Travelzoo 2010 Annual Report Download - page 19

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Discretionary Bonus for the first and second quarters of 2010 as his employment terminated on May 14, 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
The quarterly targets for worldwide revenue, worldwide operating income and worldwide subscribers were
met for the first quarter of 2010. Mr. Rayner received Performance Bonuses totaling $60,000 for 2010. For the first
and second quarters of 2010 Mr. Rayner 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. Rayner was also eligible to receive a quarterly Discretionary Bonus of up to $50,000 per quarter. The
Discretionary Bonus was to be determined by the Chief Executive Officer in his sole and absolute discretion. In
exercising such discretion, the Chief Executive Officer took into consideration Mr. Rayner’s individual
performance. In evaluating Mr. Rayner’s individual performance during 2010, the Chief Executive Officer
considered factors such as the quality of the Company’s product development and the quality and speed at
which the Company, under Mr. Rayner’s leadership, adapted to important new technology developments.
Mr. Rayner did not receive Discretionary Bonuses for 2010.
Pursuant to the terms of Ms. Tafoya’s employment agreement dated August 4, 2010 and effective July 1, 2010,
Ms. Tafoya is eligible to receive a quarterly Performance Bonus and a quarterly Discretionary Bonus. Ms. Tafoya
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
North America 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 North America consolidated revenue for the quarter ..................... $30,000
North America operating income target for the quarter met ................... $30,000
North America subscriber target for the quarter met ......................... $30,000
Total maximum Performance Bonus per quarter ............................ $90,000
The quarterly target for North America revenue was met for the third quarter of 2010. The quarterly targets for
North America operating income were met for the third and fourth quarters of 2010. The quarterly targets for North
America subscribers were met for the third and fourth quarters of 2010. Ms. Tafoya received Performance Bonuses
totaling $150,000 for the third and fourth quarters of 2010. For the third and fourth quarters of 2010 Ms. Tafoya
received 83% of the maximum Performance Bonus. The Company believes that targets set for North America
revenue, North America operating income and North America 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.
Ms. Tafoya is also eligible to receive a quarterly Discretionary Bonus of up to $30,000 per quarter. The
Discretionary Bonus is to be determined by the Chief Executive Officer in his sole and absolute discretion.
Ms. Tafoya was eligible to receive quarterly Discretionary Bonuses for the third and fourth quarters of 2010. In
exercising such discretion, the Chief Executive Officer will take into consideration Ms. Tafoya’s individual
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