Document:

pcti-ex1011_624.htm

EXHIBIT 10.11

 

 

 

 

 

PCTEL, INC.

 

SALES COMPENSATION PLAN

 

Prepared specifically for:

Arnt Arvik

 

FY 2018 

PCTEL, Inc.

2018 Sales Compensation Plan

This plan supersedes all previous compensation plans

EXHIBIT 10.11

	
I.
	
Introduction

 

The PCTEL Sales Compensation Plan (the “Plan”) has been designed to:

 

	
 
	
▪
	
Align sales compensation with corporate profitability;

	
 
	
▪
	
Motivate, incent and reward sales behavior in order to achieve PCTEL’s corporate and financial objectives; and

	
 
	
▪
	
Provide a Plan that is equitable and consistent across regions and product lines.

 

	
II.
	
Definitions

 

Base Salary – Base Salary is the amount payable to Participant as non-variable compensation for services rendered to the Company.  It is determined by Company management on an annual basis.  

 

Commission – Commission is the variable amount payable to Participant as compensation for sales to customers as set forth in Section IV below.

 

Commissionable Revenue – Revenue earned by the Company (determined in accordance with Generally Accepted Accounting Principles in the United States of America) from sales of products, services, NRE, maintenance charges, royalties and training charges, excluding freight, loans, interest charges, and other similar charges.  

 

Company – PCTEL, Inc. and its subsidiaries

 

RFS Total Quota – Commission earned from Commissionable Revenue generated by total RF Solutions sales, the Participant will receive the percentage of Base Salary indicated on Attachment A. 

 

Participant – The sales professional for whom this Plan is prepared and whose name is found on the cover page of this Plan.

 

Payout Factor – The percentage determined from the chart in Section V based upon the percentage of Quota attained.

 

Plan Administrators – The CFO together with the Vice President, Corporate Resources and Chief Risk Officer, and the Senior Vice President & General Manager-RFS.  

 

Plan Year – The Plan Year is January 1, 2018 through December 31, 2018.

 

Quota Assignment Statement (Attachment A) – The signed statement between PCTEL and Participant defining the amount of the Quota and related objectives, if any.

 

Target Commission – The amount or percentage of Commission identified in Attachment A as Participant’s personal target.

 

	
III.
	
General

 

	

	
Plan Administration:  The Plan Administrators will manage the Plan and have full discretion to construe the terms of the Plan, determine eligibility to participate in the Plan, and determine whether Commission is payable under the Plan.

 

	

	
Adjustments:  PCTEL reserves the right, without notice, to make any adjustments or revisions to the Plan.  In the event of any revision or adjustment to the Plan, including Attachment A, an amended Plan will be prepared and signed by all parties.  No handwritten changes will be accepted.

PCTEL, Inc.

2018 Sales Compensation Plan

This plan supersedes all previous compensation plans

EXHIBIT 10.11

 

	

	
Interpretation:  Any questions relative to interpretation and administration of this Plan shall be referred to the CFO whose interpretation will be final and binding.

 

Termination of Employment:  The final amount, if any, of Commission due to Participant upon termination of employment is the Commission earned as provided in this Plan up to and including the termination date.

 

Participation: Plan Participants are not eligible for any other management bonus or similar plan offered by the Company.

 

	
IV.
	
Annual Quota

 

	

	
At the beginning of each fiscal year, the Senior Vice President & General Manager-RFS, working with the Vice President, Corporate Resources and Chief Risk Officer, will set the RFS Total Quota and Target Commission potential for the Participant on the Quota Assignment Statement (Attachment A.)  

 

	

	
There will be no retroactive customer account changes without approval from the Senior Vice President & General Manager -RFS.  Any changes will be documented in writing by Participant, the CFO, the Senior Vice President & General Manager-RFS, and the Vice President, Corporate Resources and Chief Risk Officer, with a copy to the Finance Department.

 

	
V.
	
Commission 

 

Participant will earn a Commission as follows:

 

Commission Earned:  Commission is calculated based upon the annual amount of Commissionable Revenue generated by the Participant.  

