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EXHIBIT 10.1  

 
 

TAX SHARING AGREEMENT    

        THIS
TAX SHARING AGREEMENT ("Agreement") made as of August 1, 1993 by and among Affinity Group Holding, Inc., formerly known as Adams Publishing Acquisition Corporation
("AGH"), Affinity Group, Inc., formerly known as Adams TL Acquisition Corporation ("AGI"), TL Enterprises, Inc. ("TLE"), Trailer Life Enterprises, Inc. ("TLEI"), Camp Coast to
Coast, Inc. ("CCC"), VBI, Inc. ("VBI"), Golf Card Holding Corporation ("GCH"), Golf Card International Corp. (GCI"), Golf Card Resort Services, Inc. ("GCRS"), GSS
Enterprises, Inc. ("GSS"), National Boat Owners Association, Inc. ("NBOA"), TL Music, Inc. ("TLMI"), and Venture Enterprises, Inc. ("VEI"); 

        WHEREAS,
AGH owns 100% of the issued and outstanding shares of the voting common stock of AGI, and AGI, directly or indirectly, owns 100% of the issued and outstanding shares of the
voting common stock of each of TLE, TLEI, CCC, VBI, GCH, GCI, GCRS, GSS, NBOA, TLMI and VEI; 

        WHEREAS,
as of the date of this Agreement, all of AGH, AGI, TLE, TLEI, CCC, VBI GCH, GCI, GCRS, GSS, NBOA, TLMI and VEI constitute an affiliated group within the meaning of IRC
Section 1504 (a) of which AGH is the common parent corporation (AGI, TLE, TLEI, CCC, VBI, GCH, GCI, GCRS, GSS, NBOA, TLMI and VEI being jointly hereinafter sometimes referred to as the
"Subsidiaries"); 

        WHEREAS,
AGH and certain of the Subsidiaries were parties to a tax sharing agreement dated as of December 23, 1988, as amended (the "Former Agreement"); 

        WHEREAS,
contemporaneously herewith, certain of the parties to the Former Agreement have merged and there has occurred a corporate reorganization affecting the parties to the Former
Agreement; 

        WHEREAS,
it is the intention of the members of the Group (hereinafter defined) that this Agreement provide a consistent and uniform method for allocating the Group's consolidated
liability for Federal
Income Taxes to each member of the Group and replace and restate, in its entirety, the Former Agreement for such members of the Group which were parties to the Former Agreement by herein memorializing
in writing the only agreement of the parties hereto regarding the respective contributions of the Subsidiaries to the payment of the income tax liability of the Group. 

        NOW,
THEREFORE, AGH and the Subsidiaries agree as follows: 

        1.     For
such members of the Group which are parties to the Former Agreement, the Former Agreement shall be, and hereby is, terminated effective the date hereof, this
Agreement replacing and restating the Former Agreement in its entirety for such parties. 

        2.    Definitions.    

        As
used herein, the term: 

        2.1.  "Current
Allocation" shall, for any Taxable Period, mean the amount of the Group's Federal Income Tax liability for such period which is allocated to each Group member
under Regulations Section 1.1502-33(d)(2)(ii) and 1.1552-1(a)(2). For purposes of this Agreement, the "fixed percentage" referred to in Regulations
Section 1.1502-33(d)(2)(ii)(b) shall be 100%. 

        2.2.  "Current
Tax" shall, for any Taxable Period, mean the amount of each Group member's Current Allocation if the Current Allocation is a positive amount. 

        2.3.  "Federal
Income Taxes" shall mean the corporate income taxes imposed by the Code and any interest or penalties payable with respect thereto. 

        2.4.  "Fiscal
Year" means the fiscal year of AGH. 

        2.5.  "Group"
shall mean the affiliated group, as defined in IRC Section 1504 (a), of which AGH is the common parent and includes but is not limited to the
Subsidiaries. 

 

        2.6.  "IRC"
or "Code" means the Internal Revenue Code of 1986, as amended. 

        2.7.  "Regulations"
means the regulations promulgated pursuant to the Code. 

        2.8.  "State
Unitary Taxes" shall mean any unitary business income, franchise and similar taxes imposed by any state or local taxing authority in the United States or any
subdivision thereof, and any interest or penalties payable with respect thereto. 

        2.9.  "Taxable
Period" shall mean each Fiscal Year or portion thereof in respect of which a member of the Group is included in a consolidated federal income tax return filed
pursuant to this Agreement. 

        3.    Payment of Taxes.    

        3.1.  Each
member of the Group hereby agrees to join in the filing of a consolidated federal income tax return for any Taxable Period for which the Group is required or
permitted to file such a return. Each member of the Group shall execute such consents as may be necessary to carry out the purposes of this Section and agrees to execute and deliver to AGH such
instruments as AGH may reasonably request in connection therewith. 

        3.2.  Any
Federal Income Taxes payable under any return filed pursuant to this Section shall be paid by AGH on behalf of the members of the Group in accordance with and
subject to the terms of this Agreement. AGH agrees to make such payment, file such returns, consents, elections and other documents and take such other action on behalf of and at the expense of each
member of the Group as may be necessary or appropriate in connection with the matters contemplated by this Section. Each member of the Group hereby agrees to pay to AGH all direct and incidental costs
and expenses incurred by AGH or at AGH's direction in connection with the matters contemplated under this Agreement, including but not limited to fees and costs of accountants, attorneys or other
consultants. 

        3.3.  The
members of the Group which are subject to State Unitary Taxes agree to join in the filing of returns, execute consents and make payments in the same manner as
hereinbefore provided in this Section 3 with respect to Federal Income Taxes. 

