Q2 2011 Management Metric Based Bonus (MBB) Agreement for Rally Management
This agreement outlines the bonus structure for Rally management participants for the second quarter of 2011. Bonuses are tied to the company's achievement of specific sales goals, including new and renewal product bookings, with a total target of $9,475,000. Payments are subject to a 90% minimum threshold and capped at 125% of the target, with payouts expected one month after the quarter ends.
Exhibit 10.14.2
Date: June 15, 2011
To: Management Metric Based Bonus (MBB) Participants
From: Jim Lejeal
Regarding: Q2-2011 MBB Algorithm
The Rally Management Metric Based Bonus for Q2 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 Q2 “assigned quota” (aka “Don’s number”) Total Product Bookings Sales Goal:
Company Quota Amount Budget:
| New Product Bookings |
| $ | 4,400,000 |
|
| Renewal Product Bookings |
| $ | 5,075,000 |
|
| Total Product Bookings |
| $ | 9,475,000 |
|
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
