Document:

Exhibit

[Form of]
2016 Performance Equity Plan
Performance Share Unit Agreement

1.    Grant of Award.  This Agreement evidences the grant by Cimpress N.V., a Netherlands company (the “Company”), on %%OPTION_DATE,’Month DD, YYYY’%-% to %%FIRST_NAME%-% %%LAST_NAME%-% (the “Participant”) of %%TOTAL_PSUs_GRANTED%-% performance share units (the “PSUs”) on the terms of this Agreement and the Company’s 2016 Performance Equity Plan (the “Plan”). Each PSU represents a right to receive between 0 and 2.5 ordinary shares of the Company, €0.01 par value per share (the “Shares”), upon the satisfaction of both (A) service-based vesting as described in Section 2 below and (B) performance conditions relating to the compound annual growth rate (“CAGR”) of the three-year moving average daily price per Share (“3YMA”) as described in Section 3 below. The issuance of Shares to the Participant pursuant to a PSU upon satisfaction of both the service-based condition and the performance condition described in this Agreement is a “Performance Dependent Issuance.”

Except as otherwise indicated by the context, the term “Participant,” as used in this award, is deemed to include any person who acquires rights under this award validly under its terms. All references to the “Company” throughout this Agreement include Cimpress N.V. and all current and future parents and subsidiaries of Cimpress N.V., and if the Participant is employed by a parent or subsidiary of Cimpress N.V., then any references in this Agreement to employment by or with the Company or termination of employment by or with the Company are instead deemed to refer to such parent or subsidiary.

2.    Service-Based Vesting.

(a)    Vesting Schedule.  Throughout this Agreement, the term “vest” refers only to the satisfaction of the service-based condition described in this Section 2 and does not refer to the performance condition, the satisfaction of which is necessary for a Performance Dependent Issuance. Subject to the terms and conditions of this award, the PSUs vest as to 25% of the original number of PSUs on %%VEST_DATE_PERIOD1,’Month DD, YYYY’%-% and as to an additional 25% of the original number of PSUs on each of the successive three anniversaries of such date, so long as, at the time any PSUs vest, the Participant is, and has been at all times since the date in Section 1 above on which the PSUs were granted, an “Eligible Participant,” which is defined as an employee, officer or director of, or consultant or advisor to, the Company or any parent or subsidiary of the Company as defined in Section 424(e) or (f) of the United States Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”).

(b)    Forfeiture of Unvested PSUs.  If for any reason the Participant ceases to be an Eligible Participant, then the vesting of PSUs ceases and the Participant has no further rights with respect to any unvested PSUs, but except as set forth in Section 2(c) below, the Participant retains the PSUs that have vested as of the last day on which he or she was an Eligible Participant. The Participant expressly accepts and agrees that any termination of his or her relationship with the Company for any reason whatsoever (including without limitation unfair or objective dismissal, permanent disability, death, resignation or desistance) automatically means the forfeiture of all of his or her unvested PSUs, with no compensation whatsoever. The Participant acknowledges and accepts that this is an essential condition of this Agreement and expressly agrees to this condition. 

(c)    Forfeiture of Vested PSUs.  The Participant expressly accepts and agrees that if the Participant’s status as an Eligible Participant is terminated for Cause, then all of the Participant’s PSUs, whether vested or unvested, are automatically forfeited with no compensation whatsoever, and the Participant has no further rights with respect to any PSUs hereunder. The Participant acknowledges and accepts that this is an essential condition of this Agreement and expressly agrees to this condition. For purposes of this Agreement and to the extent permitted under applicable law, “Cause” means the Participant’s (i) willful failure to substantially perform his or her duties (other than any such failure resulting from incapacity due to physical or mental illness), (ii) willful misconduct or gross negligence related to his or her employment with the Company, (iii) commission of any crime involving harassment, moral turpitude, fraud, misappropriation or embezzlement, (iv) breach of this Agreement or any confidentiality or restrictive covenant agreement with the Company, (v) failure to comply with any material provision of any written policy or rule of the Company, as may be in effect from time to time, or (vi) engagement in any act or failure to act that is so serious in its nature or extent that it breaks the purpose of the employment relationship and legally deprives the Participant of any right to notice and/or indemnification for dismissal.

3.    Performance Conditions. 

(a)    Baseline and Measurements.  The “Baseline 3YMA” for this award is %%BASELINE_3YMA_$%-%, and the “Baseline Date” is %%BASELINE_DATE,’Month DD, YYYY’%-%. At each of the [____] through [____] anniversaries of the Baseline Date (each such date a “Measurement Date”) until such time as a Performance Dependent Issuance is triggered for this PSU award, the Company shall measure the 3YMA as of such Measurement Date and calculate the CAGR relative to the Baseline 3YMA as set forth in this Section 3. 