        4.    Allocation and Reimbursement of Taxes.    

        4.1.  Each
member of the Group is responsible, and hereby agrees, to estimate its Current Tax prior to the end of the Taxable Period. The calculation of the Current Tax shall
be made using the prevailing U.S. statutory rates under IRC Sections 11, 55, 59A, and 1201. Each Group member that is a direct or indirect subsidiary of AGI shall pay to AGI the amount of its
estimated Current Tax on or before the date that payment with respect thereto (including any estimate thereof) would have been required to be paid to the appropriate taxing authorities had it not been
a member of the Group and AGI shall pay to AGH the amount of its estimated Current Tax on or before the date that payment with respect thereto (including any estimate thereof) would have been required
to be paid to the appropriate taxing authorities had AGI not been a member of the Group. In the event that any member of the Group pays any Federal Income Taxes which would have been payable by
another member of the Group had such party not been a member of the Group, such other member of the Group shall promptly reimburse the member paying such taxes for the full amount so paid. 

        4.2.  Payments
due pursuant to Section 4.1 hereof with respect to a Taxable Period shall be computed quarterly based upon the annualized estimate of the gross income,
losses, deductions, expenses, exemption, credits and allowances of each member of the Group. At the end of the Taxable Period each member of the Group shall prepare or cause to be prepared and shall
forward to AGH (on such time schedule as may be established by AGH), Federal Tax Form 1120 (or 

2

 

successors
thereto) and such schedules as may be appropriate in support thereof (all as if such Subsidiary were not a member of the Group). 

        4.3.  Amounts
payable under this Agreement shall be paid promptly upon demand therefor by AGH. Any payments made on the basis of an estimate shall be adjusted within
90 days after the end of the Tax Period. 

        4.4.  The
members of the Group that are subject to State Unitary Taxes agree to the allocation of State Unitary Taxes, the estimate of the amount thereof and the payment of
such taxes in the same manner as hereinbefore provided in this Section 4 with respect to Federal Income Taxes. 

        5.    Tax Adjustment.    

        In
the event of any adjustment to the consolidated tax returns as filed (by reason of an amended return, claim for refund, or an audit by the Internal Revenue Service), the liability of
the member of the Group with respect to which such adjustment has been made, shall be redetermined to give effect
to any such adjustment as if it had been made as part of the original computation of tax liability under Section 4 hereof and payments or refunds as among the Group members shall be made
accordingly. 

        6.    New Group Members.    

        If
at any time a Group member other than AGH acquires or creates one or more subsidiary corporations that are, under IRC Section 1504, includable corporations of the Group, such
subsidiary corporations shall be subject to this Agreement without further action being required on the part of such subsidiary corporation or the members of the Group and, thereupon, all references
herein to the "Group" shall apply to such subsidiary corporations as if they had been original signatories hereto and such subsidiary corporations shall be considered a part of the "Group" for all
purposes hereof. If at any time AGH acquires or creates one or more subsidiary corporations that are, under IRC Section 1504, includable corporations of the Group, such subsidiary corporations
shall be subject to this Agreement only upon the affirmative election to such effect by AGH. Each member of the Group other than AGH hereby designates and appoints AGH its agent and
attorney-in-fact to amend this Agreement to include any such subsidiary corporation as a member of the Group. 

        7.    General.    

        7.1.  Successors. This Agreement shall be binding on any successor, by merger, acquisition of assets or otherwise, to any
member of the Group to the same extent as if such successor had been an original party to this Agreement. 

        7.2.  Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 

        7.3.  Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be
deemed to be an original, but all of which taken together shall constitute one and the same instrument. 

        7.4.  Power of Attorney. Each member of the Group hereby appoints and constitutes AGH its agent and true and lawful
attorney-in-fact (i) for the purpose of filing any consent, election or other document and taking any other action as may be necessary or appropriate in connection with
the matters contemplated by this Agreement and (ii) in its name, place and stead to make, execute, sign, acknowledge and file such instruments as may be necessary to carry out the provisions of
this Agreement. The foregoing grant of authority is hereby declared to be irrevocable and a power coupled with an interest. Each member of the Group agrees to reimburse AGH for all expenses, including
legal and accounting expenses, incurred in connection with the matters contemplated by this Agreement, including in connection with the audit of any return filed pursuant hereto. 

3

 

        7.5.  Interpretation. Any provision of this Agreement which 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 hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law, the parties hereto waive any provision of law which
renders any provision hereof prohibited or unenforceable in any respect. No term or provision of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument of
equal formality signed by the parties hereto. No waiver of a breach of any provision hereof or a default under any provision hereof shall be deemed a waiver of such provision or of any subsequent
breach or default of any kind or nature. This Agreement embodies the entire understanding of the parties and there are no further or other agreements or understandings, written or oral, in effect
between the parties, relating to the subject matter hereof. The division of this Agreement into sections is only a matter of convenience for reference and shall not define or limit any of the terms or
provisions hereof. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the date first above written. 

	 	 	AFFINITY GROUP HOLDING, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

AFFINITY GROUP, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

TL ENTERPRISES, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

TRAILER LIFE ENTERPRISES, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

4

 

	

 	
 	

CAMP COAST TO COAST, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

GOLF CARD HOLDING CORPORATION
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

GOLF CARD INTERNATIONAL CORP.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

GOLF CARD RESORT SERVICES, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

GSS ENTERPRISES, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

VBI, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

5

 

	

 	
 	

NATIONAL BOAT OWNERS ASSOCIATION, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

TL MUSIC, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

	

 	
 	

VENTURE ENTERPRISES, INC.
	

 	
 	

By	

/s/  MARK J. BOGGESS      

	 	 	Its	V.P.

