Document:

Exhibit (10)(ii)

 Exhibit (10)(ii) 

Rev. 8/11 

UNLESS THIS SUBORDINATED NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE BANK OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SUBORDINATED NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 IF THIS SUBORDINATED NOTE IS ISSUED WITH “ORIGINAL
ISSUE DISCOUNT” FOR PURPOSES OF SECTION 1273 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE FOLLOWING SHALL BE COMPLETED: THE FOLLOWING INFORMATION IS PROVIDED SOLELY FOR PURPOSES OF APPLYING SECTIONS 1272, 1273 AND 1275 OF THE UNITED
STATES INTERNAL REVENUE CODE OF 1986, AS AMENDED, TO THIS SUBORDINATED NOTE. THE ISSUE DATE OF THIS SUBORDINATED NOTE IS             . THE ISSUE PRICE OF THIS SUBORDINATED NOTE IS
            % OF ITS PRINCIPAL AMOUNT. THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THIS SUBORDINATED NOTE IS $             PER
$1,000 OF THE INITIAL PRINCIPAL AMOUNT, THE YIELD TO MATURITY IS             %, AND THE AMOUNT OF THE ORIGINAL ISSUE DISCOUNT ALLOCABLE TO THE INITIAL SHORT ACCRUAL PERIOD, IF ANY, IS
$             PER $1,000 OF THE INITIAL PRINCIPAL AMOUNT, DETERMINED ON THE BASIS OF THE EXACT METHOD. 
  

			
	 No. SUB FLR
-                    
	 	REGISTERED
	 CUSIP
NO.:                    
	 	

 THE NORTHERN TRUST COMPANY 
 GLOBAL SUBORDINATED BANK NOTE 
 (Floating Rate) 

 

			
	 ORIGINAL ISSUE
DATE:                    
	 	PRINCIPAL AMOUNT:                    
		
	 INITIAL BASE RATE:
                     %
	 	MATURITY DATE:                    
	 INTEREST RATE
BASIS:                    
	 	INDEX MATURITY:                    
	 SPREAD AND/OR SPREAD
MULTIPLIER:                    
	 	 REGULAR RECORD DATES (If other
 than the 15th day prior to each Interest Payment Date):                    

			
	 MAXIMUM INTEREST RATE:
                     %
	 	MINIMUM INTEREST RATE:                      %
	 INTEREST PAYMENT
DATES:                    
	 	INTEREST PAYMENT PERIOD:                    
	 INTEREST RESET
DATES:                    
	 	INTEREST RESET PERIOD:                    
	 INITIAL REDEMPTION
DATE:                    
  

INITIAL REDEMPTION PERCENTAGE:
                     %
  

ORIGINAL ISSUE DISCOUNT NOTE:
  

                Yes:  
           No:            
 OTHER PROVISIONS:
	 	 ANNUAL REDEMPTION
 PERCENTAGE
REDUCTION:                     
  

OID AMOUNT:                    

 
 CALCULATION
AGENT:                    
  

ALTERNATE RATE EVENT
SPREAD:                    

 The Northern Trust Company, an Illinois banking corporation (the “Bank”), for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal amount specified on the face hereof in United States Dollars on the Maturity Date specified above and to pay interest thereon from the Original Issue Date specified
above or from the most recent interest payment date (or, if the Interest Reset Period specified above is daily or weekly, from, and including, the day following the most recent Regular Record Date) to which interest on this Subordinated Note (or any
predecessor Subordinated Note) has been paid or made available for payment (each, an “Interest Payment Date”), on the Interest Payment Dates specified above and at maturity or upon earlier redemption, if applicable, commencing on the first
Interest Payment Date next succeeding the Original Issue Date (or, if the Original Issue Date is between a Regular Record Date and the Interest Payment Date immediately following such Regular Record Date, on the second Interest Payment Date
following the Original Issue Date), at a rate per annum equal to the Initial Base Rate specified above, as adjusted by the addition or subtraction of the Spread, if any, specified above and/or by the multiplication by the Spread Multiplier, if any,
specified above, until the first Interest Reset Date following the Original Issue Date and, on and after such Interest Reset Date, at the rate determined in accordance with the provisions set forth herein, until the principal hereof is paid or made
available for payment, and (to the extent that the payment of such interest shall be legally enforceable) at the last rate in effect prior to any payment default on any overdue principal and premium, if any, and on any overdue installment of
interest. The interest so payable, and punctually paid or made available for payment, on any Interest Payment Date will be paid to the person in whose name this Subordinated Note (or any predecessor Subordinated Note) is registered at the close of
business on the Regular Record Date for such interest, which shall be the 15th calendar day (whether or not a Business Day (as defined below)) before such Interest Payment Date (unless otherwise 

specified on the face hereof); provided, however, that interest payable at maturity or upon earlier redemption, if applicable, will be payable to the
person to whom principal shall be payable. 

 Payment of principal of, and premium, if any, and interest on, this Subordinated Note will
be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. The Bank will at all times appoint and maintain a paying agent (the “Paying Agent”)
authorized by the Bank to pay the principal of, and premium, if any, and interest on, this Subordinated Note on behalf of the Bank and having an office or agency (the “Paying Agent Office”) in The City of New York or the City of Chicago,
Illinois (the “Place of Payment”), where this Subordinated Note may be presented or surrendered for payment and where notices, designations or requests in respect of payments with respect to this Subordinated Note may be served. The Bank
has initially appointed itself as such Paying Agent, with the Paying Agent Office currently located at 50 South LaSalle Street (Level BB-A), Chicago, Illinois 60675, Attention: Securities Services. 

THIS SUBORDINATED NOTE IS A DIRECT, UNCONDITIONAL AND UNSECURED GENERAL OBLIGATION OF THE BANK. THIS SUBORDINATED NOTE IS NOT INSURED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION, IS NOT A DEPOSIT OF, OR GUARANTEED BY, THE BANK, AND IS SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. THIS SUBORDINATED NOTE IS SUBORDINATE TO THE CLAIMS OF
DEPOSITORS AND GENERAL CREDITORS OF THE BANK. 
 Payment of the principal of, and premium, if any, and interest on, this
Subordinated Note due at maturity or upon earlier redemption, if applicable, will be made in immediately available funds upon presentation and surrender of this Subordinated Note to the Paying Agent at the Paying Agent Office in the Place of
Payment; provided that this Subordinated Note is presented to the Paying Agent in time for the Paying Agent to make such payment in accordance with its normal procedures. Payments of interest on this Subordinated Note (other than at maturity or upon
earlier redemption) will be made by wire transfer to such account as has been appropriately designated to the Paying Agent by the person entitled to such payments. 
 This Subordinated Note is one of a duly authorized issue of Subordinated Bank Notes due from five to fifteen years from date of issue of the Bank (herein called the “Subordinated Notes”).

 Unless otherwise indicated on the face hereof, if the rate of interest on this Subordinated Note resets daily, weekly or
monthly, the Interest Payment Date for this Subordinated Note will be the third Wednesday of each month or the third Wednesday of March, June, September and December of each year; if the rate of interest on this Subordinated Note resets quarterly,
the Interest Payment Date for this Subordinated Note will be the third Wednesday of March, June, September and December of each year; if the rate of interest on this 

