EX-10.72


  
	

	 

 2013
Executive Cash
 Incentive Bonus Plan

Exhibit 10.72
 







  
	

	 


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.

BU QRG

Defined as business unit 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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Executive 

Officers

(except Business Unit 

VPs)

EventSpot VP and 

SinglePlatform VP

SaveLocal VP

QRG

50%

25%

40%

BU QRG

--

25%

--

Adjusted EBITDA 

Margin

15%

15%

15%

MBOs

35%

35%

45%

100%

100%

100%

Annual Weighting of Metrics

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Target Payouts by Quarter 

(Executive Officers, except EventSpot VP, SaveLocal VP and SinglePlatform VP)

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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Target Payouts by Quarter 

(EventSpot VP and SinglePlatform VP)

Q1

Q2

Q3

Q4

Total

QRG

6.25%

6.25%

6.25%

6.25%

25%

BU QRG

6.25%

6.25%

6.25%

6.25%

25%

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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Target Payouts by Quarter 

(SaveLocal VP)

Q1

Q2

Q3

Q4

Total

QRG

10%

10%

10%

10%

40%

Adjusted 

EBITDA 

Margin

3.75%

3.75%

3.75%

3.75%

15%

MBOs

--

22.5%

--

22.5%

45%

13.75%

36.25%

13.75%

36.25%

100%

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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.

BU 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 Compensation Committee at beginning of year for CEO.

Set by CEO at beginning of year for each Vice President and reviewed by 

Compensation Committee.

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Target Leverage and Ranges

QRG

Minimum

target

QRG

threshold

-

80%;

payout

at

50%

of

target.

Maximum

target

QRG

threshold

-

140%;

payout

at

300%

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 105% 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 

<80%

80%

85%

90%

95%

100%

105%

110%

115%

120%

125%

130%

135%

140%+

Payout 

Percentage 

1

0%

50%

63%

75%

88%

100%

125%

150%

175%

200%

225%

250%

275%

300%

Achievement 

< Target EBITDA –

1% Point

Target

EBITDA

-

1%

Point

Target EBITDA %

Target EBITDA  + 1% Point

> Target EBITDA  + 1% Point 

(and above)

Payout 

Percentage 

1

0%

95%

100%

105%

105%

QRG and BU QRG Leverage Model

Adjusted EBITDA Margin Model

1

Linear interpolation between data points

1

Linear interpolation between data points

Target Leverage and Ranges

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Miscellaneous

All payments under the 2013 Executive Cash 

Incentive Bonus Plan are subject to the Clawback 

Policy adopted by the Compensation Committee 

on December 6, 2013.

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2013 Constant Contact Inc.

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