(b)    Performance Condition for Years [____].  If on a Measurement Date the CAGR of the 3YMA as of such Measurement Date, relative to the Baseline 3YMA, equals or exceeds the minimum CAGR for such Measurement Date set forth in Table 1 on Schedule A hereto, then a Performance Dependent Issuance is triggered, and the Company shall issue to the Participant in accordance with Section 4 below the number of Shares determined by multiplying the number of vested PSUs in this award by the percentage set forth in Table 1 that corresponds to the CAGR of the 3YMA from the Baseline Date to the Measurement Date, rounded down to the nearest whole Share. 

(c)    Performance Condition for a Change in Control.  If a Change in Control, as defined in the Plan, occurs at any time between the date in Section 1 above on which the PSUs were granted and the [_____] anniversary of the Baseline Date, then the date of such Change in Control is deemed to be the applicable Measurement Date. If the price paid per Share to holders of the Company’s Shares in connection with the Change in Control (as reasonably determined by the Board), relative to the Baseline 3YMA, equals or exceeds the minimum CAGR set forth in Table 2 on Schedule A hereto, then a Performance Dependent Issuance is triggered at such Measurement Date, and the Company shall issue to the Participant in accordance with Section 4 below the number of Shares determined by multiplying the number of vested PSUs in this award by the percentage set forth in Table 2 that corresponds to the CAGR of the 3YMA from the Baseline Date to the price paid per Share to the holders of the Company’s Shares in connection with the Change in Control, rounded down to the nearest whole Share. 

(d)    Expiration.  If no Performance Dependent Issuance is triggered pursuant to this Section 3 on or before the earlier of (i) the date of a Change in Control and (ii) the Measurement Date corresponding to the [_____] anniversary of the Baseline Date, then this award expires in its entirety, and no Shares are issued or issuable with respect to this award.

4.    Timing and Form of Distribution.  If a Performance Dependent Issuance is triggered, the Company shall distribute to the Participant the number of Shares calculated pursuant to Section 3 above as soon as practicable after the applicable Measurement Date but in no event later than 45 days after such Measurement Date, except that (a) if the Participant is not subject to U.S. income taxes on this award, the Distribution Date may be a later date if required by applicable law, and (b) if the Participant is not an Eligible Participant, the Company may, in its sole discretion, delay the Distribution Date and the issuance of Shares upon a Performance Dependent Issuance until such time as the Company has all of the necessary information about the Participant to issue Shares to the Participant and to calculate, withhold, and account for Tax-Related Items. It is the Participant’s responsibility to ensure that the Company has all such necessary information. Each date of distribution of Shares is referred to as the “Distribution Date.” Once any Shares have been distributed pursuant to this award, the award expires in its entirety, and the Participant has no further rights with respect to any PSUs hereunder. 

5.    Responsibility for Taxes.  

(a)    The Participant acknowledges that, regardless of any action taken by the Company, the ultimate liability for all income tax, social insurance, payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”) is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company. The Participant further acknowledges that the Company (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the PSUs, including but not limited to the grant, vesting or settlement of the PSUs, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends; and (ii) does not commit to and is under no obligation to structure the terms of the grant or any aspect of the PSUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result. Furthermore, if the Participant is subject to Tax-Related Items in more than one jurisdiction, the Participant acknowledges that the Company may be required to withhold or account for Tax-Related Items in more than one jurisdiction. Prior to any relevant taxable or tax withholding event, as applicable, the Participant agrees to make adequate arrangements satisfactory to the Company to satisfy all Tax-Related Items. 

(b)    In this regard, Participant authorizes the Company to satisfy any applicable withholding obligations with regard to all Tax-Related Items by withholding in Shares to be issued upon settlement of the PSUs. If such withholding in Shares is problematic under applicable tax or securities law or has materially adverse accounting consequences, then by the Participant’s acceptance of the PSUs, the Participant authorizes and directs the Company and any brokerage firm acceptable to the Company to sell on the Participant’s behalf a whole number of Shares from those Shares issued to the Participant as the Company determines to be appropriate to generate cash proceeds sufficient to satisfy any withholding obligation for Tax-Related Items. The Participant agrees to execute and deliver such documents as may be reasonably required in connection with the sale of any Shares pursuant to this Section 5(b).

(c)    Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding rates or other applicable withholding rates, including maximum applicable rates in the Participant’s jurisdiction(s), in which case the Participant may receive a refund of any over-withheld amount and will have no entitlement to the equivalent in Shares. If the obligation for Tax-Related Items is satisfied by withholding in Shares, for tax purposes, the Participant is deemed to have been issued the full number of Shares subject to the Performance Dependent Issuance, notwithstanding that a number of the Shares are held back solely for the purpose of paying the Tax-Related Items.

