Document:

Exhibit 10.8.1

Exhibit 10.8.1

NATIONAL MENTOR HOLDINGS, LLC

EXECUTIVE DEFERRED COMPENSATION PLAN

Fourth Amendment and Restatement Effective as of January 1, 2011

 

 

 

NATIONAL MENTOR HOLDINGS, LLC

EXECUTIVE DEFERRED COMPENSATION PLAN

(f/k/a National Mentor, Inc. Executive Deferred Compensation Plan)

Fourth Amendment and Restatement Effective as of January 1, 2011

Table of Contents

	 	 	 	 	 
	ARTICLE I Introduction
	 	 	1	 
	 
	 	 	 	 
	1.1 Name
	 	 	1	 
	1.2 Purpose
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II Plan Participation
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III Contributions
	 	 	2	 
	 
	 	 	 	 
	3.1 Contributions
	 	 	2	 
	3.2 Account
	 	 	2	 
	 
	 	 	 	 
	ARTICLE IV Earnings on Account Balances
	 	 	2	 
	 
	 	 	 	 
	4.1 Investments
	 	 	2	 
	4.2 Actual Investment Not Required
	 	 	3	 
	4.3 Fixed Rate of Return
	 	 	3	 
	4.4 Crediting of Contributions
	 	 	3	 
	 
	 	 	 	 
	ARTICLE V Distribution of Account Balances
	 	 	3	 
	 
	 	 	 	 
	5.1 Vesting
	 	 	3	 
	5.2 Timing of Distribution
	 	 	3	 
	5.3 Form of Distribution of Account Balances
	 	 	4	 
	5.4 Involuntary Distributions
	 	 	4	 
	5.5 Designation of Beneficiaries
	 	 	4	 
	 
	 	 	 	 
	ARTICLE VI Establishment of Trust
	 	 	5	 
	 
	 	 	 	 
	6.1 Establishment of Trust
	 	 	5	 
	6.2 Status of Trust
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VII Amendment and Termination
	 	 	5	 
	 
	 	 	 	 
	7.1 Amendment
	 	 	5	 
	7.2 Plan Termination
	 	 	5	 

 

 

 

	 	 	 	 	 
	ARTICLE VIII Administration
	 	 	6	 
	 
	 	 	 	 
	8.1 Administration of the Plan
	 	 	6	 
	8.2 Decisions of the Committee
	 	 	6	 
	8.3 Review of Benefit Determinations
	 	 	6	 
	 
	 	 	 	 
	ARTICLE IX Definitions
	 	 	7	 
	 
	 	 	 	 
	9.1 Account
	 	 	7	 
	9.2 Account Balance
	 	 	7	 
	9.3 Affiliate
	 	 	7	 
	9.4 Beneficiary
	 	 	7	 
	9.5 Code
	 	 	7	 
	9.6 Committee
	 	 	7	 
	9.7 Company
	 	 	7	 
	9.8 Contributions
	 	 	7	 
	9.9 Disability
	 	 	8	 
	9.10 ERISA
	 	 	8	 
	9.11 Participant
	 	 	8	 
	9.12 Permitted Investment
	 	 	8	 
	9.13 Plan
	 	 	8	 
	9.14 Plan Year
	 	 	8	 
	9.15 Subsidiary
	 	 	8	 
	 
	 	 	 	 
	ARTICLE X General Provisions
	 	 	9	 
	 
	 	 	 	 
	10.1 Non-Alienation of Benefits
	 	 	9	 
	10.2 Withholding for Taxes
	 	 	9	 
	10.3 Immunity of Committee Members
	 	 	9	 
	10.4 Plan Not to Affect Employment Relationship
	 	 	9	 
	10.5 Assumption of Company Liability
	 	 	10	 
	10.6 Subordination Rights
	 	 	10	 
	10.7 Notices
	 	 	10	 
	10.8 Gender and Number; Headings
	 	 	10	 
	10.9 Controlling Law
	 	 	10	 
	10.10 Successors
	 	 	10	 
	10.11 Severability
	 	 	11	 
	10.12 Action by Company
	 	 	11	 
	10.13 No Guarantee of Tax Consequences.
	 	 	11	 

 

 

 

NATIONAL MENTOR HOLDINGS, LLC

EXECUTIVE DEFERRED COMPENSATION PLAN

Fourth Amendment and Restatement Adopted as of January 1, 2011

And

Effective as of January 1, 2011

THIS FOURTH AMENDMENT AND RESTATEMENT is adopted by National Mentor Holdings, LLC, a Delaware
limited liability company (the “Company”), as of December 27, 2011 and effective as of January 1,
2011.

Recitals

(i) The Company originally adopted the Plan as of March 9, 2001 and amended and
restated the Plan effective January 1, 2006 and January 1, 2009;

(ii) The Company previously amended the Plan to conform to the requirements of Internal
Revenue Code § 409A, as adopted in § 885 of the American Jobs Creation Act of 2004, Pub. L. 108-357
(October 22, 2004) and the regulations and guidance issued thereunder;

(iii) The Company reserved the right to amend the Plan from time to time; and

(iv) The Company now desires to amend the Plan to reflect the current composition of senior
management participating in the Plan, and to clarify the means by which earnings to Accounts may be
determined.

Amendment and Restatement

The Plan is hereby amended and restated, in its entirety, to provide as follows:

ARTICLE I

Introduction

1.1 Name

The name of this plan is the “National Mentor Holdings, LLC Executive Deferred Compensation
Plan.” Capitalized terms used in this Plan have the meanings assigned in Article IX.

1.2 Purpose

This Plan is an unfunded nonqualified deferred compensation arrangement established for the
purpose of providing deferred compensation to a select group of management or highly compensated
employees (as defined for purposes of Title I of ERISA) of the Company or its Subsidiaries or
Affiliates.

 

 

 

ARTICLE II

Plan Participation

An individual who is (a) an Employee of the Company or a Subsidiary or an Affiliate who is a
key member of management and/or a highly compensated employee within the meaning of ERISA §§201,
301(a)(3) and 401(a)(1), or (b) effective for Plan participation on or after January 1, 2006, a
member of the Board of Directors of the Company’s sole member, National Mentor Holdings, Inc.,
becomes a Participant in this Plan on the later of the date as of which he or she is—

	 	(i)	 	Appointed as a Participant by vote of the Board; and

	 	(ii)	 	Designated as such in, or by written amendment to, the attached
Exhibit A (Schedule of Participants).

