Document:

Exhibit 10.12

 

RESTRICTED
STOCK AGREEMENT

 

THIS RESTRICTED STOCK AGREEMENT (as it may be amended from time to time, the “Agreement”),
dated as of June 30, 2006 (the “Grant Date”), between Dayton Superior
Corporation, an Ohio corporation (the “Company”), and Raymond E.
Bartholomae (the “Executive”). Certain capitalized terms used herein and
not otherwise defined shall have the meaning ascribed to such terms in Section
13.

 

WITNESSETH:

 

The Executive is a key employee of the Company;

 

The Executive and the Company have previously entered
into that certain employment agreement, dated as of August 13, 2003, as amended
December 15, 2005 (as it may be further amended from time to time, the “Employment
Agreement”); and

 

The Company desires to encourage the Executive to
remain employed by the Company and to contribute to the success of the Company
by transferring to the Executive shares of common stock of the Company, subject
to the restrictions and conditions contained in this Agreement.

 

In consideration of services to be rendered to
the Company, which the parties agree exceeds the aggregate par value of the
shares of common stock of the Company subject to the Restricted Shares (as
defined in Section 1) and the other mutual covenants and agreements
herein contained, and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, and intending to be legally
bound hereby, the parties hereto agree as follows:

 

1.             Award of
Restricted Shares. Subject to the terms and conditions set forth in
this Agreement, the Company hereby issues to the Executive a total of 116,039
shares (the “Restricted Shares”) of the Company’s common stock, without
par value (“Common Stock”), for the consideration set forth above. The
purchase price of the Restricted Shares is zero dollars ($0.00) per share. For
purposes of this Agreement, “Restrictions” shall mean the restrictions
and conditions set forth in Section 2 and Section 3, as
applicable, with respect to the Restricted Shares and the Retained Distributions
(as defined in Section 2(a)(ii)). The Company shall cause the Restricted
Shares to be issued and a stock certificate or certificates representing the
Restricted Shares to be registered in the name of the Executive promptly upon
execution of this Agreement, but the stock certificate or certificates shall be
delivered to, and held in custody by, the Company until such time or times that
the Restrictions have lapsed pursuant to Section 3. On or before the
date of execution of this Agreement, the Executive shall deliver to the Company
one or more stock powers endorsed in blank relating to the Restricted Shares,
which will permit transfer to the Company of all or any portion of the
Restricted Shares and any securities constituting Retained Distributions that
shall be forfeited or that shall not become vested in accordance with this
Agreement.

 

2.             Restrictions.

 

(a)           The Executive shall have all rights and
privileges of a stockholder of the Company with respect to the Restricted
Shares, including voting rights and the right to receive dividends paid with
respect to such shares, except that, until such time or times as the
Restrictions have lapsed pursuant to Section 3, the following provisions
shall apply:

 

 

(i)            The Executive shall not be entitled to delivery
of the certificate or certificates for any of the Restricted Shares until the
Restrictions have lapsed with respect thereto pursuant to Section 3;

 

(ii)           The Company will retain custody of all cash
dividends and other distributions (“Retained Distributions”) made or
declared with respect to the Restricted Shares (and such Retained Distributions
will be subject to the Restrictions and the other terms and conditions under
this Agreement that are applicable to the Restricted Shares) until such time,
if ever, as the Restricted Shares with respect to which such Retained
Distributions shall have been made, paid or declared shall have become vested,
and such Retained Distributions shall not bear interest or be segregated in
separate accounts;

 

(iii)          The Restricted Shares may not be sold,
transferred, assigned, pledged or otherwise encumbered or disposed of by the
Executive before the Restrictions have lapsed pursuant to Section 3; and

 

(iv)          The Restricted Shares and Retained
Distributions shall be subject to forfeiture upon termination of the Executive’s
employment with the Company to the extent set forth in Section 3(c) and
upon the breach of any of the terms or conditions of this Agreement.

 

(b)           Any attempt to dispose of Restricted Shares
in a manner contrary to the Restrictions or any other written agreement to
which the Company and the Executive are parties shall be ineffective.

