2011 Executive Bonus Compensation Plan
This agreement outlines the 2011 Executive Bonus Compensation Plan for eligible executives. The bonus pool is funded based on the company's achievement of its corporate plan, with payouts ranging from 50% to 150% of the target depending on performance. Bonuses are determined 50% by corporate results (such as revenue, membership, and EBITDA) and 50% by individual performance, as evaluated by the CEO. Individual awards may exceed 150% of the target with CEO and Board approval. The plan sets clear criteria for both company and individual performance to determine bonus payouts.
Exhibit 10.20
2011 EXECUTIVE BONUS COMPENSATION PLAN
| • | Bonus pool is funded by achievement of corporate plan, with pro-rata payment for achievement between 50% and 150%. |
| • | Payout to eligible executives will be based 50% on Corporate Component and 50% on Individual Performance Component. |
| • | Individual performance will be measured by CEO evaluation of executive’s demonstration of Leadership, Leverage and Results |
| • | Maximum plan funding is 150% of target, but individual bonus awards can exceed 150% of target with CEO discretion and with Board approval |
Plan Funding and Corporate Component (50% of Target Bonus)1
| Corporate Plan | Plan Weight | 50% Payout if results above following but below plan/target | 100% Payout Target | 150% Payout Target | ||||||||||||
| Revenue | 20 | % | $ | [*** | ] | $ | [*** | ] | $ | [*** | ] | |||||
| Members | 20 | % | [*** | ] | [*** | ] | [*** | ] | ||||||||
| Internal Uniques2 | 20 | % | [*** | ] | [*** | ] | [*** | ] | ||||||||
| Page views | 20 | % | [*** | ] | [*** | ] | [*** | ] | ||||||||
| EBITDA | 20 | % | [*** | ] | $ | [*** | ] | $ | [*** | ] | ||||||
Individual Performance Component (50% of Target Bonus)
Based on CEO evaluation of executive’s performance relative to Leadership, Leverage and Results:
| • | Leadership: Ability to inspire others to achieve shared objectives and uphold our culture and values |
| • | Leverage: Specific measures of productivity |
| • | Results: Span of control, scope of responsibility and overall contribution to achievement of corporate goals. |
| 1 | Will be funded based on % of overall Corporate Component achievement (e.g. if Corp Component funded at 90% then individual Component would be funded at 90% of 50%, or 45% of target bonus). |
| 2 | Q4 average Internal Uniques |
