Document:

Exhibit 10.5

 

 

 

2019 SHORT TERM INCENTIVE PLAN (“STIP”)

 

Effective January 1, – December 31, 2019

 

PURPOSE

 

The Short Term Incentive Plan (the “Plan” or “STIP”) is designed to reward eligible non-sales, non-bargained for employees for achievement of pre-established corporate performance measures and individual performance objectives that are assigned a specific weight according to their importance in the Company’s business plan. This Plan, for eligible employees, covers the period from January 1, 2019 through December 31, 2019.

 

This Plan supersedes any prior incentive plan version and cancels any document that provides information contrary to the information contained in this Plan version. The Company may terminate the Plan, amend or modify the Plan in any respect, at any time, and without notice, provided, however, that such termination, modification or amendment shall not adversely affect the rights of a participant to receive an award already fully earned under this Plan.

 

ELIGIBILITY

 

All regular full-time and part-time non-sales, non-bargained for employees who are employed during the calendar year, and who commence employment with the Company before October 1, 2019, and who do not participate in another incentive plan currently in operation, are potentially eligible to participate in the Plan. To be eligible to earn and receive payment of any incentive award, the participant must be:

		1.	Classified as a permanent employee;

		2.	Employed with the Company during some portion of the period for which the award is being measured, and initially hired by the Company before October 1, 2019; and

		3.	Actively working through the payment date, or on Company-approved or job-protected leave for any periods not worked where the Company has a reasonable expectation that the employee will return to their position in the near future and is active on the date the award is “earned,” as defined in the Administration section. An individual is “actively working” if he or she is actually working and carrying out his or her duties at the Company, or he or she is on PTO or a paid Company holiday.

		4.	Must be in an STI eligible position for a minimum of 90 days in order to be eligible for a prorated award.

 

Incentive awards are not “earned” until the events described in the Administration section occur.

 

The following individuals are not eligible for a payment under STIP:

		1.	Employees who voluntarily terminate their employment or are involuntarily terminated for any reason are not eligible for the 2019 STIP payment. In addition, payment to employees who are under investigation for misconduct on the normal payout date may be delayed. If it is determined that misconduct occurred and termination occurs, the award is forfeited in accordance with applicable state law.

		2.	Contractors and interns are not eligible for the 2019 STIP.

		3.	Employees who are participating in any other incentive plan within the Company (i.e. Sales Incentive programs, Quarterly Incentive programs, etc.).

		4.	Employees who are in an STI eligible position for less than 90 days.

 

2019 STIP DESIGN

 

PLAN COVERAGE PERIOD

Awards under the Plan will be based upon the achievement of pre-established annual Corporate performance measure(s), employee performance and the eligible employee’s annual eligible base salary on December 31 of the Plan year will be used when proration(s) are not required for the following Plan Coverage Period(s), unless modified by the Committee:

January 1, 2019 through December 31, 2019.

 

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STIP PERFORMANCE MEASURES AND GOALS

 

Performance metrics, weighting, and the pre-established performance goals are set by the Compensation Committee. Performance against pre-established corporate goals, as determined by the Committee and the Chief Executive Officer, determine the funding level that will be available for awarding incentives. If it is determined that the 2019 STIP awards will be granted, senior management and the Board retain the sole discretion to set award levels and to adjust award levels and subsequent employee distribution.

 

Individual Target Award Opportunity

Each individual is assigned a target award opportunity that is a percentage of the individual’s base salary. The target percentage opportunity is determined based on the individual’s job(s) during the Plan Coverage Period, which may result in a target that has been prorated to capture the relevant base salary earnings in each job, the target percentage of each job and the amount of time spent in each job. The eligible employee’s annual eligible base salary on December 31 of the Plan year will be used when proration(s) are not required.

 

The annual STIP targets by job level are as follows:

 

Table 1:

 

	JOB LEVEL	
2019 STIP 

TARGET %

 

	Chief Executive Officer	100%
	Executive Vice President (EVP)	60% - 70%
	Vice President (VP)	40%
	Assistant Vice President (AVP)	30%
	Director (DIR)	25%
	Sr Manager (SRMGR), Manager (MGR), Sr Exempt Individual Contributor (SRIC)	
15%

	Supervisor (SUPV)	10%
	Exempt Individual Contributor (IC)	8%
	Non-Exempt Individual Contributor (NEIC)	5%

 

Performance Goals

 

There are three components of the 2019 STIP performance goals for January 1 through December 31, 2019:

 

Table 2:

	Plan Component	Weighting	Target for January 1, 2019 through

December 31, 2019
	
Adjusted EBITDA

	50%	$500 MM
	Adjusted Free

Cash Flow	25%	$220 MM
	Individual

Performance	25%	Funds after obtaining minimum EBITDA

before award of $470 MM

 

The individual performance awards are determined based on individual performance ratings as recorded on the year-end performance appraisal. As a result, eligible employees may receive an award that is higher or lower than the 2019 STIP target awards as defined by their job level.

