shortfall in the subsequent Contract Year, as well as meet the performance targets for that Contract Year. (4) Except as the Employer may, in its sole discretion, otherwise determine based on exceptional circumstances, if the Service Provider fails to attain the Maximum Annual Incentive Compensation in any Contract Year, the shortfall will not be available to the Service Provider in the subsequent Contract Years and Rs [ ] per Contract Year maximum will not be increased. ATTACHMENT # 1G APPENDIX G – INCENTIVE COMPENSATION CALCULATION PROCEDURE NOTES [SAMPLE: This part is to be designed on a case by case approach] PART A THE METHOD FOR CALCULATING PERFORMANCE INCENTIVE - COMPENSATION IN EACH CONTRACT YEAR I. The Performance Incentive Compensation for each Contract Year shall be calculated as follows: Compensation = Composite Score × 0.2 × Maximum Annual Incentive Compensation Where: (i) The Maximum Annual Incentive Compensation is calculated as set out in Section 2.1 of the Performance Incentive Compensation Appendix Provisions; and (ii) The Composite Score is calculated in accordance with B-The Method for “Part Calculating the Composite Score” of these Incentive Compensation Calculation Procedure Notes. PART B THE METHOD FOR CALCULATING THE COMPOSITE - 1. The Composite for each Contract Year shall be as follows: Composite Score Total of All Weighted Scores for the Performance Criteria (i) The Weighted Score for each Performance Criterion equals Criterion Weight x Criterion Value; (ii) The Criterion is measured from to with corresponding values of “Excellent” “Poor” 5 (for performance) to I (for performance) as set out in the Incentive “Excellent” “Poor” Compensation Charts and evaluated based on the performance of the Service Provider; (iii) The Criterion Value which the Operator receives for any Performance Criterion is based upon the technical standards set out in the Incentive Compensation Charts under the
shortfall in the subsequent Contract Year, as well as meet the performance targets for that Contract Year. (4) Except as the Employer may, in its sole discretion, otherwise determine based on exceptional circumstances, if the Service Provider fails to attain the Maximum Annual Incentive Compensation in any Contract Year, the shortfall will not be available to the Service Provider in the subsequent Contract Years and Rs [ ] per Contract Year maximum will not be increased. ATTACHMENT # 1G – APPENDIX G INCENTIVE COMPENSATION CALCULATION PROCEDURE NOTES [SAMPLE: This part is to be designed on a case by case approach] PART A - THE METHOD FOR CALCULATING PERFORMANCE INCENTIVE COMPENSATION IN EACH CONTRACT YEAR I. The Performance Incentive Compensation for each Contract Year shall be calculated as follows: Compensation = Composite Score × 0.2 × Maximum Annual Incentive Compensation Where: (i) The Maximum Annual Incentive Compensation is calculated as set out in Section 2.1 of the Performance Incentive Compensation Appendix Provisions; and (ii) The Composite Score is calculated in accordance with “Part B-The Method for Calculating the Composite Score” of these Incentive Compensation Calculation Procedure Notes. PART B - THE METHOD FOR CALCULATING THE COMPOSITE 1. The Composite for each Contract Year shall be as follows: Composite Score Total of All Weighted Scores for the Performance Criteria (i) The Weighted Score for each Performance Criterion equals Criterion Weight x Criterion Value; (ii) The Criterion is measured from “Excellent” to “Poor” with corresponding values of 5 (for “Excellent” performance) to I (for “Poor” performance) as set out in the Incentive Compensation Charts and evaluated based on the performance of the Service Provider; (iii) The Criterion Value which the Operator receives for any Performance Criterion is based upon the technical standards set out in the Incentive Compensation Charts under the