Document:

Exhibit  10.44

 

 

PRIMEDIA Magazines Inc.

c/o PRIMEDIA Inc.

745 Fifth Avenue

New York, New York 10151

 

 

March 22, 2004

 

Mr. Steven Parr

 

Dear Steve:

 

In connection with your employment with PRIMEDIA
Magazines Inc. (“PRIMEDIA”), this Letter Agreement (the “Letter Agreement”),
will constitute our agreement relating to amounts owing to you in connection
with the termination of your employment under certain circumstances as
described herein.

 

In the event that PRIMEDIA terminates your employment
without cause, we will pay you as severance an aggregate amount equal to 12
month’s base salary at the rate being paid on the date of termination, less
applicable withholdings, payable in bi-weekly installments on the regularly
scheduled payroll dates.

 

No severance payments whatsoever shall be payable upon
termination of your employment for cause. For purposes of this Letter
Agreement, “cause” shall include any act of dishonesty committed by you in
connection with your employment, substance abuse, conviction of a felony, behavior
injurious to the Company, the willful or repeated failure or refusal to perform
your duties or gross insubordination.

 

As consideration for the severance and benefits to be
provided to you pursuant to this Letter Agreement and as a condition to your
receipt of any payments hereunder, you agree to execute a separation and
release agreement in the form customarily being used by PRIMEDIA at the time of
your termination without cause.  Such
agreement will include a provision that you not compete with PRIMEDIA during
the period you are receiving severance payments.

 

The severance arrangements set forth above shall be in
lieu of and not in addition to any other severance policies of PRIMEDIA which
may be in effect generally from time to time.

 

Both parties agree that any disputes hereunder shall
be heard and determined by an arbitrator selected in accordance with the rules
and procedures of the American Arbitration Association in New York City and
that the arbitrator’s findings shall be final and binding on both parties
hereto.

 

This Letter Agreement and its validity,
interpretation, performance, and

 

 

 

enforcement shall be governed by the laws of the State of New York.

 

This Letter Agreement constitutes our entire agreement
supersedes all prior agreements between us which are of no further force and
effect. The provisions of this Letter Agreement may not be changed or waived,
except by a writing signed by you and PRIMEDIA.

 

 

	
   

  	
   

  	
   

  	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Michaelanne C.
  Discepolo

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Michaelanne C. Discepolo

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  EVP, Human Resources

  
								

 

AGREED AND ACCEPTED

 

	
  /s/ Steven Parr

  	
   

  
	
  Steven ParrExhibit 10.45

 

July 1, 2004

 

 

Mr. Steven Aster 

19 Spector Lane

Plainview, NY 
11803

 

Dear Steve:

 

Reference is made to your employment agreement with
PRIMEDIA Inc. (the “Company”) dated May 24, 2000 (the “Original Agreement”) and
June 27, 2002 (the “Second Agreement”). 
The purpose of this letter is to set forth the terms and conditions of
your employment with the Company from and after the date hereof.  Except to the extent specifically set forth
in this Agreement to the contrary and except with respect to the grant of stock
options, this Agreement supersedes the Original Agreement and the Second
Agreement.

 

1.                                       Services. 

 

a.             The Company hereby retains you, and you agree to
continue in the Company’s employ in a full-time capacity, as President of
Consumer Marketing of the PRIMEDIA Enthusiast Media Group (the “Group”), as
constituted from time to time, performing duties consistent with such
title.  You agree from time to time, upon
the request of the Company, and subject to your prior written approval, not to
be unreasonably withheld, to undertake additional management obligations.

 

b.             You shall devote substantially all of your attention,
business time and efforts to the business and affairs of the Group, provided
that nothing shall prohibit you from participating in charitable or educational
activities or the Board of Directors of other companies (provided such other
companies do not compete with the Group), provided such activities do not in
the aggregate materially interfere with the provision of services by you under
this Agreement.

 

2.                                       Term.

 

The Term of this Agreement shall Commence on the
date of this Agreement and shall expire on December 31, 2006 (the “Expiration
Date”), unless earlier terminated in accordance with Section 5 and Sections
7(a) or 7(b).

