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EXHIBIT

10.1

 

PAYMENT AGREEMENT AND

GENERAL RELEASE

THIS PAYMENT AGREEMENT

AND GENERAL RELEASE (this “Agreement”) is made and entered into as of

April 11, 2002 by and among U-C Holdings, L.L.C., a Delaware limited liability

company (“Holdings”), CTN Media Group, Inc., a Delaware corporation (the

“Company”), and Neil H. Dickson (“Executive”).  Holdings, the Company and Executive are

sometimes referred to herein as the “Parties.”  Unless otherwise provided herein, capitalized terms shall have

the meanings set forth in that certain Fifth Amended and Restated Limited

Liability Company of U-C Holdings, L.L.C. (as amended from time to time, the “LLC

Agreement”), dated April 5, 2001, by and among the members of Holdings.

Effective as of April 14,

2002 (the “Termination Date”), Executive will no longer be employed by

the Company, and the Parties have agreed to the terms set forth herein with

respect to such termination.  This

Agreement will become effective upon the Effective Date (as defined below). The

Company shall have no obligations to make payments to Executive under this

Agreement prior to the Effective Date (as defined below).

Executive holds 275 Class

A Management Units of Holdings (collectively referred to as the “Executive

Securities”).

In consideration of the

mutual covenants and agreements made herein, and of the mutual benefit derived

hereby, the Parties, intending to be legally bound, hereby agree as follows:

TERMINATION

1.             Termination of Employment;

Severance.

(a)           Effective as of the Termination Date,

Executive will no longer be employed by the Company, and the Parties hereby

waive the notice provisions set forth in that certain Employment Agreement

dated April 15, 2000, as amended on February 1, 2001 among Holdings, the

Company and Executive (the “Employment Agreement”).

(b)           Except (i) as required by law, (ii)

as specifically provided in this Section 1, (iii) for the payment

of earned but unpaid Base Salary (as defined in the Employment Agreement)

through the Termination Date and (iv) for the payment of incurred but

unreimbursed expenses that have been previously submitted to and approved by

the Company, through the Termination Date, all of the Company’s obligations

under the Employment Agreement (including, but not limited to, with respect to

making payments or providing any other benefits) shall terminate automatically

as of the Termination Date.

(c)           Executive has obtained new employment

(at the request of Holdings and the Company) at a salary expected to be less

than his Base Salary.  Accordingly,

during the Termination Period (as defined below), the Company hereby agrees to

pay to Executive, in accordance with the standard payroll policies and

practices of the Company from time to time, an aggregate amount per month equal

to the excess, if any, of (i) the portion of Executive’s Base

 

1

 

Salary which would have

been owing to Executive at such time had Executive remained employed by the

Company over (ii) the portion of Estimated Income (as defined below) to which

Executive is entitled at such time. 

Promptly following the end of each Payment Period (as defined below),

Executive shall certify as to the amount of his Actual Income for such Payment

Period and provide such other information as reasonably requested by the

Company.  Within 30 days after

Executive’s Actual Income is finally determined and Executive has certified as

to the amount of his Actual Income, either (I) the Company shall pay to

Executive an amount, if any, equal to the lesser of (A) the excess, if

any, of Estimated Income over Actual Income for such period and (B) the

excess, if any, of Base Salary over Actual Income for such period, or

(II) Executive shall pay to the Company, to the extent Executive has

received payments from the Company, an amount, if any, equal to the lesser of

(A) the excess, if any, of Actual Income over Estimated Income for such

period and (B) the excess, if any, of Base Salary over Estimated Income

for such period.  The Company shall have

the right to reduce future monthly payments to Executive up to and to the

extent Executive fails to pay to the Company amounts due (if any) under

clause (II) above.  The “2002

Payment Period” shall be the period from April 15, 2002 to January 31,

2003.  The “2003 Payment Period”

shall be the period from February 1, 2003 to January 31, 2004.  The “2004 Payment Period” shall be

the period from February 1, 2004 to April 14, 2004.  The 2002 Payment Period, 2003 Payment Period

and 2004 Payment Period are collectively referred to herein as the “Payment

Periods.”  The Parties acknowledge

that Executive’s Base Salary with respect to each Payment Period is in

accordance with Schedule A.

(d)           The Parties acknowledge that the

Company intends to retain Executive and Executive’s law firm as its counsel for

all matters for which Executive’s law firm is qualified (as determined in good

faith by the Company’s board of directors); it being understood that the

Company will receive competitive pricing from Executive’s law firm and such

retention will be at all times subject to the Company’s satisfaction with such

law firm’s performance, as determined in good faith by the Company’s board of

directors.  Further, the Parties

acknowledge that Executive may undertake legal representation of Jason Elkin or

an entity formed by Mr. Elkin.  Although

the Parties do not believe that there is currently a conflict of interest in

said representation, a potential conflict or an appearance of a conflict may

exist.  The Company and Holdings agree

to Executive’s representation of Mr. Elkin or an entity formed by Mr. Elkin,

and waive and such potential conflict; provided however, Executive shall not

represent Mr. Elkin in a matter against or otherwise adverse to the Company or

any of its affiliates, including Holdings, Willis Stein & Partners and any

of their affiliates.

(e)           Notwithstanding the foregoing, during

the Termination Period, Executive shall be entitled, at the Company’s expense,

to elect COBRA under the Company’s health, dental and vision plan.

