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Exhibit 10.1
MONOTYPE IMAGING HOLDINGS
INC.
2008 Executive Incentive
Compensation Program
I. Overview
The compensation philosophy of
Monotype Imaging is to pay competitive base salaries and to provide
the potential to significantly overachieve market average
compensation through incentive compensation if performance of both
the organization and the individual exceed expectations. Base
compensation and total compensation targets are set based on area
market survey data.
II. Incentive Compensation
Goals
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Provide significant compensation
to Executives to exceed annual EBITDA targets.
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Provide incentive to Executives
to achieve individual goals that have a direct relationship to
Monotype Imaging’s organizational success.
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Motivate exceptional performance
at all organizational levels
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Pay for performance. No
guarantees of bonus if performance does not warrant.
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Significant differentiation in
bonus payments between less than expected performance and
exceptional performance.
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III. Eligibility
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Employees who, for purposes of
compensation, are classified by the President and Chief Executive
Officer or the Compensation Committee as “Executives”
for FY 2008, unless the Compensation Committee determines that any
such Executive shall be eligible for incentive compensation under
an alternative Company plan.
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Executives hired after
January 1, 2008 will be prorated based on date of
hire.
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An Executive must be employed by
the Company on December 31, 2008 to be eligible to receive any
incentive compensation payment under this plan.
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IV. Total Incentive Compensation Pool
The total incentive compensation
pool available to Executives under this plan is based on the
Company’s achievement of specific EBITDA targets established
by the Board of Directors for 2008. At each pre-determined EBITDA
percentage achievement, an incentive compensation pool is
established as follows:
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90 – 99.99% of EBITDA
target = $450,000
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100 – 104.99% of EBITDA
target = $900,000
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105% of EBITDA target =
$1,200,000
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105.1% of EBITDA target and
higher = $1,200,000 plus 18% of each increment
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