1. At-Will Employment Relationship:

Transcription

1 SALES COMMISSION AGREEMENT FOR BASE PLUS COMMISSIONED PART-TIME SALES ASSOCIATES This Sales Commission Agreement ( Agreement ) is entered into between ( Part- Time Sales Associate or PTA ) and Wireless Lifestyle, LLC ( Wireless Lifestyle or the Company ). The purpose of this Agreement is to set forth the circumstances under which sales commissions will be advanced to and earned by the Part-Time Sales Associate, and to provide a description of the method of calculation and payment of sales commissions and related matters. This Agreement memorializes Wireless Lifestyle s existing practices and procedures with regard to the payment of sales commissions. The Level A Commission Schedule is located in the Sales Manual. The Company may change the terms of this Agreement or any Commission Schedule at its discretion, and the Part-Time Sales Associate will be notified in advance and in writing of any such changes. 1. At-Will Employment Relationship: The Part-Time Sales Associate s employment with Wireless Lifestyle is at-will, meaning either the Part-Time Sales Associate or Wireless Lifestyle may terminate the employment relationship at any time, for any reason, with or without notice. Nothing in this Agreement is intended to or shall be construed to alter the at-will nature of the employment relationship, nor create any right to employment for a specific term. 2. Payment of Commission Advances: Wireless Lifestyle pays Part-Time Sales Associates commission advances once a month at the end of the month. 1 The amount of commission advances that the Part-Time Sales Associate receives in a given month reflects sales activity during the previous month. For example, the commission advances payment at the end of October reflects sales activity occurring during the month of September. It is important to remember that these monthly commission payments are advanced to the Part-Time Sales Associate. Commissions on device activations are not earned until 365 days has passed since the sale was entered into the point of sale POS system without deactivation or return of merchandise. Commissions on accessories are not earned until ninety days from the date of sale have passed without return of the merchandise (see Deactivations and Returns below). 3. Components of the Monthly Commission Advance Calculation: Calculation of the Part-Time Sales Associate s Commission Advances includes the following components: Individual Device Sales Commission Advances Individual Accessory Sales Commission Advances Deactivations and returns The commission advances payment that the Part-Time Sales Associate receives each month is the sum of the Part-Time Sales Associate s Individual Device Sales Commission Advances for the month plus the Part-Time Sales Associate s Individual Accessory Sales Commission Advances for the month (both of which are calculated as described below), minus commission advances previously received by the Part-Time Sales Associate on deactivations and product returns occurring during the month, and attributable to the Part-Time Sales Associate s unique sales number (see Deactivations and Returns below). Commission advances are based on all sales and returns occurring during the month and are recorded in the POS system under the Part-Time Sales Associate s unique sales number, as well as deactivations from Sprint. A Part-Time Sales Associate s sales number is the only method for linking sales, deactivations, or returns for commission purposes to a specific Part-Time Sales Associate. 1 New employees are not eligible for commission advances and earned commissions if they voluntarily terminate employment within 45 days after date of hire with Wireless Lifestyle

2 4. Individual Device Sales Commission Advances and Individual Accessory Sale Commission Advances: The amount of commission that the Part-Time Sales Associate may earn on a given item is determined by the base commission amount for the item as set forth in the Level A Commission Schedule, the Part-Time Sales Associate s achievement of his or her applicable quotas, the associate s net accessory sales divided by the quantity of qualified device sales, and the store s achievement of its Customer Experience Focus Metric score. The Level A Commission Schedule establishes base commission amounts for device sales, which may be earned if the Part-Time Sales Associate achieves at least 70% of the applicable monthly quota, as described below. For Individual Device Sales Commission Advances, the base amounts in the Level A Commission Schedule may increase in a given month depending on the Part-Time Sales Associate s reaching, or surpassing, of his or her individual Total and New Minimum ( NEWMIN ) quotas for the month according to the Individual Device Sales Accelerator schedule (see Quotas and Accelerator Schedules below). No commission may be earned, and no commission advance is payable, unless and until 70% of the monthly Total Device Quota is reached. 2 At the beginning of the new month new Total Device Quotas and NEWMIN levels are set and the Part-Time Sales Associate s sales level returns to 0. For Accessory Sales Commission Advances, the payout percentage may increase in a given month depending on the Part-Time Sales Associate reaching a specific dollar amount per qualified device. The dollar per qualified device calculation is the net accessory sales divided by the quantity of qualified device sales. A flat percentage is paid based on the dollar per device calculation (refer to the Level A Commission Schedule on the intranet for the Definition of Qualified Device and the Level A Accessory Payment Schedule for payout percentages). At the beginning of the new month the dollar per qualified device calculation returns to 0 and the Part-Time Sales Associate s sales level returns to 0. For both Individual Device Sales and Individual Accessory Sales, the base amounts of commission advances in the Level A Commission Schedule may increase depending on the store s achievement of its Customer Experience Focus Metric score according to the Customer Experience Focus Metric Schedule (see Customer Experience Kicker below). 5. Quotas and the Accelerator Schedules: Each month, Wireless Lifestyle sets store and individual quotas for TOTAL device and NEWMIN (minimum number of NEW activations). Quotas are split amongst all full time and part-time salespeople at the store after the Retail Store Manager s ( RSM ) quota is removed. Specific store and individual monthly quotas will be determined and communicated to each store team in the early part of each month. At the beginning of the new month, new quotas are set and the individual and store sales levels return to 0. 5(a). Individual Device Sales Commission Advances Accelerator Schedule 2 A Part-Time Sales Associate who does not hit at least 70% of his or her monthly individual TOTAL device quota, may still be eligible for device commission advances at the base flat rates in the Level A Commission Schedule by being within 70% of the Part-Time Sales Associate s individual percentage at his or her store (if no individual Part-Time Sales Associate landed over 100%) to TOTAL device quota

