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Exhibit 10.1
MONOTYPE IMAGING HOLDINGS
INC.
2009 Executive Incentive Compensation
Program
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.
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II.
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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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Employees who, for purposes of
compensation, are classified by the President and Chief Executive
Officer or the Compensation Committee as “Executives”
for FY 2009, 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, 2009 will be prorated based on date of
hire.
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An Executive must be employed by
the Company on December 31, 2009 to be eligible to receive any
incentive compensation payment under this plan.
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IV.
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Total
Incentive Compensation Pool
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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 2009. At each pre-determined EBITDA
percentage achievement, beginning at 90% of achievement of targeted
EBITDA, an incentive compensation pool is established and will be
paid on a sliding scale up to a maximum of 110% of targeted EBITDA.
At achievement of 90% of EBITDA, the incentive compensation pool is
$316,250 and will increase to a maximum of $1,475,000 at
achievement of 110% of targeted EBITDA.
Calculation of the
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