(f)            Effective as of the Closing Date,

Executive agrees that Sections 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19 and 20

of the Employment Agreement (as amended by this paragraph, the “Surviving

Provisions”) shall remain in full force and effect except that the term

“Employment Period,” where used therein, shall be read as “Termination Period”

(as defined below).  Executive agrees

and acknowledges that, in the event of a breach by Executive of Section 8, 9 or

10 of the Employment Agreement, Executive shall no longer be entitled to receive

any payments or benefits hereunder. 

Notwithstanding the foregoing, the Parties acknowledge that Executive’s

legal representation of companies, even if competitive with the

 

2

 

Company, shall not be in

violation of Section 10 of the Employment Agreement provided that Executive is

not an employee, officer, director or manager of, a partner in, or a holder of

more than 2% of the equity interests of, a competitor of the Company; it being

understood that this acknowledgement shall not be deemed a waiver by any of the

Parties of Executive’s obligations under Section 10 of the Employment

Agreement.

(g)           On the Effective Date, the Company

shall transfer ownership to Executive of the laptop computer currently utilized

by Executive.

(h)           The following terms have the meanings

set forth below:

                                                                                (i)            “Actual Income” means the

aggregate amount of gross income, including all payments, in whatever form, in

the nature of compensation (including, without limitation, guaranteed payments

or distributive shares of income from a partnership (determined on the basis of

book income where book income differs from taxable income), salary, bonus,

profit-sharing and fringe benefits (excluding firm and department retreats and

parties, malpractice insurance and other insurance benefits provided to all

employees of the same class, reimbursement or payment of parking, meal and

other similar work–related expenses, reimbursable expenses or payment for

equipment, tools and supplies, cafeteria plans funded by Executive and seminar

fees)) to which Executive is entitled from his employment with any person or

entity during a Payment Period (including, without limitation, any taxes and

other amounts withheld with respect to the foregoing).

                                                                                (ii)           “Estimated Income” means, with

respect to any Payment Period, the Parties mutually agreed estimate of what

Executive’s Actual Income will be for such period (as adjusted in good faith by

the Parties to reflect significant changes in Executive’s compensation during

any such Payment Period).  The Parties

agree that Executive’s Estimated Income with respect to the 2002 Payment Period

will be $197,916.64.  If the Parties

cannot agree on the determination of Executive’s Estimated Income following the

2002 Payment Period, so long as Executive is employed by Executive’s new law

firm, then the Parties agree that Executive’s Estimated Income will be

$250,000.00 with respect to the 2003 Payment Period and $52,083.33 with respect

to the 2004 Payment Period.

                                                                                (iii)          “COBRA” means the Consolidated

Omnibus Reconciliation Act of 1985, as amended from time to time.

                                                                                (iv)          “Termination Period” means the

period commencing on the Effective Date and ending on the April 14, 2004.

PURCHASE OF EXECUTIVE

SECURITIES

2.             Purchase and Sale of Executive

Securities.

(a)           On the terms set forth herein,

Executive hereby agrees to sell to Holdings, and Holdings hereby agrees to

purchase from Executive, 175 Class A Management Units (the “Repurchased

Executive Securities”) free and clear of all Encumbrances (as defined

below) and

 

3

 

all rights with respect

thereto. The Company and Holdings agree that the repurchase option shall be

terminated with respect to, and shall not apply to, the 100 Class A Management

Units (the “Retained Executive Securities”) retained by Executive.  The purchase price for the Repurchased

Executive Securities shall be $175.

(b)           At the closing of the purchase and

sale of the Repurchased Executive Securities (the “Closing”), Holdings

will purchase the Repurchased Executive Securities.  The Closing shall take place at the Company’s offices on the

Effective Date (the date that the Closing occurs is referred to as the “Closing

Date”), or at such other place as may be mutually agreeable to the parties

hereto.

(c)           Executive acknowledges that he has

had an opportunity to ask questions and receive answers concerning the terms

and conditions of the sale of, and the value of, the Repurchased Executive

Securities, and has had full access to such financial or other information

concerning the Company and Holdings as he has requested.  Neither the Company nor Holdings makes any

representation or warranty regarding the value of the Repurchased Executive

Securities.

MUTUAL RELEASES

3.             Mutual Releases.

(a)           In consideration of the payments and

covenants of Holdings and the Company set forth herein, Executive (on behalf of

himself and his respective heirs, assigns or executors) hereby releases

Holdings, the Company, and their respective predecessors, successors and

assigns, and their respective present and former direct or indirect affiliates,

shareholders, subsidiaries, officers, directors, partners, members, managers,

employees, agents and attorneys (collectively, the “Releasees”) from any

and all claims, actions, lawsuits, obligations, agreements, contracts,

commitments and liabilities which exist or may exist of any kind whatsoever,

whether known or unknown (collectively, “Claims”), which Executive

(including any heirs, assigns or executors) now has or may in the future have

against any of the Releasees which relate in any way to Executive’s employment

with the Company, Executive’s ownership of the Executive Securities or

otherwise relate to Executive’s association with any of the Releasees prior to

the Effective Date; provided that “Claims” shall not include, and this Section

3(a) shall not be deemed a release of, any obligations of Holdings or the

Company expressly set forth in this Agreement or in the LLC Agreement with

respect to the Retained Executive Securities. Notwithstanding the foregoing,

Executive shall be entitled to the benefits of the indemnity provided by the

LLC Agreement and the Company’s certificate of incorporation or bylaws as of

the date hereof, and any subsequent changes to the certificate of incorporation

or bylaws enlarging or reducing the indemnity granted to Executive shall not

affect the rights of Executive existing as of the date hereof.

