Common use of TEAM PERFORMANCE BONUS Clause in Contracts

TEAM PERFORMANCE BONUS. 21.1 The Team Performance Bonus Plan (the “Plan”) is designed to encourage and recognize teamwork and exceptional employee performance. The Plan affords employees a means of participating in the growth and success of the Company resulting from improved customer service, productivity and operating competitiveness as well as providing the potential for increased income for eligible employees. 21.2 The Team Performance Bonus Plan will be in effect during 2014, 2015, 2016, and 2017 (the “Plan Years” or, individually, “Plan Years”). For each Plan Year, all eligible non- commissioned employees will be assigned to the same team and covered by the Plan. 21.3 The team performance bonus plan will include a variety of bonus components, with relative weightings and objectives, as assigned by the Company. i. Following are examples of bonus components that may be assigned by the Company: • Trouble Tickets per 100 Access Lines • Commitments Met on Trouble • Commitments Met on Service Orders • Held Order Results • Mean Time to Repair (MTTR) • Preventative Maintenance Plan (PMP) • Repeat Rate(s) • Take the Lead Participation • Take the Lead Revenue 21.4 The Company will establish the objectives for each component no later than March 31st of the Plan Year for which they apply. The Company will communicate all objectives to the Union and employees. 21.5 For each Plan Year, the available bonus pool will be 1% of the gross annual base wages for the bargaining unit employees. The actual Payout Percentage for each Plan Year will range from a minimum of 50% to a maximum of 150% of the available bonus pool, based upon achievement of team objectives. 21.6 Plan results will be measured, and Team Performance Bonus Awards will be paid out to eligible employees, on an annual basis based on Team results. (i) In order to be eligible for a Team Performance Bonus Award payout, employees must be on the payroll as of December 31 of the Plan Year (e.g., December 31, 2014 for the bonus paid in 2015). For employees who are laid off or who retire during the Plan Year, this December 31 eligibility date does not apply; the bonus will instead be prorated based on the number of full months worked that year. (ii) For new hires and for employees who are not actively at work for 30 or more consecutive days during the Plan Year, the bonus will be prorated according to the number of full months the employee is actively at work during the Plan Year. (iii) An employee transferring or changing bonus teams for any reason during the Plan Year will receive a bonus based upon the bonus team in which the employee resides at the end of the Plan Year (December 31). Awards will not be prorated based on time spent on each team. (iv) Employees who are discharged for cause or who resign before the payout date are ineligible for any bonus payout. Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California) International Brotherhood of Electrical Workers, Local Union 1245 2014 NEGOTIATIONS FINAL SETTLEMENT AGREEMENT – NEEDLES This Memorandum of Understanding ("2014 MOU" or "this MOU") dated May 3, 2014, is agreed to by and between Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California and hereinafter referred to as the “Company” or “Frontier Communications”) and the International Brotherhood of Electrical Workers, Local Union 1245 (hereinafter the “Union” or “IBEW”) in settlement of all items regarding 2014 negotiations between the parties. It is agreed that this MOU and the new collective bargaining agreement between the Company and the IBEW will become effective on May 3, 2014, and will remain in effect through 11:59

TEAM PERFORMANCE BONUS. 21.1 (a) The Team Performance Bonus Plan (the “Plan”) is designed to encourage and recognize teamwork and exceptional employee performance. The Plan affords employees a means of participating in the growth and success of the Company resulting from improved customer service, productivity and operating competitiveness as well as providing the potential for increased income for eligible employees. 