ARTICLE III

Contributions

3.1 Contributions

With respect to each Plan Year, the Committee may, in its discretion, (i) credit a
Participant’s Account with a Contribution, (ii) designate Contributions of different amounts for
each Participant or group of Participants, and/or (ii) make no Contribution for any Participant or
any group of Participants.

3.2 Account

The Committee shall establish and maintain an Account with respect to each Participant with
respect to whom Contributions have been made. Deemed investment earnings and losses on the amounts
credited to a Participant’s Account will be credited or charged to his or her Account in accordance
with Article IV.

ARTICLE IV

Earnings on Account Balances

4.1 Investments

The Committee may designate from time to time, that all or a portion of a Participant’s
Accounts be deemed to be invested in one or more Permitted Investments. Such amounts shall be
deemed to be invested as of such dates as may be specified by the Committee. Each Account will be
deemed to receive all interest, dividends, earnings and other property which would have been
received with respect to a Permitted Investment deemed to be held in such Account if such Account
were actually invested in such Permitted Investment. Cash deemed received with respect to a
Permitted Investment shall be credited to the Account as of the date it would have been available
for reinvestment if the Account were actually invested in the Permitted Investment.

 

2

 

4.2 Actual Investment Not Required

The Company need not actually make any Permitted Investment. If the Company should from time
to time make any investment similar to a Permitted Investment, such investment shall be solely for
the Company’s own account and the Participant shall have no right, title or interest therein.
Accordingly, each Participant is solely an unsecured creditor of the Company with respect to any
amount distributable to him under the Plan

4.3 Fixed Rate of Return

In lieu of designating that all or a portion of a Participant’s Account be deemed to be invested in
one or more Permitted Investments pursuant to Section 4.1, the Company may elect to set a fixed
rate of return for any Plan Year, in its discretion, based on current market conditions, investment
returns available elsewhere, the financial position of the Company, the performance of the
Participants and the overall compensation of the Participants. Such fixed rate of return shall be
credited on a regular basis during the Plan Year, and at a minimum once per year, not later than
the last day of the Plan Year, and shall be applied to the balance of a Participant’s Account
determined as of the date such return is credited.

4.4 Crediting of Contributions

The Company will credit Contributions (if any) to a Participant’s Contributions Account within
a reasonable period following the last day of each Plan Year.

ARTICLE V

Distribution of Account Balances

5.1 Vesting

A Participant’s Account Balance is at all times 100% vested and nonforfeitable and shall be
distributable to the Participant or, in the event of the Participant’s death, to his Beneficiary,
as provided in Section 5.2 below, subject however, to the provisions of this Plan (including those
provisions limiting a Participant’s rights to those of an unsecured creditor of the Company).

5.2 Timing of Distribution

Unless sooner paid under Section 5.4 (relating to involuntary distributions), each
Participant’s Account Balance will be paid to him or her (or to his or her Beneficiary in the case
of his or her death) as soon as practicable following the earliest of his or her termination from
employment (for any reason or no reason), Disability, or death, but not later than the latest of
(i) the last day of the calendar year in which such event occurs or (ii) the 15th day of
the third month following such event. Any termination of employment triggering payment of benefits
under this Section 5.2 must constitute a “separation from service” within the meaning of Treas.
Reg. § 1.409A-1(h) before distribution of such benefits can commence. For purposes of
clarification, this paragraph shall not cause any forfeiture of benefits on the part of the
Participant, but shall only act as a delay until such time as a separation from service occurs.

 

3

 

5.3 Form of Distribution of Account Balances

Each Participant’s Account Balance will be distributed to him of her, or to his or her
Beneficiary in the case of his or her death, in cash (and not in kind) as a lump sum payment. The
lump sum payment will be made on the date provided in Section 5.2.

5.4 Involuntary Distributions

Despite any contrary provision of this Article V, the Committee may on its own initiative
authorize and direct the Company to distribute to any Participant (or to a designated Beneficiary
in the event of the Participant’s death) all or any portion of his or her Account:

(a) To enable him or her to pay income taxes due in the event that any such tax is due
prior to the occurrence of a distribution event under Section 5.2, provided that the amount
of such payment may not be more than an amount equal to the income tax withholding that
would have been remitted by the Company if there had been a payment of wages equal to the
income includible under Code § 409A; and

(b) In connection with a change in applicable law, a published ruling or similar
announcement issued by the Internal Revenue Service, a regulation issued by the Secretary of
the Treasury, a decision by a court of competent jurisdiction involving the Participant or
his or her Beneficiary, or a closing agreement involving the Participant or his Beneficiary
under Code § 7121 approved by the Internal Revenue Service, provided that the Committee
determines that the Participant or Beneficiary, as the case may be, has or will recognize
income for federal income tax purposes with respect to amounts deferred under this Plan
prior to the time such amounts otherwise would be paid under this Plan.

5.5 Designation of Beneficiaries

Each Participant may name any person (who may be named concurrently, contingently or
successively) to whom the Participant’s Account Balance under the Plan is to be paid if the
Participant dies before such Account Balance is fully distributed. Each such Beneficiary
designation will revoke all prior designations by the Participant, shall not require the consent of
any previously named Beneficiary, shall be in a form prescribed by or otherwise acceptable to the
Committee and will be effective only when filed with the Committee during the Participant’s
lifetime. If a Participant fails to designate a Beneficiary before his death, as provided above,
or if the Beneficiary designated by a Participant dies before the date of the Participant’s death
or before complete payment of the Participant’s Account Balance, the Committee, in its discretion,
may pay the Participant’s Account Balance to either (i) one or more of the Participant’s relatives
by blood, adoption or marriage and in such proportions as the Committee determines, or (ii) the
legal representative or representatives of the estate of the last to die of the Participant and his
designated Beneficiary.

 

4

 

ARTICLE VI

Establishment of Trust

6.1 Establishment of Trust

The Company may, in its sole discretion, establish a grantor trust (as described in Code §
671) for the purpose of accumulating assets to provide for the obligations hereunder. The assets
and income of such trust shall be subject to the claims of the general creditors of the Company.
The establishment of such a trust shall not affect the Company’s liability to pay benefits under
this Plan, except that any such liability shall be offset by any payments actually made to a
Participant under such a trust. If such a trust is established, the amount to be contributed
thereto shall be determined by the Company and the investment of such assets shall be made in
accordance with the trust document.