6

 
 

AMENDMENT TO TAX SHARING AGREEMENT    
    

        THIS AMENDMENT TO TAX SHARING AGREEMENT (the "Amendment") made as of March 26, 2004 by and among AGI Holding Corp. (the "Parent"), Affinity Group
Holding, Inc., Affinity Group, Inc., Golf Card International Corp., Golf Card Resort Services, Inc., Camping World, Inc., CWI, Inc., Camping Realty, Inc.,
Camping World Insurance Services of Nevada, Inc., Camping World Insurance Services of Texas, Inc., CW Michigan, Inc., Camping World RV Sales, Inc., CWI
Funding, Inc., Camp Coast to Coast, Inc., Coast Marketing Group, Inc., Affinity Brokerage, Inc., Affinity Group Thrift Holding Corp., Affinity Road and Travel
Club, Inc., AGI Canada, Inc., Ehlert Publishing Group, Inc., Power Sports Media, Inc., GSS Enterprises, Inc., TL Enterprises, Inc., VBI, Inc., AGRP
Holding Corp., AGRP Management Corp., AGI Management Corporation and TL Music, Inc. (all such parties, other than the Parent, being herein referred to as the "Subsidiaries"); 

        WHEREAS,
the parties hereto have entered into (or automatically become parties to) a Tax Sharing Agreement (the "Tax Sharing Agreement") dated as of August 1, 1993 pertaining,  inter alia, to the allocation
and payment of Federal Income Taxes and State Unitary Taxes (capitalized terms used herein and not otherwise defined
herein shall have the meanings given to them in the Tax Sharing Agreement); 

        WHEREAS,
the Parent proposes to file amended federal and state income tax returns for the Fiscal Years of the Group ending December 30, 2001 and December 29, 2002 (the
"Amended Returns") with the appropriate federal and state taxing authorities (the "Tax Authorities") to, inter alia, correct errors in the returns as
heretofore filed by the Parent with the Tax Authorities for such periods (the "Original Returns"); 

        WHEREAS,
one or more Subsidiaries may incur (i) costs and expenses in connection with or a result of the Amended Returns, or (ii) additional taxes (including sales and use
taxes), interest or penalties as a result of, or in connection, with the Amended Returns (jointly a "Loss"), it being intended that a "Loss" include amounts required to be paid by a Subsidiary for any
Taxable Period in excess of the amounts paid by such Subsidiary under the Tax Sharing Agreement in respect of the Original Returns, whether the "Loss" is occasioned as a result of actions taken by a
Tax Authority or otherwise, provided such "Loss" arises in connection with or as a result of matters reported, or positions taken, in the Original Returns or Amended Returns; 

        WHEREAS
the Original Returns were prepared at the direction of the Parent and the Parent accepts responsibility for the accuracy and completeness thereof; 

        WHEREAS,
as a condition to the filing of the Amended Returns the Subsidiaries have demanded that the Parent indemnify and forever hold such members of the Group harmless from and against
the Losses; 

        WHEREAS
the Parent is willing to undertake such indemnification on the terms set forth hereinafter; 

        NOW,
THEREFORE, in consideration of the foregoing premises, the mutual covenants hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are
acknowledged, the parties hereto hereby agree as follows: 

        1.     The
Parent hereby agrees, at its expense, to promptly file the Amended Returns. The Parent warrants that the Amended Returns as filed with the Tax Authorities will be
complete, accurate and properly reflect the federal and state income taxes payable by the Group for the Taxable Periods involved. 

        2.     The
Subsidiaries agree to cooperate with the Parent in the preparation of the Amended Returns and provide such information to the Parent as the Parent may reasonably
request in connection with the preparation and the filing thereof. 

        3.     In
the event of an audit, examination, review or appeal (an "Audit") of the Amended Returns by any Tax Authority, the Parent agrees to take such action and engage such
personnel, 

 

including
tax accountants and tax counsel, as may be necessary or appropriate in connection therewith, all as determined in the reasonable judgment of the Parent. The Subsidiaries agree to cooperate
with the Parent in any Audit and provide such information to the Parent as the Parent may reasonably request in connection with the Audit or any proceedings in connection therewith. 

        4.     The
Parent unconditionally and irrevocably agrees to indemnify and forever hold the Subsidiaries harmless from and against any and all Losses. The Parent agrees to pay to
any Subsidiary that incurs any Loss the amount thereof in cash upon demand by such Subsidiary. 

        5.     This
Amendment shall not be assigned or conveyed by any party hereto to any other person or entity without the prior written consent of the other parties hereto. Except
as so limited, this Amendment shall be binding and shall inure to the benefit of the parties hereto, their respective successors and assigns. Except for such successors and assigns, it is understood
that the benefits of this Amendment shall inure solely to the parties hereto and no third party shall be a beneficiary hereof, whether by implication, law or otherwise. This Amendment shall be binding
upon any new member of the Group, all as provided in Section 6 of the Tax Sharing Agreement, the provisions of which are incorporated herein by this reference thereto. 

        This
Amendment shall be construed and enforced in accordance with the laws of the State of California, such state being the domicile of the principal office of the Parent. This Amendment
supersedes all prior agreements between the parties hereto with respect to the subject matter hereof and constitutes the entire agreement between the parties hereto relating to the subject matter
hereof. This Amendment constitutes an amendment of the Tax Sharing Agreement in respect of the liabilities and responsibilities of the parties in respect of the Amended Returns. Except as so amended
and modified, the Tax Sharing Agreement shall remain in full force and effect and the parties hereto reaffirm their obligations thereunder. No waiver by any party of any provision hereof shall be
effective unless in writing. No waiver of any one occurrence shall be deemed a waiver of any other or similar occurrence unless specifically waived in writing. 

        This
Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. 

        All
notices, requests and other communications from any of the parties hereto to the other shall be given in the manner provided in the Tax Sharing Agreement. 

        The
parties hereto agree that any information designated by such party as confidential, shall be maintained as confidential by the others as such and each party agrees not to disclose
any such information to any person whatsoever other than is necessary to disclose such information to its own employees and other representatives, including tax accountants and legal counsel (and
shall advise such person of the confidential nature of the information) for the purpose of effecting the matters contemplated by this Amendment unless such information becomes otherwise publicly
available or such party is required to make such disclosure by order of a court or governmental agency. 

        Each
of the parties hereto agrees to execute and deliver such other and further documents as the others may reasonably require to effect the intent hereof. 

        In
the event of any dispute hereunder between the parties hereto, the party prevailing in any litigation instituted hereunder shall be entitled to recover from the other its costs and
expenses thereof, including, specifically, its reasonable attorneys fees. 

