2009 BSD Regional Sales Conference

1. 2009 BSD Regional Sales Conference

2. BSD Contract Sales 2009 Deployment Presenter Name

3. Strategy Statement & Redeployment Overview • Strategy Statement • Provide our customers with a differentiated value proposition that improves loyalty and drives profitable • growth across all customer segments. • To achieve project 10x12, we will improve our presence in the SMB segment and create a better balance • of customers by utilizing improved market research, competitive intelligence and financial analytics.” • Redeployment Action Items • SMB- Deployment is Critical for Success in 2009 • The Small customer segment yields over 23 percentage points greater operating profit contribution, vs. Global customers • “Growing the file” in SMB, via a dramatic increase in new accounts/customers buying is critical for 2009 • Improved Productivity of the Sales Force will be vital for 2009 • Accelerated new account acquisition via the Territory Manager model (more reps selling new business) & TAM support • Reduced cost of sales and the need for efficiency • Public Sector, Large Accounts & Global teams will be focused on more selective acquisition & driving improved profitability & segment expertise • Simplified deployment structure is intended to drive new SMB business & improve retention • Moving from 48 distinct compensation plans & job descriptions to 16 • Increased “Customer Touches” and Engagement (via Better Field Coverage Combined with Multi-Channel Contact Strategy) is Key • A well-defined and executed multi-mode contact strategy coverage model is being developed for every customer segment • There Is A Need to Understand Our Competition More Effectively • Value Proposition by customer segment needs will be clearly defined, differentiated and executed • 2009 Compensation and Goaling Considerations • Adjustments to the plans relative to the balancing of acquisition & retention will be important • Plans will emphasize the criticality of new business, file growth, and include a team component

4. 2009 Deployment Plan Must Meet Certain Criteria to Ensure Success Criteria for evaluating 2009 plan • Driving a dramatic number of new Small & Medium Business accounts (30,000+) will be critical to our success in 2009 • Redeployment enables significantly more resources to be focused on selling new business and growing the base File QUANTITY • Increase average spend per ship-to, through utilization of Contact Strategy initiatives & customer lifecycle model • Increase IMU% in large segments by: • Improving the product mix to higher margin items • Improving pass-through rate of cost increases File QUALITY • Maximize efficiency and effectiveness of current sales team • Leverage lower cost channels (e.g., TAM, Catalog) with the right customers and right contact approach • Multi-channel approach – not just shifting between channels, but managing the customer experience across channels Cost to Serve

5. 2009 Deployment & Market Coverage Small & Med. Business Large & Global (Private Sector) Public Sector Convert Grow Retain Convert Grow Retain Convert Grow Retain Market/Customer Profile Account Size: Small = $3K-75K; Med=$76K-150K Prospects: 20 WCE’s-500 WCE’s Market/Customer Profile Account Size: $151K-Multi $MM Prospects & Customers: 500 WCE’s+ Market/Customer Profile Account Size: $150K+ Prospects: 500 WCE’s+ • Resources • Vertical Mkt. Manager • Manages $150K public sector accounts & sells new >$150K+ public sector accts • Specialist/Trusted Business Advisor in the Public Sector segment • NAM- US Communities • Deployed in regions • NAM- Federal Gov’t. • Deployed in regions • Director, Public Sector • Deployed in geographic • regions • US Comm. Dir. • Federal/GSA Director • State Govt. Director • Resources • Major Account Manager • Manages $150K+ • private sector accounts. No • formal teaming • Responsible for partnering with BDMs, once accounts “graduate” • Major Account BDM • Develops new business in • the $150K+ range • Teaming is not in place in ’09 • Global Accounts Manager • Manages $1M+, multi-CSC private sector accounts • Global Accounts BDM • Develops new business in the $1M+ range (multi-CSC) • Resources • Feet-on-the-Street Reps • Deployed in select markets • Prospect to 10-100 WCE’s • Immediate transition to TAM • TAM (Inside Sales) • Manage $3K-$15K current • and new customers • 10-50 WCE Prospecting & • New Accts (pilot) • Appointment setting for TM’s • Territory Development Mgr. • Manage $15K-$150K • customers (private & public) • Prospects for new business • (20-500 WCE’s) • Geographically-based