6.2 Status of Trust

Participants shall have no direct or secured claim in any asset of the trust or in specific
assets of the Company and will have the status of general unsecured creditors of the Company for
any amounts due under this Plan. The assets and income of the trust will be subject to the claims
of the Company’s creditors as provided in the trust document

ARTICLE VII

Amendment and Termination

7.1 Amendment

The Company, in its discretion, has the right to amend the Plan from time to time, except that
no such amendment shall, without the consent of the Participant to whom deferred compensation has
been credited to any Account under this Plan, adversely affect the right of the Participant (or his
Beneficiary) to receive payments of such deferred compensation under the terms of this Plan, nor
may such amendment violate any applicable requirement of law.

7.2 Plan Termination

The Company may, in its discretion, terminate the Plan at any time, however, no termination of
this Plan shall alter the right of a Participant (or his Beneficiary) to payments of deferred
compensation previously credited to such Participant’s Account under the Plan, nor will it alter or
accelerate the timing of distributions in a manner that is inconsistent with the requirements of
Code § 409A(a).

 

5

 

ARTICLE VIII

Administration

8.1 Administration of the Plan

The Plan shall be administered by the Committee. The duties and authority of the Committee
under the Plan shall include:

(a) The interpretation of the provisions of the Plan;

(b) The adoption of any rules and regulations which may become necessary or advisable in the
operation of the Plan;

(c) The making of such determinations as may be permitted or required pursuant to the Plan;
and

(d) The taking of such other actions as may be required for the proper administration of the
Plan in accordance with its terms.

Notwithstanding the generality of the foregoing, the Committee will interpret, construe, and
administer the Plan in a manner that satisfies the requirements of (a) Code § 409A(a)(2), (3) and
(4), (b) Treas. Reg. § 1.409A-1 et seq., and (c) other applicable authority issued by the Internal
Revenue Service and the U.S. Department of the Treasury.

8.2 Decisions of the Committee

Any decision of the Committee with respect to any matter within the authority of the Committee
shall be final, binding and conclusive upon the Company and each Participant, former Participant,
designated Beneficiary, and each person claiming under or through any Participant or designated
Beneficiary; and no additional authorization or ratification by the Board of Directors or
stockholders of the Company shall be required. Any action taken by the Committee with respect to
any one or more Participants shall not be binding on the Committee as to any action to be taken
with respect to any other Participant. A member of the Committee may be a Participant, but no
member of the Committee may participate in any decision directly affecting his rights or the
computation of his benefits as an individual Participant under the Plan. Each determination
required or permitted under the Plan shall be made by the Committee in the sole and absolute
discretion of the Committee.

8.3 Review of Benefit Determinations

If a claim for benefits made by a Participant or his or her Beneficiary is denied, the
Committee shall within 90 days (or 180 days if special circumstances require an extension of time)
after the claim is made furnish the person making the claim with a written notice specifying the
reasons for the denial. Such notice shall also refer to the pertinent Plan provisions on which the
denial is based, describe any additional material or information necessary for properly completing
the claim and explain why such material or information is necessary, and explain the Plan’s claim
review procedures. If requested in writing, the Committee shall afford each claimant whose claim
has been denied a full and fair review of the Committee’s decision
and, within 60 days (120 days if special circumstances require additional time) of the request for
reconsideration of the denied claim, the Committee shall notify the claimant in writing of the
Committee’s final decision.

 

6

 

ARTICLE IX

Definitions

9.1 Account

“Account” means a bookkeeping account maintained on behalf of each Participant reflecting the
amount of the Contributions credited on behalf of such Participant pursuant to Section 3.1, as
adjusted to reflect income, gains and losses under Article IV.

9.2 Account Balance

“Account Balance” means the value, as of a specified date, of a Participant’s Account.

9.3 Affiliate

“Affiliate” means and includes any corporation, limited liability company or other person that
directly, or indirectly through one or more intermediaries, controls or is controlled by, or is
under common control with, the Company.

9.4 Beneficiary

“Beneficiary” means the person or persons designated by a Participant, or otherwise entitled,
to receive any amount credited to his Account that remains undistributed at his death, as
determined per Section 5.5 hereof.

9.5 Code

“Code” means the Internal Revenue Code of 1986, as amended.

9.6 Committee

“Committee” means the persons who have been designated by the Board of Directors of the
Company to administer the Plan. If no persons have been designated by the Board of Directors of the
Company to administer the Plan, the full Board of Directors of the Company shall constitute the
Committee for purposes of this Plan.

9.7 Company

“Company” means National Mentor Holdings, LLC, a Delaware limited liability company, and its
successors or assigns.

9.8 Contributions

“Contributions” means the contributions made on behalf of a Participant pursuant to Section
3.1.

 

7

 

9.9 Disability

“Disability” means that a Participant is (i) unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, or (ii) by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than 3 months under an
accident and health plan covering the Company’s employees.

9.10 ERISA

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

9.11 Participant

“Participant” means any eligible employee of the Company or its Subsidiaries or Affiliates who
is participating under the Plan pursuant to Article III,

9.12 Permitted Investment

“Permitted Investment” means such funds, investments or other assets as may be approved by the
Committee from time to time for purposes of this Plan.

9.13 Plan

“Plan” means “National Mentor Holdings, LLC Executive Deferred Compensation Plan,” as (i)
originally adopted (as the National Mentor, Inc. Executive Deferred Compensation Plan) as of March
9, 2001, (ii) amended and restated as of January 1, 2006, January 1, 2009 and January 1, 2011 and
(iii) as subsequently amended from time to time.

9.14 Plan Year

“Plan Year” means the calendar year.

9.15 Subsidiary

“Subsidiary” means, with respect to the Company, any corporation, limited liability company,
partnership, association or other business entity of which (i) if a corporation, a majority of the
total voting power of shares of stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by the Company or one or more of the other
subsidiaries of the Company or a combination thereof, or (ii) if a limited liability company,
partnership, association or other business entity, a majority of the limited liability company,
partnership or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by the Company or one or its subsidiaries or a combination thereof. The
Company will be deemed to have a majority ownership interest in a limited liability company,
partnership, association or other business entity if the Company (i) owns a majority of the limited
liability company, partnership, association or other business entity’s gains or losses or (ii)
controls the
managing director or general partner of such limited liability company, partnership, association or
other business entity.

 

8

 

ARTICLE X

General Provisions

10.1 Non-Alienation of Benefits

A Participant’s rights to the amounts credited to his Accounts under the Plan shall not be
grantable, transferable, pledgeable or otherwise assignable, in whole or in part, by the voluntary
or involuntary acts of any person, or by operation of law, and shall not be liable or taken for any
obligation of such person. Any such attempted grant, transfer, pledge or assignment shall be null
and void and without any legal effect.

