PRIMEDIA Inc. Special Bonus Agreement with Kevin Neary Related to Sale of Enthusiast Media

Summary

PRIMEDIA Inc. agrees to pay Kevin Neary a special bonus of $555,800, less taxes, following the sale of PRIMEDIA Enthusiast Media Inc. to Source Interlink Companies, Inc. The bonus is based on the sale price and will be paid within ten days of the sale's closing. If Mr. Neary is terminated for cause or resigns before payment, he forfeits the bonus. If terminated without cause, he remains eligible. The agreement outlines specific definitions of "cause" for termination.

EX-10.1 2 a07-19084_1ex10d1.htm EX-10.1

Exhibit 10.1

Michaelanne C. Discepolo

 

Executive Vice President

 

Human Resources

 

 

PRIMEDIA

PRIMEDIA Inc.

745 Fifth Avenue

New York, NY 10151

Tel: 212 ###-###-####

Fax: 212 ###-###-####

***@***

June 12, 2007

Mr. Kevin Neary

Dear Kevin:

We are pleased to inform you that you are entitled to receive a special bonus of $555,800 (the “Bonus”), less applicable withholdings, upon the sale of PRIMEDIA Enthusiast Media Inc. to Source Interlink Companies, Inc. (the “Sale”).

The Bonus amount was based on the sale price of $1,177,900,000 and calculated in accordance with the formula set forth on Attachment A. The Bonus will be payable within ten days of the closing date of the Sale (“the Payment Date”).

In the event that PRIMEDIA Inc. terminates your employment for “Cause” prior to the Payment Date, you would no longer be entitled to receive the Bonus. For purposes of this Letter Agreement, “cause” shall include any act of dishonesty committed by you in connection with your employment, substance abuse, conviction of a felony, behavior injurious to PRIMEDIA, the willful or repeated failure or refusal to perform your duties or gross insubordination.

In the event that PRIMEDIA terminates your employment without Cause prior to the Payment Date, you shall remain entitled to the Bonus.

In the event you voluntarily terminate your employment prior to the Payment Date, you would no longer be entitled to receive the Bonus.

Very truly yours,

 

Mike Discepolo

cc: Dean Nelson

/s/ Mike Discepolo