(b)           In consideration of the covenants of

Executive set forth herein, Holdings, the Company and Willis Stein &

Partners, L.P. each hereby releases Executive from any and all Claims which

Holdings and/or the Company (including their respective predecessors,

successors and assigns, and their respective present and former direct or

indirect subsidiaries) and/or Willis Stein & Partners, L.P. (also referred

to as “Releasees”) now has or may in the future have against

 

4

 

Executive which relate in

any way to Executive’s employment with the Company, Executive’s ownership of

the Repurchased Executive Securities or otherwise relate to Executive’s

association with any of the Company or Holdings prior to the Effective Date;

provided that “Claims” shall not include, and this Section 3(b) shall

not be deemed a release of, any obligations of Executive expressly set forth in

this Agreement, the LLC Agreement or the Surviving Provisions of the Employment

Agreement (as amended hereby).

(c)           By entering into this Agreement, each

of the Parties intends that it shall be effective as a bar to each and every

one of the Claims hereinabove mentioned or implied. Each of the Parties

expressly consents that this Agreement shall be given full force and effect

according to each and all of its express terms and provisions, including those

relating to unknown and unsuspected Claims. 

Each of the Parties acknowledges and agrees that the provisions hereof

are reasonable in context and scope and that this waiver is an essential and

material term of this Agreement and without such waiver the Parties would not

have made the promises described in this Agreement.

(d)           Each of the Parties further agrees

that in the event such Party brings its own Claim in which it seeks damages

against the Releasees or in the event such Party seeks to recover against any

other Party or any of the Releasees in any Claim brought by a governmental

agency on such person’s behalf, the releases set forth in this Agreement shall

serve as a complete defense to such Claims.

(e)           Executive acknowledges that the

Company has provided Executive at least twenty-one (21) days to decide whether

to execute this Agreement.  Executive

understands he has up to seven (7) days to revoke this Agreement after its

execution, and that this Agreement, including the release and waiver in Section

3(a) above, shall not be effective and enforceable until the eighth day

following its execution provided that Executive has not revoked this Agreement

prior to such time (the “Effective Date”).  Executive hereby agrees and acknowledges that the Company shall

have no obligations to make payments to him hereunder unless and until the

Effective Date occurs.

REPRESENTATIONS AND

WARRANTIES

4.             Representations and Warranties

of Executive.  Executive represents

and warrants to Holdings and the Company as follows:

(a)           Authorization.  Executive has the power and capacity to

execute and deliver this Agreement, to perform fully his obligations hereunder

and to consummate the actions contemplated hereby.  Executive has duly executed and delivered this Agreement and this

Agreement is a legal, valid and binding obligation of Executive, enforceable

against Executive in accordance with its terms, except as such enforceability

may be limited by (a) applicable insolvency, bankruptcy, reorganization,

moratorium or other similar laws affecting creditors’ rights generally and (b)

applicable equitable principles (whether considered in a proceeding at law or

in equity).

(b)           Ownership of the Executive

Securities.  All of the Executive

Securities are owned of record and beneficially by Executive, and Executive has

good and marketable title to

 

5

 

such Executive

Securities, free and clear of any security interests, claims, liens, options,

pledges, charges, encumbrances, voting trusts, proxies or other restrictions of

any kind whatsoever (“Encumbrances”). 

Executive shall transfer to Holdings good and marketable title to the

Repurchased Executive Securities.

(c)           Executive’s Understanding;

Instruction to Consult Counsel. 

Executive acknowledges that he understands the contents of this

Agreement, that he is competent to enter into this Agreement and that he had

been advised to consult, and has consulted, with an attorney concerning this

Agreement, and that his signature has not been obtained by duress.

(d)           Return of Confidential

Information, Etc.  In accordance

with Section 8 of the Employment Agreement, Executive shall deliver on or prior

to the Termination Date to the Company all memoranda, notes, plans, records,

reports, computer tapes, printouts and software and other documents (and copies

thereof) relating to Confidential Information, Work Product (as such terms are

defined in the Employment Agreement) or the business of Holdings, the Company

or any Subsidiary which he possesses or has under his control; provided however

that, Executive shall retain copies of legal files necessary for Executive’s

representation of the Company.

5.             Representation and Warranty of

the Company and Holdings.  Each of

the Company and Holdings represents and warrants to Executive that the Company

and Holdings have the power and authority to execute and deliver this

Agreement, to perform fully their obligations hereunder and to consummate the

actions contemplated hereby. Each of the Company and Holdings has duly executed

and delivered this Agreement and this Agreement is a legal, valid and binding

obligation of the Company and Holdings enforceable against the Company and

Holdings in accordance with its terms, except as such enforceability may be

limited by (a) applicable insolvency, bankruptcy, reorganization, moratorium or

other similar laws affecting creditors’ rights generally and (b) applicable

equitable principles (whether considered in a proceeding at law or in equity).

MISCELLANEOUS

6.             Nondisparagement.  Each Party agrees that it will not make

negative or disparaging comments regarding each other, except as may be

required under law.

7.             Survival of Representations and

Warranties.  All representations and

warranties contained herein shall survive the execution and delivery of this

Agreement and the transfer of the Repurchased Executive Securities hereunder.