 

3.             When
Restrictions Lapse.

 

(a)           Subject to
Section 3(b), Section 3(c) and Section 3(d), the
Restricted Shares shall vest and the Restrictions shall lapse with respect to
25% of the Restricted Shares on December 31 of the calendar year in which an
Initial Public Offering occurs (the “IPO Year”) and on December 31 of
each of the first three calendar years following the IPO Year (each such
December 31, an “IPO Vesting Date”); provided that the
Executive remains continuously employed with the Company from the Grant Date
through the applicable IPO Vesting Date.

 

(b)           Notwithstanding
Section 3(a), but subject to Section 3(c) and Section 3(d),
all Restricted Shares shall vest and all Restrictions shall lapse with respect
to all of the Restricted Shares (to the extent not already vested or lapsed
pursuant to Section 3(a)) immediately prior to (and subject to the
consummation of) a Change in Control (the effective date of such Change in
Control, the “CIC Vesting Date”); provided that such Change in Control
results in the Principal Stockholders receiving Proceeds in an amount that,
when aggregated with all Proceeds received by the Principal Stockholders in
connection with any Initial Public Offering or any secondary public offering
occurring prior to the CIC Vesting Date, is greater than or equal to the Target
Amount; and, provided further that the Executive remains continuously
employed with the Company from the Grant Date through the CIC Vesting Date.

 

(c)           If, prior
to any IPO Vesting Date or the CIC Vesting Date, the Executive’s employment
with the Company is terminated (i) by reason of the Executive’s death or (ii)
by the Company for any reason other than (A) for Cause (as defined in the
Employment Agreement), (B) for the Executive’s insubordination or failure to
carry out any lawful directive of the Company’s Chief Executive Officer or the
Board of Directors of the Company (the “Board”) or (C) for the Executive’s
failure to satisfactorily perform his duties or responsibilities with the
Company (each as determined by the Board in its sole discretion), then,
effective the business day immediately prior to the effective date of such
termination of employment, the Restricted Shares shall vest and the
Restrictions shall lapse with respect to all of the Restricted Shares (to the
extent not already vested or lapsed pursuant to Section 3(a) or Section
3(b)).

 

2

 

(d)           If, prior
to an IPO Vesting Date or the CIC Vesting Date, the Executive’s employment with
the Company is terminated either by the Executive or by the Company for any
reason other than as set forth in Section 3(c), then following the date
of such termination of employment no Restrictions shall lapse with respect to
any Restricted Shares and no such Restricted Shares shall become vested. Any
Restricted Shares that remain subject to the Restrictions as of the effective
date of the Executive’s termination of employment (to the extent not already
vested or lapsed pursuant to Section 3(a), Section 3(b), or Section
3(c)) shall thereupon be forfeited without further action by the Company.

 

4.             Issuance
of Stock Certificates for Shares. The stock certificate or
certificates representing the Restricted Shares shall be issued promptly
following the execution of this Agreement and shall be delivered to the
Corporate Secretary or such other custodian as may be designated by the
Company, to be held by the Company until the Restrictions have lapsed under Section
3. Such stock certificate or certificates shall bear the following (or
substantially equivalent) legend:

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”),
OR THE SECURITIES LAWS OF ANY JURISDICTION. SUCH SECURITIES MAY NOT BE OFFERED,
SOLD, OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT PURSUANT TO
(I) A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES THAT IS EFFECTIVE
UNDER SUCH ACT OR APPLICABLE STATE SECURITIES LAW, OR (II) ANY EXEMPTION
FROM REGISTRATION UNDER SUCH ACT, OR APPLICABLE STATE SECURITIES LAW, RELATING
TO THE DISPOSITION OF SECURITIES, INCLUDING RULE 144, PROVIDED AN OPINION OF
COUNSEL IS FURNISHED TO THE COMPANY, IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE ACT AND/OR APPLICABLE STATE SECURITIES LAW IS
AVAILABLE. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF THE MANAGEMENT STOCKHOLDERS’
AGREEMENT,  EFFECTIVE AS OF JUNE 16,
2000, AMONG THE COMPANY, ODYSSEY INVESTMENT PARTNERS FUND LP, AND CERTAIN
EMPLOYEE STOCKHOLDERS PARTY THERETO (AS MAY BE AMENDED FROM TIME TO TIME), A
COPY OF EACH OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY, AND THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED, SOLD,
ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH TRANSFER,
SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES WITH THE
PROVISIONS OF SUCH AGREEMENTS.

