Document:

WEX 2014.12.31 EX 10.27

Exhibit 10.27

2013 FleetOne Integration Long-Term Incentive Program 

Award Date: 
March 15, 2013

Unit Allocation Ratio: 
100% Performance Based Restricted Stock Units

Vesting Schedule:
50% of the award vests on March 15, 2014 based on achievement of the 2013 performance metrics listed below and 50% of the award vests on March 15, 2015 based on the achievement of the 2014 performance metrics. 

2013 Performance-Based Restricted Stock Unit Calculations: 
The number of PSUs vesting under this 2013 FleetOne Integration Grant Program is based on the following: 
	
														
	 
	Payout %(1)(5)
	EBITDA (40%) (2)
	PPG Adj Revenue Adj 
(30%)(3)
	SYNERGIES
(30%)(4)

	 
	 
	Perf Level(3)
	$(,000)
	Perf Level(3)
	$(,000)
	Perf Level(3)
	$(,000)

	Threshold
	25%
	85.0%
	$
	23,630
	

	85.0%
	$
	54,700
	

	80.0%
	$
	2,400
	

	Target
	100%
	100.0%
	$
	27,800
	

	100.0%
	$
	64,400
	

	100.0%
	$
	3,000
	

	Max
	200%
	120.0%
	$
	33,460
	

	120.0%
	$
	77,300
	

	200.0%
	$
	6,000
	

2014 Performance-Based Restricted Stock Unit Calculations: 
	
															
	 
	Payout %(1)(5)
	EBITDA (40%) (2)
	PPG Adj Revenue 
(30%)
	SYNERGIES
(30%)(4)

	 
	 
	Perf Level(3)
	$(,000)
	Perf Level(3)
	$(,000)
	Perf Level(3)
	$(,000)

	Threshold
	25%
	85.0%
	$
	28,900
	

	85.0%
	$
	63,750
	

	80.0%
	$
	2,400
	

	Target
	100%
	100.0%
	$
	34,000
	

	100.0%
	$
	75,000
	

	100.0%
	$
	3,000
	

	Max
	200%
	120.0%
	$
	40,800
	

	120.0%
	$
	90,000
	

	200.0%
	$
	6,000
	

		
	(1) 
	Threshold EBITA performance must be achieved for any PSUs to vest. 

		
	(2) 
	Adjusted EBITDA is defined as 2013 Deal Model EBITDA of $27.8M adjusted by synergy savings, synergy costs,and integration costs, totaling ($3.8M) for 2013 

		
	(3) 
	PPG Adjusted Revenue Full-Year is reported 2013 Revenue for the Americas adjusted for the difference between reported 2013PPG and Board-approved budgeted 2013 PPG of $3.50 US. 

		
	(4) 
	Synergy target for 2014 based on Deal Model and represents net synergy savings that are $3.0M incremental to 2013 

		
	(5) 
	 Shares granted are ratable between payout levels. 

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ActiveUS 108089083v.1WEX 2014.12.31 EX 10.28

Exhibit 10.28                                                 

AMENDED AND RESTATED

WEX INC. 
SHORT-TERM INCENTIVE PROGRAM 
 
ARTICLE 1- PURPOSE OF PROGRAM 
WEX Inc. has adopted this Short-Term Incentive Program (“STIP”) to attract and retain high-performing employees; to provide incentives for eligible employees to achieve specified company, department and/or individual performance goals; and to reward such employees for the achievement of specified goals on an annual basis.  The Short-Term Incentive Program is intended to qualify as performance-based compensation under Section 162(m) of the Internal Revenue Code. 
ARTICLE 2- DEFINITIONS 
Wherever used in this document, the following terms have the meanings set forth below. 
2.1 Appendix means an Appendix to this Program document containing targets, payment metrics, and other terms of the Program (or modifications thereof) applicable to a specific Plan Year.  The Appendices shall be considered part of the Program document. 
2.2 Company means WEX Inc. or any legal entity that is controlled by, under common control with, or that controls WEX Inc.
 2.3 Eligible Earnings means total gross pay for the applicable Plan Year  (or the portion thereof during which the Participant is actively employed and eligible to participate in the STIP), including, salary or wages classified by the Company as regular; lump sum merit; paid time off (PTO), whether planned or unplanned; holiday; bereavement; jury duty; retroactive pay; overtime pay; shift differential; and excluding, salary or wages classified by the Company as disability pay, commission/incentive pay, and bonuses. 
2.4 Effective Date means January 1, 2014. 
2.5 MBO means management by objectives – Key Business Drivers. 
2.6 Participant means an eligible employee who participates in the Program for a Plan Year in accordance with Article 3. 
2.7 Plan Year means the fiscal year of the Company; as of the Effective Date, the Plan Year is the calendar year. 
2.8 Program means this WEX Inc. Short-Term Incentive Program, as amended from time to time, including the provisions of any Appendix, which are incorporated herein. 

