Document:

Amendment No. 1 to Martin E. Kenney Employment Agreement

    

      EXHIBIT
        10.6

      

      

      AMENDMENT
        NO. 1 TO RESTATED AND REVISED EMPLOYMENT

      AGREEMENT
        DATED AS OF JANUARY 1, 2002 BETWEEN WRC MEDIA INC.

      AND
        MARTIN E. KENNEY

      

      

      1.    Section
        5
        of the above agreement is hereby amended by re-designating the existing Section
        5 as Paragraph 5(A), and by adding the following Paragraph 5(B):

       

      “B. In
        the
        event a sale of substantially all of the assets of American Guidance Service,
        Inc., or of a controlling interest in the capital stock of American Guidance
        Service, Inc., is consummated on or before December 31, 2005, then within
        30
        days of the closing or other event by which delivery occurs, the Company
        will
        pay to Executive a Value Enhancement Bonus determined according to the following
        formula:

      

      
        	
                Total
                  Consideration Paid By All Buyers

              	
                Bonus
                  To Be Paid

              
	
                <$250
                  million USD

              	
                1⁄2
                  Executive’s Base Salary as of the date of closing, in no event less than
                  $287.5 thousand

              
	
                $250
                  million - $300 Million USD

              	
                Executive’s
                  Base Salary as of the date of closing, in no event less than $575
                  thousand

              
	
                >$300
                  million

              	
                An
                  amount equal to the sum of (i) Executive’s Base Salary as of the date of
                  closing, in no event less than $575 thousand plus
                  (ii) one percent of the excess of consideration received over $300
                  million

              

      

      

      In
        the
        event that less than the entirety of the assets of capital stock of AGS is
        sold,
        the total consideration shall be, for purposes of this calculation, grossed
        up
        to determine a pro
        forma
        enterprise value that includes the value of stock or assets not sold, and
        the
        above formula will be applied to that total enterprise value. 

      

      Total
        consideration shall include all escrows and reserves that are subject to
        post-closing adjustments. 

      

      Total
        consideration shall be computed before allowance for taxes, currency exchange,
        and transactional expenses. 

       

      
        In
          the
          event any portion of total consideration is paid other than in cash, the
          fair
          market value of the non-cash component shall be determined as (i) in the
          case of
          publicly traded securities, the highest price of such securities attained
          in the
          period commencing two weeks before the closing and ending two weeks after
          the

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        closing,
          or (ii) in the case of consideration other than cash or publicly-traded
          securities, that value ascribed to the consideration in the books of the
          seller.” 

      

      
         

      

      2.    Section
        15 is amended to delete its second sentence, and to substitute in its place:
        

      

      “Notwithstanding
        the foregoing, Sections 5(B), 10, 11, 12, 14 and 16 and, if Executive's
        employment terminates in a manner giving rise to a payment under Section
        13,
        Section 13 shall survive the termination of this Agreement.”

      

      3.    All
        other
        terms and conditions of the above Agreement remain in full force and
        effect.

       

      
        
          	WRC
                  MEDIA INC.	 	MARTIN
                  E. KENNEY
	 
 	 
 	 
 
	 	 	 
	
                  By:
                    /s/                                       

                	     
                  	
                  /s/                                              
                     

                
	 	
                
	 	 

        

      

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      

        This
          Restated and Revised EMPLOYMENT AGREEMENT (“Agreement") is made and entered into
          as of the 1st day of January, 2002, between WRC
          MEDIA INC.,
          a
          Delaware corporation (the "Company"), and MARTIN
          E. KENNEY,
          JR.,
          an
          individual resident of the State of Pennsylvania (the "Executive").

         

        WHEREAS.
          the Company wishes to continue to employ Executive, and Executive wishes
          to
          accept such employment, on the following terms and Conditions, effective
          as of
          the date set forth above 

         

        NOW,
          THEREFORE, in consideration of the mutual covenants contained herein and
          intending to be legally bound hereby, the parties hereby agree as follows:
          

         

        SECTION
          1. Employment.
          The
          Company hereby employs Executive and Executive accepts employment by the
          Company, on the terms and Conditions contained in this Agreement. 

         

        SECTION
          2. Term.
          The
          employment of Executive pursuant hereto shall commence on January 1, 2002
          and
          shall remain in effect until December 31, 2004, and shall be renewed
          automatically thereafter for successive one year terms, unless terminated
          by
          Executive upon 90 days prior written notice to the Company or by the Company
          upon 90 days prior written notice to Executive. The period of time between
          January 1, 2002 and the termination of this Agreement pursuant to its terms
          is
          herein referred to as the "Term". 

         

        SECTION
          3. Duties
          and Extent of Service.
          Executive shall serve the Company as Chief Executive Officer or in such
          other
          position as may be mutually agreed upon by Executive and the Company and
          shall
          perform such services and duties for the Company as are customarily performed
          by
          an executive in Executive's position at a business such as the Company's
          business and as the Board of Directors of the Company (the "Board of Directors")
          may assign or delegate to him from time to time as provided in the By-laws
          of
          the Company. Executive shall devote his full business knowledge, skill,
          time and
          effort exclusively to the performance of his duties for the Company and
          the
          promotion of its interests. Executive's duties hereunder shall be performed
          at
          such place or places as the interests, needs, businesses or opportunities
          of the
          Company shall require. Executive shall report to the Board of Directors
          of the
          Company. 

         

        SECTION
          4. Base
          Salary.
          Commencing January 1, 2002 Executive shall be paid a base salary (the "Base
          Salary") at a rate of $575,000 per annum (the "Base Salary"), in accordance
          with
          the Company’s payroll practices. The Base Salary shall not be reviewed for
          increase until December 31, 2003 and shall thereafter be annually reviewed.
          

         

        SECTION
          5.
          Bonuses. Executive
          shall receive an annual bonus ("Bonus"), based on the achievement of specific
          objectives to be established by the Board of Directors on an annual basis
          in
          connection with the development of the Company's annual operating budget
          for
          earnings 

         

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

        before
          interest, depreciation, taxes and amortization and after deductions for
          any
          bonus payments payable by the Company (“Bonus EBIDTA”). For achievement of the
          following percentages of budgeted Bonus EBITDA the corresponding Bonus
          will be
          paid to Executive: 

         

        
          	
                  95%
                    

                	
                  $175,000
                    

                
	
                  100%
                    

                	
                  $225,000
                    

                
	
                  105%
                    

                	
                  $262,500
                    

                
	
                  110%
                    

                	
                  $300,000
                    

                
	
                  115%
                    

                	
                  $337,500
                    

                
	
                  120%
                    

                	
                  $375,000
                    

                
	
                  125%
                    

                	
                  $437,500
                    

                
	
                  130%
                    

                	
                  $500,000
                    

                
	
                  135%
                    

                	
                  $575,000
                    

                
	
                  140%
                    

                	
                  $650,000
                    

                

        

         

        For
          each
          year of the Term, Bonus EBIDTA will be computed according to the budget
          of the
          Company adopted by the Board of Directors on or before March 31 or, in
          the event
          no budget is so approved, the prior year budget; provided that the March
          31 approval date shall be equitably extended if management of the Company
          has
          not delivered to the Board of Directors on or before January 30 a good
          faith
          proposed budget for the relevant fiscal year. Separate and apart from the
          foregoing, Executive shall also receive annually a guaranteed bonus of
          $200,000
          (the "Guaranteed Bonus"). Payment dates shall be determined by the Board
          of
          Directors but will in no event occur later than 30 days after delivery
          to the
          Board of Directors of audited financial statements for the relevant fiscal
          year
          of the Company. 

         

        In
          the
          event the fiscal year of the Company is changed to other than a calendar
          year
          basis, a prorated Bonus opportunity will be made available to Executive,
          the
          terms and conditions of which (including applicable Bonus EBITDA for the
          stub
          period applicable to the pro rated Bonus) shall be determined in good faith
          by
          the Board of Directors in a manner reasonably consistent with the Bonus
          in
          effect for the fiscal year in which such change is made. 

         

        In
          the
          event of a sale or disposition of any business unit of the Company (including
          subsidiaries and their subsidiaries, or discrete business operations owned
          by
          them), budgeted Bonus EBITDA shall be adjusted by reducing the Bonus EBITDA
          by
          an amount equal to the anticipated EBITDA for the remainder of the then-current
          year attributable in the budget for the then-current year to the operations
          of
          the disposed-of unit. 

