Document:

Exhibit 10.14.1

 

Date:      March 14, 2011

 

To:         Management Metric Based Bonus (MBB) Participants

 

From:    Jim Lejeal

 

Regarding:           Q1-2011 MBB Algorithm

 

The Rally Management Metric Based Bonus for Q1 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 Q1 “assigned quota” Total Product Bookings Sales Goal:

 

Company Quota Amount Budget:

 

	
New Product   Bookings
    	
 
    	
$
    	
4,000,000
    	
 
    
	
Renewal Product   Bookings
    	
 
    	
$
    	
4,155,000
    	
 
    
	
Total Product   Bookings
    	
 
    	
$
    	
8,155,000
    	
 
    

 

Payment Structure:

 

We will continue to have a 90% new bookings threshold as well as a total payment cap of 125%:

 

Anticipated Payout Date:

 

1 month after close of quarterExhibit 10.14.2

 

Date:      June 15, 2011

 

To:         Management Metric Based Bonus (MBB) Participants

 

From:    Jim Lejeal

 

Regarding:           Q2-2011 MBB Algorithm

 

The Rally Management Metric Based Bonus for Q2 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 Q2 “assigned quota” (aka “Don’s number”) Total Product Bookings Sales Goal:

 

Company Quota Amount Budget:

 

	
New Product Bookings
    	
 
    	
$
    	
4,400,000
    	
 
    
	
Renewal Product   Bookings
    	
 
    	
$
    	
5,075,000
    	
 
    
	
Total Product   Bookings
    	
 
    	
$
    	
9,475,000
    	
 
    

 

Payment Structure:

 

We will continue to have a 90% new bookings threshold as well as a total payment cap of 125%:

 

Anticipated Payout Date:

 

1 month after close of quarterExhibit 10.14.3

 

To:         Management Metric Based Bonus (MBB) Participants

 

From:    Jim Lejeal

 

Regarding:           Q3-2011 MBB Algorithm

 

The Rally Management Metric Based Bonus for Q3 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 Q3 “assigned quota” Total Product Bookings Sales Goal:

 

Company Quota Amount Budget:

 

	
New Product   Bookings
    	
 
    	
$
    	
4,400,000
    	
 
    
	
Renewal Product   Bookings
    	
 
    	
$
    	
5,075,000
    	
 
    
	
Total Product   Bookings
    	
 
    	
$
    	
9,475,000
    	
 
    

 

Payment Structure:

 

We will continue to have a 90% new bookings threshold as well as a total payment cap of 125%:

 

Anticipated Payout Date:

 

1 month after close of quarterExhibit 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 quarterExhibit 10.14.7

 

 

Date:                                                                  March 18, 2013

 

To:                                                                            Management Metric Based Bonus (MBB) Participants

 

From:                                                            Jim Lejeal

 

Regarding:                                Q1 & Q2 FY14 MBB Structure and Goal

 

To align MBB participants with the sales team’s bookings objectives for the 1H period, the 1H MBB program will be awarded and conditioned as follows:

 

The 1H MBB will be paid according to the Company’s performance against the Total Product Bookings assigned to the sales team as quota for the first half of the year.

 

For example, if the company performs at 110% of quota assignment for total product bookings — an MBB participant will earn 110% of their award for this period.

 

Rally will pay the MBB quarterly under the following conditions:

 

·                  A Q1 MBB payment will be paid to participants at 100% provided that the company exceeds 85% of new product bookings quota amount for Q1.

·                  The Q2 MBB payment will be paid to participants according to the company’s performance against the Total Product Bookings quota assignment amount for the first 6 months of the fiscal year.

·                  However, The Company must achieve 90% of the 1H new product bookings for the Q2 portion of the MBB to be paid.

·                  A total payment cap will apply and is set at 125%.

 

Target amounts, once set, will be communicated in the “Monday Team Meeting”.

 

True Up:

 

A “true-up” will take place on the Q2 payment.

 

·                  For example, if the Company performs to 115% of product bookings for 1H 2014 and 100% was paid for Q1 the additional 15% due on 1H will be paid with the Q2 payment.

 

Q1 Payment Recoverability:

 

Note that in the unlikely event the 90% of 1H FY14 bookings is not attained the Q1 bonus will be deemed earned based on achieving the 85% “new bookings” milestone for Q1.

 

Anticipated Payout Date:

 

It is anticipated Rally will

 

·                  pay the Q1 MBB between 15 May 13 and 30 May 13 and

·                  pay the Q2 MBB between 30 Aug 13 and 13 Sept 13Exhibit 10.15.9

 

	
USD EVP
    	
Currency is USD
    
	
 
    	
 
    
	
Q1   FY14 Sales Compensation Plan
    	
Effective: 2/1/2013
    

 

Notes To Plans:

 

· Full on Target Earnings (OTE) will be paid when 100% of the sales targets are met. If paid monthly you will be paid incrementally matching the achievement percent of the team you are compensated against. OTE is split between the major components noted below.

· Commissions can be paid monthly, at the end of the month following the closed month (usually on the 30th/31st of each month, Ex. paid June 30 for May work).

· Management reserves the right to change the compensation plan at any time at their sole discretion and delay commission payment on any transaction.

· Variable compensation payments will be held until you accept your compensation plan. If you find an error in your plan, please notify your manager immediately.

 

PRODUCT COMMISSIONS

 

Subscriptions

 

· Quota is based on an ARR number (Annual Recurring Revenue) equal to the amount of subscription revenue Rally would receive in a 12-month period.

· Quota attainment is applied for the first 12 months on New Orders and Renewal Orders assuming renewal orders are 12, 24, or 36 months long.

· Quota is assigned on an individual basis and is rolled up to a Team (Territory/Region/Total). Individuals are paid based on the Team quota attainment (not individual attainment).

· Your Base Commission Rate is calculated as your Quarter Product Variable divided by your Quarter Team Product Quota.

· Quarterly Accelerator rates may apply as follows based on Team Quota Attainment (New and Renewal Orders):

· Up to 100% = Base Commission Rate, Over 100% = Quarterly Accelerator Rate

· Commissions will be clawed back to the Team at the rate originally paid if the customer does not fulfill 12 months of subscription obligation or ceases to pay.

· Claw backs will apply to unpaid subscription fees only.

 

Multi-Year Subscriptions — New and Renewal

 

· Quota attainment and commissionable amount is applied based on the ARR + the ARR MultiYear Discount amount (negates the multiyear discount).

 

SERVICES COMMISSIONS — Services Contracts/ SOWs Fully Executed

 

· Quota is applied based on dollar value of a Statement of Work (SOW).

· Quota is assigned on an individual basis and is rolled up to a Team (Territory/Region/Total).

· Individuals are paid based on the Team quota attainment (not individual attainment).

· Base Services Rate is 0.25%.

· 300% Rule

· Accelerator rates apply for attainment between 100% of services quota and 300% of quota at 1.5x the base rate. Anything above 300% is paid at the Base Services Rate.

· For any SOW over $100,000.

·  50% of commissionable amount will be booked during the month the SOW was closed.

·  Remaining 50% of commissionable amount will be booked at end of quarter up to 300% of quota.

·  Anything over 300% of quota will be paid in following quarters at their base rate upon deliver.

· Accelerator rates are only paid once the individual has reached at least 80% of their Team Subscription Quota.

· Once 80% of Team Subscription Quota percent attainment has been reached, the accelerators are paid retroactively for the quarter on all attainment over 100%.

· Management reserves the right to claw back amounts that do not eventually get delivered.

 

MANAGEMENT BY OBJECTIVE (MBO)

 

· MBO’s are based on a Plan provided separately by management.

· MBO’s are paid either monthly or quarterly as defined in the plan.

 

	
/s/   Don Hazell
    	
 
    	
18   March 2013
    	
 
    	
/s/   Tim Miller
    	
 
    	
19   March 2013
    
	
Employee   Signature
    	
 
    	
Date
    	
 
    	
Manager   Signature
    	
 
    	
Date
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Don Hazell
    	
 
    	
Tim   Miller
    
	
Printed Name
    	
 
    	
Printed   Name

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