 

Once
the Restrictions have lapsed with respect to the Restricted Shares, upon the
written request of the Executive, a stock certificate or certificates for such
Restricted Shares shall be returned and exchanged for new stock certificates
for the Restricted Shares (which may bear the foregoing legend or such other
legend(s) as the Company may deem to be necessary or appropriate). Upon the
written request of the Executive, the certificates representing the newly
vested shares shall be delivered to the Executive (or to the person to whom the
rights of the Executive shall have passed by will or the laws of descent and
distribution) promptly after 

 

3

 

the
date on which the Restrictions have lapsed but not before the Executive has
made any tax payment to the Company or made other arrangements for tax
withholding, as required by Section 5(a).

 

5.             Taxation.

 

(a)           Whenever the Restrictions lapse with respect
to the Restricted Shares pursuant to Section 3, the Company shall notify
the Executive of the amount of any tax which must be withheld by the Company
under all applicable federal, state and local tax laws. The Executive agrees to
make arrangements with the Company to (i) remit a cash payment of the required
amount to the Company or (ii) to authorize the deduction of such amount from
the Executive’s compensation. No new certificate shall be delivered to the Executive
or his legal representative unless and until the Executive or his legal
representative shall pay to the Company the full amount of all federal and
state withholding or other taxes applicable to the taxable income to the
Executive resulting from the grant of the Restricted Shares or the lapse or
removal of the Restrictions.

 

(b)           The Executive has reviewed with his own tax
advisors the federal, state, local and foreign tax consequences of the
transactions contemplated by this Agreement. The Executive is relying solely on
such advisors and not on any statements of the Company or any of its agents. Except
as provided below, the Executive understands that he (and not the Company)
shall be responsible for his own tax liability that may arise as a result of
the transactions contemplated by this Agreement. The Executive understands that
it may be beneficial in certain circumstances to elect to be taxed as of the
Grant Date rather than when the Restrictions lapse by filing an election under
Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”),
with the Internal Revenue Service within 30 days from the Grant Date. EXECUTIVE
ACKNOWLEDGES THAT IT IS HIS RESPONSIBILITY AND NOT THE COMPANY’S TO TIMELY FILE
THE ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF HE REQUESTS THE COMPANY
OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS BEHALF. The Executive
acknowledges that nothing in this Agreement constitutes tax advice.

 

6.             Stockholders
Agreement. The Executive acknowledges and agrees that (a) as a
condition precedent to receiving the Restricted Shares, the Executive has
executed the Stockholders Agreement, in substantially the form attached hereto
as Schedule I; and (b) notwithstanding any other provision of this
Agreement, all Restricted Shares shall be subject to the terms and conditions
of the Stockholders Agreement.

 

7.             Securities
Laws. The Company may from time to time impose any conditions on
the transfer of the Restricted Shares as it deems necessary or advisable to
ensure that any transfers of the Restricted Shares granted hereunder will
satisfy the applicable requirements of federal and state securities laws. Such
conditions to satisfy applicable federal and state securities laws may include,
without limitation, the partial or complete suspension of the right to transfer
the Restricted Shares until the Restricted Shares have been registered under
the Securities Act of 1933 as amended, or until such transfer may, in the
opinion of counsel acceptable to the Company, be made without registration
pursuant to an applicable exemption therefrom. The Executive hereby represents,
warrants and agrees as follows, and acknowledges that the Company is relying on
the same in issuing, the Restricted Shares:

 

(a)           The Executive is entering into this Agreement
solely on the basis of his own familiarity with the Company and all relevant
factors about the Company’s affairs and the Company has not made any express or
implied representations, covenants or warranties to the Executive with respect
to such matters.

