Document:

Exhibit 10.1

August 17, 2006

Mr. Theodore S. Alpert

1611 Virginia Avenue

Glendale, CA 91202

Dear
Ted:

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 — Finance and Chief
Financial Officer of Advanstar, based in our Woodland Hills office and
reporting directly to me, or my designee. 
Your effective date of employment will be September 12, 2006.

Your
base salary will be at the bi-weekly rate of $9,615.38 (or $250,000
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 $100,000,
which will be prorated for the remainder of 2006.  Subject to you actually commencing employment
with Advanstar, the terms, conditions and restrictions of the 2000 Management
Incentive Plan of Advanstar Holdings Corp. (“AHC”) and the option agreement with respect thereto, you will be
granted an option to purchase 150,000 shares of AHC’s Common Stock at an
exercise price equal to $10.00 per share.

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.  You will be entitled to
four (4) weeks of vacation per calendar year. 
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.

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) or resign for “Good Reason” (as defined below), you will receive
your base salary in the form of salary continuation for a period of twelve
months.  Any payments made to you
pursuant to the preceding sentence 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 release and covenant not
to

 

 

sue
with respect to any claims against Advanstar Communications, its affiliates and
their respective officers, directors, shareholders and employees prior to the
payment of any severance amount to you. 
The foregoing release would be mutual and would include a release and
covenant not to sue with respect to any claims that Advanstar has against you.

The
term “Cause” means conduct involving one or more of the following: (i)
continuing failure (after notice thereof and a thirty (30) day period to cure
such failure) 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 loss, damage or injury to
Advanstar; (v) the unauthorized 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.

The
term “Good Reason” shall mean any of the following: (i) a breach of any
material provision hereof by Advanstar which remains uncured after thirty (30)
days written notice; (ii) a materially significant diminution in your duties;
or (iii) the relocation of your principal office to a place which is more than
fifty (50) miles from Advanstar’s office located at 6200 Canoga Avenue, Suite
200, Woodland Hills, California.

Please
sign a copy of this letter as indicated below and return the signed copy to me
by fax to 818/593-5024.  The original
should be sent to 6200 Canoga Avenue, Suite 200, Woodland Hills, CA 91367 by
overnight courier.

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 and Agreement:

I
acknowledge that, except as contained in this letter agreement, 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.

I hereby agree to be bound by the terms, conditions and
provisions of this letter agreement.

	
  Signature: 

  	
  /s/ Ted
  S. Alpert

  	
   

  	
  Date: 

  	
  August 18, 2006

  
	
  Theodore S. Alpert

  	
   

  	
   

  

 

 

 2Exhibit
10.2

SEPARATION AGREEMENT

In
consideration of the mutual covenants contained herein, Advanstar
Communications Inc. (“Advanstar”), a New York corporation having an office at
6200 Canoga Avenue, Suite 200, Woodland Hills, California, and Mr. David W.
Montgomery (“Mr. Montgomery”), an individual residing at 3221 Lady Nicole Lane,
Duluth, Minnesota, hereby agree as follows:

1.             Mr. Montgomery and Advanstar agree
that (a) Mr. Montgomery hereby resigns from his current positions as Vice
President — Finance, Chief Financial Officer and Secretary of Advanstar and any
and all of its affiliates effective September 11, 2006 (the “Resignation Date”);
and (b) Mr. Montgomery’s employment with Advanstar will terminate effective
October 31, 2006 (the “Effective Date”). 
Mr. Montgomery will continue in his current position through the
Resignation Date and agrees to satisfactorily perform the duties assigned to
him by the Chief Executive Officer of Advanstar between the date hereof and the
Effective Date, which will involve the transitioning of his duties and
responsibilities as Chief Financial Officer of Advanstar to his successor.  Commencing on the Resignation Date, Mr.
Montgomery will be based out of his Duluth, Minnesota, home office.  Mr. Montgomery will receive his current base
salary in the normal course for the period through the Effective Date.  Mr. Montgomery will also receive pay for any
accrued and unused 2006 calendar year vacation as of the Effective Date.  All employee benefits will cease on the
Effective Date, except that medical, vision and dental insurance will continue
as described in paragraph 3 below.

