Document:

Exhibits
10.26

 

SEPARATION
AND RELEASE AGREEMENT

 

This Separation
and Release Agreement (“Agreement”) by and between David Ferm  (“Executive”) and PRIMEDIA Inc. (the
“Company”), dated as of December 31, 2003 and executed on the date specified
below (the date of execution by the Executive hereinafter referred to as the
“Execution Date”).

 

RECITAL

 

Executive and Company desire to reach a mutual
understanding and acceptance of the terms and conditions related to Executive’s
cessation of employment with Company.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
mutual promises and covenants herein contained it is hereby agreed as follows:

 

1.             Cessation
of Employment.  Executive shall
cease to be an employee of Company as of December 31, 2003 (“Separation Date”).

 

2.             Payments.  In consideration of Executive’s acceptance
of this Agreement, on  the later of
January 15, 2004 or the expiration of the Revocation Period, as hereinafter
defined, (the “Payment Date”), Executive shall be entitled to receive and shall
be paid the following payments by the Company in respect of giving up future
employment.

 

(a) Salary.  $750,000, an
amount equal to twelve (12) months’ base salary at Executive’s current rate of
pay.

 

(b)  2003 Annual Bonus
Payment.  $450,000 with respect to the
Executive’s annual incentive award payable under PRIMEDIA’s annual incentive
plan (the “Annual

 

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Incentive Award”) (based on a target Annual Incentive
Award equal to 65% of the Executive’s $750,000 base salary) in respect of
PRIMEDIA’s fiscal year ending December 31, 2003 (the “Bonus Amount”), provided
however in the event that the amount calculated as Executive’s actual Annual
Incentive Award exceeds $450,000, such excess, if any, will be paid to the Executive
when all other bonuses of senior executives of PRIMEDIA Magazines Inc. are
paid.

 

(c) Additional Payment. 
PRIMEDIA will pay to Executive a lump sum payment equal to $30,000,
which amount represents payment in full of Executive’s earned special or
milestone bonus for 2003.

 

3.  Accrued Rights.  Promptly following the Termination Date,
PRIMEDIA will pay to Executive a lump sum payment equal to the sum of (i) any
unpaid Base Salary accrued through the Separation Date, (ii) all accrued but
unused vacation days, and (iii) the amount of any unreimbursed business
expenses incurred by Executive in accordance with Company policy prior to the
Separation Date.

 

4.  Tax Withholding.  All payments made under Sections 2 and 3
shall be treated as supplemental wage payments for purposes of federal, state
and local tax withholding.  PRIMEDIA may
withhold from any amounts payable under this Agreement the minimum amount of
Federal, state and local income, employment and other taxes required to be
withheld in respect of supplemental wage payments (which, as of the date
hereof, was 25% of any such payment for federal tax purposes), provided however
that with respect to payments under Sectioin 2 as such payments are payments in
respect of Executive giving up future employment, no New York State
withholdings shall be deducted.

 

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5.  Attorneys Fees.  PRIMEDIA will pay to Paul, Hastings, or
reimburse Executive, for all reasonable fees (including costs and expenses
incurred thereby) of legal counsel for such counsel’s legal services provided
to Executive in connection with the negotiation and settlement of the subject
matter contained in this Agreement, within thirty (30) days after receipt of a
bill for all such services.

 

6..  Stock Options.  With respect to the outstanding options to
purchase shares of common stock of PRIMEDIA held by Executive as of the date
hereof (the “Options”), notwithstanding the provisions of any of the option
award agreements pursuant to which Executive was granted such options effective
as of the Separation Date, all of the Options having a $1.85 exercise price
that have not already vested as of the Separation Date shall vest and become
fully exercisable.

 

7.  Other Employee Benefits.

 

(a)  Group Health Coverage.  Effective as of the Separation Date,
PRIMEDIA shall continue to provide Executive and his eligible dependents with
medical, dental and vision benefits pursuant to PRIMEDIA’s health and dental
benefit program until the expiration of the eighteen month period commencing on
the Separation Date.  Notwithstanding
the foregoing, as a condition to receiving the benefits hereunder, Executive
and his eligible dependents shall elect to receive group health benefit
coverage from PRIMEDIA as permitted pursuant to the Consolidated Omnibus
Reconciliation Act of 1985, as amended (“COBRA”), which coverage shall begin on
the Separation Date and run through the eighteen month period provided pursuant
to COBRA.  Executive shall not be
required to pay for such coverage.

 

(b)  Other Benefits.  If Executive is currently participating in
the PRIMEDIA Thrift and Retirement Plan (the “PRIMEDIA Plan”), from and after
the Separation Date,

 

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Executive shall cease to be an active participant in
the “PRIMEDIA Plan”.  The vested value
of Executive’s account balance under the PRIMEDIA Plan will be paid to
Executive by separate check issued by the Trustee of the PRIMEDIA Plan in
accordance with the provisions of the Plan; provided, however, that if the
vested value of Executive’s account balance under the PRIMEDIA Plan is greater
than $5,000 (excluding rollover money in Executive’s account), Executive shall
have the option to keep its vested balance in the Plan pursuant to the terms of
the Plan.  It is understood that the
release set forth in this Agreement shall not apply to any rights arising out
of the computation or distribution of Executive’s account balance.

 

8.  Releases.

 

(a) Executive for
Executive, Executive’s heirs, executors, administrators and assigns, hereby
unconditionally releases, discharges and acquits Company, its subsidiaries,
parents, and affiliates, and each of them, and their respective officers,
directors, shareholders, partners, employees, agents and affiliates, and each
of them (hereinafter collectively referred to as “Releasees”) from any and all
debts, agreements, promises, liabilities, claims, damages, actions, causes of
action, or demands of any kind or nature including without limitation all
claims of wrongful discharge, breach of contract, intentional infliction of
emotional distress, breach of alleged implied covenant of good faith and fair
dealing, invasion of privacy, defamation, and age or sex discrimination, or
discrimination based on any other ground, including but not limited to those
arising under the Age Discrimination in Employment Act, as amended, Title VII
of the Civil Rights Act of 1964, the Executive Retirement Income Security Act
of 1974, the Fair Labor Standards Act, as amended, the Americans with

 

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Disabilities Act and the Family and Medical Leave Act
of 1993 and all other federal, state and local equal employment, fair
employment, civil or human rights laws, codes and ordinances, regardless of
whether such claims are past, present, or future, personal or representative,
known or unknown, or arising out of any occurrence to date and expressly
including but not limited to any liability arising out of or in connection with
the employment of Executive by Company, or the termination hereof, and claims
for attorneys’ fees and costs, and any and all forms of compensation, including
without limitation any amounts payable under the Executive’s Employment
Agreement dated February 22, 2000, as amended (the “Employment Agreement”), any
incentive awards or bonuses, relating to such employment, other than as
specifically set forth in this Agreement.

