CONSTANT CONTACT, INC. Form of Restricted Stock Unit Agreement (for Executives) Under 2011 Stock Incentive Plan (Time-Based Vesting)
Exhibit 10.6
Form of
Restricted Stock Unit Agreement (for Executives)
Under 2011 Stock Incentive Plan
(Time-Based Vesting)
Restricted Stock Unit Agreement (for Executives)
Under 2011 Stock Incentive Plan
(Time-Based Vesting)
AGREEMENT made between Constant Contact, Inc., a Delaware corporation (the “Company”), and
[____________________] (“you”).
For valuable consideration, receipt of which is acknowledged, the Company and you agree as
follows:
1. Grant of RSUs.
On [__________________] and subject to the terms and conditions set forth in this Agreement
and in the Constant Contact, Inc. 2011 Stock Incentive Plan (the “Plan”), the Company has granted
you Restricted Stock Units (“RSUs”) providing you with the right to receive [____________] shares
of common stock (“Common Stock”), $0.01 par value per share, of the Company (the “Shares”).
2. Vesting and Forfeiture.
(a) While you remain employed by, or engaged to provide services on an individual basis to,
the Company, [[____]% of the RSUs will vest on the first anniversary of [__________], and [____]%
of the RSUs will vest at the end of each successive [__________] period thereafter, such that 100%
of the RSUs will be fully vested on [___________]]/[[____]% of the RSUs will vest on the first
anniversary of your Employment Date, and [____]% of the RSUs will vest at the end of each
successive [__________] period thereafter, such that 100% of the RSUs will be fully vested on
[___________] the [_____] anniversary of your Employment Date. Your “Employment Date” means
[__________], the date on which your employment with the Company commenced]. The date upon which
any of the RSUs vest will be considered a “Vesting Date” for the RSUs that vest on that date. Any
fractional Shares that would otherwise vest as of a particular date will be rounded down and
carried forward to the next Vesting Date until a whole Share can be issued.
(b) In the event of a Change of Control (as defined below), notwithstanding anything herein to
the contrary, immediately prior to the closing of the Change of Control, 50% of the then
outstanding and unvested RSUs shall automatically vest and the date on which the closing of such
Change of Control occurs shall be a Vesting Date for purposes of this Agreement. Any then
outstanding and unvested RSUs (after giving effect to the foregoing sentence) shall continue to
vest as set forth in Section 2(a) above until 100% of the RSUs are vested, subject to the
continuation of your employment or other service providing relationship with the Company, or its
successor.
(c) If, following a Change of Control, your employment or other service providing relationship
with the Company is terminated by the Company, or its successor, without Cause (as defined below)
prior to the one year anniversary of the date on which the closing of such Change of Control
occurs, 100% of the then outstanding and unvested RSUs shall automatically vest and the effective
date of the termination of your employment or other service providing relationship shall be a
Vesting Date for purposes of this Agreement. Notwithstanding the foregoing, and solely to the
extent necessary to avoid the penalty provisions under Section 409A of the Internal Revenue Code of
1986, as amended (“Section 409A”), if the Vesting Date occurs because of your termination of
employment and if the Company determines that you are a “specified employee” as defined under
Section 409A, then the distribution of newly vested Shares shall be delayed until the earlier of
(i) the date that is six months plus one day after the date of termination and (ii) the 10th day
after your date of death.
(d) Absent any contrary provision in the Plan or any other applicable plan or agreement, if
you cease to be employed by, or engaged to provide services on an individual basis to, the Company
for any reason or no reason, you will immediately and automatically forfeit all rights to any of
your RSUs that have Vesting Dates after the date your employment or other service providing
relationship with the Company ends.