8.             Governing Law.  This Agreement will be governed by and

construed in accordance with the internal laws of the State of Delaware,

without giving effect to any choice of law or conflict of law provision or rule

(whether of the State of Delaware or any other jurisdiction) that would cause

the application of the laws of any jurisdiction other than the State of

Delaware.

9.             Further Assurances; Assistance

and Cooperation.  After the

execution hereof, as and when requested by Holdings, Executive shall, without

further consideration, execute and deliver all such instruments of conveyance

and transfer and shall take such further actions as

 

6

 

may be reasonably

necessary in order to confirm the transfer of the Repurchased Executive

Securities to Holdings and the other matters provided herein.  Further, Executive agrees to reasonably

assist and cooperate with the Company and Holdings and their attorneys and

advisors in connection with any litigation, arbitration or other proceeding

involving the Company, Holdings or any of the Releasees (including, without

limitation, all currently pending litigation); provided that the Company shall

reimburse Executive for any reasonable travel or other incidental out-of-pocket

expenses incurred by Executive in connection with the provision of such

assistance subject to prior approval by the Company of the incurrence of such

expenses.

10.           Complete Agreement.  This Agreement constitutes the entire

agreement between the Parties hereto regarding the subject matter of this

Agreement and supersedes and preempts any prior understandings, agreements or

representations, written or oral, which may have related to the subject matter

hereof.

11.           Headings.  The headings used in this Agreement are for

the purpose of reference only and will not affect the meaning or interpretation

of any provision of this Agreement.

12.           Counterparts.  The Parties may execute this Agreement in

separate counterparts (no one of which need contain the signatures of all

Parties), each of which will be an original and all of which together will

constitute one and the same instrument.

13.           Remedies.  Each of the Parties will be entitled to

enforce its rights under this Agreement specifically, to recover damages and

costs (including attorney’s fees) caused by any breach of any provision of this

Agreement, and to exercise all other rights existing in its favor.  The Parties agree and acknowledge that money

damages may not be an adequate remedy for any breach of the provisions of this

Agreement and that any Party may in its sole discretion apply to any court of

law or equity of competent jurisdiction (without posting any bond or deposit)

for specific performance and/or other injunctive relief in order to enforce or

prevent any violations of the provisions of this Agreement and/or the Surviving

Provisions of the Employment Agreement.

14.           Arbitration.  Except as set forth in Section 13,

any controversy or claim arising out of or relating to this Agreement shall be

settled exclusively by final and binding arbitration in accordance with the

rules of the American Arbitration Association and shall take place in Delaware.

Judgment upon the arbitration award may be enforced in any court having

jurisdiction thereover. The Party against whom any proceeding hereunder is

finally resolved shall bear the costs of (a) each Party’s respective attorneys,

witnesses and experts in connection with such arbitration and (b) the

arbitrator.

15.           Successors and Assigns.  This Agreement shall bind and inure to the

benefit of and be enforceable by each of the Parties and their respective

successors, heirs, executors and assigns.

16.           No Admission.  This Agreement, and any negotiations or

discussions connected with it, shall not, in any event or respect, constitute

or be construed as, or be deemed to be evidence of, an admission of, or

concession of, any wrongdoing by any Party. 

The Parties acknowledge, understand and agree that the fact of, terms

of, and negotiations and discussions

 

7

 

leading up to this

Agreement are covered by Federal Rule of Evidence 408, and any state law

equivalents, as offers of compromise, and thus are not evidence and may not be

used or referred to in any litigation, except to enforce this Agreement and its

terms.

17.           No Strict Construction.  The language used in this Agreement shall be

deemed to be the language chosen by the Parties to express their mutual intent,

and no rule of strict construction shall be applied against any Party.

18.           Press Release.  Any press release or public announcement

regarding this Agreement or the termination of Executive’s employment shall be

in a form mutually acceptable to the Parties, except as required by law.

19.           D&O Insurance.  The Company agrees to continue through the

Termination Period, at a reasonable cost to the Company, Executive’s coverage

under its director and officer insurance policy with respect to the period

during which Executive was an officer of the Company and to the extent

permitted by such policy.

20.           Severability.  Should any provision of this Agreement

adjudged to any extent invalid by any court or tribunal of competent

jurisdiction or arbitrator, each provision shall be deemed modified to the

minimum extent necessary to render it enforceable.

*              *              *              *

 

8

 

IN WITNESS WHEREOF, the

Parties hereto have executed this Agreement on the day and year first above

written.

 

	

   

  	

   

  	

  /s/ Neil H. Dickson

  
	

   

  	

   

  	

  Neil H. Dickson

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  U-C HOLDINGS, L.L.C.

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By: WILLIS STEIN &

  PARTNERS, L.P.

  
	

   

  	

   

  	

  Its: Managing Member

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By: Willis Stein &

  Partners, L.L.C.

  
	

   

  	

   

  	

  Its: General Partner

  
	

   

  	

   

  	

   

  
	 
	

  By:

  	

   

  	

  /s/ Avy H. Stein

  
	 
	

  Its:

  	

   

  	

  Managing Director

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  CTN MEDIA GROUP, INC.

