Document:

Exhibit 10.10

 

DIRECTOR
AND OFFICER COMPENSATION

 

The Valmont board of directors, upon recommendation of the Compensation
Committee, on December 19, 2005 established fiscal 2006 base salaries for the five
executive officers named in the 2005 proxy statement (the “Executives”): Mogens
Bay, $795,000; Terry McClain, $360,400; Robert Meaney, $303,496; Mark Jaksich,
$206,377; and Mark Treinen, $206,377. 
The Compensation Committee on December 18, 2005 established the
performance measures for the fiscal 2006 annual incentives for the Executives.  Such incentives were established under the stockholder-approved
Valmont Executive Incentive Plan.  A
target incentive was established for each executive ranging from 35% to 100% of
base salary, and performance goals were set based on earnings per share
performance.  A minimum threshold level
of earnings per share must be attained before any incentive is earned and
incentives are earned based on specific performance levels of earnings per
share.  Payout under the plan to any
Executive is capped at three times the target incentive.

The Compensation Committee on December 18, 2005 also established the performance
measures for executives for the long-term incentive program with respect to the
three-year cycle of fiscal 2006 - fiscal 2008. 
Such incentives were established under the stockholder-approved Valmont
Executive Incentive Plan.  Targets were
established for each Executive ranging from 25% to 60% of base salary, which
amount is converted to performance 
shares.  The Committee established
performance goals based on return on invested capital for the Company over the
three-year term, with a performance matrix pursuant to which the performance
shares may be increased or decreased based on greater or lesser levels of
performance.  Results for each year are
weighted 20%, 30% and 50% over the three-year cycle.  Earned performance shares are valued at the
Company’s stock price at the end of the performance period and awards may be
paid in cash or in shares of common stock, or any combination of cash and stock
as determined by the Committee.  Earned
performance shares under the plan to any Executive are capped at two times the
target in number of performance shares.

The Compensation Committee on December 18, 2005 also granted restricted
shares and stock options to the Executives as 
follows:  Mr. Bay, 37,000 restricted
shares; Mr. McClain, 10,000 restricted shares; Mr. Meaney, 5,000 restricted
shares; Mr. Jaksich, 10,000 stock options; and Mr. Treinen, 7,500 stock
options.  The restricted shares vest if
the Executive’s employment terminates upon death, disability or normal
retirement on or after age 62, upon involuntary termination prior to age 62 without
cause, or upon a change of control of the company.  Dividends are paid on restricted shares.  The stock options are exercisable at market
price on the grant date, have a term of seven years, and vest beginning on the
first anniversary of the grant in equal amounts over three years.  The restricted share and stock option grants
were made pursuant to the stockholder-approved Valmont 2002 Stock Plan.

The Valmont board of directors on December 19, 2005 confirmed director compensation
for fiscal 2006.

Non-employee directors will receive (1) an annual retainer of $55,000,
(2) $2,500 for each board meeting attended ($1,000 if the participation was via
teleconference), and (3) $2,000 for each committee meeting attended.  The lead director receives an additional
$35,000 per year and each committee chairman receives an additional $10,000 per
year.  Directors have the ability to
receive cash fees in the form of deferred compensation which accrues interest
indexed to U.S. Government Bonds compounded monthly.

Non-employee directors also receive equity compensation as provided in
the stockholder-approved 2002 Stock Plan.  The equity compensation consists of (1) an annual
grant of 2,000 shares of common stock and (2) an annual grant of a nonqualified  stock option for 4,000 shares of common stock
exercisable at the fair market value of the Company’s 

common stock on the date of grant.  The equity grants are made annually on the
date of and following completion of Valmont’s annual stockholders’
meeting.  The common stock grant is
forfeited if a director’s services terminate for any reason other than death,
retirement from the board at mandatory retirement age, or resignation or
failure to stand for re-election, in any case without the prior approval of the
board.

Valmont does not have a defined benefit pension plan.  Valmont maintains the Valmont Employee
Retirement Savings Plan (a 401(k) Plan) and the related Valmont restoration
plan (a non-qualified plan designed to restore 401(k) benefits limited by IRS
regulations).  The amounts contributed by
Valmont to such plans for executive officers match the contributions of the
executive officer up to 4.5% of the executive officer’s salary and cash bonuses
(15% for Messrs. Bay, McClain and Meaney). 
The Compensation Committee determined to end the Valmont perquisites
program effective for fiscal 2006.  The Chief
Executive Officer is directed by company security policy to use company aircraft
for both business and personal travel.Exhibit   10.12

 

AMENDMENT NO. 2

TO

1992 STOCK PURCHASE AND OPTION PLAN

DATED MAY 11, 2005

 

 

The PRIMEDIA Inc. 1992 Stock Purchase and
Option Plan (the “Plan”) is hereby amended as follows:

 

(1)          By amending the last
sentence of clause (b) of Section 5 to read as follows:

“In
addition to other restrictions contained in the Plan, an option granted under
this Paragraph 5 (b), (i) may not be exercised more than 20 years after the
date it is granted and (ii) may not have an exercise price less than 50% of the
Fair Market Value of Common Stock on the date it is granted”.

