| 1. | Termination                of Employment |
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| 1.1 | The                Company may terminate your employment at any time, with or without                stated                reason. You shall receive the benefits provided hereunder upon one                of the                following terminations (each, a “Qualifying Termination”): (a) the                termination of your employment by you for Good Reason (as defined                in                Section 1.2), or (b) the termination of your employment by the Company,                unless such termination is for Cause (as defined in Section 2.4)                or as a                result of Total Disability (as defined in the Company’s Long-Term                Disability Plan) or death. Any termination by you shall be communicated                by                written notice indicating the termination provision in this Agreement                relied upon, if any, and the date of termination; provided                that the date of termination shall in no event be earlier than ten                (10)                business days after the date on which such notice of termination                is                effective pursuant to Section 14.1 hereof (the “Date of                Termination”). |
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| 1.2 | For                purposes of this Agreement, “Good Reason” shall mean the occurrence of                either of the following without your express written                consent: |
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|   | (a) | a                reduction by the Company in your annual base salary or your annual                target                bonus opportunity under the Company’s** **Management                Incentive Compensation Plan or the Company’s Senior Management Incentive                Plan, as applicable (each, as applicable, the “Annual Incentive Plan”),                each as in effect on the date of this Agreement or as each may be                increased from time to time, unless such reduction is part of and                consistent with a management-wide or Company-wide cost cutting program,                and then only if the percentage of your reduction is no greater than                that                of the other management personnel;                or |
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|   | (b) | a                relocation to an office located anywhere other than within seventy-five                (75) miles of your current primary office, except for required travel                on                Company business to an extent substantially consistent with your                then                current business travel                obligations. |
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| 1.3 | Any                termination of your employment by you for Good Reason shall be made                within                ninety (90) days after your knowledge of the occurrence of the event                constituting Good Reason. |
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| 2. | Compensation                Upon Termination |
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| 2.1 | If                your employment shall be terminated pursuant to a Qualifying Termination,                you shall receive the following payments and benefits for the one-year                period following the Date of Termination, if your grade level is                19 or 20                (or the equivalent) as of your Date of Termination, and for the two-year                period following the Date of Termination, if your grade level is                21 or                above (or the equivalent) as of your Date of Termination (in each                case,                such period, as applicable, shall be referred to as the “Severance                Period”): |
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|   | (a) | your                highest annual base salary in effect at any time during the 12-month                period immediately prior to the Date of Termination,                plus |
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|   | (b) | the                higher of the following: |
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|   | (i) | the                highest amount paid to you under the Annual Incentive Plan, during                the                three (3) plan years most recently ended prior to the Date of Termination;                or |
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|   | (ii) | your                annual target bonus award, if any, under the Annual Incentive Plan                for the                fiscal year in which the Date of Termination                occurs. |
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| 2.2 | If                your employment shall be terminated pursuant to a Qualifying Termination,                the Company shall maintain in full force and effect, for your continued                benefit for the Severance Period, all medical, dental and group life                insurance plans in which you participated immediately prior to the                Date of                Termination, provided that your continued participation is permissible                under the general terms and conditions of such welfare plans, and                that you                continue to make all required employee contributions under each such                plan;                provided,                that any amendment or termination of such plans during the Severance                Period with respect to the active employees may, in the Company’s                discretion, modify your continued benefit under such plans. In the                event                that your participation in any such welfare plan is barred or in                the event                that your participation in any such plan would have adverse consequences                for you, the Company shall provide you with benefits substantially                similar                to those which you would have been entitled to receive under such                welfare                plans had your participation not been barred or had you not potentially                suffered such adverse consequences. The continued coverage under                this                Section 2.2 shall apply to each of your eligible dependents who are                participating in such welfare plans as of the Date of Termination,                unless                such dependents cease to remain eligible. Benefits under this Section                2.2                shall cease if and to the extent, by virtue of your employment with                another employer, you become eligible under another employer’s plan or                plans for medical, dental or group life insurance benefits, as the                case                may be. Your eligibility for “COBRA” continuation coverage under                Section 4980B of the Internal Revenue Code of 1986, as amended (the                “Code”) shall commence immediately following the end of the Severance                Period or upon the cessation of your medical benefits from the Company                pursuant to the preceding sentence, as                applicable. |