 
Subordinated Note resets semi-annually, the Interest Payment Date for this Subordinated Note will be the third Wednesday of each of two months of each year specified on the face hereof that are
six months apart; and if the rate of interest on this Subordinated Note resets annually, the Interest Payment Date for this Subordinated Note will be the third Wednesday of the month specified on the face hereof. If any Interest Payment Date (unless
it is also the Maturity Date) for this Subordinated Note falls on a day that is not a Business Day, such Interest Payment Date will be postponed to the next succeeding Business Day; provided, however, that, if the Interest Rate Basis specified on
the face hereof is LIBOR and such next succeeding Business Day is in the next succeeding calendar month, such Interest Payment Date (unless it is also the Maturity Date) will be the immediately preceding Business Day. If any Maturity Date or date of
earlier redemption or repayment of this Subordinated Note falls on a day that is not a Business Day, the related payment of interest shall be made on the next succeeding Business Day with the same force and effect as if made on the date such payment
were due, and no interest shall accrue on the amount so payable for the period from and after such Maturity Date or date of earlier redemption or repayment. “Business Day” means any day other than a Saturday, Sunday or a day on which
banking institutions in The City of New York or the City of Chicago, Illinois generally are authorized or obligated by law or executive order to close, and with respect to Subordinated Notes with respect to which the Interest Rate Basis specified on
the face hereof is LIBOR, any day on which dealings in U.S. dollars are transacted in the London interbank market (a “London Business Day”). 
 The indebtedness of the Bank evidenced by this Subordinated Note, including principal and interest, is unsecured and subordinate and junior in right of payment to the Bank’s obligations to its
depositors, its obligations under bankers’ acceptances and letters of credit, and its obligations to its other creditors (including any obligations to any Federal Reserve Bank and the Federal Deposit Insurance Corporation), whether now
outstanding or hereafter incurred, other than any obligations which rank on a parity with, or junior to, the Subordinated Notes. In the event of any insolvency proceeding, receivership, conservatorship, reorganization, readjustment of debt,
marshalling of assets and liabilities or similar proceedings or any liquidation or winding-up of the Bank, whether voluntary or involuntary, all such obligations (except obligations which rank on a parity with, or junior to, the Subordinated Notes)
shall be entitled to be paid in full before any payment shall be made on account of the principal of, or interest on, the Subordinated Notes. In the event of any such proceeding, after payment in full of all sums owing with respect to such prior
obligations, the holders of the Subordinated Notes, together with the holders of any obligations of the Bank ranking on a parity with the Subordinated Notes, shall be entitled to be paid, from the remaining assets of the Bank, the unpaid principal
of, and the unpaid interest on, the Subordinated Notes or such other obligations before any payment or other distribution, whether in cash, property, or otherwise, shall be made on account of any capital stock or any obligations of the Bank ranking
junior to the Subordinated Notes. 
 The Subordinated Notes shall rank on a parity with (i) the $700,000,000 aggregate
principal amount of subordinated indebtedness represented by $200,000,000 aggregate principal amount of 4.60% Subordinated Notes due 2013, $200,000,000 aggregate principal amount of 5.85% Subordinated Notes due 2017, and $300,000,000 aggregate
principal amount of 6.50% 

 
Subordinated Notes due 2018, (ii) the £150,000,000 aggregate principal amount of 5.375% Subordinated Notes due 2015 that were issued in 2005, (iii) the $200,000,000 aggregate
principal amount of floating rate subordinated notes due 2017 issued in 2007 to Northern Trust Corporation, (iv) the $750,000,000 aggregate principal amount of fixed rate senior notes due 2016 issued in 2011 to the Northern Trust Corporation,
and (v) such other obligations which may be issued by the Bank which are specifically designated as ranking on a parity with the Subordinated Notes by express provision in the instruments creating or evidencing such obligations. 

This Subordinated Note will not be subject to any sinking fund. If so provided on the face of this Subordinated Note and subject to the
approval of the Federal Reserve Bank of Chicago, this Subordinated Note may be redeemed by the Bank on and after the Initial Redemption Date, if any, specified on the face hereof. If no Initial Redemption Date is specified on the face hereof, this
Subordinated Note may not be redeemed prior to the Maturity Date. On and after the Initial Redemption Date, if any, and subject to the approval of the Federal Reserve Bank of Chicago, this Subordinated Note may be redeemed at any time either in
whole or in part from time to time in increments of $1,000 (provided that any remaining principal amount hereof shall be at least $250,000) at the option of the Bank at the applicable Redemption Price (as defined below), together with accrued and
unpaid interest hereon at the applicable rate borne by this Subordinated Note to the date of redemption (each such date, a “Redemption Date”), on written notice given not more than 60 nor less than 30 calendar days prior to the Redemption
Date by the Bank to the registered holder hereof. Whenever less than all the Subordinated Notes at any time outstanding are to be redeemed, the terms of the Subordinated Notes to be so redeemed shall be selected by the Bank. If less than all the
Subordinated Notes with identical terms at any time outstanding are to be redeemed, the Subordinated Notes to be so redeemed shall be selected by the Paying Agent by lot or in any usual manner approved by it. In the event of redemption of this
Subordinated Note in part only, a new Subordinated Note for the unredeemed portion hereof shall be issued in the name of the holder hereof upon the surrender hereof. 
 The “Redemption Price” shall initially be the Initial Redemption Percentage specified on the face hereof of the principal amount of this Subordinated Note to be redeemed and shall decline at
each anniversary of the Initial Redemption Date specified on the face hereof by the Annual Redemption Percentage Reduction, if any, specified on the face hereof, of the principal amount to be redeemed until the Redemption Price is 100% of such
principal amount. 
 This Subordinated Note will not be repayable at the option of the holder hereof prior to maturity.

 The rate of interest on this Subordinated Note will be reset daily, weekly, monthly, quarterly, semi-annually or annually
(each such period, an “Interest Reset Period” for this Subordinated Note, and the first calendar day of an Interest Reset Period, an “Interest Reset Date”), as specified on the face hereof. Unless otherwise indicated on the face
hereof, if this Subordinated Note resets daily, the Interest Reset Date will be each Business Day; if this 

 
Subordinated Note resets weekly and the Interest Rate Basis is not the Treasury Rate, the Interest Reset Date will be the Wednesday of each week; if this Subordinated Note resets weekly and the
Interest Rate Basis is the Treasury Rate, the Interest Reset Date will be the Tuesday of each week (except as provided below); if this Subordinated Note resets monthly, the Interest Reset Date will be the third Wednesday of each month; if this
Subordinated Note resets quarterly, the Interest Reset Date will be the third Wednesday of March, June, September and December; if this Subordinated Note resets semi-annually, the Interest Reset Date will be the third Wednesday of each of two months
of each year which are six months apart, as specified on the face hereof; and if this Subordinated Note resets annually, the Interest Reset Date will be the third Wednesday of one month of each year, as specified on the face hereof; provided,
however, that the base rate in effect from the Original Issue Date to the first Interest Reset Date will be the Initial Base Rate specified on the face hereof. If any Interest Reset Date with respect to this Subordinated Note would otherwise be a
day that is not a Business Day, such Interest Reset Date will be the next succeeding Business Day, except that in the case that the Interest Rate Basis specified on the face hereof is LIBOR, if such Business Day is in the next succeeding calendar
month, such Interest Reset Date will be the immediately preceding Business Day. 
 All calculations relating to this
Subordinated Note will be made by the “Calculation Agent.” The Bank will serve as Calculation Agent for this Subordinated Note as of its Original Issue Date, unless otherwise specified on the face hereof. The Bank may appoint a different
institution to serve as Calculation Agent from time to time after the Original Issue Date of this Subordinated Note without the consent of the holder and without notice. 
 The Calculation Agent will determine the interest rate that takes effect on an Interest Reset Date by reference to the Interest Determination Date. Unless otherwise specified on the face hereof,
(i) if the Interest Rate Basis is not LIBOR or the Treasury Rate, the Interest Determination Date will be the second Business Day before the Interest Reset Date; (ii) if the Interest Rate Basis is LIBOR, the Interest Determination Date
will be the second London Business Day (as defined below) preceding the Interest Reset Date; and (iii) if the Interest Rate Basis is the Treasury Rate, the Interest Determination Date will be the day of the week in which the Interest Reset Date
falls on which treasury bills — i.e., direct obligations of the U.S. government — would normally be auctioned. Treasury bills are usually sold at auction on the Monday of each week, unless that day is a legal holiday, in which case the
auction is usually held on the following Tuesday but may be held on the preceding Friday. If as the result of a legal holiday an auction is held on the preceding Friday, that Friday will be the Treasury Interest Determination Date relating to the
Interest Reset Date occurring in the next succeeding week. If the auction is held on a day that would otherwise be an Interest Reset Date, then the Interest Reset Date will instead be the first Business Day following the auction date. 