 

(b)  It is
understood and agreed that the releases set forth in clause (a) above  are intended as and shall be deemed to be a
full and complete release of any and all claims that Executive may have against
the Company arising out of any occurrence arising on or before the date of this
Agreement and said release is intended to cover and does cover any and all
future damages not now known to Executive or which may later develop or be
discovered, including all causes of action therefor and arising out of or in
connection with any occurrence arising on or before the date of this Agreement.  For purposes of clarity, the release in the
preceding paragraph is intended to include and does include (i) a release by
Executive of any claims Executive may have that could be a part of the class
action lawsuit Harrell v. PRIMEDIA Inc. et al, in the United States District Court,
Central District of California, Case No. 01-07006 (the “Harrell Class Action”)
and (ii) an irrevocable waiver of Executive’s right to participate as a class
member in the Harrell Class Action.

 

(c).  By signing and returning this Agreement,
Executive acknowledges that Executive:

 

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(i)            has carefully read and fully
understands the terms of this Agreement;

 

(ii)           is entering into
this Agreement voluntarily and knowing that Executive is releasing claims that
Executive has or believes Executive may have against Company;

 

(iii)          has hereby been
advised by this Agreement that Executive has the right to consult with an
attorney of Executive’s choosing prior to signing this Agreement; and

 

(iv)          is giving this release of claims in
return for consideration to which Executive otherwise would not have been
entitled, to wit, any compensation and benefit enhancements beyond those that
Executive would otherwise be entitled to pursuant to the Company’s policies and
practices.

 

(d)  Executive hereby covenants not to sue or
bring any claim against Releasees and acknowledges and agrees that this general
release may be pleaded as a full and complete defense to, and may be used as
the basis for an injunction against, any action, claim, suit or other
proceeding which may be instituted, prosecuted or attempted in breach of this
release.

 

9.  Non-Disparagement.  Executive promises not to make any
statement, written or oral, directly or indirectly, which in any way disparages
Company or any of its affiliates or their publications, or the employees,
officers, directors or shareholders of any of them.  Executive promises to maintain this Agreement in strict
confidence and to make no disclosure of the terms of this settlement to any third
party, provided, however, that nothing herein contained shall prohibit

 

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Executive from disclosing the terms of this Agreement as may be
required by law.  Notwithstanding
anything herein to the contrary, the foregoing shall in no way limit the effect
of the release set forth above.

 

10,  The
Company and Executive agree that the Agreement Not to Compete set forth in
Section 8 (a) of the Employment Agreement is amended to read and provide as
follows:

 

(a)          “Non-Compete, No
Hire.  Through December 31, 2004:

 

(i) You (Executive) agree not to accept employment
with, or provide services to, any person, firm or corporation that publishes
magazines that compete with magazines published on the date hereof by PRIMEDIA
Consumer Magazines and Media excluding New York Magazine.

 

(ii) You agree not to yourself or for and on behalf of
any person, firm or corporation for which you provide services, solicit for
employment or hire any employee employed by any of the Company’s businesses to
which you rendered services during the term of your employment with the
Company.”

 

11.  Company Property.  Except as specifically set forth in this
Agreement to the contrary, Executive agrees to return all Company property in
Executive’s possession to Company on or before the Separation Date.  Executive acknowledges receipt of the Notice
on Conclusion of Employment, attached hereto as Exhibit “A”.  Executive understands and agrees that any
disclosure in contravention of this Agreement or Notice on Conclusion of
Employment may release Company from any obligations it may have to Executive
under this Agreement.

 

12.  Indemnification.  Executive agrees to indemnify and hold
harmless the Company from any claims made or assessed, including interest and
penalties, by any Federal, state or local governmental agency or taxing
authority which claim asserts, that the Company improperly withheld

 

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from the amounts
payable to Executive under this Agreement. 
Upon receipt of any such claim by the Company, the Company shall give
Executive reasonable notice and an opportunity to defend such claim on behalf
of the Company.  Unless Executive shall
have satisfactorily paid, settled or gotten dismissed any such claim within 90
days of receipt of notice from the Company, the Company shall have the right to
pay such claim in full and claim the amount so paid from Executive.

 

13.  Entire Agreement.  This Agreement sets forth the entire
agreement between the parties regarding Executive’s separation from Company,
supersedes any prior written, oral or implied agreement between the parties
hereto regarding the subject matter hereof and may only be amended by a written
agreement signed by the parties hereto. 
Notwithstanding the foregoing, the provision of Section 8 of the
Employment Agreement, as amended by this Agreement, shall remain in full force
and effect.

 

14.  No Publicity.  Executive agrees and understands that
neither the content nor the execution of this Agreement shall constitute or be
construed as any implied or actual admission by Company of any liability to or
of the validity of any claim by Executive that Executive is entitled to
additional compensation or continued employment with the Company or that the Company
engaged in any wrongdoing.

 

15.  Executive’s Determination.  Executive hereby represents and agrees that
in entering into this Agreement, Executive has relied solely upon Executive’s
own judgment, belief and knowledge and Executive’s own legal and other
professional advisors and that no statement made by or on behalf of Company has
in any way influenced Executive in such regard.

 

16.  No Claims Assigned.  Executive hereby represents and warrants to
Company that Executive has not assigned any claim Executive may or might have
against Company to any third party.

 

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17.  Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

 

18.  Full Settlement.  It is agreed by each of the parties hereto
that they have read the above and fully understand the terms of this Agreement
which they voluntarily execute in good faith and deem to be a full and
equitable settlement of this matter.

 

19.  Separability.  The provisions of this Separation and
Release Agreement are severable.  If any
provision of the Separation and Release Agreement is declared invalid or
unenforceable, the ruling will not affect the validity and enforceability of
any other provision of the Separation and Release Agreement.

 

20.  Review Right.  Executive may review and consider this
Agreement for a period of up to forty-five (45) days from the date of this
Agreement.  Executive agrees and
understands that Executive’s failure to execute this Agreement and to return
this signed document on or before forty-five (45) days after the date of this
Agreement will release Company from any obligation to enter into this
Agreement.

 

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21.  Revocation.  Executive shall be entitled to revoke this
Agreement within seven (7) days after Executive’s timely execution of same by
delivering a written revocation to Company. 
If Executive so revokes or if Executive fails to execute this document,
this Agreement shall be null and void and of no force and effect and the
provisions of the Employment Agreement shall control the Executive’s cessation
of employment effective December 31, 2003.

 

	
  Agreed and Accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ David Ferm

  	
   

  	
  Dated: 
  January 6, 2003

  	
   

  
	
  David Ferm

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Agreed and Accepted for PRIMEDIA Inc.:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Beverly C. Chell

  	
   

  	
  Dated: 
  January 5, 2003

  	
   

  
	
  Name: 
  Beverly C. Chell

  	
   

  	
   

  
	
  Title: Vice Chairman

  	
   

  	
   

  

 

10

 

EXHIBIT “A”

 

NOTICE ON CONCLUSION OF EMPLOYMENT

 

In connection with the conclusion of employment with PRIMEDIA Inc.
and/or its subsidiaries and affiliates (“Company”), each employee has an
obligation to surrender and return to Company all mail, files, records,
manuals, books, blank forms, tapes, discs, photographs, negatives, documents,
letters, memoranda, notes, notebooks, materials, property, reports, data
tables, calculations, information or copies thereof, which are the property of
Company or which relate in any way to the business, products, practices or
techniques of Company and all other property, trade secrets or confidential
information of Company and any third parties with whom it deals, including but
not limited to, all keys, passwords, combinations and documents which in any of
these cases are in the employee’s possession or under the employee’s control.