         

        SECTION
          6. Fringe
          Benefits.
          Executive shall be entitled to participate, to the extent eligible, in
          such
          medical, dental, disability, life insurance, deferred compensation and
          other
          benefit plans (such as pension and profit sharing plans) as the Company
          shall
          maintain for the benefit of 

         

         

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

         

        employees
          generally, on the terms and subject to the Conditions set forth in such
          plans.
          Executive shall accrue vacation in accordance with the Company’s applicable
          policy. 

         

        SECTION
          7. Expenses.
          The
          Company shall reimburse Executive promptly for all reasonable expenses
          incurred
          by Executive in accordance with the Company's budget and policy in connection
          with his duties and responsibilities hereunder, including, without limitation,
          expenses associated with any relocation. 

         

        SECTION
          8. [Intentionally Omitted] 

         

        SECTION
          9. Stock
          Options.
          

                (a)
          Grant.
          In
          addition to any other stock option grant made or to be made to Executive
          by the
          Company, the Company shall grant Executive a nonqualified option to purchase
          120,000 shares of Common Stock at an exercise price of $40.00 per share.
          Such
          option shall vest 33.3% on December 31, 2002, 33.3% on December 31, 2003
          and the
          final 33.4% on December 31, 2004; provided that such option shall vest
          immediately upon a Change of Control (as defined below); and provided
          further that such option shall terminate in its entirety in the event that
          Executive's employment hereunder is terminated by the Company for "Good
          Cause"
          (as defined in Section 13) and Executive shall have no rights with respect
          to
          any portion thereof, whether or not vested. If Executive's employment hereunder
          is terminated by the Company for any reason other than "Good Cause" or
          by
          Executive for any reason then the foregoing vesting schedule shall apply.
          

         

        If
          a
          Change of Control (as defined below) occurs, the option shall be deemed
          to have
          fully vested as of the date of such Change of Control. "Change of Control"
          shall
          mean the acquisition of direct or indirect Control (as defined below) of
          the
          Company by any Person (other than EAC III L.L.C.
          (“EAC III”), SGC Partners II LLC (“SGC”) or any of their Affiliates (as defined
          below) or group other than any group including EAC III or SGC or any of
          their
          Affiliates. "Affiliate" means, with respect to any specified Person, any
          other
          Person that directly or indirectly, through one or more intermediaries,
          Controls, is Controlled by, or is under common Control with, such specified
          Person. For purposes of this Section 9(a), "Control" (including, with
          correlative meanings, the terms" Controlled by" and "under common Control
          with"), as used with respect to any Person, means the direct or indirect
          possession of the power to direct or cause the direction of the management
          or
          policies of such Person, whether through the ownership of voting securities,
          by
          contract or otherwise. “Person” means any individual, corporation, partnership,
          trust, association, limited liability company, joint venture, joint-stock
          company or any other entity or organization, including a government or
          governmental agency. A consummated private sale of 50% or more of the common
          stock of the Company (including any rights to convert securities to the
          common
          stock of the Company, whether or not such right is exercised) in a single
          transaction or in a series of related transactions, in each case, with
          any
          Person or their Affiliates shall presumptively constitute a Change of
          Control.

         

                (b)
          [Reserved]

         

                (c)
Exercise
          of
          Stock Options. The Executive may exercise the vested portion of options
          granted pursuant to Sections 9(a) by notifying the Company of the number
          of
          shares of 

         

         

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

         

        Common
          Stock to be purchased under such option and delivering with such notice
          an
          amount equal to the aggregate exercise price for such number of shares
          in cash.
          Notwithstanding the foregoing, Executive may notify the Company that Executive
          desires to make a cashless exercise of such option with respect to a specified
          number of shares of Common Stock, in which case such option shall be deemed
          exercised with respect to such specified number of shares but Executive
          shall
          only be entitled to receive a number of shares of Common Stock equal to
          the
          product of (A) such specified number multiplied by (B) the quotient of
          (1) the
          aggregate Fair Market Value of such specified number of shares of Common
          Stock
          (determined as of the date the Company receives such notice in accordance
          with
          Section 14(b) minus the aggregate exercise price for such specified number
          of
          shares divided by (2) such aggregate Fair Market Value. Delivery of shares
          with
          respect to any exercise shall take place within 10 days of exercise.

         

                (d)
Transfer,
          Adjustment of Stock Options. The options granted hereby shall not be
          transferable or assignable by Executive, otherwise than by will or the
          laws of
          descent and distribution, and no such option shall be subject to execution,
          attachment or other similar process. In no event shall any such option
          be
          exercisable on or after the tenth anniversary of the date hereof. In the
          event
          of changes in the outstanding Common Stock by reason of stock dividends,
          stock
          splits, reverse stock splits, recapitalizations, reorganizations, mergers,
          consolidations, combinations or other changes in capitalization occurring
          after
          the date of this Agreement, the number of shares and exercise price under
          such
          option shall be equitably adjusted by the Board of Directors of the Company.
          Any
          amount payable under such option shall be subject to applicable withholding
          taxes. 

         

                (e)
Tag-Along
          Rights If EAC III, SGC and their Affiliates (the "Sellers") desire to
          transfer in excess of 10% of their shares of Common Stock to a prospective
          transferee (or transferees) other than (A) in connection with a public
          offering
          of the Common Stock (a "Permitted Transfer") or (B) to EAC III, SGC or
          their
          Affiliates (a "Permitted Transferee"), and, after giving effect to such
          transfer, the Sellers shall have transferred in excess of 75% of their
          aggregate
          shares of Common Stock to a transferee (or transferees) other than in connection
          with a Permitted Transfer or to Permitted Transferees, the Sellers shall,
          as a
          condition to such transfer, (i)
          provide a notice to Executive in writing (a "Tag-Along Notice") of the
          material
          terms of the proposed transfer at least 15 days prior to such transfer
          and (ii)
          permit Executive (or cause Executive to be permitted) to sell (either to
          the
          prospective transferee or to another financially reputable transferee reasonably
          acceptable to Executive) the same portion of his respective shares of Common
          Stock (including such shares issuable pursuant to any option) (the “Shares”) as
          that transferred by the Sellers in the aggregate to transferees other than
          Permitted Transferees or in Permitted Transfers (after giving effect to
          such
          proposed transfer) on the same terms and conditions, subject to the same
          agreements and at the same price as the proposed sale by the Sellers (less
          any
          option exercise price), which sale shall take place on the date the Sellers'
          shares of Common Stock (or such portion) are transferred to such transferee
          (or
          transferees). Executive shall have five days from the date of receipt of
          a
          Tag-Along Notice to exercise his right to sell pursuant to clause (ii)
          above by
          delivering written notice to the Sellers of his intent to exercise such
          right.
          Executive's right to sell pursuant to clause (ii) above shall terminate
          if not
          exercised within such five-day period. If Executive elects to exercise
          his right
          to sell pursuant to clause (ii), Executive shall share, on a pro rata basis,
          the
          legal, investment banking and other expenses of the Sellers incurred in
          connection with such transfer. 

         

         

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

         

                (f)
Drag-Along
          Rights.
          If at
          any time the Sellers desire to transfer all (or any portion in excess of
          50%) of
          their shares of Common Stock to any person or entity that is not considered
          a
          Permitted Transferee under Section 9(e), above (a "Third Party Purchaser"),
          the
          Sellers shall have the right to require that Executive transfer the same
          portion
          of his respective Shares to such Third Party Purchaser(s) on the same terms
          and
          conditions, subject to the same agreements and at the same price as the
          sale by
          the Sellers. The Sellers shall provide a notice to Executive in writing
          (a
          "Drag-Along Notice") of such sale at least 10 days prior to such transfer,
          and
          the Drag-Along Notice shall identify such Third Party Purchaser(s), all
          material
          terms of the sale and the date of closing. Upon the closing of any sale
          by the
          Sellers of all (or such portion) of its shares of Common Stock as described
          in a
          Drag-Along Notice, such Third Party Purchaser(s) shall pay to Executive
          the
          consideration payable to Executive in connection with such sale of all
          (or such
          portion) of his Shares to such Third Party Purchaser(s), net of any option
          exercise price and Executive's proportionate share of the legal, investment
          banking and other expenses of the Sellers incurred in connection with such
          sale,
          and the Executive's Shares (or such portion) shall be deemed transferred
          to such
          Third Party Purchaser(s).

