exv10w13






Exhibit 10.13




FY 2009 Management Cash Incentive Compensation Plan




	 	 	 
	To:
	 	All bonus-eligible employees

	From:
	 	John Keatley

	Date:
	 	August 1, 2008

	Re:
	 	Bonus Pay for FY 2009






 




This memo provides an overview of the incentive compensation plan for Green Dot management for FY
2009. The plan applies to all bonus-eligible employees except for those in the following areas:





	 	•	 	Retail Sales — Business Development
	 
	 	•	 	Risk Operations (Representatives)




Additionally, in order to be eligible for the bonus plan period an individual must be an employee
90 days before the close of the cycle and employed at the time of payment.



Management Incentive Plan



Bonuses will be paid on a semi-annual basis (on or around February 28, 2009 and August 31, 2009)
based upon Green Dot’s achievement of corporate profit goals and the employee’s achievement of
individual objectives. Individual bonuses will be calculated based on the following formula.




Actual bonus paid = (Target Bonus) x (% Achievement of Corporate Objectives) x (% Achievement of
Individual Objectives)




Target bonus



The target bonus is the amount that an employee is eligible to achieve, typically stated as a
percentage of base salary in the employee’s offer letter or employment agreement. Since the bonus
is paid on a semi-annual basis, the target bonus would be the percentage times the salary that the
employee received during the previous 6-month period. If the employee’s target bonus is stated as
a fixed dollar amount, the target bonus would be 50% of that amount.




Achievement of Corporate Objectives



The % Achievement of Corporate Objectives factor is based upon the company’s achievement of its
profit before tax (PBT) target for the relevant 6-month period, and is calculated according to the
table below:




	 	 	 
	Profit Before Tax, % of Management Plan	 	Bonus Adjustment Factor
	<90%
	 	0%
	90-100%
	 	100% - 5 x (100% - PBT*)
	100+%
	 	100%





As the table above describes, if the company misses its overall profit before tax target by 30% or
more, no individuals under this incentive compensation plan will receive any bonus. Also,
individuals under this incentive compensation plan can achieve 100% of their target bonus only if
the company achieves 100% of its target PBT.







1









 








February 5, 2010




% Achievement of Individual Objectives



Each employee will have a list of individual objectives for each 6-month period, and their bonus
will be allocated across these objectives. These objectives need to be submitted to HR no later
than 30 days after the beginning of the period. These objectives should be:





	 	•	 	Directly or indirectly linked to the company’s achievement of its objectives
	 
	 	•	 	Aspirational; achievement of individual objectives should represent a bonus-worthy
achievement
	 
	 	•	 	Linked to the employee’s job description and direct responsibilities




In order to qualify for bonus for an individual objective, the participant needs to achieve at
least 90% of that objective. The calculation of the % Achievement of Individual Objectives will be
the weighted average of the % achievement of each individual objective (with the exception that any
achievement less than 90% will be counted as zero). % Achievement of any individual objective is
capped at 100%.



Example:



Assume that an employee has three individual objectives, a target bonus of 10% of base salary, and
a base annual salary of $80,000. This employee’s target bonus for the 6-month period would be 50%
x 10% x $80,000 = $4,000. During the first 6 months of the fiscal year, the employee’s %
Achievement of Individual Objective Targets would be calculated according to the table below:




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Stretch	 	 	 	 	 	 	 	 	 	% Achievement
	 	 	Target (for	 	% of Individual	 	 	 	 	 	of Individual
	 	 	6-month	 	Objective	 	% Bonus	 	Objective
	Objective	 	period)	 	Achieved	 	Allocation	 	Targets
	Increase value of
the network by
increasing
transactions per
month at an annual
growth rate of 20%
or more

	 	Management Plan
transactions per
month — 500,000
transactions
	 	95% (450,000
transactions)
	 	 	50	%	 	 	47.5	%
	Increase card
functionality by
continually launching
new features

	 	Launch 2 new

features
	 	 	50	%	 	 	25	%	 	 	0	%
	Build a world class 

sales team

	 	Hire and train 2
new employees
	 	 	100	%	 	 	25	%	 	 	25	%
	Total

	 	 	 	 	 	 	 	 	 	 	 	 	72.5	%





Let’s assume that the company’s target was to achieve Profit Before Tax of $20 million during this
6-month period. If the company actually had Profit Before Tax of $18.5 million, the Bonus
Adjustment Factor would be:



Bonus Adjustment Factor = 100% — 5 x ( 100% — $18.5 million / $20.0 million) = 62.5%
This employee’s bonus for the 6-month period would be: $4,000 x 62.5% x 72.5% = $1,812.50



Please see either Human Resources or me with any questions. Thank you.





2