 

The employee also has a continuing obligation to preserve as CONFIDENTIAL
and refrain from using, trade secrets or confidential information concerning
the business, products, practices or techniques of Company and any third
parties with whom it deals, including but not limited to, manuscripts,
photographs, techniques, systems, designs, research, processes, inventions,
developments, proposals, plans, publications, computer programs, user manuals
and documentation, products (whether or not copyrighted or copyrightable, or
patented or patentable), marketing and merchandising methods, subscriber,
circulation, customer or supplier lists, business, accounting and financial
information of Company, that has been disclosed to or is known to the Executive
by reason of employment by Company, and to refrain from acts or omissions that
would reduce the value of such trade secrets and confidential information to
Company.

 

11Exhibit 10.29

 

SEPARATION AGREEMENT

 

This Separation Agreement
(“Agreement”), dated as of December 2, 2003, is entered into by and between
Charles G. McCurdy (“McCurdy”) and PRIMEDIA Inc. (together with its
subsidiaries and affiliates, “PRIMEDIA”) (which, together with its successors,
subsidiaries, officers, directors and each holder, directly or indirectly (as
of the date of this Agreement), of at least ten percent (10%) of the
outstanding common stock of PRIMEDIA (the “Shareholders”), are collectively referred
to as the “Beneficiaries”).

 

WHEREAS, PRIMEDIA and
McCurdy entered into an Employment Agreement, dated as of April 19, 2002 (the
“Employment Agreement”); and

 

WHEREAS, McCurdy has
provided PRIMEDIA with a notice of resignation of his employment with PRIMEDIA
dated November 1, 2003 (the “Trigger Date”), effective as of November 30, 2003
(the “Termination Date”), pursuant to Section 12(d) of the Employment
Agreement; and

 

WHEREAS, effective as of the
Termination Date, McCurdy’s employment with PRIMEDIA shall terminate; and

 

WHEREAS, McCurdy and
PRIMEDIA, on behalf of all the Beneficiaries, have agreed to resolve and settle
any and all of their disputed claims and all differences between them with
respect to events occurring on or prior to the Termination Date, including, but
in no way limited to, any differences that might arise in connection with
McCurdy’s employment with PRIMEDIA, McCurdy’s rights as an equityholder of
PRIMEDIA, and the termination of McCurdy’s employment; and

 

NOW, THEREFORE, in consideration
of the recitals, promises, and other good and valuable consideration specified
herein, the receipt and sufficiency of which is hereby acknowledged, McCurdy
and PRIMEDIA, on behalf of all the Beneficiaries, agree as follows:

 

1.             PAYMENTS AND BENEFITS

 

1.1           Payments.  PRIMEDIA will pay to McCurdy the following
amounts at the times and periods specified in this Section, in consideration
for McCurdy entering into this Agreement, specifically including the General
Release (as described in Section 2 below) and other restrictive covenants
identified herein:

 

(a)           Continuation of Employment Through
Termination Date.  Effective as of
the Trigger Date through the Termination Date, PRIMEDIA shall continue to
provide McCurdy with (i) payment of his current base salary, in accordance with
PRIMEDIA’s normal payroll practices, and (ii) continued coverage under all
employee benefit plans and provision of all welfare, pension and fringe
benefits to which McCurdy was entitled to receive thereunder immediately prior
to the date of this Agreement.  In
addition to the foregoing, and notwithstanding anything set forth in Section
2.2 of this Agreement to the contrary, on December 5, 2003, PRIMEDIA shall
provide McCurdy with a lump sum payment equal to the amount of McCurdy’s current
base salary that would have been payable to McCurdy in respect of the period
commencing on the Termination Date and ending on December 5, 2003, if McCurdy
had continued to be employed by PRIMEDIA during such period.

 

(b)           Base Salary Severance Payments.  Subject to the expiration of the Revocation
Period (as defined in Section 2.2 below), on January 5, 2004, PRIMEDIA will pay
to McCurdy a lump sum payment equal to $1,477,304, which amount represents the
present value of McCurdy’s current rate of annual base salary ($750,000)
otherwise payable to McCurdy in

 

 

substantially
equal installments over the twenty-four month period following the Termination
Date, which present value will be calculated using as the discount rate the
Applicable Federal Rate specified under Section 1274 of the Internal Revenue
Code of 1986, as amended (the “Code”) for short-term Treasury obligations (as
published by the Internal Revenue Service for the month in which such
termination occurs) (the “Discount Rate”), pursuant to and payable in
accordance with Section 12(d)(ii) of the Employment Agreement (the “Base
Salary Payment”).

 

(c)           2003 Pro rata Annual Bonus Payment.  Subject to the expiration of the Revocation
Period, on January 5, 2004, PRIMEDIA will pay to McCurdy, in a lump sum, an
amount equal to $446,875, which amount represents eleven/twelfths of McCurdy’s
target annual incentive award payable under PRIMEDIA’s annual incentive plan
(the “Annual Incentive Award”) (based on a target Annual Incentive Award equal
to 65% of McCurdy’s current base salary) in respect of PRIMEDIA’s fiscal year
ending December 31, 2003 (“the “Pro rata Bonus Amount”).

 

(d)           Target Bonus Payments.  Subject to the expiration of the Revocation
Period, on January 5, 2004, PRIMEDIA will pay to McCurdy a lump sum payment
equal to $960,247, which amount represents the present value of the target
Annual Incentive Award (based on a target Annual Incentive Award equal to 65%
of McCurdy’s current base salary) in respect of the fiscal year ending December
2003 otherwise payable to McCurdy over the twenty-four month period following
the Termination Date in accordance with Section 12(d)(iv) of the Employment
Agreement, which present value will be calculated using the Discount Rate.

 

(e)           Additional Payment.  Subject to the expiration of the Revocation
Period, on January 5, 2004, PRIMEDIA will pay to McCurdy a lump sum payment
equal to $225,000, which amount represents a special bonus payable in respect
of McCurdy’s services performed in connection with the restructuring of
PRIMEDIA.

 

(f)            Accrued Rights.  Promptly following the Termination Date,
PRIMEDIA will pay to McCurdy a lump sum payment equal to the sum of (i) any
unpaid Base Salary accrued through the Termination Date, (ii) $57,642 in
respect of all accrued but unused vacation days, and (iii) the amount of any
unreimbursed business expenses incurred by McCurdy in accordance with Company
policy prior to the Termination Date.

