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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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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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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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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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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