Document:

Exhibit
10.42

January 10, 2007

Douglas L. Mann

Dear Doug,

We
are excited about the possibility of your joining Vertis Communications.
Clearly you bring to us an enormous amount of experience, expertise, energy,
drive and proven results. Therefore, we are pleased to extend to you an offer
to join what we believe is one of the most successful and dynamic organizations
in targeted advertising, media, and marketing solutions. You have a unique
opportunity to participate in the positioning, growth and challenges offered by
our company.

Following are the summarized
terms of our offer:

1.     Specifically, you will join Vertis Communications in the position of
Senior Vice President/General Manager - Advertising Inserts  and
will be  responsible for
providing the leadership, vision and strategy needed to grow top line revenue for the Advertising Inserts portion of the Company’s
business.

2.     It is our understanding that you will resign from your current position
and begin work with Vertis Communications on Monday, February 5, 2007.

3.     Your starting base salary will be $350,000 annualized, distributed in an amount of $13,461.54 bi-weekly on Fridays.

4.     In addition, should you begin your employment on or before February 5th, 2007, you will receive a signing bonus of
$75,000, paid within the first 30 days. Should you choose to end your
association with Vertis or should Vertis terminate you for Cause as defined
below prior to you completing one full year of employment, you agree to repay this
amount in full and agree Vertis may offset such an amount against amounts owing
to you at the end of your employment.

5.     You will receive an
automobile allowance of $990 per
month or $11,880 annually.

6.     You will participate in the Employee Incentive Plan, with bonus
eligibility of 50% of your base salary. The details of this Plan, including
your plan objectives, will be discussed and refined after you have accepted
this offer.

7.     As an
element of your compensation, the Company intends to grant to you 5,000 shares
of the Company’s restricted common stock under the Vertis Holdings, Inc. equity
plan, subject to approval by the Company’s Board of Directors at its next
meeting. These shares of restricted stock would be subject to the Company’s
standard vesting provisions and restrictions on transfer. These provisions
would be more fully set forth in a Restricted Stock Agreement, to be entered
into upon the award of the shares.

8.     You will be eligible to participate in the company’s Deferred
Compensation Plan. Upon acceptance of this offer, the details of this Plan will
be provided to you.

9.     Your job performance will be reviewed annually.
Merit increases are based on performance and in accordance with the company’s
current policy and procedures.

10.   You will be eligible for coverage under our group
health, life insurance and disability plans in accordance with the terms of
those plans. Our health insurance plans provide coverage for most medical,
dental and vision expenses. Several coverage options are available allowing you
to select the program that best meets your needs. Again, upon acceptance of
this offer our benefit brochures and more detailed and specific information
will be provided to you under separate cover.

11.   You will be eligible to participate in our 401K
Plan within 15 days of your hire date.

12.   You
will be immediately eligible for all Vertis holidays, which are:

·      Thanksgiving Day

·      Day After Thanksgiving

·      Christmas Eve Day

·      Christmas Day

·      New Year’s Day

·      Memorial Day

·      Independence Day

·      Labor
Day

13.   As a senior
member of management, your personal time off will be covered under our
Executive Leave policy, which provides you up to 4 weeks of compensated leave
each year. (Leave cannot be accumulated from year to year).

14.   Vertis
Communications requires that all employees take and pass a pre-employment
controlled substance screening prior to the beginning of employment. Therefore,
this offer is contingent upon the laboratory results of that test. Details
containing our testing procedures are included with this letter.

15.   As
appropriate for your position in senior management, this offer is contingent
upon the successful completion and results of comprehensive reference and
background checks.

Due
to the highly sensitive nature of our business, we require all professional and
or management personnel to sign a Business Responsibility Agreement. This
Agreement is enclosed for your review. Please sign one copy of the Agreement
and return the other copy to me.

Federal requirements
state that, at the time of your employment, you must provide documentation
establishing your identity and legal right to work in the United States.
Therefore, this offer is contingent on this validation.