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| 2.3 | If                your employment shall be terminated pursuant to a Qualifying Termination,                then you shall receive a lump sum payment within ten (10) business                days                following the Date of Termination equal to the product of (a) your                annual target bonus for the fiscal year in which your Date of Termination                occurs and (b) a fraction, the numerator of which is the number of                days in the fiscal year in which the Date of Termination occurs through                the Date of Termination and the denominator of which is                365. |
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| 2.4 | If                your employment shall be terminated for Cause, the Company shall                pay you                your base salary earned through the Date of Termination, and the                Company                shall have no further obligations to you under this Agreement. In                addition, if your employment shall be terminated for Cause and you                are a                participant in The Reader’s Digest Association, Inc. Executive Cash                Balance Plan (the “Executive Cash Balance Plan”) immediately prior to your                Date of Termination, you will not be entitled to and will forfeit                any                benefits under Executive Cash Balance Plan. For purposes of this                Agreement, “Cause” shall mean termination of your employment occurring by                reason of your: |
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|   | (a) | embezzlement; |
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|   | (b) | chronic                unexcused absence; |
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|   | (c) | proven                dishonesty; |
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|   | (d) | fraud; |
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|   | (e) | conviction                of, or plea of guilty or nolo contendere                to, a felony or another charge involving moral turpitude; |
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|   | (f) | improper                communication of confidential information obtained in the course                of                employment; or |
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|   | (g) | material                violation of Company rules, including but not limited to a material                violation of the Company’s Proprietary and Confidential Information Policy                or a material violation of the Company’s Ethical, Legal and Business                Conduct Policies or an action that would have constituted a material                violation of such Policy or Ethical, Legal and Business Conduct Policies                if you had continued to be employed by the                Company. |
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| 3. | Long-Term                Incentive Plan Benefits |
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| 3.1 | If                your employment shall be terminated pursuant to a Qualifying Termination,                you shall have the right to exercise your outstanding stock options                and                stock appreciation rights under the Company’s 1989 and 1994 Key Employee                Long Term Incentive Plans or any successor plans (the “Long Term Incentive                Plans”) to the extent they are exercisable as of the Date of Termination.                Such stock options and stock appreciation rights shall remain exercisable                following the Date of Termination pursuant to the terms of the applicable                Long Term Incentive Plan and award                agreement. |
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| 3.2 | If                your employment shall be terminated pursuant to a Qualifying Termination,                your outstanding awards (other than stock options and stock appreciation                rights) under the Long Term Incentive Plans shall vest or be forfeited                (and be payable, if not forfeited) upon or following the Date of                Termination in accordance with the terms of the applicable Long Term                Incentive Plan and award agreement. |
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| 4. | Pension                Benefits and Retiree Medical                Benefits |
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| 4.1 | The                provisions of this Section 4 shall govern your benefits under any                of the                Nonqualified Plans (as defined in the next sentence) in which you                are a                participant immediately before a Qualifying Termination of your                employment, notwithstanding any provision to the contrary in the                Nonqualified Plans. The “Nonqualified Plans” means The Readers Digest                Association, Inc. Executive Retirement Plan (the “Executive Retirement                Plan”), The Reader’s Digest Association, Inc. Executive Cash Balance Plan                (the “Executive Cash Balance Plan”) and the Excess Benefit Retirement Plan                of The Reader’s Digest Association, Inc. (the “Excess Cash Balance                Plan”). |
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| 4.2 | If                your employment shall be terminated pursuant to a Qualifying Termination                and you are a participant in the Executive Retirement Plan immediately                before the Qualifying Termination, you shall be treated, for purposes                of                eligibility for and vesting of benefits (but not for purposes of                benefit                accrual) under the Executive Retirement Plan, as if you had remained                an                active employee during the Severance Period; however, if you meet                the                early retirement conditions under Section 4.2 of the Executive Retirement                Plan, but do not receive the consent of the Compensation Committee                of the                Board, your accrued Normal Retirement Benefit (as defined in the                Executive                Retirement Plan) shall vest in                full. |