 

(g)           Attorneys Fees.  PRIMEDIA will pay to McCurdy’s counsel,
Cadwalader Wickersham & Taft, or reimburse McCurdy for all reasonable fees
(including costs and expenses incurred thereby) of McCurdy’s legal counsel for
such counsel’s legal services provided to McCurdy in connection with the
negotiation and settlement of the subject matter contained in this Agreement,
within thirty (30) days after receipt of a bill for all such services.

 

(h)           Indemnification.  PRIMEDIA shall continue to provide McCurdy
with the protections and benefits under, and honor the provisions of, Sections
15(a) and (b) of the Employment Agreement. 
In connection with the foregoing, following the Termination Date and for
so long as PRIMEDIA continues to maintain a directors’ and officers’ liability
insurance policy providing coverage to former executive officers of PRIMEDIA, McCurdy
shall be entitled to coverage under such policy to the extent provided to such
other former executive officers of PRIMEDIA.

 

1.2           Stock Options.

 

With
respect to the outstanding options to purchase shares of common stock of
PRIMEDIA (“Stock”) held by McCurdy as of the date hereof (the “Options”),
notwithstanding the provisions of any of the option award agreements pursuant
to which McCurdy was granted such options (as amended, if

 

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applicable) (the “Option
Agreements”), effective as of the Termination Date: (a) all of the Options that
have not already vested as of the Termination Date shall vest and become fully
exercisable; (b) all of the Options shall remain exercisable until (and may not
be exercised at any time after) the later of (i) the expiration date of the
Options as set forth in the applicable Option Agreements, as if no termination
of employment had occurred and (ii) November 30, 2008; and (c) PRIMEDIA shall
take all corporate action reasonably necessary to provide that all shares of
Stock issued upon exercise of the Options shall, so long as at the time of such
exercise PRIMEDIA is subject to Section 12(g) of the Securities Exchange Act of
1934, as amended, at such time be registered on a Form S-8 (or any successor
forms) under the Securities Act of 1933, as amended.  Except as set forth specifically herein, nothing in this Section
1.2 shall be construed to amend, alter, revise or change any other terms or
conditions of the applicable Option Agreements.

 

1.3           Other Employee Benefits

 

(a)           Group Health Coverage.  Effective as of the Termination Date,
PRIMEDIA shall continue to provide McCurdy and his eligible dependents with
medical and dental benefits pursuant to PRIMEDIA’s health and dental benefit
program provided to senior employees of PRIMEDIA, as in effect from time to
time, as if he had continued to be an active employee commensurate with the
position he held prior to the Termination Date, at such levels as are provided
to senior employees of PRIMEDIA and their eligible dependents from time to time
(“Medical Coverage”) until the earlier of (i) the expiration of the twenty-four
month period commencing on the Termination Date (the “Severance Period”), or
(ii) the date or dates that McCurdy becomes eligible for coverage and benefits
under the plans and programs of a subsequent employer, as applicable.  Notwithstanding the foregoing, (w) as a
condition to receiving the benefits hereunder, McCurdy and his eligible
dependents shall elect to receive group health benefit coverage from PRIMEDIA
as permitted pursuant to the Consolidated Omnibus Reconciliation Act of 1985,
as amended (“COBRA”), which coverage shall begin on the Termination Date and
run through the period provided pursuant to COBRA (the “COBRA Coverage
Period”), which coverage shall be deemed to be satisfied by the provision of
the Medical Coverage through the COBRA Coverage Period, (x) during the
Severance Period, McCurdy shall only be required to pay for the Medical
Coverage at the same rates that McCurdy is required to pay for such coverage
immediately prior to the Termination Date, (y) the Medical Coverage provided to
McCurdy and his eligible dependents by PRIMEDIA under this Agreement shall be
in full satisfaction of PRIMEDIA’s obligations to McCurdy and his eligible
dependents under COBRA, the Employment Agreement and this Agreement, and (z) if
at any time during the Severance Period it is not possible for PRIMEDIA to
provide the Medical Coverage in accordance with this Section 1.3(a), PRIMEDIA
shall pay McCurdy an amount which, after payment by McCurdy of applicable
taxes, is sufficient for him to purchase equivalent benefits, in accordance
with Section 12(d)(vi) of the Employment Agreement.

 

(b)           Other Benefit Plans.  McCurdy hereby acknowledges that the terms
of those PRIMEDIA benefit plans that provide the benefits listed on Schedule A,
attached hereto, do not permit McCurdy to continue to participate in such plans
following the Termination Date.  In
connection with the foregoing and in satisfaction of its obligations under
Section 12(d)(vi) of the Employment Agreement, PRIMEDIA shall provide McCurdy
with cash payments that are sufficient for McCurdy to obtain benefits that are
equivalent to the benefits to which McCurdy was entitled immediately prior to
the Termination Date, as set forth on Schedule A (the “Benefit Payments”).  The Benefit Payments shall be payable in
such amounts, and at such times, as also set forth on Schedule A.  To the extent the Benefit Payments are
subject to Federal, state or local income, employment and other taxes, PRIMEDIA
will provide McCurdy with an additional payment such that, after payment of all
such taxes, McCurdy will retain an amount equal to the corresponding Benefit
Payments.  McCurdy hereby acknowledges
and agrees that the amounts set forth on Schedule A attached hereto are
sufficient for McCurdy to purchase benefits that are

 

3

 

equivalent to those
corresponding benefits that he was eligible to receive immediately prior to the
Termination Date, as identified on Schedule A and are in full satisfaction of
PRIMEDIA’s obligations to McCurdy under Section 12(d)(vi) of the Employment
Agreement.

 

1.4           Fringe Benefits.

 

(a)           Office Accommodations and Secretarial
Stipend.  PRIMEDIA shall: (i) for
the period commencing on the date on which the improvements currently being
made to the office space leased by PRIMEDIA for McCurdy’s benefit at 450 Park
Avenue, New York, New York  (“Leased Office”) are substantially
completed (which shall be completed no later than December 15, 2003), and
ending on the last day of the twenty-fifth month following such date, provide
McCurdy with (x) the Leased Office and (y) such furnishings as are mutually
agreed upon by the parties hereto (including, without limitation, those
furnishings provided to McCurdy by PRIMEDIA prior to the Termination Date and
held in storage for the benefit of McCurdy as of the date of this Agreement,
which furnishings PRIMEDIA has agreed to transfer title thereof to McCurdy, to
the extent such title is held by PRIMEDIA); (ii) during the Severance Period,
provide McCurdy with McCurdy’s current laptop computer and Blackberry, a
desktop personal computer of the type currently used by the personal assistants
to the senior executives of PRIMEDIA, technical support for such computers, and
telecommunications at the Leased Office, and (iii) during the Severance Period,
pay to McCurdy or his designee, $6,000 per month in arrears, which payment
shall satisfy all obligations of PRIMEDIA to provide McCurdy with any payment
or reimbursement for a full-time secretary or otherwise provide such
secretarial support.

 

(b)           Tax Preparation and Financial
Counseling Services.  PRIMEDIA shall
reimburse McCurdy for reasonable expenses he incurs (i) in connection with the
preparation and filing of McCurdy’s Federal, state and local income tax returns
for each of McCurdy’s tax years occurring during the Severance Period by a
qualified tax professional selected by McCurdy and (ii) in connection with any
financial consulting services provided to McCurdy during the Severance Period
by a qualified financial consulting professional selected by McCurdy.

