**Exhibit10.27**

**EMPLOYMENT AND NON-COMPETITIONAGREEMENT**

**(DouglasR. Ehmann)**

This **EMPLOYMENT AND NON-COMPETITION AGREEMENT**(this “Agreement”), dated as of March 29, 2007, is between The SheridanGroup, Inc., a Maryland corporation (the “Employer”), and Douglas R.Ehmann (the “Employee”).

**WHEREAS**, the Employer wishes toemploy the Employee as an executive officer of the Employer, and the Employeewishes to work as an executive officer of the Employer, on the terms set forthbelow.

**NOW, THEREFORE**,it is hereby agreed as follows:

§1. **EMPLOYMENT**.  The Employer hereby employs the Employee, andthe Employee hereby accepts employment, upon the terms and subject to theconditions hereinafter set forth.

§2. **DUTIES**. The Employee shall be employed as the Vice President and ChiefTechnology Officer of The Sheridan Group, Inc., a Maryland corporation.  In such capacity, the Employee shall have theexecutive responsibilities and duties assigned by the Employer’s Board ofDirectors (the “Board”) and shall report directly to the President ofthe Employer.  The Employee agrees todevote his full time and best efforts to the performance of his duties to theEmployer.  Nothing contained herein shallbe construed as prohibiting the Employee from serving as a director of anyentity that is not in the Designated Industry, as defined in §8, so long assuch activity does not involve a substantial time commitment and otherwise doesnot interfere with the performance of his duties under this Agreement.

§3.**TERM**.  The term of employment of the Employeehereunder shall commence on April 1, 2007 (the “CommencementDate”)and shall continue until March 31, 2008 (the “InitialTerm”),unless earlier terminated pursuant to §6, and shall be renewed automaticallyfor additional one (1) year terms thereafter unless terminated by either partyby written notice to the other party given at least ninety (90) days prior tothe expiration of the then current term.

§4. **COMPENSATIONANDBENEFITS**.  During the term of the Employee’s employmenthereunder, in consideration for the services of the Employee hereunder, theEmployer shall compensate the Employee as follows:

(a) **BaseSalary**.  The Employer shall pay the Employee, inaccordance with the Employer’s current payroll practices, a base salary (the “BaseSalary”).  The Base Salary will bepaid at an annual rate of $210,000.  TheBase Salary may be increased from time to time at the discretion of the Boardand is in addition to the other benefits set forth herein.

(b)**ManagementIncentiveBonus**.  The Employee shall be eligible to receivefrom the Employer, for each of the fiscal years of the Employer ended after thedate hereof, a management incentive bonus (the “IncentiveBonus”)in an amount up to fifty percent (50%) of the Base Salary for such fiscal year,in accordance with an incentive bonus plan to be adopted by the Board prior tothe end of the first fiscal quarter for each such fiscal year.  In accordance with applicable Federal law,the Incentive Bonus, if any, will be paid by the March 15 following the fiscalyear during which the Employee becomes vested in his or her Incentive Bonus.

(c) **Insurance; OtherBenefits**.  Accident, disability, and health insurancefor the Employee shall be provided by the Employer under group accident,disability, and health insurance plans maintained by the Employer for, and onthe terms and conditions generally applicable to, its full-time, salariedemployees as such employment benefits may be modified from time to time by theEmployer for all full-time, salaried employees.  The amount and extent of such coverage shallbe subject to the discretion of the Board. The Employee shall also be eligible to participate in any deferredcompensation or retirement plans maintained by the Employer, in accordance withthe terms of such plans as in effect from time to time.

§5. **EXPENSES**.  The Employer shall reimburse the Employee forall reasonable expenses of types authorized by the Employer and incurred by theEmployee in the performance of his duties hereunder.  The Employee shall comply with such budgetlimitations and approval and reporting requirements with respect to expenses asthe Employer may establish from time to time.

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§6.**TERMINATION**.  The Employee’s employment hereunder shallcommence on the Commencement Date and continue until the expiration of theInitial Term, and any extension of such term pursuant to §3, except that theemployment of the Employee hereunder shall earlier terminate:

(a)**DeathorDisability**.  Upon the death of the Employee during theterm of his employment hereunder or, at the option of the Employer, in theevent of the Employee’s physical or mental disability, upon thirty (30) days’written notice from the Employer.  TheEmployee shall be deemed disabled if an independent medical doctor (selected bythe Employer’s health or disability insurer) certifies that the Employee hasfor 180 days, consecutive or non-consecutive, in any twelve (12) monthperiod been physically or mentally disabled in a manner which seriouslyinterferes with his ability to perform his responsibilities under thisAgreement.  Any refusal by the Employeeto submit to a medical examination for the purpose of certifying physical ormental disability under this §6(a) shall be deemed to constitute conclusiveevidence of the Employee’s physical or mental disability.