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| 4.3 | If                your employment shall be terminated pursuant to a Qualifying Termination                and you are a participant in the Excess Cash Balance Plan immediately                before the Qualifying Termination, your benefit under the Excess                Cash                Balance Plan shall be adjusted so that your combined benefits under                the                Excess Cash Balance Plan and The Reader's Digest Association, Inc.                Retirement Plan (the “Qualified Retirement Plan”) are equal to the                benefits to which you would have been entitled if, for purposes of                eligibility for and vesting of benefits (but not for purposes of                benefit                accrual), you were treated as if you had remained an active employee                of                the Company during the Severance                Period. |
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| 4.4 | Notwithstanding                the foregoing, if your employment shall be terminated pursuant to                a                Qualifying Termination and you are then entitled to any retirement                benefits under any of the Nonqualified Plans, the Company shall have                the                right, in its sole discretion, to pay you such benefits in a single                lump                sum cash payment within ten (10) days after the end of your Severance                Period, such** **lump                sum amount to be calculated using the actuarial assumptions specified                in                the second paragraph of the definition of “Equivalent Actuarial Value”                under the Qualified Retirement Plan, as in effect at the time of                the                calculation. |
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| 4.5 | Except                as specifically provided above, the time and form of payment of any                retirement benefits to which you may be entitled under any Nonqualified                Plan shall be as provided in such Nonqualified Plan; *provided*                that if your employment shall be terminated pursuant to a Qualifying                Termination, in no event shall any such benefits be payable to you                during                the Severance Period. |
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| 4.6 | If                your employment shall be terminated pursuant to a Qualifying Termination                and you are a participant in the Executive Retirement Plan immediately                before the Qualifying Termination you shall be treated, for purposes                of                eligibility for any retiree medical benefits under the Executive                Retirement Plan, as if you had remained an active employee of the                Company                during the Severance Period. In the event that your participation                in such                retiree medical plan is barred, or if your participation in such                plan                would have adverse consequences for you, the Company shall provide                you                with benefits substantially similar to those which you would have                been                entitled to receive under such retiree medical plan had your participation                not been barred or had you not suffered such adverse                consequences. |
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| 5. | If                your employment shall be terminated pursuant to a Qualifying Termination,                you shall be entitled to outplacement counseling services at the                Company’s                sole expense commensurate with your position as customarily provided                by                the Company. |
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| 6. | Other                Severance Arrangements |
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| 6.1 | This                Agreement constitutes the entire contract between the parties relating                to                the subject matter hereof and supersedes any and all prior agreements                or                understandings, written or oral, regarding the subject matter                hereof. |
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| 6.2 | Severance                payments and benefits hereunder shall be in lieu of other severance                or                termination payments and benefits under any other severance plan,                policy,                agreement or arrangement of the Company or its affiliates or under                any                individual agreement, other than the 2001 Income Continuation Plan                or                Income Continuation Plan, in each case, if applicable. Any severance                payments and benefits under this Agreement shall be reduced by the                amount                of any payments and benefits payable to you under the Income Continuation                Plan**.** |
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| 7. | The                payment of any amounts or benefits under this Agreement are expressly                conditioned on the receipt by the Company from you of a duly executed                General Waiver and Release of Claims in the form satisfactory to                the                Company, the repayment by you of any outstanding advances or loans                due the                Company and the return by you of all Company                property. |
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| 8. | Any                reference to a specific policy, plan or program in this Agreement                shall be                deemed to include any similar policy, plan or program of the Company                then                in effect that is the predecessor of, the successor to, or the replacement                for, such specific policy, plan or                program. |
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| 9. | The                Company may withhold from any benefits payable under this Agreement                all                federal, state, local or other applicable taxes as shall be required                pursuant to any law or governmental regulation or                ruling. |
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| 10. | In                the event of your death while any amounts are still payable to you                under                this Agreement, the Company shall pay all such unpaid amounts to                your                designated beneficiary or, if none has been designated, to your                estate. |
