EXHIBIT 10.1
FY 2003 Bonus Plan for CMGI Corporate
Plan Objective:
To attract, motivate and retain key talent based on CMGI consolidated business
performance in addition to individual performance.
Eligibility:
Select managers and senior individual contributors who are employees of CMGI and
who have been identified as having an impact on the overall business goals and
objectives of CMGI.
Measurements & Financial Objectives:
The following are the measurements for the bonus plan and the associated
financial objectives and budget that will be used to determine business
performance:
Measurement Weighting
----------- ---------
1. CMGI Consolidated Business Performance
Financial Objectives:
. Revenue 25%
. Pro-Forma Operating Income/Loss 25%
. Cash Usage 25%
2. Individual Performance
. Based on achievement against individual goals & objectives 25%
Pro-Forma Operating Income/Loss is defined as Operating Income/Loss
excluding in-process research & development expenses, depreciation,
amortization, long-lived asset impairment and restructuring charges.
Actual business performance will be based on the annual achievement of
the defined financial objectives against the FY 2003 Plan, as approved
by the CMGI Board of Directors. CMGI reserves the right to modify the
budget and financial objectives as necessary based on business changes
associated with mergers, acquisitions, divestitures, shutdowns or other
business situations which require approval from the CMGI Board of
Directors. CMGI also reserves the right to adjust the budget based on
changes in corporate allocations.
Program Funding:
The bonus payout pool will be determined by CMGI consolidated business
performance. Exact funding for the bonus pool for CMGI Corporate will
be driven by the ability of CMGI to meet or exceed its budgeted
financial objectives as approved by CMGI's Board of Directors.
Overall business performance generally has a direct correlation to
individual performance. However, the bonus plan provides for discretion
in recognizing individual accomplishments against goals and objectives,
in addition to business performance. All employees enrolled in the FY
2003 Bonus Plan must have clearly documented goals and objectives in
order to be eligible for the Individual Performance measurement. Any
bonus payments for individual performance will be based on
accomplishments against documented individual goals & objectives,
management discretion and overall bonus pool funding.
Payout Table:
The table below will be used to determine the bonus pool based on final
CMGI consolidated business performance. A minimum performance threshold
of 80% must be achieved for pool funding associated with each specific
financial objective. The maximum pool funding based on business
performance is 200%. Every 1% increase or decrease in performance
equals 2.5% increase or decrease in funding.
- --------------------------------------------------------------------------------
Business Performance *80% 80% 90% 100% 110% 120% 130% ****140%
- --------------------------------------------------------------------------------
Pool Funding 0% 50% 75% 100% 125% 150% 175% 200%
- --------------------------------------------------------------------------------
* Denotes less than
**** Denotes greater than or equal to
Timing of Payment:
Any earned bonus payments will be measured on an annual basis and paid
annually. Payments will be determined after all companies have
submitted their actual performance against FY 2003 Plan.
Employment Status:
In order to be eligible to receive any bonus payment under this Plan,
participants must be actively employed by CMGI at the time annual bonus
payments are made, which will be as soon as administratively possible
following the close of the fiscal year. If a participant is a new hire
during the year or had a bonus change during the year, he or she will
be eligible for a pro-rated bonus payment based on time worked during
the plan year. If a participant voluntarily leaves CMGI prior to the
time the bonus payments are made, he/she will be ineligible to receive
any bonus payment. If an employee is involuntarily terminated by CMGI,
for reasons other than cause, prior to the time the bonus payments are
made, he/she may, in certain circumstances, be eligible for
consideration for a pro-rated bonus payment based on management
discretion and time worked during the plan year. If a participant
transfers to any other CMGI controlled subsidiary, he/she will be
eligible for a pro-rated bonus payment based on management discretion
and for the time worked during the plan year.
Administration:
This plan shall be administered by the CMGI Board of Directors. The
CMGI Board of Directors reserves the right to apply its discretion to
bonus plan eligibility, overall bonus funding and payment of bonuses.
The CMGI Board of Directors reserves the right to amend or terminate
this plan at any time. The CMGI Board of Directors reserves the right
to modify the financial objectives and FY 2003 Plan at any time based
on business changes during the year. This plan shall be governed by and
construed in accordance with the laws of the Commonwealth of
Massachusetts.