Document:

exv10w4

 

Exhibit 10.4

[NOTE: CONFIDENTIAL MATERIALS OMITTED AND FILED SEPARATELY WITH THE

SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.]

AMENDED AND RESTATED

WRIGHT EXPRESS CORPORATION

SHORT-TERM INCENTIVE PROGRAM

ARTICLE 1- PURPOSE OF PROGRAM

Wright Express Corporation 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 Wright Express Corporation.

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; paid time off (PTO), whether
planned or unplanned; holiday; bereavement; jury duty; retroactive pay; overtime pay; shift
differential; language 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, 2008.

2.5 MBO means management by objectives.

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 Wright Express Corporation Short-Term Incentive Program, as amended from
time to time, including the provisions of any Appendix, which are
incorporated herein.

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ARTICLE 3- PARTICIPATION

3.1 Eligible Employees

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 commission plan or a high
performance pay plan of the Company.

          (b) The employee commences employment on or before November 1 of the applicable year;
and

          (c) Except as provided in Section 3.2, the employee is 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
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.

          (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 pro-rated bonus for the applicable
year based on his or her Eligible Earnings during the period of the Participant’s active
employment.

          (c) A Participant who shall be the subject of a Performance Improvement Plan during
the Plan Year and continues to be the subject of a Performance Improvement Plan relating to
such Plan Year 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.

ARTICLE 4- ANNUAL 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 Effectiveness Factor (“IEF”) shall be assigned to an employee classified as

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an “associate” based on criteria established by the Company. The IEF for each associate shall be
initially established at 1.00. An associate’s IEF for a Plan Year may be adjusted down, but not
below 0.80, or up, but not above 1.20, by action of his or her supervisor with the approval of his
or her division Senior Vice President and the Company’s President and Chief Executive Officer.
However, the foregoing adjustments (in the aggregate) must not increase the total amount payable
under the Program for the given year.

The performance measures applicable to a Plan Year shall be set out in the Appendix.

ARTICLE 5- PAYMENTS

5.1 Time and Form

Bonuses shall be calculated and paid in a single payment for the applicable year, by no later than
March 31 of the following year.

5.2 Position Changes

“Position changes” for a Plan Year include promotions, demotions, and transfers between positions
and/or departments.

          (a) For a non-Management Participant who is STIP eligible for the entire year, the
amount of the Participant’s bonus is calculated based on his or her position on December 31
of the applicable year.

          (b) For a non-Management Participant who is an eligible employee for a portion of the
year and an ineligible employee for a portion of the year, the amount of the Participant’s
bonus is calculated based on pro-ration for the portion of the year in which he or she was
an eligible employee.

          (c) For a Participant who is, at any point during the year, a Manager, Director, Vice
President, Senior Vice President, Executive Vice President, or the President and Chief
Executive Officer, the amount of the Participant’s bonus is calculated based on the period
of time in each STIP eligible position and the associate’s STIP target percentage for each
position during the applicable year.

5.3 Taxes

All federal, state or local taxes that the Program Administrator determines are required to be
withheld from any payments made under the Program shall be withheld.

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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 President
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 Compensation 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 President
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 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 President and CEO, the
Senior Vice President, Human Resources, nor any other person may increase or

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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 President and CEO and each of the four highest
paid officers of the Company (other than the President and 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, Wright Express Corporation has caused this document to be executed by its duly
authorized officer this 27th day of March, 2008.

	 	 	 	 	 
	 	WRIGHT EXPRESS CORPORATION

 	 
	 	By:  	/s/ Robert C. Cornett
 	 
	 	 	Robert C. Cornett
 	 
	 	Its: Senior Vice President, Human Resources
 
Date: March 27, 2008

	 
	 

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APPENDIX I

2008 STIP FACTORS 

STIP Weightings

	 	 	 	 	 	 	 	 	 	 	 	 
	 	 
	 	 	WEX Corporate MBOs	 	 	 	 
	 	 
	 	 	Adj Net Income
	 	 	PPG Adj Revenue
	 	 	Strategic or Operational MBOs	 
	 	All Participants
	 	 	60%
	 	 	20%
	 	 	20%	 
	 

Payout Levels

In 2008, the Company must achieve at least threshold results for Adjusted Net Income in order to
pay out any portion of the Short Term Incentive Program.