6. Solutions & Overlay Organization Furniture DPS BreakRoom & Coffee Convert Grow Retain Convert Grow Retain Convert Grow Retain • Resources. • Solutions Development Mgr.-Furniture • Approximately one per RSD • Market, where required • Serves as a customer- • facing resource and as a • training resource • Furniture TAM and TAM Manager • Focused on supporting SMB • customers & simple coded orders • District Sales Manager • 2-3 for the U.S. • National Director • Intended to serve as a field • and corporate interface for the category • Support Structure • Focused on supporting profitable “in-stock” furniture business, as well as “simple” Non-codes • Resources • While there won’t have any • dedicated resources to Break • Room & Coffee, we will • continue to aggressively • introduce all of our existing • and new customers to our • Break Room and coffee • solutions • Break Room and Coffee • growth expectations will be • included in the ’09 • compensation plans • Resources • Solutions Development Mgr.-DPS • Consolidation of all roles within DPS to one sales position, to align with the other solutions category positions • Reports into the Reg. Sales Manager, DPS • National Accounts Manager-DPS • Responsible for partnering with the Global Accounts teams on high value DPS opportunities • Regional Sales Manager-DPS • Focuses on managing DPS reps in a larger geography. • Director, DPS Sales • Accountable for division-level sales in the DPS category • Partners with Field RVPs and RSDs

7. Deployment Guidelines • Feet-on-the-Street (FOS) • Will be focused on high prospecting opportunities in high density areas • New accounts 10-29WCW – sign up and migrate to TAM Contract • New Accounts with 30-500 WCW – sign up and transfer to Territory Development Managers • Revenue counts against base business, rather than the new business goal • Target of 4 accounts/ week/ person at 10+WCW • Territory Development Manager • Manage accounts between $15K and $150K annualized spend (excluding Parented Large, Global, and Public) • Base territory size is ~$2.0M (Range from $1.8–2.4M). • Territories do not vary based on prospecting opportunity/ time focused on acquisition at market specific level? (Ideally, there will be different territory sizes (i.e. primary and secondary markets – different ranges) • New Business - $160K* in annual business , 60 accounts billing at least $500/month (guidance) • FOS Acquired accounts with 30+ WCW will be assigned to the Territory Development Manager • Accounts 10-30 WCW – co-managed by Teritory Manager & TAM “Inside Sales Partner” • TDMs will focus on 30+ WCW accounts – sign up and keep • New Accounts with less than 30 WCEs will be jointly supported by a TAM “Inside Sales Partner” • Expectations: • 1 buying account/ week ($6K/yr) • 6 appointments/ week/ rep • Base Business: uphold contact strategy expectations • Targets-- Base $2.0M ($1.8 to $2.4); flat growth for ‘09; new business $160K, 28% blended IMU expectation * Note: Pertaining to the TDM position, the “60 New Accounts Billing at least 500 per month” pertains to the Team goal aspect and is a guideline.

8. Deployment Guidelines Major Accounts Manager, Major Accounts BDM, GAM, Global BDM – Large/Global • Accounts above $150K annualized spend (excluding Global/Public) • Rule: In-Market - no multiple CSC • MABDMs revenue applies to in-market and out-of-market sales • Optimize field assignments @ ship-to level • Global Accounts Manager -- Accounts $1M+ in annualized spend (Multiple CSC) • TAM; or local – potentially SC, 1-2 Specialists that just manage Global Accounts Vertical Market Manager (Public) • TAM will manage $3-15K (non-parented) Public accounts. TAM will have a group that is dedicated to Public accounts. • Territory Size for VMM ~$6M • Goals will be focused on growth (higher than Territory Manager base growth). • VMM reports into DSMs in the RSD markets • VMM targets Public Sector prospects above 500 WCE’s Furniture • 1 FAM per RSD market reporting to RSD (~20 when necessary). • Keep 1 Furn TAM Manager with 7 TAM Inside People – focused on SMB growth (Point Person w/ Merchandising) • Maintain Furniture Sales Director and potentially one DSM for Furniture in the East & one in the West • Very limited support office staff (designer, 3-4 support) Design, Print & Ship (DPS) • Similar to ’08 Deployment, with exception of DPS pilots Tech Depot • Tech Depot sales integrated into baseline goals & Tech Depot becomes a category similar to DPS, Furniture & Coffee