 

(2)          By amending the first
sentence of clause (a) of Section 6 to read as follows:

(a)
Subject to Paragraph 4, the number of shares available for grants under the
Plan shall be 45 million shares of Common Stock, reduced by the sum of the
aggregate amount of shares issued upon a Grant or become subject to an
Outstanding Grant.

 

(3)          By amending Section 13 to
read as follows:

13.  Termination
Date

The Plan shall terminate
March 9, 2015, subject to earlier termination by the Board of Directors
pursuant to Paragraph 10.Exhibit  10.28

Execution Copy

SEPARATION AGREEMENT

This Separation Agreement
(“Agreement”), dated as of December 30, 2005, is entered into by and between
Kelly Conlin (“Conlin”) and PRIMEDIA Inc. (together with its subsidiaries and
affiliates, “PRIMEDIA”) (which, together with its successors, subsidiaries,
officers, directors and each holder, directly or indirectly (as of the date of
this Agreement), of at least ten percent (10%) of the outstanding common stock
of PRIMEDIA are collectively referred to as the “Beneficiaries”).

WHEREAS, PRIMEDIA and Conlin
entered into an Employment Agreement, dated as of October 14, 2003 (the
“Employment Agreement”); and

WHEREAS, Conlin’s employment
with PRIMEDIA terminated on October 24, 2005 (the “Termination Date”) pursuant
to Section 9(d) of the Employment Agreement; and

WHEREAS, Conlin and
PRIMEDIA, on behalf of all the Beneficiaries, have agreed to resolve and settle
any and all of their disputed claims and all differences between them with
respect to events, including, but in no way limited to, any differences that
might arise in connection with Conlin’s employment with PRIMEDIA, Conlin’s
rights as an equityholder of PRIMEDIA, and the termination of Conlin’s
employment, which the parties have agreed will be a termination without cause;
and

NOW, THEREFORE, in
consideration of the recitals, promises, and other good and valuable
consideration specified herein, the receipt and sufficiency of which is hereby
acknowledged, Conlin and PRIMEDIA, on behalf of all the Beneficiaries, agree as
follows:

1.                                      PAYMENTS AND
BENEFITS

1.1           Payments.  Subject in each case to the expiration of the
Revocation Period (as defined in Section 2.2 below), on January 18, 2006
(unless another date is specified), PRIMEDIA will pay to Conlin the amounts specified
in this Section in consideration for Conlin entering into this Agreement,
specifically including the General Release (as described in Section 2 below)
and other restrictive covenants identified herein:

(a)           Base Salary Severance Payments.  PRIMEDIA will pay to Conlin $1,640,966.67,
which amount shall be payable in one lump sum, and which amount represents the
present value of two times Conlin’s annual rate of base salary on the
Termination Date ($900,000) otherwise payable to Conlin in substantially equal
installments over the twenty-four month period following the Termination Date
(less (i) $71,600, which amount represents wage withholding due in respect of
calendar year 2004, and less (ii) $31,153.84 in payments previously made by
PRIMEDIA to Conlin in respect of the period between the Termination Date and
November 4, 2005), which present value has been calculated using as the
discount rate the Applicable Federal Rate specified under Section 1274 of the
Internal Revenue Code of 1986, as amended (the “Code”) for short-term Treasury
obligations (as published by the Internal Revenue Service for November 2005).

(b)           2005 Pro Rata Annual Bonus Payment.  PRIMEDIA will pay to Conlin, in a lump sum
297/365ths of a reasonable, good faith estimate of Conlin’s annual incentive
award, as would be determined under PRIMEDIA’s annual incentive plan (the
“Annual Incentive Award”) (based on a target Annual Incentive Award equal to
67.5% of Conlin’s annual rate of base salary on the Termination Date ($900,000)
and the other factors included in such plan, which, for the avoidance of doubt,
include paying that portion (i.e., 10%) of Conlin’s Annual Incentive Award that
is determined on a discretionary basis in accordance with PRIMEDIA’s past
practice of basing the percentage of such portion that is paid upon the
percentage of the financial targets that are achieved by PRIMEDIA as previously
established under such plan) in respect of PRIMEDIA’s

 

 

fiscal year ending December
31, 2005 (the “Pro Rata Bonus Amount”). 
PRIMEDIA will pay to Conlin the Pro Rata Bonus Amount on March 14, 2006.

(c)           Attorneys Fees.  PRIMEDIA will pay to Conlin’s counsel,
Proskauer Rose LLP, for up to $10,000 of reasonable fees (including costs and
expenses incurred thereby) for such counsel’s legal services provided to Conlin
in connection with the negotiation and settlement of the subject matter
contained in this Agreement, within thirty (30) days after receipt of a bill
for all such services (provided that all such bills must be submitted no later
than February 15, 2006).

1.2           Indemnification.  PRIMEDIA shall continue to provide Conlin
with the protections and benefits under, and honor the provisions of, Section
13 of the Employment Agreement.

1.3           Equity.

(a)           Stock Options.  With respect to the outstanding options to
purchase shares of common stock of PRIMEDIA (“Stock”) held by Conlin as of the
date hereof (the “Options”), notwithstanding the provisions of any of the
option award agreements pursuant to which Conlin was granted such Options (as
amended, if applicable, the “Option Agreements”), effective as of the
Termination Date: (a) all of the Options that have not already vested as of the
Termination Date shall terminate and be forfeited and (b) all of the vested
Options shall remain exercisable until (and may not be exercised at any time
after) December 31, 2006 (provided, however, that if permissible without
the imposition of additional income tax under Section 409A of the Code,
such date shall be April 24, 2007). 
Except as set forth specifically herein, nothing in this Section 1.3
shall be construed to amend, alter, revise or change any other terms or
conditions of the applicable Option Agreements.