         

        SECTION
          10. Registration
          Rights.
          Beginning no earlier than 180 days after the consummation of a public offering
          of Common Stock, the Company shall grant to the management of the Company
          the
          right to require the Company to register for re-sale under applicable federal
          securities laws shares of Common Stock held by Executive (the “Registration
          Right”); provided that (i)
          the Registration Right may be exercised only once by the management of
          the
          Company, (ii)
          the
          Registration Right shall be exercised on behalf of all members of management
          by
          the Chief Executive Officer of the Company, and (iii) the Registration
          Right may
          not be exercised at any time or during any period the Company or lead
          underwriter to the Company determines in good faith that such exercise
          would
          adversely affect a public offering of Common Stock that the Company is
          in good
          faith considering. The terms and conditions of the Registration Right
          (including, without limitation, the number of shares of Common Stock that
          may be
          registered) shall be customary for the private equity industry.

         

        SECTION
          11.
          Noncompete and Nonsolicitation During
          the Term, and for two years thereafter, Executive shall not directly or
          indirectly (other than as an employee of or consultant to the Company or
          an
          affiliate of the Company): 

                (a)
          engage in
          activities or businesses within the United States which are substantially
          in
          competition with the Company (“Competitive Activities"), including (i) selling
          goods or services of the type sold by the Company or any of its subsidiaries;
          (ii) soliciting or attempting to solicit any customer or client or prospective
          customer or client of the Company (or any of its subsidiaries) including,
          without limitation, actively sought prospective customers or clients, to
          purchase any goods or services of the type sold by the Company or any of
          its
          subsidiaries from anyone other than the Company or any of its subsidiaries;
          and
          (iii) assisting any person in any way to do, or attempt to do, anything
          prohibited by (i) or (ii) above; 

         

                (b)
          perform any
          action, activity or course of conduct which is substantially detrimental
          to the
          business or business reputation of the Company or any of its subsidiaries
          

         

         

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

         

        ("Detrimental
          Activities"), including (i) soliciting, recruiting or hiring any employees
          of
          the Company or persons who have worked for Ripplewood Holdings L.L.C.
          ("Ripplewood"), the Company or any of their respective affiliates; (ii)
          soliciting or encouraging any employee of Ripplewood, the Company or any
          of
          their respective affiliates to leave the employment of Ripplewood, the
          Company
          or any of their respective affiliates; (iii) intentionally interfering
          with the
          relationship of Ripplewood, the Company or any of their affiliates with
          any
          person or entity who or which is employed by or otherwise engaged to perform
          services for Ripplewood, the Company or any such affiliate; and (iv) disclosing
          or furnishing to anyone any confidential information relating to Ripplewood,
          the
          Company or any of their respective affiliates or otherwise using such
          confidential information for its own benefit or the benefit of any other
          person;
          or 

         

                (c)
          establish in the
          United States any new business which engages in Competitive Activities.
          

        

        Notwithstanding
          anything to the contrary contained in this Agreement, the foregoing covenant
          shall not be deemed breached as a result of the ownership by Executive
          of: (i)
          less than an aggregate of 5% of any class of stock of a person engaged,
          directly
          or indirectly, in Competitive Activities; provided, however, that such
          stock is listed on a national securities exchange or is quoted on the National
          Market System of NASDAQ; (ii) less than an aggregate of 10% in value of
          any
          instrument of indebtedness of a person engaged, directly or indirectly,
          in
          Competitive Activities; or ( iii) stock or other debt or equity interests
          in the
          Company, or the participation by Executive in the activities and business
          conducted by the Company or any of its subsidiaries; provided, however,
          that, for the lesser of a period of two years from the date hereof or so
          long as
          Executive owns stock or other debt or equity interests in the Company or
          participates in the activities or business conducted by the Company or
          any of
          its subsidiaries, Executive shall not engage in any Competitive Activities
          except to the extent Executive engaged in such Competitive Activities as
          of
          November 17, 1999. 

         

        If
          a
          judicial determination is made that any of the provisions of this Section
          11
          constitutes an unreasonable or otherwise unenforceable restriction against
          Executive, the provisions of this Section 11 shall be rendered void only
          to the
          extent that such judicial determination finds such provisions to be unreasonable
          or otherwise unenforceable. Moreover, notwithstanding the fact that any
          provisions of this Section 11 is determined not to be specifically enforceable,
          the Company shall nevertheless be entitled to recover monetary damages
          as a
          result of Executive's breach of such provision. 

         

        Executive
          agrees that the provisions of this Section 11 are reasonable and properly
          required for the adequate protection of the business and the goodwill of
          the
          Company. 

         

        SECTION
          12. Nondisclosure.
          The
          parties hereto agree that during the course of his employment by the Company,
          Executive will have access to, and will gain knowledge with respect to,
          the
          Company's Confidential Information (as defined below). The parties acknowledge
          that unauthorized disclosure or misuse of such Confidential Information
          would
          cause irreparable damage to the Company and its subsidiaries. Accordingly
          Executive agrees to the nondisclosure covenants in this Section 12. Executive
          represents that his experience and capabilities are such 

         

         

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

         

        that
          the
          provisions of Section 11 and this Section 12 will not prevent him from
          earning
          his livelihood. Executive agrees that he shall not (except as may be required
          by
          law), without the prior written consent of the Company during his employment
          with the Company under this Agreement, and any extension or renewal hereof,
          and
          thereafter for so long as it remains Confidential Information, use or disclose,
          or knowingly permit any unauthorized person to use, disclose or gain access
          to,
          any Confidential Information; provided, however, that Executive may
          disclose Confidential Information to a person to whom disclosure is reasonably
          necessary or appropriate in connection with the performance by Executive
          of his
          duties under this Agreement. Upon termination of this Agreement for any
          reason,
          Executive shall return to the Company the original and all copies of all
          documents and correspondence in his possession relating to the business
          of the
          Company or any of its affiliates, including but not limited to all Confidential
          Information, and shall not be entitled to any lien or right of retention
          in
          respect thereof. 

         

        For
          purposes of this Agreement, "Confidential Information" shall mean all business
          information (whether or not in written form) which relates to the Company,
          any
          of its affiliates or their respective businesses or products and which
          is not
          known to the public generally, including but not limited to technical
          information or reports; trade secrets; unwritten knowledge and "know-how";
          operating instructions; training manuals; customer lists; customer buying
          records and habits; product sales records and documents, and product
          development, marketing and sales strategies; market surveys; marketing
          plans;
          profitability analyses; product cost; long-range plans; information relating
          to
          pricing, competitive strategies and new product development; information
          relating to any forms of compensation or other personnel-related information;
          contracts; and supplier lists. Confidential Information shall not include
          such
          information known to Executive prior to his involvement with Ripplewood.
          

         

        SECTION
          13. Severance.
          

                (a)
          If Executive's
          employment hereunder is terminated (1) upon a breach by the Company of
          this
          Agreement; (2) by the Company for any reason other than for "Good Cause"
          (as
          defined below) including a refusal to renew the Agreement by the Company,
          or (3)
          by the Company as a result of the occurrence of the death or total disability
          of
          Executive (total disability meaning the failure of Executive to perform
          his
          normal required services hereunder for a period of three consecutive months
          during the term hereof by reason of Executive's mental or physical disability,
          as determined by an independent physician reasonably satisfactory to Executive
          and the Company) the Company shall pay to Executive as severance pay lump
          sum
          cash payments totaling the amount (in each case prorated for any portion
          of a
          year less than a full year) of his (i) Base Salary and (ii) Guaranteed
          Bonus for
          a Payment Period which is the longer of (x) the balance of the Term of
          this
          agreement and (y) twenty four months and (if applicable) (iii) the Supplemental
          Payment described in sub-paragraph (c) below. Payment of the Base Salary
          and
          Guaranteed Bonus components of such severance pay will be made within thirty
          (30) days of such termination. 

         

                (b)
          Executive shall
          have the option of receiving the Base Salary and Guaranteed Bonus components
          of
          severance pay specified in the preceding sub-paragraph in the form of equal
          continuation payments for 24 months (the "Severance Period"). In the event
          that
          Executive elects to receive severance pay in the form of continuation payments,
          Executive shall

         

         

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

         

        continue
          to receive medical, dental and vision coverage for the Severance Period,
          subject
          to Executive’s payment of the costs of such benefits to the extent such benefits
          are paid for by active employees. For purposes of this Agreement, termination
          for "Good Cause" shall exist upon the occurrence of any of the following:
          (i)
          Executive is convicted of, pleads guilty to, confesses to, or enters a
          plea of
          nolo contendere to, any felony or any crime that involves moral turpitude
          or any
          act of fraud, misappropriation or embezzlement; (ii) Executive has wilfully
          engaged in a fraudulent act to the damage or prejudice of the Company or
          any
          affiliate of the Company; (iii) any act or omission by Executive involving
          malfeasance or gross negligence in the performance of Executive's duties
          to the
          Company; or (iv) Executive otherwise wilfully fails to comply in any material
          respect with the terms of this Agreement or deviates in any material respect
          from any reasonable written policies or reasonable directives of the Board
          of
          Directors and, within 30 days after written notice from the Company of
          such
          failure or deviation, Executive has not corrected such failure. 