 

1.5           Tax Withholding.  PRIMEDIA may withhold from any amounts
payable in cash under this Agreement such Federal, state and local income,
employment and other taxes as may be required to be withheld in respect of any
payment and/or any benefit provided for under this Agreement pursuant to any
applicable law or regulation.

 

1.6           Full Satisfaction
of Potential Claims.  McCurdy hereby
acknowledges and agrees that his receipt and satisfaction of all payments and
benefits provided in this Section 1 of this Agreement will constitute full and
final payment, accord and satisfaction of any and all potential claims
described in the General Release (as defined in Section 2 of this Agreement)
against the PRIMEDIA Releasees (as defined in Section 2 of this Agreement).

 

2.             RELEASES; MCCURDY REPRESENTATIONS

 

2.1           General Release.

 

(a)           For
and in consideration of the payment of the amounts and the provision of the
benefits described in Section 1 of this Agreement and PRIMEDIA’s agreement set
forth in Section 2.1(b) below, McCurdy hereby agrees to execute a release of
all claims against the Beneficiaries in the form attached as Exhibit I hereto
(the  “General Release”).

 

(b)           Subject to McCurdy’s
execution of the General Release, PRIMEDIA hereby agrees that, immediately
following the expiration of the Revocation Period, PRIMEDIA shall, on behalf of

 

4

 

the Beneficiaries, execute a
release of all claims against McCurdy in the form attached as Exhibit II
hereto (the “PRIMEDIA Release”, together with the General Release, the “Mutual
Releases”).

 

2.2           McCurdy’s
Representations and Warranties. 
McCurdy represents that he has read carefully and fully understands the
terms of this Agreement, and that McCurdy has been advised to consult with an
attorney and has availed himself of the opportunity to consult with an attorney
prior to signing this Agreement. 
McCurdy acknowledges and agrees that he is executing this Agreement
willingly, voluntarily and knowingly, of his own free will, in exchange for the
payments and benefits described in Section 1 of this Agreement, and that he has
not relied on any representations, promises or agreements of any kind made to
him in connection with his decision to accept the terms of this Agreement,
other than those set forth in this Agreement. 
McCurdy further acknowledges, understands, and agrees that as of the
Termination Date his employment with PRIMEDIA will be terminated, that the
provisions of Section 1 of this Agreement are in lieu of any and all payments
and benefits to which McCurdy may otherwise be entitled to receive pursuant to
the Employment Agreement, that McCurdy will not be reemployed by PRIMEDIA, and
that McCurdy will not apply for or otherwise seek employment with PRIMEDIA or
any of its parents, companies, subsidiaries, divisions or affiliates.  McCurdy
understands that, except as otherwise expressly provided for under this
Agreement, he will not receive any payments under this Agreement until the
seven (7) day revocation period provided for under the General Release has
passed, and then, only if he has not revoked the General Release (such period
during which no such revocation has occurred, the “Revocation Period”).

 

3.             EFFECTS OF SETTLEMENT; WAIVER OF JURY TRIAL

 

3.1           No
Admission.  McCurdy and PRIMEDIA, on
behalf of the Beneficiaries, agree that the payments and benefits by PRIMEDIA, and
the acceptance by McCurdy of the same, all as provided in Section 1 of this
Agreement, and the execution of this Agreement are the result of a compromise
of disputed claims, and shall never for any purpose be considered an admission
of liability or responsibility by the Beneficiaries, and PRIMEDIA, on behalf of
the Beneficiaries, expressly denies any liability.

 

3.2           Waiver of Jury
Trial.  TO THE FULLEST EXTENT
PERMITTED BY LAW, EACH OF THE PARTIES HERETO HEREBY WAIVES THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF THIS AGREEMENT OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT
MATTER OF THE TRANSACTIONS CONTEMPLATED HEREIN.  Each of the parties hereto also waives any bond or surety or
security upon such bond, which might, but for this waiver, be required of any
of the other parties. The scope of this waiver is intended to be all-encompassing
of any and all disputes that may be filed in any court and that relate to the
subject matter of this Agreement or the General Release, including, without
limitation, contract claims, tort claims, breach of duty claims, and all other
common law and statutory claims.  Each
of the parties hereto acknowledges that this waiver is a material inducement to
enter into a business relationship, that each has already relied on the waiver
in entering into this Agreement, and that each will continue to rely on the
waiver in their related future dealings. 
Each of the parties hereto further warrants and represents that each has
reviewed this waiver with his legal counsel and that each knowingly and
voluntarily waives his jury trial rights following consultation with legal
counsel.  This waiver is irrevocable,
meaning that it may not be modified either orally or in writing, and the waiver
shall apply to any subsequent amendments, renewals, supplements or
modifications to this Agreement.  In the
event of litigation, this Agreement may be filed as a written consent to a
trial by the court.

 

4.                                      CONFIDENTIALITY OF THIS AGREEMENT; CONTINUING
EFFECTIVENESS OF COVENANTS IN EMPLOYMENT AGREEMENT

 

4.1           Confidentiality;
Press Release.  McCurdy and PRIMEDIA
understand that confidentiality is of the essence in this Agreement and to
ensure such, both McCurdy and PRIMEDIA

 

5

 

hereby mutually promise and
covenant to keep this Agreement, that certain letter agreement entered into by
and between McCurdy and Dean Nelson (on behalf of PRIMEDIA), dated November 30,
2003, attached as Exhibit III to this Agreement (the “Letter Agreement”)
and the Mutual Releases confidential and agree not to publish, declare or
disclose in any manner whatsoever the terms or conditions of this Agreement,
other than as required by law. 
Notwithstanding the prohibition in the preceding sentence: (a) McCurdy
and PRIMEDIA may disclose this Agreement, the Letter Agreement and the Mutual
Releases in confidence to their respective attorneys, accountants, auditors,
tax preparers, and financial advisors; (b) McCurdy and PRIMEDIA may disclose
this Agreement, the Letter Agreement and the Mutual Releases insofar as such
disclosure may be necessary to enforce its terms in a court of law or as may be
otherwise required by law; and (c) McCurdy may disclose the Letter Agreement to
any prospective employer (or an investor in such prospective employer).  In the event McCurdy may be required by
subpoena to disclose the terms of this Agreement, the Letter Agreement and the
Mutual Releases, he agrees to notify PRIMEDIA of such request promptly, and prior
to responding to such, provided that such disclosure is not prohibited by
applicable law.

 

(b)           Except as otherwise required by law, McCurdy and PRIMEDIA
hereby mutually agree not to issue any press release or otherwise publicize
this Agreement, the Letter Agreement or the Mutual Releases or the settlement
of their disputes, and to limit any statement in response to inquiry from the
news media or otherwise to: “The matter has been resolved on a confidential
basis.”