(b) **For Cause**.  For “Cause” immediately upon written noticeby the Employer to the Employee.  Forpurposes of this Agreement, a termination shall be for Cause if any one or moreof the following has occurred:

(i)the Employee shall have committed an act of fraud, embezzlement ormisappropriation against the Employer, including, but not limited to, theoffer, payment, solicitation or acceptance of any unlawful bribe or kickbackwith respect to the Employer’s business; or

(ii)the Employee shall have been convicted by a court of competent jurisdiction of,or pleaded guilty or nolo contendere to, any felony or any crime involvingmoral turpitude; or

(iii) the Employee shallhave refused, after explicit written notice, to obey any lawful resolution ofor direction by the Board which is consistent with his duties hereunder; or

(iv) the Employee hasbeen chronically absent from work (excluding vacations, illnesses or leaves ofabsence approved by the Board); or

(v) the Employeeshall have failed to perform the duties incident to his employment with theEmployer on a regular basis, and such failure shall have continued for aperiod of twenty (20) days after written notice to the Employee specifying suchfailure in reasonable detail (other than as a result of the Employee’sDisability); or

(vi) the Employee shall have engaged in the unlawfuluse (including being under the influence) or possession of illegal drugs on theEmployer’s premises; or

(vii) the Employeeshall have breached any one or more provisions of the Stock Purchase Agreement,dated as of August 1, 2003, among the Employer and its stockholders as amendedand in effect from time to time, and such breach shall have continued for aperiod of ten (10) days after written notice to the Employee specifying suchbreach in reasonable detail.

(c)**ResignationWithoutGoodReason; Without Cause**.  Upon thirty (30) days’ written notice by theEmployer to the Employee without Cause or by the Employee to the Employerwithout Good Reason (as defined below).

(d)**ResignationWithGoodReason. **Upon written noticeby the Employee to the Employer for Good Reason specifying in reasonable detailthe basis for such termination, provided, that such notice shall be given nomore than thirty (30) days following the event or condition which gives rise tosuch termination.  For purposes of thisAgreement, the term “Good Reason” shall mean the occurrence of any of theevents or conditions described in subparagraphs (i) through (ii) hereof withoutthe Employee’s express written consent which is not corrected within twenty(20) days after delivery by the Employee of written notice to the Employer:

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(i) a material reductionin the Employee’s status, position, scope of authority or responsibilities, theassignment to the Employee of any duties or responsibilities which arematerially inconsistent with such status, position, authority orresponsibilities; involuntary relocation of the Employee to an extent requiringan increase in his commute to his normal place of employment of more than 50miles; or any removal of the Employee from or failure to reappoint him to anyof positions to which the Employee has been appointed by the Employer, exceptin connection with the termination of his employment; or

(ii) a material reductionby the Employer in the Employee’s compensation or benefits, except inconjunction with a general reduction by the Employer in the salaries of it’sexecutive level employees or the TSG management team.

(e)      **RightsandRemediesUponTermination**.

(i)If the Employee’s employment hereunder is terminated by the Employer withoutCause pursuant to §6(c) or by the Employee with Good Reason pursuant to §6(d),then the Employee shall be entitled to receive (A) severance payments, inaccordance with the Employer’s payroll practices in existence on the date ofSeparation from Service at an annual rate equal to the sum of (1) the Employee’sBase Salary in effect at the time of such termination plus (2) theaverage of the Incentive Bonuses earned by the Employee for the two fiscalyears immediately preceding the date of termination, for a period equal toeighteen (18) months (the “Severance Period”), (B) provided that the Employeeelects continuation coverage, commonly known as COBRA coverage, under thehealth insurance plan maintained by the Employer for its full time salariedemployees, the Employer, during the Severance Period, will pay the excess ofthe required COBRA premium for the Employee (and his spouse and dependents tothe extent covered by the Employer’s health insurance plan at the time ofExecutive’s termination of employment) over the premium paid by the Employeefor such coverage immediately prior to the Employee’s termination ofemployment, (C) payment of any expense reimbursements under §5 hereof forexpenses incurred in the performance of his duties prior to termination (whichshall be made by the December 31 of the second calendar year following the yearin which the Employee experiences a Separation from Service), and (D) immediatevesting of the Employee’s deferred compensation account in accordance with theDeferred Compensation Plan.  No paymentwill be made under this Section 6(e) unless the Employee experiences aSeparation from Service (as defined in subsection (iv) below).  Once payments commence under §6(e)(i)(A),there shall be no changes made to the payment schedule.  

