MicroStrategy 8-K 2008
Confidential Materials omitted and filed separately with the
Securities and Exchange Commission. Asterisks denote omissions.
Executive Vice President
Name: Paul Zolfaghari
Effective Date: 1 January 2008
Annual Bonus Potential: $300,000
Contribution Bonus Rate at Plan: [**]%
Contribution Bonus Rate above Plan: [**]%
Maintenance Bonus Rate: [**]%
As a MicroStrategy Executive Vice President (Plan Participant), you are eligible to earn a bonus based on the financial performance of your Franchise while you are an active employee of MicroStrategy. A bonus may be paid in addition to your base salary.
I. Contribution Targets for 2008
II. Contribution Calculation
Contribution will be calculated based on the [**] for the quarter less the [**] for the quarter using the formula: Contribution = ([**] [**]). Any Contribution amount less than the Contribution Budget Target in a quarter will be distributed equally and added to both the Contribution Budget Target and Contribution Plan Target over the remaining quarters. Although the quarterly targets will increase as a result of any shortfall, the Plan Participant will have the ability to earn their full bonus if they achieve their original Contribution Plan Target for the full year.
III. Contribution Bonus
Your Contribution Bonus shall be calculated by multiplying the quarterly Contribution in excess of the quarterly Contribution Budget Target by the Contribution Bonus Rate at Plan.
Your Contribution Bonus Rate at Plan equals Annual Bonus Potential / (Contribution Plan Target Contribution Budget Target.
Your Contribution Bonus Rate above Plan is applied to any contribution amount above the Contribution Plan Target.
IV. Quote System Compliance As Precondition For Payment Of Any Bonus
No Plan Participant is eligible for the payment of any bonus for any transaction unless: (a) a formal quote was submitted using the MicroStrategy Quote System that clearly describes each term and condition of the proposed transaction and is in full compliance with MicroStrategy Quote System Policy; (b) the submitted quote was approved in advance of any discussion with the customer about the terms and conditions of that transaction; (c) all pricing communications with customer include the official quote approved in the quote system; and (d) the final transaction is identical in all respects to the approved quote.
V. Maintenance Bonus
VI. General Terms
(a) Revenue recognized in the current quarter generated by Sales that have not been completed according to the following Company policies: MicroStrategy Code of Conduct; Revenue Recognition Policy; Quote System Policy; and Contracts Approval, Execution, and Processing Policy.
(a) GAAP Costs will include compensation expenses accrued for your Franchise at the actual pay out rates, as well as bad debt charges, un-recovered expenses, and any relevant Franchise overhead cost allocations.
(b) GAAP Costs will not include costs associated with corporate field overheads and commission costs associated with certain OEM transactions.
Approved by MicroStrategy Incorporated on March 14, 2008.
Accepted by Paul Zolfaghari on March 18, 2008.