We
understand that you are not a party to any employment contract or agreement
which restricts your ability to devote the full range of your skills and
knowledge to Vertis Communications, or your right to engage in competition with
your present employer after the termination of your employment. If this
understanding is incorrect, please notify us immediately. Accordingly, our
offer is contingent upon our receipt and review of any such agreement.

Furthermore,
should you accept this offer; there is no express or implied contract of
employment between you and Vertis Communications. You will be employed for no
particular period of time; you have the right to terminate your employment at
any time for any reason, and the company has a similar right. If the Company
terminates your employment for any reason other than for Cause, then upon
execution of a Separation and Release Agreement, you will receive severance
pay, in the form of payroll continuation of your annual base salary as of your
date of separation, for a period of twelve (12) months, less all legally
required deductions. “Cause” shall mean (i) gross negligence or willful
misconduct by you in connection with the performance of your duties that is
materially injurious to the Company, monetarily or otherwise, (ii) the
conviction of you by a court of competent jurisdiction for felony criminal
conduct or (iii) material violation by you of the non-disclosure of
confidential information or non-solicitation provisions of your Business
Responsibility Agreement.

The
terms of this offer of employment extended to you are outlined in this letter
and any additions or other changes must also be in writing.

Please acknowledge your receipt
of this offer, acceptance of it and agreement with the terms outlined above by
signing the attached copy of this letter and returning it to me.

I am sure you realize that this
position provides you the opportunity to enhance your already considerable
skills. I am certain you will find your new role challenging, rewarding and
satisfying. We look forward to having you on the Vertis Communications team.

Sincerely,

	
  /s/ James G. Foley

  	
   

  

James G. Foley

Vice President, Human Resources

	
  Acknowledged: 

  	
  /s/ Douglas L.
  Mann

  	
   

  

 

	
  Date:

  	
                                

  	
   

  

 

Consent to Drug
Testing and Release of Claims

Forensic Drug
Testing Custody and Control

U.S. Immigration
& Naturalization Service I-9

Business Responsibility Agreement

BUSINESS RESPONSIBILITY AGREEMENT

Dear Doug:

As
you know, your position involves exposure and access to very sensitive areas of
Vertis Communications’ (“Vertis”)
business, including confidential and proprietary information. This letter
confirms the terms and conditions of your access to that information, and it
reflects the agreement between you and Vertis that compliance with these terms
is essential to your employment with Vertis. You also understand that the
obligations of this letter are in addition to the obligations set forth in
Vertis’ current Employee Handbook.

In
consideration of your employment or continued employment and your eligibility
for positions that give you access to Vertis’ confidential and proprietary
information, and for other consideration, you and Vertis agree as follows:

1.             Business
Conduct. 
In addition to the terms and conditions in this Agreement, you will be
subject to the Vertis Employee Handbook, including any updates or changes, as
well as all other policies and procedures of Vertis.  You agree at all times to perform faithfully
the duties assigned to you to the best of your ability, experience and talents
and you will not do any other work that interferes with your responsibilities
for Vertis.  Further, you represent and
warrant that you are not subject to any restrictions, limitations or
obligations that would prevent you from being able to fully perform the duties
assigned to you by Vertis.

2.             Confidentiality.   You acknowledge that the successful
marketing and development of Vertis products and services requires substantial
time and expense.  Such efforts generate
valuable proprietary and confidential information for Vertis that gives Vertis
a business advantage over others who do not have such information.  You acknowledge that during your employment
with Vertis you have developed and/or acquired and will develop and/or acquire
Confidential Information (as defined in this Agreement).  You will use your best efforts and the utmost
diligence to guard and protect all Confidential Information of Vertis.  Vertis “Confidential Information” includes
all information about Vertis’ business which has not been made available
generally to the public by Vertis, whether or not it is reduced to
writing.  It includes, without
limitation, any information about any Vertis customers; Vertis’ marketing
methods, business plans and related data; the costs of any materials, the
prices, discounts or terms at which it sells its products or services;
manufacturing and sales costs; financial information; compensation paid to
employees, and other proprietary information and trade secrets. You will not,
at any time during or after your employment by Vertis, disclose or use for the
benefit of any other person or entity any Vertis Confidential Information.  If your employment by Vertis is terminated
for any reason, you will leave with Vertis any and all Company and personal records,
papers, electronic media and materials, which contain or otherwise disclose
Vertis Confidential Information.

