EZCORP, Inc. Fiscal Year 2010 Incentive Compensation Program EZCORP

Exhibit 10.10

EZCORP, Inc. Fiscal Year 2010 Incentive Compensation Program

EZCORP

FY 2010 Incentive
Compensation Program

FY 2010 Incentive Compensation Program

Policy

It is a policy of EZCORP, Inc. and its wholly owned affiliates (also referred to as “the Company”) to offer a total compensation package which is commensurate with the job assigned, competitive within the affiliated industry, and reflective of the value of each individual’s performance and overall contribution towards the short and long term success of the Company.

As a supplement to the base compensation paid and stock awards granted by EZCORP, the Company offers the FY2010 Incentive Compensation Program (the “Program”) to reward the accomplishment of corporate, business unit, and personal objectives for select key associates. This Program is designed to motivate selected associates to strive for excellence in both Company and specific personal objectives and provides incentive compensation awards for their achievement.

Objectives

The primary objectives of the EZCORP Incentive Compensation Program are:

	1.		To provide an incentive for individuals to drive their performance to achieve strategic Company and personal objectives.
	2.		To attract, retain and motivate top-quality associates who are able to add significant value to the Company’s performance.
	3.		To provide incentive compensation opportunities which are competitive for the associate levels and the affiliated industry.

Eligibility for Participation

The Compensation Advisory Group (President/CEO, SVP Administration and the SVP & General Counsel) will select the positions that will participate in the Program. Participants are generally selected from positions that typically have incentive-based compensation components in the industry and from individuals who make meaningful and substantial contributions to the business. Participation in the Program will be determined prior to the beginning of the fiscal year. Eligible associates will usually be drawn from:

	1.		Officers and Executives of the Company.
	2.		Regional and Corporate Director Level Management
	3.		Key Management individuals as determined by the Compensation Advisory Group and approved by the Board Compensation Committee.

Setting of Financial Measurements and Individual Objectives

Company Objective:

The President/CEO will recommend, and the Board of Directors will approve, specific financial measures that, along with Individual Objectives, will be used to determine the incentive awards for the year.

Individual Objectives:

The Executive Committee will determine overall departmental objectives and assign some or all of those objectives as Individual Objectives to specific individual participants. Individual Objectives may be either business financial objectives, such as operating income, or strategic objectives that are related to specific projects, operational responsibilities or plan implementations.

Awards will be based on the level of attainment of both the Company Objectives and the Individual Objectives of each participant. However, the Board of Directors will set a minimum financial threshold that must be attained for any incentive compensation to be paid.

Company management will conduct periodic progress reviews with participants during the year in Key Performance Review (KPR) meetings to monitor progress and ensure on-going focus and alignment.

FY 2010 Company Objectives and Incentive Targets

Net Income will be used as the Company Objective to determine actual financial award payouts for FY2010. For purposes of this Program, “Net Income” is defined as the net income shown on the audited financial statements. Except for the Chairman of the Board, President/CEO and EVP & COO, the Compensation Committee may adjust the “Net Income” for any special items, charges and credits, which the Board Compensation Committee, in its sole discretion, determines are unusual or infrequently occurring events or situations and also are not subject to the direct control of management. The Company Objective for the Chairman of the Board, President/CEO and EVP & COO may not be changed after being established prior to the beginning of the fiscal year.

The payout based upon financial participation for a participant can be read from the following matrix based on FY2010 “Net Income.”

Net Income		Minimum				Target				Maximum
Bonus Payout			50	%			100	%			150	%

The Net Income goal required for bonus payout at each of the above levels (“Minimum,” “Target” and “Maximum”) shall be set by resolution of the Board of Directors and communicated to each plan participant.

FY 2010 Individual Objectives and Incentive Targets

1.

