EX-10.71 5 d633450dex1071.htm EX-10.71 EX-10.71
2014 Executive Cash
Incentive Bonus Plan
Exhibit 10.71


Bonus Plan Structure –
Table of Contents
Metrics
Annual Weighting of metrics
Target Payouts by quarter
Target setting
Target leverage and ranges
Miscellaneous
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2013 Constant Contact Inc.
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Metrics
QRG
Defined as quarterly revenue growth.
Adjusted EBITDA Margin
Adjusted EBITDA is calculated by taking GAAP net income, adding
depreciation and amortization, stock-based compensation, adjusting for
taxes and contingent consideration adjustment (if any), then subtracting
interest and other income, net. Adjusted EBITDA margin is equal to
adjusted EBITDA divided by revenue.
Individual Performance Objectives (MBOs)
MBOs will be focused on identifiable and measurable objectives related
to specific areas of responsibility (measured semi-annually).
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CEO
Executive Officers
(except CEO)
QRG
75%
50%
Adjusted EBITDA
Margin
25%
15%
MBOs
--
35%
100%
100%
Annual Weighting of Metrics
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Target Payouts by Quarter
(CEO)
Q1
Q2
Q3
Q4
Total
QRG
18.75%
18.75%
18.75%
18.75%
75%
Adjusted
EBITDA
Margin
6.25%
6.25%
6.25%
6.25%
25%
25%
25%
25%
25%
100%
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2013 Constant Contact Inc.
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Target Payouts by Quarter
(Executive Officers, except CEO)
Q1
Q2
Q3
Q4
Total
QRG
12.5%
12.5%
12.5%
12.5%
50%
Adjusted
EBITDA
Margin
3.75%
3.75%
3.75%
3.75%
15%
MBOs
--
17.5%
--
17.5%
35%
16.25%
33.75%
16.25%
33.75%
100%
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2013 Constant Contact Inc.
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Target Setting
QRG
Set by Compensation Committee at beginning of year and mid-year based on
budget approved by the Board of Directors.
Adjusted EBITDA Margin
Set by Compensation Committee at beginning of year and mid-year based on
budget approved by the Board of Directors.
Individual MBOs
Set by CEO at beginning of year for each executive officer and reviewed by
Compensation Committee.
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2013 Constant Contact Inc.
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Target Leverage and Ranges
QRG
Minimum
target
QRG
achievement
threshold
payout
at
50%
of
target.
Baseline
QRG
achievement
payout
at
100%
of
target.
Budget
QRG
achievement
payout
at
125%
of
target.
Maximum
target
QRG
achievement
threshold
payout
at
250%
of
target.
See chart 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 115% of target.
See chart on next page.
MBOs
Minimum threshold established for each executive officer.
Maximum payment established for each executive officer (capped at 200%).
Payout equal to weighted % attainment of objective.
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2013 Constant Contact Inc.
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Achievement
< Target EBITDA
1% Point
Target EBITDA  -
1% Point
Target EBITDA %
Target EBITDA  + 1% Point
> Target EBITDA  + 1% Point
(and above)
Payout
Percentage¹
0%
95%
100%
115%
115%
QRG Leverage Model
Adjusted EBITDA Margin Model
1
Linear interpolation between primary data points
1
Linear interpolation between primary data points
Target Leverage and Ranges
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2013 Constant Contact Inc.
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Min
Baseline
Budget
Max
Achievement
65%
69%
73%
76%
80%
85%
90%
95%
100%
118%
135%
153%
170%
Payout
50%
63%
75%
88%
100%
106%
113%
119%
125%
156%
188%
219%
250%


Miscellaneous
All payments under the 2014 Executive Cash
Incentive Bonus Plan are subject to the Clawback
Policy adopted by the Compensation Committee in
December 2013.
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2013 Constant Contact Inc.
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