Document:

Retention Agreement - Belknap

 Exhibit 10.42 

 

 

 PRIMEDIA Inc. 
 3585 Engineering Drive 
 Norcross, GA 30092 

January 11, 2011 
 Mr. Keith Belknap

 Dear Keith: 
 On
behalf of PRIMEDIA Inc. (“PRIMEDIA”), we are pleased to offer you this retention agreement (this “Agreement”) to provide a financial incentive for you to remain employed with PRIMEDIA for the time and on the terms set forth
herein. The terms of our Agreement will be as follows: 
 1. Term. Except as otherwise set forth in this paragraph, the
term of this Agreement will be from the date you sign it until the six (6)-month anniversary of a Sale of PRIMEDIA (as defined below). The six (6)-month anniversary of a Sale of PRIMEDIA is referred to hereinafter as the “Payment Date.” If
a Sale of PRIMEDIA does not occur by December 31, 2011 or you separate from service with PRIMEDIA prior to the Payment Date other than as described in paragraph 4 below, this Agreement shall terminate without any payment to you of any amounts
hereunder. 
 2. Sale of PRIMEDIA. For purposes of this Agreement, “Sale of PRIMEDIA” means any transaction or
series of related transactions whereby securities of PRIMEDIA representing eighty percent (80%) or more of the total combined voting power of the outstanding securities of PRIMEDIA entitled to vote in the election of directors of PRIMEDIA are
sold to any single person or group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “1934 Act”)); or (b) all or substantially all of the assets or business of PRIMEDIA are disposed
of pursuant to a merger, consolidation or other transaction (unless the shareholders of PRIMEDIA immediately prior to such merger, consolidation or other transaction beneficially own, directly or indirectly, in substantially the same proportion as
they owned the voting stock of PRIMEDIA prior to such event, the voting stock or other ownership interests of the entity or entities, if any, that succeed to the assets or business of PRIMEDIA). 

3. Eligibility. You are eligible for a retention payment in the amount of $305,300.00 (the “Retention Payment”) in
accordance with paragraph 4 below. 
 4. Payment. Subject to paragraph 14 below, Retention Payment
will be payable to you in a single lump sum, net of applicable withholdings as described below, as soon as administratively practicable, but in no event later than two-and-one-half (2 1/2) months, after the earlier of (i) the Payment Date, provided
you remain employed continuously with PRIMEDIA from the date hereof until the Payment Date, or (ii) the date of your separation from service with PRIMEDIA, in the event you separate from service with PRIMEDIA prior to the Payment Date and you
are entitled upon such separation from service to, and you fulfill the terms and 

 
conditions to receive, the severance set forth in the Letter Agreement between PRIMEDIA and you, dated January 4, 2008. You are not entitled to be paid the Retention Payment under any other
circumstances. 
 5. Bonus. The Retention Payment, if any, is not in lieu of and does not replace any annual
discretionary or other bonus to which you may be entitled. 
 6. Waiver. Failure to insist upon strict compliance
with any term, covenant, or condition of this Agreement will not be deemed a waiver of such term, covenant, or condition, nor will any waiver or relinquishment of any right or power hereunder at any one or more times be deemed a waiver or
relinquishment of such right or power at any other time or times. 
 7. Taxes. PRIMEDIA may withhold from any amount
payable under this Agreement all income, employment, excise and other taxes that PRIMEDIA reasonably determines to be required pursuant to any law, regulation, or ruling. However, it is your obligation to pay all required taxes on any amount
provided under this Agreement, regardless of whether any withholding is required. 
 8. Source of Payments. The benefits
payable under this Agreement may be paid, at PRIMEDIA's sole discretion, from its general assets or from any other source. 
 9.
Confidentiality. Except to the extent otherwise required by law, you will not disclose, in whole or in part, any of the terms of this Agreement that are not publicly disclosed by PRIMEDIA pursuant to applicable securities filings or
otherwise. However, you may disclose the terms of this Agreement to your spouse or to your legal or financial adviser, provided that you take all reasonable measures to assure that he or she does not disclose the terms of this Agreement to any other
third party except as otherwise required by law or permitted herein. 
 10. Severability. The agreements contained herein
will each constitute a separate agreement independently supported by good and adequate consideration, and will each be severable from the other provisions of this Agreement. If it is determined that any term, provision, or portion of this Agreement
is void, illegal, or unenforceable, the other terms, provisions and portions of this Agreement will remain in full force and effect, and the terms, provisions, and portions that are determined to be void, illegal, or unenforceable will be limited so
that they will remain in effect to the extent permissible by law, or other similar provisions will be substituted, to the extent enforceable, so as to provide to PRIMEDIA, to the fullest extent permitted by applicable law, the benefits intended by
this Agreement. 
 11. Survival. The provisions of paragraphs 4 and 7 through 14 shall survive the termination of this
Agreement. 
 12. Entire Agreement. This Agreement sets forth the entire understanding between you and PRIMEDIA, and
supersedes all prior agreements and communications, whether oral or written, between you and PRIMEDIA with respect to the subject matter of this Agreement. This Agreement will not be modified except by written agreement of you and PRIMEDIA.

