On January 25, 2013, the Compensation Committee (the "Committee") of the Board of Directors of Demandware, Inc. (the "Company") approved the 2013 Executive Short-Term Incentive Program (the "2013 Plan"), pursuant to which the Company's executive officers are eligible to receive an annual cash bonus (a "Bonus Award") based on the Company's achievement of specified corporate thresholds and targets (90%) and on the executive's individual performance (10%) for the year ending December 31, 2013. Under the 2013 Plan, the corporate performance metrics and weighting are as follows:

• 50% of the corporate performance portion of the Bonus Award is based upon committed first year annual contract value for new customer contracts signed in 2013, excluding support, services and training fees under those agreements;

• 30% of the corporate performance portion of the Bonus Award is based upon subscription revenue, which is the total subscription revenue recognized for the entire year, excluding support, services and training revenue; and

• 20% of the corporate performance portion of the Bonus Award is based on renewal dollar percentage.

Under the 2013 Plan, each executive officer has an established target award, as set forth on the table below, representing a percentage of such executive's base salary for 2013. To the extent that the Company's actual performance exceeds the full performance target with respect to a particular performance metric, the target bonus may be increased by up to 50%.

                                     2013 Target Bonus Award as a
                Executive Officer     Percentage of Base Salary
                Thomas D. Ebling                 115%
                Jeffrey G. Barnett               100%
                Scott J. Dussault                 60%
                Wayne R. Whitcomb                 36%