SEC Contract Filing

Filing Date: 2019-11-12

Document Content:
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>2
<FILENAME>stockrepurchaseagreementbe.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>
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<div><a name="s315201A48A7F5DF69B67FFBA9DD92640"></a></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.4</font></div><div style="line-height:120%;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">STOCK REPURCHASE AGREEMENT</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">THIS STOCK REPURCHASE AGREEMENT (this &#8220;Agreement&#8221;) is entered into as of November 6, 2019, by and between Travelzoo, a Delaware corporation (the &#8220;Company&#8221;), and Holger Bartel (the &#8220;Selling Stockholder&#8221;).</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Recitals</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">WHEREAS, the Selling Stockholder desires to sell to the Company, and the Company desires to repurchase from the Selling Stockholder, an aggregate of 200,000 shares of the Company&#8217;s common stock (the &#8220;Shares&#8221;) at a price of $10.05 per Share, for an aggregate purchase price of $2,010,000 for the Shares (such aggregate purchase price, the &#8220;Purchase Price&#8221;), upon the terms and subject to the conditions set forth in this Agreement (the &#8220;Repurchase&#8221;).</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">WHEREAS, the parties acknowledge that the Purchase Price is based on the 10-day volume weighted average price based on trading activity on October 22, 2019 through and including November 4, 2019, calculated using the VWAP function on Bloomberg, minus a 4.4% discount. </font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">WHEREAS, as Mr. Bartel is the Company&#8217;s Global Chief Executive Officer, the Compensation Committee of the Board of Directors (the &#8220;Board&#8221;) of the Company, being comprised of independent members of the Board, was authorized by the Board to evaluate the Repurchase and has determined that the terms and conditions of the Repurchase, as set forth in this Agreement, are fair, reasonable and in the best interests of the Company.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby agree as follows:</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Agreement</font></div><div style="line-height:120%;padding-left:48px;padding-bottom:16px;text-align:justify;text-indent:48px;"><font style="padding-bottom:16px;text-align:justify;font-family:inherit;font-size:10pt;padding-right:48px;">1.</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Repurchase.</font></div><div style="line-height:120%;padding-left:0px;padding-bottom:16px;text-align:justify;text-indent:96px;"><font style="padding-bottom:16px;text-align:justify;font-family:inherit;font-size:10pt;padding-right:48px;">(a)</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Purchase and Sale</font><font style="font-family:inherit;font-size:10pt;">. At the Closing (as defined below), the Company hereby agrees to repurchase from the Selling Stockholder, and the Selling Stockholder hereby agrees to sell and deliver, or cause to be delivered, to the Company, the Shares. The Purchase Price shall be paid in two installments by the Company, with $1,010,000 payable at the Closing (the &#8220;First Payment&#8221;) and the remaining $1,000,000 payable thereafter at such time as is mutually agreed upon by the Company, with the approval of the Compensation Committee, and the Selling Stockholder.</font></div><div style="line-height:120%;padding-left:0px;padding-bottom:16px;text-align:justify;text-indent:96px;"><font style="padding-bottom:16px;text-align:justify;font-family:inherit;font-size:10pt;padding-right:48px;">(b)</font><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Closing</font><font style="font-family:inherit;font-size:10pt;">. Subject to the terms and conditions of this Agreement and the delivery of the deliverables contemplated by Section 1(c) of this Agreement, the closing of the sale of the Shares (the &#8220;Closing&#8221;) will take place on November 6, 2019, via the exchange of deliverables, or such other time, date or place as shall be agreed upon by the parties.</font></div><div style="line-height:120%;padding-left:0px;padding-bottom:16px;text-align:j