IBEW LOCAL 2139 RATIFICATION MEETING

Transcription

1 IBEW LOCAL 2139 RATIFICATION MEETING 2014 Bargaining February 14,

2 Purpose of Meeting Areas of Proposed Changes Commission Plan Pensions Vacation Premium Eliminate Success Sharing Market Assignment Car Allowance-Work Days Only Vacation/Holidays- PTO 2

3 Article Deletions Articles Removed Delete Article 23 Directory Employment Transition Program Delete Article 24 Training/Retraining (Tuition Aid) Delete Article 25 Reassignment Pay Protection Plan Delete Article 33 Hiring Consideration of Former Employees

4 Market Assignment Market Assignment Article 15.4 The Company maintains the right to determine the sales channels used to contact customers, the assignment of personnel to sales channels and the assignment, reassignment, or movement of accounts between sales channels or between individuals within sales channels.. However, the Company shall notify the Union as far in advance as possible of its decisions and will consider input from the Union that is provided in a timely manner. It is not the intent of the Company to use assignment practices, policies or procedures to negatively impact the earnings opportunities of its representatives, though changes in market assignment may have an impact on compensation. The Company's decisions and implementation of any assignment, practices, policies and procedures will not be subject to grievance or arbitration under the terms of Articles 26 of this agreement. The only exceptions will be decisions made with the intent solely to negatively impact an which impact an individual's compensation or the assignment of personnel to particular campaigns. No other provisions of this or any other agreement shall supersede the Company's authority to make final market assignment and implementation decisions. 4

5 Market Assignment Initial Market Assignment - Allocation Article Assignment of Accounts Key Account Executives, Advertising Sales Representatives (Premise), and Directory Sales Representatives (Telephone): It is the intent of the parties to assign accounts at the time of initial market assignment to provide to all sales representatives the opportunity for 100% follow yourself. The company will do so through the mechanized market assignment process The parties agree that there will be times when 100% follow yourself will not be possible, included, but not limited to, accounts productivity, new sales employees added to the workforce, employees returning form a Leave of Absence, Customer Service issues, too many accounts etc. In these situations arising outside of the above circumstances, the Company shall notify the union and parties agree to meet and discuss such circumstances upon request by the Union. the proper resolution prior to the market assignment Exception to section is when a sales representative transfer to another office/district and a new market needs to be created as described in The Company shall have the discretion to keep sales made by a particular branch within the branch that made the sale, as opposed to being re-assigned to another branch as a result of the HBD. Such decisions shall not be intended to negatively impact reps and the Company agrees to discuss any situations where reps perceive that they were so impacted.

6 Management Rights Clause Management Rights Clause Article 6 The Union recognizes the right of the Company to operate and manage its business consistent with the needs of the business. Needs of the business, it shall be construed to mean any and all matters decisions which, in the Company s opinion, are necessary to: assure the efficient and economical operation of the business and to protect the business, including, but not limited to decisions regarding its property, including the kind, type, and location of facilities; the health and safety of employees; staffing levels; and the services and/or products sold by the bargaining unit and the methods/operational processes to do so. The Company shall also have the right to use resellers, national retailers, and/or third party sales agents/contractors to sell its digital products, so long as no Force Reductions of bargaining unit members shall be directly attributable to such use. In all cases, the Company shall determine the needs of the business and its determination shall be final.

7 Daily Sales Average Calculation Calculation of DSA Article When an employee has been assigned to a particular wage schedule for the twenty-six (26) full payroll periods immediately preceding the payroll period in which the Daily Sales Average payment begins.. The advance shall be calculated on the employee s average Commissions, PTO; Holidays, excluding time off for Religious Observance; Excused Work Days, Benefits, Legal appearance at the Company s behalf if approved by the Company, Special Projects authorized by the Vice- President of Sales; Military Emergency Duty; Jury Duty; Target Earnings;, less any applicable Commission Adjustments as defined in this Agreement. 7

8 Compensation - DSA DSA Plus Base Article Daily Sales Average plus Base Salary shall constitute full compensation for: Holidays, excluding time off for Religious Observance; Excused Work Time; Special projects (The Vice President of Sales must authorized such projects); Jury Duty; Legal appearance at the Company s behalf if approved by Company; Military Emergency Duty, Market Assignment delayed for greater than four weeks from the original start date of the D190 schedule and Common Interest Forum meetings. Daily Sales Average shall be reduced by 40% when paying under the terms of the Company s Short Term Disability Plans. 8

9 IYP - PCP IYP PCP Article For internet contract that are early downed before PCP and before next cycle Market assignment, the prospect code for the following year will reflect the account as being a NON AD, provided the customer has not contracted with the. company for any other products, including print. Article For Internet contracts that are early downed before PCP date and before next cycle Market Assignment, the BOTS revenue values associated with these contracts will be assigned to a sales representative as part of their next cycle Market Assignment responsibility. The BOTS revenue assigned for the following cycle will be normalized to the actual monthly contract value. 9

10 Article 12.5 Temporary Workers Article 13.2 The Company will not use the services of temporary workers who are not Company employees to perform bargaining unit work for longer three (3) consecutive months without Union concurrence. The Company will inform the Union of all temporary workers who are performing bargaining unit work and who are not Company employees. The list will be updated every month and will include time arrived, type of work being performed and expected departure date.

11 Reimbursement of Expenses Vouchers Article Employees incurring an expense under section 15.6 will be required to submit a voucher for reimbursement of their expenses within sixty (60) calendar days of the incurred expense.. If the employee does not submit a voucher within sixty (60) calendar days, the Company may not reimburse the employee, as determined by the Company and will be based on the unique circumstances of each individual case, such as a Disability case in which the employee was unable to submit a timely voucher.

12 Select Time Select Time Article Directory Sales Representatives will be allowed to use Selectime. in those periods Call center start times shall be 7:30 a.m., 8:00 a.m. or 8:30 a.m. The time periods listed in this section are the only ones available to these employees. 12

13 DSA For Delayed Market Assignment Delay of Market Article Sales Representatives will be paid DSA for Market Assignment delayed for greater than four weeks from the original start date of the D190 schedule.