 

(b)           The Executive has read this Agreement and has
been advised or has had the opportunity to be advised by his own legal counsel
as to the consequences of entering into this Agreement.

 

4

 

(c)           The Executive has had access to all
documents, records and books pertaining to the Company or in any way relevant
to the investment in the Restricted Shares and has the opportunity to ask
questions of, and receive answers from, the Company and its officers and
directors concerning the terms and conditions of the transactions contemplated
by this Agreement and the merits and risks of an investment in the Restricted
Shares.

 

(d)           The Executive has knowledge and experience in
financial and business matters so as to be capable of evaluating the merits and
risks of an investment in the Restricted Shares.

 

(e)           The Executive is acquiring the Restricted
Shares for his own account with investment intent and not with a view to the
resale or distribution of all or any part of such shares.

 

(f)            The Executive agrees that the Company may
impose additional restrictions on the sale, pledge or other transfer of the
Restricted Shares if, in the sole discretion of the Company and its counsel,
such restrictions are necessary and desirable in order to achieve compliance
with the provisions of federal or state securities laws.

 

(g)           The Executive is an “accredited investor,” as
defined in Rule 501(a) under the Securities Act of 1933, as amended.

 

8.             No Effect
on Employment. Neither this Agreement nor the Restricted Shares
granted hereunder shall confer upon the Executive any right to continued
employment with the Company or any subsidiary thereof, and shall not in any way
modify or restrict the Company’s or such subsidiary’s right to terminate such
employment.

 

9.             Adjustments. If the
outstanding shares of the Common Stock of the Company are increased, decreased,
changed into or exchanged for a different number of kind of shares or
securities of the Company through (a) a distribution or payment of a dividend
on the Common Stock in shares of Common Stock, (b) subdivision of
reclassification, in a stock split or similar transaction, of the outstanding
shares of Common Stock into a greater number of shares, (c) combination or
reclassification of, in a reverse stock split or similar transaction, the
outstanding shares of Common Stock into a lesser number of shares, or (d)
issuance of any shares of capital stock by reclassification of the Common
Stock, then an appropriate and proportionate adjustment shall be made in the
number and kind of Restricted Shares. Adjustments made pursuant to this Section
9 shall be made by the Board effective as of the occurrence of any of the
events described in Sections 9(a) through (d), above, whose
determination as to what adjustments shall be made, and the extent thereof,
shall be final, binding and conclusive.

 

10.           Notices. All
notices or other communications under this Agreement shall be given in writing
and shall be deemed duly given and received on the third full business day
following the day of the mailing thereof by registered or certified mail or
when delivered personally or sent by facsimile transmission as follows:

 

(a)           If to the Company, to:

 

Dayton Superior Corporation

7777 Washington Village Drive, Suite 130 

Dayton, OH 45459

Attention:  Vice President, Corporate
Accounting

 

With
copies to:

 

5

 

Odyssey Investment Partners
Fund 

c/o Odyssey Investment Partners, LLC

21550 Oxnard Street, Suite 570

Woodland Hills, CA 91637

Attention:  William F. Hopkins

 

Odyssey Investment Partners
Fund 

c/o Odyssey Investment Partners, LLC

280 Park Avenue, 38th Floor

New York, NY 10017

Attention:  Douglas Rotatori

 

or
at such other place as the Company shall have designated by notice as herein
provided to the Executive; and

 

(b)           If to the Executive at the address of the
Executive as it appears in the Company’s records or at such other place as the
Executive shall have designated by notice as herein provided to the Company.