21.2 (b) The Team Performance Bonus Plan will be in effect during 20142011, 20152012, 2016, 2013 and 2017 2014 (the “Plan Years” or, individually, “Plan Years”). For each Plan Year, all eligible non- non-commissioned employees will be assigned to the same team teams and covered by the Plan. 21.3 (c) The team performance bonus plan Team Performance Bonus Plan will include a variety of bonus components, with relative weightings and objectives, as assigned by the Company. i. . Following are examples of bonus components that may be assigned by the Company: •  Trouble Tickets per 100 Access Lines • 000 Xxxxxx Xxxxx  Commitments Met on Trouble •  Commitments Met on Service Orders •  Held Order Results •  Mean Time to Repair (MTTR) •  Preventative Maintenance Plan (PMP) •  Repeat Rate(s) •  Take the Lead Participation •  Take the Lead RevenueRevenue For the 2011 Plan Year, there will be four (4) bonus components, each weighted equally at 25%. These bonus components (and objectives) are as follows: 21.4 1. Take the Lead Participation (100% monthly) 2. Take the Lead Revenue ($229,800 annually) 3. Service Order Repeat Rate (10% Improvement Over 2010 – i.e., 11.7% or lower) 4. Trouble Tickets per 100 Access Lines (1.3 per 100, or lower) (d) The Company will establish the objectives for each component no later than March 31st 31 of the Plan Year year for which they apply. The Company will communicate all objectives to the Union and employees. 21.5 (e) For each Plan Year, the available bonus pool will be 1% of the gross annual base wages for the bargaining unit employees. The actual Payout Percentage for each Plan Year will range from a minimum of 50% to a maximum of 150% of the available bonus pool, based upon achievement of team objectives. 21.6 (f) Plan results will be measured, and Team Performance Bonus Awards will be paid out to eligible employees, on an annual basis based on Team results. (i) In order to be eligible for a Team Performance Bonus Award payout, employees must be on the payroll as of December 31 1 of the Plan Year (e.g., December 311, 2014 2012 for the bonus paid in 20152013). For employees who are laid off or who retire during the Plan Year, this December 31 1 eligibility date does not apply; the bonus will instead be prorated based on the number of full months worked that year. (ii) For new hires and for employees who are not actively at work for 30 or more consecutive days during the Plan Year, the bonus will be prorated according to the number of full months the employee is actively at work during the Plan Year. (iii) An employee transferring or changing bonus teams for any reason during the Plan Year will receive a bonus based upon the bonus team in which the employee resides at the end of the Plan Year (December 31). Awards will not be prorated based on time spent on each team. (iv) Employees who are discharged for cause or who resign before the payout date are ineligible for any bonus payout. Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California) International Brotherhood of Electrical Workers, Local Union 1245 2014 NEGOTIATIONS FINAL SETTLEMENT AGREEMENT – NEEDLES This Memorandum of Understanding ("2014 MOU" or "this MOU") dated May 3, 2014, is agreed to by and between Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California and hereinafter referred to as the “Company” or “Frontier Communications”) and the International Brotherhood of Electrical Workers, Local Union 1245 (hereinafter the “Union” or “IBEW”) in settlement of all items regarding 2014 negotiations between the parties. It is agreed that this MOU and the new collective bargaining agreement between the Company and the IBEW will become effective on May 3, 2014, and will remain in effect through 11:59.

TEAM PERFORMANCE BONUS. 21.1 (a) The Team Performance Bonus Plan (the “Plan”) is designed to encourage and recognize teamwork and exceptional employee performance. The Plan affords employees a means of participating in the growth and success of the Company resulting from improved customer service, productivity and operating competitiveness as well as providing the potential for increased income for eligible employees. 21.2 (b) The Team Performance Bonus Plan will be in effect during 2014, 2015, 2016, 2016 and 2017 (the “Plan Years” or, individually, “Plan Years”). For each Plan Year, all eligible non- non-commissioned employees will be assigned to the same team teams and covered by the Plan. 21.3 (c) The team performance bonus plan Team Performance Bonus Plan will include a variety of bonus components, with relative weightings and objectives, as assigned by the Company. i. . Following are examples of bonus components that may be assigned by the Company: • Trouble Tickets per 100 Access Lines • Commitments Met on Trouble • Commitments Met on Service Orders • Held Order Results • Mean Time to Repair (MTTR) • Preventative Maintenance Plan (PMP) • Repeat Rate(s) • Take the Lead Participation • Take the Lead Revenue 21.4 (d) The Company will establish the objectives for each component no later than March 31st 31 of the Plan Year year for which they apply. The Company will communicate all objectives to the Union and employees. 21.5 (e) For each Plan Year, the available bonus pool will be 1% of the gross annual base wages for the bargaining unit employees. The actual Payout Percentage for each Plan Year will range from a minimum of 50% to a maximum of 150% of the available bonus pool, based upon achievement of team objectives. 