Document:

EXHIBIT 10.52

 

CONFIDENTIAL TREATMENT
REQUESTED 

 

The portions of this document
marked "XXXX" have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential
treatment.

 

November 6, 2004

 

Mr. Herbert Moloney

Vertis, Inc.

250 West Pratt Street, 180’
Floor Baltimore, Maryland 21201

 

Dear Herb:

 

As you
know, the next few months are expected to be a very challenging time for the Company, and
the Board will be relying heavily upon you to help ensure that the Company
continues to move forward during this time. It is the
goal of each of us that our customers, employees, business partners and other
Company constituencies continue to regard Vertis as the premier provider of
targeted advertising, media, and marketing services.

 

In
recognition of your efforts and responsibilities under your November 6, 2004
Amendment to your Employment Agreement, the Board has determined that you will
be eligible for a special bonus of up to $200,000. The actual amount of the bonus
will be determined by the Board based upon your efforts and performance during
the next few months in meeting the criteria set forth below, and any special
bonus will be determined and paid (less required withholding)
within a reasonable time during 2005
as the Board determines. The Board will use the following in determining the
amount of the bonus:  (1) whether you
have obtained signed agreements or amendments on existing customer agreements
or amendments awaiting signature and provided assistance on customer accounts
that are in the initial stages of renewal as more specifically described on the
following list of customer accounts:

 

Waiting
for signed agreement or amendment:

 

•                  XXXX

•                  XXXX

•                  XXXX

•                  XXXX

•                  XXXX

•                  XXXX

•                  XXXX

•                  XXXX

 

Provide
Assistance for Initial Stages of Renewal:

•                  XXXX

•                  XXXX;

 

(2) whether you have submitted a written plan within
ten (10) days of your signing of this letter that details the transition for
Joe Scott and sufficiently followed up on that plan with Don Roland or his
designee on at least a weekly basis regarding progress on the transition plan;
(3) whether you have fully cooperated in assisting with the new senior
management team  transition by setting up
meetings to include members of the team, you and key customers and separately
key internal personnel for the purpose of introducing the team to pertinent
customer contacts.  Any special bonus
paid to you

 

 

will not be considered as salary or bonus for purposes
of the Company’s other benefit and compensation plans or for purposes of your
employment agreement with the Company (which, of course, will remain in place
and is not affected by this special bonus arrangement). In particular, such
bonus shall not count in any change in control or other severance calculations.
This special bonus opportunity is also distinct from your annual bonus
opportunity under the Executive Incentive Plan, which is also unaffected by
this special bonus opportunity.

 

Herb,
the Board has every confidence in your ability to help the Company through the
challenging times ahead. We look forward to working with you in meeting and conquering
these challenges. Please indicate your understanding and acceptance of these
terms by executing the letter in the space indicated below and returning the
executed letter to John V. Howard, Jr. by 6:00 p.m. on November 6th. As always,
if you have any questions, please do not hesitate to contact me at
410.361.8350.

 

 

Sincerely,

 

 

	
  /S/
  Donald E. Roland

  	
   

  
	
  Donald
  E. Roland

  
	
  Chairman

  

 

 

I have read and
understood the letter and agree to its terms.

 

 

	
  /S/
  Herbert Moloney

  	
   

  
	
  Herbert
  Moloney

  
	
  Date:EXHIBIT 10.53

 

November 6, 2004

 

Mr. Herbert Moloney

Vertis, Inc.

250 W. Pratt St.

Baltimore, MD 21201

 

Re: 
Transition Arrangements

 

Dear Herb:

 

In keeping with the conversations that you
have had with the Board and its various members regarding the Board’s long term
planning for Vertis and how that impacts you, this letter is intended to
memorialize an arrangement wherein we mutually agree to allow you to pursue
other opportunities while continuing to provide valuable service to Vertis,
Inc. (“Vertis”) for a period of time and Vertis agrees to treat your leaving as
a termination without cause at the end of that period. Additionally, Vertis
will agree to accelerate your outplacement benefits as set forth below.

 

This arrangement is designed to provide Vertis
with predictability and assistance in the transition to a new management
organization and in particular assurance that you will provide to Mr. Joe
Scott, Vertis’ new Senior VP Sales of North American, as much insight as
possible into Vertis’ sales organization and its relationships with customers
and the industry. Vertis will expect you to attend internal and external
meetings, consult with the Board, management, and the field organization as the
Board and Vertis senior management directs. The Board has every confidence that
you will honor its expectation of continued high performance just as you have
performed in your many years of service to Vertis.

 

In exchange, the arrangement will provide to
you a dignified transition to your next professional position, adequate notice
of your end date with Vertis and compensation for a period of two years as set
forth in your Employment Agreement of August 31, 2003 “Employment Agreement” in
circumstances equivalent to a termination without cause.