	 	 	 	 	 	 
	 	Performance Results
	 	 	Payout %	 
	 	Threshold
	 	 	50%	 
	 	Threshold/Target
	 	 	75%	 
	 	Target
	 	 	100%	 
	 	Target/Max
	 	 	150%	 
	 	Max
	 	 	200%	 
	 

Note: Payout levels must be fully achieved for payout. Payout levels of the two corporate metrics
payout levels are incrementalized. Certain other objectively measurable MBOs will also be
incrementalized. All other MBOs are paid at the lowest performance result level achieved unless
identified as an incrementalized MBO. If actual performance for strategic or operational MBOs
falls between target and target/max, which is the midpoint between target and max, payout is at
target. If performance falls between target/max and maximum levels, payout is at target/max

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MBOs

Corporate MBOs:

	 	 	 	 	 	 	 	 	 	 	 	 
	 	Performance Goal
	 	 	Threshold Performance
	 	 	Target Performance
	 	 	Maximum Performance	 
	 	Adj Net Income1
	 	 	$ [**]
	 	 	$ [**]
	 	 	$ [**]	 
	 	PPG2 Adj Revenue3
	 	 	$ [**]
	 	 	$ [**]
	 	 	$ [**]	 
	 

1Adjusted Net Income means Adjusted Net Income as reported in the Corporation’s
Form 8-K filing reporting the Corporation’s results for the 4th Quarter of 2008 and may be
adjusted to exclude 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.
The Compensation Committee may exercise discretion to include all or part of an item of
loss or expense.

2PPG: Price Per Gallon

3PPG Adjusted Revenue is reported 2008 Revenue adjusted for the difference
between reported 2008 PPG and Board-approved budgeted 2008 PPG.

Executive Officer MBOs: CEO, EVPs, and SVPs generally share the following strategic MBOs for 2008:

Strategic Revenue MBO:

	 	 	 	 	 	 	 	 	 	 	 	 
	 	Performance Goal

	 	 	Threshold Performance
	 	 	Target Performance
	 	 	Maximum Performance	 
	 	2008 Strategic Growth Revenue Achievement

	 	 	$[**]m from sources below
	 	 	$[**]m from sources below
	 	 	$[**]m from sources below	 
	 

	 	 	 	 	 	 
	 	Strategic Initiative

	 	 	2008 Budget (millions)	 
	 	[**]

	 	 	$[**]	 
	 	[**]

	 	 	$[**]	 
	 	[**]

	 	 	$[**]	 
	 	[**]

	 	 	$[**]	 
	 	[**]

	 	 	$[**]	 
	 	Total

	 	 	$[**]	 
	 

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Execution MBO:

	 	 	 	 	 	 	 	 	 	 	 	 
	 	Performance Goal

	 	 	Threshold Performance
	 	 	Target Performance
	 	 	Maximum Performance	 
	 	Execution of key 2008 deliverables to drive
strategic revenue in 2009 and beyond as rated
by the Board of Directors
Scale is 1-5 as follows:
 

5 — exceeds most milestones

4 — meets all and/or exceeds most milestones

3 — meets most and/or exceeds some milestones

2 — meets most milestones

1 — does not meet most milestones

	 	 	

Average score of 2
across all focus
areas
	 	 	

Average score of 3
across all focus
areas
	 	 	

Average score of 4
across all focus
areas	 
	 

	 	 	 	 	 	 	 	 	 
	 	Focus Area

	 	 	Milestone
	 	 	Measured as	 
	 	[**]

	 	 	[**]
	 	 	A detailed milestone plan will be provided by
3/30/08 for each 2008 focus area.	 
	 	[**]

	 	 	[**]
	 	 	Quarterly updates will be provided to the Board
of Directors throughout the year.	 
	 	[**]

	 	 	[**]
	 	 	At the end of 2008, the Compensation Committee
will be surveyed	 
	 	[**]

	 	 	[**]
	 	 	and asked to rate Management on
their success in achieving each	 
	 	[**]

	 	 	[**]
	 	 	of the key
milestones. Average Compensation Committee
score	 
	 	 

	 	 	 	 	 	across all focus areas will determine
payout on this MBO.	 
	 

Vice President MBOs: Each Vice President generally has [**] MBOs, which may include Strategic
Revenue and/or Execution and in some cases may include a targeted strategic or operational MBO.

Department MBOs: Each Manager or Director generally has [**] MBOs. Manager MBOs will generally
mirror the different MBOs assigned to their VP, however, in some cases managers may be assigned a
targeted strategic or operational MBO.

Associates at Team Leader or Individual Contributor levels automatically have the same MBO(s) as
their direct supervisor under the STIP.