2

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and year first above written. 

	 	 	AGI HOLDING CORP.
	

 	
 	

By:	

/s/  PAUL E. SCHEDLER      
 Paul E. Schedler, Vice President

(the "Parent")
	

 	
 	

AFFINITY GROUP HOLDING, INC.

AFFINITY GROUP, INC.

GOLF CARD INTERNATIONAL CORP.

GOLF CARD RESORT SERVICES, INC.

CAMPING WORLD, INC.

CWI, INC.

CAMPING REALTY, INC.

CAMPING WORLD INSURANCE SERVICES OF NEVADA, INC.

CAMPING WORLD INSURANCE SERVICES OF TEXAS, INC.

CW MICHIGAN, INC.

CAMP COAST TO COAST, INC.

COAST MARKETING GROUP, INC.

AFFINITY BROKERAGE, INC.

AFFINITY ROAD AND TRAVEL CLUB, INC.

EHLERT PUBLISHING GROUP, INC.

POWER SPORTS MEDIA, INC.

GSS ENTERPRISES, INC.

TL ENTERPRISES, INC.

VBI, INC.

AGRP HOLDING CORP.

AGRP MANAGEMENT CORP.

TL MUSIC, INC.

CAMPING WORLD RV SALES, INC.

CWI FUNDING, INC.

AFFINITY GROUP THRIFT HOLDING CORP.

AGI MANAGEMENT CORPORATION

AGI CANADA, INC.
	

 	
 	

By:	

/s/  PAUL E. SCHEDLER      
 Paul E. Schedler, Vice President

("Subsidiaries")

3

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Exhibit 10.2  

 
 

PHANTOM STOCK AGREEMENT    
    

        THIS AGREEMENT, made and entered into as of the        day
of                        , 200    by and between  Affinity Group, Inc., a Delaware corporation (the "Company") and                        (the "Executive");
 

 
 

WITNESSETH    
    

        WHEREAS, the Company proposes to employ the Executive in the operations of the Company and the Company is desirous
of affording Executive incentives, in the form of phantom stock of the Company, in connection therewith; 

        NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the Company and
Executive hereby agree as follows: 

 
 

ARTICLE I    
    
    EMPLOYMENT    
    

        Section 1.1.    Employment.    The Company hereby employs the Executive
as                        of the Company to
perform such duties and discharge such functions in and about the business and affairs of the Company, or one or more of its subsidiaries, as the board of directors of the Company may from time to
time determine. Executive agrees, during the term hereof, to diligently and in good faith perform and discharge such duties and functions and Executive shall devote all of his working time, energy and
ability exclusively to the performance of his duties hereunder. Executive shall not directly or indirectly engage or participate in the operations or management of, or render any services to, any
other businesses or enterprises. 

        Section 1.2.    Basic Compensation.    The Company agrees to pay Executive a base annual salary and annual
bonus (or such other amount as may be from time to time determined by the board of directors of the Company) (collectively the "Basic Compensation"). Basic Compensation payable under this section
shall be payable in accordance with such practices and procedures as are generally applicable to other employees of the Company. 

        Section 1.3.    Fringe Benefits.    While Executive is in the employ of the Company, the Company agrees to
provide to Executive such benefits as may be provided by the Company from time to time to its similarly situated employees. 

        Section 1.4.    Severance.    If the Company terminates the employment of the Executive without Cause, the
Company shall (i) make a lump sum severance payment equal to the greater of (a) one year of Basic Compensation or (b) 3 weeks of Basic Compensation per year of continuous
employment and (ii) pay to the Executive the amount of the bonus, if any, accrued or earned to the date of such termination under section 1.5 hereof. Such severance payment shall be made
within 30 days after the determination of the amount of the accrued bonus calculated pursuant to the provisions of section 1.5 hereof. It is agreed that any termination of employment is
without prejudice to any other remedy to which the Company may be entitled, either by law, in equity or under this Agreement. 

        In
addition to the foregoing, if, during the period of three (3) years following a Change of Control, the Company terminates the employment of the Executive without Cause or if
the Executive terminates employment with the Company for Good Reason, the Company shall, at its expense, continue providing to Executive, for the period of three (3) years following a Change of
Control, the same life and health insurance benefits as provided to Executive immediately prior to such termination. 

        The
Company has the absolute right to terminate this Agreement, and the employment of the Executive hereunder, for Cause without any further obligation to the Executive in respect of
severance 

 

payments
to the Executive hereunder. For purposes of this Agreement, Cause includes, but is not limited to the following: 

	(i)
	Executive's
breach of the terms of this Agreement or any other legal obligation to the Company; or

	(ii)
	Executive's
fraud, dishonesty, negligence, misconduct or other deliberate action which causes injury to the Company or any of its subsidiaries or to their respective
reputations or an act of the Executive involving moral turpitude or a serious crime. 

        The
Executive shall not be entitled to severance under this section 1.4 if the employment of the Executive is terminated for any of the following reasons: 

	(i)
	the
Executive terminates this Agreement at any time;

	(ii)
	death
of the Executive;

	(iii)
	the
Disability of the Executive. 

        Section 1.5.    Bonus.    The Company adopts, from time to time, formal written bonus programs for certain of
its executives. Such written bonus programs, if adopted and if extended to the Executive, shall be in addition to the Basic Compensation payable under section 1.2 hereof. The amount of the
bonus will be determined on mutually agreed-upon objectives. The Company reserves the absolute right to amend, replace or terminate, from time to time, any such written bonus program and
to determine the extent of its application, all without any liability to the Executive. The bonus, if any, payable under this section 1.5 shall be paid in accordance with the terms of the
formal written bonus program adopted by the Company. 

        Section l.6.    Term.    The term of this Agreement shall commence on                  ,
200    and
continue through                  , 20    ; provided, however, that Executive shall have the continuing option to immediately terminate the
employment provided by section 1.1 hereof by giving two weeks' notice thereof to the Company and the Company shall have the continuing option to immediately terminate the employment provided by
section 1.1 hereof by giving written notice thereof to Executive which notice may be effective immediately. Upon any such termination, all of the rights and obligations set forth in this
Article I shall terminate provided, only, that the Company shall pay to Executive the severance, if any, payable under section 1.4 hereof. 