9. Deployment Guidelines TAM • TAM base will include accounts active in the last 90 days with annualized spend between $3 and $15K. • Accounts between $3 and $15K that have NOT had activity in the last 90 days but with purchases in 90-180 days, will be added to TAM Win-Back/ Prospecting Programs and targeted to Territory Development Managers. • Accounts between $3 and $15K that have NOT had activity in more than 180days will be added to Mail Stream and potentially TAM/Territory Development Manager Prospecting Lists. • TAM Goals will align to the TAM goals of the field/District Sales Managers. • New accounts with 1-30 WCW (from Mail/FOS/TM) will immediately be dually-assigned to TAM • Besides TAM Contract, TAM will also run Win-Back, Mail Stream Inbound (after Customer Service), Welcome, and Prospecting Programs • TAM base will be pre-assigned before TOPS. • The Field will have the ability to pull but not push existing accounts into TAM, based on current customer knowledge/ relationship. However, business rules will apply for new customers. Mail Stream • Base of Mail Stream will be defined as accounts (rather than ship-tos) with annualized spend between $0 and $3K and active in the last 90-120 days. Mail Stream predominately excludes Global, Public, and parented accounts. • Accounts in Mail Stream will be potentially be attached to a TAM-Inbound group and Inbound calls to will be routed initially to customer service with the option to be escalated to TAM • Accounts between $0 and $3K that have NOT had activity in the last 90-120 days, may potentially be added to Win-Back/ Prospecting Programs or will be re-targeted to Territory Development Managers.

10. Go-to-Market Deployment & Segmentation Details Acquisition- New Accounts- ”New to File” Share of Wallet Growth & Retention

11. 3,45 Existing Customer File will be Covered with Clear Growth and Retention Accountability • Source: OD Data, Teradata; Excludes Recency considerations

12. BSD Contract Sales Proposed Positions-“From & To” New Position Current Positions NEW Positions AM I BDM I Territory Dev. Mgr. AM II Vertical Mkt. Mgr. BDM II Major Acct. Mgr. AM III Major Acct. BDM BDM III Global Acct AM Global Acct. Mgr. Global Acct. BDM Global Acct BDM Nat’l Acct. Mgr (Public) Nat’l Acct Mgr Nat’l Acct. Mgr (Private) DSM DSM RSD RSD

13. 2009 Incentive Compensation Plans Presenter Name

14. BSD 2009 Incentive Plans Objectives: • Easy to understand for all associates • Motivating • Simple to implement and administer • Aligned to business objectives & results (SMB Growth, Customer Retention & SOW Growth) • Objectives and targets clear and communicated timely • Consistent over a longer period • Affordable • Plans are effective & market competitive • Effective at driving desired business results.

15. Key Messages - 2009 Compensation Plans • The 2009 BSD Incentive Compensation & Goaling plans are straightforward, with a increased focus on top line growth via new account commission incentives. • Top-line growth and share of wallet expansion are key components, based on the continued strong mix of sales & IMU. • The 2009 plans re-establish a focus on our key solutions components, inclusive of DPS, Technology, Furniture and Break room. • The plans remain market competitive and are designed to motivate, inspire and reward job proficiency and sales excellence. • The plans incorporate team components that help drive overall business performance, rather than simply individual performance. • The plans are affordable and will help us drive towards our objectives of driving new business in the SMB segment, improving profitability in all customer segments and reducing our cost to serve.