 

11.           Administration. The
Compensation Committee of the Board (the “Committee”) shall have the
power to interpret this Agreement and to adopt such rules for the
administration, interpretation and application of the Restricted Shares as are
consistent therewith and to interpret, amend or revoke any such rules. All
actions taken and all interpretations and determinations made by the Committee
in good faith shall be final and binding upon the Executive, the Company and
all other interested persons. In its sole discretion, the Board may at any time
and from time to time exercise any and all rights and duties of the Committee
under this Agreement that are required to be determined in the sole discretion
of the Committee. No member of the Board shall be personally liable for any action,
determination or interpretation made in good faith with respect to the
Restricted Shares.

 

12.           Miscellaneous.

 

(a)           This
writing constitutes the entire agreement of the parties with respect to the
subject matter hereof and may not be modified or amended except by a written
agreement signed by the Company and the Executive.

 

(b)           No waiver
of any breach or default hereunder shall be considered valid unless in writing,
and no such waiver shall be deemed a waiver of any subsequent breach or default
of the same or similar nature.

 

(c)           Except as
otherwise expressly provided herein, this Agreement shall be binding upon and
inure to the benefit of the Company and its successors and assigns and the
Executive and his heirs and personal representatives.

 

(d)           If any
provision of this Agreement shall be invalid or unenforceable, such invalidity
or unenforceability shall attach only to such provision and shall not in any
manner affect or render invalid or unenforceable any other severable provision
of this Agreement, and this Agreement shall be carried out as if any such
invalid or unenforceable provision were not contained herein.

 

(e)           The
section headings contained herein are for the purposes of convenience only and
are not intended to define or limit the contents of said sections. Except as
may otherwise be expressly 

 

6

 

provided,
all references herein to “Section” or “Sections” shall mean the applicable
section or sections of this Agreement.

 

(f)            Words in
the singular shall be read and construed as though in the plural and words in
the plural shall be read and construed as though in the singular in all cases
where they would so apply.

 

(g)           This
Agreement may be executed in one or more counterparts, all of which taken together
shall be deemed one original.

 

(h)           This
Agreement shall be deemed to be a contract under the laws of the State of Ohio
and for all purposes shall be construed and enforced in accordance with the
internal laws of said state without regard to the principles of conflicts of
law.

 

(i)            No payment
pursuant to the Agreement shall be taken into account in determining any
benefits pursuant to any pension, retirement, savings, profit sharing, group
insurance, welfare or other benefit plan of the Company or any subsidiary of
the Company except to the extent otherwise expressly provided in writing in
such other plan or an agreement thereunder.

 

13.           Certain
Definitions. For purposes of this Agreement:

 

(a)           “Change
in Control” shall mean any change in ownership or control of the Company
effected through a transaction or series of transactions (other than an Initial
Public Offering or other offering of Common Stock to the general public through
a registration statement filed with the Securities and Exchange Commission)
whereby any “person” or related “group” of “persons” (as such terms are used in
Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) (other than the Company, any of its subsidiaries,
an employee benefit plan maintained by the Company or any of its subsidiaries,
a Principal Stockholder or a “person” that, prior to such transaction, directly
or indirectly controls, is controlled by, or is under common control with, the
Company or a Principal Stockholder) directly or indirectly acquires beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act) of
securities of the Company possessing more than fifty percent (50%) of the total
combined voting power of the Company’s securities outstanding immediately after
such acquisition.

 

(b)           “Initial
Public Offering” shall mean the first underwritten public offering
following the Grant Date of any equity securities of the Company pursuant to an
effective registration statement filed by the Company with the Securities
Exchange Commission (other than Form S-8 or successors to such form) under the
Securities Act of 1933, as amended.

 

(c)           “Investment”
shall mean any investment of funds by the Principal Stockholders in equity
securities or instruments of the Company and any of its subsidiaries.