 

4.2           Statements by
PRIMEDIA.  PRIMEDIA shall not issue
or make, and shall use its commercially reasonable efforts to discourage the
other Beneficiaries from issuing or making, any press release or public
statement, as applicable, about McCurdy which is intended or reasonably likely
to disparage McCurdy, or otherwise degrade McCurdy’s reputation in the business
or industry in which McCurdy operates; provided that PRIMEDIA and/or the
other applicable Beneficiaries shall be permitted to (a) make any statement
that is required by applicable securities or other laws to be included in a
filing or disclosure document, subject to prior notice to McCurdy thereof, (b)
issue any press release or public statement regarding the fact of a termination
of McCurdy’s employment, subject to McCurdy’s prior review and approval
thereof, which approval shall not be unreasonably withheld by McCurdy, (c)
defend itself against any statement made by McCurdy that is intended or
reasonably likely to disparage any member of the Beneficiaries or otherwise
degrade any member of the Beneficiaries’ reputation in the business, industry
or legal community in which such member of the Beneficiaries
operates, only if PRIMEDIA and/or the other applicable Beneficiaries reasonably
believes that the statements made in such defense are not false statements and
(d) provide truthful testimony in any legal proceeding.

 

4.3           Statements by McCurdy.  McCurdy shall not at any time issue any press release or make any
public statement about the Beneficiaries regarding any of the foregoing’s
financial status, business, compliance with laws, ethics, members, managing
members, partners, personnel, directors, officers, employees, consultants,
agents, services, business methods or otherwise, which is intended or
reasonably likely to disparage any of the Beneficiaries, or otherwise degrade
any of the Beneficiaries’ reputation in the business, industry or legal
community in which any such member operates; provided that McCurdy shall
be permitted to (a) make any statement that is required by applicable securities
or other laws to be included in a filing or disclosure document, subject to
prior notice to PRIMEDIA thereof, (b) issue any press release or public
statement regarding the fact of a termination of McCurdy’s employment, subject
to PRIMEDIA’s prior review and approval thereof, which approval shall not be
unreasonably withheld by PRIMEDIA, (c) defend himself against any statement
made by PRIMEDIA or any of the other Beneficiaries that is intended or
reasonably likely to disparage McCurdy or otherwise degrade McCurdy’s
reputation in the business, industry or legal community in which McCurdy
operates, only if McCurdy reasonably believes that the statements made in such
defense are not false statements and (d) provide truthful testimony in any
legal proceeding.

 

4.4           Continuation of Restrictive Covenants; Separate
Liability.  McCurdy agrees and
acknowledges that, except as may be expressly otherwise agreed by the parties
hereto in writing, the restrictive covenants set forth in Section 26 of the
Employment Agreement shall continue in full force and

 

6

 

effect
following the Termination Date, pursuant to their terms.  McCurdy further agrees and understands that
his obligations set forth in Sections 4.1, 4.2 and 4.3 of this Agreement (and
the restrictive covenants set forth in the Employment Agreement, as amended by
the Letter Agreement) are separate from any other provisions in this Agreement
and that any breach of those provisions (or any of the restrictive covenants of
the Employment Agreement, as amended by the Letter Agreement) may be treated by
the Beneficiaries as a breach of this covenant for which McCurdy may be
separately liable, and for which PRIMEDIA may, at its option, elect to cease
payment of any amounts hereunder and/or cease provision of the medical
insurance (in each case as otherwise provided pursuant to Section 1 of this
Agreement) and/or seek the return of the monetary consideration paid hereunder,
in addition to other remedies. 
Notwithstanding the foregoing, PRIMEDIA may only cease payment of any
amounts hereunder and/or cease provision of the medical insurance (in each case
as otherwise provided pursuant to Section 1 of this Agreement) and/or seek the
return of the monetary consideration paid hereunder following (a) in the event
of a breach by McCurdy of the restrictive covenants of the Employment Agreement
(as amended by the Letter Agreement), which breach McCurdy does not cure within
three (3) business days after delivery by PRIMEDIA of notice to McCurdy of such
breach or (b) in the event of a breach by McCurdy of the covenants contained in
Sections 4.1, 4.2 or 4.3 of this Agreement, following written notice by
PRIMEDIA to McCurdy of the then Chairman of PRIMEDIA’s good faith determination
that such a breach has occurred.

 

5.             GOVERNING LAW; RESOLUTION OF
DISPUTES

 

5.1           Governing
Law.

 

This Agreement, the Letter Agreement and the
Mutual Releases shall each be governed and interpreted in accordance with and
enforced in all respects pursuant to the laws of the State of New York,
irrespective of the choice of law rules of that or any other state.

 

5.2           Resolution
of Disputes

 

Any disagreement or controversy arising out
of or relating to this Agreement shall be exclusively resolved by way of
confidential arbitration.  Either party
may submit the disagreement or controversy to arbitration in accordance with
the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association (“AAA”), such arbitration to be conducted before a panel
of three arbitrators, one selected by each of the parties hereto and the third
by the two other arbitrators so selected. 
The arbitration shall be held in New York, New York.  The arbitrators shall be bound by the
express terms of the Agreement.  The award
rendered in any such proceeding, which may include an award of attorneys’ fees,
shall be made in writing and shall be final and binding on the parties, and
judgment upon the award may be entered in any court having competent
jurisdiction thereof.  PRIMEDIA and
McCurdy shall each pay half of all costs of the arbitrators; provided, however,
that PRIMEDIA shall pay all such costs, as well as McCurdy’s attorneys’ fees,
in the event that the arbitration panel determines that McCurdy has prevailed
on a clear preponderance of the material issues in dispute in such arbitration.

 

6.             SEVERABILITY

 

If
any provision of this Agreement is determined to be invalid or unenforceable,
in whole or in part, this determination will not affect any other provision of
this Agreement or the remaining portion of a partially invalid provision, which
shall remain in force, and the provision in question shall be modified by the
court so as to be rendered enforceable.

 

7.             CONSTRUCTION

 

Each
party and its counsel have reviewed this Agreement, the Letter Agreement and
the Mutual
Releases and have been provided the opportunity to review this
Agreement, the Letter Agreement and the Mutual Releases and accordingly, the normal
rule of construction to the effect that any ambiguities are to

 

7

 

be resolved against the drafting party shall not be employed in the
interpretation of this Agreement or the Mutual Releases.  Instead, the language of all parts of this
Agreement, the Letter Agreement and the Mutual Releases shall be construed as a
whole, and according to their fair meaning, and not strictly for or against
either party.

 

8.             ACCEPTANCE AND EFFECTIVENESS

 

This Agreement shall become effective
immediately upon McCurdy’s execution of this Agreement; provided, however,
that PRIMEDIA’s obligation to make any of the payments provided for in Section
1.1(b) through (g) of this Agreement shall not become effective until the
eighth (8th) day following the Termination Date, so long as McCurdy
has not then revoked the General Release.

 

9.             ENTIRE AGREEMENT; COUNTERPARTS

 

9.1           The
Agreement, the Letter Agreement and the Mutual Releases, together set forth the
entire agreement between the parties hereto, and fully supersedes any and all
prior agreements or understandings, including the Employment Agreement (other
than as expressly set forth herein) between the parties hereto pertaining to
the subject matter hereof.