 

3.                                       Compensation. 

 

a.             Base Salary.  Subject to the other provisions of this
Agreement, you shall be paid an annual base salary equal to $475,000 commencing
on the date of this Agreement (the “Annual Base Salary”), subject to applicable
withholdings.

 

 

b.             Annual Bonus.  You shall participate in the Executive
Incentive Compensation Plan (“EICP”). 
Your 2004 Executive Incentive Compensation Plan letters dated June 16,
2004, June 23, 2004 and July 1, 2004 (which four letters are attached hereto as
Exhibit I) shall remain in full force and effect and will govern your 2004 EICP
Bonus.  You shall be a participant in the
EICP bonus program for 2005 and 2006. 
Your bonuses for 2005 and 2006 shall be determined in accordance with
the terms of your bonus letters to be delivered simultaneously with the bonus
letters of other executives of the Group relating to such years but shall
conform to the provisions of the last sentence of this clause.  For the purposes of this Agreement, your
“2004 Target Bonus” shall mean $500,000 and includes your Special Bonus.  For each of the 2005 and 2006 calendar years,
for the purposes of this Agreement and your 2005 and 2006 EICP bonuses, your
aggregate Annual Target Bonus shall be $250,000, (the “2005 Target EICP Bonus”
and the “2006 Target EICP Bonus”), of which, for each year, no less than
two-thirds or $187,500 shall relate to your duties as head of circulation of
the Group and of which $100,000 will be guaranteed.

 

c.             Special Bonus.  You shall be eligible for a Special Bonus for
calendar year 2004 payable in accordance with the terms of the letter attached
hereto as Exhibit II.

 

4.                                       Fringe Benefits
and Expenses.

 

a.             Fringe Benefits.  During the term of this Agreement, the
Company will provide you with benefits commensurate with those provided to
other executives of the Group.  You will
receive an annual car allowance of $11,280 payable in equal monthly
installments.

 

b.             Reimbursement of Business and
Other Expenses; Perquisites.  You are
authorized to incur reasonable expenses in carrying out your duties and
responsibilities under this Agreement, and the Group shall promptly reimburse
you for all reasonable business expenses incurred in connection with carrying
out the business of the Group, subject to documentation in accordance with the
Group policy.

 

5.                                       Early
Termination.  Your
employment hereunder:

a.             shall terminate
upon your death (“Death”);

b.             may be terminated
by the Company or the Group on written notice to you upon your “Permanent
Disability”;

c.             may be terminated by the Company or the Group on written
notice to you for “Cause” and shall terminate on the date you voluntarily leave
the Group employ, if prior to the Expiration Date (“For Cause or Voluntary”);

d.             may be terminated
by the Company or Group upon written notice to you without cause (“Without
Cause”);

e.             As used herein,
“Permanent Disability” shall mean a physical or mental disability which renders
you unable to perform your duties hereunder in a reasonably professional manner
provided you have failed to perform such duties as a result of such disability
for an aggregate period of six months in any 12 consecutive month period during
the Term.  Permanent Disability shall be
determined by the opinion of at least two of three doctors associated with
major hospitals in Manhattan practicing in the field to which the disability
relates and selected by the Company or the Group acting reasonably.

 

 

 

f.              As used herein,
“Cause” shall mean (i) any substantial breach or non-observance of any of your
material obligations as set forth herein, (after reasonable advance written
notice and a reasonable opportunity to cure such breach or non-observance),
(ii) the immoderate use of alcohol by you on a habitual basis to the detriment
of the Company or the Group (after reasonable advance written notice and a
reasonable opportunity to cease such use), (iii) the illegal use of narcotics
or drugs by you (after reasonable advance written notice and a reasonable
opportunity to cease such use), (iv) willful and repeated absence from the
business for any unreasonable period of time, without leave (after reasonable
advance written notice and a reasonable opportunity to cease such repeated
absences), and (v) willful and repeated failure or refusal to perform your
duties hereunder which failure or refusal continues following reasonable
advance written notice to you specifying such failure or refusal and a
reasonable opportunity to cure such failure or refusal.

g.             As used herein,
“Date of Termination” shall mean the date of your death or effective date of your
termination under Sections 5(b), (c), (d) or Sections 7(a) or (b).

