Document:

exv10w28

Exhibit 10.28

	

2009 Executive Cash Incentive Bonus Plan

 

	

 Incentive Structure

 Quarterly weightings

 Metrics

 Weighting of metrics

 Target setting

 Target leverage and ranges

 

	

Quarterly Weightings

For CEO

Q1 20% of annual target (25% of annual financial target)

Q2 20% of annual target (25% of annual financial target)

Q3 20% of annual target (25% of annual financial target)

Q4 20% of annual target (25% of annual financial target)

Q4 20% of total target (100% of MBO target)

For Vice Presidents

Q1 25% of annual financial & MBO target

Q2 25% of annual financial & MBO target

Q3 25% of annual financial & MBO target

Q4 25% of annual financial & MBO target

 

	

Metrics

AMRG

Defined as average monthly gross revenue growth during a
quarter

Adjusted EBITDA Margin

Defined as GAAP operating income, plus depreciation and
amortization, plus non-cash stock based compensation,
calculated as a percentage of net revenue

Individual MBOs

MBOs will be specific, measurable, attainable, realistic and time-
based

 

	

Weighting of Metrics

 Weighting of metrics - CEO

AMRG - 56% (Payable Quarterly)

Adjusted EBITDA Margin - 24% (Payable Quarterly)

Individual Annual MBOs - 20% (Payable Annually)

 Weighting of metrics - Vice Presidents

AMRG - 50% (Payable Quarterly)

Adjusted EBITDA Margin - 20% (Payable Quarterly)

Individual Quarterly MBOs  - 30% (Payable Quarterly)

 

	

Target Setting

AMRG set equal to budget / reforecast levels

Set at beginning of year and mid-year

Adjusted EBITDA Margin set equal to budget / reforecast
levels

Set at beginning of year and mid-year

Individual MBOs

Set at beginning of respective quarters for Vice Presidents and at
beginning of year for CEO

Set by CEO for Vice Presidents

Set by Compensation Committee for CEO

 

	

Target Leverage and Ranges

AMRG

Minimum threshold 85%; payout of 60% of target

Maximum threshold 140%; payout of 200% of target

Adjusted EBITDA margin

Target EBITDA Margin - minimum (- one percentage point)
payout of 95% of target

Target EBITDA Margin - maximum (+ one percentage point);
payout of 105% of target

MBOs

No minimum thresholds

Maximum thresholds 100%

Payout equal to weighted % attainment of targets

 

	

Target Leverage and Ranges
   Achievement    85%   90%   95%   100%   105%   110%   115%   120%   125%   130%   135%   140%
   Payout Percentage1   60%   73%   87%   100%   113%   127%   140%   153%   167%   180%   193%   200%

AMRG Leverage Model
   Achievement    < Target EBITDA - 1%   Target EBITDA  - 1%   Target EBITDA %   Target EBITDA  + 1%    > Target EBITDA  + 1%
   Payout Percentage1   0%   95%   100%   105%   105%

Adjusted EBITDA Leverage Model

1Linear interpolation between data points

1Linear interpolation between data pointsexv10w32

Exhibit 10.32

December 9, 2008

Nancie Freitas

[Address Omitted]

Dear Nancie:

     You and Constant Contact, Inc. (the “Company) are parties to an offer letter dated November
14, 2005 (the “Letter Agreement”), which outlines the terms and conditions of your employment with
the Company. In light of recent tax legislation under Section 409A of the Internal Revenue Code
(“Section 409A”), you and the Company mutually desire to amend certain provisions of the Letter
Agreement as set forth below:

Seventh Paragraph under Terms and Conditions of Offer

The seventh paragraph under the terms and conditions of the offer shall be deleted in its entirety
and replaced with the following:

“If the Company terminates your employment without cause or if you resign for Good Reason (as
defined below), then you will receive six (6) months base salary and six (6) months continued
health insurance benefits for you and your dependents, which payments and benefits will be made in
accordance with the Company’s normal payroll practices over the six-month period following your
termination of employment. The payments and benefits due, if any, pursuant to this paragraph shall
be subject to the terms and conditions set forth in Exhibit A to this letter.