(e) For the purposes of this Agreement:
(i) “Change of Control” shall mean (i) the consolidation or merger of the Company with or into
any other corporation or other entity (other than a merger or consolidation in which all or
substantially all of the individuals and entities who were beneficial owners of the outstanding
securities entitled to vote generally in the election of directors of the Company immediately prior
to such transaction beneficially own, directly or indirectly, more than 50% of the outstanding
securities entitled to vote generally in the election of directors of the resulting, surviving or
acquiring corporation in such transaction), (ii) the sale of all or substantially all of the
properties and assets of the Company as an entirety to any other person, or (iii) the sale or
transfer, in a single transaction or series of related transactions, of outstanding capital stock
representing at least a majority of the voting power of the outstanding capital stock of the
Company immediately following such transaction; provided that if any portion of the RSUs is then
subject to Section 409A, any resulting distribution of the covered shares will be delayed to comply
with Section 409A unless the Change of Control is also a change in ownership or effective control
of the Company (within the meaning of Treasury Regulation Section 1.409A-3(g)(5) or any successor
regulation.
(ii) If you are party to an employment, consulting or severance agreement with the Company
that contains a definition of “cause” for termination of employment or other relationship, “Cause”
shall have the meaning ascribed to such term in such agreement. Otherwise, “Cause” shall mean
willful misconduct by you or your willful failure to perform your responsibilities to the Company
(including, without limitation, breach by you of any provision of any employment, consulting,
advisory, nondisclosure, non-competition or other similar agreement between you and the Company),
as determined by the Company, which determination shall be conclusive. You shall be considered to
have been discharged for “Cause” if the Company determines, within 30 days after your resignation,
that discharge for Cause was warranted.
3. Issuance of Shares.
Subject to the terms and conditions of this Agreement (including any Withholding Tax
obligations), after each Vesting Date, the Company will issue to you (or your estate, or an account
at a brokerage firm designated by the Company), within three (3) business days following such
Vesting Date, one Share for each RSU that vested on such Vesting Date. Until each applicable
Vesting Date, you will have no rights to any Shares, and until the Company delivers the Shares to
you, you will not have any rights associated with such Shares, including without limitation voting
rights, dividends or dividend equivalents.
4. Transferability.
The RSUs and Shares they represent may not be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of (whether by operation of law or otherwise) (collectively, a
“transfer”), except that this Agreement may be transferred by the laws of descent and distribution
or as otherwise permitted under the Plan. You may only transfer the Shares that may be issued
pursuant to this Agreement following a Vesting Date that covers them.
5. Withholding Taxes.
(a) You acknowledge that you have reviewed with your own tax advisors the federal, state,
local and foreign tax consequences of this investment and the actions contemplated by this
Agreement. You affirm that you are relying solely on such advisors and not on any statements or
representations of the Company or any of its agents.
(b) The Company’s obligation to deliver Shares to you upon or after the vesting of the RSUs
shall be subject to your satisfaction of all income tax (including federal, state and local taxes),
social insurance, payroll tax, payment on account or other tax related withholding requirements, as
determined by the Company (“Withholding Taxes”).
(c) You acknowledge and agree that the Company has the right to deduct from payments of any
kind otherwise due to you any Withholding Taxes to be withheld with respect to the actions
contemplated by this Agreement.
(d) Without limiting the generality of the foregoing Section 5(c), except as provided in the
next sentence, the Company shall withhold a number of Shares issuable in payment of any vested RSUs
having a Fair Market Value,
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as of the Vesting Date of such RSUs, equal to the Withholding Taxes with respect to such RSUs. If
the Company cannot (under applicable legal, regulatory, listing or other requirements, or
otherwise) satisfy such Withholding Taxes in such method, the Company may satisfy such Withholding
Taxes by any one or combination of the following methods: (i) by requiring you to pay such
Withholding Taxes in cash or by check; (ii) by deducting such Withholding Taxes out of any other
compensation otherwise payable to you by the Company; and/or (iii) by allowing you to surrender
shares of Common Stock which (x) in the case of shares initially acquired from the Company (upon
exercise of a stock option or otherwise), have been owned by you for such period (if any) as may be
required to avoid a charge to the Company’s earnings, and (y) have a Fair Market Value on the date
of surrender equal to such Withholding Taxes. The Company is hereby authorized to take such actions
as are necessary to effect the withholding of any and all such Withholding Taxes in accordance with
this Section 5(d). For purposes of this Section 5(d), the “Fair Market Value” of a Share as of any
date shall be equal to the last reported sale price of the Common Stock on the NASDAQ Stock Market
(or any other stock exchange or over-the-counter market on which the Company’s Common Stock is then
traded) on such date.