 13. Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective
successors, heirs (if applicable) and assigns. Rights or obligations of 

  
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PRIMEDIA under this Agreement may be, and may only be, assigned or transferred by PRIMEDIA pursuant to a merger or consolidation in which PRIMEDIA is the continuing entity, or the sale or
liquidation of all or substantially all of the assets of PRIMEDIA, provided that the assignee or transferee is the successor to all or substantially all of the assets of PRIMEDIA and such assignee or transferee assumes the liabilities, obligations
and duties of PRIMEDIA, as contained in this Agreement, either contractually or as a matter of law. None of your rights and obligations under this Agreement may be assigned or transferred by you other than your rights to the Retention Payment, which
may be transferred only by will or operation of law, provided that any Retention Payment due hereunder to you at the time of your death shall instead be paid to your designated beneficiary, if any, or, if no such beneficiary has been
designated and survives you, your estate. 
 14. Section 409A. 

(a) This Agreement is intended to be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), as a short-term deferral, and the terms of this Agreement shall be construed consistent with such intent. 

(b) Notwithstanding the foregoing, however, if any payment to which you are entitled under this Agreement is considered to be
“nonqualified deferred compensation” subject to Section 409A of the Code, such payment shall be paid and provided in a manner, and at such time and form, as complies with the applicable requirements of Section 409A of the Code to
avoid the unfavorable tax consequences provided therein for non-compliance. Neither you nor PRIMEDIA shall take any action to accelerate or delay the payment of any such amounts in any manner which would not be in compliance with Section 409A
of the Code. 
 (c) In the event you qualify as a “specified employee” for purposes of Section 409A(a)(2)(B)(i)
of the Code at the time of your separation from service, any payments to be made in connection with your “separation from service” (as determined for purposes of Section 409A of the Code) that constitute “nonqualified deferred
compensation” subject to Section 409A of the Code shall not be made until the earlier of (i) death or (ii) six (6) months after your separation from service (the “409A Deferral Period”) to the extent required by
Section 409A of the Code. Payments otherwise due to be made during the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A Deferral Period ends. 

(d) For purposes of this Agreement, termination of employment shall be construed consistently with a “separation from service”
within the meaning of Section 409A of the Code. 
 (e) Any payment to which you are entitled under this Agreement shall be
treated as a separate payment from any other amounts to which you may be entitled to the maximum extent permitted by Section 409A of the Code. 
 15. Effective Date. The terms of this Agreement are effective as of the date of this letter, and shall have no force or effect prior to such date. 

*        *        *      
  *        *        *        *        * 

  
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 PRIMEDIA believes that this offer provides you with a financial incentive to remain with PRIMEDIA. We hope
that you find that this Agreement provides you with an incentive to continue to perform your responsibilities in an exemplary manner through such time. Please indicate your acceptance of this Agreement by signing below and returning this Agreement
to me. 
  

			
	Very truly yours,
		
	By	 	 /s/ CHARLES STUBBS

	Charles Stubbs
	President and Chief Executive Officer

  

	
	ACCEPTED AND AGREED:
	
	 /s/ KEITH BELKNAP

	Keith Belknap

  
 - 4 -Third Amendment to Lease

 Exhibit 10.4 
 THIRD AMENDMENT TO LEASE 
 THIS THIRD AMENDMENT TO LEASE (this
“Amendment”) is made and entered into, and is effective, as of December 15, 2010 (the “Effective Date”), by and between BCSD PROPERTIES, L.P., a California limited partnership (successor to IRP Muller
Associates, LLC, a Delaware limited liability company and Aston Muller Associates, a California general partnership) (“Landlord”) and NEWPORT CORPORATION, a Nevada corporation (“Tenant”). All capitalized
terms not otherwise defined herein shall have the meaning ascribed to such terms as set forth in the Lease (as defined herein). 