         

                (c)
          If Executive is
          entitled to severance payments hereunder, the Company shall pay Executive
          an
          additional amount (the "Supplemental Payment") equal to the product of
          A and B,
          where A is the Bonus that would have been paid to Executive under the terms
          of
          this Agreement for that fiscal year of the Company that includes Executive's
          date of termination (which shall be based on the Company's actual performance
          for that year), and B is a fraction, the numerator of which is the number
          of
          months in the applicable Payment Period and the denominator of which is
          12. The
          Supplemental Payment, if any, shall be made at the time the Company is
          required
          to pay Bonus for the fiscal year of the Company that includes Executive's
          date
          of termination in accordance with the provisions for payment of Bonus in
          SECTION
          5. 

        

        SECTION
          14. Options
          to Purchase and Sell Common Stock. 

                (a)
          (i) If
          Executive's employment is terminated for any reason, the Company shall
          have an
          option to purchase all or any portion of Executive's shares of Common Stock
          (including any shares obtained or obtainable through the exercise of any
          option)
          at a purchase price equal to the Fair Market Value (as defined below),
          determined in accordance with Section 14(b) as of the date of such termination.
          The Company shall within 90 days of such date of termination give notice
          in
          writing to Executive of its election to exercise or not to exercise such
          option,
          which notice shall set forth the portion, if any, of Executive's shares
          of
          Common Stock that the Company elects to purchase (the “Acquired Interest”). The
          purchase of Executive's shares of Common Stock shall take place at the
          principal
          office of Ripplewood, currently at One Rockefeller Plaza, New York, New
          York on
          the date specified by the Company (not later than the later of the twentieth
          business day following the receipt by Executive of the required notice
          from the
          Company and the satisfaction of any legal requirements to the purchase
          of the
          Acquired Interest). The consideration for the purchase of the Acquired
          Interest
          shall be paid by delivery to Executive of a certified or bank check made
          payable
          to Executive or by wire transfer of immediately available funds to a bank
          account designated by Executive, within one business day after delivery
          of
          certificates or other instruments representing Executive's shares of Common
          Stock so purchased, appropriately endorsed by Executive, free and clear
          of all
          security interests, liens, claims, encumbrances, charges, options, restrictions
          on transfer, proxies and voting and other agreements of whatever nature.
          The
          Company may assign its rights under this Section 14 to any person. 

         

         

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

         

                    (ii)
          If Executive's
          employment is terminated by the Company for other than Good Cause, including
          a
          refusal to renew the Agreement by the Company,
          Executive
          shall have an option to sell to the Company all or any portion of Executive's
          shares of Common Stock purchased
          on the Closing Date (as defined in the Redemption, Stock Purchase and
          Recapitalization Agreement dated as of August 13, 1999, as amended, among
          PRIMEDIA Inc., a Delaware corporation, and the Company) at a purchase price
          equal to the Fair Market Value of such shares, determined in accordance
          with
          Section 14(b) as of the date of such termination; provided, that to the
          extent
          that the Board of Directors of the Company reasonably determines that such
          purchase, if made, would (x) cause the Company to be or remain in default
          under
          any agreements with lenders or financing sources, despite commercially
          reasonable efforts by the Company to obtain consents or amendments necessary
          to
          permit such purchase, or (y) conflict with the terms (including with respect
          to
          priority of payment) of the 15% Senior Exchangeable Preferred Stock Due
          2011,
          par value $0.01 per share, of the Company, the Company shall be relieved
          of its
          obligations to make such purchase under this Section 14(a)(ii) while and
          to the
          extent such conditions continue to exist. Executive shall within 90 days
          of such
          date of termination give notice in writing to the Company of his election
          to
          exercise or not to exercise such option, which notice shall set forth the
          portion, if any, of Executive's shares of Common Stock that Executive elects
          to
          sell. The sale of Executive's shares of Common Stock shall take place at
          the
          principal office of Ripplewood, currently located at One Rockefeller Plaza,
          New
          York, New York, on the date specified by Executive (not later than the
          later of
          the twentieth business day following the receipt by the Company of the
          required
          notice from Executive and the satisfaction of any legal requirements to
          the sale
          of Executive's shares of Common Stock). The consideration for the sale
          of
          Executive's shares of Common Stock shall be paid by delivery to Executive
          of a
          certified or bank check made payable to Executive or by wire transfer of
          immediately available funds to a bank account designated by Executive,
          against
          delivery of certificates or other instruments representing Executive's
          shares of
          Common Stock so purchased, appropriately endorsed by Executive, free and
          clear
          of all security interests, liens, claims, encumbrances, charges, options,
          restrictions on transfer, proxies and voting and other agreements of whatever
          nature. 

         

                (b)(i)
          If a
          determination of the Fair Market Value of any shares of Common Stock is
          required
          by this Agreement when there is no public trading market for shares of
          Common
          Stock, such "Fair Market Value" shall be such amount as is determined in
          good
          faith by the Company's Board of Directors as of the date such Fair Market
          Value
          is required to be determined hereunder. In making a determination of such
          Fair
          Market Value, the Company's Board of Directors shall give due consideration
          to
          such factors as it deems appropriate, including, without limitation, the
          earnings and certain other financial and operating information of the Company
          and its subsidiaries in recent periods, its potential value and that of
          its
          subsidiaries as a whole, its future prospects and that of its subsidiaries
          and
          the industries in which they compete, its history and management and that
          of its
          subsidiaries, the general condition of the securities markets and the fair
          market value of securities of privately owned companies (with transfer
          restrictions) engaged in businesses similar to those of the Company's,
          if any.
          The Fair Market Value as determined in good faith by the Company's Board
          of
          Directors shall be binding and conclusive upon Executive. 

         

         

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

         

         

                    (ii)
          If a
          determination of the Fair Market Value of any shares of Common Stock is
          required
          by this Agreement when there is a public trading market for shares of Common
          Stock, such "Fair Market Value" shall mean the average daily closing sales
          price
          of shares of Common Stock for the ten consecutive trading days preceding
          the
          date the Fair Market Value is required to be determined hereunder. The
          closing
          price for each day shall be the last reported sales price regular way or,
          in
          case no such reported sale takes place on such day, the average of the
          reported
          closing bid and asked prices regular way, in either case on the principal
          national securities exchange on which shares of Common Stock are listed
          and
          admitted to trading, or, if not listed and admitted to trading on any such
          exchange, on the NASDAQ National Market System, or, if not quoted on the
          National Market System, the average of the closing bid and asked prices
          in the
          over-the-counter market as furnished by any New York Stock Exchange member
          firm
          selected from time to time by the Company's Board of Directors for that
          purpose.

         

        SECTION
          15. Termination;
          Survival.
          This
          Agreement shall terminate upon the termination of Executive’s employment by the
          Company. Notwithstanding the foregoing, Sections 10, 11, 12, 14 and 16
          and, if
          Executive's employment terminates in a manner giving rise to a payment
          under
          Section 13, Section 13 shall survive the termination of this Agreement.
          

         

        SECTION
          16. Miscellaneous.
          

                (a)
          This Agreement
          shall inure to the benefit of and shall be binding upon Executive and his
          executor, administrator, heirs, personal representative and permitted assigns,
          and the Company and its successors and permitted assigns; provided, however,
          that Executive shall not be entitled to assign or delegate any of his rights
          or
          obligations hereunder without the prior written consent of the Company.
          

         

                (b)
          This Agreement
          shall be deemed to be made in, and in all respects shall be interpreted,
          construed and governed by and in accordance with, the laws of the State
          of
          Delaware, without regard to the conflicts of law principles of such State.
          No
          provision of this Agreement or any related document shall be construed
          against
          or interpreted to the disadvantage of any party hereto by any court or
          other
          governmental or judicial authority by reason of such party having or being
          deemed to have structured or drafted such provision. 

         

                (c)
          This Agreement
          constitutes the entire agreement between the Company and Executive with
          respect
          to Executive's employment by the Company, and supersedes all prior agreements,
          if any, whether written or oral, between them, relating to Executive's
          employment by the Company or any of its subsidiaries. All prior agreements
          between the Company or any of its subsidiaries and Executive with respect
          to
          Executive's employment by the Company or any of its subsidiaries shall
          terminate
          and be without further force or effect as of the execution of this Agreement;
          provided, however, that any award of any compensation or other benefits
          earned
          during the term of such agreement(s), including but not limited to Bonus
          for the
          year 2001, shall survive. Executive hereby releases the Company its subsidiaries
          and its affiliates from any claims or rights under such agreements, without
          any
          liability or other adverse consequence to the Company, its affiliates or
          its
          subsidiaries. 

