Document:

Exhibit 10.19

 

TERMINATION BENEFITS AGREEMENT

 

This Termination Benefits Agreement (“Agreement”) is made as of May 14, 2012 between Gannett Co., Inc., a Delaware corporation (“Gannett”), and Lawrence S. Kramer (“Executive”).

 

Gannett desires to appoint Executive as the President and Publisher of USA TODAY and, to secure his acceptance of this position, desires to memorialize the compensation and benefits he would receive in the event his employment terminates under certain circumstances.

 

Gannett and Executive hereby agree as follows:

 

1.                                      Termination of Employment by Executive.  Executive shall have the right to terminate his employment with Gannett for “good reason” upon 30 days’ written notice to Gannett given within 90 days following the occurrence of any of the following events, each of which shall constitute a “good reason” for such termination:

 

(a) Executive is not elected or retained as President and Publisher of USA TODAY (or a substantially similar title or such other senior executive position as Executive may agree to serve in);

 

(b) Executive is required to report to anyone other than Gannett’s Chief Executive Officer or President (unless, in the case of the President, the majority of Gannett’s senior executives who formerly reported to the Chief Executive Officer do not report to the President);

 

(c) Gannett acts to materially reduce Executive’s duties and responsibilities and Gannett does not remedy such situation within 30 days after receipt of written notice from Executive; or

 

(d) Gannett materially breaches this Agreement and Gannett does not remedy such breach within 30 days after receipt of written notice from Executive.

 

2.                                      Termination of Employment by Gannett.  Gannett shall have the right to terminate Executive’s employment for “good cause” upon written notice to Executive following the occurrence of any of the following events, each of which shall constitute a “good cause” for such termination:

 

(a) embezzlement, fraud, misappropriation of funds, breach of fiduciary duty or other act of material dishonesty committed by Executive or at Executive’s direction;

 

(b) neglect or refusal by Executive to perform the duties of his position which he does not remedy within 30 days after receipt of written notice from Gannett;

 

(c) violation of Gannett’s employment policies by Executive;

 

(d) conviction of, or guilty or nolo contendere plea by the Executive to a felony or any crime involving moral turpitude; or

 

 

(e) material breach by Executive of this Agreement which he does not remedy within 30 days after receipt of written notice from Gannett.

 

Gannett may also terminate Executive’s employment for convenience (i.e., for any reason other than good cause), subject to the applicable provisions of this Agreement that are intended to survive termination of employment.

 

3.                                      Consequence of Termination of Employment.  If Executive terminates his employment with Gannett for any reason other than good reason or Gannett terminates his employment for good cause, Executive shall have no further rights and Gannett shall have no further obligations under this Agreement.  If Executive terminates his employment for good reason or Gannett terminates Executive’s employment for convenience, then conditioned upon and subject to Executive executing a valid release agreement in such form as Gannett may reasonably require with respect to claims which Executive or his estate or beneficiaries may have arising out of Executive’s employment (the “Release”), the following shall apply:

 

(a) Executive shall be paid in accordance with normal payroll practices all earned but unpaid compensation, accrued vacation and accrued but unreimbursed expenses required to be reimbursed through the date his employment terminates (the “Termination Date”); and

 

(b) Gannett shall pay to Executive on the 30th day after the Termination Date, provided that the Release has become effective and non-revocable as of that date, a cash lump sum severance payment equal to the sum of (i) his annual base salary in effect on the Termination Date and (ii) his most recent annual bonus as of the Termination Date.

 

Notwithstanding the foregoing, Section 3(b) above shall not apply if the Release does not become effective and non-revocable within 30 days after Executive’s Termination Date, and Executive shall have no rights under such section if the Release does not become effective and non-revocable by the 30th day after Executive’s Termination Date.  Executive shall not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise, nor will any payments hereunder be subject to offset in respect of any claims which Gannett may have against Executive, nor shall the amount of any payment or benefit provided for in this Section 3 be reduced by any compensation earned as a result of Executive’s employment with another employer.  If Executive is entitled to receive a change in control payment under any Gannett transitional compensation or change in control plan then in effect, the amount determined under Section 3(b) shall be offset by the amount paid to Executive under such transitional compensation or change in control plan.