“Good Reason” shall mean, for purposes of this letter, the occurrence of any of the following
events without your prior written consent:

(i) a material diminution in your base compensation;

(ii) a material diminution in your duties, authority or responsibilities;

(iii) a material relocation; or

(iv) a material breach of this letter or the Letter Agreement;

 

 

provided, however, that no such event or condition shall constitute Good Reason unless (x) you give
the Company written notice of termination for Good Reason not more than 90 days after the initial
existence of the condition, (y) the grounds for termination (if
susceptible to correction) are not corrected by the Company within 30 days of its receipt of such
notice and (z) your termination of employment occurs within one year following the Company’s
receipt of such notice.”

Except as specifically provided herein, all other terms of the Letter Agreement shall remain in
full force and effect. If the terms of this amendment are acceptable to you, please sign and
return the copy of this amendment enclosed for that purpose no later than December 9, 2008.

Sincerely,

Constant Contact, Inc.

By: /s/
Steven R. Wasserman                                   

Title:
Vice President and
Chief Financial Officer   

The foregoing correctly sets forth the terms of my continued employment with the Company. I am not
relying on any representations other than as set out in the Letter Agreement and the amendment
thereto set forth above. I have been given a reasonable amount of time to consider this amendment
and to consult an attorney and/or advisor of my choosing. I have carefully read this amendment,
understand the contents herein, freely and voluntarily assent to all of the terms and conditions
hereof, and sign my name of my own free act.

	 	 	 	 	 
	/s/ Nancie Freitas	 	 	 	Date: December 9, 2008
	 

Nancie Freitas

	 	 
	 	 

 

 

Exhibit A: Payments subject to Section 409A

Subject to the provisions in this Exhibit A, any severance payments or benefits under the Letter
Agreement, as amended, shall begin only upon the date of your “separation from service” (determined
as set forth below) which occurs on or after the date of termination of your employment. The
following rules shall apply with respect to distribution of the payments and benefits, if any, to
be provided to you under the Letter Agreement, as amended:

1. It is intended that each installment of the severance payments and benefits provided under the
Letter Agreement, as amended, shall be treated as a separate “payment” for purposes of Section 409A
of the Internal Revenue Code and the guidance issued thereunder (“Section 409A”). Neither the
Company nor you shall have the right to accelerate or defer the delivery of any such payments or
benefits except to the extent specifically permitted or required by Section 409A.

2. If, as of the date of your “separation from service” from the Company, you are not a “specified
employee” (within the meaning of Section 409A), then each installment of the severance payments and
benefits shall be made on the dates and terms set forth in the Letter Agreement, as amended.

3. If, as of the date of your “separation from service” from the Company, you are a “specified
employee” (within the meaning of Section 409A), then:

     a. Each installment of the severance payments and benefits due under the Letter Agreement, as
amended, that, in accordance with the dates and terms set forth herein, will in all circumstances,
regardless of when the separation from service occurs, be paid within the Short-Term Deferral
Period (as hereinafter defined) shall be treated as a short-term deferral within the meaning of
Treasury Regulation Section 1.409A-1(b)(4) to the maximum extent permissible under Section 409A.
For purposes of the Letter Agreement, as amended, the “Short-Term Deferral Period” means the period
ending on the later of the fifteenth day of the third month following the end of your tax year in
which the separation from service occurs and the fifteenth day of the third month following the end
of the Company’s tax year in which the separation from service occurs; and

     b. Each installment of the severance payments and benefits due under the Letter Agreement, as
amended, that is not described in paragraph 3(a) above and that would, absent this subsection, be
paid within the six-month period following your “separation from service” from the Company shall
not be paid until the date that is six months and one day after such separation from service (or,
if earlier, your death), with any such installments that are required to be delayed being
accumulated during the six-month period and paid in a lump sum on the date that is six months and
one day following your separation from service and any subsequent installments, if any, being paid
in accordance with the dates and terms set forth herein; provided, however, that
the preceding provisions of this sentence shall not apply to any installment of severance payments
and benefits if and to the maximum extent that that such installment is deemed to be paid under a
separation pay plan that does not provide for a deferral of compensation by

 

 

reason of the application of Treasury Regulation 1.409A-1(b)(9)(iii) (relating to separation pay
upon an involuntary separation from service). Any installments that qualify for the exception
under Treasury Regulation Section 1.409A-1(b)(9)(iii) must be paid no later than the last day of
your second taxable year following your taxable year in which the separation from service occurs.