21.6 (f) Plan results will be measured, and Team Performance Bonus Awards will be paid out to eligible employees, on an annual basis based on Team results. (i) In order to be eligible for a Team Performance Bonus Award payout, employees must be on the payroll as of December 31 3 of the Plan Year (e.g., December 313, 2014 for the bonus paid in 2015). For employees who are laid off or who retire during the Plan Year, this December 31 1 eligibility date does not apply; the bonus will instead be prorated based on the number of full months worked that year. (ii) For new hires and for employees who are not actively at work for 30 or more consecutive days during the Plan Year, the bonus will be prorated according to the number of full months the employee is actively at work during the Plan Year. (iii) An employee transferring or changing bonus teams for any reason during the Plan Year will receive a bonus based upon the bonus team in which the employee resides at the end of the Plan Year (December 31). Awards will not be prorated based on time spent on each team. (iv) Employees who are discharged for cause or who resign before the payout date are ineligible for any bonus payout. Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California) International Brotherhood of Electrical Workers, Local Union 1245 2014 NEGOTIATIONS FINAL SETTLEMENT AGREEMENT – NEEDLES This Memorandum of Understanding ("2014 MOU" or "this MOU") dated May 3, 2014, is agreed to by and between Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California and hereinafter referred to as the “Company” or “Frontier Communications”) and the International Brotherhood of Electrical Workers, Local Union 1245 (hereinafter the “Union” or “IBEW”) in settlement of all items regarding 2014 negotiations between the parties. It is agreed that this MOU and the new collective bargaining agreement between the Company and the IBEW will become effective on May 3, 2014, and will remain in effect through 11:59.

TEAM PERFORMANCE BONUS. 21.1 30.1 The Team Performance Bonus Plan (the “Plan”) is designed to encourage and recognize teamwork and exceptional employee performance. The Plan affords eligible employees a means of participating in the growth and success of the Company resulting from by encouraging and rewarding improved customer service, productivity and operating competitiveness as well as providing the potential for increased income for eligible employees. 21.2 30.2 The Team Performance Bonus Plan will be in effect during 2014, 2015, 2016, 2016 and 2017 (the “Plan Years” or, individually, “Plan YearsYear”). For each Plan Year, Year all eligible non- commissioned employees in the bargaining unit will be assigned to the same team teams and covered by the Plan. 21.3 30.3 The team performance bonus plan Team Performance Bonus Plan will include a variety of business-related bonus components, with relative weightings and objectives, as assigned by the Company. i. Following are examples of bonus components that may be assigned by the Company: • Trouble Tickets per 100 Access Lines • Commitments Met on Trouble • Commitments Met on Service Orders • Held Order Results • Mean Time to Repair (MTTR) • Preventative Maintenance Plan (PMP) • Repeat Rate(s) • Take the Lead Participation • Take the Lead Revenue 21.4 . The Company will establish and communicate the objectives Plan features (components, weightings, objectives, etc.) for each component team no later than March 31st 31 of the Plan Year for which they apply. The Company will communicate all objectives changes to the Union and employees. 21.5 For 30.4 The potential bonus pool for each Plan Year, the available bonus pool Year will be 1% of the gross annual base wages for the bargaining unit employees. The actual Payout Percentage for For each Plan Year the payout percentage within each team will range from a minimum of 500% to a maximum of 150175% of the available bonus pool, based depending upon achievement of team that team’s results, as compared to that team’s objectives. 21.6 Plan . Team Performance Bonus results will be measured, and Team Performance Bonus Awards awards will be paid out to eligible employees, on an annual basis based on Team resultsbasis. (i) 30.5 In order to be eligible for a Team Performance Bonus Award payoutaward, employees must be on the payroll as of December 31 1 of the Plan Year (e.g., December 311, 2014 2012 for the bonus paid in 20152013). . 30.5.1 For employees who are laid off or who retire during the Plan Year, this the December 31 1 eligibility date does not apply; the bonus will instead be prorated based on the number of full months worked that yearby the employee during the Plan Year. (ii) 30.5.2 For new hires and for employees who are not actively at work for 30 or more consecutive days during the Plan Year, the bonus will be prorated according to based on the number of full months worked by the employee is actively at work during the Plan Year. (iii) An employee 30.5.3 Employees transferring or changing bonus teams for any reason during the Plan Year will receive a bonus based upon the bonus team in which the employee resides at the end of the Plan Year (December 31). Awards will not be prorated based on time spent on each team. (iv) 30.5.4 Employees who resign or who are discharged for cause or who resign before the payout date are ineligible for any bonus payout. Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California) International Brotherhood of Electrical Workers, Local Union 1245 2014 NEGOTIATIONS FINAL SETTLEMENT AGREEMENT – NEEDLES This Memorandum of Understanding ("2014 MOU" or "this MOU") dated May 3, 2014, is agreed to by and between Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California and hereinafter referred to as the “Company” or “Frontier Communications”) and the International Brotherhood of Electrical Workers, Local Union 1245 (hereinafter the “Union” or “IBEW”) in settlement of all items regarding 2014 negotiations between the parties. It is agreed that this MOU and the new collective bargaining agreement between the Company and the IBEW will become effective on May 3, 2014, and will remain in effect through 11:59.

TEAM PERFORMANCE BONUS. 21.1 a. The Team Performance Bonus Plan (the “Plan”) team performance bonus is designed to encourage and recognize teamwork and exceptional employee performancethrough incentive compensation. The Plan affords It is intended to afford employees a means of participating greater role in the growth and success of the Company resulting from by encouraging and rewarding improved customer service, productivity and operating competitiveness as well as providing competitiveness. All bargaining unit employees not receiving sales commission compensation will be eligible for the potential for increased income for eligible employeesbonus payment. 21.2 b. The Team Performance Bonus Plan will be in effect during 2014, 2015, 2016, and 2017 (the “Plan Years” or, individually, “Plan Years”). For each Plan Year, all eligible non- commissioned employees will be assigned to the same team and covered by the Plan. 21.3 The team performance bonus plan will shall include a variety of business-related bonus components, with relative weightings and objectives, as assigned by the Company. i. Following are examples of bonus components that may be assigned by . The Company, with input from the Company: • Trouble Tickets per 100 Access Lines • Commitments Met on Trouble • Commitments Met on Service Orders • Held Order Results • Mean Time to Repair (MTTR) • Preventative Maintenance Plan (PMP) • Repeat Rate(s) • Take the Lead Participation • Take the Lead Revenue 21.4 The Company Union will establish the objectives for each component Plan features (components, weightings, objectives, etc.) with the objective of ensuring relevance and fairness to bargaining unit employees, and communicate them no later than March 31st 31 of the Plan Year for which they apply. Following are examples of bonus components: *Commitments met on Trouble *Commitments Met on Service Orders *Repeat Trouble Calls *Repeat Service Order Calls *Mean Time to Repair (MTTR) *Preventative Maintenance Plan (PMP) *Access Line Net Activations *Revenue/Sales Goal(s) *Other Business-Related Components as Determined Necessary c. The Company will communicate all objectives to the Union and employees. 21.5 For each Plan Year, the available bonus pool payout range will be 1% of the gross annual base wages for the bargaining unit employees. The actual Payout Percentage for each Plan Year will range from a minimum of 5080% to a maximum of 150% 120%. d. Goals shall be established and bonuses awarded for the Fort Dodge, Xxxxxxx and Le Mars markets. The Company shall inform the Union of the available bonus poolgoals no later than March 31 of each year. Plan periods shall be annual during the term of the contract for 2016, based upon achievement of team objectives2017 and 2018. 21.6 Plan results will be measurede. The Company shall provide a bonus pool of 1.5% in 2016, 1.5% in 2017 and Team Performance Bonus Awards will 1.5% 2018 of the gross base wages for the employees in the bargaining unit as of the end of each plan year. Bonuses shall be paid out to eligible employees, on an annual basis based on Team resultsor about March 31 of each year. (i) In order to be eligible for a Team Performance Bonus Award payoutf. Effective January 1, employees must be 2016; New hires engaged on the payroll as of December 31 of the Plan Year (e.g.or before November 1, December 31, 2014 for the shall have their bonus paid in 2015). For employees who are laid off or who retire during the Plan Year, this December 31 eligibility date does not apply; the bonus will instead be prorated based on the number