 

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FUNDING

 

2019 STIP Financial Targets and Payout “Curve”

		–	Adjusted EBITDA (50%). This performance metric supports our focus on improving revenue trends and reflects the public budget released on February 26, 2019, which represents the budget guiding principles and financial projects of the Company for fiscal year 2019. Adjusted EBITDA is adjusted for certain investments in growth opportunities. Adjusted EBITDA award component begins to fund after exceeding minimum adjusted EBITDA of $491 MM after cost of individual performance award and any adjusted FCF award earned, payout curve shown in Table 3 below.

		–	Adjusted Free Cash Flow (“Adjusted FCF”) (25%). This performance metric supports our goal of generating cash to build the business, while continuing to meet our debt requirements. FCF has been adjusted to reflect the public budget release of February 26, 2019, which represents the budget guiding principles and financial projections of the Company for fiscal year 2019. Adjusted FCF does not include certain tax liabilities, settlement of liability stock option awards and certain investments in growth opportunities, including merger and acquisitions and relisting activities. Adjusted FCF award component begins to fund after exceeding a minimum adjusted FCF of $211 MM, payout curve shown in Table 3 below.

		–	Individual performance (25%). This performance metric supports our goal of pay for performance. It is determined based on individual performance assessment by our CEO. In fiscal year 2019, the Company established a minimum adjusted EBITDA threshold of $470 MM for this performance metric. The means if adjusted EBITDA for fiscal year 2019 is below $470 MM, no incentive award would be earned for the Individual Performance metric (i.e. 25% of the STI payout opportunity would not be funded).

 

Table 3:

 

	Adj. EBITDA STI Award Scale	 	Adj. FCF STI Award Scale
	Reported

EBITDA	% of

Annual

Award	Updated Calculation	Reported

FCF	% of

Annual

Award
	$	491.00	25%	←	Minimum Hurdle	→	$	211.00	25%
	$	492.00	33%	 	$	212.00	33%
	$	493.00	42%	 	$	213.00	42%
	$	494.00	50%	 	$	214.00	50%
	$	495.00	58%	 	$	215.00	58%
	$	496.00	67%	 	$	216.00	67%
	$	497.00	75%	 	$	217.00	75%
	$	498.00	83%	 	$	218.00	83%
	$	499.00	92%	 	$	219.00	92%
	$	500.00	100%	←	Actual/Target	→	$	220.00	100%
	$	501.50	104%	 	$	221.00	104%
	$	504.50	113%	 	$	223.00	113%
	$	507.50	121%	 	$	225.00	121%
	$	509.00	125%	←	Maximum	→	$	226.00	125%

 

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IMPACT OF INDIVIDUAL PERFORMANCE RATING ON THE 2019 STI AWARD

 

Individual performance rating has a direct impact on the individual performance component (25% of total) of the performance metrics of the 2019 STIP. Your manager will determine the award amount for this component based on the scale below:

 

Table 4:

 

	2019 Performance Rating	Recommended Payout Percentage for

Individual Performance Component
	Did Not Meet Expectations	0%
	Partially Met Expectations	50% to 75%
	Achieved Expectations	75% to 100%
	Exceeded Expectations	100% to 125%
	Far Exceeded Expectations	125% to 150%

  

Award amounts for company performance metrics (75% of total) are fixed based on Company’s performance for those receiving a rating of “Partially Met Expectations” or higher. Employees with an individual performance rating of “Did Not Meet Expectations” will receive a reduced payout in the range of 25% to 50% of the Company’s performance component.