(b)           Restricted Stock.  With respect to the restricted shares of
Stock held by Conlin as of the date hereof (the “Restricted Stock”),
notwithstanding the provisions of any of the restricted stock award agreements
pursuant to which Conlin was granted such Restricted Stock (as amended, if
applicable, the “Restricted Stock Agreements”), effective as of the Termination
Date: the shares of Restricted Stock that have not already vested as of the
Termination Date shall be forfeited and returned to the Company.  Except as set forth specifically herein,
nothing in this Section 1.3 shall be construed to amend, alter, revise or
change any other terms or conditions of the applicable Restricted Stock
Agreements.

1.4           Other Employee Benefits

(a)           Group Health Coverage.  Effective as of the Termination Date,
PRIMEDIA shall continue to provide Conlin and his eligible dependents with
medical and dental benefits pursuant to PRIMEDIA’s health and dental benefit
program provided to senior employees of PRIMEDIA, as in effect from time to
time, as if he had continued to be an active employee commensurate with the
position he held prior to the Termination Date, at such levels as are provided
to senior employees of PRIMEDIA and their eligible dependents from time to time
(“Medical Coverage”) until the earlier of (i) the expiration of the twenty-four
month period commencing on the Termination Date (the “Severance Period”), or
(ii) the date or dates that Conlin becomes eligible for coverage and benefits
under corresponding plans and programs of a subsequent employer, as
applicable.  Notwithstanding the
foregoing, (w) as a condition to receiving the benefits hereunder, Conlin and
his eligible dependents shall elect to receive group health benefit coverage
from PRIMEDIA as permitted pursuant to the Consolidated Omnibus Reconciliation
Act of 1985, as amended (“COBRA”), which coverage shall begin on the
Termination Date and run through the period provided pursuant to COBRA (the
“COBRA Coverage Period”), which coverage shall be deemed to be satisfied by the
provision of the Medical Coverage through the COBRA Coverage Period, (x) during
the Severance Period, Conlin shall only 

 

 

be required to pay for the
Medical Coverage at the same rates that Conlin is required to pay for such
coverage immediately prior to the Termination Date, (y) the Medical Coverage
provided to Conlin and his eligible dependents by PRIMEDIA under this Agreement
shall be in full satisfaction of PRIMEDIA’s obligations to Conlin and his
eligible dependents under COBRA, the Employment Agreement and this Agreement,
and (z) if at any time during the Severance Period it is not possible for
PRIMEDIA to provide the Medical Coverage in accordance with this Section
1.4(a), PRIMEDIA shall pay Conlin an amount which, after payment by Conlin of
applicable taxes, is sufficient for him to purchase equivalent benefits, as
described in Section 9(d)(i)(E) of the Employment Agreement.

(b)           Other Benefit Plans.  Conlin hereby acknowledges that the terms of
those PRIMEDIA benefit plans that provide the benefits listed on Schedule A,
attached hereto, do not permit Conlin to continue to participate in such plans
following the Termination Date.  In
connection with the foregoing and in satisfaction of its obligations under
Section 9(d)(i)(E) of the Employment Agreement, PRIMEDIA shall provide Conlin
with cash payments that are sufficient for Conlin to obtain benefits that are
equivalent to the benefits to which Conlin was entitled immediately prior to
the Termination Date, as set forth on Schedule A (the “Benefit Payments”).  The Benefit Payments shall be payable in such
amounts, and at such times, as also set forth on Schedule A.  To the extent the Benefit Payments are
subject to Federal, state or local income, employment and other taxes, PRIMEDIA
will provide Conlin with an additional payment such that, after payment of all
such taxes, Conlin will retain an amount equal to the corresponding Benefit
Payments.  Conlin hereby acknowledges and
agrees that the amounts set forth on Schedule A attached hereto are sufficient
for Conlin to purchase benefits that are equivalent to those corresponding
benefits that he was eligible to receive immediately prior to the Termination
Date, as identified on Schedule A and are in full satisfaction of PRIMEDIA’s
obligations to Conlin under Section 12(d)(vi) of the Employment Agreement.

1.5              Corporate
Apartment Expenses.  In accordance
with the understanding between PRIMEDIA and Conlin in respect of his use of a
corporate apartment and commuting expenses provided by PRIMEDIA in 2003, 2004
and 2005, PRIMEDIA shall pay to the appropriate taxing authorities, on Conlin’s
behalf, $552,661, which aggregate amount represents the costs to Conlin for
such expenses, as set forth on Schedule B attached hereto, and each portion of
such amount that relates to each of the years 2003, 2004 and 2005, as provided
on Schedule B, will be paid at the time that PRIMEDIA files an amended Form W-2
for each such year (but in no event later than March 14, 2006).  In connection with the foregoing, PRIMEDIA
agrees to make filings on Form W-2 and any other filings otherwise required to
be filed with the Internal Revenue Service or other governmental agency, if any
(including amendments thereof) which are reasonably necessary to reflect the
foregoing payments and benefits in respect of 2003, 2004 and, if applicable,
2005, and shall pay any required additional taxes, interest and penalties, if
any, that Conlin may incur as a result of any such filings.  In addition to all of the foregoing, PRIMEDIA
shall pay Conlin’s accountants up to $7,375, in respect of all reasonable fees
(including costs and expenses incurred thereby) incurred for the services
provided to Conlin in connection with the negotiation and settlement of the
subject matter referenced in this Section 1.5 (including, without limitation,
fees incurred in connection with the preparation of any income tax returns
(including any amendments thereto) for years 2003, 2004 and 2005), within
thirty (30) days after receipt of a complete bill for such services (but in no
event later than March 14, 2006).