of full months worked that a new hire is employed during the plan period. Employees hired after November 1 shall not be eligible for a bonus for the plan period in which they were hired. g. All employees covered under this Agreement shall be eligible for payments in accordance with the plan. Such payments shall be payable in accordance with the plan, but in any event, no later than March 31 following each subsequent plan year. (ii) For new hires and for employees who are not actively at work for 30 or more consecutive days during the Plan Year, the bonus will be prorated according to the number of full months the employee is actively at work during the Plan Year. (iii) An employee transferring or changing bonus teams for any reason during the Plan Year will receive a bonus based upon the bonus team in which the employee resides at the end of the Plan Year (December 31). Awards will not be prorated based on time spent on each team. (iv) Employees who are discharged for cause or who resign before the payout date are ineligible for any bonus payout. Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California) International Brotherhood of Electrical Workers, Local Union 1245 2014 NEGOTIATIONS FINAL SETTLEMENT AGREEMENT – NEEDLES This Memorandum of Understanding ("2014 MOU" or "this MOU") dated May 3, 2014, is agreed to by and between Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California and hereinafter referred to as the “Company” or “Frontier Communications”) and the International Brotherhood of Electrical Workers, Local Union 1245 (hereinafter the “Union” or “IBEW”) in settlement of all items regarding 2014 negotiations between the parties. It is agreed that this MOU and the new collective bargaining agreement between the Company and the IBEW will become effective on May 3, 2014, and will remain in effect through 11:59

TEAM PERFORMANCE BONUS. 21.1 The Team Performance Bonus Plan (the “Plan”) is designed to encourage and recognize teamwork and exceptional employee performance. The Plan affords employees a means of participating in the growth and success of the Company resulting from improved customer service, productivity and operating competitiveness as well as providing the potential for increased income for eligible employees. 21.2 The Team Performance Bonus Plan will be in effect during 20142011, 20152012, 2016, 2013 and 2017 2014 (the “Plan Years” or, individually, “Plan Years”). For each Plan Year, all eligible non- non-commissioned employees will be assigned to the same team teams and covered by the Plan. 21.3 The team performance bonus plan will include a variety of bonus components, with relative weightings and objectives, as assigned by the Company. i. Following are examples of bonus components that may be assigned by the Company: •  Trouble Tickets per 100 Access Lines • 000 Xxxxxx Xxxxx  Commitments Met on Trouble •  Commitments Met on Service Orders •  Held Order Results •  Mean Time to Repair (MTTR) •  Preventative Maintenance Plan (PMP) •  Repeat Rate(s) •  Take the Lead Participation •  Take the Lead Revenue ii. For the 2011 Plan Year, there will be four (4) bonus components, each weighted equally at 25%. These bonus components (and objectives) are as follows: 1. Take the Lead Participation (100% monthly) 2. Take the Lead Revenue ($28,800 annually) 3. Service Order Repeat Rate (Maintain Below 6.0%) 4. Trouble Tickets Repeat Rate (Maintain Below 10%) 21.4 The Company will establish the objectives for each component no later than March 31st 31 of the Plan Year for which they apply. The Company will communicate all objectives to the Union and employees. 21.5 For each Plan Year, the available bonus pool will be 1% of the gross annual base wages for the bargaining unit employees. The actual Payout Percentage for each Plan Year will range from a minimum of 50% to a maximum of 150% of the available bonus pool, based upon achievement of team objectives. 21.6 Plan results will be measured, and Team Performance Bonus Awards will be paid out to eligible employees, on an annual basis based on Team results. (i) In order to be eligible for a Team Performance Bonus Award payout, employees must be on the payroll as of December 31 1 of the Plan Year (e.g., December 311, 2014 2012 for the bonus paid in 20152013). For employees who are laid off or who retire during the Plan Year, this December 31 1 eligibility date does not apply; the bonus will instead be prorated based on the number of full months worked that year. (ii) For new hires and for employees who are not actively at work for 30 or more consecutive days during the Plan Year, the bonus will be prorated according to the number of full months the employee is actively at work during the Plan Year. (iii) An employee transferring or changing bonus teams for any reason during the Plan Year will receive a bonus based upon the bonus team in which the employee resides at the end of the Plan Year (December 31). Awards will not be prorated based on time spent on each team. (iv) Employees who are discharged for cause or who resign before the payout date are ineligible for any bonus payout. Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California) International Brotherhood of Electrical Workers, Local Union 1245 2014 NEGOTIATIONS FINAL SETTLEMENT AGREEMENT – NEEDLES This Memorandum of Understanding ("2014 MOU" or "this MOU") dated May 3, 2014, is agreed to by and between Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California and hereinafter referred to as the “Company” or “Frontier Communications”) and the International Brotherhood of Electrical Workers, Local Union 1245 (hereinafter the “Union” or “IBEW”) in settlement of all items regarding 2014 negotiations between the parties. It is agreed that this MOU and the new collective bargaining agreement between the Company and the IBEW will become effective on May 3, 2014, and will remain in effect through 11:59.

TEAM PERFORMANCE BONUS. 21.1 (a) The Team Performance Bonus Plan (the “Plan”) is designed to encourage and recognize teamwork and exceptional employee performance. The Plan affords employees a means of participating in the growth and success of the Company resulting from improved customer service, productivity and operating competitiveness as well as providing the potential for increased income for eligible employees. 21.2 (b) The Team Performance Bonus Plan will be in effect during 20142017, 20152018, 2016, 2019 and 2017 (the “Plan Years” or, individually, “Plan Years”)2020. For each Plan Year, all eligible non- non-commissioned employees will be assigned to the same team teams and covered by the Plan. 21.3 (c) The team performance bonus plan Team Performance Bonus Plan will include a variety of bonus components, with relative weightings and objectives, as assigned by the Company. i. . Following are examples of bonus components that may be assigned by the Company: •  Trouble Tickets per 100 Access Lines • 000 Xxxxxx Xxxxx  Commitments Met on Trouble •  Commitments Met on Service Orders •  Held Order Results •  Mean Time to Repair (MTTR) •  Preventative Maintenance Plan (PMP) •  Repeat Rate(s) •  Take the Lead Participation •  Take the Lead Revenue 21.4 (d) The Company will establish the objectives for each component no later than March 31st 31 of the Plan Year year for which they apply. The Company will communicate all objectives to the Union and employees. 21.5 (e) For each Plan Year, the available bonus pool will be 1% of the gross annual base wages for the bargaining unit employees. The actual Payout Percentage for each Plan Year will range from a minimum of 50% to a maximum of 150% of the available bonus pool, based upon achievement of team objectives. 21.6 (f) Plan results will be measured, and Team Performance Bonus Awards will be paid out to eligible employees, on an annual basis based on Team results. (i) In order to be eligible for a Team Performance Bonus Award payout, employees must be on the payroll as of December 31 3 of the Plan Year (e.g., December 313, 2014 for the bonus paid in 2015). For employees who are laid off or who retire during the Plan Year, this December 31 1 eligibility date does not apply; the bonus will instead be prorated based on the number of full months worked that year. (ii) For new hires and for employees who are not actively at work for 30 or more consecutive days during the Plan Year, the bonus will be prorated according to the number of full months the employee is actively at work during the Plan Year. (iii) An employee transferring or changing bonus teams for any reason during the Plan Year will receive a bonus based upon the bonus team in which the employee resides at the end of the Plan Year (December 31). Awards will not be prorated based on time spent on each team. (iv) Employees who are discharged for cause or who resign before the payout date are ineligible for any bonus payout. Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California) International Brotherhood of Electrical Workers, Local Union 1245 2014 NEGOTIATIONS FINAL SETTLEMENT AGREEMENT – NEEDLES This Memorandum of Understanding ("2014 MOU" or "this MOU") dated May 3, 2014, is agreed to by and between Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California and hereinafter referred to as the “Company” or “Frontier Communications”) and the International Brotherhood of Electrical Workers, Local Union 1245 (hereinafter the “Union” or “IBEW”) in settlement of all items regarding 2014 negotiations between the parties. It is agreed that this MOU and the new collective bargaining agreement between the Company and the IBEW will become effective on May 3, 2014, and will remain in effect through 11:59.