(ii)Notwithstanding the provisions of §6(e)(i), in the event the Employee acceptsother employment during the Severance Period, the Employer shall be entitled toreduce the amount payable under §6(e)(i) by an amount equal to the incomereceived by the Employee pursuant to such new employment during the SeverancePeriod.

(iii)Except as otherwise set forth in this §6(e), the Employee shall not be entitledto any severance or other compensation after termination.

(iv)An employee experiences a “Separation from Service” if the employee dies,retires, or otherwise has a termination of employment with the Employer, withinthe meaning of Internal Revenue Code section 409A.  A “Separation from Service” shall occur ifthe Employee ceases to perform significant services for the Employer (forexample, if the annual level of services and remuneration are reduced to lessthan twenty percent (20%) [or less than fifty percent (50%), if the Employeebecomes an independent contractor] of average prior levels,  based on the last three full calendar yearsof employment (or the actual employment period, if shorter).

(v)A “Separation from Service” shall not occur if the Employee is on military leave,sick leave, or other bona fide leave of absence, if the period of such leavedoes not exceed six months, or if longer, so long as the Employee’s right toreemployment with the Employer is provided either by statute or by contract. Ifthe period of leave exceeds six months and the Employee’s right to reemploymentis not provided either by statute or by contract, a “Separation from Service”is deemed to occur on the first date immediately following such six-monthperiod.

§7.**INVENTIONS; ASSIGNMENT**.  All rights to discoveries, inventions,improvements and innovations (including all data and records pertainingthereto) related to the Employer’s business, whether or not patentable,copyrightable, registrable as a trademark, or reduced to writing, that the Employeemay discover, invent or originate during the term of his employment hereunder,and for a period of six (6) months thereafter, either alone or with others andwhether or not during working hours or by the use of the facilities of theEmployer (“Inventions”), shall be the exclusive property of theEmployer.  The Employee shall promptlydisclose all Inventions to the Employer, shall execute at the request of theEmployer any assignments or other documents the Employer may deem necessary toprotect or perfect its rights therein, and shall assist the Employer, at theEmployer’s expense, in obtaining, defending and enforcing the Employer’s rightstherein.  The Employee hereby appointsthe 

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Employeras his attorney-in-fact to execute on his behalf any assignments orother documents deemed necessary by the Employer to protect or perfect itsrights to any Inventions.

§8. **CONFIDENTIALINFORMATION**.  The Employee recognizes and acknowledges thatcertain proprietary and confidential information of the Employer, includingwithout limitation information regarding customers, pricing policies, methodsof operation, proprietary computer programs, sales, products, profits, costs,markets, key personnel, formulae, product applications, technical processes,and trade secrets (hereinafter called “ConfidentialInformation”)are valuable, special, and unique assets of the Employer and itsaffiliates.  The Employee shall not,during or after his term of employment, disclose any or any part of theConfidential Information to any person, firm, corporation, association, or anyother entity for any reason or purpose whatsoever, directly or indirectly,except as may be required pursuant to his employment hereunder and except asrequired by law, unless and until such Confidential Information becomespublicly available other than as a consequence of the breach by the Employee ofhis confidentiality obligations hereunder. In the event of the termination of his employment, whether voluntary orinvoluntary and whether by the Employer or the Employee, the Employee shalldeliver to the Employer all documents and data pertaining to the ConfidentialInformation and shall not take with him any documents or data of any kind orany reproductions (in whole or in part) or extracts of any items relating tothe Confidential Information.

§9. **NON-COMPETITION**.  In consideration of the Employer’sobligations hereunder, during the term of the Employee’s employment hereunderand during the Designated Period (as defined herein), the Employee will not (i)anywhere within North America, engage, directly or indirectly, alone or as ashareholder (other than as a holder of stock of the Employer (or any of itsaffiliates) or as a holder of less than five percent (5%) of the common stockof any publicly traded corporation), partner, officer, director, employee orconsultant of any other business organization that (A) is engaged or becomesengaged in the business of providing publishing and printing services journals,catalogs, and books or (B) is engaged in any other business activity that theEmployer is conducting at the time of the Employee’s termination or anyactivity related thereto of which the Employee had knowledge that the Employerproposes to conduct (the “DesignatedIndustry”), (ii) divert toany competitor of the Employer any customer of the Employer, or (iii) solicitor encourage any officer, employee or consultant of the Employer to leave itsemploy for employment by or with any competitor of the Employer.  The term “DesignatedPeriod”shall mean a period following the termination of the Employee’s employmenthereunder equal to the longer of (a) twelve (12) months and (b) the SeverancePeriod.  If at any time the provisions ofthis §9 shall be determined to be invalid or unenforceable, by reason of beingvague or unreasonable as to area, duration or scope of activity, this §9 shallbe considered divisible and shall become and be immediately amended to onlysuch area, duration and scope of activity as shall be determined to bereasonable and enforceable by the court or other body having jurisdiction overthe matter; and the Employee agrees that this §9 as so amended shall be validand binding as though any invalid or unenforceable provision had not beenincluded herein.  