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Sales Leadership Incentive Plans:

Individuals in certain, specified jobs within the leadership positions of the sales function will
have additional incentive opportunity under this program. For the purposes of all sales incentive
plans, PPG adjusted revenue is PPG adjusted revenue used for 2008 STIP minus any revenue achieved
in 2008 from acquisitions closed in 2008. These additional incentive opportunities are as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	2008 EVP, Sales and Marketing Incentive Plan	 
	 	PPG Adj Corporate 

Revenue $(,000)

	 	 	Company Performance Level
	 	 	Plan Performance Level
	 	 	EVP, Sales Payout
	 
	 	$[**]

	 	 	[**]%
	 	 	Miss
	 	 	$	0	 	 
	 	$[**]

	 	 	[**]%
	 	 	Threshold
	 	 	$	50,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Target
	 	 	$	100,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Target/Max
	 	 	$	150,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Max
	 	 	$	200,000	 	 
	 

No payout below Threshold level in the plan

Payout for performance between levels above threshold will be incrementalized

If results exceed maximum of special incentive plan, CEO can recommend higher payout for approval

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	2008 SVP, Corporate Payment Solutions Incentive Plan	 
	 	PPG Adj Channel Revenue

$(,000)

	 	 	Company Performance Level
	 	 	Plan Performance Level
	 	 	SVP, Sales Payout
	 
	 	$[**]

	 	 	[**]%
	 	 	Miss
	 	 	$	0	 	 
	 	$[**]

	 	 	[**]%
	 	 	Threshold
	 	 	$	25,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Target
	 	 	$	50,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Target/Max
	 	 	$	75,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Max
	 	 	$	100,000	 	 
	 

No payout below Threshold level in the plan

Payout for performance between levels above threshold will be incrementalized

If results exceed maximum of special incentive plan, CEO can recommend higher payout for approval

	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	2008 VP, Small Business Fleet Sales Incentive Plan	 
	 	PPG Adj Channel Revenue

$(,000)

	 	 	Company Performance Level
	 	 	Plan Performance Level
	 	 	VP, Sales Payout
	 
	 	$[**]

	 	 	[**]%
	 	 	Miss
	 	 	$	0	 	 
	 	$[**]

	 	 	[**]%
	 	 	Threshold
	 	 	$	15,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Target
	 	 	$	30,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Target/Max
	 	 	$	45,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Max
	 	 	$	60,000	 	 
	 

No payout below Threshold level in the plan

Payout for performance between levels above threshold will be incrementalized

If results exceed maximum of special incentive plan, CEO can recommend higher payout for approval

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	 	2008 VP, Corporate Payment Solutions Incentive Plan	 
	 	PPG Adj Channel Revenue

$(,000)

	 	 	Company Performance Level
	 	 	Plan Performance Level
	 	 	VP, Sales Payout
	 
	 	$[**]

	 	 	[**]%
	 	 	Miss
	 	 	$	0	 	 
	 	$[**]

	 	 	[**]%
	 	 	Threshold
	 	 	$	15,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Target
	 	 	$	30,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Target/Max
	 	 	$	45,000	 	 
	 	$[**]

	 	 	[**]%
	 	 	Max
	 	 	$	60,000	 	 
	 

No payout below Threshold level in the plan

Payout for performance between levels above threshold will be incrementalized

If results exceed maximum of special incentive plan, CEO can recommend higher payout for approval

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Exhibit 10.5

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SECURITIES AND EXCHANGE COMMISSION. ASTERISKS DENOTE OMISSIONS.]

2008 Long Term Incentive Program 

Award Date:

March 30, 2008

Unit Allocation Ratio:

	 	 	 	 	 	 
	 	Job Category

	 	 	Ratio of PSUs/RSUs by job level	 
	 	CEO

	 	 	100/0	 
	 	EVP

	 	 	100/0	 
	 	SVP

	 	 	70/30	 
	 	VP

	 	 	50/50	 
	 	Director and below

	 	 	30/70	 
	 	New Hire Pool

	 	 	RSU Only	 
	 

RSUs = Restricted Stock Units

PSUs = Performance-Based Restricted Stock Units

Vesting Schedule:

The award vests at a rate of 25% each year over 4 years.

Performance-Based Restricted Stock Unit Calculations:

The number of PSUs received under this Long Term Incentive Program is based on the following:

	 	 	 	 	 	 	 	 	 	 	 	 
	 	
2008 PSU Metric
	 
	 	Metric

	 	 	Threshold
	 	 	Target
	 	 	Maximum	 
	 	Adjusted Net Income*

	 	 	$[**]
	 	 	$[**]
	 	 	$[**]	 
	 

*as defined in the 2008 Short-Term Incentive Program Document

	 	 	 	 	 	 
	 	2008 Payout Levels
	 
	 	2008 Adjusted Net Income Result

	 	 	Shares Granted as a Percent of PSU Target Award*	 
	 	Below Threshold

	 	 	0%	 
	 	Threshold

	 	 	50%	 
	 	Target

	 	 	100%	 
	 	Maximum

	 	 	200%	 
	 	Above Maximum

	 	 	 200%	 
	 

*Shares granted are ratable between Threshold, Target, and Maximum based on actual performance.

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