 
 

ARTICLE II    
    
    PHANTOM STOCK INTEREST    
    

        Section 2.1.    Award of Phantom Stock Interest.    The Company hereby awards the Phantom Stock Interest to the
Executive. 

        Section 2.2.    Payment of Phantom Stock Interest.    The Company shall pay, and Executive shall be entitled to
receive, the cash value of the Phantom Stock Interest, which shall be paid as follows: 

	(i)
	one-third
thereof within 30 days of the determination of such cash value in accordance with the provisions of section 4.3 hereof, and

	(ii)
	one-third
thereof on the first anniversary of the Determination Date, and

	(iii)
	one-third
thereof on the second anniversary of the Determination Date. 

        Section 2.3.    Beneficiary.    Executive may designate (by filing with the Company a written beneficiary
designation form in form reasonably acceptable to the Company) one or more primary beneficiaries or contingent beneficiaries to receive all or a specified part of the cash value of the Phantom Stock
Interest which, at the time of Executive's death, may remain unpaid under this 

2

 

Agreement
and Executive may change or revoke any such designation from time to time. No such designation, change or revocation shall be effective unless executed by Executive and accepted by the
Company during Executive's lifetime. Each such designation, change or revocation shall be effective under this Agreement until changed or revoked in the manner specified herein. No such change or
revocation shall require the consent of any beneficiary theretofore designated by Executive. If Executive fails to designate a beneficiary, or designates a beneficiary and thereafter revokes such
designation without naming another beneficiary, or designates one or more beneficiaries and all such beneficiaries so designated fail to survive Executive, then the beneficiary of the Phantom Stock
Interest, or the part thereof as to which Executive's designation fails, as the case may be, shall be the representative of Executive's estate. Unless Executive has otherwise specified in the
beneficiary designation, the beneficiary or beneficiaries designated by Executive shall become fixed as of Executive's death so that, if a beneficiary survives Executive but dies before the receipt of
all payments due such beneficiary, such remaining payments shall be payable to the representative of such beneficiary's estate. 

        Section 2.4.    Benefits Not Transferable.    Neither Executive nor any beneficiary hereunder shall have any
transferable interest in the payments due hereunder nor any right to anticipate, alienate, dispose of, pledge or encumber the same prior to actual receipt thereof, nor shall the same be subject to
attachment, garnishment, execution following judgment or other legal process instituted by creditors of Executive or any such beneficiary provided that the unpaid cash value of Executive's Phantom
Stock Interest and any payments due hereunder shall at all times be subject to set-off for debts owed by the Executive to the Company or its affiliates. 

        Section 2.5.    Nature of the Company's Obligation.    The Company shall maintain a record of the Phantom Stock
Interest but the Company shall not be required to segregate any funds or other assets to be used for the payment of benefits under this Agreement and no such record shall be considered as evidence of
the creation of a trust fund, an escrow or any other segregation of assets for the benefit of Executive or any beneficiary of Executive. The obligation of the Company to make the payments described in
this Agreement is an unsecured contractual obligation of the Company only, and neither Executive nor any beneficiary of Executive shall have any beneficial or preferred interest by way of trust,
escrow, lien or otherwise in and to any specific assets or funds. Executive specifically acknowledges that the Phantom Stock Interest to be awarded pursuant to the terms of this Agreement are not
securities in the Company and do not create any right in the equity or capital of the Company or any of its affiliates. Executive and each beneficiary of Executive shall look solely to the general
credit of the Company for satisfaction of any obligations due or to become due under this Agreement, it being expressly acknowledged by the Executive that the obligations of the Company hereunder are
junior and subordinate in right of payment to the obligations of the Company to its or the Company's lenders. If the Company should, in its sole discretion, earmark or set aside any funds or other
assets to pay benefits hereunder, the same shall, nevertheless, remain and be regarded as part of the general assets of the Company subject to the claims of its general creditors (and shall not be
considered to be held in a fiduciary capacity for the benefit of Executive or any beneficiary hereunder), and neither Executive
nor any beneficiary of Executive shall have any legal, beneficial, security or other property interest therein. Upon delivery by the Company to Executive of the consideration as provided in
section 2.2, the rights and obligations of the Company and Executive under this Article II shall terminate and Executive shall have no other or further rights under this Article or in
respect hereof. 

 
 

ARTICLE III    
    
    COVENANT NOT TO COMPETE    
    

        Section 3.1.    Covenant Not to Compete.    Executive hereby covenants that, for a period of  eighteen months next following the
Determination Date (or such shorter period for which the Company continues to be owned or operated by the Parent or
its affiliates), Executive shall not be engaged or interested in any business which competes, directly or indirectly, with the publication or membership 

3

 

businesses
of the Company or any subsidiary of the Company (whether as a proprietor, partner with another, shareholder, agent or consultant of, employee of or lender to, another) in the recreational
vehicle, camping, outdoor living or other markets then served by the Company or such subsidiary, except as a proprietor, partner, shareholder, employee or consultant in or to the Company or any entity
controlled by, controlling or under common control with the Company, provided that if the employment of Executive is terminated by the Company without Cause, the foregoing covenant shall not apply
(without affecting the obligations hereinafter contained in this section 3.1 in respect of disclosures or solicitations by Executive) unless the Executive shall have been paid severance
pursuant to section 1.4 hereof. Executive agrees that he will not at any time disclose to any person or other entity who or which is, or reasonably may be expected to be, in competition with
the Company or its affiliates, any confidential information or trade secrets of the Company, any subsidiary of the Company or any of their respective affiliates, the contents of any customer lists of
the Company, any subsidiary of the Company or any of their respective affiliates or the general needs of the customers or other contracting parties with the Company, any subsidiary of the Company or
any of their respective affiliates, provided, however, the foregoing shall not prevent Executive from responding to the request of a governmental agency or pursuant to a court order or as otherwise
required by law. For a period of one year following the Determination Date, Executive agrees not to offer employment to, not to discuss the nature of any prospective employment opportunities with, and
not to otherwise solicit any employee of the Company or such subsidiary (or any person who was an employee of the Company or such subsidiary within 180 days of the Determination Date) on his
own behalf, on behalf of any employer of the Executive, on behalf of any entity with which the Executive is acting as a consultant or with which the Executive is then otherwise affiliated. 