 

PRORATION OF AWARD

 

If an employee meets Plan eligibility requirements for only a portion of the Plan Coverage Period, the 2019 STIP award will be prorated for any periods the employee was not eligible. For example, the 2019 STIP will be prorated in an amount equivalent to the amount of time the employee was on any of the following:

		1.	Unpaid leave

		2.	Leave supplemented with a pay replacement benefit (such as STD, LTD, or workers compensation)

		3.	Absent without leave

		4.	Administrative leave as part of any Company investigation, discipline, or inquiry

		5.	Hire date after January 1, 2019

		6.	Movement from the 2019 STIP to another incentive plan (e.g., Sales / Operations)

		7.	Movement to the 2019 STIP eligible position from another incentive plan (e.g., Sales / Operations) or from a position covered by a collective bargaining agreement

		8.	A job change that results in a change in Target % or a change in base pay during the Plan Coverage Period.

 

In such situations as described above, the 2019 STIP award, if any, will be paid at the time that other 2019 STIP awards are scheduled to be paid in accordance to Plan, unless otherwise specifically stated in this Plan. For employees on leave, STIP awards will be paid to the employee once they return to work, are active and no longer on leave.

 

EXAMPLE - INCENTIVE AWARD CALCULATIONS:

 

THRYV Plan – January 1 to December 31:

Company performance metrics as well as your individual performance count towards your 2019 STIP payout calculation. Below is an example of the target 2019 STIP calculation for an eligible employee who has been employed with the Company since January 1, 2019 with an annual base salary of $70,000 and a 10% STIP target opportunity. For illustration purposes, this assumes a full 365 days of the Plan Coverage Period within the same eligible job (I.e. no prorations):

 

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Compensation Assumptions: January 1 – December 31:

		●	Base Salary = $70,000

		●	Award Target % = 10%

		●	Award Target $ = $7,000

		●	Performance Rating = Achieved Expectations

 

Company Performance Assumptions: January 1 – December 31:

		●	Company EBITDA achievement of $500 MM, 100% of target.

		●	Company FCF achievement of $220 MM, 100% of target.

		●	MBO pool fully funded as EBITDA threshold of $470 MM exceeded.

 

The employee’s 2019 STIP will therefore be as follows for each of the components:

 

Payout calculation for the Period January 1 – December 31:

Table 5:

	 	A	B	C	 
	2019 STIP 

Component	Award Target

($)	Measure

Weighting	Target

Achieved	Award Payout

(A*B*C)
	EBITDA	$7,000	50%	100%	$3,500
	FCF	$7,000	25%	100%	$1,750
	Individual

Performance (MBO)	$7,000	25%	90% *	$1,575
	2019 STIP Payout	 	 	 	$6,825

* Awarded by manager within allotted range, see table 4.

 

TIMING OF PAYMENTS

 

Assuming Plan requirements are satisfied, which include Board review and approval, award payments will be targeted for spring 2020 to eligible employees actively working and on payroll at the time of payment.

 

DEFINITIONS

 

BASE SALARY EARNINGS

An eligible employee’s base salary earnings paid during the Plan period as of December 31 or prorated for each eligible job(s) within the Plan period. Base salary earnings for this purpose do not include benefits, bonuses, overtime, or other awards.

 

BOARD

The Company’s Board of Directors.

 

COMMITTEE

The Compensation and Benefits Committee of the Board of Directors of the Company.

 

COMPANY

Thryv Holdings, Inc. and its consolidated subsidiaries.

 

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ADJUSTED EBITDA

Total Company operating income, before interest, taxes, depreciation and amortization, each calculated in accordance with GAAP. This performance metric supports our focus on improving revenue trends, and reflects the public budget released on February 26, 2019, which represents the budget guiding principles and financial projections of the Company for fiscal year 2019. Adjusted EBITDA is adjusted for certain investments in growth opportunities.

 

ADJUSTED FREE CASH FLOW (FCF)

This performance metric supports our goal of generating cash to build the business, while continuing to meet our debt requirements. Free Cash Flow has been adjusted to reflect the public budget released on February 26, 2019, which represents the budget guiding principles and financial projections of the Company for fiscal year 2019. Adjusted Free Cash Flow does not include certain tax liabilities, settlement of liability based stock option awards and certain investments in growth opportunities, including merger and acquisitions and relisting activities.

 

INDIVIDUAL TARGET OPPORTUNITY

An eligible STI target percentage for eligible employee based on one’s job level(s).

 

NON-BARGAINED FOR

Non-represented employees or those employees not working under a collective bargaining agreement.

 

PLAN COVERAGE PERIOD

The Plan Coverage Period is January 1, 2019 through December 31, 2019.

 

ADMINISTRATION

 

Approval/Objectives Guidelines

2019 STIP Awards are at the sole discretion of senior management and the Board of Directors, and may or may not be granted based upon Company, functional unit, departmental, and/or individual performance in the plan year. If it is determined that 2019 STIP awards will be granted, senior management and the Board of Directors retain the sole discretion to set award levels and to adjust award levels and subsequent employee distributions.