1.6              Tax Withholding. 
PRIMEDIA may withhold from any amounts payable in cash under this
Agreement such Federal, state and local income, employment and other taxes as
may be required to be withheld in respect of any payment and/or any benefit
provided for under this Agreement pursuant to any applicable law or regulation
(giving effect to Conlin’s change of his residence from New York to
Massachusetts on October 21, 2005). 
Conlin and PRIMEDIA acknowledge that, simultaneously with the vesting of
Restricted Stock immediately prior to the Termination Date, 197,250 shares of
Restricted Stock 

 

 

have been withheld by the
Company in connection with applicable minimum statutory withholding for taxes
with respect to such vesting of Restricted Stock.

1.7           Full Satisfaction
of Potential Claims.  Conlin hereby
acknowledges and agrees that his receipt and satisfaction of all payments and
benefits provided in this Section 1 of this Agreement will constitute full and
final payment, accord and satisfaction of any and all potential claims
described in the General Release (as defined in Section 2 of this Agreement and
subject to the terms and limitations in the General Release) against the
PRIMEDIA Releasees (as defined in Section 2 of this Agreement and subject to
the terms and limitations in the General Release).

2.                                      RELEASES;
CONLIN REPRESENTATIONS

2.1           General Release.

(a)           For and in consideration of the payment of the amounts and
the provision of the benefits described in Section 1 of this Agreement and
PRIMEDIA’s agreement set forth in Section 2.1(b) below, Conlin hereby agrees to
execute a release of all claims against the Beneficiaries in the form attached
as Exhibit I hereto (the  “General
Release”).

(b)           Subject to Conlin’s execution of the
General Release, PRIMEDIA hereby agrees that, immediately following the
expiration of the Revocation Period, PRIMEDIA shall, on behalf of the
Beneficiaries, execute a release of all claims against Conlin in the form
attached as Exhibit II hereto (the “PRIMEDIA Release”, together with the
General Release, the “Mutual Releases”).

 

2.2           Conlin’s Representations
and Warranties.  Conlin represents
that he has read carefully and fully understands the terms of this Agreement,
and that Conlin has been advised to consult with an attorney and has availed
himself of the opportunity to consult with an attorney prior to signing this
Agreement.  Conlin acknowledges and
agrees that he is executing this Agreement willingly, voluntarily and
knowingly, of his own free will, in exchange for the payments and benefits
described in Section 1 of this Agreement, and that he has not relied on any
representations, promises or agreements of any kind made to him in connection
with his decision to accept the terms of this Agreement, other than those set
forth in this Agreement.  Conlin further
acknowledges, understands, and agrees that as of the Termination Date his
employment with PRIMEDIA terminated, that the provisions of Section 1 of this
Agreement are in lieu of any and all payments and benefits to which Conlin may
otherwise be entitled to receive pursuant to the Employment Agreement, that
Conlin will not be reemployed by PRIMEDIA, and that Conlin will not apply for
or otherwise seek employment with PRIMEDIA or any of its parents, companies,
subsidiaries, divisions or affiliates.  Conlin understands that, except as otherwise expressly
provided for under this Agreement, he will not receive any payments or benefits
under this Agreement until the seven (7) day revocation period provided for
under the General Release has passed, and then, only if he has not revoked the
General Release (such period during which no such revocation has occurred, the
“Revocation Period”).

3.                                      EFFECTS OF
SETTLEMENT; WAIVER OF JURY TRIAL

3.1           No Admission.  Conlin and PRIMEDIA, on behalf of the
Beneficiaries, agree that the payments and benefits by PRIMEDIA, and the
acceptance by Conlin of the same, all as provided in Section 1 of this
Agreement, and the execution of this Agreement are the result of a compromise
of disputed claims, and shall never for any purpose be considered an admission
of liability or responsibility by the Beneficiaries, and PRIMEDIA, on behalf of
the Beneficiaries, expressly denies any liability.

3.2           Waiver of Jury
Trial.  TO THE FULLEST EXTENT
PERMITTED BY LAW, EACH OF THE PARTIES HERETO HEREBY WAIVES THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF THIS 

 

 

AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO
THE SUBJECT MATTER OF THE TRANSACTIONS CONTEMPLATED HEREIN.  Each of the parties hereto also waives any
bond or surety or security upon such bond, which might, but for this waiver, be
required of any of the other parties. The scope of this waiver is intended to
be all-encompassing of any and all disputes that may be filed in any
court and that relate to the subject matter of this Agreement or the General
Release, including, without limitation, contract claims, tort claims, breach of
duty claims, and all other common law and statutory claims.  Each of the parties hereto acknowledges that
this waiver is a material inducement to enter into a business relationship,
that each has already relied on the waiver in entering into this Agreement, and
that each will continue to rely on the waiver in their related future
dealings.  Each of the parties hereto
further warrants and represents that each has reviewed this waiver with his or
its legal counsel and that each knowingly and voluntarily waives his or its
jury trial rights following consultation with legal counsel.  This waiver is irrevocable, meaning that it
may not be modified either orally or in writing, and the waiver shall apply to
any subsequent amendments, renewals, supplements or modifications to this
Agreement.  In the event of litigation,
this Agreement may be filed as a written consent to a trial by the court.