        Section 3.2.    Remedies.    Recognizing that a breach of the covenant contained in section 3.1 would
cause the Company irreparable injury and the damages at law would be difficult to ascertain, Executive consents to the granting of equitable relief by way of a restraining order or temporary or
permanent injunction by any court of competent jurisdiction to prohibit the breach or enforce the performance of the covenants contained in section 3.1. The invalidity or unenforceability of
any provision of this Article or the application thereof to any person or circumstance shall not affect or impair the validity or enforceability of any other provision or the application of the first
provision to any other person or circumstance. Any provision of this Article that might otherwise be invalid or unenforceable because of contravention of any applicable law, statute or governmental
regulation shall be deemed to be amended to the extent necessary to remove the cause of such invalidation or unenforceability and such provision as so amended shall remain in full force and effect as
a part hereof. 

 
 

ARTICLE IV.    
    
    DEFINITIONS AND GENERAL PROVISIONS    
    

        Section 4.1.    Definitions.    As used in this Agreement, the following terms shall have the respective
meanings set forth below: 

        Accounting Period:    If the Determination Date falls on December 15th through December 31st, inclusive, the
Fiscal Year of the Company in which the Determination Date falls; if the Determination Date falls on January 1st through June 14th, inclusive, the Fiscal Year of the Company ending
immediately prior to the date on which the Determination Date falls; if the Determination Date falls on June 15th through December 14th, inclusive, the Rolling Four Fiscal Quarters
ending immediately prior to the date on which the Determination Date falls. 

        Base Cost:    $                  , less an amount
equal to dividends or other distributions made by the Company to the Parent (it
being understood that amounts paid by the Company to the Parent pursuant to any tax allocation agreement between such parties, amounts paid as management fees and amounts paid as repayment of
principal, premium or interest on indebtedness of the Company to the Parent or 

4

 

to
any affiliate of the Parent shall not be considered dividends or other distributions for the purposes hereof, it being the intention of the parties hereto that only dividends or distributions in
respect of the equity ownership of the Parent in the Company be deducted for the purpose of calculating Base Cost). 

        Company Value:    If the Determination Date is occasioned by the sale of all or substantially all of the Operating Assets of the
Company and its subsidiaries, the remainder of (x) the sum of (i) the net after-tax consideration received in the sale of all or substantially all of the Operating Assets and
(ii) Current Assets minus (y) the sum of (i) the Base Cost, (ii) Operating Liabilities not assumed by the purchaser or transferee and (iii) Liabilities other than
Operating Liabilities. If any of such consideration shall have been paid in notes or other securities, the Company shall, by resolution of its board of directors, establish a value therefore, which
value shall be conclusively binding upon the parties hereto and, in establishing the value of debt securities, in addition to such other considerations as the board of directors of the Company may
deem relevant, the amounts payable thereunder shall be discounted to their present value on the basis of such discount rate as is deemed appropriate by the board of directors. 

        If
the Determination Date is occasioned by the sale of all or substantially all of the equity interests in the Company or subsidiaries of the Company, Company Value shall be the
remainder of (x) the net after-tax consideration received in such sale of equity interests minus (y) the sum of (i) the Base Cost and (ii) any Liabilities not
assumed by such purchaser or transferee. 

        If
the Determination Date is occasioned by the sale of the equity interests of the Parent, Company Value shall be the remainder of the pre-tax consideration received minus
(y) the sum of (i) the Base Cost and (ii) any Liabilities not assumed by such purchaser or transferee for which shareholders of the Parent continue to be liable after the closing
of such sale. 

        If
the Determination Date is occasioned by an event other than a Sale, Company Value shall be the remainder of (x) the sum of (i) the Formula Operating Asset Value and
(ii) Current Assets minus (y) the sum of (i) Base Cost and (ii) Liabilities other than Operating Liabilities provided, however, that if a Sale is consummated within
180 days after the Determination Date, Company Value shall be determined as if the Determination Date had been occasioned by the Sale. 

        Change of Control:    A "Change of Control" will be deemed to have occurred at such time as (a) the Existing Holders,
individually or in the aggregate, shall cease to beneficially own (as defined under Rule 13(d)(3) or any successor rule or regulation promulgated under the Securities Exchange Act of 1934),
directly or indirectly, 50.1% or more of the voting equity interests of the Company, (b) there shall be consummated any consolidation or merger of the Company or the Parent in which the Company
or the Parent, as the case may be, is not the continuing or surviving corporation or pursuant to which the voting equity interests of the Company or the Parent would be converted into cash, securities
or other property, other than a merger or consolidation of the Company or the Parent in which the holders of the voting equity interests of the Company or the Parent, as the case may be, outstanding
immediately prior to the consolidation or merger hold, directly or indirectly, at least a majority of the voting equity interests of the surviving corporation immediately after such consolidation or
merger, (c) there is a sale, lease or transfer of all or substantially all of the assets of the Company or the Parent to any person or group (as such term is defined in Section 13(d)(3)
of the Securities Exchange Act of 1934), or (d) the shareholders of the Company or the Parent shall approve any plan or proposal for the liquidation or dissolution of the Company or the Parent,
as the case may be. 