 

When 2019 STIP Awards are Earned 

2019 STIP Awards are not earned, are not due, and shall not vest unless and until the following conditions are met: (1) the Approval/Objective Guidelines are met, (2) the Board approves corporate performance and payment, (3) all 2019 STIP eligibility requirements as described herein are met, (4) the individual is employed and actively working for the Company (or on Company Approved or job protected leave) on the payment date, and (5) the payout date occurs.

 

2019 STIP awards, if any, will be paid within guidelines noted within, and processed with your regular payroll check. All legally required and applicable income and employment taxes and withholdings will be deducted from the gross incentive award paid to participants. Awards are considered eligible compensation for the purposes of calculating 401(k) plan match and contributions, but are not otherwise considered compensation for the purpose of other employee benefits.

 

Interpretation

The Company shall have the full power and authority to interpret, construe, and administer this Plan, including the determination of the amount of each participant’s award amount.

 

Short-Term Deferral

All 2019 STIP awards will be paid with the short-term deferral period, and thus, are exempt from Internal Revenue Code Section 409A.

 

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Disclaimer

THIS PLAN IS NOT A CONTRACT OF EMPLOYMENT OR OTHERWISE ALTER YOUR AT-WILL EMPLOYMENT STATUS AND DOES NOT CREATE ANY CONTRACTUAL RIGHTS. Any payment under the Plan or this incentive award is discretionary and at the will of the Company. This Plan document and the award schedules set forth herein do not constitute an express or implied promise of continued employment for any period or at all, and will not interfere in any way with a participant’s right to terminate or the Company’s right to terminate a participant’s employment at any time, with or without cause and with or without notice.

 

The Company may terminate the Plan, or amend or modify the Plan in any respect, at any time, and without notice. This Plan may be superseded by federal, state, and local laws to the extent applicable.

 

	HR Compensation	2019 Short Term Incentive Plan	Amended November 5, 2019
	 	Page 7 of 7Exhibit 10.6

      

      

    

    

    DRAFT 2020 OVER PERFORMANCE PLAN (“OPP”)

    Effective January 1 – December 31, 2020

    

    

    PURPOSE

    

    

    The Over Performance Plan (the “Plan” or “OPP”) is an incremental incentive plan designed to reward eligible Director level and above employees for achievement of pre-established corporate performance
      measure(s) that are assigned a specific weight according to their importance in the Company’s business plan. This Plan, for eligible employees, covers the period from January 1, 2020 through December 31, 2020.

    

    

    This Plan supersedes any prior incremental incentive plan version and cancels any document that provides information contrary to the information contained in this Plan version. The Company may
      terminate the Plan, amend or modify the Plan in any respect, at any time, and without notice, provided, however, that such termination, modification or amendment shall not adversely affect the rights of a participant to receive an award already fully
      earned under the Plan.

    

    

    ELIGIBILITY

    

    

    All regular full-time and part-time non-sales, non-bargained for Director level and above employees who are employed during the calendar year, and who commence
      employment with the Company before October 1, 2019 who are presented with a participation letter from Human Resources confirming eligibility are potentially eligible to participate in the Plan. To be eligible to earn and receive payment of an
      incentive award, the participant must be:

     

    

    	1.	
            Classified as a permanent employee;

          

    	2.	
            Employed with the Company during some portion of the period for which the bonus is being measured, and initially be hired by the Company before October 1, 2020; and

          

    	3.	
            Selected by the Committee for participation before the payment date; and

          

    	4.	
            Actively working at the Director level or above through the payment date, or on Company-approved or job-protected leave for any periods not worked where the Company has a reasonable expectation that the employee will return to their
              position in the near future and is active on the date the incentive award is “earned,” as defined in the Administration section. An individual is “actively working” if he or she is actually working and carrying out his or her duties at the
              Company, or he or she is on PTO or a paid Company holiday.

          

    

    

    Incentive awards are not “earned” until the events described in the Administration section occur.

    

    

    The following individuals are not eligible for a payment under OPP:

     

    

    	1.	
            Employees who voluntarily terminate their employment or are involuntarily terminated for any reason are not eligible for the 2020 OPP payment. In addition, payment to employees who are under investigation for misconduct on the normal
              payout date may be delayed. If it is determined that misconduct occurred and termination occurs, the award is forfeited in accordance with applicable state law.