2.             Advanstar will (a) pay to Mr.
Montgomery the gross amount of $250,000.00 on the Effective Date as a bonus in
consideration for the provision of the transition services described in the
preceding paragraph; and (b) continue to pay to Mr. Montgomery his current base
salary in the normal bi-weekly course for a period of twelve (12) months after
the Effective Date as severance; provided, however, that such payments shall
not be made or commence prior to the date on which this Agreement becomes final
and effective pursuant to paragraph 18 hereof.

3.             Mr. Montgomery’s participation in
medical, vision and dental insurance plans, if applicable, will continue through
October 31, 2006.  Mr. Montgomery will be
informed by separate letter of his right to continued medical and dental
coverage on a fully contributory basis after the Effective Date pursuant to
COBRA.  If Mr. Montgomery, on a timely
basis, elects and pays the monthly premiums for COBRA coverage, Advanstar will
reimburse Mr. Montgomery in the gross amount (minus applicable tax
withholdings) of the COBRA premiums paid for a period of 12 months (or such
shorter period until Mr. Montgomery becomes eligible to and participates in a
subsequent employer’s group medical and dental plans).  Such reimbursements will occur at the time of
and in conjunction with the next available payroll processing after receipt of
the particular monthly COBRA premium.

4.             Other than as expressly provided in
paragraphs 1-3, no payments will be due or made to Mr. Montgomery for salary,
bonus, commissions, stock options, benefits, severance, separation, vacation,
personal days or otherwise.  All normal
deductions for tax withholding will be made from all payments made to Mr.
Montgomery.

5.             Mr. Montgomery expressly agrees to
cooperate with Advanstar in transferring all information on business matters
handled by Mr. Montgomery during his employment with Advanstar.  Mr. Montgomery warrants and covenants to
Advanstar that (a) he will deliver to Advanstar no later than the Effective
Date all property of Advanstar that was or is in his possession or under his
control; and (b) he has not incurred and will not incur any unauthorized credit
card charges or other liabilities of any nature for which Advanstar may be
liable.

 

 

6.             Mr. Montgomery acknowledges that
during the term of his employment with Advanstar he has had access to
confidential and proprietary information of Advanstar, including, without
limitation, financial, marketing, sales, operating and other business data
(collectively “Confidential Information”). 
Mr. Montgomery agrees not to use or disclose to any third party
(including, but not limited to, any subsequent employer of Mr. Montgomery) any
of the Confidential Information.

7.             Mr. Montgomery will refrain from
disparaging or otherwise discrediting Advanstar or any of its businesses or
employees.  Advanstar will refrain from
disparaging or otherwise discrediting Mr. Montgomery.

8.             Mr. Montgomery agrees that if he
seeks re-employment with Advanstar at any time in the future, Advanstar will
have no obligation to employ him.

9.             Except for claims of breach of this
Agreement, Mr. Montgomery, for himself, his executors, heirs and assigns, hereby
releases and forever discharges Advanstar, Advanstar, Inc., Advanstar Holdings
Corp., and/or any of their successors, assigns, affiliates, subsidiaries,
officers, directors, employees, representatives and agents (collectively, “Released
Parties”) in respect of any and all agreements, contracts, benefit plans,
damages, liabilities and claims whatsoever, whether known or unknown, both in
law and in equity, which Mr. Montgomery now has or ever had against any of the
Released Parties, including, but not limited to, those arising out of or
relating to his employment by Advanstar, any grant of stock options in
Advanstar Holdings Corp. by Award Agreements dated October 11, 2000, and May
20, 2002 (collectively, the “Award Agreement”), and/or the termination or any
other aspect of that employment (the “Released Claims”).  Mr. Montgomery hereby waives any claims he
may have for damages or equitable relief arising out of or relating to his
employment with Advanstar and/or the termination of that employment, including but
not limited to compensatory or punitive damages, reinstatement, attorneys’
fees, back pay and forward pay. 
Notwithstanding the foregoing, Mr. Montgomery’s right to receive the
protection of indemnification and/or contribution as an officer and/or employee
of Advanstar with respect to any liability incurred by him as an officer or
employee of Advanstar, as well as his right to coverage under any Advanstar
liability insurance policies, is expressly excluded from the foregoing release.  After the Effective Date Mr. Montgomery shall
(a) be indemnified by the Company as provided in Section 145 of the Delaware
General Corporation Law and the parallel provisions of the New York Business
Corporation Law or (but not to any lesser extent) as authorized by the certificates
of incorporation, articles of incorporation, charter documents or bylaws of
Advanstar and/or its affiliates in effect as of the Effective Date, and such
indemnification shall continue for the period of any applicable statute of
limitations or, if longer, for the period in which any proceeding which
commenced within the period of any such statute of limitations is pending; and
(b) remain eligible for coverage under all liability insurance policies
(including, without limitation, all D&O insurance policies) maintained by
Advanstar as of the Effective Date, subject, however, to the terms, conditions,
exclusions and limitations of such policies.