  
	

   

  	

   

  	

   

  
	 
	

  By:

  	

   

  	

  /s/ Pat Doran

  
	 
	

  Name:

  	

   

  	

  Pat Doran

  
	 
	

  Its:

  	

   

  	

  Chief Financial Officer

  
										

 

 

9

 

(SIGNATURE PAGE TO PAYMENT AGREEMENT AND GENERAL RELEASE)

 

 

Solely with respect to Section 3 of this Agreement,

agreed to on this           day of April, 2002 by:

 

WILLIS STEIN & PARTNERS, L.P.

 

By: Willis Stein & Partners, L.L.C.

Its: General Partner

 

	

  By:

  	

  /s/ Avy H. Stein

  
	

  Its:

  	

  Managing Director

  

 

 

 

10

 

SCHEDULE A

 

PRORATED BASE SALARY

 

 

	

  April 15, 2002

  to April 30, 2002

  	

   

  	

  $

  	

  17,645.84

  	

   

  
	

  May 2002

  	

   

  	

  $

  	

  35,291.67

  	

   

  
	

  June 2002

  	

   

  	

  $

  	

  35,291.66

  	

   

  
	

  July 2002

  	

   

  	

  $

  	

  35,291.67

  	

   

  
	

  August 2002

  	

   

  	

  $

  	

  35,291.66

  	

   

  
	

  September 2002

  	

   

  	

  $

  	

  35,291.67

  	

   

  
	

  October 2002

  	

   

  	

  $

  	

  35,291.66

  	

   

  
	

  November 2002

  	

   

  	

  $

  	

  35,291.67

  	

   

  
	

  December 2002

  	

   

  	

  $

  	

  35,291.66

  	

   

  
	

  January 2003

  	

   

  	

  $

  	

  35,291.67

  	

   

  
	

  February 2003

  	

   

  	

  $

  	

  35,291.66

  	

   

  
	

  March 2003

  	

   

  	

  $

  	

  35,291.67

  	

   

  
	

  April 1, 2003 to

  April 14, 2003

  	

   

  	

  $

  	

  17,645.84

  	

   

  
	

  April 15, 2003

  to April 30, 2003

  	

   

  	

  $

  	

  19,410.41

  	

   

  
	

  May 2003

  	

   

  	

  $

  	

  38,820.83

  	

   

  
	

  June 2003

  	

   

  	

  $

  	

  38,820.84

  	

   

  
	

  July 2003

  	

   

  	

  $

  	

  38,820.83

  	

   

  
	

  August 2003

  	

   

  	

  $

  	

  38,820.84

  	

   

  
	

  September 2003

  	

   

  	

  $

  	

  38,820.83

  	

   

  
	

  October 2003

  	

   

  	

  $

  	

  38,820.84

  	

   

  
	

  November 2003

  	

   

  	

  $

  	

  38,820.83

  	

   

  
	

  December 2003

  	

   

  	

  $

  	

  38,820.84

  	

   

  
	

  January 2004

  	

   

  	

  $

  	

  38,820.83

  	

   

  
	

  February 2004

  	

   

  	

  $

  	

  38,820.84

  	

   

  
	

  March 2004

  	

   

  	

  $

  	

  38,820.83

  	

   

  
	

  April 1, 2004 to

  April 14, 2004

  	

   

  	

  $

  	

  19,410.41

  	

   

  

 

 

 

11EXHIBIT 10

EXHIBIT

10.2

 

 

TERMINATION

AND PURCHASE AGREEMENT

 

THIS TERMINATION

AND PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of

February 4, 2002 by and between U–C Holdings, L.L.C., a Delaware limited

liability company (the “Purchaser”), CTN Media Group, Inc., a Delaware

corporation (the “Company”), and Daniel D. Davenport (“Executive”).  The Purchaser, the Company and Executive are

sometimes referred to herein as the “Parties.”  Unless otherwise provided herein, capitalized terms shall have the

meanings set forth in that certain Fifth Amended and Restated Limited Liability

Company of U–C Holdings, L.L.C. (as amended from time to time, the “LLC

Agreement”), dated April 5, 2001, by and among the members of the

Purchaser.

 

Effective as of

October 19, 2001 (the “Termination Date”), Executive’s employment by the

Company was terminated without cause, and the Parties have agreed to the terms

set forth herein with respect to such termination.  The Company shall have no obligations to make payments to Executive

hereunder prior to the Closing Date.

 

Executive holds

595,374 Class A and B Investor Units of the Purchaser (collectively referred to

as the “Executive Securities”).

 

In consideration

of the mutual covenants and agreements made herein, and of the mutual benefit

derived hereby, the Parties, intending to be legally bound, hereby agree as

follows:

 

TERMINATION

 

1.             Termination of

Employment; Severance.

 

(a)           Effective as of the Termination Date,

Executive will no longer be employed by the Company, and the Parties hereby

waive the notice provisions set forth in that certain  Employment Agreement dated

July 19, 1999, as amended on July 12, 2000, among the Company and Executive

(the “Employment Agreement”).

 

(b)           Except (i) as

required by law, (ii) as specifically provided in this Section 1,

(iii) for the payment of earned but unpaid Base Salary (as defined in the

Employment Agreement) through the Termination Date, and (iv) payment of accrued

but unused vacation through the Termination Date (which Executive and the

Company acknowledge has already been paid), all of the Company’s obligations

under the Employment Agreement (including, but not limited to, with respect to

making payments or providing any other benefits) shall terminate automatically

as of the Termination Date.