10.2 Withholding for Taxes

Notwithstanding anything contained in this Plan to the contrary, the Company shall withhold
from any distribution made under the Plan such amount or amounts as may be required for purposes of
complying with the tax withholding provisions of the Code or any State income tax act for purposes
of paying any income, estate, inheritance or other tax attributable to any amounts distributable or
creditable under the Plan.

10.3 Immunity of Committee Members

The members of the Committee may rely upon any information, report or opinion supplied to them
by any officer of the Company or any legal counsel, independent public accountant or actuary, and
shall be fully protected in relying upon any such information, report or opinion. No member of the
Committee shall have any liability to the Company or any Participant, former Participant,
designated Beneficiary, person claiming under or through any Participant or designated Beneficiary
or other person interested or concerned in connection with any decision made by such member of the
Committee pursuant to the Plan which was based upon any such information, report or opinion if such
member of the Committee relied thereon in good faith, or for any other action or omission of the
Committee member made in good faith in connection with the operation of this Plan.

10.4 Plan Not to Affect Employment Relationship

Neither the adoption of the Plan nor its operation shall in any way affect the right and power
of the Company or its Subsidiaries or Affiliates to dismiss or otherwise terminate the employment
or change the terms of the employment or amount of compensation of any Participant at any time for
any reason or without cause. By accepting any payment under this Plan, each Participant, former
Participant, designated Beneficiary and each person claiming under or through such person, shall be
conclusively bound by any action or decision taken or made under the Plan by the Committee.

 

9

 

10.5 Assumption of Company Liability

The obligations of the Company under the Plan may be assumed by any affiliate of the Company,
in which case such affiliate shall be obligated to satisfy all of the Company’s obligations under
the Plan and the Company shall be released from any continuing obligation under the Plan. At the
Company’s request, a Participant or designated Beneficiary shall sign such documents as the Company
may require in order to effectuate the purposes of this Section 10.5.

10.6 Subordination Rights

At the Committee’s request, each Participant or designated Beneficiary shall sign such
documents as the Committee may require in order to subordinate such Participant’s or designated
Beneficiary’s rights under the Plan to the rights of such other creditors of the Company as may be
specified by the Committee.

10.7 Notices

Any notice required to be given by the Company or the Committee hereunder shall be in writing
and shall be delivered in person or by registered or certified mail, return receipt requested. Any
notice given by registered mail shall be deemed to have been given upon the date of registration or
certification by the Post Office, correctly addressed to the last known address (as appearing in
the records of the Committee or the Company) of the person to whom such notice is to be given.

10.8 Gender and Number; Headings

Wherever any words are used herein in the masculine gender they shall be construed as though
they were also used in the feminine gender in all cases where they would so apply; and wherever any
words are used herein in the singular form they shall be construed as though they were also used in
the plural form in all cases where they would so apply. Headings of sections and subsections of
the Plan are inserted for convenience of reference and are not part of the Plan and are not to be
considered in the construction thereof.

10.9 Controlling Law

The Plan shall be construed in accordance with the laws of the State of Delaware, to the
extent not preempted by any applicable federal law.

10.10 Successors

The Plan is binding on all persons entitled to benefits hereunder and their respective heirs
and legal representatives, on the Committee and its successor and on any Employer and its
successor, whether by way of merger, consolidation, purchase or otherwise.

 

10

 

10.11 Severability

If any provision of the Plan shall be held illegal or invalid for any reason, such illegality
or invalidity shall not affect the remaining provisions of the Plan, and the Plan shall be enforced
as if the invalid provisions had never been set forth therein.

10.12 Action by Company

Any action required or permitted by the Company under the Plan shall be by resolution of its
Board of Directors or by a duly authorized committee of its Board of Directors, or by a person or
persons authorized by resolution of its Board of Directors or such committee.

10.13 No Guarantee of Tax Consequences.

No person connected with this Plan, including but not limited to the Company or its officers,
agents or employees makes any representation, commitment or guarantee with respect to the Federal,
state or local income, estate and/or gift tax treatment of any benefit paid hereunder including,
without limitation, Section 409A of the Code.

EXECUTED this 27th day of December, 2011.

	 	 	 	 	 	 	 	 	 
	 	 	National Mentor Holdings, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Edward M. Murphy, duly authorized	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Edward M. Murphy	 	 
	 

	 	 	 	Title:
	 	Chief Executive Officer	 	 

 

11

 

NATIONAL MENTOR HOLDINGS, LLC

EXECUTIVE DEFERRED COMPENSATION PLAN

Amended and Restated Effective as of January 1, 2011

EXHIBIT A (Schedule of Participants)

	 	 	 	 	 	 	 
	 	 	Contribution rate,	 	 
	 	 	as percentage of	 	 
	 	 	annual base	 	 
	 	 	compensation	 	 
	 	 	(not including	 	 
	Level	 	bonus)	 	Name
	Chief Executive Officer

	 	 	13	%	 	Edward M. Murphy
	 
	 	 	 	 	 	 
	President

	 	 	12	%	 	Bruce F. Nardella
	 
	 	 	 	 	 	 
	Chief Financial Officer

	 	 	11	%	 	Denis M. Holler
	 
	 	 	 	 	 	 
	All other Executive Officers (as
defined in SEC regulations)

	 	 	9	%	 	Jeffrey M. Cohen
(effective November
9, 2011)

Linda DeRenzo 

Kathleen P. Federico 

Robert M. Melia 

David M. Petersen 

Dwight D. Robson
(effective March 4,
2011)
	 
	 	 	 	 	 	 
	Chairman of the Board of Directors

Former Senior Vice President,
Finance Operations

	 	 	*	 	 	Gregory T. Torres

John J. Green

	 	 	 
	*	 	Mr. Torres and Mr. Green are not credited with contributions under the Plan but the amounts
previously credited to their Accounts are eligible to earn a return under the Plan on the same
basis as other Participants.Exhibit 10.12

Exhibit 10.12

The MENTOR Network

Human Services and Corporate Management 

Incentive Compensation Plan

Second Amendment and Restatement

dated December 27, 2011

Effective October 1, 2011

 

 

 

Table of Contents

	 	 	 	 	 