10.           Mr. Montgomery acknowledges that the
Released Claims include, without limitation, those for breach of contract,
tort, or arising under any state and/or federal equal employment opportunity
laws or statutes prohibiting discrimination on the basis of race, national
origin, gender, age, marital status, religion, sexual orientation, disability
or handicap, including, without limitation, Title VII of the Civil Rights Act
of 1964, the Employee Retirement Income Security Act of 1974, as amended
(ERISA), the Family and Medical Leave Act of 1993, the Age Discrimination in
Employment Act of 1967, as amended (ADEA), the Older Workers Benefit Protection
Act of 1990 (OWBPA) and the Americans with Disabilities Act of 1991 (ADA).  In addition, Mr. Montgomery expressly waives
all rights afforded by any statutory provisions prohibiting the release of
unspecified claims and acknowledges that this release

 

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includes
all claims in his favor, including those of which he may be unaware at the time
of executing this Agreement.

11.           Mr. Montgomery confirms that no
charge, complaint or action brought by or on behalf of Mr. Montgomery exists in
any forum or form against any of the Released Parties.  In the event that any such claim, charge,
complaint or action is filed, Mr. Montgomery agrees that he waives any and all
rights to any relief or recovery therefrom, both in law and in equity,
including without limitation compensatory or punitive damages, reinstatement,
attorneys fees, back pay and forward pay, except as prohibited by law.

12.           Except for claims of breach of this
Agreement, Advanstar for itself, its successors and assigns and affiliates (“ACI”),
hereby releases and forever discharges Mr. Montgomery of and from (a) all of
his duties, covenants, obligations and agreements under the Award Agreement;
provided, however, that Mr. Montgomery acknowledges and agrees that,
notwithstanding the foregoing, the duties, covenants, obligations and
agreements of Mr. Montgomery pursuant to Section 8(b) of the Award Agreement
relating exclusively to “soliciting, interfering with or endeavoring to entice
away any employee of [Advanstar] or any of its Subsidiaries” shall continue in
full force and effect.  For the avoidance
of doubt, Advanstar acknowledges and agrees that Mr. Montgomery is released and
forever discharged of and from the non-competition duties, covenants, obligations
and agreements set forth in Section 8(b) of the Award Agreement; and (b)
subject to the limitations in subsection (a) of this Section 12, any and all
claims whatsoever, whether known or unknown, both in law and in equity, which
ACI now has or ever had against Mr. Montgomery, except for any claims ACI might
otherwise have against Mr. Montgomery to recover any damages, fines, losses or
expenses ACI may suffer arising out of: (i) any breach by Mr. Montgomery of his
fiduciary duty of loyalty; (ii) any intentionally dishonest, fraudulent or
criminal conduct committed by Mr. Montgomery in the course of his employment;
(iii) any actions intentionally taken by Mr. Montgomery in the course of his
employment which are beyond the scope of his authority; or (iv) Mr. Montgomery
making a knowingly and consciously false so-called “Section 302” or “Section
906” certification of any ACI document filed with the SEC.

13.           Mr. Montgomery has been informed that
he has or might have specific rights and/or claims against Advanstar under the
ADEA.  Mr. Montgomery agrees that: (a) he
specifically waives such rights and/or claims to the extent that such rights
and/or claims arose prior to or on the date this Agreement was executed; (b) he
understands that rights or claims under the ADEA that may arise after the date
this Agreement is executed are not waived by Mr. Montgomery; (c) Mr. Montgomery
hereby is and was advised of his right to consult with his counsel of choice
prior to executing this Agreement; and (d) Mr. Montgomery acknowledges that he
has not been subject to any undue or improper influence interfering with the
exercise of his free will in executing this Agreement.

14.           Mr. Montgomery acknowledges that when
this Agreement was presented to him on August 23, 2006, he was informed that he
had 21 days to review this Agreement and consider its terms before signing
it.  Mr. Montgomery further acknowledges
that the 21 day review period is not and will not be affected or extended by
any revisions, whether material or immaterial, that might be made to this
Agreement.