The Board Compensation Committee establishes all of the Incentive Compensation Program objectives for the Chairman of the Board, the President/CEO and the EVP & COO. The Chairman of the Board, President/CEO and the EVP & COO do not have Individual Objectives as defined by this Program and will have their incentive award determined solely by the

			achievement of the overall Company’s Financial Objectives (including individual business financial results) as approved by the Board Compensation Committee.
	2.		The Executive Committee establishes Departmental Objectives for FY2010 for all other participants. Based upon those Departmental Objectives, participants are assigned Individual Objectives for the FY2010 Incentive Compensation Program. Except for the Company Objectives of the Chairman of the Board, the President/CEO and the EVP & COO, these Individual Objectives are subject to revisions based upon changing circumstances as deemed appropriate by the President/CEO throughout the year.
	3.		The quality of the output of specific Individual Objectives is a substantial portion of the payout rating. To ensure consistency in the scoring of the performance in achieving Individual Objectives by individual participants, the following definitions and payout structure are provided:

* Achieved or exceeds the target goal		Payout 100%
* Slight miss of the target goal		Payout 50% or 75%
* Miss minimum target goal		Payout zero

	4.		The Individual Objectives portion of the incentive award is maximized at 100% of the allocated percentage. However, if the Company achieves the maximum payout level for the Company Objective, specific Individual Objectives may be rated as high as 150% for participants if the performance justifies that rating. For participants, other than the Chairman of the Board, the President/CEO and the EVP & COO, the Executive Committee will determine scores to be given.
	5.		The relative weighting of Company and Individual Objectives will be determined based upon the individual position and the amount of control they have on the achievement of the Objectives. Therefore, individual participants will have different weighting between Company and Individual Objectives, as determined by the Executive Committee or the Board Compensation Committee, as appropriate, and communicated to each participant.

Calculation of Incentive Compensation Payout

The Company Objectives and the Individual Objectives will be scored based upon the actual results achieved for the Program year. Each participant’s actual payout will be determined using the formula below:

A.		% Company Objective Participation				%		(A1)		(assigned, see personal documentation)
		Matrix Rating				%		(A2)		(Company financial goal; percent achievement)
		(A1 x A2) =				%		(A3)		(Company Objective Factor)
B.		% Individual Objectives Participation				%		(B1)		(assigned, see personal documentation)
		Weighted Rating for Individual Objectives				%		(B2)		(sum of all individual objective ratings divided
										by the number of assigned objectives)
		(B1 x B2) =				%		(B3)		(Individual Objective Factor)
C.		Base Salary as of October 1, 2009		$				(C1)
		Participation Factor				%		(C2)		(Sum of A3 + B3)
		(C1 x C2) =		$				(C3)		Incentive Payout

Calculation Example:

1.		Participant has a base salary = $60,000
2.		Participant has a Company Objective incentive potential of 5% of Base Salary
3.		Participant has a Individual Objective incentive potential of 10% of Base Salary
4.		The Company achieves Net Income resulting in a 100% financial payout
5.		Participant achieved 100% of overall weighting for Individual Objectives

A.		Company Obj. Potential			5	%		(A1)		(assigned, see personal documentation)
		Company Matrix Rating			100	%		(A2)
		(A1 x A2) =			5.0	%		(A3)		(Company Factor)
B.		Individual Obj. Potential			10	%		(B1)		(assigned, see personal documentation)
		Weighted Rating			100	%		(B2)		(sum of all individual objective ratings
										divided by the number of assigned objectives)
		(B1 x B2) =			10.0	%		(B3)		(Objective Factor)
C.		Base Salary a/o 10/1/09		$	60,000			(C1)
		Participation Factor (A3 + B3)			15.0	%		(C2)		(Sum of Company Factor and Individual
										Factor)
		(C1 x C2) =		$	9,000			(C3)		Incentive Payout

Incentive Program Funding

Funding for the Incentive Compensation Program will be based on the number of participants selected for the individual Program year and their individual level of participation. At the beginning of each fiscal year, a budget will be established based on participant information and on economic, operational and financial profitability. The full amount of the Program payouts will be included in the administrative expense of the Company prior to the determination of the Company’s final results for ICP purposes. Therefore, the funding of the ICP payouts is a part of the financial results of the Company for incentive calculations.

