Document:

EX-10.1

 

ZIFF DAVIS MEDIA INC.

28 East 28th Street

New York, New York 10016

February 24, 2006

Mr. Bart W. Catalane

33 Benson’s Point Court

Stony Point, New York 10980

Dear Bart:

     This letter (the “Agreement”) sets forth the agreement between you and Ziff Davis Media Inc.
(collectively with its direct and indirect parents and subsidiaries, the “Company”) that:

	1.	 	(a) Effective January 31, 2006, you ceased to hold the titles of President and Chief
Operating Officer of the Company, and your employment with the Company shall end at the close
of business on February 28, 2006 (the “Separation Date”) and the Employment Period shall
terminate on such date. You shall receive your Base Salary earned through the Separation
Date, prorated on a daily basis together will all accrued but unpaid vacation time.
Capitalized terms used in this Agreement and not defined herein shall have the respective
meanings ascribed to such terms in the Amended and Restated Executive Agreement dated as of
March 23, 2005 between you the Company (the “Executive Agreement”).

(b) On or before January 30, 2006, you prepared and delivered to the Company’s Chief
Executive Officer (“CEO”) a turnover report addressing the topics that you and CEO agreed
should be addressed. The information in such report was complete and accurate to the best
of your knowledge.

	2.	 	Provided that you do not breach any of your obligations under any of Sections 8, 9 and 10 of
the Executive Agreement (except any breach which you carry the burden of proving is solely of
a technical nature, is immaterial and was inadvertent), the Company shall make the following
payments to you in lieu of any payments that the Company otherwise would be obligated to make
pursuant to Section 7(d) of the Executive Agreement: for a period of seventeen (17) months
from the Separation Date, the Company shall (a) pay you the sum of thirty-three thousand three
hundred thirty-three dollars and thirty-three cents ($33,333.33) per month, (b) pay the
premium for any health, dental, vision and EAP insurance benefits that you may elect to
continue on the Company’s group plans pursuant to COBRA (nothing herein shall, however, limit
the Company’s right to amend, modify or terminate any such plan in accordance with its terms
and applicable law) and (c) if you elect to convert your current group life insurance policy
to an individual life insurance policy offered by that insurer having similar coverage, pay
the premium for such individual life insurance policy; provided, however, that the Company
shall not pay premiums for any particular benefits pursuant to clause (b) of this sentence
from and after the date

 

 

CONFIDENTIAL

Mr. Bart W. Catalane

February 24, 2006

Page 2

that you may become eligible to obtain similar benefits from another employer; and provided
further that the Company shall not pay premiums for life insurance pursuant to clause (c) of
this sentence from and after the date that you may become eligible to obtain group life
insurance from another employer. You agree that the Bonus in respect of calendar year 2005
shall be zero (0) and that therefore the Termination Bonus Amount likewise shall be zero
(0). Payments made to you pursuant to Paragraphs 1 and 2 of this Agreement shall be made in
accordance with the Company’s general payroll practices and cycles and shall be subject to
withholding of applicable taxes and governmental charges in accordance with federal and
state law. Such payments shall not be subject to reduction for any income earned by you
from other sources after the Separation Date (and, consequently, you have no duty to
mitigate the Company’s payment obligations pursuant to this Agreement). The Company shall
allow you to make 401(k) contributions (provided that the Company may at its election make,
but shall not be required by this Agreement to make, matching contributions with respect
thereto) from the payments made to you pursuant to this Paragraph 2, to the maximum extent
permitted by law (without limiting the foregoing, the parties currently believe that 401(k)
contributions may be made for a period of two and one half (2-1/2) months after your
Separation Date from payments to you that either (i) do not exceed the amount you would have
received as regular compensation if you had continued your employment or (ii) reflect sums
for unused accrued vacation).

	3.	 	All benefits coverage will end on your Separation Date. Under COBRA, you have the option to
extend your health, dental, vision care and EAP coverage for up to eighteen (18) months by
paying the full cost of coverage (your normal cost plus the Company’s portion) plus a two
percent (2%) administrative charge. This amount may be payable by the Company for a period of
time pursuant to Paragraph 2 of this Agreement. Details of your COBRA rights and enrollment
will be mailed to you at home by Ceridian/CobraServ, approximately two (2) weeks after your
coverage ends. When you receive this notification, please follow the instructions to make
your election; you will have sixty (60) days from the date of the notification letter in which
to submit your election form. If you make your election within these timeframes, your
coverage will be reinstated retroactive to your Separation Date so there is no gap in
coverage. You also may elect to convert your life insurance to an individual policy by
contacting the Benefits Department within thirty-one (31) days of your Separation Date. If
you have a Flexible Spending Account, you have ninety (90) days from your Separation Date to
claim expenses incurred up to your Separation Date.

