Compensation Committee Charter

AMENDED AND RESTATED CHARTER FOR THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF COPART, INC.


(amended and restated October 2, 2012)

PURPOSE:

The purposes of the Compensation Committee of the Board of Directors (the “Board”) of Copart, Inc., a Delaware corporation (the “Company”) established pursuant to this charter are (i) to assist the Board in providing oversight of the Company’s compensation policies, plans and benefits programs and (ii) to review and approve, and, where appropriate, to and make recommendations to the Board of Directors (the “Board”) regarding all forms of compensation to be provided to the employees and directors of, and consultants to the Company, including stock compensation and loans, and all bonus and stock compensation to all employees.

The Compensation Committee has the authority to undertake the specific duties and responsibilities listed below and will have the authority to undertake such other specific duties as the Board from time to time prescribes.

STATEMENT OF PHILOSOPHY

The policy of the Compensation Committee is to maximize stockholder value over time. The primary goal of the Company’s Compensation Committee and its executive compensation program is therefore to closely align the interests of the officers with those of the Company’s stockholders. To achieve this goal the Committee attempts to (i) offer compensation opportunities that attract and retain executives whose abilities are critical to the long-term success of the Company; (ii) motivate individuals to perform at their highest level and reward outstanding achievement; (iii) maintain a significant portion of the executive’s total compensation at risk, tied to achievement of financial, organizational and management performance goals; and (iv) encourage executives to manage from the perspective of owners with an equity stake in the Company

MEMBERSHIP

The Compensation Committee shall consist of a minimum of two (2) non-employee directors of the Company as is determined by the Board. The members of the Compensation Committee are appointed by and serve at the discretion of the Board. The Board may designate one member of the Compensation Committee as its chair.

Each member of the Compensation Committee will be (i) an independent director as defined by the rules of The NASDAQ Stock Market, Inc., (ii) an “Outside Director” as such term is defined with respect to Section 162(m) of the Internal Revenue Code of 1986, as amended, and (iii) a “non-employee” director as defined under Rule 16b-3 promulgated under Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

RESPONSIBILITIES

The responsibilities of the Compensation Committee include:

  1. Unless otherwise determined by a majority of the independent directors of the Board meeting in executive session, review and approve decisions regarding the compensation of the Chief Executive Officer of the Company (the “CEO”) (for purposes of this Compensation Committee Charter, the compensation of the CEO and the other officers of the Company to be approved by the Compensation Committee hereunder shall include all “plan” compensation as such term is defined in Item 402(a)(7) of Regulation S-K promulgated under the Securities Act of 1933, as amended);
     
  2. Unless otherwise determined by a majority of the independent directors of the Board, review and approve decisions regarding all forms of compensation to be provided to the officers of the Company;
     
  3. Review and make recommendations to the Board regarding general compensation goals and guidelines for the Company’s employees and the criteria by which bonuses to the Company’s employees are determined;
     
  4. Review and make recommendations to the Board regarding the compensation policy for the directors of and consultants to the Company;
     
  5. Act as the Administrator (as defined under each plan) and administer, within the authority delegated by the Board, the Company’s equity compensation plans adopted by the Board (the “Plans”). In its administration of the Plans, the Compensation Committee may, pursuant to authority delegated by the Board, (a) grant stock options or stock purchase rights to individuals eligible for such grants (including grants to individuals subject to Section 16 of the Exchange Act in compliance with Rule 16b-3 promulgated thereunder), (b) amend such stock options or stock purchase rights, and (c) take all other actions permitted under the Plans. The Compensation Committee shall also make recommendations to the Board with respect to amendments to the plans and changes in the number of shares reserved for issuance thereunder. If the Board has authorized any other committees of the Board of executive officers (in accordance with Section 157(c) of the Delaware General Corporation Law) to approve the grant of awards under the Company’s equity incentive plans, the Compensation Committee shall receive and review periodic reports of the activities of such committees;
     
  6. Review and discuss with management the Company’s disclosures contained under the caption “Compensation Discussion and Analysis” or CDA, in its registration statement, annual report on Form 10-K, proxy statement or information statement filed with the Securities and Exchange Commission (“SEC”);
     
  7. Prepare a report to be included in the Company’s proxy statement in accordance with applicable SEC rules and regulations, including whether the Compensation Committee reviewed and discussed the CDA with management and based on that review and those discussions, whether the Compensation Committee recommended to the Board that the CDA be approved for inclusion in the Company’s annual report on Form 10-K, proxy statement or information statement;
     
  8. Review its own charter, structure, processes and membership requirements from time to time;
     
  9. As appropriate, obtain advice and assistance from outside legal, accounting or other advisors, including, without limitation, any compensation consultant to be used by the Company or the Compensation Committee in the evaluation of CEO, executive officer, employee or director compensation; and
     
  10. Authorize the repurchase of shares from terminated employees pursuant to applicable law.

 

MEETINGS

The Compensation Committee will meet at such times that it deems appropriate to fulfill its responsibilities of the Compensation Committee under this charter. The Compensation Committee shall establish its own schedule, which it will provide to the Board in advance. The members of the Compensation Committee may invite the Chief Executive Officer, the executive officer responsible for the Company’s human resources activities or any other person to attend meetings as appropriate.

MINUTES

The Compensation Committee will maintain written minutes of its meetings, which minutes will be filed with the minutes of the meetings of the Board.

REPORTS

The Compensation Committee will provide written reports to the Board of the Company regarding recommendations of the Compensation Committee submitted to the Board for action and copies of the written minutes of its meetings.

DELEGATION OF AUTHORITY

The Compensation Committee may form and delegate authority to subcommittees when appropriate.

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