(d)    Finally, the Participant agrees to pay to the Company, including through withholding from Participant’s salary or other cash compensation paid to the Participant by the Company any amount of Tax-Related Items that the Company may be required to withhold or account for as a result of Participant’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if the Participant fails to comply with the Participant’s obligations in connection with the Tax-Related Items (including the obligations set forth in Section 4 above).

6.    Nontransferability of Award.  The Participant shall not sell, assign, transfer, pledge or otherwise encumber this award, either voluntarily or by operation of law, except by will, the laws of descent and distribution, or pursuant to a qualified domestic relations order. However, the Participant shall not transfer this award to any proposed transferee if, with respect to such proposed transferee, the Company would not be eligible to use a Form S-8 for the registration of the issuance and sale of the Shares subject to this award under the United States Securities Act of 1933, as amended.

7.    No Right to Employment or Other Status.  This award shall not be construed as giving the Participant the right to continued employment or any other relationship with the Company. The Company expressly reserves the right to dismiss or otherwise terminate its relationship with the Participant free from any liability or claim under the Plan or this award, except as expressly provided in this award.

8.    No Rights as Shareholder.  The Participant has no rights as a shareholder with respect to any Shares distributable under this award until such Shares are issued to the Participant.

9.    Provisions of the Plan.  This award is subject to the provisions of the Plan, a copy of which is furnished to the Participant with this award.

10.    Nature of the Grant.  By accepting this Agreement, the Participant acknowledges as follows: 

(a)    The Plan is established voluntarily by the Company, is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan.

(b)    The grant of the PSUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future awards of PSUs or benefits in lieu of PSUs even if PSUs have been awarded repeatedly in the past. All decisions with respect to future grants of PSUs and/or Shares, if any, are at the Company’s sole discretion. 

(c)    The PSUs and the Shares subject to the PSUs are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company, and the PSUs are outside the scope of the Participant’s employment or services contract, if any. 

(d)    The Participant is voluntarily participating in the Plan. 

(e)    The PSUs, the Shares subject to the PSUs, and the income and value of the PSUs and Shares are not intended to replace any pension rights or compensation.

(f)    The PSUs, the Shares, and the income and value of the PSUs and Shares are not part of normal or expected compensation or salary for any purpose (including but not limited to the calculation of any severance, resignation, termination, redundancy, dismissal or end of service payments; bonuses; long-service awards; pension, retirement or welfare benefits; or similar payments) and in no event should be considered as compensation for, or relating in any way to, past services for the Company. 

(g)    Unless the parties otherwise agree, the PSUs, the Shares subject to the PSUs, and the income and value of the same are not consideration for, or granted in connection with, any service the Participant may provide as a director of a subsidiary of the Company.

(h)    The future value of the Shares underlying the PSUs is unknown and cannot be predicted with certainty. If the Participant receives Shares upon a Performance Dependent Issuance, the value of such Shares may increase or decrease in value. 

(i)    In consideration of the grant of the PSUs, no claim or entitlement to compensation or damages arises from termination of the PSUs or Shares, diminution in value of the Shares or termination of the Participant’s employment or other service relationship by the Company for any reason whatsoever and whether or not in breach of applicable labor laws or the Participant’s employment agreement, if any. The Participant irrevocably releases the Company from any such claim that may arise. If, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by accepting this Agreement, the Participant is deemed irrevocably to have waived his or her entitlement to pursue such claim.

(j)    Further, if the Participant ceases to be an Eligible Participant for any reason whatsoever and whether or not in breach of applicable labor laws or the Participant’s employment agreement, if any, the Participant’s right to vesting of the PSUs under this Agreement and the Plan, if any, terminates effective as of the date that the Participant is no longer actively employed by the Company or is no longer otherwise an Eligible Participant, and will not be extended by any notice period mandated under applicable law. The Company has the exclusive discretion to determine when the Participant is no longer an Eligible Participant for purposes of this Agreement and the Plan. 

(k)    The Participant acknowledges and agrees that neither the Company nor any of its affiliates or agents is liable for any foreign exchange rate fluctuation between Participant’s local currency and the United States Dollar that may affect the value of the PSUs or of any amounts due to Participant pursuant to the settlement of the PSUs or the subsequent sale of any Shares acquired upon settlement. 

11.    Imposition of Other Requirements.  The Company reserves the right to impose other requirements on the Participant’s participation in the Plan, on the PSUs and on any Shares acquired under the Plan to the extent that the Company determines are necessary or advisable for legal or administrative reasons, except that with respect to awards that are subject to Section 409A of the Code and the guidance thereunder (“Section 409A”), to the extent so permitted under Section 409A. Furthermore, the parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement and the Plan.