14 Targeted DSA Targeted DSA Meetings The Company agrees to pay one day of targeted earnings for every 8 hours of meetings in a given pay period. The following examples are exempt and will not be counted towards the 8 hour meeting time-frame: Knowledge is Power Meetings (Reps not performing to minimum standards) Daily 10 minute stand up rallies Scheduled call out times One-on-one continuation training One-on-one manager performance reviews Example of meeting time would be Monday Morning, 40/40, Rollouts

15 Debit Protection $5,000 Cap Debit Protection Eliminated No Ceiling Limit Article To minimize the impact of possible debit situations, sales. representatives working in wage schedules P-1, M-1, T-1 and K-1, as well as Digital Sales Executives (DSE) shall have the opportunity to select a percentage of their commission earnings to be protected on a payroll period basis, by signing a Commission Protection Election Form. The percentage eligible for protection is 0, 33, 50, 65, or 75%. After the percentage is selected, no commission debit will result in commission earnings of less than the selected percentage A representative may change the selected percentage on a quarterly basis. 15

16 Automobile Allowance Car Allowance Article Employees in the Advertising Sales Representative, Account Executive-New Media, Digital Sales Executives and Key Account Executive title. using personal cars in accordance with section shall be reimbursed a flat-rate amount of $54.00 per day for vehicles less than or equal to sixty (60) months old, from January of the model year, otherwise a flat-rate amount of $33.50 per day, to be paid for each day worked, including which shall exclude vacations, PTO, excused work days and holidays, and when unless an employee uses a Company car or Company provided rental car in place of the employee s personal car. With prior management approval employees will be reimbursed at their flat-rate value, if using their personal automobile for customer contacts on a Saturday or Sunday.

17 Article Compensation New Hires New Article In an effort to hire the most qualified sales representatives, YP shall have discretion over the starting rates for Sales Reps with demonstrable and relevant sales experience, skills, and/or education. Such hires may be employed at a starting base annualized salary of up to $60,000, with the specific starting amount to be determined by YP based upon relevant sales experience, skills, and/or education. Such base annualized salary shall decline over a period of time not to exceed eighteen (18) months, to an annualized rate equal to the scheduled rate for the position. Such increased base salaries shall be exceptions only, to be reviewed and approved by senior sales leadership and Labor Relations.

18 DSA Reimbursement-Cellular Cellular Reimbursement Article Except where specified herein employees will be reimbursed for business expenses in accordance with the AT&TYP Global Expense Policy; and will be reimbursed for cellular phone service at reasonable rates, in accordance with the AT&T Equipment & Company-Use Wireless Policy, in effect as of the effective date of this agreement to be determined by the Company. At the commencement of this Agreement, cellular service shall be reimbursed at the flat rate of $55 per month, though it is agreed and understood that this amount may be increased or decreased over the term of the agreement. Only proof of cellular service for business purposes shall be necessary for reimbursement.

19 Holidays Holidays The following holidays are authorized and shall be observed in 2015 and subsequent years, unless otherwise changed as provided below: New Year's Day Labor Day January 2 Martin Luther King, Jr. Day Presidents Day Thanksgiving Day Memorial Day Friday After Thanksgiving Day Independence Day Christmas Day In the event the Company desires to change any of the above holidays, it shall notify the Union prior to November 1 of each year. No less than a total of ten (10) authorized and floating holidays shall be provided in each calendar year. Revise Articles 18.4 and 18.5 as follows: Authorized holidays falling on a Saturday or Sunday shall be observed on the alternate days designated by the Company, which shall be either a Friday or a Monday. The Company shall notify the Union of such alternate days on or before November 1 of the year proceeding the year in which the holidays will occur. following Monday and holiday practices shall apply in all respects the same as for holidays which fall on Monday; the Sunday shall be considered the same as any other Sunday.

20 PTO Paid Time Off Article 19 This Article applies to all full-time and part-time Employees. The Company shall provide eligible employees paid time off (PTO), for leisure time, to cover absences for vacations, personal activities and for any other reason not covered by a leave of absence under this Agreement. Sales employees shall be entitled to take up to 32 hours of their accrued PTO as Excused Work Time in 4-hour increments, subject to the provisions of the Excused Work Time set forth below. Non-sales Employees shall be entitled to take up to 32 hours of their accrued PTO as Excused Work Time in 2-hour increments, subject to the provisions of the Excused Work Time set forth below. PTO is based on the employee s base rate of pay in effect when the day off is taken or paid out, plus applicable DSA. Full time employees are eligible to accrue PTO in accordance with the following schedule: Years of Service Annual Accrual Eligibility New Hire to 6 months 5 days/40 hours > 6 months to 7 years 14 days/112 hours > 7 years to 15 years 19 days/152 hours > 15 years to 25 years 24 days/192 hours > 25 years 32 days/256 hours Employees shall accrue PTO on a pay period basis ( Pay Period Accrual ). To determine the pay period accrual rate, divide the annual accrual eligibility by 26, as follows: Years of Service Annual Accrual Eligibility Per Pay Period Accrual New Hire to 6 months 5 days/40 hours 1.54 hours > 6 months to 7 years 14 days/112 hours 4.31 hours > 7 years to 15 years 19 days/152 hours 5.85 hours > 15 years to 25 years 24 days/192 hours 7.39 hours > 25 years 32 days/256 hours 9.85 hours The PTO balance reported in the ADP system reflects PTO time that may be scheduled and taken subject to team leader approval. Team members will begin accruing hours at the next highest level during the pay period in which they reach the service milestone.

