Common use of Variable Remuneration Clause in Contracts

Variable Remuneration. 1. Right to variable remuneration Salary scale Non fee earner (until 1 July 2016) Fee earner Management (until 1 July 2016) 1 5% 10% 2 5% 10% 3 5% 10% 4 5% 10% 5 5% 15% 6 5% 15% 7 7% 15% 8 7% 15% 9 7% 15% 10 10% 15% 12% 11 10% 15% 12% 12 10% 15% 12% 13 10% 15% 12% You are entitled to variable remuneration. The following table applies to you: In accordance with the timelines as set out in the procedural arrangements for variable remuneration (Appendix 20 of this Collective Agreement) you will be given information concerning your on-target percentage, and defined position (fee earner, non fee earner, or management). 2. Basis for variable remuneration The basis for your variable remuneration is your fixed annual income (fixed gross monthly salary less any supplements, x 12.96). Other components are excluded for this basis. 3. Payment threshold If you come within the categories of Management or Non fee earners, your variable remuneration will only be paid to you if at least 80% of the targets (results) stipulated for the relevant group of employees, as well as your personal targets, are met overall. If you are a Fee earner, then the payment threshold is linked to the billability levels fixed for the relevant calendar year within the organisational unit within which you work. The calculation methods may differ per unit, with the proviso that all Fee earners are subject to a payment threshold. The method that applies to you also applies to all other Fee earners within your organisational unit. 4. Payments scale The following payments scale applies: Payment is made if you achieve results of 80% or more. Payment is made gross. From 0% to 80% 0% From 80% to 85% - 12.5% From 85% to 90% - 15% 90% 60% From 91% to 95% 4% 80% From 96% to 100% 4% 100% From 101% to 110% 2.5% 125% From 111% to 120% 2.5% 150% 121% and above 3% 5. Maximum payment Your maximum annual income is 150% of the total of your fixed annual salary (fixed gross monthly salary x 12.96) and the on-target variable remuneration. Given that the fixed annual salary is included in this calculation, the maximum payment of variable salary is also calculated. 6. Consultation structure Appendix 20 sets out the procedural arrangements for the application of parameters and the respective weighting of these parameters, the timeline for announcement of the targets and parameters, and an evaluation. 7. Variable remuneration of Non Fee-earners/Management as from 1 July 2016 As from 1 July 2016, if you are or become a Non-Fee earner or Management as described in section 1 of this article then the KPN Plan will apply to you as from the date on which you commence such job (Article 8.8 sections 1 and 3 and Appendix 1A). Sections 1 to 6 of this article will apply as appropriate. If after 1 July 2016 the nature of your work changes from Fee-earner to Non-Fee- earner/Management or vice versa, your variable remuneration scheme will change. Depending on the nature of your work, you will then be eligible for either the KPN plan (Non-Fee- earner/Management) in accordance with section 7 of this article or the Fee-earners scheme of KPN Consulting in accordance with sections 1 to 6 of this article. If on 30 June 2016 you are placed in the Consulting group, the transitional provisions as specified in Appendix 17 Article 6 section 2 applies to the period(s) in which you are eligible for the KPN Plan (on the basis of sections 7 or 8) up to and including 31 December 2019. This transitional period applies as from 1 July 2016 and ends on 31 December 2019. Variable remuneration under the relevant schemes will be payable over the period in which these schemes apply to you by virtue of this article.

Variable Remuneration. 1. Right to variable remuneration You are entitled to variable remuneration. The following table applies to you as from 1 January 2015: Salary scale Non fee earner (until 1 July 2016) Fee earner Management (until 1 July 2016) 1 5% 10% management 2 5% 10% 3 5% 10% 4 5% 10% 5 5% 15% 6 5% 15% 7 7% 15% 8 7% 15% 9 7% 15% 10 10% 15% 12% 11 10% 15% 12% 12 10% 15% 12% 13 10% 15% 12% You are entitled to variable remuneration. The following table applies to you: In accordance with the timelines as set out in the procedural arrangements for variable remuneration (Appendix 20 of this Collective Agreement) you will be given information concerning your on-target percentage, and defined position (fee earner, non fee earner, or management). 2. Basis for variable remuneration The basis for your variable remuneration is your fixed annual income (fixed gross monthly salary less any supplements, x 12.96). Other components are excluded for this basis. 3. Payment threshold If you come within the categories of Management or Non fee earners, your variable remuneration will only be paid to you if at least 80% of the targets (results) stipulated for the relevant group of employees, as well as your personal targets, are met overall. If you are a Fee earner, then the payment threshold is linked to the billability levels fixed for the relevant calendar year within the organisational unit within which you work. The calculation methods may differ per unit, with the proviso that all Fee earners are subject to a payment threshold. The method that applies to you also applies to all other Fee earners within your organisational unit. 4. Payments scale The following payments scale applies: Payment is made if you achieve results of 80% or more. Payment is made gross. From 0% to 80% 0% From 80% to 85% - 12.5% From 85% to 90% - 15% 90% 60% From 91% to 95% 4% 80% From 96% to 100% 4% 100% From 101% to 110% 2.5% 125% From 111% to 120% 2.5% 150% 121% and above 3% 5. Maximum payment Your maximum annual income is 150% of the total of your fixed annual salary (fixed gross monthly salary x 12.96) and the on-target variable remuneration. Given that the fixed annual salary is included in this calculation, the maximum payment of variable salary is also calculated. 6. Consultation structure Appendix 20 sets out the procedural arrangements for the application of parameters and the respective weighting of these parameters, the timeline for announcement of the targets and parameters, and an evaluation. 7. Variable remuneration of Non Fee-earners/Management as from 1 July 2016 As from 1 July 2016, if you are or become a Non-Fee earner or Management as described in section 1 of this article then the KPN Plan will apply to you as from the date on which you commence such job (Article 8.8 sections 1 and 3 and Appendix 1A). Sections 1 to 6 of this article will apply as appropriate. If after 1 July 2016 the nature of your work changes from Fee-earner to Non-Fee- earner/Management or vice versa, your variable remuneration scheme will change. Depending on the nature of your work, you will then be eligible for either the KPN plan (Non-Fee- earner/Management) in accordance with section 7 of this article or the Fee-earners scheme of KPN Consulting in accordance with sections 1 to 6 of this article. If on 30 June 2016 you are placed in the Consulting group, the transitional provisions as specified in Appendix 17 Article 6 section 2 applies to the period(s) in which you are eligible for the KPN Plan (on the basis of sections 7 or 8) up to and including 31 December 2019. This transitional period applies as from 1 July 2016 and ends on 31 December 2019. Variable remuneration under the relevant schemes will be payable over the period in which these schemes apply to you by virtue of this article.