TEAM PERFORMANCE BONUS. 21.1 (a) The Team Performance Bonus Plan (the “Plan”) is designed to encourage and recognize teamwork and exceptional employee performance. The Plan affords employees a means of participating in the growth and success of the Company resulting from improved customer service, productivity and operating competitiveness as well as providing the potential for increased income for eligible employees. 21.2 (b) The Team Performance Bonus Plan will be in effect during 20142017, 20152018, 2016, 2019 and 2017 (the “Plan Years” or, individually, “Plan Years”)2020. For each Plan Year, all eligible non- non-commissioned employees will be assigned to the same team teams and covered by the Plan. 21.3 (c) The team performance bonus plan Team Performance Bonus Plan will include a variety of bonus components, with relative weightings and objectives, as assigned by the Company. i. . Following are examples of bonus components that may be assigned by the Company: • Trouble Tickets per 100 Access Lines • Commitments Met on Trouble • Commitments Met on Service Orders • Held Order Results • Mean Time to Repair (MTTR) • Preventative Maintenance Plan (PMP) • Repeat Rate(s) • Take the Lead Participation • Take the Lead Revenue 21.4 (d) The Company will establish the objectives for each component no later than March 31st 31 of the Plan Year year for which they apply. The Company will communicate all objectives to the Union and employees. 21.5 (e) For each Plan Year, the available bonus pool will be 1% of the gross annual base wages for the bargaining unit employees. The actual Payout Percentage for each Plan Year will range from a minimum of 50% to a maximum of 150% of the available bonus pool, based upon achievement of team objectives. 21.6 (f) Plan results will be measured, and Team Performance Bonus Awards will be paid out to eligible employees, on an annual basis based on Team results. (i) In order to be eligible for a Team Performance Bonus Award payout, employees must be on the payroll as of December 31 3 of the Plan Year (e.g., December 313, 2014 for the bonus paid in 2015). For employees who are laid off or who retire during the Plan Year, this December 31 1 eligibility date does not apply; the bonus will instead be prorated based on the number of full months worked that year. (ii) For new hires and for employees who are not actively at work for 30 or more consecutive days during the Plan Year, the bonus will be prorated according to the number of full months the employee is actively at work during the Plan Year. (iii) An employee transferring or changing bonus teams for any reason during the Plan Year will receive a bonus based upon the bonus team in which the employee resides at the end of the Plan Year (December 31). Awards will not be prorated based on time spent on each team. (iv) Employees who are discharged for cause or who resign before the payout date are ineligible for any bonus payout. Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California) International Brotherhood of Electrical Workers, Local Union 1245 2014 NEGOTIATIONS FINAL SETTLEMENT AGREEMENT – NEEDLES This Memorandum of Understanding ("2014 MOU" or "this MOU") dated May 3, 2014, is agreed to by and between Citizens Telecommunications Company of California Inc. (D.B.A. Frontier Communications of California and hereinafter referred to as the “Company” or “Frontier Communications”) and the International Brotherhood of Electrical Workers, Local Union 1245 (hereinafter the “Union” or “IBEW”) in settlement of all items regarding 2014 negotiations between the parties. It is agreed that this MOU and the new collective bargaining agreement between the Company and the IBEW will become effective on May 3, 2014, and will remain in effect through 11:59.