12.    Data Privacy. 

(a)    The Participant is hereby informed that Cimpress N.V. will collect from the Participant through his or her employer (if not employed by Cimpress N.V.) certain personal information about the Participant, including the Participant’s personal data, such as his or her name, home address and telephone number, email address, date of birth, social security/insurance number, passport or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all PSUs or any other entitlement to Shares awarded, canceled, exercised, vested, unvested or outstanding in the Participant’s favor (“Data”).

(b)    The Participant is hereby informed and aware that Cimpress N.V. will collect and process the Data described above to perform (i) its contractual obligations and activities pursuant to this Agreement and the Plan, as well as (ii) those activities in conformity with applicable law and regulations that Cimpress N.V. as a publicly traded company at the NASDAQ Global Select Market must adhere to. Such data processing activities of the Participant ́s Data by Cimpress N.V. will therefore be for purposes including but not limited to implementing, administering and managing the Plan. Cimpress N.V. will process the Participant ́s Data as described in this Section 12 for the term of this Agreement and after its termination for a period as required by the Plan, by law or as necessary for the protection of the Company ́s legitimate interests. 

(c)    The Participant will, in connection with the PSUs and the acquisition, holding and/or transfer of Shares or cash resulting from participation in the Plan, be provided with a brokerage account set up and managed by E*TRADE Financial Services, Inc. (including E*TRADE Securities LLC and any other involved affiliates or successors), a stock plan service provider located in the United States or such other stock plan service provider as the Company may select in the future (the “Service Provider”). 
As such, the Participant is hereby informed and aware that Cimpress N.V. will use and transfer (with assistance of its subsidiary Cimpress USA Incorporated as described below under Section 12(e)), in electronic or other form, the Participant ́s Data to the Service Provider insofar such use and transfer to the Service Provider of the Participant ́s Data is necessary for the set up and management of the individual stock brokerage accounts and further related contractual obligations that apply to Cimpress N.V. under this Agreement and the Plan.

(d)    Cimpress N.V. is, with regard to the implementation, administration and management of the Plan, assisted within the Cimpress group of companies by its subsidiary Cimpress USA Incorporated. The Participant is hereby informed and aware that his or her Data, including his or her personal data, can therefore be transferred by Cimpress N.V./Company to Cimpress USA Incorporated (or any other affiliated company in the Cimpress-group providing global-equity related services to Cimpress N.V./Company) if the transfer of the Participant ́s Data is necessary because the legitimate interests of Cimpress N.V./Company require that the Data be handled by a US-entity for purposes including but not limited to the global administration and management of the Plan and related Cimpress equity strategy, as well as for global human resources, finance and/or reporting purposes. Besides the foregoing processing purposes of its legitimate interests, any transfer by Cimpress N.V./Company to Cimpress USA Incorporated (and/or any other involved affiliated company in the Cimpress-group) or any employee with responsibilities relating to securities, compliance or legal may also be necessary in order to ensure Cimpress N.V.s ́ compliance with applicable legal obligations (including, without limitation, disclosures required to be made to courts or governmental authorities and agencies, with respect to tax requirements and in response to subpoenas and other legal process or orders).

(e)     Cimpress N.V. will ensure, in accordance with Article 46 of the Regulation 2016/679 of the European Parliament and of the Council on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (“GDPR”), that any transfer of personal data from Participants employed by an employer with a corporate seat in the European Economic Area (“EEA”) or Switzerland to data controllers or data processors – such as the Service Provider or Cimpress USA Incorporated – located outside the borders of the EEA or Switzerland in a country that is viewed as not having an adequate level of protection (e.g., the United States) is subject to a prior agreement of those recipients with the EU standard contractual clauses for the transfer of personal data as included in the Commission Decisions of 27 December 2004 (2004/915/EC) and 5 February 2010 (2010/87/EC).

(f)    Cimpress N.V. will ensure in accordance with Article 9 of the GDPR that any sensitive data of the Participant (e.g., a passport or social security number) employed by an employer with a corporate seat in the EEA or Switzerland will only be collected and further processed in accordance with the purposes as set out in this Agreement and the Plan, after obtaining the Participant ́s prior explicit consent.

(g)    The Participant may, when entitled thereto under the GDPR, exercise his or her data subject rights by requesting the Company for access to his or her personal data (including a copy of the personal data that Company holds about the Participant) or exercise his or her right to rectification, erasure, restriction, data portability and objection. The Participant can exercise most of the foregoing data subject rights himself or herself by using the related functionalities in his or her local human resources system or by accessing his or her brokerage account with the Service Provider. Alternatively, the Participant can submit such a  ́data subject right ́ request to his or her local HR representative or Cimpress ́ LTI Plan Administrator. 

