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Sales Representative OTE Commission Plan

Participant: John Q. Sales Yearly Base: $50,000 • Want to have an
Title: Territory Sales Rep Yearly OTE: $100,000 integrated sales force
Term: 12 Yearly Quota: $500,000 (Gross Margin Target)
Effective Date: January 1, 2014 Cloud Target • Are just getting started
$50,000 (Gross Margin Target) with XaaS and want a
Revision Date: December 31, 2014 motivator in place for
their top producing sales
OTE Summary: On-target Earnings 100% $ 100,000 reps
Base 50% $ 50,000
50% $ 50,000 • Have a need to drive
Variable current revenue, yet
Variable Payout 100% $ 50,000 need to get the attention
of the sales team to drive
Commission some level of
XaaS/Cloud revenue
Quota $ 500,000

Territory Commission: $ 50,000

Quota Floor (%) Tier 1 Tier 2 Tier 2
Quota Ceiling (%) 0% 100% 125%
125% No Cap
Quota Floor ($) 100%
Quota Ceiling ($)
$0 $500,000 $625,000
Commission Rate $500,000 $625,000 No Cap

10.00% 15.00% 20.00%

Tier 1 Rates paid until Cloud Target achieved

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