         

         

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

         

         

                (d)
          All notices or
          other communications required or permitted by this Agreement shall be made
          in
          writing and any such notice or communication shall be deemed delivered
          when
          delivered in person, transmitted by telecopier, or one business day after
          it has
          been sent by a nationally recognized overnight courier, at the address
          for
          notices as follows: 

         

        (i)
          if to
          the Company, 

         

        WRC
          Media
          Inc. 

        512
          Seventh Avenue 

        New
          York,
          NY 10018 

        Attention:
          Chief Operating Officer 

        Fax
          212-768-2206 

         

        with
          a
          copy to: 

         

                              Ripplewood
          Holdings L.L.C.

                              One
          Rockefeller Plaza

                              New
          York, NY 10020 

                              Attention:
          Charles Laurey

                              Fax
          212-218-2778 

         

                    (ii)
          if to Executive,

         

        Martin
          E.
          Kenney, Jr. 

        West
          Greenlawn Road 

        Paoli,
          PA
          19301 

        Fax:
          610-993-8798 

         

         

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

         

        Communications
          by telecopier also shall be sent concurrently by overnight courier, but
          shall in
          any event be effective the first business hour after confirmation of receipt
          by
          electronic transmission. Each party may from time to time change its address
          for
          notices under this Section 16(d) by giving at least five days' notice of
          such
          changed address to the other parties hereto. 

         

                (e)
          This Agreement
          maybe executed in one or more counterparts, all of which shall be considered
          one
          and the same agreement, and shall become effective when one or more of
          the
          counterparts have been signed by each of the parties and delivered to the
          other
          parties, it being understood that all parties need not sign the same
          counterpart. 

         

                (f)
          The headings
          contained in this Agreement are for reference purposes only and shall not
          affect
          in any way the meaning or interpretation of this Agreement. 

         

                (g)
          No failure or
          delay by Executive or the Company in exercising any right or power hereunder
          shall operate as a waiver thereof, nor shall any single or partial exercise
          of
          any such right or power, or any abandonment of any steps to enforce such
          a right
          or power, preclude any other or further exercise thereof or the exercise
          of any
          other right or power. Neither this Agreement nor any provision hereof may
          be
          waived, amended or modified except pursuant to an agreement in writing
          entered
          into by Executive and the Company. 

         

                (h)
          Any controversy,
          dispute or claim arising out of, in connection with, or in relation to
          the
          interpretation, performance, non-performance, validity or breach of this
          Agreement or otherwise arising out of, or in any way related to, this Agreement
          shall be determined, at the request of any party, by arbitration conducted
          in
          New York City, before and in accordance with the then-existing Rules for
          Commercial Arbitration of the American Arbitration Association, and any
          judgment
          or award rendered by the arbitrator shall be final, binding and unappealable,
          and any judgment may be entered by any state or Federal court having
          jurisdiction thereof. In its award the arbitrator shall allocate, in its
          discretion, among the parties to the arbitration all costs of the arbitration,
          including the fees and expenses of the arbitrator and reasonable attorneys'
          fees, costs and expert witness expenses of the parties. 

         

                (i)
          All amounts paid
          hereunder will be net of any applicable withholdings required by existing
          or
          future tax laws. 

        

         

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        
 

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

        

        

        WRC
          MEDIA INC.

        

        

        

        By
          /s/                                                                    
                                                                           
          

        

        

        

        MARTIN
          E. KENNEY

        

        

        

           
            /s/                                                                        

        

         

         

         

         

         

         

         

         

         

         

        13Amendment No. 2 to Richard Nota Employment Agreement

    

      EXHIBIT
        10.7

      

      

      AMENDMENT
        NO. 2 to
        EMPLOYMENT AGREEMENT, as amended dated as of the 1st day of November, 2003,
        between WRC
        MEDIA INC.,
        a
        Delaware corporation (the "Company"), and
        RICHARD NOTA,
        an
        individual resident of the State of New York (the "Executive"). 

      

      

      1.
         Section
        5
        of the above agreement, as amended is hereby amended by adding the following
        Paragraph 5(F):

       

       

      “F.
         In
        the
        event a sale of substantially all of the assets of American Guidance Service,
        Inc., or of a controlling interest in the capital stock of American Guidance
        Service, Inc., is consummated on or before December 31, 2005, then within
        30
        days of the closing or other event by which delivery occurs, the Company
        will
        pay to Executive a Value Enhancement Bonus determined according to the following
        formula:

      

      
        	
                Total
                  Consideration Paid By All Buyers

              	
                Bonus
                  To Be Paid

              
	
                <$250
                  million USD

              	
                1⁄2
                  Executive’s Base Salary as of the date of closing, in no event less than
                  $147.5 thousand

              
	
                $250
                  million - $300 Million USD

              	
                Executive’s
                  Base Salary as of the date of closing, in no event less than $295
                  thousand

              
	
                >$300
                  million USD

              	
                An
                  amount equal to the sum of (i) Executive’s Base Salary as of the date of
                  closing, in no event less than $295 thousand plus
                  (ii) one percent of the excess of consideration received over $300
                  million

              

      

      

      In
        the
        event that less than the entirety of the assets of capital stock of AGS is
        sold,
        the total consideration shall be, for purposes of this calculation, grossed
        up
        to determine a pro
        forma
        enterprise value that includes the value of stock or assets not sold, and
        the
        above formula will be applied to that total enterprise value. 

      

      Total
        consideration shall include all escrows and reserves that are subject to
        post-closing adjustments. 

      

      Total
        consideration shall be computed before allowance for taxes, currency exchange,
        and transactional expenses. 

       

      
        In
          the
          event any portion of total consideration is paid other than in cash, the
          fair
          market value of the non-cash component shall be determined as (i) in the
          case of
          publicly traded securities, the highest price of such securities attained
          in the
          period commencing two weeks before the closing and ending two weeks after
          the

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      closing,
        or (ii) in the case of consideration other than cash or publicly-traded
        securities, that value ascribed to the consideration in the books of the
        seller.”

       

      2.  Section
        15 is amended to delete its second sentence, and to substitute in its place:
        

      

      “Notwithstanding
        the foregoing, Sections 5(F), 11, 12, 14 and 16 and, if Executive's employment
        terminates in a manner giving rise to a payment under Section 13, Section
        13
        shall survive the termination of this Agreement.”

      

      3.  All
        other terms and
        conditions of the above Agreement remain in full force and effect.

       

      
        
          
            	 	
                    WRC
                      MEDIA INC.

                  	 	
                    RICHARD
                      NOTA

                  
	 	 	 	 
	 	 	 	 
	 	
                    By:

                  	
                    /s/

                  	 	
                    /s/

                  

          

        

         

         

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

     

    

      AMENDMENT
        NO. 1 to
        EMPLOYMENT AGREEMENT dated as of the 1st day of November, 2003, between
WRC
        MEDIA INC.,
        a
        Delaware corporation (the "Company"), and
        RICHARD NOTA,
        an
        individual resident of the State of New York (the "Executive"). 

      

      The
        above
        agreement is amended as follows, effective September 1, 2004:

      

      1.     SECTIONS
        3, 4 and 5 are deleted, and are replaced by the following:

      

      “SECTION
        3. Duties
        and Extent of Service.
        Executive shall serve the Company as Executive Vice-President for Operations
        or
        in such other position as may be determined by the Chief Executive Officer
        of
        the Company and shall perform such services and duties for the Company as
        are
        customarily performed by an executive in Executive's then-current position
        at a
        business such as the Company's business and as the Board of Directors or
        Chief
        Executive Officer may assign or delegate to him from time to time. Executive
        shall devote his full business knowledge, skill, time and effort exclusively
        to
        the performance of his duties for the Company and the promotion of its
        interests. Executive's duties hereunder shall be performed at such place
        or
        places as the interests, needs, businesses or opportunities of the Company
        shall
        require within 50 miles of the Company’s New York City headquarters. Executive
        shall report to the Chief Executive Officer of the Company or to such other
        person as the Board of Directors might designate. No change in title, duties
        or
        reporting responsibility shall be deemed a breach of this Agreement, a
        compulsion of resignation, or a constructive termination of Executive’s
        employment by the Company.