 

6.                                       Compensation
Upon Termination.  In the
event that your employment shall terminate:

a.             Pursuant to Section 5(a) “Death” or 5(b) “Permanent
Disability”, you or your estate shall be entitled to receive (i) all accrued
and unpaid salary at the Annual Base Salary rate through the Date of
Termination, plus (ii) (A) if the termination occurs in 2004, 2004 Annual
Target Bonus ($500,000) multiplied by a fraction, the numerator of which is the
number of days to the Date of Termination from the start of either calendar
year during which the Date of Termination occurs and the denominator of which
is 365 (the “Fraction”) and (B) if the termination occurs in either 2005 or
2006, $250,000 multiplied by the Fraction.

b.             Pursuant to Section
5(c) “For Cause or Voluntary”, you shall be entitled only to receive your
accrued and unpaid salary at the Annual Base Salary rate through the Date of
Termination.

c.             Pursuant to Section
5 (d) “Without Cause” on or prior to the Expiration Date, you shall be entitled
to receive the greater of (i) (A) your Annual Base Salary, to the extent
unpaid, through the Expiration Date, plus (B) your Annual Target Bonus for each
complete (to the extent not paid) and incomplete calendar year through the
Expiration Date, plus (C) your car allowance and fully paid COBRA or amounts in
lieu of COBRA for the period from the Date of Termination to the Expiration
Date, or (ii) an amount equal to your Annual Base Salary of $475,000.  Notwithstanding the foregoing, you shall be
entitled to receive your earned EICP bonus for each full calendar year through
and after the Date of Termination.  All
payments shall be made in a lump sum, on the earlier of ten (10) days after the
Date of Termination or if the payment is not then determinable, within ten (10)
days after it is determinable.

d.             (i) In the event
the Company or Group terminates your employment after the Expiration Date
without Cause, and you and the Company have not entered into a new agreement
but you have continued in the employ of the Group or the Company, you will be
entitled to an amount equal to (i) your accepted and unpaid salary at the rate
then in effect, plus any EICP bonus earned but unpaid which shall be paid in a
lump sum within ten (10) days of your termination, plus (ii) the Annual Base
Salary of $475,000, payable bi-weekly, commencing upon the execution of a
Separation and Release Agreement (“S&R”), in the form attached hereto as
Exhibit III.  The parties agree that
nothing in such S&R shall lessen your rights or benefits under this
Agreement.

                (ii) It is further
understood that in the event, that on or prior to the Expiration Date you and
the Company have not extended this Agreement or entered into a new agreement
covering your employment after the Expiration Date and the Company has not
offered to continue your employment 

 

 

 

on
an at-will basis after the Expiration Date on terms at least as favorable to
you as provided for in 2006 (with the exception that there need be no portion
of your EICP bonus guaranteed), you are not required to accept such continued
employment and, if you do not do so, you will then be entitled to the
compensation provided for under paragraph 6( c) as if your employment was
terminated Without Cause on the Expiration Date.

e.             In the event of any
termination, you shall be paid all other amounts or benefits due under any
fringe benefit or other plans or arrangement plans in which you then
participate in accordance with the terms thereof then in effect.

f.              In the event of a
conflict between the terms of this Agreement and the Exhibits, the terms of
this Agreement shall control.  For
example, bonuses or other amounts payable in accordance with Sections 6 and 7
of this Agreement shall be paid even though your employment has terminated and
notwithstanding anything contained in the Exhibits to the contrary, you do not
have to be an employee of the Company or the Group on the date a payment is
made in order to qualify for any payment payable pursuant to the terms of this
Agreement.