3 The base commission amounts for device sales in the Level A Commission Schedule may be increased in the event the Part-Time Sales Associate achieves, or exceeds, his or her monthly NEWMIN and/or Total device quotas as set forth in the charts below: INDIVIDUAL DEVICE SALES ACCELERATOR LEVEL A NEWMIN ACHIEVED TOTAL % TO QUOTA ACCELERATOR % < 70% NO COMMISSION 70% - < 100% NO ACCELERATOR 100% + 10% ACCELERATOR LEVEL B NEWMIN MISSED TOTAL % TO QUOTA ACCELERATOR % < 70% NO COMMISSION 70% + NO ACCELERATOR NOTE: The accelerator percentage is applied to the base commission on TOTAL devices. The POS is programmed with a Flat Commission Rate, based on the rate plan. Phone Commission accelerators are not cumulative and will be paid out based on the level achieved. 5(b). Individual Accessory Sales Commission Advances Schedule For Accessory Sales Commission Advances, the payout percentage may increase in a given month depending on the Part-Time Sales Associate reaching a specific dollar amount per qualified device. The dollar per qualified device calculation is the net accessory sales divided by the quantity of qualified device sales. A flat percentage is paid based on the dollar per device calculation as shown in the Level A Accessory Payment Schedule located in the Commission Schedule on the intranet. PTA Level A Accessory Payout Table Level % Comp 1 4% 2 6% 3 8% 4 9% 5 10% Accessory Commission rates are not cumulative and will be paid out based on the level achieved. 5(c). Customer Experience Kicker: Customer Experience is measured by surveys sent to customers generated by in-store visits. The methodology and administration of these surveys are determined by Sprint. The Customer Experience Kicker is based on a focus metric defined and scaled in the Customer Experience Focus Metric Schedule located on the intranet. Focus metric scores can be compared to the Customer Experience Focus Metric Schedule to show which level has been attained, and those levels are referenced in the chart below for their relative effect on commission

4 The base commission rates for individual device and accessory sales in the applicable Commission Schedule, after the calculation of any applicable accelerator, may be further increased based on the attained Customer Experience Focus Metric score, as set forth in the Customer Experience Focus Metric Schedule: Customer Experience Kicker Chart Level Kicker 1 20% Commission Rate Increase 2 10% Commission Rate Increase 3 No Commission Effect Customer Experience Kickers are not cumulative and will be paid out based on the level achieved. Wireless Lifestyle reserves the right to change the Customer Experience target and/or the focus metric at any time and will provide employees with advance notice of such changes. Should any field employee end the month with no commission advances due to sales performance, there will be no Customer Experience Kicker increase applied. Only field employees who are eligible for commission advances during the month will be eligible for a Customer Experience Kicker increase to the commission rate. 5(e). EXAMPLE Jim PTA Below you can follow the monthly calculation of Jim PTA. The example will show the entire calculation process for Jim s commission advances for a single month. Jim PTA Jim PTA received a NEWMIN of 5 devices and a TOTAL quota of 15 devices. Jim sold 4 NEW and 12 TOTAL devices. Based on the Level A Commission Schedule, the total base commission amount on these activations equals $200. Jim sold a total of $500 in accessories and achieved Level 5 on the Accessory Payout Table. To determine the dollar amount of his payout, he must review the Level A Accessory Level Schedule located in the Level A Commission Schedule on the intranet. Jim s store qualified for the Level 2 Customer Experience Kicker. For device sales, with a NEWMIN of 10, Jim missed his NEWMIN by 1 and therefore, any accelerator to his device sales commission rates would be determined by chart B ( NEWMIN MISSED ). With a TOTAL quota of 15, Jim landed at 80% to quota and no accelerator will apply to base device commission rates. For accessory sales, Jim landed at a Level 5 Accessory payout and will receive 10% of his total accessory sales. The store Customer Experience Kicker raises the commission rates on Jim s device sales and his accessory sales by an additional 10%. Applying the Level 5 Accessory payout and Customer Experience Kicker, Jim s Individual Device Sales Commission Advances and Accessory Sales Commission Advances for the month are $220 and $55 respectively, for a total of $275 ($220 + $55). Jim also had a deactivation of one line totaling $10. Jim s Commission Advance for the month is $265. The commission calculator is provided as a tool to assist employees in estimating current or potential commissions. Please contact your direct supervisor for details. It is not a guarantee of commissions or commission advances. However, employees should notify their District Managers if the calculation does not match with the final commission advance payment, so that we may determine if an error occurred