          

    	2.	
            Contractors and interns are not eligible.

          

    

    

    2020 OPP DESIGN

    

    

    PLAN COVERAGE PERIOD

    Awards under the Plan will be based upon the achievement of pre-established annual Corporate performance measure(s) and the eligible employee’s annual eligible base salary on December 31 of the Plan
      year will be used when proration(s) are not required for the following Plan Coverage Period(s), unless modified by the Committee:

    January 1, 2020 through December 31, 2020.

    
      
        
          	
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    OPP PERFORMANCE MEASURES AND GOALS

    

    

    The amount of any OPP payment will be based on the eligible employee’s target OPP opportunity and attainment of certain Corporate performances measures. Target opportunities, corporate performance
      metrics, weighting, and the pre-established performance goals are set by the Committee in its sole discretion and may be changed at any time. Performance against pre-established Corporate goals, as determined by the Committee and the Chief Executive
      Officer, determine the funding level that will be available for awarding incentives. If it is determined that OPP awards will be granted, senior management and the Board retains the sole discretion to set award levels and to adjust award levels and
      subsequent employee distributions.

    

    

    CORPORATE PERFORMANCE MEASURES AND GOALS

    

    

    The Corporate performance measures for 2020 are Earnings before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) before restructuring related professional fees and Free Cash Flow (“FCF”).
      The performance metric will be measured against an annual EBITDA result with a minimum and target goal. No incentive payment will be earned for EBITDA performance below the minimum. The eligible employee’s individual performance rating may not be a
      basis for the OPP.

    

    

    Table 1:

    

    

    	
            Metric

          	
            Weight

          	
            Threshold

          	
            Maximum

          
	
            EBITDA

          	
            50%

          	
            $407.5 MM

          	
            No Cap

          
	
            Adj. FCF

          	
            50%

          	
            $202 MM

          	
            No Cap

          

    

    

    The table below illustrates the minimum and other levels of EBITDA and FCF performance for 2020 and the corresponding payout levels for OPP. Incentive awards are interpolated between achievement
      levels.

    

    

    Table 2:

    

    

    
      

      

    

    	
            [1]  FCF approved 605 (Accounting Standard) Budget dated 12-10-2019 has been adjusted for the settlement of the $50 MM Tax Liabilities assumed in the YP acquisition.

          

    
      
        
          	
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      INDIVIDUAL TARGET OPPORTUNITY

    Eligible employees will have an OPP target percentage opportunity assigned based on their job(s) during the Plan year. Targets may be prorated to capture the relevant base salary earnings in each job,
      the target percentage of each job, and the amount of time spent in each job. The eligible employee’s annual base salary on December 31 of the Plan year will be used when proration(s) are not required.

    

    

    The annual OPP targets by job level are generally as follows:

     

    

    Table 3:

    

    

    	
            JOB LEVEL

          	
            2020 OPP TARGET %

          
	
            Chief Executive Officer (CEO)

          	
            100%

          
	
            Executive Vice President (EVP)

          	
            60% - 70%

          
	
            Vice President (VP)

          	
            40%

          
	
            Assistant Vice President (AVP)

          	
            30%

          
	
            Director (DIR)

          	
            25%

          

    

    

    PRORATION OF INCENTIVE

    If an employee meets plan eligibility requirements, the OPP award will be prorated for any periods during which the employee was not working and not on regular, company-approved paid time off. For
      example, the OPP award will be prorated to reflect any of the following:

     

    

    	

          	1.	
            Unpaid Leave

          

    	

          	2.	
            Leave supplemented with a pay replacement benefit (such as STD, LTD, or workers compensation)

          

    	

          	3.	
            Absence without leave

          

    	

          	4.	
            Administrative leave as part of any company investigation, discipline, or inquiry

          

    	

          	5.	
            Hire date after January 1, 2020.

          

    	

          	6.	
            Existing employees who have a job change into or out of a role, a change in Target % or a change in base pay during the Plan Coverage Period that is eligible for participation in the OPP.

          

    

    

    In such situations as described above, the 2020 OPP award, if any, will be paid at the time that other 2020 OPP awards are scheduled to be paid in accordance to Plan, unless otherwise specifically stated in this Plan. 
      For employees on leave, OPP awards will be paid to the employee once they return to work, are active and no longer on leave.