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| 11. | You                acknowledge that (a) prior to executing this Agreement, you had an                opportunity to consult with an attorney of your choosing and review                this                Agreement with such counsel, (b) you are executing this Agreement                knowingly and voluntarily and (c) you understand all of the terms                set                forth herein. |
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| 12. | In                the event the Company terminates your employment for Cause and you                dispute                the Company’s right to do so or you claim that you are entitled to                terminate your employment for Good Reason and the Company disputes                your                right to do so, a mediator acceptable to you and the Company will                be                appointed within ten (10) days to assist in reaching a mutually                satisfactory resolution, but will have no authority to issue a binding                decision. Such mediation must be concluded within sixty (60) days                of the                Date of Termination or claim to termination for Good Reason. You                agree                that you will not institute any legal proceeding relating to the                matter                until the conclusion of such                mediation. |
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| 13. | Acts                Detrimental to the Company |
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| 13.1 | You                agree that you will not engage in any Detrimental Activity during                the                Severance Period. |
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|   | (a) | For                purposes of this Agreement, Detrimental Activity shall mean: (i)                the                disclosure to anyone outside the Company or its affiliates, or the                use in                other than the Company’s or its affiliate’s business, without written                authorization from the Company, of any confidential information or                proprietary information, relating to the business of the Company                or its                affiliates, acquired by you during employment with the Company or                its                affiliates; (ii) activity while employed that results, or if known                could                result, in termination of your employment that is classified by the                Company as a termination for Cause as provided in Section 2.4 above;                (iii)                any attempt, directly or indirectly, to solicit, induce or hire (or                the                identification for solicitation, inducement or hire) any non-clerical                employee of the Company or its affiliates to be employed by, or to                perform                services for, you or any person or entity with which you are associated                (including, but not limited to, due to your employment by, consultancy                for, equity interest in, or creditor relationship with such person                or                entity) or any person or entity from which you receive direct or                indirect                compensation or fees as a result of such solicitation, inducement                or hire                (or the identification for solicitation, inducement or hire) without,                in                all cases, written authorization from the Company; (iv) any attempt,                directly or indirectly, to solicit in a competitive manner any current                or                prospective customer (other than the ultimate consumer) or advertiser                of                the Company or its affiliates without, in all cases, written authorization                from the Company; (v) your Disparagement (as defined below), or inducement                of others to do so, of the Company or its affiliates or their past                and                present officers, directors, employees or products; (vi) without                written                authorization from the Company, the rendering of services for any                organization, or engaging, directly or indirectly, in any business,                which                is competitive with the Company or its affiliates, or which organization                or business, or the rendering of services to such organization or                business, is otherwise prejudicial to or in conflict with the interests                of                the Company or its affiliates, provided,                however,                that the only organizations and businesses which shall be covered                by this                subsection (vi) shall be those set forth on Exhibit A hereto (which                list                may be changed or expanded by the Company at any time on 90 days’ written                notice to you which notice shall become effective 90 days after the                giving                of such notice, if you are then employed by the Company or any Designated                Subsidiaries (as defined below)); or (vii) any other conduct or act                determined by the Committee in its sole discretion, to be injurious,                detrimental or prejudicial to any interest of the Company or its                affiliates. For purposes of subparagraphs (i), (iii), (iv) and (vi)                above,                the Chief Executive Officer, the most senior Human Resources officer                and                the most senior legal officer of the Company shall each have authority                to                provide you with written authorization to engage in the activities                contemplated thereby and no other person shall have authority to                provide                you with such authorization. |
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|   | (b) | “Disparagement”                includes, without limitation, comments or statements to the press,                the                Company’s or its affiliates’ employees or any individual or entity with                whom the Company or its affiliates has a business relationship which                would                adversely affect in any manner: (i) the conduct of the business of                the                Company or its affiliates (including, without limitation, any products                or                business plans or prospects), or (ii) the business reputation of                the                Company or its affiliates, or any of their products, or their past                or                present officers, directors or                employees. |