21 PTO Continued Paid Time Off Article 19 Employees are subject to a maximum cap of 150% of their Annual Accrual Eligibility. If the total available PTO balance is 150% of the number of PTO days a team member can accrue on an annual basis, the accruals will stop until the total PTO balance is drawn down to less than 150%. Employees shall be entitled to carry over accrued but unused PTO from calendar year to calendar year, subject to the maximum accrual limits in this paragraph. Any accrued but unused PTO shall be paid out following termination of employment. Employees may not accrue PTO during unpaid leaves of absence or other periods of inactive service. For the purposes of PTO selection, a PTO Year is January 1 of the current calendar year to the end of December that calendar year. Religious Observance - In addition to the PTO referenced in this Article, employees with six (6) months or more of service shall receive 3 additional hours of paid time off per calendar year, for the purpose of religious observance. Religious Observation is not PTO time.

22 PTO Continued Paid Time Off Article 19 An employee who is leaving the Company will be paid in lieu of all PTO vacation he or she has accrued but has not used. Employees who are service pension eligible and retire from the business with a service pension will be paid out their unused PTO as though it was granted based on the number of years of service credit and not based on the accrual of vacation language.

23 Layoff Layoff Allowance - Article A regular employee, employed as of [ratification date of this agreement], who is to be laid-off shall be paid a lay-off allowance determined as to the amount by their net credited service and basic weekly wage rate at the time of leaving the service, in accordance with the table below except those in the title classification Key Account Executive, Advertising Sales Representative and Directory Sales Representative: Number of Weeks Current Basic Wage Rate Years of Net Credited Service (excludes all differentials) Less than 6 months 0 6 months but less than 2 years 1 2 years but less than 3 years 2 3 years but less than 4 years 3 4 years but less than 5 years 4 5 years but less than 6 years 6 6 years but less than 7 years 8 7 years but less than 8 years 10 8 years but less than 9 years 12 9 years but less than 10 years years but less than 11 years years but less than 12 years years but less than 13 years years but less than 14 years years but less than 15 years years but less than 16 years years but less than 17 years years but less than 18 years years but less than 19 years years but less than 20 years years but less than 21 years 60

24 Layoff Continued Layoff Allowance - Article For employees with twenty-one (21) or more years of net credited service as of the date of ratification of this Agreement, an additional four (4) weeks' pay at the applicable rate will be made for each additional completed year of service. For regular employees in the title Key Account Executive, Advertising Sales Representative and Directory Sales Representative the lay-off allowance will be determined by applying their "Years of Net Credited Service" to the above table and multiplying the resulting number of weeks" by their average weekly earnings (base pay plus average daily commissions). A regular employee, employed after [ratification date of this agreement] who is to be laid-off shall be paid a lay-off allowance determined as to the amount by their net credited service and basic weekly wage rate at the time of leaving the service, in accordance with YP Severance Guidelines in effect at the time of the layoff. Presently, such terms provide for severance payment equivalent to two (2) weeks per year of service, up to a maximum of twenty-six (26) weeks. In no event shall an employee with at least one year of service receive less than four (4) weeks of severance. Any vacation payments to which the employee is eligible will be made in addition to the layoff allowance. Any employee who is not eligible for a service pension and who is laid-off shall receive extended medical, vision and dental coverage as follows: Less than 5 years net credited service, 4 months 5 years or more net credited service, 6 months

25 Clerical /Support -Compensation Clerical/Support Eliminate Success Sharing Maintain - Annual Lump Sum Payment 1.25% based employee s weekly rate annualized (52 weeks) paid on or before the second paycheck in August. Base increase at Ratification 2.5% August 10, % August 8, % 25

26 Sales-Compensation Proposed YP Compensation Plan Premise, Telephone, KEY New Media/Digital Sale Executives 26

27 Proposed Compensation Plan by YP for Premise, Telephone, KEY, New Media, Digital Sales Executive YP Plan Overview Elements Account Commission Structure Account Commission Timing Monthly Commission Page 27

28 YP Proposed Plan Overview Commission Timing As Earned plan better aligned with job responsibilities, and Transition Pay negates any negative cash flow impact As earned for Premise, Key, and New Media As Earned Commission Table Event Pay % At Point of Sale 40% If < 90 Days Due: When First NISD Bills 15% 120 Days from Bill Start 30% 240 Days from Bill Start 15% The full commission for the canvass year is calculated each time an commissionable event occurs Days due is at the total customer level and includes all activity for that customer (even if sold by other reps) Any already earned payments are trued up based on the new total commission amount o Ex. If earn more commission for a later add-on sale and account has already billed on any NISD for that cycle, you would earn 55% at the point of sale date for the add l sale Once a Days Due milestone is reached and paid, it can t be taken back if account later goes beyond 90 days past due. Any missed milestones will be paid at any later points where the days due goes under 90 days. The event status is checked daily. Includes a transition plan of add l fixed pay for year one and for new hires. This transition pay offsets any negative cash flow impact to the rep Implementing a new commission system to help the reps manage their accounts (see next page) Page 28

29 YP Plan Overview Commission Structure Simplified structure pays one rate per account Example of As Earned Commission Rates Acct Level Comm Rate Sheet NISD/BOTS NISD Rate 0% - 60% 23% 60% - 85% 29% 85% - 100% 35% 100% - 120% 41% >120% 47% New 200% Recanvass 65% Each account is paid based on cumulative for the canvass year NISD / BOTS result (based on BOTS handled) Plan pays the rate matching the account result times the NISD revenue Commission is trued up on each account as additional commissionable events occur (like today) Telesales includes a $10 Retention Reward for each customer retained with some spend Other Information: New rate is paid only for unique new customers (like today) Rates are for illustrative purposes - Note each region / channel would have a unique set of rates Page 29

30 YP Plan Overview Rep Monthly Commission New element uncaps earnings and improves correlation between a rep s earnings and results Example of Monthly Commission Rates Monthly Commissions Rate Sheet % of NISD NISD/BOTS Paid -9% to -5% 15% -5.01% to -1% 25% -1.01% to 3% 35% 3.01% to 7% 45% >7% 55% Rates are for illustrative purposes - Note each channel would have a unique set of rates Plan pays each month based on rep s overall NISD / BOTS % per the payment scale. The payout percentage is applied to closed NISD to calculate the amount to pay. The plan is for the calendar year, and runs Feb-Jan. The payment amount is trued up each month based on total YTD results. Eliminates the need for non-pay chargebacks Other Information: Target is for this element to represent 15%-20% of total target comp. This plan element, along with Incentives, is considered a Flexible Plan Element that can be modified over the course of the contract as long as certain payout and timing conditions are met. Page 30