	Purpose of Plan
	 	 	1	 
	Eligibility
	 	 	1	 
	Definitions
	 	 	1	 
	Minimum Threshold Requirement
	 	 	3	 
	Weighting of Performance Criteria
	 	 	3	 
	Calculation of Incentive Payouts
	 	 	3	 
	Calculating the Potential Payout
	 	 	4	 
	Applying Personal Scorecard Results to the Potential Payout
	 	 	4	 
	Discretionary Incentive Compensation
	 	 	5	 
	Distribution of 3% Discretionary Pool
	 	 	5	 
	Discretionary Divestitures
	 	 	5	 
	In the Event that Calculated Payouts Exceed Funds Available to Pay Incentive Compensation
	 	 	5	 
	Administration
	 	 	6	 
	Plan Changes
	 	 	6	 
	Management of Financial Goals
	 	 	6	 
	Establishment of Personal Scorecards
	 	 	6	 
	Incentive Compensation Payouts
	 	 	6	 
	Approval of New Plan Entrants
	 	 	6	 
	Participant Termination Provisions
	 	 	7	 
	Terminations Without Cause and Voluntary Terminations
	 	 	7	 
	Involuntary Terminations for Cause
	 	 	7	 
	Retirement and Death
	 	 	7	 
	Special Provisions Relating to Position and Status Changes
	 	 	7	 
	Promotions and Job Transfers
	 	 	7	 
	Interruptions in Work
	 	 	8	 
	Plan Year and Effective Date
	 	 	8	 
	Plan Amendments
	 	 	8	 
	Exhibit A: Eligibility, Target IC Opportunity, and Weighting for Management Positions
	 	 	9	 
	Exhibit B: Target IC Opportunity and Weighting for Executive Officer Positions
	 	 	10	 
	Annex 1: Performance Scale
	 	 	11	 
	Annex 2: Sample Incentive Compensation Calculation and Scorecard Results
	 	 	12	 

 

ii

 

Purpose of Plan

The purpose of The MENTOR Network Human Services and Corporate Management Incentive
Compensation Plan (the “Plan”) is to provide executives, management, and other employees in
designated key positions with the opportunity to receive an annual cash incentive award for
achieving performance goals that align with the business goals of The MENTOR Network (“The
Network”).

Eligibility

Eligibility for participation in the Plan is limited to employees in the Human Services
operating groups and certain other management positions, specifically: (i) Executive Officers (as
such term is defined under the Securities Exchange Act of 1934, as amended) and other employees
whose positions are listed on Exhibit B and (ii) employees whose positions are listed on Exhibit A.
However, the President and Chief Operating Officer (“President/COO”), the Chief Financial Officer
(“CFO”) and the Chief Human Resources Officer (“CHRO”), acting together, may amend Exhibit A and
Exhibit B with respect to positions which are not Executive Officers. Employees are not eligible
to participate in the Plan if they are eligible for participation under any other cash incentive
plan of The Network, with the exception of discretionary bonuses available to participants in the
Mergers and Acquisitions Bonus Plan and additional plans as may be specifically approved by the
President/COO, CFO and CHRO from time to time.

Definitions

3% Discretionary Pool. The “3% Discretionary Pool” is a discretionary pool budgeted each
fiscal year that is equal to three percent of total budgeted incentive compensation. The
discretionary pool may be used to increase incentive compensation payouts for participants whose
calculated Potential Payout adjusted for Personal Scorecard results may not adequately reflect
their performance; for example, to a high performer within a state or other organizational unit
that does not perform well.

Adjusted EBITDA. Earnings before interest, taxes, depreciation and amortization, with adjustments,
as reported to The Network’s equity sponsor.

Adjusted EBITDA/CTO. Adjusted EBITDA, CTO or both, as applicable to a particular participant.
Adjusted EBITDA/CTO excludes new start investments under immunity and acquisitions other than
tuck-ins (as determined by the CEO).

Adjusted EBITDA/CTO Performance Level. Actual Adjusted EBITDA/CTO divided by planned (or budgeted)
Adjusted EBITDA/CTO as applicable to a given participant, expressed as a percentage.

 

1

 

CTO. “CTO” means contribution to overhead for a given organizational unit within The Network.

IC Payout Level. The percentage incentive compensation payout that is associated with actual
Adjusted EBITDA/CTO and Revenue performance achieved against plan, as shown on the applicable
Performance Scale in Annex 1. A given Performance Level corresponds to an IC Payout Level, ranging
from 50.0% to 150.0%, which is factored into the Potential Payout calculation. For Adjusted
EBITDA/CTO and for Network Revenue, the Performance Level scale ranges from 92.5% to 107.5%. For
organizational unit Revenue, the Performance Level scale ranges from 92.5% to 104.0%. In cases
where actual Adjusted EBITDA/CTO and/or Revenue performance falls between two performance points in
the Performance Scale table, the IC Payout Level used for the Potential Payout calculation will
fall proportionately between the two IC Payout Level percentages in the table.

Personal Scorecard. The scorecard established for an individual participant for a fiscal year that
contains up to five specific measurable objectives for the individual to achieve over the course of
the fiscal year, at least one of which relates to quality in the case of Operations management
positions. Each objective on the Personal Scorecard has a corresponding percentage weighting
value, and the total of all the percentages on a Personal Scorecard will total 100 percent.

Potential Payout. A participant’s “Potential Payout” is the amount of incentive compensation
potentially payable to a participant based on Network and/or organizational unit performance,
before reduction of up to 50 percent based on Personal Scorecard results.

Reallocation Pool. Unallocated (or forfeited) incentive compensation as a result of less than 100
percent performance on participants’ Personal Scorecards which forms a pool of residual dollars for
potential reallocation by the applicable Operating Group President or Functional Head.

Revenue. As measured in The Network’s financial statements, excluding new start investments under
immunity and acquisitions other than tuck-ins (as determined by the CEO).

Revenue Performance Level. Actual Revenue achieved for the fiscal year divided by planned (or
budgeted) Revenue for that year, expressed as a percentage.

Target IC Opportunity. The amount a given participant may earn under the Plan if the applicable
planned (or budgeted) financial targets are achieved and the Personal Scorecard result is 100
percent. This amount is calculated by multiplying the participant’s annual salary by the
applicable Target IC% shown in Exhibit A or Exhibit B. A participant’s “Target IC Opportunity” is
based on the participant’s level of responsibility for and impact on The Network’s business goals.
Refer to Exhibit A for management and other key positions, and to Exhibit B for Executive Officers
and others.

 

2

 

Minimum Threshold Requirement

The minimum actual performance level required for a participant to receive incentive
compensation is 92.5 percent of the planned Adjusted EBITDA/CTO target goal for The Network or an
organizational unit, whichever is applicable to the participant. If the minimum threshold
requirement is not met, the participant will not receive any incentive compensation unless the
participant is awarded discretionary incentive compensation.