4.                                      CONFIDENTIALITY
OF THIS AGREEMENT; CONTINUING EFFECTIVENESS OF COVENANTS IN EMPLOYMENT
AGREEMENT

4.1           Public Statements.  Except as otherwise required by law
(including disclosure requirements under federal securities laws), Conlin and
PRIMEDIA hereby mutually agree not to issue any press release or otherwise
publicize this Agreement or the Mutual Releases or the settlement of their
disputes, and to limit any statement in response to inquiry from the news media
or otherwise to: “The matter has been resolved on a satisfactory basis.”

4.2           Statements by
PRIMEDIA.  PRIMEDIA shall not issue
or make any press release or public statement, as applicable, about Conlin
which is intended or reasonably likely to disparage Conlin, or otherwise
degrade Conlin’s reputation in the business or industry in which Conlin
operates; provided that PRIMEDIA shall be permitted to (a) make any
statement that is required by applicable securities or other laws to be
included in a filing or disclosure document, subject to prior notice to Conlin
thereof, (b) issue any press release or public statement regarding the fact of
a termination of Conlin’s employment, subject to Conlin’s prior review and
comment, (c) defend itself against any statement made by Conlin that is
intended or reasonably likely to disparage any member of the Beneficiaries or
otherwise degrade any member of the Beneficiaries’ reputation in the business,
industry or legal community in which such member of the Beneficiaries operates, only if PRIMEDIA believes that the
statements made in such defense are not false statements and (d) provide
truthful testimony in any legal proceeding or process.

4.3           Statements by Conlin.  Conlin shall not at any time issue or make
any press release or public statement, as applicable, about the Beneficiaries
regarding any of the foregoing’s financial status, business, compliance with
laws, ethics, members, managing members, partners, personnel, directors,
officers, employees, consultants, agents, services, business methods or
otherwise, which is intended or reasonably likely to disparage any of the
Beneficiaries, or otherwise degrade any Beneficiary’s reputation in the
business, industry or legal community in which any such Beneficiary or person
operates; provided that Conlin shall be permitted to (a) make any statement
that is required by applicable securities or other laws to be included in a
filing or disclosure document, subject to prior notice to PRIMEDIA thereof, (b)
issue any press release or public statement regarding the fact of a termination
of Conlin’s employment, subject to PRIMEDIA’s prior review and comment, (c)
defend himself against any statement made by PRIMEDIA or such other
Beneficiary, as applicable, that is intended or reasonably likely to disparage
Conlin or otherwise degrade Conlin’s reputation in the business or
industry in which Conlin operates,
only if Conlin reasonably believes that the statements made in such defense are
not false statements and (d) provide truthful testimony in any legal proceeding
or process.

 

 

4.4           Continuation of Restrictive Covenants and
Indemnification; Separate Liability. 
Conlin agrees and acknowledges that, except as may be expressly
otherwise agreed by the parties hereto in writing, the restrictive covenants
set forth in Sections 10 and 11 of the Employment Agreement and the
indemnification provisions set forth in Section 13 of the Employment Agreement
shall continue in full force and effect following the Termination Date,
pursuant to their terms (except that the phrase “content websites” in
Section 11(a) of the Employment Agreement is hereby amended by replacing
such phrase with the following: “content websites for which the main subject
matter is automotive (including trucks, motorcycles or off-road vehicles),
surfing, skiing, guns, fishing, hunting, equestrian, stereos, home theatre,
scrap-booking, quilting, apartments or new homes”).  Conlin further agrees and understands that
his obligations set forth in Sections 4.1, 4.2 and 4.3 of this Agreement (and
the restrictive covenants set forth in the Employment Agreement) are separate
from any other provisions in this Agreement and that any breach of those
provisions (or any of the restrictive covenants of the Employment Agreement)
may be treated by the Beneficiaries as a breach of this covenant for which
Conlin may be separately liable, and for which PRIMEDIA may, at its option (in
lieu of the provisions set forth in Section 11(c)(iv) of the Employment
Agreement), elect to cease payment of any amounts hereunder and/or cease
provision of the medical insurance (in each case as otherwise provided pursuant
to Section 1 of this Agreement) and/or seek the return of the monetary
consideration paid hereunder, in addition to other remedies.  Notwithstanding the foregoing, PRIMEDIA may
only cease payment of any amounts hereunder and/or cease provision of the
medical insurance (in each case as otherwise provided pursuant to Section 1 of
this Agreement) and/or seek the return of the monetary consideration paid
hereunder following (a) in the event of a breach by Conlin of the restrictive
covenants of the Employment Agreement, which breach Conlin does not cure within
three (3) business days after delivery by PRIMEDIA of notice to Conlin of such
breach or (b) in the event of a breach by Conlin of the covenants contained in
Sections 4.1, 4.2 or 4.3 of this Agreement, following written notice by
PRIMEDIA to Conlin of the then Chairman of PRIMEDIA’s good faith determination
that such a breach has occurred.