 

 

 

(c)           Effective as of the

Closing Date, Executive agrees that Sections 5 through 17 of the Employment

Agreement (as amended by this paragraph, the “Surviving Provisions”)

shall remain in full force and effect except that the term “Employment Period,”

where used therein, shall be read as “Termination Period” (as defined below);

provided, however, that the parties agree that the restrictive covenants set

forth in Section 7 of the Employment Agreement shall terminate at the end

of the Termination Period, except for the restrictions set forth in Section

7(b)(i) and (ii) shall terminate six (6) months from the date of this

Agreement.  The Company also agrees that

the restrictions set forth in Section 7(b)(i) and (ii) shall not apply to any

employee whose employment with the Company has terminated, provided that such

employee was not solicited by Executive prior to the termination of such

employee’s employment with the Company. 

Executive agrees and acknowledges that, in the event of a breach by Executive

of Sections 5, 6 or 7 (as modified herein) of the Employment Agreement,

Executive shall no longer be entitled to receive any benefits hereunder or any

amounts owing under the Company Note. 

Notwithstanding anything else in this Section 1 (c), if the Company

fails to make a payment pursuant to the Company Note (as defined below) on its

due date or within 20 days thereafter at any time between the date of this

Agreement through April 30, 2002 (after taking into account a twenty (20) day

cure period) the restrictive covenants relating to non-competition and

non-solicitation contained in Section 7(b)(i) and (ii) of the Employment

Agreement shall thereby be terminated and from that period forward be of no

further force or effect.

 

(d)           The Company shall

transfer ownership to Executive of the personal computer located in Executive’s

office at the time of termination.

 

(e)           “Termination

Period” means the period commencing on the Termination Date and ending on

April 30, 2003.

 

PURCHASE OF EXECUTIVE SECURITIES

 

2.             Purchase and

Sale of Executive Securities.

 

(a)           On the terms set

forth herein, Executive hereby agrees to sell to the Purchaser, and the

Purchaser hereby agrees to purchase from Executive, the Executive Securities

free and clear of all Encumbrances (as defined in Section 4(b)

below) and all rights with respect thereto.

 

(b)           At the closing of

the purchase and sale of the Executive Securities (the “Closing”), the

Purchaser will purchase the Executive Securities for the consideration

described in Section 2(c) below (the “Purchase Price”);

provided that, the Purchaser shall not be obligated to purchase the Executive

Securities and Executive shall not be obligated to perform hereunder prior to

receipt of (collectively, the “Consents”) (i) the consent of

LaSalle Bank National Association to the transactions contemplated hereunder

(including subordination language acceptable to LaSalle Bank National

Association with respect to the Company Note, as defined in Section 2(c)

below) (the “LaSalle Consent”), and (ii) the 

 

 

2

 

approval

of the Dividend (as defined in Section 2(d) below), issuance of the

Company Note and other terms contemplated hereunder by the finance committee or

other disinterested committee of the board of directors of the Company.

 

(c)           The Closing shall

take place at the Company’s offices contemporaneously with the execution of

this Agreement (the date that the Closing occurs is referred to as the “Closing

Date”), or at such other place as may be mutually agreeable to the parties

hereto.  At the Closing, the Purchaser

shall deliver to Executive the Purchase Price as follows: (i) the

Executive Notes (as defined below), in the aggregate principal amount of $476,415,

together with all accrued but unpaid interest thereon, marked as canceled,

(ii)  the transfer and assignment to Executive of a subordinated

promissory note issued by the Company to the Purchaser (the “Company Note”)

in the aggregate principal amount of $110,000, which note shall be in the form

and substance set forth on Exhibit A attached hereto. Effective

simultaneously with the Closing, the Unit Pledge Agreement dated as of February

1, 2000, between the Purchaser and Executive shall be deemed to be

terminated.  “Executive Notes”

means the four outstanding notes payable by Executive to the Purchaser in the

original principal amount of $180,834, $47,620, $94,352 and $153,609,

respectively, each dated as of February 1, 2000.

 

(d)           Immediately prior to

the Closing, the Company’s board of directors shall declare a dividend (the “Dividend”)

in the aggregate amount of $110,000 on its outstanding Series A

Convertible Preferred Stock (pro rata based on the amount of accumulated but

unpaid dividends thereon).  Payment of

such dividend shall be satisfied by the issuance by the Company of the Company

Note to the Purchaser.

 

(e)           Executive acknowledges that he has

had an opportunity to ask questions and receive answers concerning the terms

and conditions of the sale of, and the value of, the Executive Securities, and

has had full access to such financial or other information concerning the

Company and the Purchaser as he has requested. 

Neither the Company nor the Purchaser makes any representation or

warranty regarding the value of the Executive Securities.

 

 

MUTUAL RELEASES

 

3.             Mutual Releases.

 

(a)           In consideration of the payments and

covenants of the Purchaser set forth herein, Executive (on behalf of himself

and his respective heirs, assigns or executors) hereby releases the Purchaser,

the Company, and their respective predecessors, successors and assigns, and

their respective present and former direct or indirect affiliates,

shareholders, subsidiaries, officers, directors, partners, members, managers,

employees, agents and attorneys (collectively, the “Releasees”) from any

and all claims, actions, lawsuits, obligations, agreements, contracts,

commitments and liabilities which exist or may exist of 

 

 

3

 

any kind whatsoever,

whether known or unknown (collectively, “Claims”), which Executive

(including any heirs, assigns or executors) now has or may in the future have

against any of the Releasees which relate in any way to Executive’s employment

with the Company, Executive’s ownership of the Executive Securities or

otherwise relate to Executive’s association with any of the Releasees; provided

that “Claims” shall not include, and this Section 3(a) shall not be

deemed a release of, any obligations of the Purchaser or the Company expressly

set forth in this Agreement or in the Company Note. Notwithstanding the

foregoing, Executive shall be entitled to the benefits of the indemnity

provided by the LLC Agreement and the Company’s certificate of incorporation or

bylaws as of the date hereof, and any subsequent changes to the certificate of

incorporation or bylaws enlarging or reducing the indemnity granted to

Executive shall not affect the rights of Executive existing as of the date

hereof.

