CompUSA 2015 Annual Report Download - page 144

2. ConflictsofInterest:
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CompanyRepresentativesarerequiredtoavoidconflictsofinterest,appearancesofconflictsofinterestandpotentialconflictsofinterest.A“conflictofinterest”
occurswhenanindividual’sprivateinterestinterferesinanyway–orevenappearstointerfere-withtheinterestsoftheCompany.Aconflictsituationcanarise
whenaCompanyRepresentativetakesactionsorhasintereststhatmaymakeitdifficulttoperformhisorherCompanyworkobjectivelyandeffectively.Conflicts
ofinterestalsoarisewhenaCompanyRepresentative,oramemberofhisorherfamily,receivesimproperpersonalbenefitsasaresultofhisorherpositioninthe
CompanyorhasapersonalinterestinatransactioninvolvingtheCompany(beyondmerelybeingaCompanyRepresentative).CompanyRepresentativesshallnot
allowanyconsiderationsuchasthereceiptofgiftsorfinancialinterestsinotherbusinessesorpersonalorfamilyrelationshipstointerferewiththeindependent
exercise of his or her business judgment and work activities to the benefit of the Company. Company Representatives should not have significant ownership
interestsin,orpositionswith,orfinancialorotherinvolvementswith,theCompany’svendors,customers,orotherthirdpartiesdoingbusinesswiththeCompany,
withoutpriorwrittendisclosuretotheCompanyandapprovalbytheCompany’sBoardofDirectorsoraCommitteeoftheBoard.CompanyRepresentativesshall
havenomorethanaonepercent(1%)ownershipinterestinanypubliccompanythatdirectlycompeteswiththeCompany.Loansto,orguaranteesofobligations
of, Company Representatives are prohibited unless permitted by law and authorized by the Board of Directors or a Committee designated by the Board.  If a
CompanyRepresentativebecomesawareofapotentialconflictofinterestheorshemustcommunicatesuchpotentialconflictofinteresttotheCompany.
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3. Gifts,IncentiveAwardsandRelationshipswithCustomers,SuppliersandServiceProviders:
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A “gift” includes any tangible and intangible payment or gratuity such as cash, products, meals, or participation in or tickets to hospitality programs, vendor
sponsoredeventsorconferencesinvolvingcostsofmorethan$1,000(includingifpaidforbyavendororthroughMDFmonies)(“HospitalityEvents”).Agift,
whichisbyitselfnotof“excessivevalue”maybe,whenaggregatedwithothergiftsfromthesamesource,agiftthatisofexcessivevalue.
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Nogiftmaybeoffered orprovidedto anycorporateorindividual customerorpotentialcustomer unlessthegiftis notcashor cashequivalentandalsonotof
excessivevalueandismadeforbusinesspurposesoftheCompany.Nogiftofanyvaluemaybeofferedormadetoanygovernmentcustomer,governmentofficial
orindividualagentofa government customer.  No gift, gratuity, incentivepaymentorawardwhether in the form of cash or its equivalent,personal property,
rebatesorpointsawardedtowardstheentitlementtoanyoftheforegoing(an“IncentiveAward”)maybespecificallyofferedorprovidedtoanypurchasingagent
orotheremployeeofanycorporateorgovernmentcustomer(a“PurchasingAgent”)withouttheknowledgeofsuchcustomer’smanagement.Thesolicitationof
giftsofanytypebyanemployeeisprohibited.Ifagiftisofferedtoanemployee,itmustbeconsideredseparatelydependingonwhethersuchgiftis(a)cashor
cashequivalent(b)non-cash(includingproducts,travel,entertainment,HospitalityEvents,meals,personalservices,etc.)or(c)giftcards,lotteries,raffles,funded
couponsorsimilarprogramsprovidedbythirdpartyvendorspursuanttomarketingprogramsapprovedbytheCompany.Thereceiptofcashorcashequivalent
gifts(otherthanunderapprovedgiftcard,lottery,raffles,fundedcouponorsimilarprograms)ofanyvalueisabsolutelyprohibitedandmustberefusedbythe
employeeorsurrenderedtoEricLerner,theCompany’sChiefComplianceOfficer.Thereceiptofanon-cashgiftorpermittedcashequivalentgiftispermitted
onlyif(a)thegiftisnotofexcessivevalue,(b)thegiftcannotbeconstruedasabribe,payofforimproperinducementand(c)thegiftisforabusinesspurposeof
theCompany.Non-cashgiftsundervendorincentiveprograms,aswellasgiftcards,fundedcoupons,lotteries,raffles,orsimilarprogramsundervendorincentive
programsareonlypermittedifmadepursuanttoapprovedmarketingprogramswiththeCompany’svendors,andotherwisepursuanttotheCompany’sVendor
IncentiveProgramPolicy.HospitalityEventsalsomustbeapprovedpursuanttotheVendorIncentiveProgramPolicy.Inconsideringwhetheranon-cashgiftisof
“excessivevalue”theCompanywillconsider,amongotherthings,thevalueofthenon-cashgiftaswellasthejobresponsibilitiesandannualcompensationofthe
giftrecipient.
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