ITF

The contract of employment of the President is established and agreed by the Board of Directors. The Board delegates the annual performance review of the President's contract to the Remuneration Committee, excluding the President. The contract of employment of the Chief Operating Offi cer (COO) is established and agreed by the President and is presented to the Remuneration Committee for fi nal remuneration approval. The Remuneration Committee receives the COO's salary for review and also receives the Senior Executive pay awards for review plus receives high-level remuneration data for the remainder of the organisation and reviews proposed increases for consistency and fairness. The Remuneration Committee reports to the fi rst Board meeting of the year on the percentages applied during the previous annual salary and bonus review, in line with internal and external factors. The Remuneration Committee agrees travel allowances for President and COO. The Remuneration Committee's Board members led by an 'acting chair' will conduct two Super Executive Sessions at the March and November Board meetings: • March: Review and fi nalise the President's annual objectives for the year • November: The Super Executive Session will discuss the President's performance against the objectives and determine the President's bonus for the current year and salary for the next year. The remaining Directors receive no remuneration for their services, but are reimbursed for expenses incurred in carrying out their duties. Decisions and Appeals The ITF has appeal procedures, which are fully detailed in the Constitution and the Regulations for the individual Competitions. Risk Management The ITF is exposed to a variety of risk factors which are assessed on a regular basis. Policies to minimise the risks include insurance cover, currency hedging, long term commercial contracts and the prudent and limited utilisation of fi nancial reserves to maintain programmes. The Board places great emphasis on its risk management policies and internal controls. It receives regular reports on risk management issues from management, including a summary risk register covering all ITF activity. The detailed risk register is reviewed by the Finance & Audit Committee and other Committees review the sections of the detailed risk register relevant to their activity. The ITF also uses external consultants to advise on potential risks and security at ITF events. Ethical Standards All Board and Committee members, directors, managers and employees are expected to act with the utmost integrity and objectivity, striving at all times to enhance the reputation and performance of the ITF. All Board members are required to declare any confl ict of interest, perceived or otherwise, they may have in matters before the Board or Committee, not to vote or participate in the debate on matters in which they have a confl ict, to absent themselves from the meeting during the discussion and to abstain from voting on that issue. CORPORATE GOVERNANCE I 41

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