 

4.                                      Legal Expenses and Interest.  If, with respect to any alleged failure by Gannett to comply with any of the terms of this Agreement, Executive institutes or responds to legal action to assert or defend the validity of, enforce his rights under, or recover damages for breach of this Agreement and thereafter Gannett is found in a judgment no longer subject to review or appeal to have breached this Agreement in any material respect, then Gannett shall indemnify Executive for his reasonable attorneys’ fees and costs in connection with such legal action.  Gannett shall pay Executive such indemnified expenses by the end the calendar year in which such judgment is reached

 

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or, if later, by the 15th day of the third month after the date on which such judgment is reached.

 

5.                                      Transferability.  The rights, benefits and obligations of Gannett under this Agreement shall be transferable, and all covenants and agreements hereunder shall inure to the benefit of and be enforceable by or against, its successors and assigns.  Whenever the term “Gannett” is used in this Agreement, such term shall mean and include Gannett Co., Inc. and its successors and assigns.  The rights and benefits of Executive under this Agreement shall not be transferable other than rights to property or compensation that may pass on his death to his estate or beneficiaries through his will or the laws of descent and distribution.

 

6.                                      Severability.  If any provision of this Agreement or the application thereof is held invalid or unenforceable, the invalidity or unenforceability thereof shall not affect any other provisions of this Agreement which can be given effect without the invalid or unenforceable provision, and to this end the provisions of this Agreement are to be severable.

 

7.                                      Amendment; Waiver.  This Agreement contains the entire agreement of the parties with respect to the matters contained herein.  No amendment or modification of this Agreement shall be valid unless evidenced by a written instrument executed by the parties hereto.  No waiver by either party of any breach by the other party of any provision or conditions of this Agreement shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time.

 

8.                                      Tax Withholding.  Gannett may withhold from any payments due to Executive hereunder, such amounts as its independent public accountants may determine are required to be withheld under applicable federal, state and local tax laws.

 

9.                                      Restrictive Covenant.

 

(a)  Executive agrees that (i) during the period of his employment hereunder and (ii) provided that Executive has received the payment under Section 3(b) above, or if Executive is terminated for good cause as defined in Section 2, for a period of one year after he ceases employment, he will not, without the written consent of Gannett, obtain (or, in the case of clause (ii) above, seek) a position with a Competitor (as defined below) in which Executive will use or is likely to use any confidential information or trade secrets of Gannett, or in which Executive has duties for such Competitor within the United States that involve Competitive Services (as defined below) and that are the same or similar to those services actually performed by Executive for Gannett.

 

(b)  Executive understands and agrees that the relationship between Gannett and each of its employees constitutes a valuable asset of Gannett and may not be converted to Executive’s own use.  Accordingly, Executive hereby agrees that (i) during the period of his employment hereunder and (ii) for a period of one year after he ceases employment, Executive shall not directly or indirectly, on his own behalf or on behalf of another person, solicit or induce any employee to terminate his or her employment relationship with Gannett or any affiliate of Gannett or to enter into employment with another person.  The foregoing shall not apply to employees who

 

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respond to solicitations of employment directed to the general public or who seek employment at their own initiative.

 

(c)  For the purposes of this Section 9, “Competitive Services” means the provision of goods or services that are competitive with any goods or services offered by Gannett as of the date of this Agreement, including, but not limited to newspapers, non-daily publications, television, radio, cable, digital, Internet, and other news and information services, and “Competitor” means any individual or any entity or enterprise engaged, wholly or in part, in Competitive Services.  The parties acknowledge that Gannett may from time to time during the term of this Agreement change or increase the line of goods or services it provides, and Executive agrees to amend this Agreement from time to time to include such different or additional goods and services to the definition of “Competitive Services” for purposes of this Section 9.

 

(d)  Executive agrees that due to his position of trust and confidence the restrictions contained in this Section 9 are reasonable, and the benefits conferred on his in this Agreement, including his compensation, are adequate consideration, and since the nature of Gannett’s business is national in scope, the geographic restriction herein is reasonable.

 

(e) Executive agrees that, during the period of his employment and for a period of five years after he ceases employment, he will not make any statements, oral or written, or cause or allow to be published in his name, or under any other name, any statements, interviews, articles, books, web logs, editorials or commentary (oral or written) that is critical or disparaging of Gannett, or any of its operations, or any officers, employees or directors of Gannett, or of any of its operations.

 

(f)  Executive acknowledges that a breach of this Section 9 will cause irreparable injury and damage, which cannot be reasonably or adequately compensated by money damages.  Accordingly, he acknowledges that the remedies of injunction and specific performance shall be available in the event of such a breach, and Gannett shall be entitled to money damages, costs and attorneys’ fees, and other legal or equitable remedies, including an injunction pending trial, without the posting of bond or other security.  Any period of restriction set forth in this Section 9 shall be extended for a period of time equal to the duration of any breach or violation thereof.