5.                                      GOVERNING LAW; RESOLUTION OF DISPUTES

5.1           Governing
Law.

This Agreement and the Mutual Releases shall each be
governed and interpreted in accordance with and enforced in all respects
pursuant to the laws of the State of New York, irrespective of the choice of
law rules of that or any other jurisdiction that direct the application of the
laws of any jurisdiction other than the State of New York.

5.2           Resolution
of Disputes

Any disagreement or controversy
arising out of or relating to this Agreement (other than pursuant to
Section 4 of this Agreement or Sections 10 and 11 of the Employment Agreement)
shall be exclusively resolved by way of confidential arbitration.  Either party may submit the disagreement or
controversy to arbitration in accordance with the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association
(“AAA”), such arbitration to be conducted before a panel of three arbitrators,
one selected by each of the parties hereto and the third by the two other
arbitrators so selected.  The arbitration
shall be held in New York, New York.  The
arbitrators shall be bound by the express terms of the Agreement.  The award rendered in any such proceeding,
which may include an award of attorneys’ fees, shall be made in writing and
shall be final and binding on the parties, and judgment upon the award may be
entered in any court having competent jurisdiction thereof.  PRIMEDIA and Conlin shall each pay half of
all costs of the arbitrators; provided, however, that PRIMEDIA
shall pay all such costs, as well as Conlin’s attorneys’ fees, in the event
that the arbitration panel determines that Conlin has prevailed on a clear
preponderance of the material issues in dispute in such arbitration.

 

 

 

6.                                      SEVERABILITY

If
any provision of this Agreement is determined to be invalid or unenforceable,
in whole or in part, this determination will not affect any other provision of
this Agreement or the remaining portion of a partially invalid provision, which
shall remain in force, and the provision in question shall be modified by the
court so as to be rendered enforceable.

7.                                      CONSTRUCTION

Each
party and its counsel have reviewed this Agreement and the Mutual Releases and
have been provided the opportunity to review this Agreement and the Mutual
Releases and accordingly, the normal rule of construction to the effect that
any ambiguities are to be resolved against the drafting party shall not be
employed in the interpretation of this Agreement or the Mutual Releases.  Instead, the language of all parts of this
Agreement and the Mutual Releases shall be construed as a whole, and according
to their fair meaning, and not strictly for or against either party.

8.                                      ACCEPTANCE AND EFFECTIVENESS

This Agreement shall become effective immediately upon
Conlin’s execution of this Agreement; provided, however, that
PRIMEDIA’s obligation to make any of the payments provided for in Section
1.1(a) through (c) of this Agreement shall not become effective until the
eighth (8th) day following the Termination Date, so long as Conlin has not then
revoked the General Release.

9.                                      ENTIRE AGREEMENT; COUNTERPARTS

9.1           The
Agreement and the Mutual Releases together set forth the entire agreement
between the parties hereto and fully supersede any and all prior agreements or
understandings, including the Employment Agreement (other than as expressly set
forth herein, including with respect to the Employment Agreement to the extent
described in Section 4.4 hereof) between the parties hereto pertaining to the
subject matter hereof.

9.2           This
Agreement may be executed in one or more counterparts and by the different
parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement.

[Signatures on next page.]

 

                IN WITNESS WHEREOF, the parties
hereto have executed this Separation Agreement effective as of the date first
above written.

 

	
   

  	
   

  	
  PRIMEDIA,
  INC.

  	
   

  
	
   

  	
   

  	
  By:

  	
     /s/ Beverly C.
  Chell

  
	
   

  	
   

  	
   

  	
  Title:

  	
     Vice Chairman

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  KELLY CONLIN

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Kelly Conlin

  
	
   

  	
   

  	
   

  	
   

  
						

 

 

Schedule
A

 

Company-paid life insurance;
Accidental death & dismemberment insurance

No later than ten (10) days after the end of the Revocation
Period, PRIMEDIA will reimburse Conlin, in a lump sum, for the premiums payable
by Conlin to obtain life insurance and accidental death & dismemberment insurance,
for the Severance Period, that provides equivalent benefits to those provided
under the company-paid life insurance and accidental death & dismemberment
insurance, to which Conlin was entitled immediately prior to the Termination
Date, the aggregate cost of which will not exceed $250.00.

Short-term disability benefits

PRIMEDIA will provide Conlin with short-term disability
benefit coverage, on a self-insured basis, on the same terms and conditions
under which Conlin was entitled to receive short-term disability benefits
immediately prior to the Termination Date pursuant to New York State law ($170
per week for up to 26 weeks of disability), for the period ending
October 24, 2007.

Long-term disability benefits

PRIMEDIA will provide Conlin with long-term disability
insurance, either through PRIMEDIA’s long-term disability carrier or, if
PRIMEDIA cannot reasonably obtain such coverage through such carrier, on a
self-insured basis, for the Severance Period, that provides equivalent benefits
to those provided under PRIMEDIA’s long-term disability insurance plan to which
Conlin is entitled immediately prior to the Termination Date, at the same cost
to Conlin payable prior to the Termination Date.