ARTICLE 3- PARTICIPATION 
3.1 Eligible Employees 

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Exhibit 10.28                                                 

Each full-time regular or part-time regular employee of the Company who meets the following requirements shall be a Participant for a Plan Year: 
(a) The employee is not eligible for payout under a subsidiary bonus program, a commission plan, or a high performance pay plan of the Company; and
(b) The employee is generally considered an individual contributor, team leader, manager, director, vice president, senior vice president, executive vice president, president or chief executive officer within the Company’s human resources information system and except as provided in Section 3.2, the employee must be actively employed on the bonus payment date for the applicable year.

3.2 Special Rules 
(a) A Participant who dies or becomes totally disabled during a Plan Year (as determined under the Company’s Long-Term Disability program) may receive a pro-rated bonus at target for the applicable year based on his or her Eligible Earnings during the period of the Participant’s active employment.  Any bonus payable to a deceased Participant shall be paid to his or her personal representative.   Any bonus paid pursuant to this Section 3.2(a) shall be paid within 15 days of the Participant’s death or the determination of total disability.
(b) A Participant who is not actively employed on the bonus payment date for a Plan Year due to an approved leave of absence may receive a bonus for the applicable year based on his or her Eligible Earnings during the period of the Participant's active employment upon his or her return to active employment by the Company.  
(c) A Participant who shall be the subject of a Performance Improvement Plan and continues to be the subject of a Performance Improvement Plan at the time payments are made under Section 5.1 of the Program shall not be eligible to receive a payment until he or she has successfully met the requirements of the Performance Improvement Plan.  Any bonus paid pursuant to this Section 3.2(c) shall be paid no later than the end of the calendar year following the Plan Year.  

ARTICLE 4- INCENTIVES 
The Corporate and Executive Officer MBOs for each Plan Year shall be approved by the Compensation Committee of the Company’s Board of Directors, or its delegate. 
An Individual Performance Factor (“IPF”) shall be assigned to an employee classified as an “associate” based on criteria established by the Company.  The IPF for each associate shall be initially established at 1.00.  An associate’s IPF for payout may be adjusted down, but not below 0.75, or up, but not above 1.25, by action of his or her supervisor with the approval of his or her division Senior Vice President, or Executive Vice President as applicable.  However, the foregoing adjustments (in the aggregate) must not increase the total amount payable under the Program for the given year.  In this regard, neither the CEO nor any other executive officer is to be considered as an “associate.”
The performance measures applicable to a Plan Year shall be set out in the Appendix.   
ARTICLE 5- PAYMENTS 

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Exhibit 10.28                                                 

5.1 Time and Form 
Bonuses shall be calculated and paid in a single payment for the applicable year.  
5.2 Position Changes 
“Position changes” include promotions, demotions, and transfers between positions and/or departments.  All calculations shall be made based on each Participant’s applicable Eligible Earnings and the Participant’s position and STIP percentage as prorated throughout the plan year. Your bonus will be calculated based on what your MBOs are on the last day of plan period, which is December 31st.
5.3 Taxes 
All federal, state or local taxes as well as any garnishments that the Program Administrator determines are required to be withheld from any payments made under the Program shall be withheld. 
ARTICLE 6- ADMINISTRATION 
6.1 Program Administrator 
The Program shall be administered by the Compensation Committee of the Company’s Board of Directors, which may delegate administrative responsibility in whole or in part to the Chairman and Chief Executive Officer and/or the Senior Vice President, Human Resources (“Administrators”), subject to any requirements for review and approval that may be established by the Compensation Committee.  In all areas not specifically reserved for such review and approval, the decisions of the applicable Administrator shall be binding on the Company and each eligible employee under Article 3.  Notwithstanding the foregoing, the Compensation Committee may not modify MBOs or other performance criteria during a Plan Year so as to increase the payment to a Section 162(m) Participant (as defined below) or exercise its discretion to increase the amount of incentive pay that would otherwise be due a Section 162(m) Participant upon attainment of a performance goal. 
6.2 Claims 
Claims regarding payments under the Program shall be directed to a Participant’s direct supervisor and/or the Company’s Human Resources Department.  Any claim regarding the amount of any bonus payment hereunder shall be made within 30 days of the date of such payment, or shall be forfeited. 
ARTICLE 7- AMENDMENT AND TERMINATION 
The Company reserves the right to terminate, amend, modify and/or restate this Program, in whole or in part, at will at any time, with or without advance notice. 
ARTICLE 8- MISCELLANEOUS 
8.1 Payment Adjustments and Special Circumstances 
The Compensation Committee shall have the authority to adjust payments under the Program (upward or downward) at its discretion.  Subject to the approval of the Compensation Committee, the Chairman and Chief Executive Officer and the Senior Vice President, Human Resources, acting together, shall have the power to adjust payments under the Program (upward or downward) as and 