	4.	 	You will also receive a packet of information directly from Fidelity Investments, our 401(k)
recordkeeper, approximately 2-4 weeks after your Separation Date. This packet contains
important tax information, provides a comprehensive overview of

 

 

CONFIDENTIAL

Mr. Bart W. Catalane

February 24, 2006

Page 3

options for your Ziff Davis Media 401(k) Plan account, and lists resources to help you
continue your long-term retirement planning.

	5.	 	The Company will provide you with outplacement services for a period of six (6) months from
the date you commence using such services (provided you commence using such services within
six (6) months of your Separation Date), at a total cost not to exceed $15,000; such services
to include, if you wish, counseling services and use of an office with administrative support.
Please contact Beth Repeta if you would like to utilize these services.

	6.	 	You shall return all Company equipment or other Company property, including without
limitation all copies of all documents, in any media (including without limitation in printed
form or stored magnetically or electronically) that contain Confidential Information of the
Company or Company Work Product. Nothing in this Agreement modifies any of your obligations
with respect to Confidential Information of the Company or Company Work Product as set forth
in the Executive Agreement, any other agreement signed by you and the Company and/or
applicable law. In the event that you and the Company agree that you may purchase from the
Company your laptop computer and retain a copy of the information thereon until further notice
from the Company (including without limitation to assist you in rendering services to the
Company during such time as you remain a director of the Company), you agree that you shall
abide your obligations referenced above with respect to all Confidential Information of the
Company and Company Work Product on such computer; and that you shall return to the Company
and/or destroy all such Confidential Information of the Company and Company Work Product on
such computer upon written request by the Company.

	7.	 	You shall promptly submit to the Company a reimbursement request, with supporting
documentation as required by the Company, for any outstanding reasonable business expenses
incurred by you in the course of performing your duties under the Executive Agreement and
which are consistent with the Company’s policy in effect for senior executive employees with
respect to travel, entertainment and other business expenses. You shall promptly pay any
expenses that you incurred with respect to which the Company could be liable (e.g., expenses
incurred on the Company’s corporate credit card); if those expenses are reimbursable under the
Company’s regular policy, you shall submit those expenses with appropriate supporting
documentation to the Company and the Company shall reimburse you therefor. The Company shall
make payment of any reimbursement pursuant to this Paragraph 7 within thirty (30) days of its
receipt of a reimbursement request therefore with appropriate supporting documentation.

 

 

CONFIDENTIAL

Mr. Bart W. Catalane

February 24, 2006

Page 4

	8.	 	The Company shall for a period of not less than sixty (60) days (a) have the phone number
212-503-3552 be directed towards your voicemail which shall contain a message acceptable to
you and the Company indicating that you are no longer an employee of the Company and
indicating contact information at which you may be contacted and (b) have the Company’s email
system send an automatic reply to any email addressed to your Company email addresses, which
reply shall contain a message acceptable to you and the Company indicating that you are no
longer an employee of the Company and indicating contact information at which you may be
contacted .

	9.	 	In consideration of the Company’s obligations to you set forth in this Agreement, you hereby
agree that except as set forth above, there are no amounts due to you from the Company and
you, on behalf of yourself, your marital community and your heirs, executors, administrators,
attorneys and assigns (collectively, “Releasor”) hereby waive, release and forever discharge
the Company, its direct and indirect parents, subsidiaries and affiliates, the respective
current and former directors, officers, employees, representatives, agents and attorneys of
each of the foregoing, and the successors and assigns of each of the foregoing, and anyone
acting in concert with any of the foregoing, of and from any and all claims, demands, damages,
debts, liabilities, accounts, reckonings, obligations, costs, expenses (including without
limitation attorneys fees), liens, actions and causes of action (collectively, “Claims”) of
every kind and nature whatsoever, including without limitation any and all Claims arising out
of or related to your employment or your separation from employment with the Company,
including without limitation Claims for additional salary, bonus, incentive, commission,
expenses, vacations, or Claims arising under Title VII of the Civil Rights Act of 1964, Title
IX of the Education Amendments of 1972, the Age Discrimination in Employment Act, the Family
and Medical Leave Act, as amended, the Employee Retirement Income Security Act, as amended,
the Americans with Disabilities Act, as amended, or any other federal, state or municipal
employment discrimination statutes or other federal, state or local statutes, laws, ordinances
or regulations, or Claims based upon breach of contract, wrongful termination, defamation,
intentional infliction of emotional distress, negligence, and/or any other common law,
statutory or other claim arising out of or relating to your employment with and/or separation
from employment with the Company. You represent and warrant that you are the sole and lawful
owner of all rights, titles and interest in and to every Claim and other matters that Releasor
is releasing hereby and that no other party has received any assignment or other right of
substitution or subrogation to any such claim or matter. You also represent that you have the
full power and authority to execute this Agreement on behalf of Releasor. With respect to the
foregoing release, each Releasor hereby waives all rights or protection under section 1542 of
the Civil Code of California or any similar law of any other state, territory, country or any
political division thereof, to