31 YP Modeling Methodology Used Pull 2013 canvass level data at account level Determine full year reps based on assignment and time worked Use Dec-13 Average Earnings reports as baseline earnings Adjusted Avg Earnings for commission overpayments and any nonrecurring payments Not an exact match due to timing differences between canvass and calendar year Run proposed plan through AVCO model to calculate earnings Present output on rep modeling Excel file Shows results and comparisons by reps Allows what-if calculation on results changes Page 31

32 Compensation - All Channels Summary of Components by Channel New Media /Digital Sales Executive As Earned Commissions (AEC) Flat Rate for NISD Flat Rate for New Monthly Commission (MC) Premise and KEY As Earned Commissions (AEC) Monthly Commissions (MC) Telephone NBA Commissions (paid up front same as today) Monthly Commissions (MC) Retention Reward 32

33 AEC & MC Milestones for As Earned Commissions (AEC) Timeline - Monthly Commissions (MC) 33

34 Commission Plan Monthly Commissions (MC) The monthly commission cycle shall begin on February 1st and end on January 31st of the calendar year. The monthly commission is paid based on results in the system as of the last day of each month and shall be paid in the payroll period in which the last day of the month falls. The monthly commission includes all sales results posting for the year-todate regardless of cycle year, product, etc. Payout of Monthly Commissions earned above the cap for remaining commissions will paid out at the end of the annual cycle, following final true-up. 34

35 Commission Plan Continued Monthly Commissions (MC) The payment amount is trued up each month based on total year-to-date results. If at the end of the plan year, a rep has been over paid, final true-up will occur, and the amount to be debited or paid shall be determined. If a debit is required, it will be recovered pursuant to normal processes, which may include the debit protection provisions of this agreement. Such true-up payments or debits will occur on the first MC pay date following the beginning of the new plan year. 35

36 Sales Compensation-MC Compensation Timeline 36

37 MC Target & Assurances MC Targets & Assurances The purpose of the Monthly Commissions ( MC ) element of the Sales Compensation plan is to focus selling behaviors on net revenue results by account. It is intended to be a substantial component of sales representatives compensation going forward and YP is confident that it will drive the intended sales performance. However, given that it is a new compensation approach for our business and the results are not guaranteed, YP agrees that it shall pay representatives at least pursuant to the MC and cash sales incentives payout assurances detailed below. In exchange for providing the following assurances, YP shall have the ability during the term of the contract to revise elements of the MC ( NISD/BOTS and/or % of NISD Paid ) and any other cash incentives, in order to ensure that the Company is achieving its sales goals. It is expressly understood that the NISD/BOTS and % of NISD Paid elements of the MC shall not be increased or decreased more than one time per 12 month period, per channel, 37

38 MC Target & Assurances Continued MC Targets & Assurances and only at the start of a new commission plan year, unless the Company determines that an unscheduled change is necessary to increase rates in order to ensure that below average guarantees are met. Further, it is agreed and understood that no changes to the MC/Incentive plans shall be made during the term of this contract that are projected to pay out less than 100% of the target average annual MC pay listed below ($23,000 for Key, $19,000 for Premise, and $6,000 for Telephone), by channel and the targets shall not be changed during the life of this agreement. In the event that the Company determines that elements of the MC need to be changed during the term of the contract, it shall notify the Union at least 15 days in advance of the implementation of such changes, in order to explain the reasons for and impacts of such changes, and to allow the Union an opportunity to discuss potential alternatives. Following such discussions, the Company shall have the right to implement the announced 38 changes.

39 MC Target & Assurances by Channel MC Targets & Assurances by Channel Key Account Executives The target average annual pay earned from MC and cash incentives for Key Reps is $23,000. After one Pan Year following implementation of the plan, if MC and cash incentives have not averaged at least 91% of the $23,000 target (or $20,930) for full-year Key Reps, distinct plan elements (likely cash incentives) will need to be utilized to make up the difference within three months of the Plan Year end date. Advertising Sales Representatives - Premise The target average annual pay earned from MC and cash incentives for Premise Reps is $19,000. After one Plan Year following implementation of the plan, if MC and cash incentives have not averaged at least 91% of the $19,000 target (or $17, 290 for full-year Premise Reps, distinct plan elements (likely cash incentives) will need to be utilized to make up the difference within three months of the Plan Year end date. 39

40 MC Target & Assurances by Channel Continued MC Targets & Assurances by Channel Telephone The target average annual pay earned from MC and cash incentives for Telephone Sales Reps is $6,000. After one Plan Year following implementation of the plan, if MC and cash incentives have not averaged at least 91% of the $6,000 target (or $5,460) for full-year Telephone Sales Reps, distinct plan elements (likely cash incentives) will need to be utilized to make up the difference within three months of the Plan Year end date. 40

41 As Earned Commissions - Milestones Milestone Progression - As Earned Commission (AEC) Milestone 1: 50% of the total commission due will be paid in the pay period in which the sale is closed (query free and retired in the system). Milestone 2: 20% of the total commission due will be paid in the pay period once the Billing Milestone Date (BMD) is met. BMDs are at the customer level. The customer must be 90 days or less past due on their account at BMD in order for this payment to be released. Milestone 3: 20% of the total commission due will be paid if the customer is 90 days or less past due on their total account on the pay period end that falls after 120 days have elapsed from the Billing Milestone Date Milestone 4: The final 10% of the total commissions due will be paid if the customer is 90 days or less past due on their total account 240 days after the Billing Milestone Date. 41

