<PAGE>   1
                                                                    EXHIBIT 10.9


                          Classic Communications, Inc.
                                6151 Paluxy Road
                               Tyler, Texas 75703


                                               January 26, 2001



Mr. Steven E. Seach
10501 Coreopsis
Austin, TX 78733

                  Re:  Separation of Employment

Dear Mr. Seach:

         On behalf of Classic Communications, Inc. and Classic Cable, Inc.
(collectively, the "Company"), I accept your resignation from the board of
directors and your position of President and Chief Financial Officer of the
Company and subsidiaries to be effective as of November 28, 2000 (the
"Termination Date"). You acknowledge that your resignation is a voluntary
termination other than pursuant to Section 8(e) or 8(f) of your Employment
Agreement with the Company, dated July 28, 1999 (the "Employment Agreement").
This letter sets forth the terms and conditions of the termination of your
employment relationship with the Company.

         In consideration of the promises and undertakings reflected in this
letter agreement, you and the Company agree to the following arrangements:

         1. Payments. You shall be entitled to receive, in consideration for
your agreements hereunder (including, but not limited to, the continuation of
your non-competition and non-solicitation obligations pursuant to Section 10
below and in full satisfaction of the termination of the Employment Agreement),
one lump-sum cash payment in the amount of $152,788, subject to any applicable
withholding requirements, payable on February 28, 2001.

         2. Tower Bonus Plan. You will continue to be eligible to participate in
the Classic Communications, Inc. 2000 Tower Sale/Leaseback Incentive Bonus Plan

<PAGE>   2


Mr. Steven E. Seach
January 26, 2001
Page 2


(the "Tower Bonus Plan") based upon and in accordance with the terms and
conditions of the Plan and your award letter (a copy of which is attached to
this letter).

         3. Stock. The Company shall promptly remove from all of the shares of
Class B Common Stock that are held by you any legend that places restrictions on
their transferability.

         4. Stock Options. Pursuant to that certain Nonqualified Stock Option
Agreement between you and the Company, dated July 28, 1999, all of the vested
stock options held by you on the Termination Date shall remain exercisable until
30 days subsequent to the Termination Date and will be automatically terminated
and canceled after such date.

         5. Continuation of Medical Insurance. You will remain covered by your
current employer-provided health insurance plan without interruption until
February 28, 2001. Your termination date for purposes of the Consolidated
Omnibus Benefit Reform Act ("COBRA") shall be February 28, 2001. After February
28, 2001, you and your eligible dependents will be entitled to continuation of
health insurance coverage for eighteen months under federal law. At the
beginning of the COBRA continuation period, you shall assume all costs related
to COBRA payments or any other medical insurance coverage benefits, including
any applicable increase in premium.

         6. Automobile. The Company will transfer all of its interest in the
company automobile currently used by you and purchased partly by the Company,
effective as soon as reasonably practicable after you and the Company execute
this letter agreement.

         7. Life Insurance. Effective as soon as reasonably practicable after
you and the Company execute this letter agreement, the Company will assign to
you or your designee all of the Company's interest in the split dollar life
insurance policy issued by Pacific Life Insurance Company on which you are the
insured. You will be responsible for all costs associated with maintaining the
policy after the Termination Date.



                                       2
<PAGE>   3

Mr. Steven E. Seach
January 26, 2001
Page 3


         8. Barton Creek Country Club. To the extent permitted by the Barton
Creek Country Club, the Company assigns to you permanently and irrevocably for
your own use, effective as soon as reasonably practicable after you and the
Company execute this letter agreement, your membership in the Barton Creek
Country Club, including any and all bond or contribution that has been paid to
secure your membership. You agree that after the Termination Date, you will be
solely responsible for all costs associated with continued membership, and that
you will take all steps necessary to remove any reference to the Company and its
subsidiaries from the membership roster.

         9. Non-disparagement.

                  a. You agree that you will not intentionally make any
derogatory or disparaging statements about the Company or its past, present and
future affiliates, officers and employees that may adversely affect their
current or potential business reputation.

                  b. The Company agrees that it will not intentionally make any
derogatory or disparaging statements with regard to you or your employment with
the Company or the termination of your employment.

         10. Confidentiality, Non-Competition and Non-Solicitation. You
acknowledge that your obligations set forth in paragraphs 10 and 11 of the
Employment Agreement regarding your confidentiality, non-competition and
non-solicitation obligations to the Company will continue after the Termination
Date.

