December
      12, 2006





Mr.
      Gary
      S. Rich


412
      Lukes
      Wood Road


Pound
      Ridge, NY 10576





Dear
      Gary:





Some
      time
      ago, you expressed your intent, due to personal reasons, to depart The Reader’s
      Digest Association, Inc. (the “Company”) and establish a consulting business
      focusing on executive coaching. We subsequently discussed management’s strong
      desire that you remain as President of QSP, Inc. (“QSP”). Following these
      discussions, you have expressed your willingness to continue as President of
      QSP
      and remain employed by the Company for a period of time that would ensure a
      smooth leadership transition, assist the Company in its succession planning
      and
      guide QSP during this time, subject to and in accordance with the
      following:





|1. | You
              will continue in the employ of the Company, and subject to paragraph
              11
              below, the Company agrees to employ you, from the Effective Date (as
              defined in Paragraph 12 of this Letter Agreement) through and including
              January 19, 2007 (the “Date of Separation”). Your employment with the
              Company will cease as of the Date of Separation. From the Effective
              Date
              to the Date of Separation, you will continue to receive your current
              base
              salary and will continue to participate in and receive benefits under
              all
              other health and welfare benefit plans and policies generally applicable
              to employees of the Company, including the plans and policies in which
              you
              currently participate (except as otherwise specifically provided herein),
              subject to and in accordance with applicable plans and policies, as
              in
              effect from time to time.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|2. | From
              the Effective Date to the Date of Separation, you will continue to
              report
              to the Company’s Chief Executive Officer. The Company intends to announce
              the change in QSP leadership on or around December 8, 2006. After that
              announcement, you will be available, as needed, and you will prepare
              for
              and attend the QSP sales meeting in Dallas, Texas from January 3-January
              7, 2007. In addition, you will assist the Company’s Chief Executive
              Officer (or his designee) in the transition of QSP’s leadership, as
              requested. Should the Company request at any time after the Effective
              Date
              and prior to your Date of Separation, you will resign your offices
              with
              QSP and its subsidiaries and affiliates and you will remain an employee
              of
              the Company performing such other duties relating to QSP’s businesses as
              requested by the Company’s Chief Executive Officer. Such resignation will
              not affect your compensation and benefits as provided in paragraph
              1.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------







|3. | You
              will remain a participant in the Company’s 2001 Income Continuation Plan,
              as in effect from time to time, from the Effective Date to the Date
              of
              Separation.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|4. | All
              outstanding equity grants of the Company, including but not limited
              to
              stock options, restricted shares and restricted stock units, will be
              forfeited upon your Date of Separation in accordance with their
              terms.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|5. | Following
              the Date of Separation, you will be eligible to continue benefits under
              the Company’s medical and dental plans in accordance with the Consolidated
              Omnibus Budget Reconciliation Act of 1986 (“COBRA”). More details
              concerning your rights and obligations under COBRA will be sent to
              you
              from our COBRA administrator, Aetna COBRA Billing, under separate cover.
              2007 rates are attached as Exhibit A.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|6. | Accrued
              and unused vacation pay, totaling four weeks of your base salary, will
              be
              paid to you promptly after the Date of
              Separation.
|-- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|7. | In
              recognition of your contribution to QSP’s performance and in furtherance
              of QSP’s goals, the Company will pay to you after the completion of the
              Fall 2006 selling season and final confirmation of financial results
              for
              that period, an amount not less than $200,000 and not greater than
              $350,000 based on QSP’s net magazine revenue for the first half of Fiscal
              Year 2007, in accordance with Exhibit B attached hereto. Such payment
              will
              be made promptly after the filing with the U.S. Securities and Exchange
              Commission of the Company’s Form 10-Q for the quarter ended December 31,
              2006.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|8. | You
              will provide consulting services to the Company as described in Exhibit
              C,
              from the Separation Date through December 31, 2007. In consideration
              for
              performing such services you shall receive $150,000 on or around January
              19, 2007 and $150,000 on or around April 1,
              2007.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|9. | You
              will execute a Noncompetition, Nonsolicitation and Confidentiality
              Agreement in substantially the form attached as Exhibit
              D.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|10. | The
              Company may terminate you for any act defined as “Cause” by the Terms and
              Conditions of the stock option award granted to you by the Company
              on
              August 12, 2005. In the event you are terminated by the Company for
              Cause
              or resign from the Company prior to the Date of Separation, you will
              cease
              to receive any payments or benefits set forth in this Letter
              Agreement.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|11. | The
              Termination Agreement dated as of April 23, 2001, as amended to date,
              between you and the Company will terminate upon the Effective Date,
              and
              thereafter you will not be eligible for any benefits or payments
              thereunder.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




|12. | This
              Letter Agreement will not become valid, binding and enforceable until
              the
              date that it is duly executed by both of the parties hereto (the
              “Effective Date”). Upon the Effective Date, this Letter Agreement will
              constitute a valid and binding agreement between the parties, enforceable
              in accordance with its terms. This letter agreement will be governed
              by
              and interpreted in accordance with the laws of the State of New York
              applicable to contracts executed in and to be wholly performed within
              that
              State. This letter agreement may be amended or modified only by a written
              agreement duly executed by both of the parties
              hereto.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------




Please
      confirm your understanding and agreement with the above terms by signing on
      the
      line below and returning both copies to me. I will return a fully executed
      copy
      to you for your records.





Sincerely,/s/
                  Lisa A. CribariLisa
                  A. CribariVice
                  President, Global Human ResourcesACCEPTED
                  AND AGREED TO:/s/
                  Gary S. RichGARY
                  S. RICHDATED:
                  December 20, 2006
 Attachments


Exhibit
      A-COBRA Rates


Exhibit
      B-Incentive Performance Scale


Exhibit
      C- Description of Consulting Services


Exhibit
      D- Noncompetition, Nonsolicitation and Confidentiality Agreement