 

9.2           This
Agreement may be executed in one or more counterparts and by the different
parties hereto in separate counterparts, each of which when executed shall be
deemed to be an original but all of which taken together shall constitute one
and the same agreement.

 

[Signatures on next page.]

 

8

 

[SIGNATURE PAGE FOR SEPARATION
AGREEMENT]

 

 

	
  Dated:

  	
  December 3, 2003

  	
   

  	
   

  	
  PRIMEDIA, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  s/ B. Chell

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice-Chairman

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CHARLES G. MCCURDY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  December 2, 2003

  	
   

  	
   

  	
  s/  C. McCurdy

  	
   

  
								

 

 

Schedule
A

 

 

Company-paid and supplemental life insurance;
Accidental death & dismemberment insurance

 

No later than ten (10) days after the Termination Date, PRIMEDIA will
reimburse McCurdy, in a lump sum, for the premiums payable by McCurdy to obtain
life insurance and accidental death 
& dismemberment insurance, for the Severance Period, that provides
equivalent benefits to those provided under the company-paid and supplemental
life insurance accidental death  &
dismemberment insurance and to which McCurdy is entitled immediately prior to
the Termination Date ($800,000 death benefit in the aggregate), the aggregate
cost of which will not exceed $4,000.

 

Short-term
disability benefits

 

PRIMEDIA will provide McCurdy with short-term disability benefit
coverage, on a self-insured basis, on the same terms and conditions under which
McCurdy is entitled to receive short-term disability benefits immediately prior
to the Termination Date pursuant to New York State law ($170 per week for up to
26 weeks of disability), for the period ending November 30, 2006.

 

Long-term
disability benefits

 

Effective as of the Termination Date, PRIMEDIA will continue to provide
McCurdy with long-term disability insurance, either through PRIMEDIA’s
long-term disability carrier or, if PRIMEDIA cannot reasonably obtain such
coverage through such carrier, on a self-insured basis, for the Severance
Period, that provides equivalent benefits to those provided under PRIMEDIA’s
long-term disability insurance plan to which McCurdy is entitled immediately
prior to the Termination Date, at the same cost to McCurdy payable prior to the
Termination Date.

 

Health
Reimbursement Account (“HRA”)

 

No later than ten (10) days after
the Termination Date, PRIMEDIA will pay McCurdy an amount equal to $3,404 in
respect of his participation in PRIMEDIA’s HRA program, in respect of the balance
of the Severance Period.

 

Thrift
& Retirement Plan (“Savings Plan”)

 

No later than ten (10) days after
the Termination Date, PRIMEDIA will pay McCurdy an amount equal to $50,036 in
respect of his participation in the Savings Plan, in respect of the balance
of the Severance Period.

 

Employee Stock
Purchase Plan

 

No later than ten
(10) days after the Termination Date, PRIMEDIA will pay McCurdy a cash lump sum
in the amount of $3,000 in respect of his participation in PRIMEDIA’s Employee
Stock Purchase Plan, in respect of the balance of the Severance Period.

 

 

Exhibit I

 

GENERAL RELEASE

 

Section 1.               Release

 

For and in consideration of
the payment of the amounts and the provision of the benefits described in
Section 1 of that certain Separation Agreement dated as of December 2, 2003 by
and between Charles G. McCurdy (“McCurdy”) and PRIMEDIA Inc. (“PRIMEDIA”) (the
“Separation Agreement”), McCurdy hereby agrees on behalf of himself, his
agents, assignees, attorneys, successors, assigns, heirs and executors, to, and
McCurdy does hereby, fully and completely forever release the Beneficiaries (as
such term is defined in the Separation Agreement) and their respective past,
current and future affiliates, predecessors and successors and all of their
respective past and/or present officers, directors, partners, members, managing
members, managers, employees, agents, representatives, administrators,
attorneys, insurers and fiduciaries, in their individual and/or representative
capacities (hereinafter collectively referred to as the “Company Releasees”),
from any and all causes of action, suits, agreements, promises, damages,
disputes, controversies, contentions, differences, judgments, claims, debts,
dues, sums of money, accounts, reckonings, bonds, bills, specialities,
covenants, contracts, variances, trespasses, extents, executions and demands of
any kind whatsoever, which McCurdy or his agents, assignees, attorneys,
successors, assigns, heirs and executors ever had, now have or may have against
Company Releasees or any of them, in law, admiralty or equity, whether known or
unknown to McCurdy, for, upon, or by reason of, any matter, action, omission,
course or thing whatsoever occurring up to the date this General Release is
signed by McCurdy, including, without limitation, in connection with or in
relationship to McCurdy’s employment or other service relationship with
PRIMEDIA, the termination of any such employment or service relationship and
any applicable employment, compensatory or equity arrangement with PRIMEDIA
(including, without limitation, the Employment Agreement (as such term is
defined in the Separation Agreement), any exhibits attached thereto, any
amendments thereto, and any equity or employee benefit plans, programs,
policies or other arrangements), any claims of breach of contract, wrongful
termination, retaliation, fraud, defamation, infliction of emotional distress
or national origin, race, age, sex, sexual orientation, disability, medical
condition or other discrimination or harassment, (such released claims are
collectively referred to herein as the “Released Claims”); provided that such
Released Claims shall not include any claims to enforce McCurdy’s rights or
obligations under, or with respect to, the Separation Agreement.

 

Section 2.               Waiver.  Notwithstanding the generality of Section 1
above, the Released Claims include, without limitation: (i) any and all claims
relating to base salary or bonus payments or benefits pursuant to the
Employment Agreement, other than those payments and benefits specifically
provided for in Sections 1.1 and 1.3 of the Separation Agreement; (ii) any and
all claims under Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act of 1967, the Civil Rights Act of 1971, the
Civil Rights Act of 1991, the Fair Labor Standards Act, Employee Retirement
Income Security Act of 1974, the Americans with Disabilities Act, the Family
and Medical Leave Act of 1993, the Fair Employment and Housing Act, and any and
all other federal, state or local laws, statutes, rules and regulations
pertaining to employment or otherwise; and (iii) any claims for wrongful
discharge, breach of contract, fraud, misrepresentation or any compensation
claims, or any other claims under any statute, rule or regulation or under the
common law, including compensatory damages, punitive damages, attorney’s fees,
costs, expenses and all claims for any other type of damage or relief.

 

THIS MEANS THAT, BY SIGNING THIS GENERAL RELEASE, MCCURDY WILL
HAVE WAIVED ANY RIGHT MCCURDY MAY HAVE HAD TO BRING A LAWSUIT OR MAKE ANY CLAIM
AGAINST COMPANY RELEASEES BASED ON ANY ACTS OR OMISSIONS OF COMPANY RELEASEES
UP TO THE DATE OF THE SIGNING OF THIS AGREEMENT.