3.             Discoveries
and Inventions. You will
promptly report to Vertis any and all discoveries, inventions or improvements
of any nature, whether or not patentable, which you discover, conceive or make
during the period of your employment, which relate to the business of Vertis.
All such discoveries, inventions and improvements will be the sole and
exclusive property of Vertis. During or after your employment with Vertis, you
will execute any documents Vertis deems necessary for the protection of its
interest in discoveries, inventions and improvements.

4.             Conflicts
of Interest. You will
avoid actual, perceived or potential conflicts of interest with Vertis’
business. In this regard, you agree not to accept any cash or cash equivalents,
no matter what the value or accept any gifts, entertainment or gratuities with
a value over $100.00 from actual or prospective customers, suppliers,
competitors or others with whom Vertis has business relationships.  In addition, you agree not to have directly
or indirectly, financial interests in competing or supplying companies which
could affect your duties to Vertis.  If
any actual or potential conflict of interest arises, you agree to report them
immediately in writing to an officer of Vertis.

5.             Company
Property. All equipment, notebooks, documents,
memoranda, reports, files, samples, books, correspondence, mailing lists,
calendars, card files, rolodexes, and all other written and graphic records
affecting or relating to the business of Vertis, regardless of the medium in
which such information is stored (“Company Property”) shall be and remain the
sole and exclusive property of Vertis You agree not to remove any things or
documents from Vertis’ premises at any time unless those things or documents
are necessary to those duties, which you must perform outside of Vertis’
premises. In the event of termination of employment with Vertis for any reason,
you shall promptly deliver to Vertis all Company Property, which are or have
been in your possession. You shall not maintain any copy or other reproduction
whatsoever of any of the items described in this section after the termination
of employment.

6.             Employee
Solicitation. You agree
that Vertis invests substantial time and effort in assembling its
personnel.  You agree that during your
employment and for a period of one (1) year after its termination for any
reason, you will not directly or indirectly solicit any employee of Vertis for
employment in any capacity by yourself or another company.

7.             Customer
Solicitation. You agree
that Vertis’ relationships with its customers are solely the assets and
property of Vertis. You agree that during and for a period of one (1) year
following termination of your employment with Vertis for any reason, you will
not directly or indirectly solicit, contact, serve or have any dealing with or
attempt to solicit, contact serve or have any dealing with any of Vertis’
customers with whom you had material contact on behalf of Vertis during the
twelve (12) month period before your termination. “Material contact” means: (i)
direct personal contact with customer for the purpose of selling Vertis’
products or services to the customer or (ii) any direct supervision of the
direct personal contacts other employees of Vertis may have with customers.

8.             Non-Competition.  You agree that during and for a period of one
(1) year following termination of your employment with Vertis for any reason,
you will not, for yourself or as a stockholder, director, officer, partner,
agent or employee of any other person, firm or corporation, directly or
indirectly, render any services in connection with the manufacture,
development, sale or servicing of any product or service competitive with, or
usable for substantially the same purposes as, any product or service
manufactured or sold or in the process of development by Vertis or, for a
period of one (1) year following said termination date, solicit from or service
the accounts of any customer of Vertis. 
This section shall not preclude any investment in a security listed in a
national securities exchange, if such investment is limited to not more than
one percent (1%) of the outstanding value of such security.

9.             Interpretation
of Obligations. If any
provision of this Agreement is held to be invalid, void or unenforceable, the
remaining provisions will remain in effect and will not be affected, impaired
or invalidated. If a court should determine that any restrictive provision in
this Agreement is unenforceable because of over-breadth, then the court will
modify the provision to make it reasonable and enforceable under the
circumstances.

10.           Injunctive
Relief. You acknowledge that should you violate
any of the provisions in this Agreement, it will be difficult to determine the
resulting damages to Vertis and that monetary damages would not be adequate in
any event. In addition to any other remedies it may have, Vertis shall be
entitled to temporary and permanent injunctive relief without the necessity of
proving actual damage.