        Current Assets:    The sum of (x) cash, marketable securities, prepaid items and inventory as reflected on the books and
records of the Company and its subsidiaries on a consolidated basis after the elimination of any intercompany accounts; (y) the market value of notes receivable of the Company (other than
intercompany receivables); and (z) the accounts receivable of the Company and its subsidiaries (other than intercompany accounts receivable) subject to such allowance for bad or 

5

 

doubtful
accounts receivable as is reflected on the books of the Company, all as determined in accordance with generally accepted accounting principles. Current Assets and Liabilities shall be
determined as of the last day of the Accounting Period. 

        Determination Date:    The date of any of the following events: (i) termination of the Executive's employment, whether by
death or otherwise, (ii) a Sale, or (iii)                       , 20    . 

        Disability:    The physical or mental incapacity of Executive for a period of more than 60 consecutive days, the determination
of which by the board of directors of the Company shall be conclusive on the parties hereto. 

        Existing Holders:    Stephen Adams, his spouse and lineal descendants and trusts for the exclusive benefit of any of the
foregoing persons and any affiliate of Stephen Adams. 

        Fiscal Quarter:    The fiscal quarter of the Company ending on the last day of the calendar quarter. 

        Fiscal Year:    The fiscal year of the Company as the case may be, ending on the last day of the calendar year. 

        Formula Operating Asset Value:    The product
of                        (            ) and Operating Profit of the
Company for the
Accounting Period. 

        Good Reason:    The occurrence of one or more of the following events, without Executive's written consent, within three
(3) years following a Change in Control (or before the Change in Control if the occurrence is directly connected to the Change in Control and the Change in Control occurs): (a) the
Executive is assigned any duties inconsistent with Executive's position (including status, offices, titles and reporting requirements), authorities, duties or any other responsibilities as in effect
immediately prior to the announcement of the Change in Control, (b) a reduction in base compensation or in any bonus plan from the amounts in effect immediately prior to the announcement of the
Change in
Control, or (c) Executive is required to be located outside the same metropolitan area as Executive's office location immediately prior to the announcement of the Change in Control. 

        Liabilities:    All obligations (whether absolute, accrued or contingent, choate or inchoate) of the Company and/or its
subsidiaries (other than intercompany obligations) determined in accordance with generally accepted accounting principles provided that (i) if the Determination Date is occasioned by a Sale,
the obligation of the Company (or the Parent) for the payment of federal and state income taxes arising from a Sale shall be considered a liability whether or not such liability is required to be
reflected as a liability in accordance with generally accepted accounting principles, (ii) the liability of the Company for deferred revenues shall not be considered a liability whether or not
such liabilities are required to be reflected as a liability in accordance with generally accepted accounting principles, and (iii) the liability of the Company, the Parent or any subsidiary of
the Company (x) in respect of this Agreement or any similar agreement or (y) to purchase its equity securities (or warrants for such securities), whether under a "put" agreement or
otherwise, shall not be considered a Liability for purposes hereof. Liabilities shall be determined by the chief financial officer of the Company (or the Independent Accountant) as provided in
section 4.3 hereof. Liabilities shall be determined on a consolidated basis provided, however, that there shall be eliminated any intercompany Liabilities. 

        Operating Assets:    The real and personal properties, tangible and intangible, used in the regular ongoing operation of the
Company and its subsidiaries, as the case may be which would be acquired by a purchaser of such entities (or the assets thereof) in order to continue the uninterrupted operation of the business
thereof in substantially the manner as theretofore operated but excluding therefrom cash, investments, accounts and notes receivable, inventories, prepaid items and similar assets which would not
normally be acquired by a purchaser in an asset acquisition (or for which special adjustment to the purchase price would be made). 

6

 

        Operating Liabilities:    Any Liability or other obligation (whether absolute, accrued or contingent, choate or inchoate) which
would be required to be assumed by a buyer of all or substantially all of the assets of the Company and its subsidiaries in order to continue, uninterrupted, the business operations of the Company
unless, in connection with such assumption, there would customarily be made an adjustment to the purchase price for such assets. Operating Liabilities do not include (i) indebtedness for money
borrowed or guarantees of any such indebtedness, (ii) refinancings of indebtedness of the kind referred to in clause (i) above, (iii) indebtedness in respect of any subscription
agreement, stock or warrant "put" or "call" agreement, phantom stock agreement or similar obligation in respect of an equity or other interest in the Parent measured by an increase in the equity value
of the Parent and (iv) current payables. 

        Operating Profit:    With respect to any Accounting Period (i) the net income of the Company derived from the ongoing
business operations of such entity or entities for such period plus (ii) interest, federal and state income taxes [or any provision for such taxes], depreciation,
amortization, financing costs, management fees and 90% of aircraft expenses. Operating Profit shall be
determined on the accrual method of accounting and in accordance with generally accepted accounting principles consistently applied, provided that (i) in no event shall tradeout or barter
transactions or extraordinary items of revenue or expense (including revenue or expense from non-operating investments, revenue or expense from the sale or purchase of Operating Assets or
entities or revenue or expense not derived from business operations) be reflected in net income and (ii) amounts paid or received in settlement of (or payment of judgments in respect of)
litigation which did not arise in the ordinary course of the business operations of such entity or entities or any of their respective subsidiaries, shall not be reflected in net income (it being
understood that subsidiaries of the Company do have litigation, such as the litigation in CTC), which shall be considered litigation in the "ordinary course" of business operations). If there has
occurred a Sale of Operating Assets within the Accounting Period and, in such Sale, not all of the Operating Assets have been sold, provided that the net proceeds of such Sale have been received by
the Company prior to the date on which Current Assets and Liabilities of the Company are calculated as herein provided, the net income relating to such Operating Assets shall be deleted from the
calculation of Operating Profit. If there has occurred a purchase of Operating Assets, the income from which is reflected in the Accounting Period only partially, the Operating Profit with respect to
such Operating Assets shall be adjusted, on a historical pro forma basis, to reflect Operating Profit for the complete Accounting Period. 

        Parent:    Affinity Group Holding, Inc., a Delaware corporation, or such other entity which holds in excess of 80% of the
issued and outstanding equity securities of the Parent. 