R E C I T A L S: 

A. Landlord and Tenant are parties to that certain Lease Agreement dated for reference purposes only as of March 27, 1991, as
amended by those certain letter agreements dated March 28, 1991, and May 22, 1991, and as further amended by that certain First Amendment to Lease dated January 31, 2002, and that certain Second Amendment to Lease dated
September 28, 2004 (collectively, the “Lease”) pursuant to which Landlord leases to Tenant and Tenant leases from Landlord that certain real property located at 16700 Aston Street, 1771 Deere Avenue and 1791 Deere Avenue,
Irvine, California (collectively, the “Real Property”) together with the Improvements, all as more particularly described in the Lease. The Real Property and the Improvements are hereafter referred to collectively as the
“Premises.” 
 B. Landlord and Tenant desire to modify the Lease including extending the Term of the Lease and
modifying the Base Rent payable by Tenant under the Lease. 
 NOW, THEREFORE, for a valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties hereto agree as follows: 
 1. Extension of the Term.
Paragraph 2.2 of the Lease (Term) is hereby amended to provide that the Term of the Lease is extended until February 28, 2022, subject to further extension pursuant to the terms of Paragraph 3 of the Lease. 

2. Options to Extend. Section 3.1 of the Lease is hereby amended to provide that Tenant is hereby granted two
(2) options to extend the Term for a period of five (5) years each (the “Options to Extend”). Each Option to Extend will be excisable in the same manner as provided in Paragraph 3 of the Lease except that: (i) the
Base Rent and any annual rent increases during each of the Option to Extend periods will be one hundred percent (100%) of the Fair Market Rental Rate as determined in accordance with such Paragraph 3; and (ii) each Option to Extend may be
exercised no earlier than eighteen (18) months and no later than twelve months (12) months before the expiration of the Term, or the extended Term, if applicable. Such Options to Extend shall be in lieu of any extension options previously
granted under the Lease, and shall apply notwithstanding Tenant’s prior exercise of its first Option to Extend. 
 3.
Base Rent. The Base Rent under the Lease shall be modified as follows: 
  

					
	 Lease Period
	  	 	  	 Monthly Base Rent (based on 212,283 square feet)

			
	1/1/11 – 2/28/11	  		  	$0.60 per square foot - $127,369.80 (Current Term Base Rent Reduction)
	3/1/11 – 2/29/12	  		  	$0.60 per square foot - $127,369.80 (Current Term Base Rent Reduction)
	3/1/12 – 2/28/13	  		  	$0.60 per square foot - $127,369.80 (Start of 10-year Extension Term)
	3/1/13 – 2/28/14	  		  	$0.62 per square foot - $131,615.46
	3/1/14 – 2/28/15	  		  	$0.64 per square foot - $135, 861.12
	3/1/15 – 2/29/16	  		  	$0.66 per square foot - $140,106.78
	3/1/16 – 2/28/17	  		  	$0.68 per square foot - $144,352.44

					
	3/1/17 – 2/28/18	 		  	$0.70 per square foot - $148,598.10
	3/1/18 – 2/28/19	 		  	$0.72 per square foot - $152,843.76
	3/1/19 – 2/29/20	 		  	$0.74 per square foot - $157,089.42
	3/1/20 – 2/28/21	 		  	$0.76 per square foot - $161,335.08
	3/1/21 – 2/28/22	 		  	$0.80 per square foot - $169,826.40

 4.
Cash Consideration. Upon execution of this Amendment, as consideration of execution of this Amendment by Tenant, Landlord shall pay to Tenant the sum of One Million Two Hundred Fifty Thousand Dollars ($1,250,000). 

5. Tenant’s Performance of Maintenance Obligations. As required by the Lease, Tenant shall
continue to maintain the Premises. Additionally, Tenant shall perform the needed repairs and replacement of the following no later than December 31, 2013, more particularly identified in the report prepared by Michael J. Carson of
Grubb & Ellis Company and referenced in an email dated October 15, 2010 from Mr. Carson to Wade Tift and Kirby Greenlee of Grubb & Ellis Company (the “Required Repairs”) (Note: Paragraph 8.2 of the Lease
(Reimbursement for Unamortized Cost of Repairs) shall not apply to the Required Repairs). The estimated cost of the Required Repairs is One Million Six Hundred Thousand Dollars ($1,600,000). No later than thirty (30) days after completion of
all of the Required Repairs, but no later than each February 1st with respect to any Required Repairs completed since the previous report delivered to Landlord with respect to the Required Repairs, Tenant will submit to Landlord in writing the actual cost breakdown of
the completed Required Repairs: 
  

	 	(a)	Replacement of the HVAC: (i) control system; (ii) roof top Units; and (iii) boilers and expansion tanks; 

 

	 	(b)	Replacement of roof and skylights on the North Building; 

  

	 	(c)	Repair and/or replacement of all concrete and asphalt parking and site circulation areas; and 

 

	 	(d)	Repair and/or replacement of plumbing system components that are inefficient and/or not in compliance with law. 