      

      SECTION
        4. Base
        Salary.
        Effective September 1, 2004 Executive shall be paid a base salary (the "Base
        Salary") at a rate of $295,000 per annum (the "Base Salary"), in accordance
        with
        the Company’s payroll practices.

      

      SECTION
        5.
        Bonuses.

      (a)
        Executive shall be eligible to receive an annual bonus ("Bonus"), based on
        the
        achievement of specific objectives to be confirmed by the Board of Directors
        on
        an annual basis. For each year of the Term commencing January 1, 2004, Executive
        will have the opportunity on an annual basis to earn a Bonus of up to $170,000
        upon the attainment of specified Target performance criteria in addition
        to the
        minimum Bonus as described in (b) below. For the achievement of 100%, 105%,
        110%, 115% and 120% of such Target, the achievable total Bonus (including
        the
        minimum Bonus described in Section 5(b) below) shall be, respectively, $170,000,
        $195,000, $220,000, $245,000 or $270,000. The Target performance criteria
        may be
        revised by the mutual written agreement of the Chief Executive Officer and
        Executive.

       

      (b)
        Notwithstanding the foregoing, subject to subparagraphs (c) (d) and (e),
        Executive shall be entitled to a minimum Bonus in each year of the Term
        commencing on and after January 1, 2005 of $150,000. Executive shall be entitled
        to a minimum Bonus for the year commencing January 1, 2004 of
        $116,667.

      
         

        (c) Except
          in the event of Executive’s resignation or termination for Cause
          (as defined below, in which case no Bonus shall be payable), Bonus (including
          minimum Bonus) will be pro-rated for partial year employment, if applicable,
          determined by a factor the numerator of 

      

       

       

      
        
          
          

        

        
           

          
            

          

        

        
          
          

        

      

      

      which
        is
        the number of days in active employment by the Company in that calendar year,
        and the denominator of which is 365

      

      (d)
        In
        the event the fiscal year of the Company is changed to other than a calendar
        year basis, a pro-rated Bonus will be paid for any stub period, and a pro-rated
        Bonus will be paid for any portion of the new fiscal year that falls within
        the
        Term.

      

      (e)
        In
        the event of a sale or disposition of any business unit of the Company
        (including subsidiaries and their subsidiaries, or discrete business operations
        owned by them), any applicable performance Target shall be equitably adjusted
        to
        reflect the impact of the sale or disposition.

      

      (f)
        Payment dates shall be determined by the Board of Directors but in no event
        shall payments be made later than the later to occur of (i) 30 calendar days
        subsequent to the date of issuance of the Company’s audited financials
        statements or (ii) the filing date of Form 10K with the Securities and Exchange
        Commission.”

      

      2. All
        other
        terms and conditions of the Agreement dated as of November 1, 2003 remain
        in
        full force and effect.

      

      Dated
        as
        of September 1, 2004

       

      
        
          	
                  WRC
                    MEDIA INC.

                	 	
                  RICHARD
                    NOTA

                
	 	 	 
	 	 	 
	
                  By:

                	
                  /s/

                	 	
                  /s/

                

        

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

      This
        EMPLOYMENT AGREEMENT (“Agreement") is made and entered into as of the 1st day of
        November, 2003, between WRC
        MEDIA INC.,
        a
        Delaware corporation (the "Company"), and
        RICHARD NOTA,
        an
        individual resident of the State of New York (the "Executive"). 

       

      WHEREAS,
        the Company wishes to continue to employ Executive, and Executive wishes
        to
        accept such continued employment, on the following terms and Conditions,
        effective as of the date set forth above, 

       

      NOW,
        THEREFORE, in consideration of the mutual covenants contained herein and
        intending to be legally bound hereby, the parties hereby agree as follows:
        

       

      SECTION
        1. Employment.
        The
        Company hereby continues the employment of Executive and Executive accepts
        continued employment by the Company, on the terms and Conditions contained
        in
        this Agreement. The Agreement between the parties dated as of January 1,
        2002 is
        hereby amended to the extent specifically described herein. 

       

      SECTION
        2. Term.
        The
        employment of Executive pursuant hereto shall remain in effect until December
        31, 2006, unless terminated by Executive upon 10 days prior written notice
        to
        the Company or by the Company upon 10 days prior written notice to Executive.
        The period of time between November 1, 2003 and the termination of this
        Agreement pursuant to its terms is herein referred to as the "Term".

       

      SECTION
        3. Duties
        and Extent of Service.
        Executive shall serve the Company as Senior Vice President-Finance or in
        such
        other position as may be determined by the Chief Executive Officer of the
        Company and shall perform such services and duties for the Company as are
        customarily performed by an executive in Executive's then-current position
        at a
        business such as the Company's business and as the Board of Directors or
        Chief
        Executive Officer may assign or delegate to him from time to time. Executive
        shall devote his full business knowledge, skill, time and effort exclusively
        to
        the performance of his duties for the Company and the promotion of its
        interests. Executive's duties hereunder shall be performed at such place
        or
        places as the interests, needs, businesses or opportunities of the Company
        shall
        require within 50 miles of the Company’s New York City headquarters. Executive
        shall report to the Chief Executive Officer of the Company or to such other
        person as the Board of Directors might designate. No change in title, duties
        or
        reporting responsibility shall be deemed a breach of this Agreement, a
        compulsion of resignation, or a constructive termination of Executive’s
        employment by the Company. 

       

      SECTION
        4. Base
        Salary.
        Effective January 1, 2004 Executive shall be paid a base salary (the "Base
        Salary") at a rate of $235,000 per annum (the "Base Salary"), in accordance
        with
        the Company’s payroll practices. 

       

       

      
        
          1

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      SECTION
        5.
        Bonuses. 

          (a)
        Executive
        shall be eligible to receive an annual bonus ("Bonus"), based on the achievement
        of specific objectives to be confirmed by the Board of Directors on an annual
        basis. For the Year 2003, Executive’s Bonus shall be as provided in the January
        1, 2002 Agreement. For each year of the Term commencing January 1, 2004,
        Executive will have the opportunity on an annual basis to earn a Bonus of
        up to
        $170,000 upon the attainmentof specified Target performance criteria in addition
        to the minimum Bonus as described in (b) below. For the achievement of 95%,
        100%, 105%, 110%, 115% and 120% of such Target, the achievable total Bonus
        (including the minimum Bonus described in Section 5(b) below) shall be,
        respectively, $145,000, $170,000, $195,000, $220,000, $245,000 or $270,000.
        The
        Target performance criteria may be revised by the mutual written agreement
        of
        the Chief Executive Officer and Executive. 

       

          (b)
        Notwithstanding the foregoing, subject to subparagraphs (c) (d) and (e),
        Executive shall be entitled to a minimum Bonus in each year of the Term
        commencing on and after January 1, 2004 of $100,000. 

       

          (c)
        Except in
        the event of Executive’s resignation or termination for Cause (as defined below,
        in which case no Bonus shall be payable), Bonus (including minimum Bonus)
        will
        be pro-rated for partial year employment, if applicable, determined by a
        factor
        the numerator of which is the number of days in active employment by the
        Company
        in that calendar year, and the denominator of which is 365 

       

          (d)
        In the
        event the fiscal year of the Company is changed to other than a calendar
        year
        basis, a pro-rated Bonus will be paid for any stub period, and a pro-rated
        Bonus
        will be paid for any portion of the new fiscal year that falls within the
        Term.

       

          (e)
        In the
        event of a sale or disposition of any business unit of the Company (including
        subsidiaries and their subsidiaries, or discrete business operations owned
        by
        them), any applicable performance Target shall be equitably adjusted to reflect
        the impact of the sale or disposition. 

       

          (f)
        Payment
        dates shall be determined by the Board of Directors but in no event shall
        payments be made later than the later to occur of (i) 30 calendar days
        subsequent to the date of issuance of the Company’s audited financials
        statements or (ii) the filing date of Form 10K with the Securities and Exchange
        Commission. 

      

      SECTION
        6. Fringe
        Benefits.
        Executive shall be entitled to participate, to the extent eligible, in such
        medical, dental, disability, life insurance, deferred compensation and other
        benefit plans (such as pension and profit sharing plans) as the Company may
        maintain for the benefit of employees generally, on the terms and subject
        to the
        Conditions set forth in such plans. 

       

      SECTION
        7. Expenses.
        The
        Company shall reimburse Executive promptly for all reasonable expenses incurred
        by Executive in accordance with the Company's budget and policy in connection
        with his duties and responsibilities hereunder. The Company will provide
        to

       

       

      
        
          2

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Executive
        a car allowance of $1,000.00 per month. 