 

(b)           In consideration of

the covenants of Executive set forth herein, the Purchaser and the Company each

hereby releases Executive and his respective heirs, successors or executors,

from any and all Claims which the Purchaser and/or the Company (including their

successors and assigns) (also referred to as “Releasees”) now has or may

in the future have against Executive which relate in any way to Executive’s

employment with the Company, Executive’s ownership of the Executive Securities,

or otherwise relate to Executive’s association with any of the Company or the

Purchaser; provided that “Claims” shall not include, and this Section 3(b)

shall not be deemed a release of, any obligations of Executive expressly set

forth in this Agreement or the Surviving Provisions of the Employment Agreement

(as amended hereby).

 

(c)           By entering into

this Agreement, each of the Parties intends that it shall be effective as a bar

to each and every one of the Claims hereinabove mentioned or implied. Each of

the Parties expressly consents that this Agreement shall be given full force

and effect according to each and all of its express terms and provisions,

including those relating to unknown and unsuspected Claims.  Each of the Parties acknowledges and agrees

that the provisions hereof are reasonable in context and scope and that this

waiver is an essential and material term of this Agreement and without such

waiver the Parties would not have made the promises described in this

Agreement.

 

(d)           Each of the Parties

further agrees that in the event such Party brings its own Claim in which it

seeks damages against the Releasees or in the event such Party seeks to recover

against any other Party or any of the Releasees in any Claim brought by a

governmental agency on such person’s behalf, the releases set forth in this

Agreement shall serve as a complete defense to such Claims.

 

(e)           Executive

acknowledges that the Company has provided Executive at least twenty-one (21)

days to decide whether to execute this Agreement.  Executive hereby agrees and acknowledges that the Company shall

have no obligations to make payments to him hereunder prior to the Closing

Date.

 

 

4

 

REPRESENTATIONS

AND WARRANTIES

 

4.             Representations

and Warranties of Executive. 

Executive represents and warrants to the Purchaser as follows:

 

(a)           Authorization.  Executive has the power and capacity to

execute and deliver this Agreement, to perform fully his obligations hereunder

and to consummate the actions contemplated hereby.  Executive has duly executed and delivered this Agreement and this

Agreement is a legal, valid and binding obligation of Executive, enforceable

against Executive in accordance with its terms, except as such enforceability

may be limited by (a) applicable insolvency, bankruptcy, reorganization,

moratorium or other similar laws affecting creditors’ rights generally and (b)

applicable equitable principles (whether considered in a proceeding at law or

in equity).

 

(b)           Ownership of the

Executive Securities.  All of the

Executive Securities are owned of record and beneficially by Executive, and

Executive has good and marketable title to such Executive Securities, free and

clear of any security interests, claims, liens, options, pledges, charges,

encumbrances, voting trusts, proxies or other restrictions of any kind

whatsoever (“Encumbrances”), other than Encumbrances created hereunder

or under the Unit Pledge Agreement. 

Executive shall transfer to the Purchaser good and marketable title to

the Executive Securities.

 

(c)           Executive’s

Understanding; Instruction to Consult Counsel.  Executive acknowledges that he understands the contents of this

Agreement, that he is competent to enter into this Agreement and that he had

been advised to consult, and has consulted, with an attorney concerning this

Agreement, and that his signature has not been obtained by duress.

 

(d)           Return of

Confidential Information, Etc.  In

accordance with Section 5 of the Employment Agreement, Executive shall

deliver on or prior to the Termination Date to the Company all memoranda,

notes, plans, records, reports, computer tapes, printouts and software and

other documents (and copies thereof) relating to Confidential Information, Work

Product (as such terms are defined in the Employment Agreement) or the business

of the Purchaser, the Company or any Subsidiary which he possesses or has under

his control.

 

5.             Representation

and Warranty of the Company and the Purchaser.  Each of the Company and the Purchaser represents and warrants to

Executive that the Company and the Purchaser have the power and authority to

execute and deliver this Agreement and the exhibits attached hereto, to perform

fully their obligations hereunder and to consummate the actions contemplated

hereby. Each of the Company and the Purchaser has duly executed and delivered

this Agreement and this Agreement is a legal, valid and binding obligation of

the Company and the Purchaser enforceable against the Company and the Purchaser

in accordance with its terms, except as such enforceability may be limited by

(a) applicable insolvency, bankruptcy, reorganization, moratorium or other

similar laws affecting creditors’ rights generally and (b) applicable

equitable principles (whether considered in a proceeding at law or in equity).

 

 

5

 

MISCELLANEOUS

 

6.             Nondisparagement.  Each Party agrees that it will not make

negative or disparaging comments regarding each other, except as may be

required under law.

 

7.             Survival of

Representations and Warranties.  All

representations and warranties contained herein shall survive the execution and

delivery of this Agreement and the transfer of the Executive Securities

hereunder.

