Zipcar, Inc. 2011 Executive Bonus Plan

Contract Categories: Human Resources - Bonus & Incentive Agreements
EX-10.38 10 dex1038.htm 2011 EXECUTIVE BONUS PLAN 2011 Executive Bonus Plan

Exhibit 10.38

Zipcar, Inc.

2011 Executive Bonus Plan

Bonus Metrics

Bonus payments for Zipcar, Inc. executives for fiscal 2011 shall be based upon the achievement of the following metrics:

 

  1. Financial Targets that shall have an overall 80% weighting; and

 

  2. Individual Targets, or MBOs, that shall have an overall 20% weighting.

The Financial Targets shall be those that have been approved by the Board of Directors and are comprised of three factors:

 

  1. Revenue, which will have a 50% weighting (the “Revenue Target”);

 

  2. EBITDA, which will have a 25% weighting (the “EBITDA Earnings Target”); and

 

  3. Adjusted EBITDA, which will have a 25% weighting (the “Adjusted EBITDA Earnings Target”).

Calculation of Bonus Payouts Based on Financial Targets

No bonus payment shall be made with respect to a Financial Target unless the following minimum percentage of such Target is achieved:

 

  •  

at least 85% of the Revenue Target;

 

  •  

at least 85% of the EBITDA Earnings Target; or

 

  •  

at least 75% of the Adjusted EBITDA Earnings Target.

Bonus Payouts shall be straight-lined; the following is an example of certain target levels:

 

  A. For the Revenue or EBITDA Earnings Target:

 

  i. Achievement of 85% of the target will equal a 25% bonus payout for such target

 

  ii. Achievement of 90% of the target will equal a 50% bonus payout for such target

 

  iii. Achievement of 95% of the target will equal a 75% bonus payout for such target

 

  iv. Achievement of 100% of the target will equal a 100% bonus payout for such target

 

  B. For the Adjusted EBITDA Earnings Target:

 

  i. Achievement of 75% of the target will equal a 25% bonus payout for such target

 

  ii. Achievement of 80% of the target will equal a 40% bonus payout for such target

 

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  iii. Achievement of 85% of the target will equal a 55% bonus payout for such target

 

  iv. Achievement of 90% of the target will equal a 70% bonus payout for such target

 

  v. Achievement of 95% of the target will equal a 85% bonus payout of such target

 

  vi. Achievement of 100% of the target will equal a 100% bonus payout of such target

Calculation of Bonus Payouts Above 100%

If the Company achieves at least 85% of each of the Revenue Target and EBITDA Earnings Target and at least 75% of the Adjusted EBITDA Earnings Target, then to the extent the achievement of any of the Financial Targets is greater than 100%, bonus payouts associated with such target or targets may exceed 100% as described below (“Additional Bonus Amounts”). In no event would Additional Bonus Amounts actually paid out be in excess of 20% of actual Adjusted EBITDA for 2011. Additional Bonus Payments will be straight-tlined on the same basis as set forth above. For example

 

  A. Achieving 105% of the Revenue Target or the EBITDA Earnings Target would result in a 125% bonus payout and achieving 110% would result in a 150% bonus payout. In no event would a bonus payout exceed 150% for either the Revenue Target or the EBITEDA Earnings Target.

 

  B. Achieving 105% of the Adjusted EBITDA Earnings Target would result in a 115% bonus payout, achieving 110% would result in a 130% bonus payout, achieving 115% would result in a 145% bonus payout, and achieving 116.7% would result in a 150% bonus payout. In no event would a bonus payout exceed 150% for the Adjusted EBITEDA Earnings Target.

 

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