 

 

CONFIDENTIAL

Mr. Bart W. Catalane

February 24, 2006

Page 5

the extent applicable (such waiver is not intended to indicate that the law of any
jurisdiction other than New York is applicable to this Agreement). Section 1542 provides:

A general release does not extend to claims which the creditor does not
know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his
settlement with the debtor.

Notwithstanding the foregoing, nothing in this Agreement releases or waives any rights you
may have (a) to indemnification, contribution or reimbursement from any party (including
without limitation the Company (including without limitation its direct and indirect parents
and subsidiaries), WS Fund III and/or any of their respective current or former insurers
applicable to you in your capacity as an officer, director, manager, stockholder or employee
of the Company (and/or such direct or indirect parents or subsidiaries), whether such right
arises pursuant to a corporate organizational document, or law, or contract or otherwise; or
(b) with respect to the options as set forth in the Existing Agreement (as such agreement
was modified pursuant to the Executive Agreement); or (c) or any agreement (other than the
Executive Agreement) that previously has been signed by you and the Company or any of its
affiliates (including without limitation a letter agreement dated as of April 30, 2002
between you and WS Fund III).

	10.	 	This Agreement shall be binding upon and inure to benefit of each party’s respective
successors and permitted assigns. This Agreement is made under, and shall be governed by and
construed under, the laws of the State of New York, without reference to principles of choice
of law that might call for application of the substantive law of another jurisdiction. The
federal and state courts located in New York County, New York, shall have sole and exclusive
jurisdiction over any dispute arising out of or relating to this Agreement, and each party
hereby expressly consents to the jurisdiction of such courts and waives any objection (whether
on grounds of venue, residence, domicile, inconvenience of forum or otherwise), to such a
proceeding brought before such a court.

	11.	 	Except as may be expressly amended by this Agreement, the Executive Agreement shall remain
unmodified and in full force and effect. Nothing in this Agreement modifies or amends the
Existing Agreement (as such agreement was modified pursuant to the Executive Agreement) or any
other agreement that previously has been signed by you and the Company or any of its
affiliates (including without limitation a letter agreement dated as of April 30, 2002 between
you and WS Fund III).

 

 

CONFIDENTIAL

Mr. Bart W. Catalane

February 24, 2006

Page 6

	12.	 	This Agreement constitutes the entire agreement of the parties with respect to the subject
matter hereof and supersedes any prior discussions or agreements of the parties related
thereto, whether written or oral. This Agreement may not be amended except in a writing
signed by each of the parties hereto. No waiver of any right set forth in this Agreement
shall be effective unless set forth in a writing signed by the party against whom the waiver
is to be enforced.

	13.	 	You acknowledge that by signing your name below you have read, understand and accept each of
the terms of this Agreement, that you have had sufficient opportunity to review it, to consult
with an attorney or other advisor, and that you are entering into it freely and knowingly.
You agree that you are not relying on any representations, whether written or oral, not set
forth in this Agreement, in determining to execute this Agreement. The terms of this
Agreement shall not be interpreted in favor of or against any party on account of the
draftsperson, but shall be interpreted solely for the purpose of giving effect to the intent
of the parties.

 

 

CONFIDENTIAL

Mr. Bart W. Catalane

February 24, 2006

Page 7

	14.	 	The offer will remain open for forty-five (45) days after the delivery of the original
letter. If not executed by you and delivered to the Company by such date, the offer shall be
deemed immediately withdrawn. In addition, if you decide to accept this offer, you will have
seven (7) days after you sign the release to change your mind and revoke your acceptance. If
you decide to change your mind, you must send the Company a written notice of revocation
postmarked or delivered before the end of the seven (7)-day period. The period eight (8) days
after you sign this Agreement, provided you have not revoked it, shall be the effective date
of this Agreement. You will not receive any payments pursuant to Paragraph 2 of this
Agreement if you fail to sign this Agreement or if you revoke this Agreement after you sign
it.