Health Reimbursement Account
(“HRA”)

No
later than ten (10) days after the end of the Revocation Period, PRIMEDIA will
pay Conlin an amount equal to $3,082.04 in respect of his participation in
PRIMEDIA’s HRA program, in respect of the balance of the Severance Period.

 

 

 

Schedule B

 

	
   

  	
   

  	
   

  	
   

  
	
  2003
  Expenses and Tax Gross-Up Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Travel and rent expenses:

  	
   

  	
  $

  	
  48,730

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tax Gross-Up:

  	
   

  	
  $

  	
  86,690

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2004
  Expenses and Tax Gross-Up Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Travel and rent expenses:

  	
   

  	
  $

  	
  150,901

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tax Gross-Up:

  	
   

  	
  $

  	
  279,939

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005
  Expenses and Tax Gross-Up Amount

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Travel and rent expenses:

  	
   

  	
  $

  	
  103,899

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tax Gross-Up:

  	
   

  	
  $

  	
  186,032

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total payments to be made:

  	
   

  	
  $

  	
  552,661

  	
   

  

 

 

Exhibit I

 

GENERAL RELEASE

 

Section 1.               Release.  For and in consideration of the payment of
the amounts and the provision of the benefits described in Section 1 of that
certain Separation Agreement dated as of December 30, 2005 by and between
Kelly Conlin (“Conlin”) and PRIMEDIA Inc. (“PRIMEDIA”) (the “Separation
Agreement”), Conlin hereby agrees on behalf of himself, his agents, assignees,
attorneys, successors, assigns, heirs and executors, to, and Conlin does
hereby, fully and completely forever release the Beneficiaries (as such term is
defined in the Separation Agreement) and their respective past, current and
future affiliates, predecessors and successors and all of their respective past
and/or present officers, directors, partners, members, managing members,
managers, employees, agents, representatives, administrators, attorneys,
insurers and fiduciaries, in their individual and/or representative capacities
(hereinafter collectively referred to as the “Company Releasees”), from any and
all causes of action, suits, agreements, promises, damages, disputes,
controversies, contentions, differences, judgments, claims, debts, dues, sums
of money, accounts, reckonings, bonds, bills, specialities, covenants,
contracts, variances, trespasses, extents, executions and demands of any kind
whatsoever, which Conlin or his agents, assignees, attorneys, successors, assigns,
heirs and executors ever had, now have or may have against Company Releasees or
any of them, in law, admiralty or equity, whether known or unknown to Conlin,
for, upon, or by reason of, any matter, action, omission, course or thing
whatsoever occurring up to the date this General Release is signed by Conlin,
including, without limitation, in connection with or in relationship to
Conlin’s employment or other service relationship with PRIMEDIA, the
termination of any such employment or service relationship and any applicable
employment, compensatory or equity arrangement with PRIMEDIA (including,
without limitation, the Employment Agreement (as such term is defined in the
Separation Agreement), any exhibits attached thereto, any amendments thereto,
and any equity or employee benefit plans, programs, policies or other
arrangements), any claims of breach of contract, wrongful termination,
retaliation, fraud, defamation, infliction of emotional distress or national
origin, race, age, sex, sexual orientation, disability, medical condition or
other discrimination or harassment, (such released claims are collectively
referred to herein as the “Released Claims”); provided that such Released
Claims shall not include any claims to enforce Conlin’s rights or obligations
under, or with respect to, the Separation Agreement.

Section 2.               Waiver.  Notwithstanding the generality of Section 1
above, the Released Claims include, without limitation: (i) any and all claims
relating to base salary or bonus payments or benefits pursuant to the
Employment Agreement, other than those payments and benefits specifically
provided for in Section 1 the Separation Agreement (which, for the avoidance of
doubt, includes any protections and benefits relating to indemnification as
provided in Section 13 of the Employment Agreement); (ii) any and all claims
under Title VII of the Civil Rights Act of 1964, the Age Discrimination in
Employment Act of 1967, the Civil Rights Act of 1971, the Civil Rights Act of
1991, the Fair Labor Standards Act, Employee Retirement Income Security Act of
1974, the Americans with Disabilities Act, the Family and Medical Leave Act of
1993, the Fair Employment and Housing Act, and any and all other federal, state
or local laws, statutes, rules and regulations pertaining to employment or
otherwise; and (iii) any claims for wrongful discharge, breach of contract,
fraud, misrepresentation or any compensation claims, or any other claims under
any statute, rule or regulation or under the common law, including compensatory
damages, punitive damages, attorney’s fees, costs, expenses and all claims for
any other type of damage or relief.

THIS MEANS THAT, BY SIGNING THIS GENERAL RELEASE, CONLIN WILL
HAVE WAIVED ANY RIGHT CONLIN MAY HAVE HAD TO BRING A LAWSUIT OR MAKE ANY CLAIM
AGAINST COMPANY RELEASEES BASED ON ANY ACTS OR OMISSIONS OF COMPANY RELEASEES
UP TO THE DATE OF THE SIGNING OF THIS AGREEMENT.