11.           Term
of Employment. Your
employment with Vertis is not for a specified term, but is an employment-at-will.  You are free to terminate your employment at
any time, with or without cause, and with or without advance notice and Vertis
retains the same rights.

12.           Other
Employment After Termination. You
acknowledge the restrictions in this Agreement are reasonably designed to
protect Vertis’ Confidential Information and other legitimate business interests.  You acknowledge and represent that you have
substantial experience and knowledge such that you can readily obtain
subsequent employment, which does not violate this Agreement.  You also agree that Vertis may notify any of
your future or prospective employers as to the existence and provision of this
Agreement and as to its intention to enforce its rights.

13.           Miscellaneous.
This Agreement is governed by and construed in accordance with the laws of the
State of Maryland.  If any legal action
is necessary to enforce the terms or conditions of this Agreement, the parties
agree that the Courts of the State of Maryland shall have proper venue and
jurisdiction for the bringing of such action. The provisions of this Agreement
are the entire Agreement between the parties and supersede all prior or
contemporaneous agreements related to the subject matter and may be modified
only in writing executed by the parties. 
Waiver of any default or breach of this Agreement shall not constitute a
waiver of any other default or breach. 
You acknowledge that your obligations under this Agreement are unique
and personal.  Therefore, you may not
assign any of your rights or delegate any of your duties or obligations under
this Agreement.  Vertis may assign its
rights, duties or obligations under this Agreement to any person or entity with
whom it has merged or consolidated, or to whom it has transferred all, or
substantially all, of its assets or as a consequence of a corporate
reorganization or merger.

You certify that you have read
this Agreement, studied it, and have had sufficient opportunity to ask
questions, and understand all rights and obligations under the Agreement.  You also certify that you had the option of
seeking legal counsel regarding this Agreement prior to execution.  If this Agreement is acceptable to you,
please sign the enclosed copy and return it to Jim Foley.

Sincerely,

	
  /s/ James G. Foley

  	
   

  

James G. Foley

Vice
President, Human Resources

Accepted and agreed to on                          ,
              

	
  By: 

  	
  /s/ Douglas L.
  Mann

  	
   

  
	
               Douglas
  L. MannExhibit 10.45

Plan Document

Management
Incentive Compensation Plan — FY 2007

Purpose

The Management Incentive
Compensation Plan (“MICP” or the “Plan”) is designed to reward select key
employees of Vertis, Inc. and any subsidiary corporation (the “Company”) for
achieving and exceeding performance objectives. The Plan is intended to provide
an incentive for superior work and to motivate participating employees to
achieve high levels of performance that drive business results.  The Plan is also intended to align
participant goals with those of the Company and its shareholders and enables
the Company to continue to attract and retain highly qualified employees.  This Plan Document, as it is written, is
intended to serve as a reference guide and planning tool with which the Company
can further administer the Plan.

Eligibility and Participation

	
  1.1

  	
  Members of
  management designated as managers (or equivalent) and above are eligible to
  be considered for participation in the Plan, subject to selection and
  approval as set forth in paragraph 1.2.

  
	
   

  	
   

  
	
  1.2

  	
  The
  Administrative Committee, as defined below, for the Plan shall have the
  authority to identify those eligible employees (“Participants”) who will
  participate in the Plan for each Performance Period. Participants are
  generally defined as manager level and above who directly impact the top or
  bottom line financials of the Company. However, job title alone will not
  guarantee participation in the Plan.

  
	
   

  	
   

  
	
  1.3

  	
  The
  Administrative Committee, in its sole discretion, may also select certain
  non-manager-level employees to participate in the MICP when those non
  manager-level employees are able to significantly impact business results.

  
	
   

  	
   

  
	
  1.4

  	
  Participants who
  are hired between January 1 and October 1 of the Plan Year are eligible to
  participate for that Plan Year. Participants hired after October1st are not
  eligible to participate for that Plan Year. Any payout for a Participant
  hired after January 1st will be prorated based on the number of months worked,
  including any months on a Company approved leave of absence, during the Plan
  Year. Participants hired between the 1st and the 15th of any month will be deemed to have been
  hired on the 1st of that month. Participants hired between
  the 16th and the 31st of any month will be deemed to have been
  hired on the 1st of the following month.