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Exhibit 10.28                                                 

to the extent appropriate to achieve the stated goals and purposes of the Program and may approve exceptions to the Program under special circumstances, to avoid undue hardship with respect to a Participant.  Notwithstanding the foregoing, neither the Compensation Committee, the CEO, the Senior Vice President, Human Resources, nor any other person may increase or accelerate the payment due to any Section 162(m) Participant with respect to any Plan Year.  The term “Section 162(m) Participant” shall mean the CEO and each of the four highest paid officers of the Company (other than the CEO) on the last day of the taxable year, for purposes of the executive compensation disclosure rules under the Securities Exchange Act of 1934.  
8.2 Information 
The Program Administrators shall be responsible for ensuring effective communication of the Program to eligible employees.  Copies of the Program shall be available to all Participants.  All modifications and changes to the Program shall be appropriately documented and communicated to Participants. 
8.3 No Guarantee of Payment 
The Company does not guarantee payment of any bonus amounts hereunder, except to the extent that payment is required by applicable law. 
8.4 Limitation of Employees’ Rights 
Nothing contained in the Program shall confer upon any person a right to be employed or to continue in the employ of the Employer, or interfere in any way with the right of the Employer to terminate the employment of a Participant at any time, with or without cause. IN WITNESS WHEREOF, WEX Inc. has caused this document to be executed by its duly authorized officer this 13th day of, 2014. 
      WEX Inc. 
      By:    /s/ Jenifer Rinehart 
               Jenifer Rinehart
 
      Its:     Senior Vice President, Human Resources 
 
      Date: 3/13/2014     

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Exhibit 10.28                                                 

APPENDIX I
2014 STIP FACTORS 

STIP Weightings for Plan Year Calculations and Payout

STIP weightings vary by individual but will(*) follow the formula shown: 

	
						
	MBO STIP Weightings
	 
	 
	Corporate Metrics
	Strategic Metrics

	 
	 
	 
	ANI
	PPG Adj Revenue
	MBOs  2-4

	CEO
	 
	 
	50%
	20%
	30%

	Executive
	 
	50%
	20%
	30%

	VP
	 
	 
	40%
	20%
	40%

	Director/Mgr
	 
	40%
	20%
	40%

	Team Lead/Associate
	 
	 
	80%
	20%
	 

*Unless approved by the CEO

STIP Payout Levels 

The Company must achieve at least threshold results for Corporate Full-Year 
Adjusted Net Income in order to pay out any portion of the Short Term Incentive Program to any Participant.

 
	
		
	Performance Results
	Payout %

	Threshold
	25%

	Threshold/Target
	50%

	Target
	100%

	Target/Max
	150%

	Max or above
	200%

Note:  Payouts for all Metrics and MBOs will be according to the above chart and will be interpolated between the performance result levels whenever possible.  If an MBO cannot be interpolated due to the metrics used, payout level for that MBO will be at the highest performance result level fully achieved.

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Exhibit 10.28                                                 

2014 STIP Metrics

Corporate STIP Metrics: 
  
	
				
	Performance Goal
	Threshold Performance
	Target Performance
	Maximum Performance

	Adjusted Net Income 1
	$152.988m
	$191.235m
	$218.008m

	PPG Adjusted Revenue 2
	$654.967m
	$770.549m
	$809.077m

	 
	 
	 
	 

		
	(1) 
	Adjusted Net Income means Adjusted Net Income as reported in the Corporation’s Form 10-K filing reporting the Corporation’s results for the performance period (the “10-K ANI”).  Notwithstanding the foregoing, in order to determine the level of performance for purposes of this Program,  the Compensation Committee may exercise discretion to reduce the 10K ANI by any or all of the following items (if any): losses from discontinued operations, the cumulative effects of changes in Generally Accepted Accounting Principles, any one-time charge or dilution resulting from any acquisition or divestiture, the effect of changes to our effective federal or state tax rates, extraordinary items of loss or expense, and any other unusual or nonrecurring items of loss or expense, including restructuring charges.   

		
	(2) 
	PPG Adjusted Revenue is reported 2014 Revenue adjusted for the difference between reported 2014 PPG and Board-approved budgeted 2014 PPG of $3.49 US and A$1.31 (per liter) Australian. 

MBOs 

When establishing the MBO performance levels, Threshold goals are generally set at 90% probability of achievement, Target goals are generally set at 75% probability of achievement, and Maximum goals are generally set at 25% probability of achievement.   

Executive Officer MBOs:  The CEO, EVPs, and SVPs generally have 2-4 MBOs which may be shared with other executives or represent a targeted strategic or operational MBO. 

Management MBOs:  Each VP, Director or Manager generally has 2-4 MBOs which may be shared with other Managers or represent a targeted strategic, functional or operational MBO. 

 

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