Document:

Severance Amendment - Belknap

 Exhibit 10.33(b) 

 

 

 PRIMEDIA Inc. 
 3585 Engineering Drive 
 Norcross, GA 30092 

January 11, 2011 
 Mr. Keith Belknap

 Dear Keith: 
 This
letter agreement supplements the letter agreement between PRIMEDIA Inc. (“PRIMEDIA”) and you, dated January 4, 2008 (as amended, your “Agreement”), relating to certain severance to which you may become entitled in connection
with your separation from service from PRIMEDIA. 
 Additional Amount. In the event you separate from
service from PRIMEDIA and are entitled to the severance set forth in your Agreement, you also shall be entitled to receive the sum of (i) the amount equal to your annual target bonus for the year in which you separate from service from PRIMEDIA
and (ii) the amount equal to your annual target bonus for the year in which you separate from service multiplied by a fraction, the numerator of which is the number of days you were employed for such year before your separation from service and
the denominator of which is the number of days in such year; which total amount (the “Additional Amount”) will be paid in a single lump sum, net of applicable withholdings, as soon as administratively practicable after the effective date
of the release of claims you are required to sign as a condition to your receipt of severance under your Agreement (but in no event later than two and one-half
(2 1/2) months after you separate from service
from PRIMEDIA). 
 Notwithstanding the foregoing, the Additional Amount to which you may become entitled under this
letter agreement is subject to the same terms and conditions as the severance provided under your Agreement, including, without limitation, the execution and delivery of an effective release of claims within forty-five (45) days after you
separate from service from PRIMEDIA and the failure to revoke same within seven (7) days after you sign it. If you do not satisfy such terms and conditions, the severance under your Agreement and your Additional Amount under this letter
agreement shall become null and void, and you will not be entitled to any such payments. 
 Section 409A. It is the
intent of PRIMEDIA that any payment to which you are entitled under your Agreement and this letter agreement be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to the maximum extent permitted
under Section 409A of the Code. However, if any such amounts are considered to be “nonqualified deferred compensation” subject to Section 409A of the Code, such amounts 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 amounts in any manner which would not be in compliance with Section 409A of the Code. 
 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) your 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 in installments or periodically
during the 409A Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A Deferral Period ends, and the balance of the payment shall be made as otherwise scheduled. 

For purposes of your Agreement and this letter agreement, all rights to payments shall be treated as rights to receive a series of
separate payments to the fullest extent allowed by Section 409A of the Code. To the extent that some portion of the payments under your Agreement and/or this letter agreement may be bifurcated and treated as exempt from Section 409A of the
Code under the “short-term deferral” or “separation pay” exemptions, then such amounts may be so treated as exempt from Section 409A of the Code. 

Notwithstanding the foregoing, it is intended that (i) the Additional Amount payable to you under the second
paragraph of this letter agreement shall be paid no later than two and one-half (2 1/2) months following the date you separate from service and thus should qualify as exempt from Section 409A of the Code as a “short-term deferral” and (ii) the severance payable to
you under your Agreement shall either (A) qualify as exempt under the “short-term deferral” exemption to the extent paid within two and one-half
(2 1/2) months after the end of the year in
which you separate from service or (B) qualify as exempt under the “separation pay” exemption to the extent such severance will be paid solely upon your involuntary separation from service (as defined in Treas. Reg.
§1.409A-1(n)), shall not exceed two times the lesser of (1) your annualized compensation (based upon the annual rate of pay for services provided for the taxable year preceding the taxable year in which you have a separation from service
and subject to increases that were expected to continue indefinitely if you had not separated from service) or (2) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the
year in which you separate from service (which for 2010 was $245,000) and will be paid in all events within two (2) years following the end of the year in which you separate from service. To the extent the “separation pay” exemption
applies, the amounts covered by the exemption shall be the amounts paid earliest in time that would be subject to Section 409A of the Code notwithstanding the “separation pay” exemption. 

  
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 For purposes of your Agreement and this letter agreement, termination of employment will be
construed consistently with a “separation from service” within the meaning of Section 409A of the Code. 
  

			
	Very truly yours,
		
	By	 	 /s/ CHARLES STUBBS

	Charles Stubbs
	President and Chief Executive Officer

  

	
	ACCEPTED AND AGREED:
	
	 /s/ KEITH BELKNAP

	Keith Belknap

  
 - 3 -Retention Agreement - Stubbs

 Exhibit 10.39 

 

 

 PRIMEDIA Inc. 
 3585 Engineering Drive 
 Norcross, GA 30092 

January 11, 2011 
 Mr. Charles Stubbs

 Dear Charles: 
 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 $1,250,000.00 (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 Section 10 (d) of the Employment Agreement between PRIMEDIA and you, dated April 21, 2008 (the “Employment Agreement”).
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, together with Section 10(f)(vi) of the Employment Agreement, which Section is
incorporated herein by this reference, 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. 

  
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 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 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/ KEITH BELKNAP

	Keith Belknap
	General Counsel

  

	
	ACCEPTED AND AGREED:
	
	 /s/ CHARLES STUBBS

	Charles Stubbs

  
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