  

 

 

Plan Year, Performance Period and Performance Goals

	
  2.1

  	
  The fiscal year
  of the Plan shall be the calendar year (the “Plan Year”). The performance
  period in which incentives may be payable under the Plan shall normally be
  the Plan Year; provided however, that the Administrative Committee shall have
  the authority to designate alternative performance periods under the Plan
  (“Performance Period”).

  
	
   

  	
   

  
	
  2.2

  	
  The
  Administrative Committee shall establish in writing, with respect to each
  Performance Period, Vertis-wide performance goals and specific target
  objectives (“Vertis Performance Goals”). To the extent that Vertis
  Performance Goals are attained, a method or formula for computing the amount
  of incentive compensation payable to each participant under the Plan shall be
  communicated at the beginning of each Performance Period or as soon as
  administratively possible after the beginning of the Performance Period.

  
	
   

  	
   

  
	
  2.3

  	
  Other
  performance goals may be established and may be based upon a particular
  business unit or participant’s attainment of specific objectives set for the
  Performance Period (“Individual Objectives”) (the Vertis Performance Goals
  and the Individual Objectives are collectively referred to as “Performance
  Goals”).

  
	
   

  	
   

  
	
  2.4

  	
  Individual
  Objectives shall be developed for each Participant by the Participant’s
  supervisor. Individual Objectives will be documented on the appropriate Plan
  form at the beginning of the Performance Period, or as soon as possible
  thereafter, copies of which will be given to the Participant and the
  Administrative Committee. Individual Objectives will be subject to approval
  by the Administrative Committee or its designee. Individual Objectives may be
  changed during a performance period to reflect changes in the business or in
  Company initiatives. To the extent Individual Objectives are changed during a
  year, the changes will be reviewed with the Participant, and a new form will
  be completed and sent to the Administrative Committee for approval.

  

 

Determination of Incentive Awards

	
  3.1

  	
  As soon as
  practicable following the end of the applicable Performance Period, each
  Participant will review their performance against their stated Individual
  Objectives with their supervisor. The Supervisor will provide a report to
  their appropriate Group Human Resources Director and Business Unit General
  Manager indicating the Participant’s level of achievement with respect to
  their Individual Objectives. Following the approval of the Group Human
  Resources Director and General Manager, each Participant’s Individual
  Objectives attainment level will be reported to the Corporate Human Resources
  Department.

  

 

 2
 

 

	
  3.2

  	
  The Chief
  Financial Officer shall certify in writing to what extent the Company, its
  subsidiaries, operating divisions or other operating units and the
  Participants have achieved any established Vertis Performance Goal(s) for the
  Performance Period(s), including the satisfaction of material terms of the
  Performance Goals. The Chief Financial Officer shall then provide this
  information to the Corporate Human Resources Department.

  
	
   

  	
   

  
	
  3.3

  	
  The Corporate
  Human Resources Department shall then calculate the amount of incentive for
  each Participant based upon the formula or method as set out for the
  applicable Performance Period. Calculated awards shall be presented to the
  Administrative Committee for final review and approval.

  

 

Payment of Incentive Awards

	
  4.1

  	
  Approved
  incentive awards shall be payable by the Company by direct deposit, unless
  other arrangements are agreed to, to each Participant, or to his/her estate
  in the event of his/her death. Payments shall be made as soon as possible
  after the Administrative Committee has approved the awards pursuant to
  Section 3.3, but no later than two and one-half months following the end of
  the calendar year in which the applicable Performance Period ended.

  
	
   

  	
   

  
	
  4.2

  	
  Except as
  otherwise provided (a) by the Administrative Committee or (b) in any written
  employment agreement, scheduled retirement, written severance agreement or
  other written agreement between the Company and a Participant, there shall be
  no payment of any incentive award to any Participant who is not actively
  employed or on a Company approved leave of absence as of the end of the Plan
  Year.