Unless the Interest Rate is LIBOR, the Calculation Agent will calculate the interest rate that takes effect on a particular Interest
Reset Date no later than the corresponding Interest Calculation Date. The Interest Calculation Date will be the earlier of (i) the tenth calendar day after the Interest Determination Date or, if that tenth calendar day is not a Business Day,
the next succeeding Business Day, and (ii) the Business Day immediately preceding the 

 
Interest Payment Date or the Maturity Date on which the next payment of interest will be due. The Calculation Agent need not wait until the relevant Interest Calculation Date to determine the
interest rate if the rate information it needs to make the determination is available from the relevant sources sooner. 
 For
each Interest Reset Period, the Calculation Agent will calculate the amount of accrued interest by multiplying the face amount of this Subordinated Note by an accrued interest factor for the Interest Reset Period. This factor will equal the sum of
the interest factors calculated for each day during the Interest Reset Period. The interest factor for each day will be expressed as a decimal and will be calculated by dividing the interest rate (also expressed as a decimal) applicable to that day
(i) by 360, if the Interest Rate Basis is the Commercial Paper Rate, the Prime Rate, LIBOR, the CD Rate or the Federal Funds Rate, or (ii) by the actual number of days in the year, if the Interest Rate Basis is the Treasury Rate or the CMT
Rate. 
 Upon the request of the holder of this Subordinated Note, the Calculation Agent will provide such holder with the
interest rate then in effect for this Subordinated Note and, if determined, the interest rate that will become effective on the next Interest Reset Date. The Calculation Agent’s determination of any interest rate, and its calculation of the
amount of interest for any Interest Reset Period, will be final and binding in the absence of manifest error. 
 All percentages
resulting from any calculation relating to this Subordinated Note will be rounded upward or downward, as appropriate, to the next higher or lower one hundred-thousandth of a percentage point. For example, 9.876541% (or .09876541) would be rounded
down to 9.87654% (or .0987654) and 9.876545% (or .09876545) would be rounded up to 9.87655% (or .0987655). All amounts used in or resulting from any calculation relating to this Subordinated Note will be rounded upward or downward, as appropriate,
to the nearest cent, with one-half cent or more being rounded upward. 
 In determining the Base Rate that applies this
Subordinated Note during a particular Interest Reset Period, the Calculation Agent may obtain rate quotes from various banks or dealers active in the relevant market, as described in the following subsections. Those reference banks and dealers may
include the Calculation Agent itself, including the Bank, and its affiliates. 
 Except as otherwise provided herein, the rate
of interest on this Subordinated Note for each Interest Reset Date will be the rate determined in accordance with the provisions set forth under the applicable heading below corresponding to the Interest Rate Basis specified on the face hereof.
Notwithstanding the foregoing, the interest rate hereon shall not be greater than the Maximum Interest Rate, if any, specified on the face hereof and shall not be lower than the Minimum Interest Rate, if any, specified on the face hereof. In
addition, the interest rate hereon will in no event be greater than the maximum rate permitted by Illinois law, as the same may be modified by United States law of general application. 

 Commercial Paper Rate. If the Interest Rate Basis of this Subordinated Note is the
Commercial Paper Rate, this Subordinated Note will bear interest at a Base Rate equal to the Commercial Paper Rate, as adjusted by the Spread or Spread Multiplier, if any, specified on the face hereof. 

The Commercial Paper Rate will be the Money Market Yield (as defined below) of the rate, for the relevant Interest Determination Date,
for commercial paper having the Index Maturity (as defined below) specified on the face of this Subordinated Note, as published in H.15(519) (as defined below) under the heading “Commercial Paper — Nonfinancial.” If the Commercial
Paper Rate cannot be determined as described above, the following procedures will apply: 
 (i) If the rate
described above does not appear in H.15(519) at 3:00 P.M., New York City time, on the relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from that source at that time), then the Commercial Paper Rate
will be the rate, for the relevant Interest Determination Date, for commercial paper having the Index Maturity specified on the face of this Subordinated Note, as published in H.15 Daily Update (as defined below) or another recognized electronic
source used for displaying that rate, under the heading “Commercial Paper —Nonfinancial.” 
 (ii)
If the rate described above does not appear in H.15(519), H.15 Daily Update or another recognized electronic source at 3:00 P.M., New York City time, on the relevant Interest Calculation Date (unless the calculation is made earlier and the rate is
available from one of those sources at that time), the Commercial Paper Rate will be the Money Market Yield of the arithmetic mean of the offered rates, as of 11:00 AM., New York City time, on the relevant Interest Determination Date, by three
leading U.S. dollar commercial paper dealers in New York City selected by the Calculation Agent for U.S. dollar commercial paper that has the relevant Index Maturity and is placed for an industrial issuer whose bond rating is “AA”, or the
equivalent, from a nationally recognized rating agency. 
 (iii) If fewer than three dealers selected by the
Calculation Agent are quoting as described above, the Commercial Paper Rate for the new Interest Reset Period will be the rate in effect for the prior Interest Reset Period. 
 LIBOR. If the Interest Rate Basis of this Subordinated Note is LIBOR, this Subordinated Note will bear interest at a Base Rate equal to LIBOR, as adjusted by the Spread or Spread Multiplier, if
any, specified on the face hereof. LIBOR will be the London interbank offered rate for deposits of U.S. dollars. LIBOR will be determined in the following manner 

(i) LIBOR will be the offered rate appearing on the Reuters Screen LIBOR01 Page (as defined below) as of 11:00 A.M.,
London time, on the relevant LIBOR Interest Determination Date, for deposits of U.S. dollars having the relevant Index Maturity beginning on the relevant Interest Reset Date 

 (ii) If no rate appears on the Reuters Screen LIBOR01 Page, then LIBOR will
be determined on the basis of the rates, at approximately 11:00 A.M., London time, on the relevant LIBOR Interest Determination Date, for deposits of U.S. dollars having the relevant Index Maturity, beginning on the relevant Interest Reset Date and
in a Representative Amount (as defined below), are offered to prime banks in the London interbank market by four major banks in that market selected by the Calculation Agent. The Calculation Agent will request the principal London office of each of
these banks to provide a quotation of its rate. If at least two quotations are provided, LIBOR for the relevant LIBOR Interest Determination Date will be the arithmetic mean of the quotations. 

(iii) If fewer than two quotations are provided as described above, LIBOR for the relevant LIBOR Interest Determination
Date will be the arithmetic mean of the rates for loans of U.S. dollars having the relevant Index Maturity, beginning on the relevant Interest Reset Date and in a Representative Amount to leading European banks quoted, at approximately 11:00 A.M.,
New York City time, on that LIBOR Interest Determination Date, by three major banks in New York City selected by the Calculation Agent. 
 (iv) If fewer than three banks selected by the Calculation Agent are quoting as described above, LIBOR for the new Interest Reset Period will be the rate in effect for the prior Interest Reset Period.

 Treasury Rate. If the Interest Rate Basis of this Subordinated Note is the Treasury Rate, this Subordinated Note will
bear interest at a Base Rate equal to the Treasury Rate, as adjusted by the Spread or Spread Multiplier, if any, specified on the face hereof. 
 The Treasury Rate will be the rate for the auction, on the relevant Treasury Interest Determination Date, of treasury bills having the Index Maturity specified in the on the face of this Subordinated
Note, as that rate appears on Reuters Screen USAUCTION10 or USAUCTION11 under the heading “Investment Rate.” If the Treasury Rate cannot be determined in this manner, the following procedures will apply: 

(i) If the rate described above does not appear on either page at 3:00 P.M., New York City time, on the relevant Interest
Calculation Date (unless the calculation is made earlier and the rate is available from that source at that time), the Treasury Rate will be the Bond Equivalent Yield (as defined below) of the rate, for the relevant Interest Determination Date, for
the type of treasury bill described above, as published in H.15 Daily Update or another recognized electronic source used for displaying that rate, under the heading “U.S. Government Securities/Treasury Bills/Secondary Market.” 

(ii) If the rate described in the prior paragraph does not appear in H.15 Daily Update or another recognized electronic
source at 3:00 P.M., New York City time, on the relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from one of those sources at that time), the Treasury Rate will be the Bond Equivalent Yield of the
auction rate, for the relevant Treasury Interest Determination Date and for treasury bills of the kind described above, as announced by the U.S. Department of the Treasury. 