Administration of the Program

Amendments to or termination of the Program

While it is the intention of the Company to provide an incentive compensation plan annually, the Company, with the approval of the Compensation Committee, reserves the right to:

	•		Amend or modify the incentive plan in its entirety;
	•		Suspend or terminate the Program at any time.

Performance Measurement

	1.		Except for the Chairman of the Board, the President/CEO and the EVP & COO (whose awards are determined by the Board Compensation Committee based upon their specific criteria), the Executive Committee, at its sole discretion, will score each Individual Objective and the individual performance of each ICP participant as it relates to that specific Individual Objective. Participants who share a common Individual Objective may be rated differently based upon their contribution to the achievement or lack of achievement of that specific objective.
	2.		The fact that an associate is initially selected as eligible to participate in the ICP does not mean that he or she is entitled to or guaranteed receipt of an incentive compensation award.
	3.		Actions taken by a participant in the Program to enhance his or her incentive pay at the expense of the long-term benefit of the Company will result in the participant being disqualified as a Program participant, at the sole discretion of the Company.
	4.		Except for the Chairman of the Board, the President/CEO and the EVP & COO, if it can be determined by the Company, at its sole discretion, that a participant’s actions throughout the ICP year did not support or actually worked against their team’s ability to meet its objective, the participant will not receive any incentive compensation award even if all of the objectives are obtained. For the Chairman of the Board, the President/CEO and the EVP & COO, the Board Compensation Committee will make this determination and their decision will be final and binding.
	5.		The Compensation Advisory Group reserves the right, in its sole discretion, to establish the measurement systems associated with this Program and to approve in advance, departmental and Individual Objectives.

6.

Any participant who receives an “UNSATISFACTORY” appraisal rating as determined by the Company or the Board Compensation Committee, in its sole discretion, for the incentive period will not be eligible for an incentive award for that period. Incentive awards for participants with a “MARGINAL” appraisal rating (except for the Chairman of the Board, the President/CEO and the EVP & COO) for the incentive period must be approved by the President/CEO in writing before being awarded.

No Implied Contract

The information presented in this Program shall not in any way be construed to constitute a binding employment or compensation contract between the Company and its associates, nor shall it in any way affect the “employment-at-will relationship” between associates and the Company.

Rules Concerning Awards Payments and Participation

1.

Participants normally must be employed with the Company at the time incentive payments are made to be eligible to receive an award unless:

	a.		The participant is taking normal retirement.
	b.		The participant has been approved, in writing, by the Board Compensation Committee to receive a bonus award payout at a time when the participant is no longer actively employed.

	2.		In the event of either of the two exceptions above, the participant will be eligible to receive a prorated amount of the bonus award based upon the portion of the bonus year that they were actively employed by the Company.
	3.		Participants who voluntarily or involuntarily leave the service of the Company shall not be entitled to receive an award at the end of the Program year, except as noted above.
	4.		Except for the Chairman of the Board, the President/CEO, the EVP & COO and all company executive officers, recommendations to include a new hire, change a participant’s incentive level or add a promoted associate into the Program at any time during the Program year must be approved by the President/CEO. This action is mandatory before informing any associate of their participation in the Program. Partial year participant awards, if any, will be prorated based upon full months of the associate’s inclusion into the Program and their achievement of Program year objectives.
	5.		Associates hired after the second fiscal quarter (March 31, 2010) will not normally be eligible for participation until the following Program year. The President/CEO must approve any exceptions to the above in advance. Approval of such exception is mandatory before informing any associate of their participation in the Program.

Discretionary Awards

The President/CEO will have the authority to award “discretionary bonuses” at year-end. These awards will be granted to individuals based upon the associate’s contribution toward either the achievement of

the Company’s strategic objectives or the FY2010 financial plan. Individual awards will not exceed $5,000; aggregate of awards will not exceed $50,000 annually.

Effective Date of the Program:

This Program shall be in effect for the fiscal year 2010.

Approvals: