Company Profit Share Program

Purpose

The purpose of the profit share program is to reward all team members who have maintained a high level of quality and efficiency and contributed to the company's success.

Effective 2026, Northeast Data will be updating our Company Profit Share Program.

This update aims to ensure a fair and equitable distribution of profits across all levels of our organization, recognizing the diverse contributions of our team members.

Key Points of the Updated Profit Share Program:

• Weighted Hybrid Profit Share Model: The new structure incorporates a Weighted Hybrid Profit Share system, blending a performance-based component with a fixed percentage allocation. This ensures fairness while rewarding employees who contribute at higher levels through leadership, expertise, or direct impact on profitability.
• Inclusivity and Fairness: The updated program is designed to ensure that all employees, from managers to first-year team members, are recognized for their hard work and dedication.
• Recognition of Leadership and Expertise: Each Level reflects varying degrees of responsibility, leadership, and expertise. Those in leadership roles and individuals with specialized certifications receive appropriate recognition.
• Growth and Development: The program encourages continuous professional development. Employees can advance through the Levels—and earn higher profit shares—by maintaining certifications and taking on leadership roles.
• Overall Benefits: While distribution percentages have been adjusted, the goal is to create a more balanced and motivating environment that fosters teamwork, collaboration, and a shared sense of achievement.

Northeast Data wants to assure you that:

• Equity Across Roles: The new structure is designed to ensure that all roles are fairly compensated based on their contributions. While there may be differences in profit shares, the overall compensation package, including salaries and other benefits, remains competitive and fair.
• Opportunities for Advancement: The program is structured to provide clear pathways for career advancement. By taking on additional responsibilities and obtaining relevant certifications, employees can move up the Levels and increase their profit shares.
• Open Communication: We are committed to maintaining open lines of communication. If you have any questions or concerns about the new structure, please do not hesitate to reach out to your manager.

A Weighted Hybrid Profit Share Model combines two key elements to distribute profits fairly while incentivizing performance and contribution. It blends a fixed percentage allocation with a performance-based component, ensuring that all employees receive a share while rewarding those who contribute more significantly.

How It Works:

Fixed Base Allocation:

Every eligible employee receives a baseline share of the profit pool.

This ensures fairness and inclusivity, meaning all employees benefit regardless of role or tenure.

Weighted Performance-Based Component:

Additional profit share is distributed based on factors like:

• Leadership & Responsibility Level – Higher levels receive a greater share.
• Certifications & Expertise – Employees with specialized skills or credentials earn more.
• Performance Metrics – Productivity, efficiency, or direct contributions to company success influence payouts.
• Tenure & Experience – Long-standing employees may receive weighted bonuses.

Profit Share Distribution

At the end of each fiscal year, Northeast Data will assess its net profit after taxes. 30% of the total profit will be allocated to the Profit Share Program and distributed across Three Department Segments as follows:

Departments A – Network Integration

Departments B – Installation / Design / Bidding

Departments C – Operations / HR / Staffing Positions

Within each segment, employees will be categorized into levels based on:

✔ Leadership & Responsibility Level

✔ Certifications & Expertise

✔ Performance Metrics

✔ Tenure & Experience

This structure ensures a balanced approach—where all employees receive a share while rewarding those who take on greater responsibilities, develop specialized expertise, and contribute directly to the company’s success.

Additional Notes:

• All certifications must be up-to-date during the profit share year.
• Northeast Data reserves the right to adjust employee Level based on special circumstances.
• Full-time employees will be allocated one "unit" for each full month of employment during the Profit Share Year. Any remaining amounts will be recalculated and redistributed to employees with longer tenures.
• Profit Share payments will be added to the first full pay period of the Second Quarter ending in April following the year of distribution. The ending date of this pay period will be considered the time of distribution.
• Only employees on the payroll at the time of distribution will be compensated. Any forfeited shares will be redistributed to the remaining eligible employees of the Profit Year under distribution.
• Part-time employees and employees on probation will not be distributed profit share for the time they are on probation.