13.    Section 409A.

(a)    This award is intended to comply with or be exempt from the requirements of Section 409A and shall be construed consistently therewith. Subject to Sections 8(f) and 9(e) of the Plan, the Company reserves the right, to the extent the Company deems necessary or advisable in its sole discretion, to unilaterally amend the Plan or this Agreement to prevent this award from becoming subject to the requirements of Section 409A. However, the Company makes no representations or warranties and has no liability to the Participant or to any other person if any of the provisions of or payments under this award are determined to constitute nonqualified deferred compensation subject to Section 409A but do not satisfy the requirements of Section 409A.

(b)    If the PSUs are considered to be “nonqualified deferred compensation” within the meaning of Section 409A, and the Participant is considered a “specified employee” within the meaning of Section 409A, then notwithstanding anything to the contrary in this Agreement, the Company shall not deliver to the Participant any Shares required to be delivered upon a Performance Dependent Issuance that occurs upon a termination of employment until the earlier of (i) the six-month and one-day anniversary of the Participant’s termination of employment and (ii) the Participant’s death. In addition, solely to the extent that the PSUs are considered to be “nonqualified deferred compensation” and solely to the extent that another agreement between the Participant and the Company provides for a Performance Dependent Issuance and delivery of the Shares upon a “change in control,” such event must constitute a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(i) in order for the Shares to be delivered.

(c)    For purposes of Section 13(b) of this Agreement, “termination of employment” and similar terms mean “separation from service” within the meaning of Section 409A. The determination of whether and when Participant’s separation from service from the Company has occurred shall be made in a manner consistent with, and based on the presumptions set forth in, Treasury Regulation Section 1.409A-1(h). Solely for purposes of this Section 13(c), “Company” includes all persons with whom the Company would be considered a single employer under Section 414(b) and 414(c) of the Code.

14.    Exemption from Section 457A of the Code.  The Plan and this award are not intended to be subject to Section 457A of the Code, and the Company shall administer the Plan and this award agreement in accordance with such intent. Notwithstanding Section 8(f) of the Plan, if the Plan or this award is subject to Section 457A of the Code, the Company may amend the Plan or this award agreement or adopt other policies or procedures or take other actions, including amendments or actions that would result in a reduction to the benefits payable under this award, that the Company deems necessary or appropriate to exempt the award from Section 457A of the Code, to preserve the intended tax treatment of the benefits provided with respect to the award, or to mitigate any additional tax, interest or penalties or other adverse tax consequences that may apply under Section 457A of the Code if an exemption is not available. However, the Company makes no representations or warranties and has no liability to the Participant or to any other person if this award is not exempt from or otherwise results in adverse tax consequences under Section 457A of the Code.

15.    Obligation to Update Contact Information.  Because a Performance Dependent Issuance, if any, may occur after the Participant’s relationship with the Company has terminated, the Participant is responsible for notifying the Company in writing of each change in the Participant’s contact information and residence. 

16.    Severability.  If any provision of this Agreement or the Plan or the application of any provision hereof to any person or circumstance is held to be invalid or unenforceable, the remainder of this Agreement and the Plan and the application of such provision to any other person or circumstance is not affected, and the provisions so held to be unenforceable shall be reformed to the extent (and only to the extent) necessary to make it enforceable and valid.

17.    Language.  If the Participant receives this Agreement or any other document related to the Plan translated into a language other than English, the English version controls.

18.    Electronic Delivery.  The Company may, in its sole discretion, deliver any documents related to current or future participation in the Plan by electronic means. The Participant consents to receive such documents by electronic delivery and agrees to participate in the Plan through an online or electronic system established and maintained by the Company or a third party designated by the Company.

19.    Addendum.  The PSUs and the Shares acquired under the Plan are subject to any country-specific terms and conditions set forth in any addendum to this Agreement or the Plan, and in the event of a conflict between this Agreement and any such addendum, the addendum governs. If the Participant may be considered to be a citizen of or residing or working in more than one country or relocates his or her residence or transfers his or her employment to one of the countries included in any such addendum, the Company may determine in its discretion the country-specific terms and conditions that apply to the Participant to the extent that such application is necessary or advisable in order to comply with applicable law or facilitate the administration of the Plan. Each such addendum, if any, constitutes part of this Agreement.

20.    Entire Agreement and Waiver.  This Agreement, the Plan, and any applicable country-specific addendum set forth the entire agreement of the parties hereto with respect to the subject matter contained herein and supersede all prior agreements, promises, covenants, arrangements, communications, representations or warranties, whether oral or written, with respect to the subject matter contained herein. Without limiting the foregoing, the terms of any executive retention agreement or employment agreement do not apply to the PSUs or this award. The Participant acknowledges that a waiver by the Company of the breach of any provision of this Agreement shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Participant or any other Participant.

