YP Holdings Inc - Additional information on the Sales Compensation Transition Plan

During 2012 bargaining the parties agree to a sales compensation plan and a transition plan associated with it. The details of the transition plan as agreed upon are outlined below:

1. Begin the Quarterly Commission element at ratification (pay manually until new system in 2013)
2. Modify the existing Rates &Gates plan to emulate the new commission plan rates starting with all 2013 canvasses (known as Interim plan) – going forward change to be made as soon as possible after ratification
3. This Interim plan will include a recalculation for all 2013 activity that will occur by the end of 2012.
4. All DASR base salaries will revert to normal scales (i.e., pre-MC2 trial scales) effective with the start of the Interim plan
5. DASR and MAR reps on the AC2 bonus plan will remain on that plan until their next uncapped month. If the AC2 plan ends before the Interim plan is implemented they will revert to the previous R&G plan. If the AC2 plan ends after the Interim plan is implemented they will move directly to the Interim plan.
6. Pay initial (partial) Quarterly Commission at end of October
7. Pay second (full) Quarterly Commission (for Nov, Dec, and Jan) at beginning of February
8. Start 2013 Quarterly Commission year (February 2013)
9. Implement New, Account Level Bi-weekly Commission plan as soon as new commission system is ready – estimating in March 2013
    Note: a recalculation is not required as the Interim plan payments should approximate the new plan payments in total.
10. Implement the As Earned Commissions and Transition Base Pay increases when the As Earned element is implemented. Estimated date is May 2013.
11. Implement the Flexible Comp component year starting in February 2013
12. Retention Reward for DTSRs will be effective with the new commissions system - estimating in March 2013.

*assumes a late-September ratification. If that date moves, then all subsequent dates move accordingly.