 (iii) If the auction rate described in the prior paragraph is not so
announced by 3:00 P.M., New York City time, on the relevant Interest Calculation Date, or if no such auction is held for the relevant week, then the Treasury Rate will be the Bond Equivalent Yield of the rate, for the relevant Treasury Interest
Determination Date and for treasury bills having a remaining maturity closest to the specified Index Maturity, as published in H.15(519) under the heading “U.S. Government Securities/Treasury Bills/Secondary Market.” 

(iv) If the rate described in the prior paragraph does not appear in H.15(519) at 3:00 P.M., New York City time, on the
relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from one of those sources at that time), then the Treasury Rate will be the rate, for the relevant Treasury Interest Determination Date and for
treasury bills having a remaining maturity closest to the specified Index Maturity, as published in H.15 Daily Update or another recognized electronic source used for displaying that rate, under the heading “U.S. Government Securities/Treasury
Bills/Secondary Market.” 
 (v) If the rate described in the prior paragraph does not appear in H.15 Daily
Update or another recognized electronic source at 3:00 P.M., New York City time, on the relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from one of those sources at that time), the Treasury Rate
will be the Bond Equivalent Yield of the arithmetic mean of the secondary market bid rates as of approximately 3:30 P.M., New York City time, on the relevant Treasury Interest Determination Date, of three primary U.S. government securities dealers
in New York City selected by the Calculation Agent for the issue of treasury bills with a remaining maturity closest to the specified Index Maturity. 
 (vi) If fewer than three dealers selected by the Calculation Agent are quoting as described in the prior paragraph, the Treasury Rate in effect for the new Interest Reset Period will be the rate in effect
for the prior Interest Reset Period. 
 CMT Rate. If the Interest Rate Basis of this Subordinated Note is the CMT Rate,
this Subordinated Note will bear interest at a Base Rate equal to the CMT Rate, as adjusted by the Spread or Spread Multiplier, if any, specified on the face hereof. 
 The CMT Rate will be the rate displayed on the Designated CMT Reuters Screen Page (as defined below) under the heading “. . Treasury Constant Maturities . . . Federal Reserve Board Release H.15 . . .
Mondays Approximately 3:45 P.M.,” under the column for the Designated CMT Index Maturity (as defined below), as follows: (a) if the Designated CMT Reuters Screen Page is Reuters Screen FRBCMT page, the rate for the relevant Interest
Determination Date, or (b) if the Designated CMT Reuters Screen Page is Reuters Screen FEDCMT page, the weekly or monthly average, as specified on the face of this Subordinated Note, for the week that ends immediately before the week in which
the relevant Interest 

 
Determination Date falls, or for the month that ends immediately before the month in which the relevant Interest Determination Date falls, as applicable. If the CMT Rate cannot be determined in
this manner, the following procedures will apply: 
 (i) If the applicable rate described above is not displayed
on the relevant Designated CMT Reuters Screen Page at 3:00 P.M., New York City time, on the relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from that source at that time), then the CMT Rate will
be the applicable treasury constant maturity rate described above — that is, for the Designated CMT Index Maturity and for either the relevant Interest Determination Date or the weekly or monthly average, as applicable — as published in
H.15(519). 
 (ii) If the applicable rate described above does not appear in H.15(519) at 3:00 P.M., New York
City time, on the relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from one of those sources at that time), then the CMT Rate will be the treasury constant maturity rate, or other U.S. treasury
rate, for the Designated CMT Index Maturity and with reference to the relevant Interest Determination Date, that (a) is published by the Board of Governors of the Federal Reserve System, or the U.S. Department of the Treasury, and (b) is
determined by the Calculation Agent to be comparable to the applicable rate formerly displayed on the Designated CMT Reuters Screen Page and published in H.15(519). 

(iii) If the rate described in the prior paragraph does not appear at 3:00 P.M., New York City time, on the relevant
Interest Calculation Date (unless the calculation is made earlier and the rate is available from one of those sources at that time), then the CMT Rate will be the yield to maturity of the arithmetic mean of the offered rates, as of approximately
3:30 P.M., New York City time, on the relevant Interest Determination Date, of three primary U.S. government securities dealers in New York City selected by the Calculation Agent for the most recently issued treasury notes having an original
maturity of approximately the Designated CMT Index Maturity and a remaining term to maturity of not less than the Designated CMT Index Maturity minus one year, and in a Representative Amount. In selecting these offered rates, the Calculation Agent
will request quotations from five of these primary dealers and will disregard the highest quotation — or, if there is equality, one of the highest — and the lowest quotation — or, if there is equality, one of the lowest. Treasury
notes are direct, non-callable, fixed rate obligations of the U.S. government. 
 (iv) If the Calculation Agent
is unable to obtain three quotations of the kind described in the prior paragraph, the CMT rate will be the yield to maturity of the arithmetic mean of the offered rates, as of approximately 3:30 P.M., New York City time, on the relevant Interest
Determination Date, of three primary U.S. government securities dealers in New York City selected by the Calculation Agent for treasury notes with an original maturity longer than the Designated CMT Index Maturity, with a remaining term to maturity
closest to the Designated CMT Index Maturity and in a Representative Amount. In selecting these offered rates, the Calculation Agent will request quotations from five of these primary dealers and will disregard the highest quotation — or, if
there 

 
is equality, one of the highest — and the lowest quotation — or, if there is equality, one of the lowest. If two treasury notes with an original maturity longer than the Designated CMT
Index Maturity have remaining terms to maturity that are equally close to the Designated CMT Index Maturity, the Calculation Agent will obtain quotations for the treasury note with the shorter remaining term to maturity. 

(v) If fewer than five but more than two of these primary dealers are quoting as described in the prior paragraph, then
the CMT Rate for the relevant Interest Determination Date will be based on the arithmetic mean of the offered rates so obtained, and neither the highest nor the lowest of those quotations will be disregarded. 

(vi) If two or fewer primary dealers selected by the Calculation Agent are quoting as described above, the CMT Rate in
effect for the new Interest Reset Period will be the rate in effect for the prior Interest Reset Period. 
 CD Rate. If
the Interest Rate Basis of this Subordinated Note is the CD Rate, this Subordinated Note will bear interest at a Base Rate equal to the CD Rate, as adjusted by the Spread or Spread Multiplier, if any, specified on the face hereof. 

The CD Rate will be the rate, on the relevant Interest Determination Date, for negotiable U.S. dollar certificates of deposit having the
Index Maturity specified on the face of this Subordinated Note, as published in H.15(519) under the heading “CDs (Secondary Market).” If the CD Rate cannot be determined in this manner, the following procedures will apply: 

(i) If the rate described above does not appear in H15(519) at 3:00 P.M., New York City time, on the relevant Interest
Calculation Date (unless the calculation is made earlier and the rate is available from that source at that time), then the CD Rate will be the rate, for the relevant Interest Determination Date, described above as published in H.15 Daily Update or
another recognized electronic source used for displaying that rate, under the heading “CDs (Secondary Market).” 
 (ii) If the rate described above does not appear in H.15(519), H.15 Daily Update or another recognized electronic source at 3:00 P.M., New York City time, on the relevant Interest Calculation Date (unless
the calculation is made earlier and the rate is available from one of those sources at that time), the CD Rate will be the arithmetic mean of the rates offered as of 10:00 A.M., New York City time, on the relevant Interest Determination Date, by
three leading nonbank dealers in negotiable U.S. dollar certificates of deposit in New York City, as selected by the Calculation Agent for negotiable U.S. dollar certificates of deposit of major U.S. money center banks with a remaining maturity
closest to the specified Index Maturity, and in a Representative Amount. 
 (iii) If fewer than three dealers
selected by the Calculation Agent are quoting as described above, the CD Rate in effect for the new Interest Reset Period will be the rate in effect for the prior Interest Reset Period. 

 Federal Funds Rate. If the Interest Rate Basis of this Subordinated Note is the
Federal Funds Rate, this Subordinated Note will bear interest at a Base Rate equal to the Federal Funds Rate, as adjusted by the Spread or Spread Multiplier, if any, specified on the face hereof. 