21.    Foreign Asset/Account Reporting Requirements.  Depending on the Participant’s country, the Participant may be subject to foreign asset/account, exchange control and/or tax reporting requirements in connection with the PSUs, the acquisition, holding and/or transfer of Shares or cash (including dividends and the proceeds arising from the sale of Shares) resulting from participation in the Plan and/or the opening and maintaining of a brokerage or bank account in connection with the Plan. The Participant may be required to report such assets, accounts, account balances and values, and/or related transactions to the applicable authorities in his or her country. The Participant may also be required to repatriate any funds received in connection with the PSUs to his or her country and may be required to use a specific account for doing so and/or to convert the funds to local currency. The Participant acknowledges that he or she is responsible for ensuring compliance with any applicable foreign asset/account, exchange control and tax reporting requirements. The Participant further understands that he or she should consult his or her personal legal advisor on these matters.

22.    Insider Trading Restrictions/Market Abuse Laws.  Depending on the Participant’s country, the Participant may be subject to insider trading restrictions or market abuse laws, which may affect the Participant’s ability to accept, acquire, sell or otherwise dispose of Shares or rights to Shares (including PSUs) during such times as the Participant is considered to have “inside information” regarding the Company as defined by applicable laws. Any restrictions under these laws are separate from and in addition to any restrictions that may be imposed under any applicable Company insider trading policy. The Company is not responsible for such restrictions or liable for the failure on the Participant’s part to know and abide by such restrictions. The Participant should consult with his or her own personal legal advisers to ensure compliance with applicable insider-trading and market-abuse laws in the Participant’s country, and the Participant acknowledges that he or she is responsible for complying with any applicable restrictions.

SCHEDULE A

Table 1
	
			
	Year (Anniversary of
Baseline Date)
	3YMA CAGR
	Multiplier to the 
Number of Vested PSUs
Subject to the Award

	[_____]
	[_____]
	[_____]

	[_____]
	[_____]
	[_____]

	[_____]
	[_____]
	[_____]

	[_____]
	[_____]
	[_____]

	[_____]
	[_____]
	[_____]

	[_____]
	[_____]
	[_____]

	[_____]
	[_____]
	[_____]

	[_____]
	[_____]
	[_____]

Table 2
Applies only to a Change in Control
	
		
	3YMA CAGR
	Multiplier to the 
Number of Vested PSUs
Subject to the Award

	25.8925% or above
	Variable Cap

	20% to 25.8925%
	250.0%

	19 to 19.99%
	225.0%

	18 to 18.99%
	212.5%

	17 to 17.99%
	200.0%

	16 to 16.99%
	187.5%

	15 to 15.99%
	175.0%

	14 to 14.99%
	162.5%

	13 to 13.99%
	150.0%

	12 to 12.99%
	137.5%

	11 to 11.99%
	125.0%

	Less than 11%
	0%

The first row of each Table above applies a limit (the "Variable Cap") to the 3YMA value of the share issuance (defined as the number of Shares to be issued multiplied by the 3YMA at the Measurement Date on which the Performance Dependent Issuance is triggered) to a maximum of ten times the 3YMA grant value of this PSU award (defined as the number of PSUs granted multiplied by the Baseline 3YMA). Therefore, in cases of a 3YMA CAGR above 25.8925%, the Company shall apply the Variable Cap (which shall be less than 250.0%) in order to achieve the fixed ten times maximum 3YMA value of the share issuance. The actual closing price of the Shares issued upon the Performance Dependent Issuance may be higher or lower than the 3YMA used to calculate the number of Shares issued at such time.

The calculation of the Variable Cap is as set forth below. The “Measurement Period” is the period of time from the Baseline Date to the applicable Measurement Date.
(10/(1+Measurement Date CAGR)^Measurement Period)) = Multiplier to the number of PSUs

Example: 
		
	•
	$70 Baseline 3YMA 

		
	•
	27% Measurement Date CAGR

		
	•
	Year 6 - Measurement Period

(10/(1+27%)^6) = 238.3% multiplier

PARTICIPANT’S ACCEPTANCE
By signing or electronically accepting this Agreement, the Participant agrees to the terms and conditions hereof. The Participant hereby acknowledges receipt of a copy of the Plan.