4. The determination of whether and when your separation from service from the Company has occurred
shall be made and in a manner consistent with, and based on the presumptions set forth in, Treasury
Regulation Section 1.409A-1(h). Solely for purposes of this paragraph 4, “Company” shall include
all persons with whom the Company would be considered a single employer under Section 414(b) and
414(c) of the Code.

5. All reimbursements and in-kind benefits provided under the Letter Agreement, as amended, shall
be made or provided in accordance with the requirements of Section 409A to the extent that such
reimbursements or in-kind benefits are subject to Section 409A, including, where applicable, the
requirement that (i) any reimbursement is for expenses incurred during your lifetime (or during a
shorter period of time specified in the Letter Agreement, as amended), (ii) the amount of expenses
eligible for reimbursement during a calendar year may not affect the expenses eligible for
reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be
made on or before the last day of the calendar year following the year in which the expense is
incurred and (iv) the right to reimbursement is not subject to set off or liquidation or exchange
for any other benefit.

6. The Company may withhold (or cause to be withheld) from any payments made under the Letter
Agreement, as amended, all federal, state, city or other taxes as shall be required to be withheld
pursuant to any law or governmental regulation or ruling.

 

 

November 17, 2005

Nancie Freitas

[Address Omitted]

Dear Nancie:

It is my pleasure to present you with an offer to join Constant Contact. As the industry leader in
permission-based email marketing for small and medium businesses, the prospects for future growth
and overall success depend largely on the talent and skills of the individuals we bring into the
organization. We look forward to your joining Constant Contact and the beginning of a mutually
rewarding relationship!

The following sets forth the terms and conditions of our offer of employment to you:

	 	§ 	 	You will be hired as Vice President of Acquisition Marketing, reporting to Richard
Turcott, Chief Marketing Officer.
	 
	 	§	 	Your starting base pay shall be at a semi-monthly rate of $6,666.67 (annualized this
equates to $160,000). You will be paid in accordance with the Company’s normal payroll
practices as established or modified from time to time
	 
	 	§	 	You will be paid $5,000.00 as a sign on bonus in your first payroll
after your start date.
	 
	 	§	 	You will be eligible for a $40,000.00 yearly bonus paid on a quarterly basis during a
calendar year. The bonus will be based on meeting quarterly goals agreed upon with me.
	 
	 	§	 	Associated with the position will be participation in the Company’s Stock Option Plan,
through an option for 25,000 shares, subject to board approval, vesting over four years.
The vesting schedule is twenty-five percent (25%) after one full year of service and
quarterly thereafter (six and a quarter percent (6.25%) per quarter).
	 
	 	§	 	Beginning with your initial date of employment, as a full-time employee you will accrue
vacation at a rate of 20 days per calendar year, or 13.33 hours for each full month
employed.
	 
	 	§	 	If your employment with Constant Contact is terminated, without cause, during the first
year of employment or if the company moves more than 20 miles from its current location
you will receive a severance package of three months salary.
	 
	 	§	 	Your employment with Constant Contact will begin on January 11, 2006 or as mutually
agreed. You will be expected to devote all of your working time to the performance of
your duties at Constant Contact throughout your employment with the Company. No provision
of this letter shall be construed to create an express or implied employment contract, or
a promise of employment for any specific period of time. Your employment with Constant
Contact is “at-will” and may be terminated by you or Constant Contact at any time for any
reason.  
	 
	 	§	 	This offer is in effect until November 23, 2005.

 

 

Administaff sponsors and administers our employee benefit plans. The Company reserves the right to
change or discontinue any of its health and welfare benefits and/or policies and procedures, as it
deems appropriate

It is the Company’s understanding that you have made no agreements with any other party that would
restrict you from being employed by the Company in this role. It is necessary for you to sign the
Company’s Nondisclosure, Noncompetition and Developments Agreement, a copy of which is enclosed
with this letter.

Your employment with Constant Contact is conditioned on your eligibility to work in the United
States. On your first day of employment you must complete an I-9 Form and provide Constant Contact
with any of the accepted forms of identification specified on the I-9 Form.

Sincerely,

/s/
Richard Turcott                                                    

Richard Turcott

Chief Marketing Officer

	 	 	 	 	 	 	 	 	 	 	 
	ACCEPTED:

	 	/s/ Nancie Freitas	 	 	 	DATE:	 	November 17, 2005

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