42 As Earned Commissions Milestones Continued Milestone Progression - As Earned Commission (AEC) Billing Milestone Date (BMD) The date any item that is part of the NISD for the current year canvass/cycle is considered ready to bill. This is the earlier of the Internet Live Date or the Effective Bill Date. This date becomes the baseline to calculate future milestone dates for that customer. This date will be locked and never move to a later date as long as the item actually bills on that date (i.e., does not wash ). This date could move earlier if an early-up billing item was sold as subsequent activity. as year. The total commission will continue to recalculate based on subsequent Point of Sale Commission (POS) The term is used to designate the commission paid at the point of the sale. As Earned Commission (AEC) The term used to designate the commissions paid as milestones are met. Subsequent Activity Any sales activity after the initial account close that results in a change to BOTS or NISD and therefore the Total Commission due. This transaction can be representative or system generated. Total Commission The total commission earned on an account at any point during the canvas year. The total commission will continue to recalculate based on subsequent activity. All commissions are advanced in accordance with commission schedules defined in Section x.x, except where they are earned under the As Earned provisions of this Agreement, upon attainment of Billing Milestone Dates.. NOTE: As Earned (AEC) commissions are still subject to proration and normalization. 42

43 As Earned Commissions Milestones Continued Milestone Progression - As Earned Commission (AEC) Payments of commissions for Key Account Representatives, Advertising Sales Representatives, New Media Representatives, and Digital Sales Representatives will be a combination of a.) 50% advanced biweekly and b.) 50% deferred, based on milestones. Any subsequent activity on an account (including the determination of the actual start date) that occurs after the payment of any Milestone will result in the entire total commissions being recalculated. Subsequent payments or commissions adjustments occur biweekly and as long as activity occurs on the account, including, but not limited to errors, account associations, etc. In the event the Company agrees to place next issue advertising for a customer who does not meet normal requirements (i.e., a waiver is given to a customer who is more than 90 days past due) the rep will be entitled to receive the next commission earned under the normal milestone plan at the point next issue advertising starts billing). Employees who are service pension eligible and retire from the business will be paid for all milestones for accounts that are closed but have not yet reached such milestones. 43

44 As Earned Commissions Milestones Continued Milestone Progression - As Earned Commission (AEC) Once an account reaches 540 days from the Billing Milestone Date, any unreleased commissions are forfeited. Sales reps must be employed at the time a Milestone is reached in order to earn and be paid any commission. No such commissions shall be deemed earned, nor further BMDs shall be attained, following a Sales rep s final date of employment. For a period of 100 days following an employee s final date of employment, account activity shall be processed for the purpose of chargebacks and payment of Bi-weekly commissions and Monthly Commissions only. Following that period, no account activity shall be processed. In the event that a customer pays for an account 100% in advance, all bi-weekly commissions shall be deemed as earned under this Article and the Company s intent shall be to pay out 100% of such commissions following the first BMD. In the event a new customer pays an advance payment equal to 16% of the total contract value sold the representative will receive the Milestone 2 commission at the same time as the Milestone 1 commission. Term contracts: For 3, 6, or 9 months, all commissions due on those agreements shall be paid out in full, provided that all revenue has been collected by YP on such contract, and the commission system has the capability to make such payments. 44

45 Gates AEC & MC Rates: New Media & DSE YP As Earned Commission Rate Sheet Monthly Commission Rate Sheet # of Reps in Each Tier NISD/BOTS Rate NISD/BOTS Rate 7 41% Renewal 125% Over Obj 300% % New 300% Total New Media Reps: 17 Recanvass 125% Breakdown Details: Over Objective BOTS Obj % 60% 2 12% Daily Obj $ $ % As Earned Commission (AEC) is computed on a Net By Account basis Monthly Commission (MC) is computed on a Cumulative basis

46 Gates Gates AEC & MC Rates: Premise YP As Earned Commission Rate Sheet Monthly Commission Rate Sheet # of Reps in Each Tier NISD/BOTS Rate NISD/BOTS Rate 15 32% 1 0% to 60% 22% -4% to -1% 15% % % to 85% 26% -1% to 2% 25% % % to 100% 32% 2% to 5% 35% 3 4 9% % to 120% 40% 5% to 8% 45% 4 2 4% 5 >120% 46% >8% 60% % New 200% Total Tier Attainments 32 68% Recanvass 65% Total Premises Reps: 47 Conversion Bonus $5,000 Min Conversions 24 As Earned Commission (AEC) is computed on a Net By Account basis Monthly Commission (MC) is computed on a Cumulative basis

47 Gates Gates AEC & MC Rates: Key YP As Earned Commission Rate Sheet Monthly Commission Rate Sheet # of Reps in Each Tier NISD/BOTS Rate NISD/BOTS Rate 7 50% 1 0% to 60% 16% -3% to 1% 10% % % to 85% 20% 1% to 5% 20% % % to 100% 24% 5% to 9% 30% 3 0 0% % to 120% 28% 9% to 13% 40% 4 1 7% 5 >120% 32% >13% 55% 5 1 7% New 200% Total Attainments 7 50% Recanvass 65% Total Key Reps: 14 Conversion Bonus $5,000 Min Conversions 24 As Earned Commission (AEC) is computed on a Net By Account basis Monthly Commission (MC) is computed on a Cumulative basis

48 Gates Gates AEC & MC Rates: Telephone YP As Earned Commission Rate Sheet Monthly Commission Rate Sheet # of Reps in Each Tier NISD/BOTS Rate NISD/BOTS Rate 15 60% 1 0% to 60% 13% -5% to -2% 12% % % to 85% 18% -2% to 1% 20% 2 2 8% % to 100% 23% 1% to 3% 30% 3 2 8% % to 120% 28% 3% to 7% 40% 4 0 0% 5 >120% 33% >7% 55% 5 2 8% New 200% Total Attainments 10 40% Recanvass 50% Total Telephone Reps: 47 Conversion Bonus $2,500 Min Conversions 48 As Earned Commission (AEC) is computed on a Net By Account basis Monthly Commission (MC) is computed on a Cumulative basis

