NEW VACATION PROGRAM

1. NEW YORK UNIVERSITY SCHOOL OF MEDICINE NEW VACATION PROGRAM 12/13/2006

2. Contents Transition from the Current to the New Vacation Program Current Vacation Program New Vacation Program Report of Vacation Balances on Pay Stubs Q & A

3. Transition from the Current to the New VacationProgram New Vacation Program beginning Dec 31,2006 for all staff that are eligible for vacation benefits. The purpose of this change is to reduce the School’s financial liability without reducing the amount of vacation employees are eligible to take each year. The reduction in this liability will be achieved over time by transitioning to a new vacation program that will limit the amount of vacation pay employees may receive upon termination of employment.

4. Current Vacation Program What is changing The amount of vacation employees currently accumulate will remain the same Employees will continue to “earn” vacation up to the current maximum allowed which is equal to 2 times the annual amount of vacation The vacation balance will continue to appear at the bottom of each pay stub Employees will have 3 vacation banks that will be credited and deducted each pay period Every “year” of the new program will be based on the “Academic Year”, which is the same as the Medical School’s fiscal year. However, the first year of the new program will begin as of 12/31/06 & continue through the last pay period ending in Aug 2007. What is NOT changing

5. New Vacation Program 1ST Balance / Bank The “accrued” vacation balance will serve as the first bank of time from which time taken on or after 12/13/2006 will be deducted. “Accrued” Vacation The New Vacation Program identifies vacation balances credited to an employee within three banks, outlined as follows: If an employee terminates employment (or transfers to the University or NYU Hospitals Center) before using her/his accrued vacation balance (s)he will be eligible for terminal vacation pay for the amount of unused “accrued” vacation, subject to appropriate notice of resignation. = unused vacation balance “accrued” prior to Dec, 31 2006 The “accrued” balance that is not taken will remain available from year to year Every hour of vacation time taken, will be the first deducted from the balance that was “accrued” until all this balance is exhausted After the pay period ending 12/30/06, no further vacation will accumulate and be credited to this balance. 2nd Balance / Bank Each Academic Year Cycle begins with the 1st pay period ending in Sept and ends with the last pay period ending in August. “Earned” Vacation Every hour of vacation time earned in the current academic year will be reflected in this bank. = unused vacation balance “earned” in the CURRENT academic Year, Jan 07 Once you exhaust your “accrued” balance (the 1st balance referred to previously), any subsequent time taken will be deducted from this bank.

6. New Vacation Program 3rd Balance / Bank Deductions from this balance for time taken are made after all balances in the “accrued” and “earned” banks are exhausted. “Carry Over” Vacation The maximum balance you can have in this bank is equal to one year’s worth of vacation hours earned. = unused “earned” vacation Balance from the PRIOR Academic Year Unused “Carry Over” Vacation is not payable upon termination of employment (or transfer to the University or NYU Hospitals Center). Employees will not be credited any time in this bank during the course of the year since your unused “earned” balance as of the end of the academic year are moved into this bank as of the first full pay period beginning in Sept up to the maximum allowed in the carryover.

7. Sequence of Vacation Usage Employee’s vacation balances will be used in the following order: Accrued balance from the former program until this balance is exhausted. 1. “Accrued” Vacation 2. “Earned” vacation accumulates beginning Dec 31, 06. Any unused “earned” balances not taken in the current year can be carried over from one Academic Year to the next up to the max allowed in the carry over 3. Carry Over from prior year is not payable upon termination. The max balance in this bank is equal to one year’s worth of vacation hours earned. “Earned” Vacation “Carry Over” Vacation Any unused “Earned” balance will move to “Carry Over” bank at the end of the year (Aug 26, 07). This will occur as of the 1st pay period ending in Sept up to the max allowed in the Carry Over

8. Report of vacation balances on pay stubs Beginning with the first pay period (Dec 31, 06 - Jan 13, 07) employees will see a change in the way vacation is reported on pay stubs. A sample is shown below: Note:****Hours Available is the “Vac Accumulated” minus “Hours Used” Since December 31, 2006. Available hrs subject to plan guidelines regarding accrued/earned/carry over time and usage balances reflected thru current pay period end date “Accrued” Vacation Balance as of 30th of 2006 Employees with unused vacation accrued on or before Dec 30, 2006 will see their unused vacation balances reported on the “Accrued” line. “Earned” Vacation Balance Earned vacation beginning on Dec 31, 2006 will be reported on the “Earned Vacation” line “Carry Over” Vacation Balance The balance of “earned” vacation which is not take before the end of the academic year (Aug 25th, 2007) will be reported as “Carry Over” vacation beginning with the first pay period ending in Sept 2007.

9. Q & A