16. Territory Development Manager - TDM • Both Sales and IMU% YTD attainment must be at least 90% to earn sales, IMU% or New Accounts incentives/ commission. • YTD IMU% on new accounts must be above 23% to earn commission. • Team Sales of 95% must to met to be eligible for the team sales component. • Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions. This only includes TDM new accounts. • Team Sales and Team Solutions will be paid regardless of individual performance.

17. Territory Development Manager - TDM • Both Sales and IMU% YTD attainment must be at least • 90% to earn New Accounts incentive/commission.

18. New Account Criteria - TDM • What is our definition of a “TDM New Account”? • Inactive accounts in Q4’08 at the account level • New Account Set-Ups (never ordered before) – starting with new accounts from December, 2008 • Exclude TAM and FOS as new account; revenue credit applies to account base only • Reactivation Bucket – TAM pushes to Field, in which case it would count, total account ownership transfers • For Major Accounts, we will continue the rolling 12 months • When do we start counting a “TDM New Account”? • Dollar one > $1 on account • How long do we “track” a “ TDM New Account”? • For fiscal 2009 beginning with new wins December, 2008 • What are Team New Accounts? • Total number the new accounts opened by TDMs in the District • Team Goal = 5 new accounts per TDM per month

19. Territory Development Manager Examples

20. Major Accounts Manager - MAM • Both Sales and IMU% YTD attainment must be at least 90% to earn either component. • Team Sales of 95% must be met to be eligible for the team sales component. • Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions. • Team Sales and Team Solutions will be paid regardless of individual performance.

21. Major Accounts Business Development Manager - MABDM • YTD Sales attainment must be at least 90% to earn commission. YTD IMU% must be above 17% to earn commission. • Team Sales of 95% must be met to be eligible for the team sales component. • Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions. • Team Sales and Team Solutions will be paid regardless of individual performance.

22. Major Accounts Business Development Manager - MABDM • YTD Sales attainment must be at least 90% to earn commission.

23. New Account Criteria- Major Accounts • What is our definition of a “ Major New Account”? • Inactive accounts in Q4’08 at the account level • New Account Set-Ups (never ordered before) – starting with new accounts from December, 2008 • When do we start counting a “ Major New Account”? • Dollar one > $1 on account • How long do we “track” a “Major New Account”? • For the first 12 months after first order • Accounts opened in 2008 that have not graduated will continue to be included until 12 the months have passed. • What are Team New Accounts? • Total number the new accounts opened by TDMs in the District • Team Goal = 5 new accounts per TDM per month

24. Vertical Market Manager - VMM • Both Sales and IMU% YTD attainment must be at least 90% to earn either component. • Team Sales of 95% must to met to be eligible for the team sales component. • Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions. • Team Sales and Team Solutions will be paid regardless of individual performance.

25. Service Consultants • Sales YTD attainment must be at least 90% to earn the incentive.

26. District Sales Manager - DSM • Both Sales and IMU% YTD attainment must be at least 90% to earn either component. • Team Sales of 95% must to met to be eligible for the team sales component. • Team number of new accounts goal must be met to be eligible for Team Sales and Team Solutions. • Team Sales and Team Solutions will be paid regardless of individual performance.

27. Director of Sales • Both Sales and IMU% YTD attainment must be at least 90% to earn either component. • Team Sales of 95% must to met to be eligible for the team sales component. • Team Sales and Team Solutions will be paid regardless of individual performance.

28. Global Accounts Manager - GAM • Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component. • Team Pocket Margin % and Team Solutions will be paid regardless of individual performance. • ** Dependent on ability to track

29. Global Business Development Manager - GBDM • Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component. • Team Pocket Margin % and Team Solutions will be paid regardless of individual performance. • **Dependent on ability to track

30. National Account Manager – Private - NAM • Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component. • Team Pocket Margin % and Team Solutions will be paid regardless of individual performance. • **Dependent on ability to track

31. National Accounts Manager – Public - NAM • Both Sales and IMU% YTD attainment must be at least 90% to earn either component. • Team Sales and Team Solutions will be paid regardless of individual performance. • Team: Region

32. District Sales Manager – Global - DSM • Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component. • Team Sales and Team Pocket Margin % will be paid regardless of individual performance. • **Dependent on ability to track.