In the case of participants whose incentive compensation is based on both The Network’s and an
organizational unit’s performance, the minimum threshold requirement applies separately to each.
That is, if The Network does not achieve the minimum threshold, then the participant will not
receive the portion of the incentive compensation based on The Network’s performance. Similarly,
if the organizational unit does not achieve the minimum threshold, then the participant will not
receive the portion of incentive compensation based on the organizational unit’s performance.

Weighting of Performance Criteria

For purposes of calculating a participant’s incentive compensation, weighting between The
Network’s and organizational unit’s Adjusted EBITDA/CTO and revenue performance is determined
according to a participant’s position, as set out on Exhibits A and B.

For purposes of calculating a participant’s incentive compensation, the weighting between revenue
and Adjusted EBITDA and/or CTO is determined each year by the Compensation Committee.

Calculation of Incentive Payouts

Plan participants are eligible to receive incentive compensation based on The Network’s and/or
their organizational unit’s performance and their own individual Personal Scorecard results. The
principle steps for calculating a participant’s incentive compensation payout are as follows:

	1.	 	Calculate the participant’s Potential Payout.

	2.	 	Determine the participant’s Personal Scorecard results, then calculate the portion of the
Potential Payout that will be paid to the participant based on the results. If the
participant achieved a score of 100 percent on his or her Personal Scorecard, then the
participant’s payout will equal the Potential Payout calculated in Step 1. However, if the
participant’s score is less than 100 percent, the Potential Payout calculated in Step 1 will
be reduced by as much as 50 percent.

	3.	 	If applicable, add discretionary incentive compensation to the amount calculated in Step 2.
Discretionary incentive compensation may be added from the Reallocation Pool and/or the 3%
Discretionary Pool.

 

3

 

For an example of an incentive compensation payout calculation, refer to Annex 2.

Calculating the Potential Payout

To calculate a participant’s Potential Payout described in Step 1 above, the following steps apply:

	1.	 	Determine if the Adjusted EBITDA/CTO Performance Level meets the minimum threshold
requirement (i.e., 92.5 percent of planned performance).

	 	 	If the Adjusted EBITDA/CTO Performance Level does not meet the minimum threshold requirement,
then the participant’s Potential Payout is zero. If the minimum threshold requirement is met,
then proceed to the next step.

	2.	 	Determine the IC Payout Level associated with the EBITDA/CTO Performance Level determined in
Step 1 using the Performance Scale set out on Annex 1.

	3.	 	Calculate the portion of the participant’s Potential Payout attributable to Adjusted
EBITDA/CTO performance by multiplying the participant’s Target Incentive Compensation by the
applicable weighting, as determined by the Compensation Committee for that fiscal year, and
then by the IC Payout Level determined in Step 2.

	4.	 	Determine the Revenue Performance Level for The Network and/or the organizational unit,
whichever is applicable to the participant, and then determine the IC Payout Level associated
with the Revenue Performance Level using the Performance Scale set out on Annex 1.

	5.	 	Calculate the portion of the participant’s Potential Payout attributable to Revenue
performance by multiplying the participant’s Target Incentive Compensation by the applicable
weighting, as determined by the Compensation Committee for that fiscal year, and then by the
IC Payout Level determined in Step 4.

	6.	 	Sum the amounts calculated in Steps 3 and 5 to obtain the Potential Payout.

Applying Personal Scorecard Results to the Potential Payout

	1.	 	A participant’s Personal Scorecard results must be certified by the participant’s supervisor
and: (i) the Operating Group President for a Vice President of Operations; (ii) the Vice
President of Operations, for all other Operations positions; (iii) the functional head, or
chief, of a corporate function (the “Functional Head”), for corporate positions. The CEO and
the President will certify Personal Scorecard results for the Executive Officers reporting to
each of them, respectively, and the Compensation Committee will approve and certify the
Personal Scorecard results for the CEO.

 

4

 

	2.	 	The Personal Scorecard result (which will range from 0 percent to 100 percent) is divided by
two and that number is added to 50 percent, resulting in a modifier of the Potential Payout
(the “Modifier”) ranging from 50 percent to 100 percent.

	3.	 	The Potential Payout is multiplied by the Modifier to yield an initial calculation of an
individual’s incentive compensation ranging from 50 percent to 100 percent of the Potential
Payout as initially calculated.

Discretionary Incentive Compensation

In cases where a participant’s performance may not be adequately rewarded by the calculations
above, additional compensation may be awarded from the the 3% Discretionary Pool, as detailed
below, and/or the Reallocation Pool (established when Personal Scorecards are less than 100
percent). Awards from the Reallocation Pool will be made in the discretion of the applicable
Operating Group President or Functional Head, except for additions to payouts for Executive
Officers, whose additions must be recommended by the CEO and approved by the Compensation
Committee.

Distribution of 3% Discretionary Pool

Based on actual Network Adjusted EBITDA and Revenue performance, the planned (or budgeted) 3%
Discretionary Pool will be adjusted so that it is 3 percent of the total potential pool. Once the
size of the 3% Discretionary Pool has been calculated for the fiscal year, one-half of such pool
will be allocated by the CEO to the operating groups, and the Operating Group Presidents must
approve all additions to incentive compensation payouts from their allocation of the 3%
Discretionary Pool. The other half of such pool shall be available for increases to incentive
compensation payouts to any participant, which payouts shall be approved by the CEO, except for
additions to payouts for Executive Officers, whose additions must be recommended by the CEO and
approved by the Compensation Committee.

Discretionary Divestitures

Notwithstanding the foregoing, if a participant engages in or bears responsibility for
exceptionally poor conduct or poor performance during the fiscal year, he or she may not be
entitled to receive any incentive compensation whatsoever, regardless of the Potential Payout
calculation and Personal Scorecard results. The decision to divest a participant will be made by:
(i) the President/COO and the Operating Group President, for Operations positions; (ii) the CEO and
Functional Head, for Corporate positions; or (iii) the Compensation Committee, for Executive
Officers.

In the Event that Calculated Payouts Exceed

Funds Available to Pay Incentive Compensation

In the event that the total calculated incentive payouts, after taking into account any
discretionary redistributions of unallocated incentive compensation, exceed the funds that are
available to pay incentive compensation, all payouts will be reduced proportionately based on the
funds available.