By signing below, each party hereby agrees with the above.

	 	 	 
	 

	 	Sincerely,
	 

	 	 
	 	 	/s/  Robert F. Callahan
 

	 	 	Robert F. Callahan
Chief Executive Officer

	 	 	 	 	 
	AGREED:	 	 
	 	 	 
	/s/  Bart W. Catalane
	 	 
	 	 	 
	Bart W. Catalane	 	 
	 
	 	 	 	 
	Date:<PAGE>

                                                                 EXHIBIT 10.23.8

                       AMENDMENT #8 TO THIRD RESTATED AND
                       AMENDED LOAN AND SECURITY AGREEMENT

         THIS AMENDMENT #8 TO THIRD RESTATED AND AMENDED LOAN AND SECURITY
AGREEMENT (this "AMENDMENT"), dated as of May 2, 2006, by and among GMAC
COMMERCIAL FINANCE LLC, as successor by merger to GMAC Commercial Credit LLC,
which was the successor in interest to BNY Financial Corporation ("GMAC CF"), as
Agent and Lender, THE CIT GROUP/BUSINESS CREDIT, INC., as successor in interest
to PNC Bank, National Association ("CIT", and together with GMAC CF, "LENDERS"),
as Lender and Co-Agent, JACO ELECTRONICS, INC. ("JACO"), NEXUS CUSTOM
ELECTRONICS, INC. ("NEXUS") and INTERFACE ELECTRONICS, INC. ("INTERFACE", and
together with Jaco and Nexus, "BORROWERS"). Each capitalized term herein shall,
unless otherwise defined, have the meaning ascribed thereto in the Loan
Agreement, as hereinafter defined.

                              W I T N E S S E T H :

         WHEREAS, Borrowers, GMAC CF, PNC Bank, National Association and Jaco de
Mexico, Inc. entered into that certain Third Restated and Amended Loan and
Security Agreement, dated December 22, 2003 (the "THIRD RESTATED AGREEMENT"), as
amended by (i) Amendment #1 to the Third Restated Agreement, dated September 20,
2004, (ii) Amendment #2 to the Third Restated Agreement, dated November 23,
2004, (iii) Amendment #3 to the Third Restated Agreement, dated February 11,
2005, (iv) Waiver and Amendment #4 to the Third Restated Agreement, dated as of
May 10, 2005, (v) Waiver and Amendment # 5 to the Third Restated Agreement,
dated September, 2005, (vi) Waiver #6 to the Third Restated Agreement, dated as
of November 14, 2005, and (vii) Amendment #7 to the Third Restated Agreement,
dated as of February 13, 2006 (as heretofore amended and as hereafter restated,
supplemented, extended, renewed, amended and otherwise modified from time to
time, the "LOAN AGREEMENT"), and into various instruments, agreements and other
documents executed and/or delivered in connection therewith (all of the
foregoing, together with the Loan Agreement, as the same now exist or may
hereafter be amended, restated, renewed, extended, substituted, modified or
supplemented from time to time, collectively, the "LOAN DOCUMENTS"); and

         WHEREAS, Borrowers have requested that Lenders agree to amend certain
terms of the Loan Agreement, and Lenders have agreed to accommodate Borrowers'
request subject to the terms and conditions set forth herein, all as more
particularly set forth below.

         NOW THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

         1. Amendment.

         Effective as of April 24, 2006, the second sentence of Section 2.10 of
the Loan Agreement is hereby amended and restated in its entirety to read as
follows:

                      "The aggregate amount of Letters of Credit outstanding at
                  any time shall not exceed $3,000,000 (the "Letters of Credit
                  Sublimit")."

<PAGE>

         2. Borrowers' Acknowledgements and Reaffirmations.

                  (a) Each Borrower hereby acknowledges, confirms and agrees
that as of the date of Borrowers' execution hereof, none of the Obligations are
subject to offset, defense or counterclaim of any kind, nature or description
whatsoever.

