2012 Executive Cash Incentive Bonus Plan for Constant Contact Executives
This agreement outlines the 2012 Executive Cash Incentive Bonus Plan for executives at Constant Contact. It details how bonuses are calculated based on performance metrics such as revenue growth, adjusted EBITDA margin, customer satisfaction, and specific business unit achievements. The plan specifies different weightings and payout targets for various executive roles, with targets set by the Compensation Committee. Bonus payouts depend on meeting or exceeding these targets, with higher performance resulting in higher payouts. The plan covers the entire 2012 calendar year and applies to designated executive positions.
2012 Executive Cash
Incentive Bonus Plan
Incentive Structure
Metrics
Annual Weighting of metrics
Target Payouts by quarter
Target setting
Target leverage and ranges
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Metrics
QRG
Defined as quarterly revenue growth.
Adjusted EBITDA Margin
Defined as GAAP operating income, plus depreciation and amortization, non-cash stock based compensation, minus interest, adjusted for taxes, calculated as a percentage of revenue.
Customer Satisfaction
Defined as the monthly percentages of surveyed customers that rate their overall experience with Constant Contact during a quarter as “very good” or “excellent” (or substantial equivalent if revised) averaged over the quarter.
EVM and SaveLocal Annual Revenue
Revenue attributable to the EVM and SaveLocal business units (EVM – GAAP Revenue; SaveLocal – cash collected).
EVM Year-End Customer Count
Event marketing customers at December 31, 2012 (defined in the same manner as financial reporting).
SaveLocal Aggregate Annual Deals
Total customer deals in 2012.
Individual MBO
MBO will be focused on personal, professional or organizational growth and development over the course of the quarter.
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Annual Weighting of Metrics
CEO and VP, Executives (except EVM VP SaveLocal VP
Sales and EVM and SaveLocal
Marketing VPs)
QRG 60% 40% 25% 25%
Adjusted EBITDA Margin 15% 15% 10% 10%
Customer Satisfaction 25% 25% — —
MBOs — 20% 25% 25%
EVM or SaveLocal
Annual Revenue — — 25% 15%
EVM Year-End
Customer Count — — 15% —
SaveLocal Aggregate
Annual Deals — — — 25%
100% 100% 100% 100%
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Target Payouts by Quarter (CEO/VP Sales and Marketing)
Q1 Q2 Q3 Q4 Total
QRG 15% 15% 15% 15% 60%
Adjusted 3.75% 3.75% 3.75% 3.75% 15%
EBITDA
Margin
Customer 6.25% 6.25% 6.25% 6.25% 25%
Satisfaction
25% 25% 25% 25% 100%
Calculations equal to percentages of annual target incentive.
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Target Payouts by Quarter (Executives w/out EVM and SaveLocal VPs)
Q1 Q2 Q3 Q4 Total
QRG 10% 10% 10% 10% 40%
Adjusted 3.75% 3.75% 3.75% 3.75% 15%
EBITDA
Margin
Customer 6.25% 6.25% 6.25% 6.25% 25%
Satisfaction
MBOs 5% 5% 5% 5% 20%
25% 25% 25% 25% 100%
Calculations equal to percentages of annual target incentive.
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Target Payouts by Quarter (EVM VP)
Q1 Q2 Q3 Q4 Total
QRG 6.25% 6.25% 6.25% 6.25% 25%
Adjusted 2.5% 2.5% 2.5% 2.5% 10%
EBITDA
Margin
MBOs 6.25% 6.25% 6.25% 6.25% 25%
EVM Annual—— 25% 25%
Revenue
EVM—— 15% 15%
Year-End
Customer
Count
15% 15% 15% 55% 100%
Calculations equal to percentages of annual target incentive.
