Ergosphere Ergonomics

2020 Sales Incentive Compensation Plan Document

Project Heads/Business Development Managers

1.2.2020
 Ergosphere Ergonomics

Sales Incentive Compensation Plan

Project Heads/Business Development Managers

Table of Contents

A. Plan Overview ..................................................................................................................... 2

B. Plan Description .................................................................................................................. 3
C. Plan Policies and Practices .................................................................................................. 4
Appendix A: Plan Communication Confirmation .................................................................... 8
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A. Plan Overview
Plan Objectives This sales compensation incentive plan has the following objectives to align
pay with company goals:
• Increase Sales Revenue in the upcoming fiscal year
• Maximize visibility of company’s products
• Acquire new clients
Plan Period This plan is effective 1.4.2020 through 31.3.2021

Incentive Plan Annual

Components Plan Component Incentive Target Caps
Sales Commission Upto 5% Rs 1cr nil

Definitions Sales Value, for the purposes of incentive calculation, will include the revenue
generated through all business sold by the Account Manager as reflected in
Ergosphere’s accounting system, and based on Ergosphere’s standard costs in
effect at the time of the sale.

Gross Margin for the Business Unit is the sum of gross margin (as counted for
compensation calculation purposes) for all sales the Business Unit’s products.

Payment Timing Incentive payments are made at the time of the first payroll following the
period in which the estimated incentive is calculated. For example, the
payment of the incentive for Q1 performance will be made at the time of the
first payroll run of Q2 in July.

2020 Sales Incentive Compensation Plan

Business Development Manager
Version Date 1.2.2020
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B. Detailed Plan Description

Sales Commission Rationale
Incentive To motivate the employees to achieve their sales targets

Calculation
Business Development Managers
Sales Commission Payout Table

Quarterly Sales Revenue

Actual less Goal Quarterly Payout
Rs 450,000 + 2% of revenue
Over Rs 10,000,000
over 1.25cr
Rs 10,000,000 Rs 450,000

Rs 5,000,000 Rs 325,000

Rs 2,500,000 Rs 250,000

Rs 0 Rs. 100,000

-Rs 1,000,000 Rs. 50,000

-Rs 2,000,000 Rs 15,000

below -$20Lac Rs 0

Calculation notes
• There is no payout for Sales revenue less than Rs 20Lac below Goal.
• Above Rs 20Lac below Goal, additional money is earned for each
additional Gross Margin Dollar sold. Between rows of the table, the
payout is determined using percentage calculation of the payout of
the last category. For example, the payout for Rs1,250,000 over Goal
is Rs 150,000.
• Each quarterly calculation is independent of all other quarterly
calculations.

2020 Sales Incentive Compensation Plan

Business Development Manager
Version Date 1.2.2020
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C. Plan Policies and Practices

Effective Dates This Plan goes into effect 1.4.2020 and will remain in effect until 31.3.2021

Eligibility Managing Director determines eligible positions with approval by Human

Resources.

Participants begin participation on the Plan at the beginning of their first full
calendar month of eligibility.

Each participant will be notified in writing that he/she has been selected as a
participant in the Incentive Plan. The notification will include the effective
date of participation, a description of the Plan, and any applicable goal(s),
including the Incentive Target and the quotas for that participant.

Participation in the Plan is conditioned on the participant’s written

acknowledgement of a completed version of the Plan Communication
Confirmation attached as Appendix A.

Eligibility, participation and incentive levels are reviewed each fiscal year and
are not automatically carried over into the next fiscal year.

Change in Employment: In general, any participant transferred to another

assignment within Ergosphere that is not covered by this Plan, or any
participant who retires, becomes disabled or dies (collectively a “Change of
Employment”), will be eligible to receive all incentive payments earned if the
Change in Employment coincides with the formal close of a quarter. If the
Change of Employment occurs in the middle of a quarter, then any incentive
payments that would have been advanced through the last full month worked
under this Plan may, within Ergosphere’s sole discretion, be deemed earned
per a pro-rata calculation, and paid, less any quarterly payments made prior
to the Change of Employment.

Leaves of Absence: Employees on an approved leave of absence will not

receive credit for sales for the period of time on the leave of absence. Their
target incentive dollars will be reduced for the period of time on approved
leave of absence.

Terminations: An eligible employee on the Incentive Plan who terminates

before the end of the fiscal year will not be eligible for any incentive
payments for the remainder of the fiscal year, except any payments made
prior to termination.

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Business Development Manager
Version Date 1.2.2020
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Eligibility No Contract or Guarantee of Employment: This Plan document and any oral,
(continued) written or electronic communication related to the Plan or the subject matter
in this Plan document are not intended and shall not be read to create an
express or implied contract or promise of specific treatment or benefits in
specific situations. Your employment relationship with Ergosphere is at-will
and either you or Ergosphere may terminate your employment at any time
without cause or advance notice. The payment of incentive compensation
awards under this Plan shall not be construed as an indication that overall job
performance is satisfactory.

Interpretation and This Plan states the general policy of the Ergosphere Sales Incentive Plan.
Administration Interpretation of the policy will be solely within the discretion of Ergosphere
management.

This Plan supersedes all previous incentive compensation plans, agreements

regarding incentive compensation, and/or other documents relating to
incentive compensation for Ergosphere sales employees.