49 Base Adjustment Transition Pays Key Channel Premises Channel New Media Channel Month Monthly Month Monthly Month Monthly 1st $ 2,000 1st $ 1,500 1st $ 1,500 2nd $ 2,000 2nd $ 1,500 2nd $ 1,500 3rd $ 2,000 3rd $ 1,500 3rd $ 1,500 4th $ 1,500 4th $ 1,200 4th $ 1,200 5th $ 1,500 5th $ 1,200 5th $ 1,200 6th $ 1,500 6th $ 1,200 6th $ 1,200 7th $ 750 7th $ 500 7th $ 500 8th $ 750 8th $ 500 8th $ 500 9th $ 750 9th $ 500 9th $ th $ th $ th $ 500 Total $ 13,500 Total $ 10,100 Total $ 10,100 The Base Adjustment Pay will be paid during the first ten months of the transition year

50 As Earned Commissions - Milestones Monthly Commission Caps Key Account Executives Payout of Monthly Commissions for Key Accounts will be capped at no less than 1. $4,000 per month, with remaining commissions above that amount paid out at the end of the annual cycle, following final true-up. Advertising Sales Representatives Premise Payout of Monthly Commissions for Premise will be capped at no less than 1. $4,000 per month, with remaining commissions above that amount paid out at the end of the annual cycle, following final true-up. Telephone Payout of Monthly Commissions for Premise will be capped at no less than 1. $2,500 per month, with remaining commissions above that amount paid out at the end of the annual cycle, following final true-up. New Media/Digital Account Executives Payout of Monthly Commissions for Premise will be capped at no less than 1. $12,000 per month, with remaining commissions above that amount paid out at the end of the annual cycle, following final true-up. 50

51 Monthly Commission Cap Premises Channel New Media Channel $4,000 $12,000 Key Channel Telephone Channel $4,000 $2,500

52 Monthly Commission True Up The Monthly Commission (MC) is trued up each month. Any MC over or reserved payments are balanced during each monthly true up. Any amount above the MC Cap limit will be paid out at the end of the annual cycle, following the final true up. Any remaining over payment at the end of the annual cycle will be treated as a debit.

53 Actual Average Earnings Report: Premise YP PR Actual Average Earning Reports New Comp Plan Estimate th Quarter rd Quarter YP Element Earnings % of Total Earnings % of Total Element Earnings % of Total Base $44,344 42% $45,422 41% Base $45,599 40% DSA $10,687 10% $10,197 9% Commission $49,484 47% $54,200 49% MC Cmsn $19,327 17% Contests $1,888 2% $1,888 2% Prf Bonus $4,740 4% $0 0% Overpayments -$5,210-5% -$832-1% 1 st Year Transition $10,100 9% Total $105, % $110, % Total $113,832 YP Estimates of New Compensation Plan

54 Actual Average Earnings: Key YP KE Actual Average Earning Reports New Comp Plan Estimate th Quarter rd Quarter 2013 YP Element Earnings % of Total Earnings % of Total Element Earnings % of Total Base $69,864 42% $71,219 42% Base $71,219 46% DSA $5,277 3% $4,409 3% Commission $96,277 58% $90,948 53% MC Cmsn $21,664 14% Contests $3,465 2% $3,888 2% Prf Bonus $6,408 4% 0% Overpayments -$14,081-8% -$306 0% 1 st Year Transition $13,500 9% Total $167, % $170, % Total $156,248 YP Estimates of New Compensation Plan -

55 Actual Average Earnings: Tel YP T1 Actual Average Earning Reports New Comp Plan Estimate th Quarter rd Quarter YP Element Earnings % of Total Earnings % of Total Element Earnings % of Total Base $39,857 47% $40,772 49% Base $41,126 56% DSA $6,919 8% $5,361 6% Commission $36,902 43% $36,902 44% MC Cmsn $5,837 8% Prf Bonus $4,237 5% 0% Contests $1,044 1% $1,044 1% Overpayment -$3,263-4% -$898-1% Total $85, % $83, % Total $73,548 YP Estimates of New Compensation Plan

56 Actual Average Earnings: NM YP NM Actual Average Earning Reports New Comp Plan Estimate th Quarter rd Quarter 2013 YP Element Earnings % of Total Earnings % of Total Element Earnings % of Total Base $39,529 27% $40,041 25% Base $39,529 26% DSA $9,466 6% $12,498 8% DSA $9,466 6% Commission $83,588 57% $99,184 63% New Cmsn $75,267 49% Contests $1,412 1% $6,988 4% Over Obj Cmsn $1, % Prf Bonus $17,033 12% Renewal Cmsn $1,832 1% Overpayments -$3,709-3% -$490 0% 1 st Year Transition $10,100 7% Total $147, % $158, % Total $152,921 YP Estimates of New Compensation Plan

57 Recap - MC Target & Assurances Key Channel Premises Channel Telephone Channel $23,000 Target $ 19,000 Target $6,000 Target 91% 91% 91% Assurance Assurance Assurance $20,930 $17,290 5, # of Full Time Reps 47 # of Full Time Reps 25 # of Full Time Reps $293,020 Assurance $812,630 Assurance $136,500 Assurance $8,500 Average MC $9,438 Average MC $3,892 Average MC $119,00 Total MC $443,595 Total MC $97,303 Total MC 7 $97,580 # of Rep Above Target e.g., Cash Incentive 21 $369,035 # of Rep Above Target e.g., Cash Incentive 6 $39,197 # of Rep Above Target e.g., Cash Incentive Based on 2013 results: The Distinct Plan Element (like Cash Incentive) will be paid within the next 3 months after the current Plan Year end date

58 Recap - Milestones Milestone Rates & BMDs Milestone Rates BMD Pay Date #1 50% Retired Date #2 20% New Bill Date #3 20% 90 days after #4 10% 120 days after