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|   | (c) | “Designated                Subsidiary” shall mean one of such subsidiaries of the Company, 80 percent                or more of the voting capital stock of which is owned, directly or                indirectly, by the Company, which are designated from time to time                by the                Board. |
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| 13.2 | In                the event you engage in a Detrimental Activity prior to, or during                the one                (1) year period following the payment of any amount hereunder, the                Company                shall be entitled to (a) not make any such payment otherwise required                to                be made hereunder following the Company's knowledge of your Detrimental                Activity and (b) recover from you at any time within two (2) years                after                any payment made hereunder prior to the Company's knowledge of your                Detrimental Activity, and you shall pay over to the Company, the                full                amount of any such payment made, and the Company shall be entitled                to                set-off against the amount of any such payment any amount owed to                you by                the Company or its affiliates. Furthermore, if you do not pay over                to the                Company within twenty (20) days of demand any payment hereunder,                such                amount shall thereafter bear interest at the maximum rate permitted                by law                and you shall be liable for all of the Company's costs of collection,                including but not limited to, reasonable legal                fees. |
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| 13.3 | In                addition, you agree that any breach or threatened breach of Section                13.1                shall entitle the Company to apply for and to obtain injunctive relief,                which shall be in addition to any and all other rights and remedies                available to the Company at law or in                equity. |
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| 13.4 | All                of your rights and benefits under this Agreement shall cease upon                any                breach by you of Section 13.1 of this                Agreement. |
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| 14. | Miscellaneous |
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| 14.1 | Notices                and other communications provided for herein shall be in writing                and shall                be effective upon delivery addressed as                follows: |
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| 14.2 | This                Agreement shall be binding upon and shall inure to the benefit of                the                parties hereto and their respective successors and assigns; provided,                however,                that this Agreement may not be assigned by either party without the                consent of the other party. |
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| 14.3 | Any                provision of this Agreement that is prohibited or unenforceable in                any                jurisdiction shall, as to such jurisdiction, be ineffective to the                extent                of such prohibition or unenforceability without invalidating the                remaining                provisions of this Agreement or affecting the validity or enforceability                of such provision in any other                jurisdiction. |
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| 14.4 | This                Agreement may be amended or modified only by a written agreement                duly                executed by both of the parties                hereto. |
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| 14.5 | This                Agreement shall 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. The parties hereby agree and consent to exclusive jurisdiction                of                any dispute under this Agreement in the federal or state courts of                Westchester County in New York State. |
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|                                                                                                                                                                                                                                                                                                             | Very                truly yours,                                                                                                                                                                                                                                                                                         |   |
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|                                                                                                                                                                                                                                                                                                             | The                Reader’s Digest Association, Inc.                                                                                                                                                                                                                                                               |   |
|                                                                                                                                                                                                                                                                                                             | By: /s/                Gary S Rich          Name:                 Gary S. Rich      Title:                    Senior Vice President,                         Human Resources |   |
| Agreed                to and accepted as of May 3, 2001                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                          |   |
| By:/s/                Michael A. Brizel         Name:                 Michael A. BrizeL     Title:                    Vice President and                       General Counsel |                                                                                                                                                                                                                                                                                                                          |   |

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