 

 

Section 3.               Waiver of Equity Rights.  Except with respect to the Options as
provided for in Section 1.2 of the Separation Agreement, in consideration of
the payments and benefits provided for elsewhere in Section 1 of the Separation
Agreement, and for other good and valuable consideration, McCurdy hereby
forever waives, releases and fully relinquishes any right or title to any and
all equity, including but not limited to Stock (as defined in the Separation
Agreement) and stock options, whether granted to McCurdy as of the Termination
Date or not, in PRIMEDIA or any subsidiary, partner or joint venture of
PRIMEDIA; provided, however, that nothing in this Section 3 shall
be construed to limit in any way McCurdy’s right to purchase any such equity in
the open market.

 

Section 4.               McCurdy’s Representations and
Warranties.  McCurdy represents that
he has read carefully and fully understands the terms of this General Release,
and that McCurdy has been advised to consult with an attorney and has availed
himself of the opportunity to consult with an attorney prior to signing this
General Release.  McCurdy acknowledges
and agrees that he is executing this General Release willingly, voluntarily and
knowingly, of his own free will, in exchange for the payments and benefits
described in Section 1 of the Separation Agreement, and that he has not relied
on any representations, promises or agreements of any kind made to him in
connection with his decision to accept the terms of the Separation Agreement or
the General Release, other than those set forth in the Separation
Agreement.  McCurdy further
acknowledges, understands, and agrees that his employment with PRIMEDIA has
terminated, that the provisions of Section 1 of the Separation Agreement are in
lieu of any and all payments and benefits to which McCurdy may otherwise be
entitled to receive pursuant to the Employment Agreement, that McCurdy will not
be reemployed by PRIMEDIA, and that McCurdy will not apply for or otherwise
seek employment with PRIMEDIA or any of its parents, companies, subsidiaries,
divisions or affiliates.  McCurdy acknowledges that he has been advised that he
is entitled to take at least twenty-one (21) days to consider whether he wants
to sign this General Release and that the Age Discrimination in Employment Act
gives him the right to revoke this General Release within seven (7) days after
it is signed, and McCurdy understands that he will not receive any payments
under the Separation Agreement until such seven (7) day revocation period has
passed and then, only if he has not revoked this General Release.  To the extent McCurdy has executed this
General Release within less than twenty-one (21) days after its delivery to
him, McCurdy hereby acknowledges that his decision to execute this General
Release prior to the expiration of such twenty-one (21) day period was entirely
voluntary, and taken after consultation with and upon the advice of his
attorney.

 

McCurdy fully understands
that this General Release is a legally binding document and that by signing
this General Release McCurdy is prevented from filing, commencing or
maintaining any action against any of the Company Releasees, other than to
enforce his rights under the Separation Agreement, the Letter Agreement and the
PRIMEDIA Release (as such terms are defined in the Separation Agreement) as well
as his rights as set forth in Section 2 above of this General Release.

 

This
General Release is final and binding and may not be changed or modified, except
by written agreement by both of PRIMEDIA and McCurdy.

 

	
   

  	
   

  	
   

  	
   

  
	
  December       , 2003

  	
  CHARLES G. MCCURDY

  

 

 

Exhibit II

 

RELEASE

 

PRIMEDIA Inc. (“PRIMEDIA”)
hereby agrees on behalf of itself and the other Beneficiaries (as such term is
defined in that certain Separation Agreement dated as of December 2, 2003 by
and between Charles G. McCurdy (“McCurdy”) and PRIMEDIA (the “Separation
Agreement”)), in consideration of the covenants and agreements referred to in
the Separation Agreement and other good and valuable consideration, the receipt
and sufficiency of which is hereby irrevocably acknowledged, that the
Beneficiaries hereby, fully and completely forever release McCurdy (hereinafter
referred to as the “Releasee”, which term includes all successors, heirs,
executors, administrators, estate trustees and assigns of McCurdy) from any and
all causes of action, suits, agreements, promises, damages, disputes,
controversies, contentions, differences, judgments, claims, debts, dues, sums
of money, accounts, reckonings, bonds, bills, specialities, covenants,
contracts, variances, trespasses, extents, executions and demands of any kind
whatsoever, which the Beneficiaries or any of their respective agents,
assignees, attorneys, successors, assigns, heirs and executors ever had, now
have or may have against the Releasee, in law, admiralty or equity, whether
known or unknown to the Beneficiaries, for, upon, or by reason of, any matter,
action, omission, course or thing whatsoever occurring up to the date this
Release is signed by PRIMEDIA on behalf of itself and the other Beneficiaries, provided
that the foregoing shall not include any claims to enforce the Beneficiaries’
rights or McCurdy’s obligations under, or with respect to, the Separation
Agreement (or any exhibits, attachments, agreements or benefit plans or
arrangements referenced therein).

 

PRIMEDIA fully understands
that this Release is a legally binding document and that by signing this
Release PRIMEDIA is prevented from filing, commencing or maintaining any action
against any Releasee, other than to enforce PRIMEDIA’s or the other
Beneficiaries’ rights under the Separation Agreement, Letter Agreement and the
General Release (as such terms are defined in the Separation Agreement).

 

This
Release is final and binding and may not be changed or modified, except by
written agreement by both of PRIMEDIA and the Releasee.

 

	
  Dated:

  	
   

  	
   

  	
  PRIMEDIA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

Exhibit
III

 

[Charles
G. McCurdy Letterhead]

 

December 2, 2003

 

PRIMEDIA Inc.

745 Fifth Avenue

New York, New York 10151

 

Attn:       Mr. Dean Nelson

Chairman of the Board of
Directors

 

Dear Sirs:

 

Please sign below to confirm your
agreement that, notwithstanding the terms on non-competition in my employment
agreement with PRIMEDIA Inc. (“PRIMEDIA”) dated as of April 19, 2002 (my
“Employment Agreement”) and the letter executed by me dated as of November 1,
2003 regarding the termination of my employment with PRIMEDIA, PRIMEDIA will
not take any steps to enforce (i) the non-compete provisions contained in
Section 26(c)(i)(A), (B) or (C) of my Employment Agreement, except in the event
and to the extent that I become, directly or indirectly, a director, an
employee or an equityholder of, an agent for, or a consultant to, Network
Communications, Inc. or Trader Publishing Company or any of their respective
subsidiaries, parents or major shareholders or (ii) the non-solicitation
provisions of Section 26(c)(iii)(A) of my Employment Agreement with respect to
any executive (x) whose employment with PRIMEDIA (or its subsidiaries, as
applicable) terminated prior to November 1, 2003 or (y) whose employment is, on
or after November 1, 2003, involuntarily terminated by PRIMEDIA (or its
subsidiaries, as applicable).  This
letter agreement shall be deemed to constitute an amendment to the terms of
Section 26 of my Employment Agreement.

 

	
   

  	
  Yours,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Charles G. McCurdy

  
	
   

  	
   

  
	
  AGREED this
           day of
                    ,
  2003:

  	
   

  
	
   

  	
   

  
	
  PRIMEDIA Inc.

  	
   

  
	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
  Dean Nelson

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