 

(g)  In the event of Executive’s breach of this Section 9, in addition to the injunctive relief described above, Gannett’s remedy shall include (i) the right to require Executive to account for and pay over to Gannett all compensation, profits, monies, accruals, increments or other benefits derived or received by Executive as the result of any transactions constituting a breach of the restrictive covenants in this Section 9, and (ii) in the case of a breach during the period described in Section 9(a)(ii) or 9(b)(ii) above, the forfeiture and return to Gannett of any payment made under Section 3(b) above.

 

(h)  In the event that any provision of this Section 9 is held to be in any respect an unreasonable restriction, then the court so holding may modify the terms thereof, including the period of time during which it operates or the geographic area to which it applies, or effect any other change to the extent necessary to render this

 

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Section 9 enforceable, it being acknowledged by the parties that the representations and covenants set forth herein are of the essence of this Agreement.

 

10.                               Confidentiality.  Executive agrees to keep confidential the existence of this Agreement and its terms.

 

11.                               Section 409A.  The parties intend that benefits under this Agreement are to be either exempt from, or comply with, the requirements of Section 409A of the Code, as amended, and the Treasury Department regulations and other authoritative guidance issued thereunder, and shall be interpreted and administered in accordance with the intent that Executive not be subject to tax under Section 409A of the Code.  If any provision of the Agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended so as to avoid the conflict.  Any reference in this Agreement to “terminates employment”, “employment terminates”, or similar phrase shall mean an event that constitutes a “separation from service” within the meaning of Section 409A.  Notwithstanding anything to the contrary contained herein, in the event that Gannett determines that payments or benefits under this Agreement would otherwise be subject to tax under Section 409A of the Code because Executive is a “specified employee” within the meaning of Section 409A of the Code, such payments or benefits shall not commence until the first day of the seventh month after the Termination Date (or, if earlier, the date Executive dies).

 

12.                               Recovery of Compensation in Restatement Situations.  Gannett will, to the extent permitted or required by governing law or regulations, as may be amended from time to time, or its recoupment or clawback policy, as may be amended from time to time, require reimbursement of any compensation paid to Executive after the date hereof where (a) Gannett is required to prepare an accounting restatement due to material non-compliance with any financial reporting requirements under the securities laws; (b) the compensation payment was predicated upon the achievement of certain financial results, and (c) a lower payment would have been made to Executive based upon the restated financial results.  In each such instance, Gannett will seek to recover Executive’s relevant compensation paid over a period of no less than three years prior to the restatement, regardless of whether Executive is then employed by Gannett.

 

13.                               Governing Law.  This Agreement shall be governed by and construed under and in accordance with the laws of the State of Delaware without regard to principles of conflicts of laws.

 

14.                               Term.  This Agreement shall automatically expire and be of no further force or effect on the third anniversary of the date hereof except as otherwise expressly provided herein and with respect to the enforcement of any rights and obligations that accrued on or before the expiration date.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above.

 

	
 
    	
GANNETT   CO., INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Gracia C. Martore
    
	
 
    	
 
    	
Gracia   C. Martore
    
	
 
    	
 
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Lawrence S. Kramer
    
	
 
    	
Lawrence   S. Kramer
    

 

6Exhibit 10.20

 

AGREEMENT AND RELEASE

 

This Agreement and Release, dated this 8th day of June 2015, is made between Gannett Co., Inc., a Delaware corporation, for itself and its subsidiary, related and affiliated companies and their officers and directors, as well as for the companies anticipated to follow the completion of the separation (the “Spin”) of the business into Gannett/SpinCo and TEGNA/RemainCo, their subsidiary, related and affiliated companies and their officers and directors (collectively, “Gannett”) and Lawrence S. Kramer (hereinafter “KRAMER”) to confirm certain reciprocal obligations, including but not limited to certain severance payments to be made by GANNETT to KRAMER.

 

WHEREAS, KRAMER is currently employed by GANNETT in the capacity of CEO & Publisher of USA Today and such employment is pursuant to an Offer Letter dated May 11, 2012, and a Termination Benefits Agreement dated May 14, 2012, and extended through July 31, 2015.

 

WHEREAS, GANNETT anticipates the imminent separation of its business into Gannett/SpinCo and TEGNA/RemainCo.

 

WHEREAS, KRAMER wishes to separate from employment at or soon after the completion of the pending corporate separation transaction.

