2012 EXECUTIVE CASH INCENTIVE BONUS PLAN



 




 
  
 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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