 

Returns and Credits:  In the event that a product for which Participant received credit as Commissionable Revenue is returned (or the Company credited the customer’s account as though the product was returned), the corresponding amount of Commissionable Revenue related to the returned or credited product shall be subtracted from the Commissionable Revenue otherwise credited to the Participant. The amount of Commissionable Revenue will be subtracted in the quarter the product return or product credit is processed.  Further, if one or more assigned accounts are greater than 90 days past the due date established by the applicable payment terms, the corresponding amount of Commissionable Revenue previously credited to the Participant shall be subtracted and the next quarterly Commission payment shall be adjusted accordingly.  Such Commissionable Revenue will be added back in the quarter in which the payment is received from the customer and will be included in the next succeeding Commission payment.  No Commission will be payable for any write-off amounts.

 

Commission Calculation - After the end of first fiscal quarter and monthly thereafter, the Finance Department will calculate the year-to-date Commissionable Revenue from invoices issued related to RFS product and services.  The “Payout Factor” is determined by locating the percentage of Individual Quota attained year-to-date in the table below and extrapolating to identify the Quota percentage that falls between the percentages indicated in the table (e.g., 77% attainment would be a 61.67% payout factor). The Commission earned for each fiscal quarter is calculated as follows: 

 

PAYOUT FACTOR x TARGET COMMISSION x BASE SALARY.

 

The amount of Commission earned as set forth above will be paid to Participant, except as follows:

PCTEL, Inc.

2018 Sales Compensation Plan

This plan supersedes all previous compensation plans

EXHIBIT 10.11

	
 
	
1)
	
 Commissions paid in prior fiscal quarters of the fiscal year are deducted from the current commission calculation in such fiscal year.  

	
 
	
2)
	
There is a “cap” or upper limit at 200% of Quota attainment so that achieving greater Commissionable Revenue beyond 200% of Quota, which equates to a 250% Payout Factor, will not result in additional Commission.

 

Commission Table:

		
	
% Quota Attained
	
Payout Factor

	
0%
	
0%

	
10%
	
6%

	
20%
	
12%

	
30%
	
18%

	
40%
	
24%

	
50%
	
30%

	
60%
	
36%

	
70%
	
42%

	
75%
	
60%

	
80%
	
64%

	
90%
	
81%

	
100%
	
100%

	
110%
	
121%

	
120%
	
144%

	
130%
	
169%

	
140%
	
196%

	
150%
	
205%

	
160%
	
214%

	
170%
	
223%

	
180%
	
232%

	
190%
	
241%

	
≥ 200%
	
250%

 

 

 

 

 

 

 

 

 

 

 

		
	
 
	
 

	
VI.
	
Modifications due to Product Discontinuation

 

PCTEL, Inc.

2018 Sales Compensation Plan

This plan supersedes all previous compensation plans

EXHIBIT 10.11

	

	
Discontinuance of Products during Plan Year – During the fiscal year, products may be discontinued and pulled from the sales cycle.  As one example, this can occur when a business segment is sold off.  When appropriate, the related Quota and objectives will be adjusted following management approval.

 

	
VII.
	
Commission Payment Timing and Process

 

         The Commission earned by Participant will be paid forty-five (45) days after the close of

         the first calendar quarter and forty-five (45) days after the end of each month thereafter

           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT A

 

PCTEL, INC.

 

PCTEL, Inc.

2018 Sales Compensation Plan

This plan supersedes all previous compensation plans

EXHIBIT 10.11

QUOTA ASSIGNMENT STATEMENT

 

 

NAME: Arnt Arvik             Quota: $24,000,000

 

 

Sales Territory and/or Accounts: All RF Solutions Sales

 

Your Target Commission Is:67% of Base Salary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I acknowledge that I have read, understand and agree to the terms and conditions of this specifically prepared PCTEL, INC. Sales Compensation Plan for FY 2018.

 

 

Arnt Arvik2/11/2018

Employee/ParticipantDate

 

 

Jeff Miller2/12/2018

Senior Vice President & General Manager- RFS Date

 

Les Sgnilek2/8/2018

VP Corporate Resources & Chief Risk OfficerDate

 

JW Schoen2/8/2018

CFODate

 

 

 

PCTEL, Inc.

2018 Sales Compensation Plan

This plan supersedes all previous compensation planspcti-ex10111_623.htm

EXHIBIT 10.11.1

FIRST AMENDMENT TO SALES COMPENSATION AGREEMENT

 

THIS FIRST AMENDMENT TO SALES COMPENSATION AGREEMENT (the “Amendment”) is entered into and effective as of September 20, 2018 by and between PCTEL, Inc., a Delaware corporation having a place of business at 471 Brighton Drive, Bloomingdale, IL 60108 (“PCTEL”), and Arnt Arvik, a PCTEL employee with a residence at 15701 Berkeley Drive, Haymarket, VA 20169 (“Participant”).  Any capitalized terms used herein but not defined shall have the meanings given to such terms in the Agreement (as hereinafter defined).