         11. Waiver and Release.

                  a. In consideration of the promises and benefits outlined
herein, you, on behalf of your heirs, executors, administrators, and assigns and
agents hereby knowingly and voluntarily release, acquit and forever discharge
the Company and any past, present and future affiliates, officers, directors,
employees, agents, legal representatives, successors, assigns and shareholders
from and against any and all claims and causes of action arising out of (i) your
employment by the Company or


                                       3
<PAGE>   4


Mr. Steven E. Seach
January 26, 2001
Page 4


termination therefrom, (ii) the Employment Agreement (including, without
limitation, any accrued and unpaid vacation time), (iii) any discrimination
claim whether or not arising under any local, state or federal law or
regulation, public policy or common law (including, without limitation, the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, the
Americans with Disabilities Act and the Older Workers Benefit Protection Act),
and (iv) any state, federal or local statute, regulation, public policy,
contract or tort principle in any way governing or regulating your employment or
the termination thereof, including claims under the Texas Employment
Discrimination Law, the Texas Commission on Human Rights Act, Labor Code Section
21.001, et. seq., and the Texas Disability Discrimination Law, whether known or
unknown, which could have been brought up to and including the date hereof,
including, but not limited to, any and all claims for damages, attorney's fees
and equitable relief which have been asserted, or could have been asserted;
provided, however, that this release shall not apply to any claim relating to
your enforcement of the matters described in this letter agreement and any
claims under any group benefit plan.

                  b. In consideration of the promises and benefits outlined
herein, the Company, on behalf of itself and its officers, directors,
subsidiaries, affiliates, assigns and agents hereby knowingly and voluntarily
releases, acquits and forever discharges you and your heirs, executors,
administrators, agents, legal representatives, successors and assigns from and
against any and all claims and causes of action arising out of (i) your
employment by the Company or your performance of your duties as a director,
officer, employee or shareholder in the Company or its subsidiaries or
affiliates, (ii) the Employment Agreement, or (iii) any claim arising out of, in
connection with or related to, in any way, any action taken by you in your
capacity of director, officer, employee, shareholder or authorized
representative of the Company or its subsidiaries or affiliates, whether known
or unknown, which could have been brought up to and including the date hereof,
including, but not limited to, any and all claims for damages, attorney's fees
and equitable relief which have been asserted, or could have been asserted;
provided, however, that this release shall not apply to any claim relating to or
arising out of (i) actions or omissions by you which are fraudulent or which
result from gross negligence, bad faith or willful misconduct or (ii) the
Company's enforcement of the matters described in this letter agreement.


                                       4
<PAGE>   5

Mr. Steven E. Seach
January 26, 2001
Page 5


                  c. You acknowledge that the Company has advised you to consult
with an attorney of your choosing prior to signing this letter agreement and
that you have twenty-one (21) days during which to consider the provisions of
this letter agreement, although you may sign and return it sooner. You further
acknowledge that you have been advised by the Company that you have the right
to revoke this letter agreement for a period of seven (7) days after signing it
and that this letter agreement shall not become effective or enforceable until
such seven (7)-day revocation period has expired. You acknowledge and agree
that, if you wish to revoke this letter agreement, you must do so in writing,
signed by you and received by the Company at its headquarters no later than 5:00
p.m. Central Standard Time on the seventh (7th) day after you have signed this
letter agreement. You acknowledge and agree that, in the event that you revoke
this letter agreement, you shall have no right to receive any payment to which
you would be entitled solely by reason of this agreement. You further
acknowledge and agree that you would not receive the enhanced payments set forth
in paragraphs 6, 7 and 8 hereof except for your signing of this letter agreement
and your fulfillment of your promises set forth in this letter agreement. You
understand and agree that the Company is under no obligation to offer such
payment or to consent to the release set forth in paragraph 11(b) of this letter
agreement and that you are under no obligation to consent to the release set
forth in paragraph 11(a) of this letter agreement. You represent that you have
read this letter agreement and understand its terms and that you enter into this
letter agreement freely, voluntarily, and without coercion.

         12. Indemnification. The Company hereby acknowledges and agrees that
nothing in this letter agreement is intended to modify or otherwise alter any
rights to indemnification pursuant to the Company's certificate of
incorporation or bylaws or your indemnification agreement dated July 28, 1999.

         13. Reimbursement of Expenses. Pursuant to the Company's regular
policies and procedures, the Company shall promptly reimburse you for business
expenses that you have incurred in the ordinary course of your employment on or
before the Termination Date. Please make a request for outstanding expenses not
later than thirty (30) days after the Termination Date.


                                       5
<PAGE>   6

Mr. Steven E. Seach
January 26, 2001
Page 6


         This letter agreement contains all the understandings between you and
the Company and supersedes all undertakings and agreements whether oral or in
writing previously entered into by you and the Company with respect to your
employment, compensation and the termination of your employment, including,
without limitation, the Employment Agreement (except that Paragraphs 10 and 11
of the Employment Agreement shall survive and are incorporated by reference in
this Agreement).

         I trust that you will find these arrangements satisfactory, and request
that you acknowledge your acceptance of these terms by signing and returning the
original copy of this letter agreement, a copy of which has been provided to you
for your convenience.


                                       6
<PAGE>   7

Mr. Steven E. Seach
January 26, 2001
Page 7


                                        Very truly yours,


                                        /s/ Dale Bennett
                                        ----------------------------------------
                                        Dale Bennett
                                        President and Chief Operating Officer

Accepted Hereby:



/s/ Steven E. Seach
----------------------------------
Steven E. Seach


cc:      Peter C. Krupp
         James P. Robinson III (via facsimile 512/651-7001)



                                       7