       

      SECTION
        8. [Intentionally left blank] 

       

      SECTION
        9. Stock
        Options.
        Executive shall be eligible to participate in stock option plans that may
        come
        into existence during the Term to an extent comparable with that of other
        similarly-situated executives of the Company, subject in all cases to the
        decisions of the Board of Directors. 

       

      SECTION
        10. [Intentionally left blank] 

       

      SECTION
        11.
        Noncompete and Nonsolicitation 

       

          During
        the
        Term and for one year thereafter, Executive shall not directly or indirectly
        (other than as an employee of or consultant to the Company): 

       

          (a)
        engage in
        activities or businesses within the United States which are substantially
        in
        competition with the Company (“Competitive Activities"), including (i) selling
        goods or services of the type sold by the Company or any of its subsidiaries;
        (ii) soliciting or attempting to solicit any customer or client or prospective
        customer or client of the Company ( or any of its subsidiaries) including,
        without limitation, actively sought prospective customers or clients, to
        purchase any goods or services of the type sold by the Company or any of
        its
        subsidiaries from anyone other than the Company or any of its subsidiaries;
        and
        (iii) assisting any person in any way to do, or attempt to do, anything
        prohibited by (i) or (ii) above; 

       

           
        (b )
        perform any action, activity or course of conduct which is substantially
        detrimental to the business or business reputation of the Company or any
        of its
        subsidiaries ("Detrimental Activities"), including (i) soliciting, recruiting
        or
        hiring any employees of the Company or persons who have worked for Ripplewood
        Holdings LLC ("Ripplewood"), the Company or any of their respective affiliates;
        (ii) soliciting or encouraging any employee of Ripplewood, the Company or
        any of
        their respective affiliates to leave the employment of Ripplewood, the Company
        or any of their respective affiliates; (iii) intentionally interfering with
        the
        relationship of Ripplewood, the Company or any of their affiliates with any
        person or entity who or which is employed by or otherwise engaged to perform
        services for Ripplewood, the Company or any such affiliate; and (iv) disclosing
        or furnishing to anyone any confidential information relating to Ripplewood,
        the
        Company or any of their respective affiliates or otherwise using such
        confidential information for its own benefit or the benefit of any other
        person;
        or 

       

          (c)
        establish
        in the United States any new business which engages in Competitive Activities.
        

       

          Notwithstanding
        anything to the contrary contained in this Agreement, the foregoing covenant
        shall not be deemed breached as a result of the ownership by Executive
        of: (i) less than an aggregate of 5% of any class of stock of a person
        engaged, directly or indirectly, in Competitive Activities; provided,
however, that such stock is listed on a national securities

       

       

      
        
          3

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      exchange
        or is quoted on the National Market System of NASDAQ; (ii) less than an
        aggregate of 10% in value of any instrument of indebtedness of a person engaged,
        directly or indirectly, in Competitive Activities; or ( iii) stock or other
        debt
        or equity interests in the Company, or the participation by Executive in
        the
        activities and business conducted by the Company or any of its subsidiaries.
        

       

      If
        a
        judicial determination is made that any of the provisions of this Section
        11(c)
        constitutes an unreasonable or otherwise unenforceable restriction against
        Executive, the provisions of this Section 11 shall be rendered void only
        to the
        extent that such judicial determination finds such provisions to be unreasonable
        or otherwise unenforceable. Each party shall have all other rights at law
        and in
        equity to which it might be entitled. Executive agrees that the provisions
        of
        this Section 11 are reasonable and properly required for the adequate protection
        of the business and goodwill of the Company. 

       

      SECTION
        12. Nondisclosure.
        The
        parties hereto agree that during the course of his employment by the Company,
        Executive will have access to, and will gain knowledge with respect to, the
        Company's Confidential Information (as defined below). The parties acknowledge
        that unauthorized disclosure or misuse of such Confidential Information would
        cause irreparable damage to the Company and its subsidiaries. Accordingly
        Executive agrees to the nondisclosure covenants in this Section 12. Executive
        agrees that he shall not (except as may be required by law), without the
        prior
        written consent of the Company during his employment with the Company under
        this
        Agreement, and any extension or renewal hereof, and thereafter for so long
        as it
        remains Confidential Information, use or disclose, or knowingly permit any
        unauthorized person to use, disclose or gain access to, any Confidential
        Information; provided, however, that Executive may disclose
        Confidential Information to a person to whom disclosure is reasonably necessary
        or appropriate in connection with the performance by Executive of his duties
        under this Agreement. 

       

      Upon
        termination of this Agreement for any reason, Executive shall return to the
        Company the original and all copies of all documents and correspondence in
        his
        possession relating to the business of the Company or any of its affiliates,
        including but not limited to all Confidential Information, and shall not
        be
        entitled to any lien or right of retention in respect thereof. 

       

      For
        purposes of this Agreement, "Confidential Information" shall mean all business
        information (whether or not in written form) which relates to the Company,
        any
        of its affiliates or their respective businesses or products and which is
        not
        known to the public generally, including but not limited to technical
        information or reports; trade secrets; unwritten knowledge and "know-how";
        operating instructions; training manuals; customer lists; customer buying
        records and habits; product sales records and documents, and product
        development, marketing and sales strategies; market surveys; marketing plans;
        profitability analyses; product cost; long-range plans; information relating
        to
        pricing, competitive strategies and new product development; to the extent
        permitted by law, information relating to any forms of compensation or other
        personnel-related information; contracts; and supplier lists. Confidential
        Information shall not include such information known to Executive prior to
        his
        involvement with the Company.

       

       

      
        
          4

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Executive
        represents that his experience and capabilities are such that the provisions
        of
        Section 11 and this Section 12 will not prevent him from earning his livelihood.
        

       

      

      SECTION
        13. Severance.
        

       

      (a)
        If
        Executive's employment hereunder is terminated 

       

      (i)
        upon
        a breach by the Company of this Agreement; 

       

      (ii)
        by
        the Company by reason of nonrenewal or for any reason other than for "Good
        Cause" (as defined below) or 

       

      (iii)
        by
        the Company as a result of the occurrence of the death or total disability
        of
        Executive (total disability meaning the failure of Executive to perform his
        normal required services hereunder for a period of three consecutive months
        during the term hereof by reason of Executive's mental or physical disability,
        as determined by an independent physician reasonably satisfactory to Executive
        and the Company) 

       

      then

       

      (1)
        upon
        the execution and delivery by Executive of a Release of all claims of whatever
        nature against the Company that he might have, and 

       

      (2)
        conditioned upon Executive’s continuing conformity with the Noncompete,
        Nonsolicitation and Nondisclosure provisions of Sections 11 and 12 above,
        

      

      Company
        shall pay to Executive Severance Pay in the amount of his Base Salary (plus,
        for
        the first 15 months of the Severance Period, an amount equivalent to the
        minimum
        Bonus described in Section 5(b), prorated for any partial years) for the
        longer
        of (i) the period ending December 31, 2006 or (ii) the period of 15 months
        from
        the date Executive’s employment terminates (“Severance Period”). Executive shall
        receive each component of the Severance Pay specified in the preceding sentence
        in the form of salary continuation payments for the Severance Period, and
        it
        shall be paid as if pursuant to the standard payroll practices of the Company.
        

       

          (b)
        For
        purposes of this Agreement, termination for "Good Cause" shall exist upon
        the
        occurrence of any of the following: (i) Executive is convicted of, pleads
        guilty
        to, confesses to, or enters a plea of nolo
        contendere
        to, any
        felony or any crime that involves moral turpitude or any act of fraud,
        misappropriation or embezzlement; (ii) Executive has willfully engaged in
        a
        fraudulent act to the damage or prejudice of the Company or any affiliate
        of the
        Company; (iii) any act or omission by Executive involving insubordination,
        discrimination prohibited by law, malfeasance or gross negligence in the
        performance of Executive's duties to the Company, or acts which would tend
        to
        bring the Company into public disrepute; or (iv) Executive otherwise willfully
        fails to comply in any material respect with the terms of this Agreement
        or
        deviates in any material respect from any reasonable written policies or
        reasonable directives of the Chief 

       

       

       

      
        
          5

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Executive
        Officer or Board of Directors and, within 5 days after written notice from
        the
        Company of such failure or deviation, Executive has not corrected such failure.
        

       

      

      SECTION
        14. Options
        to Purchase and Sell Common Stock. 