 

 

Section 3.               Waiver of Equity Rights.  Except with respect to the Options and
Restricted Stock as provided for in Section 1.3 of the Separation Agreement, in
consideration of the payments and benefits provided for elsewhere in Section 1
of the Separation Agreement, and for other good and valuable consideration,
Conlin hereby forever waives, releases and fully relinquishes any right or
title to any and all equity, including but not limited to Options and
Restricted Stock (as defined in the Separation Agreement), whether granted to
Conlin as of the Termination Date or not, in PRIMEDIA or any subsidiary,
partner or joint venture of PRIMEDIA; provided, however, that
nothing in this Section 3 shall be construed to limit in any way Conlin’s right
to purchase any such equity in the open market.

 

Section 4.               Conlin’s Representations and
Warranties.  Conlin represents that
he has read carefully and fully understands the terms of this General Release,
and that Conlin has been advised to consult with an attorney and has availed
himself of the opportunity to consult with an attorney prior to signing this
General Release.  Conlin acknowledges and
agrees that he is executing this General Release willingly, voluntarily and
knowingly, of his own free will, in exchange for the payments and benefits
described in Section 1 of the Separation Agreement, and that he has not relied
on any representations, promises or agreements of any kind made to him in
connection with his decision to accept the terms of the Separation Agreement or
the General Release, other than those set forth in the Separation
Agreement.  Conlin further acknowledges,
understands, and agrees that his employment with PRIMEDIA has terminated, that
the provisions of Section 1 of the Separation Agreement are in lieu of any and
all payments and benefits to which Conlin may otherwise be entitled to receive
pursuant to the Employment Agreement, that Conlin will not be reemployed by
PRIMEDIA, and that Conlin will not apply for or otherwise seek employment with
PRIMEDIA or any of its parents, companies, subsidiaries, divisions or
affiliates.  Conlin acknowledges that he has been advised that he is entitled to take
at least twenty-one (21) days to consider whether he wants to sign this General
Release and that the Age Discrimination in Employment Act gives him the right
to revoke this General Release within seven (7) days after it is signed, and
Conlin understands that he will not receive any payments under the Separation
Agreement until such seven (7) day revocation period has passed and then, only
if he has not revoked this General Release. 
To the extent Conlin has executed this General Release within less than
twenty-one (21) days after its delivery to him, Conlin hereby acknowledges that
his decision to execute this General Release prior to the expiration of such
twenty-one (21) day period was entirely voluntary, and taken after consultation
with and upon the advice of his attorney.

Conlin fully understands that this
General Release is a legally binding document and that by signing this General
Release Conlin is prevented from filing, commencing or maintaining any action
against any of the Company Releasees, other than to enforce his rights under
the Separation Agreement and the PRIMEDIA Release (as such terms are defined in
the Separation Agreement) as well as his rights as set forth in Section 2 above
of this General Release.

 

This General Release is final and
binding and may not be changed or modified, except by written agreement by both
of PRIMEDIA and Conlin.

 

	
  Dated:
  

  	
  1/11/06

  	
   

  	
   

  	
  /s/
  Kelly Conlin

  
	
   

  	
   

  	
  KELLY
  CONLIN

  

 

 

 

Exhibit II

 

RELEASE

 

PRIMEDIA Inc. (“PRIMEDIA”)
hereby agrees on behalf of itself and the other Beneficiaries (as such term is
defined in that certain Separation Agreement dated as of December 30, 2005 by
and between Kelly Conlin (“Conlin”) and PRIMEDIA (the “Separation Agreement”)),
in consideration of the covenants and agreements referred to in the Separation
Agreement and other good and valuable consideration, the receipt and
sufficiency of which is hereby irrevocably acknowledged, that the Beneficiaries
hereby, fully and completely forever release Conlin (hereinafter referred to as
the “Releasee”, which term includes all successors, heirs, executors,
administrators, estate trustees and assigns of Conlin) from any and all causes
of action, suits, agreements, promises, damages, disputes, controversies,
contentions, differences, judgments, claims, debts, dues, sums of money,
accounts, reckonings, bonds, bills, specialities, covenants, contracts,
variances, trespasses, extents, executions and demands of any kind whatsoever,
which the Beneficiaries or any of their respective agents, assignees,
attorneys, successors, assigns, heirs and executors ever had, now have or may
have against the Releasee, in law, admiralty or equity, whether known or
unknown to the Beneficiaries, for, upon, or by reason of, any matter, action,
omission, course or thing whatsoever occurring up to the date this Release is
signed by PRIMEDIA on behalf of itself and the other Beneficiaries, provided
that the foregoing shall not include any claims to enforce the Beneficiaries’
rights or Conlin’s obligations under, or with respect to, the Separation
Agreement (or any exhibits, attachments, agreements or benefit plans or
arrangements referenced therein).

PRIMEDIA fully understands that
this Release is a legally binding document and that by signing this Release
PRIMEDIA is prevented from filing, commencing or maintaining any action against
any Releasee, other than to enforce PRIMEDIA’s or the other Beneficiaries’
rights under the Separation Agreement and the General Release (as such terms
are defined in the Separation Agreement).

 

This Release is final and binding
and may not be changed or modified, except by written agreement by both of
PRIMEDIA and the Releasee.

 

	
  Dated:

  	
  1/11/2006

  	
   

  	
  PRIMEDIA,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Beverly C. Chell 

  
	
   

  	
  Title:

  	
  Vice Chairman

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