Employee PSU agreementExhibit

Execution Version

AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amended and Restated Employment Agreement (“Agreement”), dated as of December 9, 2016, is made by and between National Pen Co. LLC, a Delaware limited liability company, its successors and assigns (the “Company”), and Peter Kelly (“Employee”).
Background
WHEREAS, following the consummation of the transactions (the “Transactions”) contemplated by that certain Purchase Agreement dated as of the date hereof (the “Purchase Agreement”), by and among the Company, Cimpress USA Incorporated, a Delaware corporation, National Pen Holdings, LLC, a Delaware limited liability company, National Pen Blocker Holdings, L.P., a Delaware limited liability partnership, and National Pen Blocker Corp., a Delaware corporation, the Company desires to employ Employee pursuant to the terms of this Agreement, and Employee desires to provide personal services to the Company in return for certain compensation under this Agreement; and 
WHEREAS, the Parties desire and intend that this Agreement supersede any and all prior employment agreements and understandings between Employee and the Company, including, without limitation that certain Agreement, dated as of June 8, 2016, as amended, and that certain Retention and Separation Agreement, dated as of February 17, 2012, as amended (collectively, the “Existing Agreements”), and to provide for the employment of Employee upon the terms and conditions set forth herein.
NOW THEREFORE, in consideration of the mutual covenants set forth in this Agreement and intending to be legally bound hereby, the parties agree as follows:
1.Effective Date.  This Agreement shall take effect on the “Closing Date” (as defined in the Purchase Agreement) (the “Effective Date”), and shall have no legal force or effect whatsoever prior thereto (or in the event the Closing Date does not occur for any reason, whether due to termination of the Transactions or otherwise).
2.    At-Will Employment.  Employee shall be employed by the Company on an “at will” basis, meaning either the Company or Employee may terminate Employee’s employment at any time, with or without cause or advance notice. Any contrary representations that may have been made to Employee shall be superseded by this Agreement. This Agreement shall constitute the full and complete agreement between Employee and the Company on the “at will” nature of Employee’s employment with the Company, which may be changed only in an express written agreement signed by Employee and a duly authorized officer of the Company.  Employee’s rights to any compensation following a termination shall be only as set forth in Section 9.  The period of Employee’s employment with the Company from the Effective Date and continuing until terminated by either party shall be referred to in this Agreement as the “Employment Term.”  
3.    Duties.  During the Employment Term, Employee will serve in the position of EVP, Chief Executive Officer of the Company (the “Board”).  Employee will report to the Chief Executive Officer of Cimpress (“CEO”) and/or such executive designated by the CEO, performing such duties as are normally associated with Employee’s position and such duties as are assigned to Employee from time to time, subject to the oversight and direction of the CEO or his designee.  Employee shall well and faithfully serve the Company and use best efforts to promote and maintain the interests and reputation of the Company.  As a full-time, exempt employee, Employee will devote substantially all of Employee’s business time and attention to the business of the Company, although Employee may undertake and engage in the activities permitted pursuant to Section 17, below.  Employee shall perform Employee’s duties under this Agreement principally out of the Company’s corporate headquarters.  In addition, Employee shall make such business trips to such places as may be necessary or advisable for the efficient operations of the Company, with international airfare travel in business class.
4.    Company Policies.  The employment relationship between the parties shall also be subject to the Company’s personnel policies and procedures as they may be interpreted, adopted, revised or deleted from time to time in the Company’s sole discretion.  Notwithstanding the foregoing, in the event that the terms of this Agreement differ from or are in conflict with the Company’s general employment policies or practices, this Agreement shall control.
5.    Compensation.  For services rendered during this Agreement and for Employee’s covenants hereunder, the Company shall pay Employee a salary equivalent to $675,000 on an annualized basis (the “Base Salary”), payable in such installments and at such times as the Company pays its salaried employees.  All payments shall be subject to applicable withholdings.  Effective as of July 1, 2017, (a) the Base Salary shall be increased to $710,000 on a going forward basis during Employee’s employment with the Company and (b) Employee shall thereafter no longer be eligible to receive an annual cash bonus under this Agreement or under any other incentive compensation plan adopted by the Company (unless expressly stated in a written agreement or plan entered into or adopted by the Company in its sole discretion).  Except as otherwise set forth herein, the Base Salary shall be subject to review and adjustment by the Company in its sole discretion.
6.    Cash Bonus.
(a)    Subject to Employee’s continuous performance of services to the Company under this Agreement during the period commencing on the Effective Date and ending on June 30, 2017, Employee shall be entitled to receive a one-time cash bonus in the amount of $150,000, payable subject to standard federal and state payroll withholding requirements.  Such bonus, if earned, will be paid to Employee in the payroll period immediately following June 30, 2017.  If, prior to June 30, 2017, Employee incurs a termination of employment that qualifies Employee for benefits under Section 4 of the Executive Retention Agreement, then in addition to the benefits provided in Section 4 of the Executive Retention Agreement, and subject to the same conditions, and in addition to any benefits under Section 9 of this Agreement, Employee will receive, at the same time payment of the Severance Payment (as defined under the Executive Retention Agreement) is paid under the Executive Retention Agreement, a lump sum payment equal to a pro rata portion of the above referenced one time cash bonus, payable subject to standard federal and state payroll withholding requirements, with such pro ration based on the number of days of Employee’s continuous services to the Company from the Effective Date through the date of Employee’s termination as compared to the number of days from the Effective Date through June 30, 2017.