33. Director of Sales - Global • Both Sales and Pocket Margin % YTD attainment must be at least 90% to earn either component. • Team Pocket Margin % and Team Solutions will be paid regardless of individual performance.

34. Solutions Development Manager – SDM(Furniture, DPS, Tech Depot, HP Liaison) • Both Sales and IMU% YTD attainment must be at least 90% to earn either component. • IMU$ for Tech Depot instead of IMU%

35. National Account Manager – DPS - NAM • Both Sales and IMU% YTD attainment must be at least 90% to earn either component.

36. Regional Sales Manager – RSM – Furn – DPS - TD • Both Sales and IMU% YTD attainment must be at least 90% to earn either component.

37. Director of Sales – Promo-Global-DPS • Both Sales and IMU% YTD attainment must be at least 90% to earn either component.

38. Director of Sales - DPS • Both Sales and IMU% YTD attainment must be at least 90% to earn either component.

39. Furniture TAM • Both Sales and IMU% YTD attainment must be at least 90% to earn either component. • Goal based on assigned RSDs

40. Furniture TAM Manager • Both Sales and IMU% YTD attainment must be at least 90% to earn either component. • Goal based on assigned RSDs

41. 2009 Business Guidelines

42. 2009 Goaling Targets- Preliminary Position (partial listing) ’09 Year-over-Year GrowthExpectation • TAM (applies to DSMs) -6% • Territory Development Mgr. 0% on base, $160K New Business • Vertical Market Manager 4% growth on base, inclusive of New Business • Major Accounts Manager 2% • Major Accounts BDM $1.6 MM in new business • Global Accounts Mgr. 4% • Global BDM $2.5MM in new business

43. Goal Adjustments - Revenue Revenue Adjustment and Calculations ( Beginning of Year and Mid-Year Adjustment requests will be reviewed and approved by SCRB) • A single account, group of parented accounts, regional, national affiliates, lost national accounts, one time orders, or projects must be equal to or greater than 5% of proposed territory base goal. • Example: $2,000,000*.05=$100,000 • 100% relief to the Rep and DSM IMU Adjustment and Calculations (Beginning of Year and Mid-Year Adjustment requests will be reviewed and approved by SCRB) • A single account, group of parented accounts, regional, national affiliates, or lost national accounts must be equal to or greater than 5% of proposed territory base goal and the IMU run rate is lower than the IMU goal by at least 300 basis points • Example: $2,000,000*.05=$100,000 & IMU Goal is 30.00%/IMU Actual is 22.00% • 2008 Conversion to US Communities goal recalculated and adjusted based on Sept, Oct, and Nov 2008 run rate when it is lower than the IMU goal by at least 150 basis points. There is no revenue threshold for this adjustment. • 2008 Contract Renegotiations impacting the IMU by more than 300 basis points • The IMU Trend will be evaluated (minimum of prior 3 months). The goal adjustment will be calculated to bring the IMU attainment at the account level to 95%.

44. Goal Adjustments • New Hires • Establish base goal on the most recent 12 month sales history. • Apply beginning of year TOPS Goaling Guidelines. Any adjustments within the guidelines will not roll to the DSM. • No guarantees unless in writing with prior approval by RVP. • Bonus eligible first day of fiscal month following 2 full fiscal months of employment Windfalls • Criteria: • Revenue$ & IMU$ Trade for customers, one-time orders, or projects with actual revenue exceeding 5% of goal. • Adjustment: • Adjustment applied to rep and DSM. • Adjust the customer, project, or one-time revenue based on actual IMU% attainment. • Requires SVP and RVP approval