Incentive awards will be computed using financial data determined in

accordance with the Company’s standard practices and generally accepted
accounting principles.

Administration: This sales compensation program will be administered by

Managing Director with support from Human Resources.

Management Discretion: Participation in this program does not in any way

represent an explicit or implied right to receive an incentive payment
pursuant to the terms of this Plan. Incentive payments are based on
management’s discretion with respect to performance and contributions.

Advances or Draws: Any advances or draws will be immediately due upon

termination, and Ergosphere expressly reserves any and all legal rights it may
have under federal and/or state law to deduct any advances from any final
payments due to the employee upon termination.

Credit Splitting: Based on applicable credit splitting policies, management

reserves the right and has full discretion to determine the splitting of credit
among two or more salespersons, and when credit splitting should apply.

Not Transferable or Assignable: Incentive compensation payments are not

transferable or assignable. Any attempt by an employee to transfer or assign
his or her incentive compensation payments will result in the forfeiture of
such incentive compensation payments and may result in corrective action up
to and including termination.

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Business Development Manager
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Assignment and Goal Adjustment: Management reserves to right to adjust

territory and/or account assignments and related quotas, other objectives,
and other Plan provisions during the year based on overall business or
individual circumstances.

Limited Involvement: In the event that a plan participant has no, little or
shared involvement or impact on obtaining an order of significant value,
management reserves the right to reduce or adjust the incentive paid to that
employee.

Per-deal Cap: In the event of a very large deal in which the sales person is
involved, Ergosphere may limit payment to no more than 100% of the total
annual target incentive for any one deal. This provision limits the payout on
any deal affected; additional deals sold in a year and payout due for deals
sold in prior years will be independent of the provision.

Sales of Others’ Products or Services: Participants may not sell products or

services for any other company in connection with any transaction in which
Ergosphere may be involved.

Plan Changes: Management intends that the basic structure of this program
remain in effect for the fiscal year. However, management reserves the right
to modify, revise, or terminate the program at any time, including but not
limited to the current Plan Year. Any such amendment, suspension or
termination may be retroactive to the beginning of any Plan Year. No such
amendment, suspension or termination shall adversely affect any employee’s
rights under the Plan in any amounts previously earned by him/her.

Claims of Eligibility: No individual employee or other person has any claim or

right to be included in the Plan or to be granted an Incentive Award Payment
under the Plan until he or she has been declared an eligible participant and
has been properly notified. In addition, all of the requirements and applicable
rules and regulations of the Plan must have been met, including but not
limited to, the availability of funds for Incentive Award Payments, the
determination of the extent to which goals have been met, the determination
of the amount and receipt of each Incentive Award Payment, and approval of
the incentive payments.

Final Quaterly Payment: The Quaterly incentive payment is not earned until
the formal close of the Quarterly. In addition, Ergosphere has the discretion
to adjust the amount of any Quarterly incentive payment to account for any
performance issues with respect to your employment or in light of other
business needs as determined by management in its sole discretion.

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Business Development Manager
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Plan Funding: This Plan shall be funded with the client payments, unsecured
and payable out of the general assets of Ergosphere. Payout of the plan can
get delayed in case of delay in payment at the end of the client with which
deal was made. The Plan and its administrative policy carry no implication
that any Incentive Award Payment will be earned in unsatisfactory years or if
performance is poor.

Effect on Benefits: As presently constituted, Incentive Award Payments may

affect benefits paid under the Ergosphere’s employee benefit programs as
required by the terms of qualified and nonqualified plans.

Incentive Errors: Employees should check their pay stubs each pay day. If an employee
Compensation believes he or she has been underpaid an advance, or an earned incentive,
Payments due to an error, the employee must promptly notify Ergosphere of his or her
belief that there has been an error. Ergosphere will review the issue and, in
the event of an error, correct the error at an appropriate time pursuant to the
discretion it has retained under this Plan document. In case of overpayment,
employees must report the error to their manager, and the amount of the
overpayment will be deducted from future incentive compensation
payments. If there are no future incentive compensation payments, the
employee will be required to make alternative arrangements acceptable to
Ergosphere to repay those amounts.

Confidentiality Plan Confidentiality: This Plan is confidential and proprietary information of

Ergosphere. Employees are bound to refrain from discussing the contents of
the Plan with persons outside Ergosphere sales or management, and to
refrain from sharing copies of the Plan.

Reports and Records: Sales reports and records are the confidential and
proprietary information of Ergosphere. Sales reports and records, as well as
the information contained in them, shall be kept confidential and shall be
disclosed only to employees of Ergosphere who need this information.

2020 Sales Incentive Compensation Plan

Business Development Manager
Version Date 1.2.2020
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Appendix A: Plan Communication Confirmation

{Role Name} Name

Effective Date of
Participation

Sales Responsibility
(Accounts, Segment,
Territory, etc.)

Goals

Signatures and I, ________________________________, acknowledge receipt of this plan

Acknowledgement of document. I further acknowledge that I have reviewed and understand the
Receipt terms and conditions set forth in the Plan document.

Eligible Employee Signature Date

Manager Signature Date

2020 Sales Incentive Compensation Plan

Business Development Manager
Version Date 1.2.2020