 

(d)           “Principal
Stockholders” shall mean (i) Odyssey Investment Partners Fund, LP (“Odyssey”),
(ii) DS Coinvestment I, LLC, (iii) DS Coinvestment II, LLC, (iv) any general or
limited partner or member of Odyssey (an “Odyssey Partner”), (v) any
corporation, partnership, limited liability company or other entity that is an
affiliate of Odyssey or any Odyssey Partner (including without limitation any
applicable coinvest vehicle established following the date hereof) (collectively,
the “Odyssey Affiliates”), (vi) any managing director, member, general
partner, director, limited partner, officer or employee of (A) Odyssey, (B) any
Odyssey Partner or (C) any Odyssey Affiliate, or the heirs, executors,
administrators, testamentary trustees, legatees or beneficiaries of any of the
foregoing persons referred to in this clause (vi) (collectively, the “Odyssey
Associates”), (vii) any trust, the beneficiaries of 

 

7

 

which, or
corporation, limited liability company or partnership, the stockholders,
members or general or limited partners of which, include only Odyssey, Odyssey
Partners, Odyssey Affiliates, Odyssey Associates, their spouses or their lineal
descendants, and (viii) a voting trustee for one or more of Odyssey, Odyssey
Affiliates, Odyssey Partners or Odyssey Associates; provided, that in no
event shall the Company or any of its subsidiaries be considered an Odyssey
Partner, Odyssey Affiliate, or Odyssey Associate; provided, further,
that an underwriter or other similar intermediary engaged by the Company in an
offering of the Company’s equity securities or other instruments shall not be
deemed a Principal Stockholder with respect to such engagement.

 

(e)           “Proceeds”
shall mean the aggregate amount of cash received (excluding any expense
reimbursement, management, transaction or similar fees) by the Principal
Stockholders; provided, that if the Principal Stockholders receive any
extraordinary dividend(s) from the Company prior to a Change in Control, the
fair market value of such extraordinary dividend(s) received by the Principal
Stockholder(s) (determined as of the date such dividend(s) are distributed)
shall be deemed “consideration received” for the purpose of calculating the
Proceeds.

 

(f)            “Target
Amount” shall mean, with respect to all Investments, a dollar amount equal
to the amount of all Investments made by the Principal Stockholders on or prior
to the date of a Change in Control. For purposes of calculating the Target
Amount, the amount of an Investment shall be the amount paid by such Principal
Stockholder to any person (including, without limitation, the Company, any of
its subsidiaries, or any underwriter) for the purchase of such equity
securities or instruments; provided, that if such Principal Stockholder
shall have acquired such equity securities or instruments directly from another
Principal Stockholder or through an uninterrupted series of Principal
Stockholders, the amount of such Investment shall be the amount initially paid
to purchase such equity securities or instruments from a person other than a
Principal Stockholder.

 

 [signature page follows]

 

8

 

*
* * * *

 

The Executive represents
that he has read this Agreement and is familiar with the Agreement’s terms and
provisions. The Executive agrees to comply with all rules the Company may
establish with respect to the Agreement. The Executive agrees to accept as
binding, conclusive and final all decisions or interpretations of the Board
with respect to any questions arising under this Agreement. The Executive
further acknowledges and agrees that this Agreement, the Stockholders Agreement
and the Employment Agreement constitute the entire agreement between the
parties with respect to the Restricted Shares and that this Agreement
supersedes any and all prior agreements, whether written or oral, between the
parties with respect to the Restricted Shares.

 

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first
above written.

 

 

	
   

  	
  DAYTON SUPERIOR CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ERIC R. ZIMMERMAN

  	
   

  
	
   

  	
  Name:

  	
  Eric R. Zimmerman

  	
   

  
	
   

  	
  Title:

  	
  President and Chief Executive Officer

  	
   

  
					

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/
  RAYMOND E. BARTHOLOMAE

  	
   

  
	
   

  	
  Raymond E. Bartholomae

  	
   

  

 

9

 

Schedule I

 

[Stockholders Agreement]Exhibit 10.14  

August
1, 2006 

Ms.
Nancy Nugent

1012 Tenth Street, #1

Santa Monica, California 90403 

Dear
Nancy: 

        On
behalf of Advanstar Communications Inc., it gives me great pleasure to confirm an offer of employment to you for the position of Vice President, Human Resources based in our Woodland
Hills office and reporting directly to me or my designee. Your effective date of employment will be a soon as possible. My expectation is that you will be able to start no later that September 1,
2006. 