                  (b) Each Borrower hereby ratifies and confirms the Loan
Agreement and each of the other Loan Documents as being legal, valid and binding
joint and several obligations of Borrowers, enforceable against Borrowers in
accordance with their respective terms as modified hereby. Each Borrower hereby
confirms that there are no defenses to the performance of any of such Borrower's
obligations under the Loan Agreement or any of the other Loan Documents. Each
Borrower hereby ratifies and confirms such Borrower's grant to Agent, for the
ratable benefit of Agent, Lenders and each Issuer, of first priority perfected
liens upon, and security interests in, the properties and assets of such
Borrower heretofore mortgaged, pledged, granted or assigned to Agent under the
Loan Agreement and the other Loan Documents, and acknowledges and confirms that
such first priority perfected liens and security interests secure, and shall
continue to secure, the Obligations, subject only to such prior security
interests as are expressly permitted under the Loan Documents.

                  (c) By its signature below, each Borrower ratifies and affirms
to the Agent and the Lenders that as of the date hereof, it is in full
compliance with all covenants under the Loan Documents, and certifies (i) that
all representations and warranties of Borrowers in the Loan Documents are true
and accurate as of the date hereof, with the same effect as if they had been
made as of the date hereof, (ii) no Default or Event of Default has occurred and
is continuing, or would result from the execution, delivery and performance by
Borrowers of this Amendment; (iii) each Borrower has full power, right and legal
authority to execute, deliver and perform its obligations under this Amendment;
(iv) each Borrower has taken all action necessary to authorize the execution and
delivery of, and the performance of its obligations under, this Amendment; and
(v) this Amendment does not constitute a breach of any other agreement or
understanding to which such Borrower is a party or by which any property of such
Borrower is bound.

         3. Ratifications. By their signatures below, each Borrower hereby
ratifies the Loan Agreement ( as hereby amended) and agrees (i) to be jointly
and severally liable for all Obligations under the Loan Agreement, and (ii) that
all of the outstanding amounts of the Loans under the Loan Agreement, as of the
date hereof, are the valid and binding Obligations of each of them, and (iii) to
repay to the Agent, for the benefit of the Lenders, such Obligations (including
but not limited to all applicable interest) in accordance with the terms of the
Loan Agreement, but in no event later than the Termination Date.

         4. No Other Modifications. Except as specifically set forth herein, no
other changes or modifications to the Loan Agreement or the other Loan Documents
are intended or implied, and, in all other respects the Loan Agreement and the
other Loan Documents shall continue to remain in full force and effect in
accordance with their respective original terms except as heretofore amended in
writing. Nothing contained herein shall evidence a waiver by either Lender of
any other provision of the Loan Agreement or any of the other Loan Documents.

         5. No Third Party Beneficiaries. The terms and provisions of this
Amendment shall be for the benefit of the parties hereto and their respective
successors and assigns; no other person, firm, entity or corporation shall have
any right, benefit or interest under this Amendment.

<PAGE>

         6. Condition to Effectiveness. The effectiveness of the terms and
provisions of this Amendment shall be subject to the receipt by Agent of an
original of this Amendment, duly authorized, executed and delivered by
Borrowers.

         7. Counterparts. This Amendment may be signed in counterparts, each of
which shall be an original and all of which, when taken together, shall
constitute one agreement. In making proof of this Amendment, it shall not be
necessary to produce or account for more than one counterpart signed by the
party to be charged. Delivery of an executed counterpart of this Amendment by
electronically confirmed telefacsimile shall have the same force and effect as
the delivery of an original executed counterpart of this Amendment.

         8. Merger. This Agreement sets forth the entire agreement and
understanding of the parties with respect to the matters set forth herein. This
Amendment cannot be changed, modified, amended or terminated except in a writing
executed by the party to be charged.

         IN WITNESS WHEREOF, the parties have executed and delivered this
Amendment on the date hereinabove written.

                                  GMAC COMMERCIAL FINANCE LLC,
                                  as Agent and Lender

                                  By: /s/ Daniel J. Murray
                                          ---------------------------

                                  Title: 1st VP
                                         -------------------------------------
AGREED AND ACCEPTED:

THE CIT GROUP/BUSINESS/CREDIT, INC., as Lender

By: /s/ G. Louis McKinley
        ------------------------------------

Title: Vice President
       -------------------------------------

JACO ELECTRONICS, INC., Borrower

By:/s/ Jeffrey D. Gash
       -------------------------------------

Title: CFO
       -------------------------------------

NEXUS CUSTOM ELECTRONICS, INC., Borrower

By: /s/ Jeffrey D. Gash
        ------------------------------------

Title: Executive VP
       -------------------------------------

INTERFACE ELECTRONICS, INC., Borrower

By: /s/ Jeffrey D. Gash
        ------------------------------------

Title: Executive VP
       -------------------------------------

    [Amendment #7 to Third Restated and Amended Loan and Security Agreement]

                                       3

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