The Federal Funds Rate will be the rate for U.S. dollar federal funds on the relevant Interest Determination Date, as published in
H.15(519) under the heading “Federal Funds (Effective),” as that rate is displayed on Reuters Screen FEDFUNDS1 Page. If the Federal Funds Rate cannot be determined in this manner, the following procedures will apply: 

(i) If the rate described above is not displayed on Reuters Screen FEDFUNDS1 Page at 3:00 P.M., New York City time, on the
relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from that source at that time), then the Federal Funds Rate, for the relevant Interest Determination Date, will be the rate described above as
published in H.15 Daily Update or another recognized electronic source used for displaying that rate, under the heading “Federal Funds (Effective).” 
 (ii) If the rate described above is not displayed on Reuters Screen FEDFUNDS1 Page and does not appear in H.15 Daily Update or another recognized electronic source at 3:00 P.M., New York City time, on the
relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from one of those sources at that time), the Federal Funds Rate will be the arithmetic mean of the rates for the last transaction in overnight, U.S.
dollar federal funds arranged, before 9:00 A.M., New York City time, on the relevant Interest Determination Date, by three leading brokers of U.S. dollar federal funds transactions in New York City selected by the Calculation Agent. 

(iii) If fewer than three brokers selected by the Calculation Agent are quoting as described above, the Federal Funds Rate
in effect for the new Interest Reset Period will be the rate in effect for the prior Interest Reset Period. 
 Prime
Rate. If the Interest Rate Basis of this Subordinated Note is the Prime Rate, this Subordinated Note will bear interest at a Base Rate equal to the Prime Rate, as adjusted by the Spread or Spread Multiplier, if any, specified on the face hereof.

 The Prime Rate will be the rate, for the relevant Interest Determination Date, published in H.15(519) under the heading
“Bank Prime Loan.” If the Prime Rate cannot be determined as described above, the following procedures will apply. 
 (i) If the rate described above does not appear in H.15(519) at 3:00 P.M., New York City time, on the relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available
from that source at that time), then the Prime Rate will be the rate, for the relevant Interest Determination Date, as published in H.15 Daily Update or another recognized electronic source used for the purpose of displaying that rate, under the
heading “Bank Prime Loan.” 

 (ii) If the rate described above does not appear in H.15(519), H.15 Daily
Update or another recognized electronic source at 3:00 P.M., New York City time, on the relevant Interest Calculation Date (unless the calculation is made earlier and the rate is available from one of those sources at that time), then the Prime Rate
will be the arithmetic mean of the rates of interest publicly announced by each bank appearing on the Reuters Screen US PRIME 1 Page (as defined below) as that bank’s prime rate or base lending rate, as of 11:00 A.M., New York City time, on the
relevant Interest Determination Date. 
 (iii) If fewer than four of these rates appear on the Reuters Screen US
PRIME 1 Page, the Prime Rate will be the arithmetic mean of the prime rates or base lending rates, as of the close of business on the relevant Interest Determination Date, of three major banks in New York City selected by the Calculation Agent. For
this purpose, the Calculation Agent will use rates quoted on the basis of the actual number of days in the year divided by a 360-day year. 
 (iv) If fewer than three banks selected by the Calculation Agent are quoting as described above, the Prime Rate for the new Interest Reset Period will be the rate in effect for the prior Interest Reset
Period. 
 Definitions of Terms Used in Interest Rate Bases. The terms listed below are defined as follows: 

“Bond Equivalent Yield” means a yield expressed as a percentage and calculated in accordance with the following formula:

             D x
N             x 100 
 360 - (D x
M)             
 where (i) “D” means the annual rate for treasury
bills quoted on a bank discount basis and expressed as a decimal, (ii) “N” means the number of days in the year, 365 or 366, as the case may be, and (iii) “M” means the actual number of days in the applicable Interest
Reset Period. 
 “Business Day” means, for purposes of calculating interest on this Subordinated Note, a day that is a
Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which banking institutions in New York City generally are authorized or obligated by law, regulation or executive order to close and, if the Interest Rate Basis specified on the
face hereof is LIBOR, is also a London Business Day. 
 “Designated CMT Index Maturity” means the Index Maturity for a
Note having as its Interest Rate Basis the CMT Rate and will be the original period to maturity of a U.S. treasury security — either 1, 2, 3, 5, 7, 10, 20 or 30 years — specified in the applicable pricing supplement. If no such original
maturity period is so specified, the Designated CMT Index Maturity will be 2 years. 

 “Designated CMT Reuters Screen Page” means the Reuters Screen Page specified on
the face of this Subordinated Note (if the Interest Rate Basis is the CMT Rate) that displays treasury constant maturities as reported in H.15(519). If no Reuters Screen Page is so specified, then the applicable page will be Reuters Screen FEDCMT
Page. If Reuters Screen FEDCMT Page applies but this Subordinated Note does not specify whether the weekly or monthly average applies, the weekly average will apply. 
 “H.15(519)” means the weekly statistical release entitled “Statistical Release H.15 (519)” or any successor publication, published by the Board of Governors of the Federal Reserve
System. 
 “H.15 Daily Update” means the daily update of H.15(519) available through the world wide web site of the
Board of Governors of the Federal Reserve System, at http://www.federalreserve.gov/releases/h15/update or any successor site or publication. 
 “Index Maturity” means the period to maturity of the instrument or obligation on which the interest rate formula is based, as specified on the face of this Subordinated Note. 

“London Business Day” means any day on which dealings in U.S. dollars are transacted in the London interbank market.

 “Money Market Yield” means a yield expressed as a percentage and calculated in accordance with the following
formula: 
             D x
360             x 100 
 360 - (D x
M)             
 where (a) “D” means the annual rate for commercial
paper quoted on a bank discount basis and expressed as a decimal, and (b) “M” means the actual number of days in the relevant Interest Reset Period. 
 “Representative Amount” means an amount that, in the Calculation Agent’s judgment, is representative of a single transaction in the relevant market at the relevant time. 

 “Reuters Screen LIBOR01 Page” means the display on the Reuters Monitor Money Rates
Service, or any successor service, on the page designated as “LIBO” or any replacement page or pages on which London interbank rates of major banks for U.S. dollars are displayed. 

“Reuters Screen Page” means the display on Reuters, or any successor service, on the page or pages specified in this
Subordinated Note, or any replacement page or pages on that service. 
 “Reuters Screen US PRIME 1 Page” means the
display on the “US PRIME 1” page on the Reuters Monitor Money Rates Service, or any successor service, or any replacement page or pages on that service, for the purpose of displaying prime rates or base lending rates of major U.S. banks.

 References to particular headings on pages designated by the following terms include any successor or replacement heading or
headings as determined by the Calculation Agent: CMT Reuters Screen Page, H.15(519), H.15 Daily Update, Reuters Screen LIBOR01 Page, Reuters Screen US PRIME 1 Page or Reuters Screen Page. 

If this Subordinated Note is an Original Issue Discount Note and if an Event of Default with respect to this Subordinated Note shall have
occurred and be continuing, the Default Amount (as defined hereafter) of this Subordinated Note may be declared due and payable in the manner and with the effect provided herein. The ‘Default Amount” shall be equal to the adjusted issue
price as of the first day of the accrual period as determined under Treasury Regulation Section 1.1275-1(b) (or successor regulation) under the United States Internal Revenue Code of 1986, as amended, in which the date of acceleration occurs
increased by the daily portion of the original issue discount for each day in such accrual period ending on the date of acceleration, as determined under Treasury Regulation Section 1.1275-1(b) (or successor regulation) under the United States
Internal Revenue Code of 1986, as amended. Upon payment of (i) the amount of principal or premium, if any, so declared due and payable and (ii) interest on any overdue principal and overdue interest or premium, if any (in each case to the
extent that the payment of such interest shall be legally enforceable), all of the Bank’s obligations in respect of the payment of the principal of, and interest or premium, if any, on, this Subordinated Note shall terminate. 

In case any Subordinated Note shall at any time become mutilated, destroyed, lost or stolen and such Subordinated Note or evidence
satisfactory to the Bank of the loss, theft or destruction thereof (together with indemnity satisfactory to the Bank and such other documents or proof as may be required in the premises) shall be delivered to the Bank, a new Subordinated Note of
like tenor will be issued by the Bank in exchange for the Subordinated Note so mutilated, or in lieu of the Subordinated Note so destroyed or lost or stolen. All expenses and reasonable charges associated with procuring the indemnity referred to
above and with the preparation, authentication and delivery of a new Subordinated Note shall be borne by the holder of the 

 
Subordinated Note so mutilated, destroyed, lost or stolen. If any Subordinated Note which has matured or is about to mature shall become mutilated, destroyed, lost or stolen, the Bank may,
instead of issuing a substitute Subordinated Note, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Subordinated Note) upon compliance by the holder thereof with the provisions of this paragraph.