WHEREAS, PCTEL and Participant are parties to that certain PCTEL, Inc. Sales Compensation Plan Prepared Specifically for Arnt Arvik FY 2018, executed by Participant on February 11, 2018 (the “Agreement”), and

 

WHEREAS, the Board of Directors of PCTEL (the “Board”) announced on August 28, 2018 that PCTEL is reorganized to operate and report as one segment (the “Reorganization”); and

 

WHEREAS, in connection with the Reorganization, the Board has elected the Participant as Chief Sales Officer responsible for all sales of the Company effective as of August 28, 2018;

 

WHEREAS, PCTEL and Participant wish to amend certain terms of the Agreement to reflect the changes resulting from the Reorganization;

 

NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

	
 
	
1.
	
Amendments to Agreement.  

1.1The following definitions in Section II of the Agreement are hereby amended as follows:

“Commission – Commission is the variable compensation payable to Participant for sales to customers.  It is calculated in accordance with Section V below.” 

“RFS Total Quota – The target Commissionable Revenue set by management to be generated from sales of RF Solutions products and services for the applicable period.”

1.2The following definition is hereby included in Section II of the Agreement:

“Total Quota – The target Commissionable Revenue set by management to be generated from sales of PCTEL products and services for the period October 1, 2018 to December 31, 2018.”

1.3The parties agree as follows:

(a)that the “Quota” set forth on Attachment A to the Agreement (which is also referenced as “Individual Quota” in the Agreement) is equal to the RFS Total Quota described in Section IV of the Agreement; 

(b)that the Quota designated on Attachment A shall apply solely to the period January 1, 2018 to September 30, 2018 and shall be pro-rated for such period (resulting in a pro-rated Quota of $18,000,000 for such period);

 

 

EXHIBIT 10.11.1

(c)that Participant’s Commission for such period shall be calculated in accordance with Section V of the Agreement based upon the attainment of the pro-rated Quota;

(d)that for the period October 1, 2018 to December 31, 2018, Participant’s Quota (which is set forth on Attachment A-2 attached to this Amendment) is equal to the Total Quota; and

(e)that Participant’s Commission for the period October 1, 2018 to December 31, 2018 shall be calculated in accordance with Section V of the Agreement based upon the attainment of the Total Quota.

	
 
	
2.
	
General.  This Amendment is governed by and construed in accordance with the laws of the State of Illinois and forms part of and is subject to the terms and conditions of the Agreement; however, the terms of this Amendment shall prevail to the extent of any conflict or inconsistency between the terms of this Amendment and the Agreement, and all references in the Agreement to the “Agreement,” “herein,” “hereof” or using similar terms shall be deemed to refer to the Agreement as amended by this Amendment.  Except as specifically amended pursuant to the foregoing, the Agreement shall continue in full force and effect in accordance with the terms in existence as of the date of this Amendment.  This Amendment, together with the Agreement and the agreements referred to therein and herein, contains the entire agreement of the parties with respect to the matters herein, and may not be amended or modified except by an instrument executed in writing by all parties hereto.  The parties may execute this Amendment in one or more counterparts, each of which shall for all purposes be deemed to be an original but both of which together shall constitute one and the same Amendment.

IN WITNESS WHEREOF the parties have executed this Amendment by their duly authorized representatives effective as of the date set forth above:

		
	
PCTEL, Inc.

 

By: /s/ Jeffrey Miller

Name: Jeffrey Miller

Title: Senior Vice President and General Manager-
RF Solutions

 

By: /s/ Les Sgnilek

Name: Les Sgnilek

Title: Vice President, Corporate Resources and
Chief Risk Officer

 

By: /s/ John W. Schoen

Name: John Schoen

Title: Senior Vice President and Chief Finance Officer
	
Arnt Arvik, as Participant

 

/s/ Arnt Arvik

Signature

 

 

 

EXHIBIT 10.11.1

ATTACHMENT A-2

 

PCTEL, INC.

QUOTA ASSIGNMENT STATEMENT

 

 

Participant:  Arnt Arvik

 

Quota for the period October 1, 2018 to December 31, 2018:  $26,159,000

 

Sales Territory and/or Accounts: Worldwide sales of PCTEL products by employees, independent contractors, representatives and distributors through any and all accounts and sales channels.

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