 

WHEREAS, GANNETT and KRAMER agree that such a separation is to be treated as a termination by the executive for good reason under section 3 of the Termination Benefits Agreement.

 

WHEREAS, a termination by the executive for good reason has associated with it certain rights and obligations between the parties, including but not limited to the payment of certain monies as severance by GANNETT and the execution of certain releases by KRAMER.

 

WHEREAS, the parties both desire to fully and completely define and agree upon those obligations.

 

NOW THEREFORE, in exchange for and in consideration of the mutual covenants, agreements and promises set forth in this Agreement, the parties agree as follows.

 

1.                                      KRAMER’s employment with GANNETT shall end on a date to be mutually agreed, but in no case earlier than completion of the corporate separation transaction and not later than July 31, 2015.

 

2.                                      KRAMER shall receive severance payments in the following amounts and on the following schedule:

 

A.                                    Five hundred sixty-five thousand dollars ($565,000.00) representing one (1) year of base pay.

 

 

B.                                    Three hundred sixty-five thousand dollars ($365,000) representing the annual bonus for 2015, at an amount equal to the most recent preceding annual bonus.

 

C.                                    These payment identified in A and B above will be paid in a single lump sum in the amount of nine hundred and thirty thousand dollars ($930,000.00), to be issued on the first day of the seventh month following the termination of employment and which will be subject to required withholdings and deductions at that time.

 

3.                                      KRAMER shall become 100% vested in the Restricted Stock Unit (RSU) award dated May 14, 2012 and same shall be distributed to KRAMER pursuant to the timing stipulated by the terms of the RSU plan. All other RSU and Total Shareholder Return (TSR) grants shall be vested on a pro rated basis as of the actual date of termination and distributed to KRAMER pursuant to the timing stipulated by the terms of the RSU and TSR plans.

 

4.                                      All other current benefits enjoyed by KRAMER shall continue on present terms through his last day of employment and thereafter shall be administered pursuant to their own terms and conditions associated with a separation from employment.

 

5.                                      KRAMER shall not be entitled to the benefits described in paragraphs 2 and 3 above, unless and until KRAMER has signed and not revoked, within thirty (30) days after the date of his termination, a full and complete Release of Claims. The details of the Release of Claims are explained below.

 

A. The Release of Claims means that KRAMER agrees to give up forever any and all legal claims, or causes of actions, he may have, or think he has, against Gannett Co. Inc., Gannett/SpinCo, TEGNA, all their related and affiliated companies, and all their officers and directors. This includes all legal claims that arose at any time before or at the time he signs this Agreement; it also includes those legal claims of which he knows and is aware, as well as any legal claims of which he may not know or be aware.

 

B. Several laws of the United States and the Commonwealth of Virginia create claims for employees in various circumstances. These laws include the Age Discrimination in Employment Act, as amended by the Older Worker Benefit Protection Act, Title VII of the Civil Rights Act of 1964, as amended by the Civil Rights Act of 1991, the Americans with Disabilities Act, The Fair Labor Standards Act, as amended, The Family and Medical Leave Act of 1993, and the Virginia Human Rights Act. Several of these laws also provide for the award of attorneys’ fees to a successful plaintiff. KRAMER may or may not be covered by any of these laws, but he agrees that this Release of Claims specifically includes any possible claims under any of these laws, including any claims for attorneys’ fees.

 

C. By referring to specific laws the parties do not intend to limit the Release of Claims to just those laws. All legal claims for money, damages, or any other relief 

 

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that relate to or are in any way connected with KRAMER’s employment with GANNETT or the termination of that employment, are included within this Release of Claims, even if they are not specifically referred to in this Agreement. The only legal claims that are not covered by this Release of Claims are (i) those which cannot, as a matter of law be released, (ii) those that arise out of some action that takes place after KRAMER signs this Agreement, and (iii) those that claim that GANNETT has broken this Agreement.

 

D. KRAMER agrees that he will not say later that some particular legal claim or claims are not covered by the Release of Claims because he was unaware of the claim or claims, because he overlooked them, or because he made an error.

 

E. KRAMER specifically confirms that, as far as he knows, no one has made any legal claim in any federal, state or local court or government agency based in any way on any issue relating to his employment, or the ending of his employment, with GANNETT. If, at any time in the future, such a claim is made by KRAMER or someone acting on his behalf, or by some other person or a government agency, KRAMER agrees that he will be totally and completely barred from recovering any money, damages or remedy of any kind. This provision is meant to include claims that are solely on KRAMER’s behalf, claims that are only in part on his behalf, claims which he has authorized, as well as claims which he has not authorized.