 

8.             Governing Law.  The corporate law of the State of Delaware

will govern all questions concerning the relative rights of the Purchaser and

its unit holders. All other questions concerning the construction, validity and

interpretation of this Agreement will be governed by and construed in

accordance with the internal laws of the State of Delaware, without giving

effect to any choice of law or conflict of law provision or rule (whether of

the State of Delaware or any other jurisdiction) that would cause the

application of the laws of any jurisdiction other than the State of Delaware.

 

9.             Further

Assurances; Assistance and Cooperation. 

After the Closing, as and when requested by a Party, the other Parties

shall, without further consideration, execute and deliver all such instruments

of conveyance and transfer and shall take such further actions as may be

reasonably necessary in order to confirm the transfer of the Executive

Securities to the Purchaser (as applicable) and the other matters provided

herein.  Further, Executive agrees to

reasonably assist and cooperate with the Company and the Purchaser and their

attorneys and advisors in connection with any litigation, arbitration or other

proceeding involving the Company, the Purchaser or any of the Releasees

(including, without limitation, all currently pending litigation); provided

that the Company shall reimburse Executive for any reasonable travel or other

incidental out-of-pocket expenses incurred by Executive in connection with the

provision of such assistance subject to prior approval by the Company of the

incurrence of such expenses.

 

10.           Complete

Agreement.  This Agreement

constitutes the entire agreement between the Parties hereto regarding the

subject matter of this Agreement and supersedes and preempts any prior

understandings, agreements or representations, written or oral, which may have

related to the subject matter hereof.

 

11.           Headings.  The headings used in this Agreement are for

the purpose of reference only and will not affect the meaning or interpretation

of any provision of this Agreement.

 

12.           Counterparts.  The Parties may execute this Agreement in

separate counterparts (no one of which need contain the signatures of all

Parties), each of which will be an original and all of which together will

constitute one and the same instrument.

 

13.           Remedies.  Each of the Parties will be entitled to

enforce its rights under this Agreement specifically, to recover damages and

costs (including attorney’s fees) caused by any breach of any provision of this

Agreement, and to exercise all other rights existing in its favor.  The 

 

 

6

 

Parties agree and

acknowledge that money damages may not be an adequate remedy for any breach of

the provisions of this Agreement and that any Party  may in its sole discretion apply to any court of law or equity of

competent jurisdiction (without posting any bond or deposit) for specific performance

and/or other injunctive relief in order to enforce or prevent any violations of

the provisions of this Agreement and/or the Surviving Provisions of the

Employment Agreement.

 

14.           Arbitration.  Except as set forth in Section 13,

any controversy or claim arising out of or relating to this Agreement shall be

settled exclusively by final and binding arbitration in accordance with the

rules of the American Arbitration Association and shall take place in Delaware

or Georgia. Judgment upon the arbitration award may be enforced in any court

having jurisdiction thereover. The Party against whom any proceeding hereunder

is finally resolved shall bear the costs of (a) each Party’s respective

attorneys, witnesses and experts in connection with such arbitration and (b)

the arbitrator.

 

15.           Successors and

Assigns.  This Agreement shall bind

and inure to the benefit of and be enforceable by each of the Parties and their

respective successors, heirs, executors and assigns.

 

16.           No Admission.  This Agreement, and any negotiations or

discussions connected with it, shall not, in any event or respect, constitute

or be construed as, or be deemed to be evidence of, an admission of, or

concession of, any wrongdoing by any Party. 

The Parties acknowledge, understand and agree that the fact of, terms

of, and negotiations and discussions leading up to this Agreement are covered

by Federal Rule of Evidence 408, and any state law equivalents, as offers of

compromise, and thus are not evidence and may not be used or referred to in any

litigation, except to enforce this Agreement and its terms.

 

17.           No Strict

Construction.  The language used in

this Agreement shall be deemed to be the language chosen by the Parties to

express their mutual intent, and no rule of strict construction shall be

applied against any Party.

 

18.           Press Release.  Any press release or public announcement

regarding this Agreement or the termination of Executive’s employment shall be

in a form mutually acceptable to the Parties, except as required by law.

 

19.           Severability.  Should any provision of this Agreement

adjudged to any extent invalid by any court or tribunal of competent

jurisdiction or arbitrator, each provision shall be deemed modified to the

minimum extent necessary to render it enforceable.

 

*     *     *     *

 

 

7

 

IN WITNESS

WHEREOF, the Parties hereto have executed this Agreement on the day and year

first above written.

 

 

	

   

  	

  /s/ Daniel D. Davenport

  
	

   

  	

  Daniel D. Davenport

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  U-C HOLDING, L.L.C.

  
	

   

  	

   

  	

   

  
	

   

  	

  By: WILLIS STEIN &

  PARTNERS, L.P.

  
	

   

  	

  Its: Managing Member

  
	

   

  	

   

  	

   

  
	

   

  	

  By: Willis Stein &

  Partners, L.L.C.

  
	

   

  	

  Its: General Partner

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Avy H. Stein

  
	

   

  	

  Name:

  	

  Avy H. Stein

  
	

   

  	

  Its:

  	

  Managing Director

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  CTN MEDIA GROUP, INC.

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/ Neil H. Dickson

  
	

   

  	

  Name:

  	

  Neil H. Dickson

  
	

   

  	

  Its:

  	

  Chief Operating Officer

  

 

 

8

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