exv10w42



Exhibit 10.42








	

2011 Executive Cash

Incentive Bonus Plan








 








	

 Incentive Structure

2


 Metrics
 Weighting of metrics
 Target Payouts by quarter
 Target setting
 Target leverage and ranges








 








	

3

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 an average of 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)
EVM Annual Revenue
Revenue attributable to the Event Marketing business unit
Year-End Unique Customer Count
Number of Unique Customers at December 31, 2011 (defined in the same manner as financial reporting)
EVM Year-End Customer Count
Event marketing customers at December 31, 2011 (defined in the same manner as financial reporting)
Individual MBO
MBO will be focused on personal, professional or organizational growth and development over the course
of the quarter

Metrics








 








	

4

Weighting of Metrics

         CEO    Exec. (w/out EVM VP)    EVM VP

QRG          40%      40%              25%

Adjusted EBITDA Margin   15%      15%              10%

Customer Satisfaction    25%      25%              10%

MBOs            --      20%              15%

Year-End Unique
Customer Count (CEO)   20%        --                 --

EVM Annual Revenue     --        --              15%

EVM Year-End
Customer Count           --                     --               25%

         _____                _____              _____
                     100%                 100%                 100%










 








	

Target Payouts by Quarter (CEO)

5
      Q1   Q2   Q3   Q4   Total
   QRG   10%   10%   10%   10%   40%
   Adjusted EBITDA Margin   3.75%   3.75%   3.75%   3.75%   15%
   Customer Satisfaction   6.25%   6.25%   6.25%   6.25%   25%
   Year-End Unique Customer Count   -   -   -   20%   20%
      20%   20%   20%   40%   100%

Calculations equal to percentages of annual target incentive.








 








	

Target Payouts by Quarter (Executives w/out EVM VP)

6
      Q1   Q2   Q3   Q4   Total
   QRG   10%   10%   10%   10%   40%
   Adjusted EBITDA Margin   3.75%   3.75%   3.75%   3.75%   15%
   Customer Satisfaction   6.25%   6.25%   6.25%   6.25%   25%
   MBOs   5%   5%   5%   5%   20%
      25%   25%   25%   25%   100%

Calculations equal to percentages of annual target incentive.








 








	

Target Payouts by Quarter (EVM VP)

7
      Q1   Q2   Q3   Q4   Total
   QRG   6.25%   6.25%   6.25%   6.25%   25%
   Adjusted EBITDA Margin        2.5%        2.5%        2.5%        2.5%        10%
   Customer Satisfaction        2.5%        2.5%        2.5%        2.5%        10%
   MBOs   3.75%   3.75%   3.75%   3.75%   15%
   EVM Annual Revenue   -   -   -   15%   15%
   EVM Year-End Customer Count   -   -   -   25%   25%
      15%   15%   15%   55%   100%

Calculations equal to percentages of annual target incentive.








 








	

8

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
Year-End Unique Customer Count
Set by Compensation Committee at beginning of year based on Board budget/operating plan
EVM 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/operating plan


Target Setting








 








	

9

QRG
Minimum QRG threshold 85%; payout of 60% of target
Maximum QRG threshold 140%; payout of 300% of target
Leverage as described  on next page
Adjusted EBITDA Margin
Minimum target Adjusted EBITDA Margin threshold - (target less one percentage point); payout of 95% of target
Maximum target Adjusted EBITDA Margin threshold - (target plus one percentage point); payout of 105% of target
Customer Satisfaction
Minimum target customer satisfaction- (target minimum less three percentage points); payout of 25% of target
Maximum target customer satisfaction - (target maximum plus four percentage points);  payout of 200% of target
MBOs
No minimum threshold
Maximum payment 100%
Payout equal to weighted % attainment of objective
Year-End Unique Customer Count
Minimum threshold - 50% payout at Board budget
100% payout at midpoint between Board budget and operating plan
Maximum threshold - 200% payout at operating plan
Linear interpolation between data points
EVM Annual Revenue
Minimum EVM Annual Revenue threshold 85%; payout of 60% of target
Maximum EVM Annual Revenue threshold 140%; payout of 300% of target
Leverage as describe on next page
EVM Year-End Customer Count
Minimum threshold - 100% payout at Board budget
Maximum threshold - 200% payout at operating plan
Linear interpolation between data points





Target Leverage and Ranges








 








	

10

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Target Leverage and Ranges

QRG and EVM Annual Revenue Leverage Model

Adjusted EBITDA Margin Leverage Model

1Linear interpolation between data points

Customer Satisfaction Model

1Linear interpolation between data points