 

7.                                       Change in
Status.

 

Notwithstanding any other provision of this
Agreement to the contrary:

 

a.             In the event more than half of the
Group is sold in a transaction or series of transactions (a “Material Sale”),
then you will have the right to terminate this Agreement and your employment on
60 days’ prior written notice to the Company and you will be paid (i) your
Annual Base Salary through December 31, 2005 and 2004 and 2005 Annual Target
Bonuses (if the Material Sale occurs on or before December 2005), and (ii) your
Annual Base Salary through December 31, 2006, to the extent unpaid, plus your
2004, 2005 and 2006 Annual Target Bonuses to the extent unpaid (if the Material
Sale occurs after December 31, 2005).  A
“Material Sale” shall mean that magazines representing more than half the
revenues of the Group during the immediately preceding calendar year have been
sold.

b.             If substantially (i) all of the assets or capital stock
of all businesses constituting the Group or (ii) substantially all of the
assets or the capital stock of the Company are sold, this Agreement will be
assigned as part of the sale.  However,
if during the Term of this Agreement following the sale, you are required to
work outside of Manhattan (the “Move”), you shall have the right to voluntarily
terminate your employment upon sixty (60) days’ prior written notice.  Upon such termination, you shall be paid
within ten (10) days in a lump sum amounts calculated in accordance with
Section 6 (a) above plus an amount equal to the Annual Base Salary.  If, however, you remain in the employ of the
sold company through the earlier of first anniversary of the sale date or
December 31, 2006, in addition to all other benefits under this Agreement, you
will be entitled to receive an amount equal to the Annual Base Salary payable
in a lump sum within ten (10) days after such date.

c.             In the event this
Agreement is assigned in accordance with the Section 7(b) above, the Company
guarantees the payments to you under Section 7(b) above.

 

8.                                       Agreement Not
to Compete or Solicit to Hire; Confidentiality.

 

a.             Non-Compete and Non-Hire.  You agree that you will comply with the
provisions of the Non-Compete Undertaking and Non-Hire Undertaking set forth in
clauses (b) and (c) below.  If (i) 

 

 

 

your employment terminates
under Section 5 (c) through the period of compliance shall be the later of (A)
the Expiration Date or (B) twelve months following the Date of Termination, or
if (ii) your employment terminates under Section 5 (d) the compliance period
shall be through the later of (A) the Expiration Date or (B) twelve months
following your Date of Termination, or if (iii) your employment terminates
after the Expiration Date and you are eligible for payments under Section 6 (d)
the compliance period shall be for the twelve months after the date your
employment terminates, and (iv) the compliance period shall be through the Date
of Termination, if your employment terminates under any other provision of this
Agreement.

 

b.             Non-Compete Undertaking.  You agree not to accept employment with or
provide services to any person, firm or corporation that competes with the
Group.  It is understood and agreed that
the foregoing sentence restricts you only from providing services to a person,
firm or corporation which publishes magazines which directly and significantly
compete with magazines published by the Company during the last six months of
your employment hereunder in any of the following fields:  Automobiles, Outdoor Sports, Action Sports,
Boating, Equine, Scrapbooking and other Crafts.

 

c.             Non-Hire Undertaking.  You agree not to for yourself or for and on
behalf of any person, firm or corporation for which you provide services,
solicit for employment or hire any employee who was also employed by the Group
or any of its subsidiaries during the last six months of your employment
hereunder.

d.             Nothing contained
in this Section 8 shall prohibit you from owning less than 5% of the equity
securities of any company as a passive investor.

e.             Confidentiality. 

(i)            You agree that you will not, at any
time during the term of this Agreement or thereafter, disclose or use any trade
secret, proprietary or confidential information of the Group or any subsidiary
or affiliate of the Company which information is not in the public domain,
obtained during the course of your employment, except as required in the course
of such employment or with the written permission of the Group or, as
applicable, any subsidiary or affiliate of the Group or as may be required by
law, provided that, if you receive legal process with regard to disclosure of
such information, you shall promptly notify the Group and cooperate with the
Group in seeking a protective order.