          (a)
        If
        Executive's employment is terminated for any reason, the Company shall have
        an
        option to purchase all or any portion of Executive's shares of Common Stock
        (including any shares obtained or obtainable through the exercise of any
        option,
        but excluding any purchased pursuant to or after any public offering) at
        a
        purchase price equal to the Fair Market Value (as defined below except in
        the
        event that if the Fair Market Value is determined to be less than the price
        the
        Executive purchased the Common stock; the Company will guarantee the aggregate
        strike price to be equal to the aggregate price the Executive paid), determined
        in accordance with Section 14(b) as of the date of such termination. The
        Company
        shall within 90 days of such date of termination give notice in writing to
        Executive of its election to exercise or not to exercise such option, which
        notice shall set forth the portion, if any, of Executive's shares of Common
        Stock that the Company elects to purchase. The purchase of Executive's shares
        of
        Common Stock shall take place at the principal office of the Company on the
        date
        specified by the Company (not later than the later of the twentieth business
        day
        following the receipt by Executive of the required notice from the Company
        and
        the satisfaction of any legal requirements to the purchase of Executive's
        shares
        of Common Stock). The consideration for the purchase of Executive's shares
        of
        Common Stock shall be paid by delivery to Executive of a certified or bank
        check
        made payable to Executive or by wire transfer of immediately available funds
        to
        a bank account designated by Executive, against delivery of certificates
        or
        other instruments representing Executive's shares of Common Stock so purchased,
        appropriately endorsed by Executive, free and clear of all security interests,
        liens, claims, encumbrances, charges, options, restrictions on transfer,
        proxies
        and voting and other agreements of whatever nature. The Company may assign
        its
        rights under this Section 14 to any person.

       

          (b)(i)
        If a
        determination of the Fair Market Value of any shares of Common Stock is required
        by this Agreement when there is no public trading market for shares of Common
        Stock, such "Fair Market Value" shall be such amount as is determined in
        good
        faith by the Company's Board of Directors as of the date such Fair Market
        Value
        is required to be determined hereunder. In making a determination of such
        Fair
        Market Value, the Company's Board of Directors shall give due consideration
        to
        such factors as it deems appropriate, including, without limitation, the
        earnings and certain other financial and operating information of the Company
        and its subsidiaries in recent periods, its potential value and that of its
        subsidiaries as a whole, its future prospects and that of its subsidiaries
        and
        the industries in which they compete, its history and management and that
        of its
        subsidiaries, the general condition of the securities markets and the fair
        market value of securities of privately owned companies (with transfer
        restrictions) engaged in businesses similar to those of the Company's, if
        any.
        The Fair Market Value as determined in good faith by the Company's Board
        of
        Directors shall be binding and conclusive upon Executive. 

       

              (ii)
        If a
        determination of the Fair Market Value of any shares of Common Stock is required
        by this Agreement when there is a public trading market for shares of Common
        Stock, such "Fair Market Value" shall mean the average daily closing sales
        price
        of shares of Common Stock for the ten consecutive trading days preceding
        the
        date the Fair Market Value is required to be determined hereunder. The closing
        price for each day shall be the last reported 

       

       

      
        
          6

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      sales
        price regular way or, in case no such reported sale takes place on such day,
        the
        average of the reported closing bid and asked prices regular way, in either
        case
        on the principal national securities exchange on which shares of Common Stock
        are listed and admitted to trading, or, if not listed and admitted to trading
        on
        any such exchange, on the NASDAQ National Market System, or, if not quoted
        on
        the National Market System, the average of the closing bid and asked prices
        in
        the over-the-counter market as furnished by any New York Stock Exchange member
        firm selected from time to time by the Company's Board of Directors for that
        purpose. 

       

      SECTION
        15. Termination;
        Survival.
        Sections 11, 12, 14 and 16 and, if Executive's employment terminates in a
        manner
        giving rise to a payment under Section 13, Section 13 shall survive the
        termination of this Agreement. 

       

      SECTION
        16. Miscellaneous.
        

          (a)
        This
        Agreement shall inure to the benefit of and shall be binding upon Executive
        and
        his executor, administrator, heirs, personal representative and permitted
        assigns, and the Company and its successors and permitted assigns; provided,
        however, that Executive shall not be entitled to assign or delegate any of
        his
        rights or obligations hereunder without the prior written consent of the
        Company. 

       

         (b)
        This
        Agreement shall be deemed to be made in, and in all respects shall be
        interpreted, construed and governed by and in accordance with, the laws of
        the
        State of New York, without regard to the conflicts of law principles of such
        State. No provision of this Agreement or any related document shall be construed
        against or interpreted to the disadvantage of any party hereto by any court
        or
        other governmental or judicial authority by reason of such party having or
        being
        deemed to have structured or drafted such provision.

      

            (c)
          This
          Agreement constitutes the entire agreement between the Company and Executive
          with respect to Executive's employment by the Company, and supersedes all
          prior
          agreements, if any, whether written or oral, between them, relating to
          Executive's employment by the Company or any of its subsidiaries. All prior
          agreements between the Company or any of its subsidiaries and Executive
          with
          respect to Executive's employment by the Company or any of its subsidiaries
          shall terminate and be without further force or effect as of the execution
          of
          this Agreement. Executive hereby releases the Company its subsidiaries
          and its
          affiliates from any claims or rights under such agreements, without any
          liability or other adverse consequence to the Company, its affiliates or
          its
          subsidiaries. 

         

            (d)
          All
          notices or other communications required or permitted by this Agreement
          shall be
          made in writing and any such notice or communication shall be deemed delivered
          when delivered in person, transmitted by telecopier, or one business day
          after
          it has been sent by a nationally recognized overnight courier, at the address
          for notices as follows: 
 

      (i)
        if to
        the Company, 

       

      WRC
        Media
        Inc.

                      512
        Seventh
        Avenue

      New
        York,
        NY 10018 

       

       

      
        
          7

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Attention:
        Chief Executive Officer 

      Fax
        212-768-2206 

       

      with
        a
        copy to: 

      Ripplewood
        Holdings, 

      LLC
        One
        Rockefeller Plaza 

      New
        York,
        NY 10020 

      Attention:
        Charles Laurey 

      Fax
        212-218-1778 

       

      (ii)
         if
        to
        Executive, 

       

      Richard
        Nota 

      1A
        Woodhollow Lane 

      Huntington,
        NY 11743-3836 

      Fax:
        516-424-5010 

       

      Communications
        by telecopier also shall be sent concurrently by overnight courier, but shall
        in
        any event be effective the first business hour after confirmation of receipt
        by
        electronic transmission. Each party may from time to time change its address
        for
        notices under this Section 16(d) by giving at least five days' notice of
        such
        changed address to the other parties hereto. 

       

          (e)
        This
        Agreement maybe executed in one or more counterparts, all of which shall
        be
        considered one and the same agreement, and shall become effective when one
        or
        more of the counterparts have been signed by each of the parties and delivered
        to the other parties, it being understood that all parties need not sign
        the
        same counterpart.

       

          (f)
        The
        headings contained in this Agreement are for reference purposes only and
        shall
        not affect in any way the meaning or interpretation of this Agreement.

        

          (g)
        No
        failure or delay by Executive or the Company in exercising any right or power
        hereunder shall operate as a waiver thereof, nor shall any single or partial
        exercise of any such right or power, or any abandonment of any steps to enforce
        such a right or power, preclude any other or further exercise thereof or
        the
        exercise of any other right or power. Neither this Agreement nor any provision
        hereof may be waived, amended or modified except pursuant to an agreement
        in
        writing entered into by Executive and the Company. 

        

          (h)
        Any
        controversy, dispute or claim arising out of, in connection with, or in relation
        to the interpretation, performance, non-performance, validity or breach of
        this
        Agreement or otherwise arising out of, or in any way related to, this Agreement
        shall be determined, at the request of any party, by arbitration conducted
        in
        New York City, before and in accordance with the then-existing Rules for
        Commercial Arbitration of the American Arbitration Association, before a
        single
        arbitrator subject to the Federal Rules of Evidence, and any judgment or
        award
        rendered by the arbitrator shall be final, binding and unappealable, and
        any
        judgment may be entered by any state or Federal court having jurisdiction
        thereof. In its award the arbitrator shall allocate, in its discretion, among
        the parties to the arbitration all costs of the arbitration, including the
        fees
        and expenses of the arbitrator, but each party shall bear its own attorneys'
        fees, 

       

       

      
        
          8

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      costs
        and
        expert witness expenses.

        

          (i)
        All
        amounts paid hereunder will be net of any applicable withholdings required
        by
        existing or future tax laws.

      

       

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

       

       

      
 

      
        
          	
                  WRC
                    MEDIA INC.

                	 	
                  RICHARD
                    NOTA

                
	 	 	 
	 	 	 
	
                  By:

                	
                  /s/

                	 	
                  /s/

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]