 

5

 

Administration

Plan Changes

The Compensation Committee must approve the Plan and any changes to the Plan, except that the
President, CFO and CHRO, acting together, may amend Exhibit A and/or Exhibit B to the extent such
amendments do not relate to Executive Officers.

Management of Financial Goals

For each fiscal year, the Compensation Committee must approve:

	 	•	 	The Network’s Adjusted EBITDA and revenue performance goals that will be used for
measuring Network performance;

	 	•	 	The weighting between Adjusted EBITDA and revenue that will be used to calculate
performance under the Plan; and

	 	•	 	The Network’s actual performance results that will be used as the basis for calculating
incentive compensation payouts.

The CEO, President/COO and CFO must approve actual performance results for organizational units as
compared to the budgeted (i.e., planned) goals approved by management.

Establishment of Personal Scorecards

At the beginning of each fiscal year, a participant will work with his or her supervisor to create
a Personal Scorecard that sets out up to five measurable objectives to achieve over the course of
the fiscal year that align with the organization’s overall business goals. In the case of
operations positions, at least one objective will relate to quality of services. The President/COO,
the CFO and the CHRO, acting together, may waive or change the number of goals for any participant
who is not an Executive Officer. The supervisor will also set the weighting among a participant’s
goals, which in total must equal 100 percent.

Incentive Compensation Payouts

Each fiscal year, the Compensation Committee must approve all incentive compensation payouts for
Executive Officers. The CEO must approve all other incentive compensation payouts.

Approval of New Plan Entrants

The Compensation Committee must approve any new Executive Officer entering the plan and the
applicable performance weightings and incentive compensation payout opportunities.

Approval of new entrants other than Executive Officers is based on whether an employee’s position
has been approved for plan participation (as set forth on Exhibit A or Exhibit B). New
participants (other than Executive Officers and other than those set forth on Exhibit A or Exhibit
B) must be approved for entry into the Plan by the President/COO, CFO and CHRO.

 

6

 

Participant Termination Provisions

Terminations Without Cause and Voluntary Terminations

Plan participants whose employment is terminated without cause or who terminate employment
voluntarily before the actual payment date of incentive compensation, other than by retirement,
will not be eligible for any incentive payout under the Plan, with the exception of specific
situations that are approved by the CEO or, in the case of payouts for Executive Officers, approved
by the Compensation Committee.

Involuntary Terminations for Cause

Plan participants whose employment is involuntarily terminated for cause will not be eligible for
incentive payouts under the Plan under any circumstances. “Cause” shall mean any of the following:
(i) theft or embezzlement, or attempted theft or embezzlement, of money or property of the Company
or any subsidiary, perpetration or attempted perpetration of fraud, or participation in a fraud or
attempted fraud, on the Company or any subsidiary, or any third party, or unauthorized
appropriation of, or attempt to misappropriate, any tangible or intangible assets or property of
the Company or any subsidiary; (ii) any act or acts of disloyalty, misconduct, or moral turpitude
injurious to the interest, property, operations, or business reputation of the Company or any
subsidiary; (iii) material violation of any agreement with the Company or any serious violation of
the Company’s policies, including its Code of Conduct; or (iv) failure or inability (other than by
reason of disability) to carry out effectively a participant’s duties and obligations to the
Company and its subsidiaries or to participate effectively and actively in the management of the
Company and its subsidiaries, as determined in the reasonable judgment of the CEO or, with respect
to the CEO, the Compensation Committee.

Retirement and Death

Plan participants whose employment terminates because of retirement or death are eligible to
receive an incentive compensation payout. The payout will be calculated based upon actual Network
and/or organizational unit performance for the full fiscal year and the Personal Scorecard for the
portion of the year that the individual was employed, and the resulting amount prorated for the
portion of the year that was worked. Any incentive compensation payout that is earned will be paid
at the normal payout date for all Plan participants.

Special Provisions Relating to Position and Status Changes

Promotions and Job Transfers

Personal Scorecard criteria and Plan goals and payout weightings may be reestablished for an
individual participant upon transfer or promotion to a new position. Unless otherwise
determined by the CEO, incentive payouts will be calculated based upon the participant’s position
and base salary as of the last day of the fiscal year.

 

7

 

Interruptions in Work

A long-term illness or disability will not affect the eligibility of an employee to participate in
the Plan. Personal Scorecard objectives will not be adjusted based on the work interruption,
although actual performance achieved will be evaluated and the corresponding incentive payout will
be prorated based upon the amount of time worked during the performance period.

“Disability” shall mean the inability, due to illness, accident, injury, physical or mental
incapacity, or other disability, of any participant to carry out effectively his or her duties and
obligations to the Company or to participate effectively and actively in the management of the
Company for a period of at least 90 consecutive days or for shorter periods aggregating at least 90
days (whether or not consecutive) during any 180-day period, as determined in the reasonable
judgment of the CEO, or in the case of an Executive Officer, the Compensation Committee.

Special assignments generally will not affect either the target goals or incentive payout, except
as may be reflected in a participant’s performance review rating. However, if the special
assignment is of a significant nature or duration, Personal Scorecard and Plan goals may be
reestablished and incentive payouts prorated based on the time spent in each position during the
performance period.

Plan Year and Effective Date

The Plan year is the fiscal year, which starts on October 1st and ends on September
30th. The effective date of this amended and restated plan is October 1, 2011.

Plan Amendments

The MENTOR Network reserves the right to amend this Plan at any time, including termination of
the Plan, without prior notice to participants.

 

8

 

Exhibit A: Eligibility, Target IC Opportunity, and Weighting for Management Positions

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Target IC %	 	 	Network	 	 	Organizational	 
	Eligible Positions	 	Opportunity	 	 	Weighting	 	 	Unit Weighting	 
	Operations and Field Management Positions
	 	 	 	 	 	 	 	 	 	 	 	 
	Vice President, Operations
	 	 	30	%	 	 	25	%	 	 	75	%
	Vice President, CFO
	 	 	30	%	 	 	25	%	 	 	75	%
	Vice President, Field HR
	 	 	30	%	 	 	25	%	 	 	75	%
	Senior Executive Director
	 	 	25	%	 	 	25	%	 	 	75	%
	Executive Director
	 	 	20	%	 	 	0	%	 	 	100	%
	State Director
	 	 	20	%	 	 	0	%	 	 	100	%
	Regional Director
	 	 	15	%	 	 	0	%	 	 	100	%
	Operations Director
	 	 	15	%	 	 	0	%	 	 	100	%
	Area Director
	 	 	10	%	 	 	0	%	 	 	100	%
	Program Manager II
	 	 	10	%	 	 	0	%	 	 	100	%
	Senior Business Director
	 	 	20	%	 	 	25	%	 	 	75	%
	Business Director
	 	 	15	%	 	 	25	%	 	 	75	%
	Business Manager
	 	 	10	%	 	 	0	%	 	 	100	%
	State Accounting Manager
	 	 	10	%	 	 	0	%	 	 	100	%
	Operating Group Director, QA
	 	 	15	%	 	 	25	%	 	 	75	%
	Director (Regional level HR & QA)
	 	 	10	%	 	 	25	%	 	 	75	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Corporate (All positions at
levels indicated below)
	 	 	 	 	 	 	 	 	 	 	 	 