(ii)           You agree that at
the time of the termination of your employment hereunder, whether at your
instance or the Group’s instance, and regardless of the reasons therefor, you
will deliver to the Group, and not keep or deliver to anyone else, any and all
notes, files, memoranda, papers and, in general, any and all physical matter containing
information, including any and all documents significant to the conduct of the
business of the Group or any subsidiary or affiliate of the Group which are in
your possession, except for (A) any documents for which the Group or any
subsidiary or affiliate of the Group has given written consent to removal at
the time of the termination of employment, and (B) your personal rolodex,
personal files, phone book and similar items.

f.              Remedies.  You agree that the Company’s remedies at law
would be inadequate in the event of a breach or threatened breach of this
Section 8; accordingly, the Company shall be entitled, in addition to its
rights at law, to seek an injunction and other equitable relief without the
need to post a bond.  You also
acknowledge and agree that the payments being made to you under Sections 6 (c)
and (d) of this Agreement beyond the Expiration Date of the Agreement are good,
valid and adequate consideration for your Non-Compete and Non-Solicitation
Undertaking set forth in this Section 8.

 

 

 

9.                                       Governing Law.  This Agreement shall be governed and
interpreted and enforced in accordance with the laws of the State of New York
applicable to agreements made and to be performed in the State of New York.

10.                                 Notices.  Any notice required or desired to be served,
given or delivered hereunder shall be in writing, and shall be deemed to have
been validly served, given or delivered (i) five business days after deposit in
the United States mails, with proper postage prepaid, whether by air, first class,
registered or certified mail, (ii) one business day after being deposited with
an overnight courier with all charges prepaid, or (iii) when delivered, if
hand-delivered by messenger, all of which shall be properly addressed to the
party to be notified and sent to the address indicated as follows:

 

	
   

  	
  If to the Company:

  	
   

  	
  PRIMEDIA
  Inc.

  
	
   

  	
  PRIMEDIA
  Magazines

  	
   

  	
  745
  Fifth Avenue

  
	
   

  	
  and
  Media Group

  	
   

  	
  New
  York, NY 10151

  
	
   

  	
   

  	
   

  	
  Attn:
  General Counsel

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  If
  to you:

  	
   

  	
  To
  address first above written

  

 

or to such other address as such party may
specify to the other in writing in accordance with the provisions hereof.

 

11.                                 Miscellaneous.

 

a.             Waiver.  Waiver by either party of a breach of any
provision of this Agreement by the other party shall not operate or be
construed as a waiver of any subsequent breach by such waiving party.

b.             Assignment.  This Agreement shall not be assignable by
either party except in accordance with the provisions of Section 7(b).

c.             Entire Agreement.  This instrument contains the entire agreement
and understanding of the parties hereto except for such further provisions as
may be set forth in the By-laws or Certificate of Incorporation of the Company
or the Company stock option plan or any stock option agreement between you and
the Company.  It may not be changed
except by an agreement in writing signed by you and the Company.

d.             Enforceability.  If any term, condition or provision of this
Agreement shall be declared, to any extent, invalid or unenforceable, the
remainder if the Agreement, other than the term, condition or provision held
invalid or unenforceable, shall not be affected thereby and shall be considered
in full force and effect and shall be valid and be enforced to the fullest
extent permitted by law.

e.             Captions.  The captions set forth in this Agreement are
used solely for convenience or reference and shall not control or affect the
meaning or interpretation of any of the provisions.

f.              Counterparts.  This Agreement may be signed in any number of
counterparts each of which shall be deemed an original.

g.             Withholdings.  Not withstanding anything contained in this
Agreement, all amounts payable hereunder to you shall be subject to applicable
withholdings.

h.             No Mitigation/No
Offset.  It is agreed and understood
that in the event of the 

 

 

 

termination
of your employment under this Agreement, you shall be under no obligation to
seek other employment and there shall be no offset against amounts due you on
account of any remuneration attributable to any subsequent employment you may
obtain.

If you are in agreement with the foregoing, please
sign the enclosed copy of this Agreement and return a copy to the undersigned.

 

	
   

  	
  PRIMEDIA Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Beverly C.
  Chell

  	
   

  
	
   

  	
  Title: Vice Chairman

  

 

 

AGREED TO AND ACCEPTED:

 

 

 

	
    /s/ Steven R. Aster

  	
   

  
	
  By: Steven R. Aster

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