishments, and casinos. No quid pro quo. The offering of a modest business-related meal must be in compliance with the Anti- Kickback Law and cannot be used in a manner that might suggest that the recipient was being bribed or improperly influenced. Under no circumstance should a meal be provided with the intent to induce referrals or in exchange for referrals. Business Meals must not be provided to government employees without the approval of the Chief Compliance Officer. In addition to IRS, Dept. of Justice, FBI and Dept. of Health and Human Services employees, government employees may also include decision-makers at state run hospitals and VA hospitals. Reporting and tracking of expenses associated with healthcare professionals will be captured by Finance in the expense tracking system (e.g. Concur). Napo associates must ensure that all expense-related information is submitted in support of reimbursement, which accurately and completely documents the amounts spent and the identity of the healthcare professionals receiving the meals. These expenses must be submitted through the tracking system as early as possible, but no later than 2 weeks after the expense, in order to maintain accurate data tracking capabilities. Napo associates are not permitted to use personal funds to pay for overages, or to split charges among Napo associates or to have the bill divided into multiple receipts. All meal expenses must be submitted and tracked for reporting purposes even if outside of the Policy limits. All receipts shall be itemized, per the Expense Policy. Alcoholic Beverages Napo Policy prohibits any of the following: Providing alcohol any time when the HCP is returning to treat patients Providing excessive quantities of alcohol (e.g., more than 2 drinks/ person maximum) Events and venues focused around the consumption of alcohol (e.g., happy hour or a wine tasting) Bringing alcoholic drinks into offices/hospitals

3 Expense Reporting It is the Napo associate s responsibility to timely (every 2 weeks) and accurately report meals and any other expenses with healthcare professionals. It is the responsibility of expense report approvers (e.g. managers) to ensure that expense reports submitted by their employees adhere to Company policies. Use clear, precise language to describe the business purpose of the expense. Identify and report the full name, title, credentials, NPI, and institution/office (if available) for all individuals present during business meals. Do not list attendees as a group (e.g. 5 physician practice ). Be sure to include yourself, Napo associates, healthcare professionals and office staff present. Include Remarks or Comments to explain any expenses that vary from Policy. The sign-in sheet is required for all expenses related to meals and shall be submitted along with receipts in Concur in order to receive reimbursement. Representatives must exercise due diligence in estimating the appropriate number of meals based on the anticipated number of legitimate attendees in advance. It is important to avoid vague, inaccurate or inappropriate language when describing the business reason for an expense. For example: Instead of using language such as Access food, be clear: Sales presentation on Mytesi during on-site hospital lunch ; and Use precise language to describe the purpose of the meeting. Instead of meeting with physician, use meeting with physician regarding use of Mytesi. All meal limits are set in order to define the maximum cost for a modest meal. Employees are required to adhere to these limits. If, on rare occasions and despite your best efforts, the allowable cost per person is exceeded, use the comments section on your expense report form to explain, and always advise your manager prior to submitting the expense. As a manager, if employees advise you or you discover in your review of expense reports that they have incurred excess costs, you must provide coaching and/or corrective action and document the action taken, including the date it occurred, in the comment section of the expense report. If employees repeatedly exceed limits, even after coaching, managers must report the conduct to the Compliance Officer or the CFO. If a restaurant requires a minimum headcount, and for example, five people are scheduled to attend, but only two people attend, only report individuals who actually attended the meal or event. Additional charges attributed to no shows should be explained in the Remarks or Comments section but should not increase the value of the meal for those that attended. Meals Provided in the Office or Hospital Generally, meals may only be provided in the Office or Hospital setting and must comply with the meal requirements above. Pre-approval by Finance or Compliance is not required.

4 Meals Provided Out of the Office or Hospital Certain Napo associates (a member of the executive team or the National Sales Director) may provide an occasional meal to healthcare professionals out of the office or hospital setting. An example would include the Chief Commercial Officer taking a physician to a restaurant, in conjunction with an industry conference, to conduct appropriate business. No other Napo Sales employees may accompany the aforementioned Napo associate during this meal. All other requirements of this policy still apply. Meals Provided during Speaker Programs, or Out of the Office Healthcare professionals participate in company-sponsored speaker programs in order to help educate and inform other healthcare professionals. Speaker programs may include modest business meals offered to attendees and may occur during any meal. For more information about Speaker Programs, please refer to the Speaker Program Policy. Meals provided at speaker programs are treated the same and must comply with the requirements above. Speaker led event attendees may take home any portion of partially consumed food or food served to them but not consumed. Courses not yet served may not be taken home. Napo associates planning to conduct an approved speaker program, in compliance with the Speaker Program Policy, are required to follow the protocol described within the Speaker Program Policy. Responsibilities The National Sales Manager and Regional Business Director are responsible for making sure that all business meals are in compliance with this Policy. The CFO and Compliance Officer will periodically monitor activities under this policy. Exceptions to this Policy can only be authorized in writing by the CFO (or other Finance department designee), and the Compliance Officer (or designee). Documentation The CFO (or other Finance department designee) and the Compliance Officer (or designee) are responsible for the day-to-day operation of this Policy and for maintaining appropriate documentation. Assessment This Policy and the processes herein are reviewed periodically as dictated by changing laws, rules, regulations and other appropriate guidelines.

5 EXHIBIT A