	Vice President
	 	 	30	%	 	 	100	%	 	 	0	%
	Senior Director
	 	 	20	%	 	 	100	%	 	 	0	%
	Director
	 	 	15	%	 	 	100	%	 	 	0	%
	Manager
	 	 	10	%	 	 	100	%	 	 	0	%
	Manager (Designated Field)
	 	 	10	%	 	 	100	%	 	 	0	%

 

9

 

Exhibit B: Target IC Opportunity and Weighting for Executive Officer Positions

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Target IC Payout	 	 	 	 	 	 	 
	Position	 	Opportunity	 	 	Network	 	 	Operating Group	 
	Chief Executive Officer
	 	 	100	%	 	 	100	%	 	 	0	%
	President and Chief Operating Officer
	 	 	75	%	 	 	100	%	 	 	0	%
	Operating Group Presidents
	 	 	50	%	 	 	25	%	 	 	75	%
	All Other Executive Officers
	 	 	50	%	 	 	100	%	 	 	0	%

 

10

 

Annex 1: Performance Scale

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	IC Payout Level Based on Performance	 
	 	 	Performance	 	 	 	 	 	 	 	 	 	 	 
	 	 	Level	 	 	 	 	 	 	Performance	 	 	 	 
	 	 	(EBITDA/CTO	 	 	IC	 	 	Level (Org	 	 	IC	 
	 	 	& Network	 	 	Payout	 	 	Unit	 	 	Payout	 
	 	 	Revenue)	 	 	Level	 	 	Revenue)	 	 	Level	 
	 
	 	 	107.5	%	 	 	150.0	%	 	 	 	 	 	 	 	 
	 
	 	 	106.0	%	 	 	140.0	%	 	 	104.0	%	 	 	150.0	%
	 
	 	 	104.5	%	 	 	130.0	%	 	 	103.0	%	 	 	137.5	%
	 
	 	 	103.0	%	 	 	120.0	%	 	 	102.0	%	 	 	125.0	%
	 
	 	 	101.5	%	 	 	110.0	%	 	 	101.0	%	 	 	112.5	%
	Target (Plan)
	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%	 	 	100.0	%
	 
	 	 	98.5	%	 	 	90.0	%	 	 	98.5	%	 	 	90.0	%
	 
	 	 	97.0	%	 	 	80.0	%	 	 	97.0	%	 	 	80.0	%
	 
	 	 	95.5	%	 	 	70.0	%	 	 	95.5	%	 	 	70.0	%
	 
	 	 	94.0	%	 	 	60.0	%	 	 	94.0	%	 	 	60.0	%
	 
	 	 	92.5	%	 	 	50.0	%	 	 	92.5	%	 	 	50.0	%

 

11

 

Annex 2:

Sample Incentive Compensation Calculation and Scorecard Results

TMN Human Services and Corporate Management Incentive Compensation Plan Sample — Calculation and
Scorecard

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Employee	 	Position Title	 	 	Salary	 	 	Target IC %	 	 	Target IC $	 
	Doe, John
	 	Area Director	 	$	50,000	 	 	 	10	%	 	$	5,000	 

Your Potential Payout Based on Organization Performance (Note: Before applying your Scorecard
results)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Target	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Potential	 
	Objective	 	Weight	 	 	Payout	 	 	Target	 	 	Result	 	 	% of Target	 	 	Payout %	 	 	Payout	 
	Revenue
	 	 	50	%	 	$	2,500	 	 	$	15,000,000	 	 	$	15,123,456	 	 	 	103.0	%	 	 	137.5	%	 	$	3,438	 
	CTO
	 	 	50	%	 	$	2,500	 	 	$	2,250,000	 	 	$	2,200,000	 	 	 	97.8	%	 	 	85.2	%	 	$	2,130	 
	Total Potential Payout
	 	 	100	%	 	$	5,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	111.3	%	 	$	5,567	 
	Amount at Risk Based
on Your Scorecard
Results (50%)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	2,784	 

Your Scorecard Results (S.M.A.R.T. Goals — Specific. Measureable. Attainable. Relevant. Time-bound.)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Scorecard	 	 	Target	 	 	 	 	 	 	 	 	 	 	Payout for	 
	Objectives (EXAMPLES ONLY)	 	Weight	 	 	Payout	 	 	Achieved	 	 	Payout %	 	 	Scorecard	 
	Quality: Reduce major incidents by 25%, from 16 in FY11 to 12 or less in FY12.
	 	 	20	%	 	$	557	 	 	Yes	 	 	100	%	 	$	557	 
	Quality: Conduct quarterly surveys to measure and achieve 85% of consumers rating service provided as Very Good or better by Q4 FY12 survey.
	 	 	20	%	 	$	557	 	 	Yes	 	 	100	%	 	$	557	 
	Growth: Work with VPOs and SEDs to ensure approval by 9/30/12 of 8 new start proposals with projected revenue totaling at least $8.8 million
	 	 	25	%	 	$	696	 	 	No	 	 	0	%	 	$	—	 
	Safety/Cost Reduction: Identify opportunities and begin execution to achieve net spending impact held to budget levels with business case(s) developed and initiated for next phase
	 	 	15	%	 	$	418	 	 	No	 	 	0	%	 	$	—	 
	People: Maximize revenue by reducing turnover of Direct Support Professional by 10%
	 	 	20	%	 	$	557	 	 	Yes	 	 	100	%	 	$	557	 
	Portion of Potential Payout Achieved Based on Your Scorecard Results
	 	 	100	%	 	$	2,784	 	 	 	 	 	 	 	60	%	 	$	1,670	 
	Total Payout After Applying Your Scorecard Results
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	4,454	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Discretionary Award from Reallocation Pool
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	500	 
	Discretionary Award from 3% Pool
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	250	 
	Total Payout Including Discretionary Awards
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	5,204	 

 

12

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