 No recourse shall be had for the payment of the principal of, premium, if any, or interest on, this Subordinated Note, for
any claim based hereon, or otherwise in respect hereof, against any shareholder, employee, officer or director, as such, past, present or future, of the Bank or of any successor corporation, either directly or through the Bank or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof,
expressly waived and released. 
 An “Event of Default” with respect to this Subordinated Note will occur if the Bank
shall consent to, or a court or other governmental agency shall enter a decree or order for, the appointment of a receiver or other similar official in any liquidation, insolvency or similar proceeding with respect to the Bank or all or
substantially all of its property and, in the case of a decree or order, such decree or order shall have remained in force for a period of 60 days. If an Event of Default shall occur and be continuing, the holder of this Subordinated Note may
declare the principal amount of, and accrued interest and premium, if any, on, this Subordinated Note due and payable immediately by written notice to the Bank. Upon such declaration and notice, such principal amount, accrued interest and premium,
if any, shall become due and payable seven calendar days after such notice. Any Event of Default with respect to this Subordinated Note may be waived by the holder hereof. No payment may be made on this Subordinated Note in the event of acceleration
resulting from an Event of Default without the prior written consent of the Federal Reserve Bank of Chicago. There is no right of acceleration in the case of a default in the payment of principal of, or interest on, this Subordinated Note or in the
performance of any other obligation of the Bank under this Subordinated Note or under any other security issued by the Bank. 

No provision of this Subordinated Note shall alter or impair the obligation of the Bank, which is absolute and unconditional, to pay the
principal, and premium, if any, and interest on, this Subordinated Note in U.S. dollars at the times, places and rate herein prescribed. 
 The Bank shall cause to be kept at the corporate trust office of the Subordinated Note Registrar designated below a register (the register maintained in such corporate trust office or any other office or
agency of the Bank in the Place of Payment herein referred to as the “Subordinated Note Register”) in which, subject to such reasonable regulations as it may prescribe, the Bank shall provide for the registration of the Subordinated Notes
and of transfers of the Subordinated Notes. The Bank is hereby initially appointed “Subordinated Note Registrar” for the purposes of registering the Subordinated Notes and transfers of the Subordinated Notes as herein provided. 

 The transfer of this Subordinated Note is registrable in the Subordinated Note Register,
upon surrender of this Subordinated Note for registration of transfer at the office or agency of the Bank in the Place of Payment, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Bank and the Paying
Agent duly executed by, the holder hereof or his attorney duly authorized in writing, and thereupon one or more new Subordinated Notes of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees. Notwithstanding the foregoing, the Bank shall not be required to register the transfer of any Subordinated Note that. has been called for redemption during a period beginning at the opening of business fifteen
calendar days before the day of mailing of a notice of such redemption and ending at the close of business on the day of such mailing. 
 No service charge shall be made for any such registration of transfer or exchange, but the Bank may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection
therewith. 
 The Subordinated Notes are issuable only in registered form without coupons in minimum denominations of $250,000
and any integral multiple of $1,000 in excess thereof. Each owner of a beneficial interest in this Subordinated Note is required to hold a beneficial interest in $250,000 principal amount or any integral multiple of $1,000 in excess thereof of this
Subordinated Note at all times. 
 Prior to due presentment of this Subordinated Note for registration of transfer, the Bank,
the Paying Agent or any agent of the Bank or the Paying Agent may treat the person in whose name this Subordinated Note is registered as the owner hereof for all purposes, whether or not this Subordinated Note be overdue, and neither the Bank, the
Paying Agent nor any such agent shall be affected by notice to the contrary. 
 All notices to the Bank under this Subordinated
Note shall be in writing and addressed to the Bank at 50 South LaSalle Street, Chicago, Illinois 60675, or to such other address of the Bank as the Bank may notify the holders of the Subordinated Notes. 

This Subordinated Note shall be governed by, and construed in accordance with, the laws of the State of Illinois. 

IN WITNESS WHEREOF, the Bank has caused this instrument to be duly executed. 

 

			
	THE NORTHERN TRUST COMPANY
		
	By:	 	 
		 	Authorized Signatory

 ABBREVIATIONS 

The following abbreviations, when used in the inscription on the face of the within Subordinated Note, shall be construed as though they
were written out in full according to applicable laws or regulations. 
  

							
	 TEN COM    
	  	 	-  	  	  	as tenants in common
	 TEN ENT
	  	 	-  	  	  	as tenants by the entireties
	 JT TEN
	  	 	-  	  	  	as joint tenants with right of survivorship and not as tenants in common

  

							
	 UNIF GIFT MIN ACT -
	  	 	  	Custodian	  	 
		  	                    (Cust)      
              	  		  	(Minor)
		  		  		  	
		  		  	under Uniform Gifts to Minors Act
		  		  	  

		  		  	(State)	  	

 Additional abbreviations may also be used 

though not in the above list. 

 ASSIGNMENT 
 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 

PLEASE INSERT SOCIAL SECURITY NUMBER OR OTHER IDENTIFYING NUMBER OF ASSIGNEE 

(Please print or typewrite name and address, 
 including postal zip code, of assignee) 
 the within Subordinated Note and all rights thereunder,
and hereby irrevocably constitutes and appoints                     to transfer said Subordinated Note on the books of the Bank, with full power of
substitution in the premises. 

Dated:                     

Notice: The signature to this assignment must correspond with the name as written upon the face of the within Subordinated Note in every
particular, without alteration or enlargement or any change whatsoever. 

  
 20Employment Agreement

 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement is
entered into as of October 1, 2011 (the “Effective Date”), by and between Travelzoo Inc., a Delaware corporation (the “Company”) with principal corporate offices at 590 Madison Avenue, 37th Floor, New York, NY 10022, and Holger Bartel whose address is
currently XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX (“Employee”). The Company and Employee are collectively referred to herein as “the Parties.” 
 WHEREAS, the Company desires to retain Employee as Head of Strategy and Employee desires to perform such service for the Company, on the terms and conditions as set forth herein; NOW, THEREFORE, in
consideration of the promises and mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is mutually agreed by the parties as follows: 

 

	 	1.	Duties and Scope of Employment. 

 (a) Position. Employee shall be employed as Head of Strategy in the Company’s San Francisco office. 
 (b) Duties. During the term of Employee’s employment with the Company, Employee shall devote his full time, skill and attention to his duties and responsibilities, which Employee shall
perform faithfully, diligently and competently, and Employee shall use his best efforts to further the business of the Company. During the term of the Agreement, Employee agrees not to actively engage in any other employment, occupation or
consulting activity for any direct or indirect remuneration without the prior approval of the Company, except that this provision shall not be interpreted to prohibit Employee from involvement in any charitable or community activity/organization
that he is currently involved in and that does not materially interfere with his ability to perform his duties under this Agreement. Employee shall be permitted, to the extent such activities do not materially and adversely affect the ability of
Employee to fully perform his duties and responsibilities hereunder, to (i) manage Employee’s personal, financial and legal affairs, (ii) serve on civic or charitable boards or committees, and (iii) with the consent of the
Company (which consent shall not be unreasonably withheld), serve as a member of the board of directors of any noncompeting business. 
 2. Term of Employment. The term of this Agreement shall be for the period, commencing October 1st, 2011 and terminating on the date which is twelve (12) months after the effective date. Notwithstanding the
foregoing, this Agreement shall expire on the date the Employee dies, and may be terminated by the Company during the Term, by delivery of written notice to Employee , for Cause as (hereinafter defined), because of Disability (as herein defined), or
with Cause. If employee continues after the termination date, any such employment will be on an at will basis and may be terminated upon six (6) weeks written notice. Employee acknowledges that their obligations set forth in certain sections of
this Agreement, including but not limited to Section 5, survive the termination of their employment from the Company. 

