Q4 2011 Management Metric Based Bonus Agreement for Rally Management

Summary

This agreement outlines the bonus structure for Rally management participants for the fourth quarter of 2011, based on the company's total product bookings. Bonuses are tied to achieving specific sales targets, with higher payouts for exceeding goals. The maximum bonus is capped at 200% for reaching 125% of the quota. Payments are expected 2 to 3 pay periods after the quarter ends. The agreement aims to align management incentives with sales objectives.

EX-10.14.4 9 a2213604zex-10_144.htm EX-10.14.4

Exhibit 10.14.4

 

Date:

December 5, 2011

 

 

To:

Management Metric Based Bonus (MBB) Participants

 

 

From:

Jim Lejeal

 

 

Regarding:

Q4-2011 (FYE 1/31/2012) MBB Algorithm

 

The Rally Management Metric Based Bonus for Q4 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 Q4 “assigned quota” (aka “Don’s number”) Total Product Bookings Sales Goal:

 

Company Quota Amount Budget:

 

New Product Bookings

 

$

5,000,000

 

Renewal Product Bookings

 

$

9,750,000

 

Total Product Bookings

 

$

14,750,000

 

 

Payment Structure:

 

The payment structure is different than prior quarters and allows for significantly more upside as follows:

 

·                  We will continue to have a 90% new bookings threshold to trigger the quarterly MBB at 90%, then

·                  100% of total product bookings will equate to a 100% payment of the quarterly MBB

·                  104% of total product bookings will equate to a 104% payment of the quarterly MBB

·                  105% of total product bookings will equate to a 125% payment of the quarterly MBB

·                  109% of total product bookings will equate to a 129% payment of the quarterly MBB

·                  110% of total product bookings will equate to a 176% payment of the quarterly MBB

·                  115% of total product bookings will equate to a 184% payment of the quarterly MBB

·                  120% of total product bookings will equate to a 192% payment of the quarterly MBB

·                  125% of total product bookings will equate to a 200% payment of the quarterly MBB (consistent with previous quarters the capped total award is at 125%)

·                  “Tiers” are linear and percentages in between will have a proportionate payment (by way of example 108% will pay out at 128%)

 

Anticipated Payout Date:

 

2 to 3 pay periods after close of quarter