2023 Crexendo Employee and Executive Bonus Plan Agreement
Crexendo, Inc. has established a 2023 bonus plan for its executive team, non-executive management, and employees. Executives are eligible for a share of a $480,000 pool based on revenue, adjusted EBITDA, cash balance, and stock price targets, with tiered payouts and a potential 10% bonus kicker for exceeding targets by 10% or more. Non-executive managers have a similar plan with a $320,000 pool. Employees participate in a bonus pool based on adjusted EBITDA, with payouts scaled to performance. The plan sets clear financial targets and payout structures for all participants.
EXHIBIT 10.11
2023 Crexendo Employee Bonus Plan
Executive Bonus Plan for C-Level Executives (Korn, Gaylor, Vincent, Brinton, Buch, Wang):
Bonus Criteria for Executive Bonus Plan (4 separate criteria)
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| · | 30% of bonus - Revenue for year of $51.0M (excluding any future acquisitions) |
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| · | 30% of Bonus – Adjusted EBITDA of $3.2M (excluding any future acquisitions; and including the maximum $1.04M Bonus Plan accrual, excluding 10% Bonus Kickers, even if, in fact, the actual accrual is less) |
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| · | 30% of Bonus – Cash Balance $7.6M (Excluding cash used for or to make acquisitions but including cash received from building sale) |
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| · | 10% Stock Price - $3.00 or higher (Based on 5 trading day Average prior to Dec. 31, 2023) |
Bonus Pool of $480,000 available for the Crexendo Exec team of Korn, Gaylor, Vincent, Brinton, Buch, Wang with a separate smaller Bonus Pool available for the Non- Exec Management Team detailed in the separate section below.
The Bonus Pool will allow for a tiered attainment level and payout structure for all categories as follows:
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| · | Below 90.0% of target – No Bonus; 90.0% or more of target, tiered bonus of 50%-95% of bonus in 5% increments (Ex. Revenue Bonus Opportunity of $24K per exec; achieve Revenue of 90.0% but less than 91.0%, receive Bonus of 50%, or $12K) |
The Bonus Plan for the Executive Team of Korn, Gaylor, Vincent, Brinton, Buch, Wang will also have the following upside provision included:
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| · | If any Bonus Targets are eclipsed at 110% or greater of the Bonus Criteria Target, than a 10% Bonus Kicker on top of the 100% earn out would apply. (Example: Revenue Target of $51.0M = $24K Bonus per exec; if Revenue equals $56.1M bonus increased to $26.4K.) |
Non-Executive Bonus Plan
In addition, a smaller Bonus Pool is available for 2 xVP Ops, 2 x VP Eng, Controller, VP Mktg, Exec VP KC, SR. VP (Spitler, Battaglia, Aaker, Chudasama, Seeler, Byrne, Dancer, Murphy) for the same criteria and rules above, of $320,000 – ($40K per VP/Controller)
The Bonus Plan for the Non-Executive Team will also have the following upside provision included:
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| · | If any Bonus Targets are eclipsed at 110% or greater of the Bonus Criteria Target, than a 10% Bonus Kicker on top of the 100% earn out would apply. (Example: Revenue Target of $51.0M = $12K Bonus per non-exec; if Revenue equals $56.1M bonus increased to $13.2K.) |
Employee Bonus Plan
Bonus Pool of 7.5% of Adjusted EBITDA for attainment of the target criterion of $3.2M. Bonus Pool = $240,000 at $3.2M. If Adj. EBITDA target is exceeded, the calculation would cap at $264,000.
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| · | The employee Bonus Plan will have a tiered scale based on attainment of target as follows: Adj EBITDA – Below 90.0% of target – No Bonus; 90.0% or more of target, tiered bonus of 50%-95% of bonus in 5% increments (Ex. Achieve Adj. EBITDA of 90.0% but less than 91.0%, Bonus Pool is 50%, or $120K). |
Maximum Bonus Pool, excluding 10% Bonus Kickers = $1,040,000.
