Document:

(July
2010)

    

    YTB
International, Inc.

    Fiscal
2010

     

    
      	
              Incentive
Plan

            

    

    

    
      	
              Objective:

            	
              YTB
      International, Inc. (the “Company”) has
      established this Incentive Plan to provide additional compensation to the
      Executive for achieving specific goals and/or targets by the end of a
      fiscal year.

            

    

    

    
      	
              Award:

            	
              The
      Incentive Plan will pay out up to a percentage of base pay at the start of
      each incentive period for achieving budget.  Excluded from the
      calculation are car allowances, club dues, pension contributions or other
      forms of compensation received.  The award can reach 150% of the
      target for achieving beyond budget.

            

    

    

    
      Calculation

    

    
      	
              Of
      Award:

            	
              Each
      objective outlined in the Incentive Plan will be assigned a points
      allocation.  All objectives should be quantifiable and not
      subjective.  The actual performance of the Company will be
      compared to the objectives and a percent of completion will be
      calculated.  The total percent completed based on a 100% total
      will be multiplied by the award level and then multiplied by the base pay
      to determine the total award.

            

    

    

    
      Discretionary

    

    
      	
              Objectives:

            	
              The
      Executive will complete a list of discretionary objectives representing
      specific tasks to be accomplished during the year.  These
      objectives should address specific problem areas to be corrected or
      performance enhancement issues that can be quantified and
      measured.  Normal job duties should be excluded since those are
      expected to be completed as compensation for base
  pay.

            

    

    

    
      	
              Payout:

            	
              The
      incentive award should be paid no later than March 15th
      following the close of a fiscal year end of December 31st.
      The total award cannot exceed 25% of the free cash flow of the Company for
      the year. The payout may be made on a monthly basis if adequate credit
      lines are not available to make a lump sum
  distribution.

            

    

    

    Achievement

    
      	
              Categories:

            	
               The
      achievement will be measured against the following
    criteria:

            

    

    

    
      ·    
Growth in
Business
Owners                               
        25%

    

    
      ·     Free Cash
Flow                                                
           25%

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    
 

    (July
2010)

    

    
      ·     Earnings
Before Interest, Taxes,
Depreciation,         25%

    

    Amortization, Discontinued Operations
and

    Excluding Impairment
Charges

    
      ·     Discretionary
Objectives                                           
25%

    

     

    
      Eligible

    

    
      	
              Participants:

            	
              The
      eligible participants will be awarded compensation based on the following
      percent of annual base salary:

            

    

    

    
      ·      Directors                                      
12.5% to
18.75%

    

    
      ·      Vice
Presidents                     
       25.0% to
37.5%

    

    
      ·      Executive
Officers**             
      50.0% to
75.0%

    

    

    **
Executive Officers’ awarded compensation will be reduced by
commissions/overrides earned during the fiscal year.

     

    The
participant can earn up to 150% of the target award if actual performance
exceeds the goals and objectives for the year by 150%.  The
Discretionary target of the award will track with the weighted average of the
Free Cash Flow target and the Pre-tax Operating Income target.

     

    
      Company

    

    
      	
              Discretion:

            	
              This
      plan is a voluntary plan on behalf of the Company and may be modified or
      cancelled on an annual basis if the performance of the Company does not
      warrant such a plan.Unassociated Document

 

    YTB
International, Inc.

    

    
      	
              Severance Compensation
    Program

            

    

    
 

    YTB
International, Inc.’s (“YTB”) Board of
Directors (“the
Board”) has adopted this severance compensation program (the “Program”) under which
specified officers of YTB would receive compensation if their employment with
YTB were terminated, under circumstances set forth in the Program, within one
year after (or in some cases before) control of YTB changed hands or for
termination without cause. The term of this arrangement will be for a period of
two (2) years with the option of the Board to renew for subsequent two (2) year
intervals.

    

    The
beneficiaries of the Program would be designated by the Compensation Committee
and approved by the Board.  The initial beneficiaries of the Program
are included as Attachment A hereto.  The Board would be entitled to
add other officers (including officers of a subsidiary) to the beneficiary group
at a future date, but has no present plans to do so.