        Your
starting base salary will be at the bi-weekly rate of $6,923.08 (or $180,000 annualized). Our pay periods are bi-weekly with paydays every other Friday via direct deposit. You will
also be eligible to receive an annual bonus based on your job performance with a targeted amount of 25% of your then annual base salary ($45,000 in 2006), which will be prorated for the remainder of
2006. 

        In
addition, you will be eligible for all of our benefit programs, which will be effective on the first of the month following your start date. Enrollment materials will be provided to
you on your first day of employment. In general, benefits are currently provided in the areas of vacation, sick pay, group health and dental insurance, life insurance, AD&D as well as long-term
disability insurance protection, all as outlined in the applicable plan documents. We also currently have a 401(k) Plan that you can join on the first of the month following your start date.
Currently, you will become eligible to receive matching 401(k) contributions (in accordance with the provisions and limitations of the plan) from Advanstar starting on the first of the month following
one year of employment. Following six months of your employment with Advanstar I will review your eligibility to participate in Advanstar's Executive Stock Option Program (the Advanstar Holdings Corp.
2000 Management Incentive Plan). You will be provided further details if and when you are selected to participate in the Management Incentive Plan. You will be eligible for four (4) weeks of vacation
annually. 

        Please
note that your employment with Advanstar is on an "at will" basis. That means that you can terminate your employment at any time, for any or no reason, with or without prior
notice, and Advanstar reserves the same right. Please familiarize yourself with all other policies which cover your employment by carefully reviewing our Employee Handbook which will be provided to
you upon your arrival. 

        Notwithstanding
the "at will" nature of your employment, we have agreed to specific provisions to govern certain types of potential termination of your employment. If you are terminated
without "Cause" (as defined below), you will receive six (6) months of your base salary in the form of salary continuation. You will also be entitled to the salary continuation payments described in
the preceding sentence in the event you resign from Advanstar based upon (i) a materially significant diminution in your duties or responsibilities; or (ii) an involuntary reduction in your annualized
base salary. Any payments made to you pursuant to the preceding sentences would constitute your full entitlement to severance (in lieu of any standard severance policy of Advanstar Communications) and
you would be required to execute a standard release of any related claims against Advanstar Communications prior to the payment of any severance amount to you. 

        The
term "Cause" means conduct involving one or more of the following: (i) continuing failure, after notice thereof, to render services to Advanstar in accordance with the terms or
requirements of your employment; (ii) disloyalty, gross negligence, willful misconduct, dishonesty, or breach of fiduciary duty to Advanstar; (iii) the commission of an act of embezzlement or fraud, a
felony or a crime involving moral turpitude; (iv) deliberate disregard of the rules or policies of Advanstar which results in direct or indirect material loss, damage or injury to Advanstar; (v) the
unauthorized and intentional disclosure of any trade secret or confidential information of Advanstar; or (vi) the commission of an act which breaches your duty not to compete with Advanstar while
employed by Advanstar. 

        Please
sign a copy of this letter as indicated below and return the signed copy to me by fax to 818/593-5024 or by mail to 6200 Canoga Avenue, Suite 200, Woodland Hills, CA 91367. The
original can be signed when you begin employment. 

        On
behalf of all of us at Advanstar, I warmly welcome you aboard and wish you a terrific future at the Company. I greatly look forward to working together. 

Sincerely, 

/s/  JOE LOGGIA

Joe Loggia

Chief Executive Officer 

Acknowledgement:  

        I acknowledge that, except as contained in this letter, no representations, promises or agreements (in writing, orally or in any other
form) have been made to me by Advanstar or any of its employees or representatives regarding compensation, duration or any other aspect of my employment at Advanstar.

	Signature:	 	/s/ NANCY NUGENT	 	Date:	 	August 2, 2006
	 	 	
	 	 	 	

	 	 	Nancy Nugent

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