6. New Tenant Improvements to Premises. In addition to the Required Repairs, Tenant intends to
make additional tenant improvements to the Premises in accordance with the Lease (the “Additional Tenant Improvements”). The estimated cost of the Additional Tenant Improvements is expected to be in excess of One Million Dollars
($1,000,000). No later than thirty (30) days after completion of all of the Additional Tenant Improvements, but no later than each February 1st with respect to any Additional Tenant Improvements completed since the previous report delivered to Landlord with
respect to the Additional Tenant Improvements, Tenant will submit to Landlord in writing the actual cost breakdown of the completed Additional Tenant Improvements. 
 7. Subordination, Non-Disturbance and Attornment Agreement. Without limiting Landlord’s obligations under Paragraph 19.3 of the Lease, Landlord shall deliver to Tenant, within thirty
(30) days following the execution of this Amendment by both parties, Subordination, Non-Disturbance and Attornment Agreements reasonably acceptable to Tenant from all ground lessors, mortgage holders or lien holders then in existence who have
not previously entered into such agreements with Tenant. 
 8. Holdover. The reference to “one hundred fifty
percent (150%)” in Paragraph 20 of the Lease is hereby revised to read “one hundred twenty-five percent (125%) and the reference to “thirty (30) days” in such paragraph is hereby revised to read “sixty
(60) days”. 

  
 2 

 9. Restoration of Premises at Termination. This will confirm that, with
respect to all Alterations previously made by Tenant currently in place at the Premises that were duly approved by Landlord in accordance with the Lease (the “Existing Alterations”), upon termination or expiration of the Lease,
Tenant shall not be obligated to remove from the Premises any of the Existing Alterations. Concurrently with the execution of this Amendment, Tenant is providing to Landlord copies of all requests to Landlord, and consents of Landlord, with respect
to the Existing Alterations. 
 10. Deletion of Nonapplicable Paragraphs. The following are hereby deleted in
their entirety from the Lease: (i) Paragraphs 1.2 (Condition and Delivery of the Premises); 2.4 (Early Entry into Premises), 4.2 (Consumer Price Index), 4.3 (Free Rent), 32 (Tenant’s Right to Terminate Lease) and 34 (Option to Purchase);
and (ii) Exhibit D. 
 11. Broker’s Commissions. The first two (2) sentences of Paragraph 37.5
(Brokers) of the Lease are hereby deleted in their entirety and the following is hereby substituted in lieu thereof: 

“Kirby Greenlee/Wade Tift of Grubb & Ellis solely represent Tenant, and Scott Read of Grubb & Ellis solely
represents Landlord. Each of the representatives from Grubb & Ellis (collectively, “Brokers”) shall be compensated by Landlord pursuant to separate written agreements between the parties.” 

12. Due Authority. Each of the signatories of the parties to this Amendment represent and warrant that they have the
authority to duly execute and deliver this Amendment on behalf of such party and that such party has duly authorized the execution, delivery and performance of this Amendment. 
 13. Counterparts; Signatures. This Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which taken together shall constitute
but one and the same Amendment. The exchange of copies of this Amendment and of signature pages by facsimile or other electronic transmission shall constitute effective execution and delivery of this Amendment by the parties. Signatures of the
parties transmitted by facsimile or other electronic means shall be deemed to be their original signatures for all purposes. 

14. Effect of Amendment. Except as expressly modified, altered or supplemented herein, all of the provisions of the Lease
remain in full force and effect and are hereby incorporated herein; provided, however, that in the event of any conflict between the provisions of the Lease and the provisions of this Amendment, the provisions of this Amendment shall
control. 
 [Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the parties hereto have duly executed this Third Amendment to Lease
effective as of the Effective Date. 
  

					
	LANDLORD
	
	BCSD PROPERTIES, L.P., a California limited partnership
		
	By:	 	BRINDERSON HOLDINGS COMPANY, a California corporation, General Partner
			
		 	By:	 	 /s/ Gary L. Brinderson

			
		 	Title:	 	 Chairman

	
	TENANT
	
	NEWPORT CORPORATION, a Nevada corporation
		
	By:	 	 /s/ Charles F. Cargile

		
	Title:	 	
Senior Vice President and Chief Financial Officer

  
 4

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