        Phantom Stock Interest:    The cash equivalent of        percent
(        %) of Company Value. 

        Rolling Four Fiscal Quarters:    Four consecutive Fiscal Quarters. 

        Sale:    The sale of all or substantially all of the Operating Assets of the Company and the subsidiaries of the Company, the
sale of all of the equity interests in the Company, the sale in one transaction (or a series of related transactions) of more than 65% of the equity interests in the Parent, the sale of all of the
equity interests in the subsidiaries of the Company (except, in any of the foregoing cases, to an entity controlled by, controlling or under common control with the Parent). 

        Section 4.2.    Withholding Taxes.    The Company may withhold from any payment to be made under this Agreement
(and transmit to the proper taxing authority) such amount as it may be required to withhold under any federal, state or other law. 

        Section 4.3.    Administration.    The Company and its executive officers shall have full power to interpret,
construe and administer this Agreement, including authority to determine any dispute or claim with respect thereto. The determination of the Company in any matter, made in good faith, shall be binding
and conclusive upon Executive and all other persons having any right or benefit hereunder. 

7

 

Unless
Executive shall give notice to the Company objecting to the Company's calculation of Current Assets, Liabilities, Operating Liabilities or Operating Profit for any period (or any other
calculation to be determined for the purposes of this Agreement) within thirty days after notice of the determination thereof by the Company, such calculation shall conclusively be deemed to have been
accepted by the parties hereto. The cash value of the Phantom Stock Interest shall be set forth in a certificate of the chief financial officer of the Company, the determination of which shall be made
within 150 days of the Determination Date and shall be conclusive and binding upon the Executive provided that, if the Executive shall disagree with the amount of the Current Assets,
Liabilities, Operating Liabilities or Operating Profit as determined by the chief financial officer of the Company (written notice of which shall be given by the Executive within 30 days of the
receipt of such determination by the chief financial officer), Current Assets, Liabilities, Operating Liabilities or Operating Profit shall be determined by the independent certified public
accountants of the Company or, if the Company has not then engaged a firm of independent certified public accountants, any "big six" firm of public accountants selected by the Company (the
"Independent Accountant"). The Independent Accountant shall determine the Current Assets, Liabilities, Operating Liabilities or Operating Profit of the Company within 30 days after its
appointment and shall be instructed to deliver to the Company and the Executive a written report of its determination of the amount of such Current Assets, Liabilities, Operating Liabilities or
Operating Profit. 

        The
cost of the accounting services performed by the Independent Accountant shall be borne by the Company (but the cost thereof shall be considered a liability of the Company for
purposes of determining Liabilities) unless the amount of the Current Assets, Liabilities, Operating Liabilities or Operating Profit as determined by the Independent Accountant is the same as the
amount determined by the Company's chief financial officer (or is an amount which results in a lower value for the Executive of the Phantom Stock Interest or the bonus payable under
section 1.5), in which event the entire cost of the services of the Independent Accountant shall be borne by the Executive and shall be deducted by the Company from the Phantom Stock payment to
be made pursuant to section 2.2 hereof or the bonus payable under section 1.5, as the case may be. 

        Any
of the obligations of the Company hereunder may be performed by an affiliate of the Company and such performance by an affiliate shall be deemed to satisfy any such obligation of the
Company hereunder. 

        Section 4.4.    Notices.    All notices, requests and other communications from any of the parties hereto to
the other shall be in writing and shall be considered to have been duly given or served when personally delivered to any individual party, an executive officer of any corporate party, or on the first
day after the date of deposit with Federal Express for next day delivery, postage prepaid, or on the third day after deposit in the United States mail, certified or registered, return receipt
requested, postage prepaid, or on the date of telecopy, fax or similar telephonic transmission during normal business
hours, provided that the recipient has specifically acknowledged by telephone receipt of such telecopy, fax or telephonic transmission; addressed, in all cases, to the party at his or its address set
forth below, or to such other address as such party may hereafter designate by written notice to the other party: 

	(i)
	If
to the Company to: 

2575
Vista Del Mar Drive

Ventura, CA 93001

Attn: Stephen Adams 

	(ii)
	If
to Executive to: 

                                        
            

                                         
           

                                         
            

        Section 4.5.    Binding Effect.    The provisions of this Agreement shall not give Executive any rights to
continue to be employed or otherwise retained by the Company or any affiliate thereof. Except as so 

8

 

provided,
this Agreement shall be binding upon and inure to the benefit of the parties hereto, the respective successors and assigns of the Company and the beneficiaries, personal representatives and
heirs of Executive. 

        Section 4.6.    Controlling Law.    This Agreement shall be construed, and the legal relations between the
parties determined, in accordance with the laws of the state of incorporation of the Company. 

        Section 4.7.    Counterparts.    This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original without the production of the others, but all of which together shall constitute one and the same instrument. 

        Section 4.8.    Entire Agreement.    This Agreement contains the entire understanding of the parties with
respect to the subject matter hereof and may not be varied, modified or amended except by a writing signed by the parties to be charged. The making, execution and delivery of this Agreement by the
parties hereto have been induced by no representations, statements, warranties or agreements of the other except those herein expressed. 

        Section 4.9.    Headings.    The division of this Agreement into sections and paragraphs and the titles
assigned thereto is only a matter of convenience for reference and shall not define or limit any of the terms or provisions thereof. 

        IN WITNESS WHEREOF, the individual party has hereunto set his hand and the corporate party has caused these presents to be executed by a
proper officer thereunto duly authorized all as of the day and year first above written. 

	 	 	AFFINITY GROUP, INC.
	

 	
 	

By:	
 	

    

	 	 	 	 	Its:	 	    

	

 	
 	

9

QuickLinks

PHANTOM STOCK AGREEMENT

WITNESSETH

ARTICLE I EMPLOYMENT

ARTICLE II PHANTOM STOCK INTEREST

ARTICLE III COVENANT NOT TO COMPETE

ARTICLE IV. DEFINITIONS AND GENERAL PROVISIONS

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