  
	
   

  	
   

  
	
  4.3

  	
  To be eligible
  to receive a payout under this policy, the participant must be an employee in
  good standing with the company. “Good standing” for purposes of this document
  shall mean that they shall have received a performance rating of at least
  Proficient as of the date of their most recent performance review or if the
  review is more than 3 months old, must be currently performing at least in a
  Proficient manner as of the end of the Plan Year.

  
	
   

  	
   

  
	
  4.4

  	
  Calculation of
  payouts, if any, will be based on the Participant’s base salary as of the end
  of the Plan Year (December 31).

  
	
   

  	
   

  
	
  4.5

  	
  The Company will
  deduct from any incentive award any applicable withholding taxes or any
  amounts owed by the Participant to the Company or any of its subsidiaries.

  

 

 3
 

 

Other Terms and Conditions

	
  5.1

  	
  Except as may be
  otherwise required by law, incentive awards under the Plan shall not be
  subject in any manner to anticipation, alienation, sale, transfer,
  assignment, pledge, encumbrance, charge, garnishment, execution, or levy of
  any kind, either voluntary or involuntary. Incentives awarded under the Plan
  shall be payable from the general assets of the Company, and no participant
  shall have any claim with respect to any specific assets of the Company.

  
	
   

  	
   

  
	
  5.2

  	
  Neither the Plan
  nor any action taken under the Plan shall be construed as giving any employee
  the right to be retained in the employment of the Company or any parent,
  subsidiary or affiliate of the Company or to maintain any Participant’s
  compensation at any level. Nothing in this Plan shall in any way diminish or
  limit either party’s right to terminate the employment relationship at any
  time and for any lawful reason, in its sole discretion.

  

 

Administration

	
  6.1

  	
  The
  Administrative Committee is comprised of the Chairman & Chief Executive
  Officer, Chief Financial Officer, VP Human Resources, Chief Legal Officer, and
  the Director, Corporate Compensation & Benefits. The Chief Financial
  Officer is the chair of the Committee.

  
	
   

  	
   

  
	
  6.2

  	
  The
  Administrative Committee shall have full power, authority and discretion to
  administer and interpret the provisions of the Plan and to adopt such rules,
  regulations, agreements, guidelines and instruments for the administration of
  the Plan and for the conduct of its business as the Committee deems necessary
  or advisable.

  
	
   

  	
   

  
	
  6.3

  	
  The
  Administrative Committee shall have full power to delegate to any officer or
  employee of the Company the authority to administer and interpret procedural
  and administrative issues, and unless the Committee otherwise delegates this
  authority, the Director, Corporate Compensation & Benefits fulfills this
  role.

  
	
   

  	
   

  
	
  6.4

  	
  The
  Administrative Committee may rely on opinions, reports or statements of
  officers or employees of the Company or any subsidiary thereof and of Company
  counsel (inside or retained counsel), public accountants and other
  professional or expert persons.

  
	
   

  	
   

  
	
  6.5

  	
  The
  Administrative Committee reserves the right to amend or terminate the Plan in
  whole or in part at any time without advance notice to the Participants.

  
	
   

  	
   

  
	
  6.6

  	
  To the extent
  permitted by applicable law, (a) no member of the Administrative Committee
  shall be liable for any action taken or omitted to be taken or for any
  determination made in good faith with respect to the Plan, and (b) the
  Company shall indemnify and hold harmless each member of the Administrative
  Committee against any reasonable cost or expense (including reasonable
  counsel fees) or liability (including any sum paid in settlement of a claim
  with the 

  

 

 4
 

 

	
  

  	
  approval of the
  Administrator) arising out of any act or omission in connection with the
  administration or interpretation of the Plan, unless arising out of fraud or
  bad faith.

  
	
   

  	
   

  
	
  6.7

  	
  The place of
  administration of the Plan shall be in the State of Maryland, and the
  validity, construction, interpretation, administration and effect of the Plan
  and of its rules and regulations, and rights relating to the Plan, shall be
  determined solely in accordance with the laws of the State of Maryland.

  

 

 5

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