(a) Termination by Company without Cause. If Employee is terminated by the Company without Cause (as defined in paragraph
2(b)) after the initial three months of employment, Employee shall receive his salary and benefits earned through the date of termination. 
 (b) Termination for Cause. Notwithstanding any provision of this Agreement to the contrary, if Employee is terminated for “Cause” as defined herein or dies at any time, Employee
will receive only payment of his Salary and benefits through the date of termination or death. For purposes of this Agreement, “Cause” shall mean that the Employee has (i) continually failed to perform his duties under this Agreement
for a period of 30 days after written notice from the Company setting forth with particularity such failure, (ii) committed an act of fraud upon the Company or breached his duty of loyalty to the Company, (iii) committed a felony or a
crime of dishonesty, fraud or moral turpitude under the laws of the United States or any state thereof; (iv) misappropriated any funds, property or rights of the Company; (v) violated the Company’s policies regarding workplace
conduct, discrimination, sexual harassment, etc.; (vi) willfully failed or refused, following receipt of an explicit directive from the Company, to comply with the material terms of this Agreement; or (vii) failed or refused to cooperate
with the Company, or at the Company’s request any governmental, regulatory or self-regulatory agency or entity, in providing information with respect to any act or omission in performing his duties as an employee of the Company, if such request
is made connection with any criminal or civil actions, administrative or regulatory proceedings or investigations against or relating to the Company by any governmental, regulatory or self-regulatory agency or entity. 

	 	3.	Compensation and Fringe Benefits. 

 (a) Salary. Employee will receive a salary at the annualized rate of $600,000 (Six Hundred Thousand Dollars) (the “Salary”), which shall be paid periodically in accordance with
normal Company payroll practices and subject to the usual and applicable required withholding. Employee understands and agrees that neither his job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in
any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of this Agreement. 
 (b) Vacation and Holiday Pay. Employee shall receive four (4) weeks of paid vacation per year, which accrues over the course of the year. In addition, the Company provides eight
(8) paid holidays each year, along with two (2) “floating holidays” which can be used by Employee at any time. 
 (c) Other Benefits. Employee will be entitled to participate in or receive such benefits under the Company’s employee benefit plans and policies and such other benefits which may be
made available as in effect from time to time and as are provided to similarly situated employees of the Company, subject in each case to the generally applicable terms and conditions of the plans and policies in question. 

4. Expenses. The Company will pay or reimburse Employee for reasonable travel, entertainment or other expenses incurred by
Employee in the furtherance of or in connection with the performance of Employee’s duties hereunder in accordance with the Company’s established policies. . The amount of expenses eligible for reimbursement during a calendar year shall not
affect the expenses eligible for reimbursement in any other calendar year. Reimbursement of an eligible expense shall in no event occur later than the last day of the calendar year following the calendar year in which such expense was incurred. The
right to expenses reimbursements in connection with the agreement is not subject to liquidation or exchange for another benefit. 
  

	 	5.	Certain Covenants. 

 (a) Intellectual Property Rights. 
 (i)
Employee agrees that the Company will be the sole owner of any and all of Employee’s “Discoveries” and “Work Product,” hereinafter defined, made during the term of his employment with the Company, whether pursuant to this
Agreement or otherwise. For purposes of this Agreement, “Discoveries” means all inventions, discoveries, improvements, and copyrightable works (including, without limitation, any information relating to the Company’s software
products, source code, know-how, processes, designs, algorithms, computer programs and routines, formulae, techniques, developments or experimental work, work-in-progress, or business trade secrets) made or conceived or reduced to practice by
Employee during the term of his employment by the Company, whether or not potentially patentable or copyrightable in the United States or elsewhere. For purposes of this Agreement, “Work Product” means any and all work product relating to
Discoveries. 
 (ii) Employee shall promptly disclose to the Company all Discoveries and Work Product. All such
disclosures must include complete and accurate copies of all source code, object code or machine-readable copies, documentation, work notes, flow-charts, diagrams, test data, reports, samples, and other tangible evidence or results (collectively,
“Tangible Embodiments”) of such Discoveries or Work Product. All Tangible Embodiments of any Discoveries or Work Project will be deemed to have been assigned to the Company as a result of the act of expressing any Discovery or Work Product
therein. 
 (iii) Employee hereby assigns and agrees to assign to the Company all of his interest in any country
in any and all Discoveries and Work Product, whether such interest arises under patent law, copyright law, trade-secret law, semiconductor chip protection law, or otherwise. Without limiting the generality of the preceding sentence, Employee hereby
authorizes the Company to make any desired changes to any part of any Discovery or Work Product, to combine it with other materials in any manner desired, and to withhold Employee’s identity in connection with any distribution or use thereof
alone or in combination with other materials. This assignment and assignment obligation applies to all Discoveries and Work Product arising during Employee’s employment with the Company (or its predecessors), whether pursuant to this Agreement
or otherwise. Employee’s agreement to assign to the Company any of his rights as set forth in this Section 5(a)(iii) applies to all inventions other than an invention (a) in which no equipment, supplies, facility or trade secret
information of the Company was used (b) was developed 

 
entirely upon Employee’s own time (c) does not relate to Company business or to the Company’s actual or anticipated research or development and (d) does not result from any
work performed by Employee for the Company. 
 (iv) At the request of the Company, Employee shall promptly and
without additional compensation execute any and all patent applications, copyright registration applications, waivers of moral rights, assignments, or other instruments that the Company deems necessary or appropriate to apply for or obtain Letters
Patent of the United States or any foreign country, copyright registrations or otherwise to protect the Company’s interest in such Discovery and Work Product, the expenses for which will be borne by the Company. Employee hereby irrevocably
designates and appoints the Company and its duly authorized officers and agents as his agents and attorneys-in-fact to, if the Company is unable for any reason to secure Employee’s signature to any lawful and necessary document required or
appropriate to apply for or execute any patent application, copyright registration application, waiver of moral rights, or other similar document with respect to any Discovery and Work Product (including, without limitation, renewals, extensions,
continuations, divisions, or continuations in part), (i) act for and in his behalf, (ii) execute and file any such document, and (iii) do all other lawfully permitted acts to further the prosecution of the same legal force and effect
as if executed by him; this designation and appointment constitutes an irrevocable power of attorney coupled with an interest. 
 (v) To the extent that any Discovery or Work Product constitutes copyrightable or similar subject matter that is eligible to be treated as a “work made for hire” or as having similar status in
the United States or elsewhere, it will be so deemed. This provision does not alter or limit Employee’s other obligations to assign intellectual property rights under this Agreement. 

(vi) The obligations of Employee set forth in this Section 5 (including, without limitation, the assignment
obligations) will continue beyond the termination of Employee’s employment with respect to Discoveries and Work Product conceived or made by Employee alone or in concert with others during Employee’s employment with the Company, whether
pursuant to this Agreement or otherwise. Those obligations will be binding upon Employee, his assignees permitted under this Agreement, executors, administrators, and other representatives. 

(b) Exposure to Proprietary Information. 

(i) As used in this Agreement, “Proprietary Information” means all information of a business or technical nature
that relates to the Company including, without limitation, all information about software products whether currently released or in development, all inventions, discoveries, improvements, copyrightable work, source code, know-how, processes,
designs, algorithms, computer programs and routines, formulae and techniques, and any information regarding the business of any customer or supplier of the Company or any other information that the Company is required to keep confidential.
Notwithstanding the preceding sentence, the term “Proprietary Information” does not include information that is or becomes publicly available through no fault of Employee, or information that Employee learned prior to the Effective Date.

 (ii) In recognition of the special nature of his employment under this Agreement, including his special access
to the Proprietary Information, and in consideration of his employment pursuant to this Agreement, Employee agrees to the covenants and restrictions set forth in Section 5 of this Agreement. 

(c) Use of Proprietary Information; Restrictive Covenants. 

(i) Employee acknowledges that the Proprietary Information constitutes a protectable business interest of the Company, and
covenants and agrees that during the term of his employment, whether under this Agreement or otherwise, and after the termination of such employment, he will not, directly or indirectly, disclose, furnish, make available or utilize any of the
Proprietary Information, other than in the proper performance of his duties for the Company. 