15.           If any of the provisions, terms, or
clauses of this Agreement are declared illegal, unenforceable, or ineffective
in a legal forum, those provisions, terms and clauses shall be deemed
severable, such that all other provisions, terms and clauses of this Agreement
shall remain valid and binding upon both parties.  However, the illegality or unenforceability
of any such provision shall have no effect upon, and shall not impair, the
enforceability of the release language set forth in paragraphs 9, 10 and 11;
provided that, upon a finding by a court of competent jurisdiction that the
release language found in paragraphs 9, 10 and/or 11 is unenforceable,
Advanstar shall rewrite this Agreement to cure the defect and Mr.

 3
 

 

 

Montgomery
shall execute the rewritten agreement upon request of Advanstar without any
additional monies, benefits and/or compensation therefor.

16.           Both Mr. Montgomery and Advanstar
agree that this Agreement and the terms contained herein will remain strictly
confidential between the parties and, except as required by law, will not be
disclosed by either party under any circumstances other than to immediate
family members of Mr. Montgomery, his financial or legal advisors or
governmental agencies acting within the scope of their investigative authority.

17.           Mr. Montgomery agrees that neither
this Agreement nor the provision of the consideration for the general release
contained in this Agreement shall be deemed or construed at any time for any
purpose as an admission by Advanstar of any liability or unlawful conduct of
any kind.

18.           Mr. Montgomery understands that he
has seven (7) calendar days following his signing of this Agreement to revoke
the Agreement, and the Agreement shall not become enforceable until that seven
day period has expired, whereupon it will become final, binding and
irrevocable.  Should Mr. Montgomery elect
to revoke this Agreement during such seven day period, then this Agreement
shall be null and void.  Any such attempt
by Mr. Montgomery at revocation shall only be effective if documented in a
written document signed by Mr. Montgomery which states: “I hereby revoke my
acceptance of the Separation Agreement dated ________, 2006.”  This written revocation must be delivered by
hand or sent by certified mail or by overnight mail next business day delivery
service with a postmark or shipment date prior to the end of the seven day
revocation period to Advanstar Communications Inc. c/o Ward D. Hewins, General
Counsel, Advanstar Communications Inc., 9 Damonmill Square, Suite 6A, Concord,
MA 01742, otherwise the revocation will not be effective.  No payments will be made to Mr. Montgomery
under paragraphs 2 or 3 until the revocation period has expired.

19.           This Agreement constitutes the entire
agreement between the parties and supersedes all prior written or oral
communications, understandings or agreements regarding the subject matter
hereof.  This Agreement may not be
altered or amended in any respect except in a writing executed by both parties.

20.           This
Agreement shall be binding upon and inure to the benefit of Mr. Montgomery and
his heirs and legal representatives and to Advanstar and its successors or
assigns.  Successors of Advanstar shall
include, without limitation, any company or companies acquiring, directly or indirectly,
all or substantially all of the assets of Advanstar, whether by merger,
consolidation, purchase, lease or otherwise, and such successor shall
thereafter be deemed “Advanstar” for the purpose hereof.

21.           The
parties acknowledge and agree that because Advanstar’s principal corporate
office is located in the State of New York that this Agreement shall be
governed by, and interpreted for all purposes consistent with, the laws of the
State of New York without regard to its conflicts of laws provisions.  The parties to this Agreement (i) further
agree that the exclusive venue for any judicial proceeding between or among
them shall be in the state or federal courts located in Minneapolis, Minnesota
and (ii) expressly consent to the jurisdiction of the Minnesota courts.

22.          Mr. Montgomery
acknowledges that (i) he has carefully read and fully understands the
provisions of this Agreement, (ii) he has not relied upon any representation or
statement, written or oral, not contained herein, (iii) his right to receive
certain benefits set forth in this Agreement is subject to his compliance with
the terms and conditions set forth in this Agreement and that he would not
receive such benefits but for his execution of this Agreement; and (iv) he is
voluntarily executing this Agreement.

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  DAVID W. MONTGOMERY

  	
  ADVANSTAR COMMUNICATIONS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed: 

  	
  /s/ David W.
  Montgomery

  	
   

  	
  By: 

  	
  /s/ Joseph Loggia

  
	
   

  	
  Name: Joseph Loggia

  
	
  Dated: August
  28. 2006

  	
  Title: Chief Executive Officer

  
					

 

 

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