    

    

    EXAMPLE - OPP INCENTIVE AWARD CALCULATION

    

    

    Compensation Assumptions: January 1 – December 31:

    

    

    	•	
            Base Salary = $100,000

          

    	•	
            Target Bonus % = 25%

          

    	•	
            Total Target Bonus = $25,000 (EBITDA = $12,500, FCF = $12,500)

          

    
      
        
          	
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    Table 4:

    	 	 	 	 	 
	
            2020

            OPP Component

          	
            Assuming Minimum Goal

            Achieved (MM)

          	
            Target Payout

          	
            % of Pool Achieved

          	
            Total Payout

          
	
            EBITDA

          	
            413.5

          	
            $12,500

          	
            33%

          	
            $4,125

          
	
            FCF

          	
            220.0

          	
            $12,500

          	
            100%

          	
            $12,500

          
	 	 	 	 	
            $16,625

          
	
            Assumes $100,000 base salary and 25% target bonus $

          	 

    

    

    TIMING OF PAYMENTS

    

    

    Award payments are targeted for spring 2021 after the issuance of Thryv audited financial statements and after review and approval by the Committee and Board to eligible employees actively working and on payroll at the
      time of payment.

    

    

    DEFINITIONS

    

    

    BASE SALARY EARNINGS

    An eligible employee’s base salary earnings paid during the Plan Period as of December 31 or prorated for each eligible job(s) within the Plan period. Base salary earnings for this purpose do not include benefits,
      bonuses, overtime, or other awards.

    

    

    BOARD

    The Company’s Board of Directors.

    

    

    COMMITTEE

    The Compensation and Benefits Committee of the Board of Directors of the Company.

    

    

    COMPANY

    Thryv Holdings, Inc. and its consolidated subsidiaries.

    

    

    EBITDA

    Total Company operating income, before interest, taxes, depreciation and amortization, each calculated in accordance with GAAP, adjusted to exclude the impact of stock compensation expense.

    

    

    FREE CASH FLOW (FCF)

    Free Cash Flow approved 605 (Accounting Standard) Budget of 12/10/2019 has been adjusted for the settlement of the $50 MM Tax Liabilities assumed in the YP Acquisition.

    

    

    INDIVIDUAL TARGET OPPORTUNITY

    An eligible OPP target percentage for eligible employee based on one’s job level(s).

    

    

    PLAN PARTICIPATION EFFECTIVE DATES

    The effective date for participants who become eligible for this Plan is on January 1, 2020 or after their eligibility date. The effective date for cessation of participation in this Plan for participants who move into
      a position not eligible for this Plan is the end of the pay period in which the move occurs. Non-sales employees at the Director level and above who are hired after January 1 of the Plan Coverage Period and who do not participate in another
      function-specific incentive plan are eligible to participate in this Plan subject to pro-ration rules based on hire date.

    

    

    PLAN YEAR OR COVERAGE PERIOD

    The Plan Year is the Company’s fiscal year, January 1, 2020 through December 31, 2020.

    
      
        
          	
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      ADMINISTRATION

    

    

    Approval/Objectives Guidelines

    OPP Awards are at the sole discretion of senior management and the Board of Directors, and may or may not be granted based upon Company, functional unit, departmental, and/or individual performance in
      the plan year. If it is determined that OPP awards will be granted, senior management and the Board of Directors retains the sole discretion to set award levels and to adjust award levels and subsequent employee distributions.

    

    

    When OPP Awards are Earned

    OPP Awards are not earned, are not due, and shall not be paid, unless and until the following conditions are met: (1) the Approval/Objective Guidelines are met, (2) the Board approves Corporate
      performance and payment (3) all Plan eligibility requirements described of the Plan are met, (4) employee is employed and actively working (or on Company Approved or job protected leave) on the payment date, and (5) the payout date occurs.

    

    

    OPP incentive awards, if any, will be paid within guidelines noted within and processed with your regular payroll check. All legally required and applicable income and employment taxes and
      withholdings will be deducted from the gross incentive award paid to participants. Awards are not considered eligible compensation for the purposes of calculating 401(k) plan match and contributions, other employee benefits, such as life insurance
      calculation of medical contributions.

    

    

    Disclaimer

    This Plan is not a contract of employment OR OTHERWISE ALTER YOUR AT-WILL EMPLOYMENT STATUS and does not create any contractual rights. Any payment under the Plan or this incentive award is
      discretionary and at the will of the Company. This Plan document and the award schedules set forth herein do not constitute an express or implied promise of continued employment for any period or at all, and will not interfere in any way with a
      participant’s right to terminate or the Company’s right to terminate a participant’s employment at any time, with or without cause and with or without notice.

    

    

    The Company may terminate the Plan, or amend or modify the Plan in any respect, at any time, and without notice.

    

    

    This Plan may be superseded by federal, state, and local laws to the extent applicable.

     

    

  

  
    
      	
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