59 MC Rate Gate NM Nrate % % AEC Rate Items Obj NM 0 Rnwl 125% 1 New 300% 2 BOTS Obj 60% 3 New Obj 17,600 4 salesdays mth obj$ 1,467 6 mth wk days Commission Pay Flow: High NM Rep s Performance 11XXXX NM Feb March April May June July Aug Sep Oct Nov Dec Jan Annual Accounts Retired BOTS ,086 4,875 2,979 1,924 2,000 5,164 4,508 2, ,650 35,672 NISD 9,614 5, ,813 8,950 4,434 1,129 4,029 11,614 8,894 1,290 3,499 68,084 Cumulative Daily$ MC Prf Over Obj Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Cumulative Cmsn 24,208 35,785 21,357 31,619 48,705 54,142 49,528 47,918 70,246 87,336 85,904 87,231 87,231 MC Cmsn True Up 12,208 11,785 (2,643) 0 5,086 0 (4,614) (6,223) 4,104 9, Monthly Earned 24,208 11, ,262 17,086 5, ,328 17,090 3,869 1, ,183 MC Cmsn Paid 12,000 12, ,619 12,000 10, ,000 12,000 7,762 1,326 87,231 AEC 29,777 18,301 2,816 24,197 27,719 13,732 3,497 12,478 14,085 26,397 3,994 8, ,572 Monthly Milestone 16,298 11,454 2,212 26,330 18,807 8,546 21,397 9,067 8,623 21,177 7,561 9, ,158 AEC Cmsn Deferred 13,479 6, ,912 5, ,411 5,462 5, ,121 Total Earned 53,985 42, ,816 44,805 24,255 (1,117) 6,255 30,189 47,591 11,756 9, ,803 Commission Paid 28,298 23,454 2,212 33,948 30,807 19,069 21,397 9,067 20,623 33,177 15,324 11, ,389 Base Adjustment Transition 1,500 1,500 1,500 1,200 1,200 1, ,100 Total Paid/Mth Net Cmsn 29,798 24,954 3,712 35,148 32,007 20,269 21,897 9,567 21,123 33,677 15,324 11, ,489 Over Daily Objective $ = NISD-60%BOTS-Monthly Objective As Earned Commissions (AEC) are computed on a Net By Account basis NM has only 1 gate: Yes = Over the daily objective $ Milestones cleared commission AEC s are subject to the Milestone treatments. Monthly Commissions (MC) are Subject to the Monthly Cap: $12,000 for NM/DSE

60 Gate MC Rate T1 Trate 0 (1.00) 0% 1 (0.05) 12% 2 (0.02) 20% % % % AEC Rate Gate Obj T % 13% % 18% % 23% % 28% % 33% 5 New 200% 6 Recan 50% Commission Pay Flow: High Tel Rep s Performance 13XXXX T1 Feb March April May June July Aug Sep Oct Nov Dec Jan Annual Accounts Retired BOTS 4,493 1,863 4,457 5,458 2,362 1,022 1,123 4,001 6,576 4,805 2,577 3,555 42,290 NISD 4,124 1,615 3,814 7,598 2,010 1,066 2,288 4,485 5,120 3,564 2,085 3,290 41,059 Cumulative NISD% 92% 90% 88% 105% 103% 103% 108% 109% 102% 99% 98% 97% MC Prf Gate Cumulative Cmsn ,861 5,748 6,068 12,383 14,850 9,636 7,137 4,532 4,927 4,927 MC Cmsn True Up , ,815 3,782 (1,432) (3,931) (6,536) (6,141) (6,141) Monthly Earned , ,258 2, ,084 MC Cmsn Paid ,500 2,500 1,068 2,500 2, ,068 AEC 1, ,505 3, ,019 1,223 2,188 1,500 1,190 1,092 1,186 18,195 Monthly Milestone 1, ,505 3, ,019 1,223 2,188 1,500 1,190 1,092 1,186 18,195 AEC Cmsn Deferred Total Earned 1, ,505 10,839 4,195 2,087 7,538 8, (2,741) (5,444) (4,955) 23,122 Commission Paid 1, ,505 6,479 3,447 2,087 3,723 4,688 1,500 1,190 1,092 1,186 29,263 Base Adjustment Transition Total Paid/Mth Net Cmsn 1, ,505 6,479 3,447 2,087 3,723 4,688 1,500 1,190 1,092 1,186 29,263 Any remaining MC commissions after a true up treatment are rolled over Total Earned Commissions = AEC + MC Any remaining AEC commissions after MS treatments are deferred Net Commissions = (AEC-Deferred) + MC Telephone Channel have $0 Base Adjustment Transition

61 MC Rate Gate PR Prate 0 (1.00) 0% 1 (0.04) 15% 2 (0.01) 25% % % % AEC Rate Gate Obj PR % 22% % 26% % 32% % 40% % 46% 5 New 200% 6 Recan 65% Commission Pay Flow: Avg Prem Rep s Performance 12XXXX PR Feb March April May June July Aug Sep Oct Nov Dec Jan Annual Accounts Retired BOTS 1,268 4,179 11,053 3,638 10,928 9,850 3,574 8,289 6,458 3,594 2,685 4,221 69,733 NISD 910 4,706 10,558 4,440 6,824 9,058 5,419 9,250 7,763 5,026 1,202 2,686 67,842 Cumulative NISD% 72% 103% 98% 102% 88% 89% 94% 97% 99% 102% 99% 97% MC Prf Gate Cumulative Cmsn 0 1,966 2,426 7, ,675 14,732 15,988 16,289 10,176 10,176 MC Cmsn True Up (6,426) (6,426) (6,426) 0 3, (6,113) (6,113) Monthly Earned 0 1, , ,387 1,941 1, ,786 MC Cmsn Paid 0 1, , ,249 4,000 4, ,289 AEC 347 1,795 3,950 3,172 2,719 3,830 2,979 5,227 4,230 2, ,025 32,974 Monthly Milestone 319 1,111 2,650 2,278 1,606 2,817 3,519 3,262 2,962 3,407 1, ,601 AEC Cmsn Deferred , ,112 1, ,966 1, ,972 Total Earned 347 3,760 4,410 7,961 (3,707) (2,596) (3,447) 6,476 11,288 7,179 1,449 (5,088) 43,151 Commission Paid 319 3,077 3,110 6,278 1,606 2,817 3,519 4,510 6,962 7,407 1, ,889 Base Adjustment Transition 1,500 1,500 1,500 1,200 1,200 1, ,100 Total Paid/Mth Net Cmsn 1,819 4,577 4,610 7,478 2,806 4,017 4,019 5,010 7,462 7,907 1, ,989 The high June month negative NISD% impacted a continued negative NISD% The high negative NISD% resulted the MC debit & negative total earned commission Each monthly MC commission pay includes any debit paid The net commission pay included The Base Adjustment Transition $ The AEC commissions are paid after each Milestone treatment.