5 6. Special Circumstances: 6(a). New Hire PTA Quota Once a Part-Time Sales Associate completes training after being hired, they will be assigned a prorated quota based on the number of days remaining in the calendar month. All standard commission advance rules will apply. 6(b). New Store Ramp Up Quota When a new store opens on the 20 th of the month or earlier, the store will be assigned a ramp up quota. The ramp up quotas will be divided evenly amongst all sales associates, after the Retail Store Manager s (RSM) quota has been removed. For all associates transferring from other stores with quotas, the quota from the previous store and the new store will be prorated and combined based on the amount of time in each store. When a new store opens on the 21 st of the month or later, the store will not be assigned a ramp up quota for that month. All associates will be paid a base commission amount for all sales made with no accelerators. The Customer Experience Kicker does not apply in this situation. For all sales associates transferring from other stores with quotas, the quota from the previous store will be prorated through the last day worked at the previous store. In addition to the previous store quota, no quota is assigned at the new location and the associate would be paid base commission advance amount on all sales, without accelerators for the remainder of the month. NOTE: DO NOT use the regular commission calculator when working at a ramp-up location! The spreadsheet will not properly figure commissions due to the cap on ramp-up store accelerator levels. 7. Base Plus Commission: The Part-Time Sales Associate will receive an hourly base pay, determined on an individual level and communicated upon the offer of employment. The employee is non-exempt and will receive all overtime payments required by applicable state law. The work-week is defined as the seven day period from Monday through Sunday. The work day is defined as 12:00am 11:59pm. Overtime pay is calculated based on the hourly base rate of pay plus an overtime adjustment on commission compensation to be determined separately when commission advances are made. 8. Rate of Pay for Non-Sales Duties: When performing non-commissioned sales duties, such as training, customer service, and inventory, the Part- Time Sales Associate will receive their stated hourly rate of pay. 9. Deactivations and Returns: Individual Device Sales Commission payments are advanced to the Part-Time Sales Associate once monthly. However, commissions on device activations are not earned until 365 days have passed since the sale was entered into the POS without deactivation. When a customer s line is deactivated within 365 days of the date the sale was entered into the POS the original commission payment advanced to the PTA will be charged back and reflected in the next commission advance. Commissions on accessories are not earned until ninety days from the date of sale has passed without return of the merchandise. Returned devices or accessories will affect sales in the calendar month in which the return occurred. Each month, Wireless Lifestyle provides itemized reports of deactivations to each PTA monthly. Deactivations are provided directly from Sprint; Wireless Lifestyle does not have the ability to validate all deactivations. If an employee finds a discrepancy, he or she should notify his or her District Manager for review. Chargebacks are in the amount that was actually advanced to the PTA, based on the base rate, quota accelerators, and Customer Experience Kicker that were in effect at the time of the commission advance

6 In order to earn the commission, and thus convert the advance of commission into an earned commission, it is the duty of the PTA to deliver quality customer service at the time of sale and to follow up with the Wireless Lifestyle customer thereafter periodically to ensure that the sale remains a final sale. Also, all Sprint policies and procedures must be followed including proper completion of documentation to include signatures and initials on the contract to complete the sale. 10. Payment of Commissions on Termination of Employment: Sales commissions will be paid to Part-Time Sales Associates following their termination from employment in a manner consistent with state law. Commissions will be credited on all sales completed by a Part-Time Sales Associate through his or her final day of employment. All commissions advanced and paid in the final commission calculation upon separation of employment will be deemed earned upon the commission payment date. If a sale is completed by a Part-Time Sales Associate pursuant to which the customer s full payment is not received until after the Part-Time Sales Associate s final day of employment, the Part-Time Sales Associate will nevertheless be credited a commission on the full amount of the sale. If a deactivation or return occurs after the Part-Time Sales Associate has left Wireless Lifestyle s employ but before the final commission is calculated and paid, such deactivation or return will be charged back and reflected in the final commission payment. Part-Time Sales Associates that voluntarily terminate from Wireless Lifestyle s employ within seven days or more of the month s end, will receive a commission based on POS sales only and will not qualify for accelerators or Customer Experience Kickers. By signing below, the Part-Time Sales Associate indicates that he or she understands and intends to be bound by the foregoing Sales Commission Agreement. This Sales Commission Agreement shall remain in full force and effect until modified or superseded with a writing signed by the parties. Part-Time Sales Associate (Print Name) Date Signature Acknowledged and Agreed to by Wireless Lifestyle, LLC: By: Company Representative, Title