 

F. This Agreement, and the Release of Claims, will not prevent KRAMER from filing any future administrative charges with the United States Equal Employment Opportunity Commission (EEOC) or a state fair employment practices (FEP) agency, nor from participating in or cooperating with the EEOC or a state FEP agency in any investigation or legal action undertaken by the EEOC or the state FEP agency. However, this Agreement, and the Release of Claims, does mean that KRAMER may not collect any monetary damages or receive any other remedies from charges filed with or actions by the EEOC or a state FEP agency.

 

6.                                      KRAMER will not disclose or discuss the terms or existence of this agreement with anyone other than his attorney, accountants, and/or his immediate family members except as required by law or in any dispute over the breach of this Agreement. GANNETT will not disclose or discuss the terms or existence of this Agreement with anyone other than its attorneys, accountants, directors, officers, or employees (as necessary), except in any dispute over the breach of this Agreement, as may be required by SEC or other government rule or regulation, or as otherwise required by law.

 

7.                                      KRAMER will not make any statements, oral or written, or cause or allow to be published in his name, or under any other name, any statements, interviews, articles, editorials or commentary (oral or written) including blog posts and posts in any social media space, that is intended to be or would reasonably be expected to be understood to be critical or disparaging of Gannett Co., Inc., any product or service of Gannett Co. Inc. or its subsidiary, related or affiliated companies, or any officers, employees or directors of Gannett Co., Inc. GANNETT will not make any statements, oral or written, or cause or allow to be published in its name, or 

 

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under any other name, any statements, interviews, articles, editorials or commentary (oral or written) including blog posts and posts in any social media space, that is intended to be or would reasonably be expected to be understood to be critical or disparaging of KRAMER.

 

8.                                      The Termination Benefits Agreement dated May 14, 2012 and extended through July 31, 2015, and referenced above includes as an integral part of its terms and conditions certain provisions that are intended to survive the employment relationship, including but not limited to Restrictive Covenants (Section 9), Confidentiality (Section 10), Section 409A (Section 11), and recoupment (Section 12).  KRAMER recognizes and affirms his obligations under those post-employment provisions.

 

9.                                      The terms of this Agreement are severable, and if for any reason any part of this Agreement shall be found to be unenforceable, the remaining terms and conditions shall be enforced in full.

 

10.                               KRAMER and GANNETT agree that this Agreement, along with the previously referenced and identified Offer Letter and Termination Benefits Agreement, contain all the details of the agreements between them concerning their respective rights and obligations associated with the ending of KRAMER’s employment. Nothing has been promised to one by the other, either in some other written document or orally, that is not included in this letter. For the purpose if clarity, the payments and benefits provided for herein completely replace and supersede any benefits that might otherwise be available under or pursuant to the Gannett Leadership Team Transitional Severance Plan, the Gannett Co. Inc. Transitional Compensation Plan, and/or any similar transition severance plan put in place for the Gannett/SpinCo leadership team at the time of or subsequent to the Spin.

 

11.                               This Agreement will remain open and available to KRAMER for up to three (3) weeks, beginning on the date the Agreement was first delivered to him.  Should KRAMER accept all the terms of this offer by signing this Agreement, he may nevertheless revoke this Agreement within seven (7) days after signing it. Notice of revocation must be provided in writing (via letter, fax or email) to counsel for GANNETT, William A. Behan, Senior Vice-President Labor Relations, Gannett Co. Inc., 7950 Jones Branch Drive, McLean VA 22107. In the absence of a revocation by KRAMER, this Agreement shall be effective immediately upon expiration of the 7 day revocation period.

 

12.                               KRAMER acknowledges that he has carefully read this Agreement and understands its terms.  KRAMER also acknowledges that he has had a reasonable opportunity to consider his decision and to consult with an attorney of his choice, that he has voluntarily executed this agreement and that he fully appreciates the effect of doing so.

 

	
 
	
/s/   Lawrence S. Kramer
    	
 
    	
June   8, 2015
    
	
 
	
Lawrence   S. Kramer
    	
 
    	
Date
    
	
 
	
 
    	
 
    
	
 
	
 
    	
 
    
	
 
	
Gannett   Co., Inc.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Gracia C. Martore
    	
 
    	
 
    
	
 
    	
Gracia   C. Martore
    	
 
    	
 
    
	
 
    	
President   and Chief Executive Officer
    	
 
    	
 
    

 

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