Agenda for today  Schedule for tours  Contracts

The Top 10 Things I Learned the Hard Way… to Put in My Contracts

Things I am NOT~  Lawyer or paralegal  Advocate of one-sided agreements OR interested in adversarial relationships

What is a contract?  Agreement between two or more competent parties  Offer is made and accepted  Each party benefits  Bind each party to promise – and action to take if promise not met  Like insurance – for both good and BAD!

Three Tips

Contract Tip #1  Start at the beginning Info about group/meeting needs Specifications Concessions Contract requirements of organization  Stuff the lawyers want  Deal-breakers

Contract Tip #2 John’s Golden Rule of Agreements If you ask for something from the other side before the contract is signed it's called ”Negotiating“ If you ask the other side for something after the contract is signed it's called ”Begging” John Foster, Esq., CHME Meetings Industry Attorney

Contract Tip #3  What is the value of this contract to EACH?  Understand the business of EACH Planner: Why are we having this meeting happening? What is at risk? What is expected return? Supplier: What drives the business?

10 Things…

”We aren’t holding the room for you then.” # 10Specific location names with specific times DateTimeRoom NameDescription April 14, :00pm – 5:00pm Super Duper Ballroom Set-up April 15, 20125:00pm – 9:00pm Super Duper Ballroom Performance April 15, 20129:00pm – 11:59pm Super Duper Ballroom Strike/Load out

”I called and the hotel says the block is gone.” # 9 Sleeping Rooms  reservation method  listing in hotel’s computer for “Group Name”  type of rooms – suites, doubles, kings  when rates apply/don’t apply/cut-off  always ask about honoring rates outside the dates!  use specific dates and times – August 31, 2010 at 5:00pm ET vs. 30 days prior to meeting

“Oracle is also in house – heard of them?” # 8Areas of “sensitivity”  noise  construction  competitors  VIP needs  data privacy  food donations  accessibility issues

“You may load in yourself, but the freight elevator is union.” # 7 Additional charges/fees/taxes  newspapers/safe/resort fees/pool/spa  set-up fees  taxes  gratuities  overtime  staffing

“When I opened the mail today, I discovered we have an accruing finance charge on a $100,000 bill.” # 6Billing  timing  What happens if payment doesn’t happen?

“You can do that, but it is not in your contract.” # 5Spec change vs. contract change

“Congratulations – consider yourself acquired.” # 4What happens if…we CANCEL  covers both  sliding scales based on timing  damages clearly spelled out

“Did someone say flood, flu or some other sign of the apocalypse.” # 3What happens if…we CAN’T  Force Majeure (improbable/inadvisable)  re-booking/re-sale options  CAUTION! There is a war going on!

“You don’t have an attrition clause in your contract.” # 2What happens if…there is ATTRITION  show the “math” ($$ spelled out) sleeping rooms (cumulative) meeting space food & beverage minimums

“Who would have thought this could happen?” # 1We are not fortune-tellers, or are we?

In Summary… 1) Start at the beginning  details, details, details  special requirements of your organization 2) John Foster’s Golden Rule  prior to contract = Negotiating  after contract = Begging 3) Know THE business

Dralion Case Study

Next week  Holiday Inn Tour