§10.**GENERAL**.

(a)**Notices**.  All notices and other communicationshereunder shall be in writing or by written telecommunication, and shall bedeemed to have been duly given if delivered personally or if mailed bycertified mail, return receipt requested, postage prepaid or sent by written telecommunicationor telecopy, to the relevant address set forth below, or to such other addressas the recipient of such notice or communication shall have specified to theother party hereto in accordance with this §10(a):

Ifto the Employer, to:

c/oThe Sheridan Group, Inc.11311 McCormick Road, Ste. 260

HuntValley, Maryland  21031-1437

Attention:  President

Witha copy to:

CarmenRomano

DechertLLP

CiraCentre Building

2929Arch Street

Philadelphia,PA  19104-2808

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Ifto the Employee, to:

DouglasR. Ehmann

14215Sawmill Court

Phoenix,Maryland 21131

(b) **Equitable Remedies**.  Each of the parties hereto acknowledges andagrees that upon any breach by the Employee of his obligations under §§7, 8 and9 hereof, the Employer will have no adequate remedy at law, and accordinglywill be entitled to specific performance and other appropriate injunctive andequitable relief.

(c) **Severability**.  If any provision of this Agreement is orbecomes invalid, illegal or unenforceable in any respect under any law, thevalidity, legality and enforceability of the remaining provisions hereof shallnot in any way be affected or impaired.

(d) **Waivers**.  No delay or omission by either party heretoin exercising any right, power or privilege hereunder shall impair such right,power or privilege, nor shall any single or partial exercise of any such right,power or privilege preclude any further exercise thereof or the exercise of anyother right, power or privilege.

(e) **Counterparts**.  This Agreement may be executed in multiplecounterparts, each of which shall be deemed an original, but all of whichtogether shall constitute one and the same instrument.

(f) **Assigns**.  This Agreement shall be binding upon andinure to the benefit of the heirs and successors of each of the parties hereto.

(g) **Arbitration of Disputes.**  Any controversy or claim arising out of orrelating to this Agreement or the breach thereof shall, to the extent permittedby law, be settled by arbitration in any forum and form agreed upon by theparties, or in the absence of such an agreement, under the auspices of theAmerican Arbitration Association (“AAA”) in Baltimore, Maryland in accordancewith the Employment Dispute Resolution Rules of the AAA, including, but notlimited to, the rules and procedures applicable to the selection ofarbitrators.  Notwithstanding theforegoing, this §10(g) shall not preclude either party from pursuing a courtaction for the sole purpose of obtaining a temporary restraining order or apreliminary injunction in circumstances in which such relief is appropriate,provided that any other relief shall be pursued through an arbitrationproceeding pursuant to this §10(g).  Theprevailing party shall be entitled to collect reasonable fees and expensesincurred by the prevailing party in connection with such arbitration orlitigation from the other party to such arbitration or litigation.

(h) **EntireAgreement**.  This Agreement contains the entireunderstanding of the parties, supersedes all prior agreements andunderstandings relating to the subject matter hereof and shall not be amendedexcept by a written instrument hereafter signed by each of the parties hereto.

(i) **GoverningLaw**.  This Agreement and the performance hereofshall be construed and governed in accordance with the laws of the State of Maryland.

**IN WITNESS WHEREOF**,and intending to be legally bound hereby, the parties hereto have caused thisAgreement to be duly executed as of the date and year first above written
| ** ** | **THE SHERIDAN GROUP, INC.** |
|------------|------------------------------|
| ** ** | ** **                   |
| ** ** | ** **                   |
|       | By:                          |   /s/  John A. Saxton |   |
|       |                         | John A. Saxton |
|       |                         | President and  Chief Executive Officer |
|       |                         |   |
|       |                         |   |
|       |                         | /s/ Douglas R.  Ehmann |   |
|       |                         | Douglas R.  Ehmann |

 

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