Q1 2011 Management Metric Based Bonus (MBB) Agreement for Rally Management
This agreement outlines the bonus structure for Rally management participants for the first quarter of 2011. Bonuses are based on the company's performance in achieving total product bookings, with specific targets for new and renewal bookings totaling $8,155,000. A minimum of 90% of the new bookings target must be met, and total bonus payments are capped at 125% of the target. Payments are expected to be made one month after the quarter ends.
Exhibit 10.14.1
Date: March 14, 2011
To: Management Metric Based Bonus (MBB) Participants
From: Jim Lejeal
Regarding: Q1-2011 MBB Algorithm
The Rally Management Metric Based Bonus for Q1 2011 will be attached to company performance against total product bookings.
The intent is to align the company management with the sales team’s bookings objectives.
Goal: Achieve the Company’s Q1 “assigned quota” Total Product Bookings Sales Goal:
Company Quota Amount Budget:
| New Product Bookings |
| $ | 4,000,000 |
|
| Renewal Product Bookings |
| $ | 4,155,000 |
|
| Total Product Bookings |
| $ | 8,155,000 |
|
Payment Structure:
We will continue to have a 90% new bookings threshold as well as a total payment cap of 125%:
Anticipated Payout Date:
1 month after close of quarter
