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HOUSE_OVERSIGHT_024335

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Table of Contents The resulting payout range for Mr. Garcia, our chief executive officer, is $0-$530,667, with a target of $266,667. For both Mr. Jenkins, our chief financial officer, and Mr. Huston, our chief operating officer, the payout range is $0-$497,500, with a target of $250,000. For both Mr. Keeton, our chief brand officer, and Mr. Gill, our chief product officer, the payout range is $0-$437,800, with a target bonus of $220,000. Performance Metrics and Goals The performance period for the annual incentive is our fiscal year. The committee selected retail units sold, gross profit per unit ex-Gift, and EBITDA margin ex-Gift as the performance metrics for our 2018 annual incentive plan because these are the primary metrics we use in evaluating our own performance when communicating our financial results to our investors. The committee believes that these performance measures help focus the executives on growing retail units sold and revenue, increasing total gross profit per unit, and demonstrating operating leverage. The detailed definition of each measure and rationale of selection are provided below: PERFORMANCE METRICS USED IN THE 2018 AIP WEIGHT DEFINITION RATIONALE OF SELECTION Retail Units Sold 40% The number of vehicles We view retail units sold as a key measure of our growth for several reasons. sold to customers in a First, retail units sold is the primary driver of our revenues and, indirectly, gross given period, net of profit, since retail unit sales enable multiple complementary revenue streams, retums under our including financing, VSCs, GAP waiver coverage, and trade-ins. Second, growth seven-day return policy. _ in retail units sold increases the base of available customers for referrals and repeat sales. Third, growth in retail units sold is an indicator of our ability to successfully scale our logistics, fulfillment, and customer service operations. Gross Profit per 40% The gross profit before Total gross profit per unit ex-Gift is driv

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