62 Gate MC Rate KE Krate 0 (1.00) 0% 1 (0.03) 10% % % % % AEC Rate Gate Obj KE % 16% % 20% % 24% % 28% % 32% 5 New 200% 6 Recan 65% Commission Pay Flow: High Key Rep s Performance 13XXXX KE Feb March April May June July Aug Sep Oct Nov Dec Jan Annual Accounts Retired BOTS 14,861 9,366 19,271 14,340 35,067 33,083 25,101 35,285 18,228 17,924 26,077 18, ,735 NISD 25,522 11,696 22,453 16,544 33,058 38,783 21,654 32,661 16,361 20,062 23,508 16, ,992 Cumulative NISD% 172% 154% 137% 132% 118% 118% 112% 109% 107% 107% 106% 105% MC Prf Gate Cumulative Cmsn 14,037 20,470 32,819 41,918 60,100 81,431 67,884 60,711 65,619 71,638 78,690 55,798 55,798 MC Cmsn True Up 10,037 12,470 20,819 25,918 40,100 57,431 39,884 28,711 29,619 31,638 34,690 7,798 7,798 Monthly Earned 14,037 6,433 12,349 9, , , ,267 MC Cmsn Paid 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 48,000 AEC 6,725 4,716 4,194 4,452 14,999 9,015 5,648 6,225 3,015 6,076 6,476 3,028 74,569 Monthly Milestone 3,969 2,724 2,880 4,054 10,317 5,859 6,047 6,770 2,943 6,457 5,631 2,226 59,877 AEC Cmsn Deferred 2,756 1,991 1, ,681 3, ,016 Total Earned 20,762 21,185 29,013 34,370 59,099 70,446 49,531 38,936 36,635 41,714 45,166 14, ,367 Commission Paid 7,969 6,724 6,880 8,054 14,317 9,859 10,047 10,770 6,943 10,457 9,631 6, ,877 Base Adjustment Transition 2,000 2,000 2,000 1,500 1,500 1, ,500 Total Paid/Mth Net Cmsn 9,969 8,724 8,880 9,554 15,817 11,359 10,797 11,520 7,693 11,207 9,631 6, ,377 The cumulative NISD% ended at 5%; down graded from MC gate #3 to #2 The annual true up will result $7,798 and will be distributed the following pay period The Base Adjustment Transition for Key Channel is $13,500 The MC Monthly Cap for Key is $4,000; the rep s monthly earning exceeded the cap The total deferred AEC is $16,016; distributed following each respective 3 rd & 4 th Milestone BMD schedules

63 Key Rep s Summary View Pay by Elements 13XXXX KE Total/Year Accounts Retired BOTS $ 266,735 NISD $ 278,992 NISD % 5% Final Cumulative Gate 2 MC Performances Cmsn 69,267 True Up 7,798 Total Monthly MC Cmsn MC Paid 48,000 AEC Commission Performances Deferred AEC Distributions Total Commission Pay Activities AEC 74,569 Milestone 59,877 Deferred 16,016 1st Qt 53.5% 2nd Qt 20.1% 3rd Qt 16.6% 4th Qt 7.2% 1st Qt 2.1% 2nd Qt 0.6% Earned 130,367 Paid 107,877 Total Commission Pay Net Cmsn 107,877 Debits DBI (14,634) Non Pay (1,689) Total Pay after Debit Net Pay 91,554 Total Base Pay Base 70,675 Total Base Adjustment Transition 13,500 Total 1st Annual Pay Gross Cmsn 192,052 (DSA and Contest dollars are not included)

64 Premise Rep s Summary View Pay by Elements 12XXXX PR Total/Year Accounts Retired BOTS $ 69,733 NISD $ 67,842 NISD % -3% Final Cumulative Gate 1 MC Performances Cmsn 7,786 True Up (6,113) Total Monthly MC Cmsn MC Paid 16,289 AEC Commission Performances Deferred AEC Distributions Total Commission Pay Activities AEC 32,974 Milestone 25,601 Deferred 8,972 1st Qt 47.1% 2nd Qt 35.1% 3rd Qt 15.0% 4th Qt 1.9% 1st Qt 0.9% 2nd Qt 0.0% Earned 43,151 Paid 41,889 Total Commission Pay Net Cmsn 41,889 Debits DBI (3,519) Non Pay (5,582) Total Pay after Debit Net Pay 32,788 Total Base Pay Base 45,843 Total Base Adjustment Transition 10,100 Total 1st Annual Pay Gross Cmsn 97,833 (DSA and Contest dollars are not included)

65 NM Rep s Summary View Pay by Elements 11XXXX NM Total/Year Accounts Retired BOTS $ 35,672 NISD $ 68,084 NISD % 91% Final Cumulative Gate 1 MC Performances Cmsn 113,183 True Up 0 Total Monthly MC Cmsn MC Paid 87,231 AEC Commission Performances Deferred AEC Distributions Total Commission Pay Activities AEC 185,572 Milestone 161,158 Deferred 49,121 1st Qt 70.5% 2nd Qt 4.3% 3rd Qt 23.5% 4th Qt 1.1% 1st Qt 0.5% 2nd Qt 0.0% Earned 272,803 Paid 248,389 Total Commission Pay Net Cmsn 248,389 Debits DBI (858) Non Pay (93,778) Total Pay after Debit Net Pay 153,753 Total Base Pay Base 41,548 Total Base Adjustment Transition 10,100 Total 1st Annual Pay Gross Cmsn 300,037 (DSA and Contest dollars are not included)