Tucows 2015 Annual Report Download - page 139

The table below summarizes the 2015 incentive bonus opportunities for our NEOs.
Named Officer Target incentive Bonus Opportunity Basis for Target incentive Bonus
Elliot Noss $148,016 100% Corporate adjusted EBITDA
Michael Cooperman $97,516 100% Corporate adjusted EBITDA
David Woroch $101,870 100% Wholesale Domain Services targets
Kenneth Schafer $48,575 100% Corporate adjusted EBITDA
Michael Goldstein $25,530 25% Corporate adjusted EBITDA, 75% Ting
specific objectives
(1) All dollar amounts below are shown in U.S. dollars. Amounts that were payable in Canadian dollars during the
2015 fiscal year have been converted into U.S. dollars based upon the exchange rate of 1.2794 Canadian dollars
for each U.S. dollar, which represents the average Bank of Canada exchange rate for 2015.
(2) Adjusted EBITDA is one of the primary measures we use for planning and budgeting purposes, incentive
compensation and to monitor and evaluate our financial and operating results. Adjusted EBITDA is not a
measurement of financial performance under United States generally accepted accounting principles (“GAAP")
and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or
an alternative to net income as indicators of operating performance or any other measures of performance derived
in accordance with GAAP. Adjusted EBITDA excludes depreciation, amortization of intangibles, income tax
provision, interest expense, interest income, stock-based compensation, asset impairment, net deferred revenue,
which comprises the change in deferred revenue, net of prepaid domain name registry and other Internet services
fees, to reflect the material amount of cash we collect and pay for domain registrations and other Internet services
at the time of activation, losses from foreign currency transactions and infrequently occurring items. Losses from
foreign currency transactions, which removes the effect of our foreign exchange contracts, comprise the realized
gains/losses from all foreign currency contracts, both hedged and unhedged; the unrealized effect of the change in
the mark-to-market values on outstanding unhedged foreign currency contracts, as well as the unrealized effect
from the translation of monetary accounts denominated in non-U.S. dollars to U.S. dollars. Adjusted EBITDA is a
non-GAAP measure. See the reconciliation table in Key Business Metrics – Adjusted EBITDA.
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