 (ii) Employee will not, during the term of this Agreement or, for a
period of one year thereafter (the “Restricted Period”), anywhere within the United States (the “Restricted Territory”), directly or indirectly (whether as an owner, partner, shareholder, agent, officer, director, employee,
independent contractor, consultant, or otherwise): 
 1. perform services for, or engage in, any business or
segment of a business that generates its revenues primarily from the development, publishing, or sale of online advertisements for travel companies (the “Products”); 

2. except on behalf of the Company, solicit any person or entity who is, or was at any time during the twelve-month
period immediately prior to the termination of Employee’s employment with the Company, a customer of the Company for the sale of the Products or any product or service of a type then sold by the Company for which Employee provided any
assistance in planning, development, marketing, training, support, or maintenance; or 
 3. solicit for
employment any person who is, or was at any time during the twelve-month period immediately prior to the termination of Employee’s employment with the Company, an employee of the Company. 

(d) Scope/Severability. The Parties acknowledge that the business of the Company is and will be
national and international in scope and thus the covenants in this Section 5 would be particularly ineffective if the covenants were to be limited to a particular geographic area of the United States. If any court of competent jurisdiction at
any time deems the Restricted Period unreasonably lengthy, or the Restricted Territory unreasonably extensive, or any of the covenants set forth in this Section 5 not fully enforceable, the other provisions of this Section 5, and this
Agreement in general, will nevertheless stand and to the full extent consistent with law continue in full force and effect, and it is the intention and desire of the parties that the court treat any provisions of this Agreement which are not fully
enforceable as having been modified to the extent deemed necessary by the court to render them reasonable and enforceable and that the court enforce them to such extent (for example, that the Restricted Period be deemed to be the longest period
permissible by law, but not in excess of the length provided for in Section 5(c), and the Restricted Territory be deemed to comprise the largest territory permissible by law under the circumstances). 

(e) Return of Company Materials upon Termination. Employee acknowledges that all records, documents,
and Tangible Embodiments containing or of Proprietary Information prepared by Employee or coming into his possession by virtue of his employment by the Company are and will remain the property of the Company. Upon termination of his employment with
the Company, Employee shall immediately return to the Company all such items in his possession and all copies of such items. 
 6. Equitable Remedies. 
 (a) Employee
acknowledges and agrees that the agreements and covenants set forth in Sections 5(a), (b), (c), (d) and (e) are reasonable and necessary for the protection of the Company’s business interests, that irreparable injury will result to
the Company if Employee breaches any of the terms of said covenants, and that in the event of Employee’s actual or threatened breach of any such covenants, the Company will have no adequate remedy at law. Employee accordingly agrees that, in
the event of any actual or threatened breach by him of any of said covenants, the Company will be entitled to immediate injunctive and other equitable relief, without bond and without the necessity of showing actual monetary damages. Nothing in this
Section 6 will be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach, including the recovery of any damages that it is able to prove. Employee agrees that notwithstanding
the arbitration provision in Section 11, the Company may apply to a court of competent jurisdiction, in accordance with Section 11(c) of this Agreement, to obtain the equitable relief referenced in this Section 6. 

(b) Each of the covenants in Sections 5(a), (b), (c), (d) and (e) will be construed as independent of any
other covenants or other provisions of this Agreement. 
 (c) In the event of any judicial determination
that any of the covenants in Sections 5(a), (b), (c), (d), and (e) are not fully enforceable, it is the intention and desire of the parties that the court treat said covenants as having been modified to the extent deemed necessary by the court
to render them reasonable and enforceable, and that the court enforce them to such extent. 

 7. Assignment. This Agreement shall be binding upon and inure to the benefit
of (a) the heirs, executors and legal representatives of Employee upon Employee’s death and (b) any successor of the Company. Any such successor of the Company shall be deemed substituted for the Company under the terms of this
Agreement for all purposes. As used herein, “successor” shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially
all of the assets or business of the Company. None of the rights of Employee to receive any form of compensation payable pursuant to this Agreement shall be assignable or transferable except through a testamentary disposition or by the laws of
descent. Any attempted assignment, transfer, conveyance or other disposition (other than as aforesaid) of any interest in the rights of Employee to receive any form of compensation hereunder shall be null and void. 

8. Notices. All notices, requests, demands and other communications called for hereunder shall be in writing and shall be
deemed given if delivered personally, one (1) day after mailing via Federal Express overnight or a similar overnight delivery service, or three (3) days after being mailed by registered or certified mail, return receipt requested, prepaid
and addressed to the parties or their successors in interest at the addresses listed above, or at such other addresses as the parties may designate by written notice in the manner aforesaid. 

9. Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be
illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision. 
 10.
Entire Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning Employee’s employment relationship with the Company, and supersede in their entirety any and all prior
agreements and understandings concerning Employee’s employment relationship with the Company. 
 11. Resolution of
Disputes Regarding Employment. 
 (a) The Parties agree to submit any dispute or controversy
arising out of, relating to, or in connection with this Agreement, or the interpretation, validity, construction, performance, breach, or termination thereof, to mediation. The Parties shall mutually select the mediator and shall equally pay for the
costs of the mediator. 
 (b) If and only if a mediation is unsuccessful, and the dispute or controversy
is not resolved within 30 days after a mediation, either party may submit the matter to binding arbitration, to the extent permitted by law, to be held in New York, New York in accordance with the National Rules for the Resolution of Employment
Disputes then in effect of the American Arbitration Association (the “Rules”). The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on
the parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The arbitrator may award the prevailing party in any such attorneys’ fees and costs incurred in connection therewith.

 (c) The arbitrator shall apply New York law to the merits of any dispute or claim, without reference to
rules of conflict of law. Employee hereby expressly consents to the personal jurisdiction of the state and federal courts located in New York County, New York as the exclusive jurisdiction for any action or proceeding arising from or relating to
this Agreement and/or relating to any arbitration in which the Parties are participants. 
 (d) Employee
understands that nothing in this Section modifies Employee’s at-will status. Either the Company or Employee can terminate the employment relationship at any time, with or without cause, subject only to the restrictions set forth in
Section 2 above. 
 (e) Employee has read and understands Section 11, which discusses
arbitration. Employee understands that by signing this agreement, employee agrees to submit any future claims arising out of, relating to, or in connection with this agreement, or the interpretation, validity, construction, performance, breach, or
termination thereof to binding arbitration to the extent permitted by law, and that this arbitration clause constitutes a waiver of employee’s right to a jury trial and relates to the resolution of all disputes relating to all aspects of the
employer/employee relationship, including but not limited to, the following claims: 
 (i) Any and all claims for
wrongful discharge of employment; breach of contract, both express and implied; breach of the covenant of good faith and fair dealing, both express and implied; negligent or intentional infliction of emotional distress; negligent or intentional
misrepresentation; negligent or intentional interference with contract or prospective economic advantage; and defamation; 

 (ii) Any and all claims for violation of any federal, state or municipal
statute, including, but not limited to the New York Human Rights Act, the Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the Americans with Disabilities Act of 1990, and the Fair Labor Standards Act; 

(iii) Any and all claims arising out of any other laws and regulations relating to employment or employment
discrimination. 
 (f) The Parties may apply to any court of competent jurisdiction (in accordance with
Section 11(c)) for a temporary restraining order, preliminary injunction, or other interim or conservatory relief, as necessary, without breach of this arbitration agreement and without abridgment of the powers of the arbitrator. 

12. No Oral Modification, Cancellation or Discharge. This Agreement may only be amended, canceled or discharged in writing
signed by Employee and the Company. 
 13. Governing Law. This Agreement shall be governed by the internal
substantive laws, but not the choice of law rules, of the State of New York. 
 14. Acknowledgment. Employee
acknowledges that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement. 
 IN WITNESS WHEREOF, the undersigned have executed this Agreement on the respective dates set forth
below. 
 THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION WHICH MAY BE ENFORCED BY BOTH PARTIES. 

 

			
	COMPANY:
	
	TRAVELZOO INC.
		
	By:	 	  

		
	Title:	 	  

		
	Date:	 	  

	
	EMPLOYEE:
	  

	HOLGER BARTEL
		
	Date:

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