6. Securities Laws.
Notwithstanding any other provision of the Plan or this Agreement, the Company will not be
required to issue, and you may not sell, assign, transfer or otherwise dispose of, any shares of
Common Stock received as payment of the RSUs, unless (a) there is in effect with respect to the
shares of Common Stock received as payment of the RSUs a registration statement under the
Securities Act of 1933, as amended, and any applicable state or foreign securities laws or an
exemption from such registration, and (b) there has been obtained any other consent, approval or
permit from any other regulatory body that the Compensation Committee (the “Committee”) of the
Company’s Board of Directors, in its sole discretion, deems necessary or advisable. The Company may
condition such issuance, sale or transfer upon the receipt of any representations or agreements
from the parties involved, and the placement of any legends on certificates representing Common
Stock received as payment of the RSUs, as may be deemed necessary or advisable by the Company to
comply with such securities law or other restrictions.
7. Provisions of the Plan.
This Agreement is subject to the provisions of the Plan, a copy of which is furnished to you
with this Agreement. Any capitalized terms used in this Agreement but not otherwise defined in the
Agreement shall have the same meaning as in the Plan.
8. Miscellaneous.
(a) Section 409A. This Agreement is intended to comply with the requirements of
Section 409A and shall be construed consistently therewith. In any event, the Company makes no
representation or warranty and will have no liability to you or any other person, other than with
respect to payments made by the Company in violation of the provisions of this Agreement, if any
provisions of or payments under this Agreement are determined to constitute deferred compensation
subject to Section 409A but not to satisfy the conditions of that section.
(b) Unsecured Creditor. This Agreement shall create a contractual obligation on the
part of Company to make payment of the RSUs credited to your account at the time provided for in
this Agreement. Neither you nor any other party claiming an interest in the RSUs or related stock
hereunder shall have any interest whatsoever in any specific assets of the Company. Your right to
receive payments hereunder shall be that of an unsecured general creditor of Company.
(c) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.
(d) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company or the Committee.
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(e) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and you and its and your respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 4 of this Agreement.
(f) Notice. Except as provided in Section 8(i), all notices required or permitted
hereunder shall be in writing or provided and deemed effectively given upon personal delivery or
five calendar days after deposit in the United States Post Office, by registered or certified mail,
postage prepaid, addressed to the other party hereto at, for the Company, its primary business
address (attention: Chief Human Resources Officer / General Counsel) and, for you, at your home
address as reflected in the records of the Company, or at such other address or addresses as either
party shall designate to the other in accordance with this Section 8(f).
(g) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersede all prior agreements and understandings, relating to the subject
matter of this Agreement.
(h) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the State of Delaware without regard to any applicable
conflicts of laws.
(i) Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to participation in the Plan or awards granted under the Plan by electronic
means or to request your consent to participate in the Plan by electronic means or allow you to
provide notices by electronic means. You hereby consent to receive such documents by electronic
delivery and, if requested, you agree to participate in the Plan through an on-line or electronic
system established and maintained by the Company or another third party designated by the Company.
(j) Your Acknowledgments. You acknowledge that you: (i) have read this Agreement; (ii)
have been represented in the preparation, negotiation and execution of this Agreement by legal
counsel of your own choice or have voluntarily declined to seek such counsel; (iii) understand the
terms and consequences of this Agreement; and (iv) are fully aware of the legal and binding effect
of this Agreement.
[Signatures on Page Following]
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IN WITNESS WHEREOF, the Company has caused this grant to be executed under its corporate seal
by its duly authorized officer. This option shall take effect as a sealed instrument.
| CONSTANT CONTACT, INC. | ||||||||||||
| By: | ||||||||||||
| Name: | ||||||||||||
| Title: | ||||||||||||
Dated: |
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PARTICIPANT’S ACCEPTANCE
By signing below (or by accepting the foregoing grant through such other means as may be
established by the Company or its third-party administrator from time to time), I hereby accept the
foregoing grant and agree to the terms and conditions thereof and acknowledge receipt of a copy of
the Plan.
| PARTICIPANT: | ||||||||||
| Address: | ||||||||||
Dated: |
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