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Target Payouts by Quarter (SaveLocal VP)
Q1 Q2 Q3 Q4 Total
QRG 6.25% 6.25% 6.25% 6.25% 25%
Adjusted 2.5% 2.5% 2.5% 2.5% 10%
EBITDA
Margin
MBOs 6.25% 6.25% 6.25% 6.25% 25%
SaveLocal—— 15% 15%
Annual
Revenue
SaveLocal—— 25% 25%
Aggregate
Annual
Deals
15% 15% 15% 55% 100%
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Target Setting
QRG
Set by Compensation Committee at beginning of year and mid-year based on Board budget.
Adjusted EBITDA Margin
Set by Compensation Committee at beginning of year and mid-year based on Board budget.
Customer Satisfaction
Set by Compensation Committee at beginning of year.
Individual MBOs
Set at beginning of each quarter by CEO for Vice Presidents.
EVM and SaveLocal Annual Revenue
Set by Compensation Committee at beginning of year based on Board budget.
EVM Year-End Customer Count
Set by Compensation Committee at beginning of year based on Board budget.
SaveLocal Aggregate Annual Deals
Set by Compensation Committee at beginning of year based on Board budget.
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Target Leverage and Ranges
QRG
Minimum target QRG threshold—80%; payout at 50% of target
Maximum target QRG threshold—140%; payout at 300% of target
Leverage as described on next page
Adjusted EBITDA Margin
Minimum target Adjusted EBITDA Margin threshold – (target less one percentage point); payout at 95% of target
Maximum target Adjusted EBITDA Margin threshold – (target plus one percentage point); payout at 105% of target
Leverage as described on next page
Customer Satisfaction
Minimum target customer satisfaction – (target minimum less three percentage points); payout at 25% of target
Maximum target customer satisfaction – (target maximum plus four percentage points); payout at 200% of target
MBOs
No minimum threshold
Maximum payment 100%
Payout equal to weighted % attainment of objective
EVM Annual Revenue
Minimum target EVM Annual Revenue threshold—80%; payout at 50% of target
Maximum target EVM Annual Revenue threshold—140%; payout at 300% of target
Leverage as described on next page
EVM Year-End Customer Count
Minimum target EVM Year-End customer count threshold—100%; payout at 100% of target
Maximum EVM Year-End Customer Count threshold—140%; payout at 300% of target
Linear interpolation between data points
SaveLocal Annual Revenue
Minimum target SaveLocal Annual Revenue threshold—50% payout at 58.7% achievement up to 100% payout at 100% achievement (linear interpolation between data points)
Over-performance milestones:
Greater than 117.4% achievement; payout at 150% of target
Greater than 176.2% achievement; payout at 200% of target
SaveLocal Aggregate Annual Deals
Minimum target SaveLocal Annual Deals threshold—50% payout at 55.5% achievement up to 100% payout at 100% achievement (linear interpolation between data points)
Over-performance milestones:
Greater than 166.6% achievement; payout at 150% of target
Greater than 222.2% achievement; payout at 200% of target
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Target Leverage and Ranges
QRG and EVM Annual Revenue Leverage Model
Achievement <80% 80% 85% 90% 95% 100% 105% 110% 115% 120% 125% 130% 135% 140%+
Payout
Percentage1 0% 50% 63% 75% 88% 100% 125% 150% 175% 200% 225% 250% 275% 300%
1Linear interpolation between data points
Adjusted EBITDA Margin Leverage Model
> Target EBITDA + 1% Point
Achievement < Target EBITDA – 1% Point Target EBITDA—1% Point Target EBITDA % Target EBITDA + 1% Point (and above)
Payout
Percentage1 0% 95% 100% 105% 105%
1Linear interpolation between data points
Customer Satisfaction Model
< Target Minimum -3 percentage points
Target Minimum -3 percentage points
Target Minimum 2 percentage points
Target Minimum -1 percentage point
Target Customer Sat Range
Target Maximum +1 percentage
Target Maximum +2 percentage point
Target Maximum +3 percentage points
Target Maximum +4 percentage points
Payout Percentage 0% 25% 50% 75% 100% 125% 150% 175% 200%
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