 

From the date of your counter-signature of
this letter, you will provide services to Vertis as requested by the Board or
its senior management. Vertis anticipates that within the reorganization
currently underway and prior to the Date of Termination as hereinafter defined
that your reporting relationships and job responsibilities will evolve and
change. Vertis will continue to pay your regular salary and benefits as set
forth in your employment agreement until your Date of Termination as
hereinafter defined. In addition to the definitions of the Date of Termination
in paragraph 4(d) of your Employment Agreement, the Date of Termination shall
otherwise be March 31, 2005. Assuming no other definition for the Date of
Termination shall apply, your employment with Vertis will cease and Vertis will
pay you severance and benefits as set forth in your Employment Agreement,
except as modified below. Your equity holdings will continue to be governed by
the terms of the applicable existing documents and Vertis will honor their
terms as they apply to a termination without cause. As we have discussed your
Restricted Shares in Vertis Holdings, Inc. will be forfeited upon the Date of
Termination absent a Liquidity Event, your death or the date upon which you
suffer a Disability.

 

 

As this letter constitutes a modification of
your employment arrangements and given your executive status in Vertis, United
States law requires disclosure of these arrangements via a Form 8-K filing with
the United States Securities and Exchange Commission. Additionally, Vertis
desires to notify its customers, employees, investors and vendors of your
transition in a transparent way that is respectful and thankful of your prior
service via a press release. Vertis will seek your reasonable input on the
announcement, which needs to occur within four (4) business days of your
countersignature of this letter.

 

Upon your execution of this agreement, Vertis
will make available to you your outplacement benefits, which shall be delivered
as otherwise in accordance with the terms and conditions of your Employment
Agreement. Vertis agrees to accommodate your reasonable requests for time
during working hours to conduct outplacement activities, networking and
interviews as long as they do not unreasonably interfere with your services to
Vertis through the Date of Termination. Additionally, Vertis will continue to
make available to you in accordance with past practices the corporate apartment
in Baltimore through the end of the existing lease date of March 31, 2005.

 

In the event you choose to leave your
employment with Vertis prior to the Date of Termination, your leaving will be
considered a Termination by the Executive without Good Reason. You agree as
part of this letter that you shall no longer have a right to Termination with Good
Reason under Section 4(c)(i)(a) due to Vertis reducing your authority, duties,
responsibilities or changes in your reporting lines. Vertis agrees it will not
alter your title as Chief Operating Officer North America.

 

Please countersign the letter in the space
provided below and return it to John Howard, Vertis’ General Counsel and
Secretary no later than Saturday, November 6, 2005 at 6 pm.

 

 

Sincerely yours,

 

 

	
  /S/ Donald E. Roland

  	
   

  
	
  Don Roland

  

 

 

I have read and understood this letter and
agree to its terms.

 

 

	
  /S/ Herbert Moloney

  	
   

  
	
   

  
	
   

  
	
  Herbert Moloney

  
	
  Date:EXHIBIT 10.54

 

November 12, 2004

 

Mr. Dean D. Durbin

Vertis, Inc.

250 West Pratt Street, 180’
Floor Baltimore, Maryland 21201

 

Dear Dean:

 

As you
know, the next few months are expected to be a very challenging time for the Company, and
the Board will be relying heavily upon you to help ensure that the Company
continues to move forward during this time. It is the
goal of each of us that our customers, employees, business partners and other
Company constituencies continue to regard Vertis as the premier provider of
targeted advertising, media, and marketing services.

 

In
recognition of the increased efforts and responsibilities that you have
accepted at the Board’s request, the Board has unanimously elected you as
President of Vertis, Inc. and Vertis Holdings, Inc. and amended your employment
agreement to reflect that election pursuant to the terms of this letter. The
Board has also determined that you will be eligible for a special bonus of up
to $200,000. The actual amount of the bonus will be determined by the Board in
its sole discretion based upon its assessment of your efforts and performance
during the next few months, and any special bonus will be determined
and paid (less required withholding) within a reasonable time during 2005 as the Board determines. Any special bonus
paid to you will not be considered as salary or bonus for purposes of the
Company’s other benefit and compensation plans or for purposes of your
employment agreement with the Company (which, of course, will remain in place
and is not affected by this special bonus arrangement). In particular, such
bonus shall not count in any change in control or other severance calculations.
This special bonus opportunity is also distinct from your annual bonus
opportunity under the Executive Incentive Plan, which is also unaffected by
this special bonus opportunity.

 

Dean,
the Board has every confidence in your ability to help the Company through the
challenging times ahead. We look forward to working with you in meeting and conquering
these challenges. Please indicate your understanding and acceptance of these
terms by executing the letter in the space indicated below and returning the
executed letter to John V. Howard, Jr. by 6:00 p.m. on November 16th. As
always, if you have any questions, please do not hesitate to contact me at
410.361.8350.

Sincerely,

 

 

	
  /S/
  Donald E. Roland

  	
   

  
	
  Donald
  E. Roland

  
	
  Chairman

  

 

 

I have read and
understood the letter and agree to its terms.

 

 

	
  /S/
  Dean D. Durbin

  	
   

  
	
  Dean
  D. Durbin

  
	
  Date:

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