Travelzoo 2010 Annual Report Download - page 17

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second quarters of 2010, the Chairman of the Company considered factors such as the quality of Mr. Loughlin’s
strategic management to ensure the long-term success of the Company’s business in Europe, the development of the
Company’s talent in Europe, the quality of the content of the Company’s publications in Europe, and the
development of the Travelzoo brand in Europe. For the first and second quarters of 2010, Mr. Loughlin
received $34,747 and $285,165 pursuant to the quarterly and annual bonus plans, respectively, set forth in his
employment agreement.
Pursuant to the terms of Mr. Loughlin’s current employment agreement dated November 18, 2009 and
effective July 1, 2010, Mr. Loughlin is eligible to receive a quarterly Performance Bonus and a quarterly
Discretionary Bonus. Mr. Loughlin was eligible to receive a quarterly Performance Bonus and a quarterly
Discretionary bonus for the third and fourth quarters of 2010. The quarterly Performance Bonus is calculated
as follows:
Criteria
Quarterly Bonus
Payment
Worldwide revenue target for the quarter met AND there are no more than two
Significant Customers AND no Significant Customer accounts for 17% or more
of Worldwide consolidated revenue for the quarter ........................ $20,000
Worldwide operating income target for the quarter met ...................... $20,000
Worldwide subscriber target for the quarter met ............................ $20,000
Total maximum Performance Bonus per quarter ............................ $60,000
The quarterly target for worldwide operating income was met for the third quarter of 2010. The quarterly
targets for worldwide subscribers were met for the third and fourth quarters of 2010. Mr. Loughlin received
Performance Bonuses totaling $60,000 for the third and fourth quarters of 2010. For the third and fourth quarters of
2010 Mr. Loughlin received 50% of the maximum Performance Bonus. The Company believes that targets set for
worldwide revenue, worldwide operating income and worldwide subscribers align with the Company’s desire to
continue to grow the business. Since the individual targets are intended to be challenging, and since the separate
targets related to different aspects of the Company’s performance, it is expected it will be difficult for all the targets
to be achieved for any given year.
Mr. Loughlin is also eligible to receive a quarterly Discretionary Bonus of up to $20,000 per quarter. The
Discretionary Bonus is to be determined by the Board of Directors at its sole and absolute discretion. Mr. Loughlin
was eligible to receive quarterly Discretionary Bonuses for the third and fourth quarters of 2010. In exercising such
discretion, the Board of Directors will take into consideration Mr. Loughlin’s individual performance. In evaluating
Mr. Loughlin’s individual performance during third and fourth quarters of 2010, the Board of Directors considered
factors such as the quality of Mr. Loughlin’s strategic management to ensure the long-term success of the Company,
the development of the Company’s leadership talent, the quality of the content of the Company’s publications, and
the development of the Travelzoo brand. Mr. Loughlin received Discretionary Bonuses totaling $20,000 for the
third and fourth quarters of 2010.
Pursuant to the terms of Mr. Holger Bartel’s employment agreement dated September 17, 2008 and effective
October 1, 2008, Mr. Bartel was eligible to receive a quarterly Performance Bonus and a quarterly Discretionary
Bonus for the first and second quarters of 2010 as his employment terminated on June 30, 2010. The quarterly
Performance Bonus was calculated as follows:
Criteria
Quarterly Bonus
Payment
Worldwide revenue target for the quarter met AND there are no more than two
Significant Customers AND no Significant Customer accounts for 17% or more
of Worldwide consolidated revenue for the quarter ........................ $20,000
Worldwide operating income target for the quarter met ...................... $20,000
Worldwide subscriber target for the quarter met ............................ $20,000
Total maximum Performance Bonus per quarter ............................ $60,000
14