    

    The
Program would provide lump-sum payments to the beneficiaries following certain
terminations of their employment within one year after a change of control of
YTB including terminations by YTB for any reason other than cause and
terminations by the beneficiary if the beneficiary had good reason to leave
YTB.  Payments would also be made to any beneficiary whose employment
similarly terminated, but before the change of control, if the termination
occurred after commencement of discussions between YTB and a third party that
ultimately resulted in a change of control.  However, in that case,
the beneficiary would receive the payment only if his termination (or the “good
reason” giving rise to his termination) took place at the insistence or upon the
suggestion of the third party.

    

    For
purposes of the Program, “cause” is defined as acts which are materially
detrimental to the best interests of YTB and which constitute common law fraud,
a felony or other gross malfeasance.  “Cause” also includes the
beneficiary’s permanent disability.  “Good reason” is a reduction,
without the beneficiary’s consent, of the beneficiary’s duties, responsibilities
or base salary, or his relocation by more than 50 miles, as compared to his
duties, responsibilities, base salary or location of employment immediately
before the change of control (or immediately before commencement of the
change-of-control discussions in the case of termination of employment before
the change of control).  Accordingly, a beneficiary under no
circumstances would receive any payment under the Program if he left YTB without
good reason or was terminated for cause.
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    For
purposes of the Program, “change of control” is defined as an acquisition of 50%
or more YTB’s outstanding voting securities by any person or entity (or group of
persons or entities acting together); a merger or consolidation in which YTB
does not survive as a publicly-held company or YTB’s shareholders immediately
before the merger or consolidation hold less than 50% of the outstanding voting
securities of the surviving corporation immediately after the merger or
consolidation; or a sale of 50% or more of YTB’s assets (as measured by
consolidated book value) except to an entity in which YTB then holds at least
50% of the equity interests.  Only the consummation of such a
transaction would constitute a change of control.  An attempt to
effect such a transaction (for example, a failed or terminated tender offer)
would not be a change of control.

    

    Benefits
under the Program would consist of a lump-sum cash payment equal to the
beneficiary’s annual base salary rate (excluding all other compensation such as
bonuses and fringe benefits) in effect immediately before the change of control
(or commencement of the change-of-control discussions in the case of termination
of employment before a change of control).  This payment would be in
lieu of other severance benefits to which the beneficiary otherwise might be
entitled.  The beneficiary would also be paid a pro-rated payment of
any earned bonus to the date of the change of control and would be permitted to
exercise all stock options outstanding with the options immediately
vested.
 

    
      
         

      

      
        2

        
          

        

      

      
         

      

    
 

    Attachment
A

    

    YTB
International, Inc.

    

    Severance Compensation
Program

    
 

    Beneficiaries
as of July 19, 2010 as approved by the Board of Directors:

    
 

    
      
        	
                Lloyd
      Tomer

              	
                2
      years

              
	 
      	 
      
	
                Scott
      Tomer

              	
                2
      years

              
	 
      	 
      
	
                J.
      Kim Sorensen

              	
                2
      years

              
	 
      	 
      
	
                R.
      M. Van Patten

              	
                1
      year

              

      

    
 

    
      
         

      

      
        3TERMINATION
OF EMPLOYMENT AGREEMENT

    

    This
agreement terminates the Employment Agreement dated January 1, 2008 between J.
Kim Sorensen and YTB International, Inc. (the “Company”) in
consideration for participation in the Company’s 2010 Incentive Plan and
Severance Compensation Program.

     

    Agreed
to:

     

    
      
        
          
            
              	
                      /s/ J. Kim Sorensen

                    	 	
                      Date:  7/19/2010

                    
	
                      J.
      Kim Sorensen

                    	 	 
      
	 
      	 	 
      
	
                      /s/ Robert M. Van Patten

                    	 	
                      Date:  7/19/2010

                    
	
                      Robert
      M. Van Patten - CEO

                    	 	 
      
	
                      YTB
      International, Inc.

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