(b)    Employee shall receive a payment under the Company’s 2016 annual incentive plan (the “2016 AIP Bonus”) equal to forty-five percent (45%) of Employee’s base salary as in effect as of December 9, 2016.  The 2016 AIP Bonus shall be paid, subject to standard federal and state payroll withholding requirements, upon the Company’s next regularly scheduled payroll date following the Closing (as defined in the Purchase Agreement) (but, for Section 409A exemption purposes, no later than March 15, 2017).
7.    Long Term Incentive Awards.
(a)    At the first quarterly meeting of the Supervisory Board of Cimpress N.V. occurring after the Effective Date, Employee will be granted a long-term incentive award under the Cimpress 2016 Performance Equity Plan, as may be amended (the “Plan”), with a grant value of USD $2,000,000 (the “Initial Grant”) which will be allocated as follows: 
(1)    60%, or USD $1,200,000, of the Initial Grant will be awarded as Performance Share Units (“PSUs”) under the Plan.  Any issuance of shares in respect of PSUs is subject to two vesting conditions, namely service-based vesting and the share price performance of Cimpress ordinary shares.  As for the service-based vesting condition, the PSUs for the Initial Grant will vest over a four-year period, with 25% vesting on January 2, 2018 and an additional 25% vesting on each of the following three anniversaries of the initial vesting date, so long as Employee remains continuously employed by or in another service relationship with the Company or another Cimpress affiliate through and including each such date, respectively, and the performance-based vesting will be as described in the plan document. The share price performance will be measured six to ten years after the PSUs for the Initial Grant are granted, which means that the earliest opportunity for a share issuance would be six years after the PSUs for the Initial Grant are granted. 
(2)    40%, or USD $800,000, will be awarded as a cash retention bonus.  The cash retention bonus will vest and payout over a four-year period, with 25% vesting on January 2, 2018 and an additional 25% vesting on each of the following three anniversaries of the initial vesting date, so long as Employee remains continuously employed by or in another service relationship with the Company or another Cimpress affiliate through and including each such date, respectively. 
(b)    Subject to Employee’s continuous performance of services to the Company under this Agreement during the period commencing on the Effective Date and ending on the grant date for the Cimpress FY18 Grant (which grant date will be no later than the first quarterly meeting of the Supervisory Board of Cimpress N.V. occurring after June 30, 2017), Employee will be entitled to receive a long-term incentive award under the Plan with a grant value of USD $400,000 (the “Cimpress FY18 Grant”) which will be allocated as follows: 
(1)    not less than 60%, or USD $240,000, of the Cimpress FY18 Grant will be awarded as PSUs under the Plan, as directed electronically by Employee during the election period indicated by Cimpress.  Any issuance of shares in respect of PSUs is subject to two vesting conditions, namely service-based vesting and the share price performance of Cimpress ordinary shares.  As for the service-based vesting condition, the PSUs for the Cimpress FY18 Grant will vest over a four-year period, with 25% vesting on June 30, 2018 and an additional 25% vesting on each of the following three anniversaries of the initial vesting date, so long as Employee remains continuously employed by or in another service relationship with the Company or another Cimpress affiliate through and including each such date, respectively, and the performance-based vesting will be as described in the plan document. The share price performance will be measured six to ten years after the PSUs for the Cimpress FY18 Grant are granted, which means that the earliest opportunity for a share issuance would be six years after the PSUs for the Cimpress FY18 Grant are granted.
(2)    whatever portion of the Cimpress FY18 Grant is not allocated to PSUs by Employee (subject to the limitations set forth in subsection (b)(1) above), will be awarded as a cash retention bonus, which will vest and payout over a four-year period, with 25% vesting on June 30, 2018 and an additional 25% vesting on each of the following three anniversaries of the initial vesting date, so long as Employee remains continuously employed by or in another service relationship with the Company or another Cimpress affiliate through and including each such date, respectively.
(c)    While this Section 7 is a general description of Employee’s long-term incentive awards, such awards will at all times be subject to all terms, time and performance vesting schedules, limitations, restrictions and termination provisions set forth in the applicable plan documents and the separate PSU award agreement(s) that Employee will sign or accept electronically to evidence each grant of PSUs. The Initial Grant award agreements shall be in substantially the latest (as of the Effective Date) publicly available form and the Cimpress FY18 Grant award agreements shall be in substantially the form applicable to all Cimpress grantees as of the time of grant of the Cimpress FY18 Grant.
(d)    Employee will be eligible for additional annual and other future equity grants consistent with Employee’s position and the Company’s policies as may be in effect from time to time.
8.    Fringe Benefits and PTO.  During the Employment Term, Employee shall be entitled to participate on the same basis as similarly situated executives in the employee benefit plans and programs of the Company which are made generally available from time to time by the Company to employees in comparable positions, subject to and on a basis consistent with the terms and conditions of such plans and arrangements, including a defined contribution retirement plan, private medical care benefits, life insurance, and disability insurance (provided that, for the avoidance of doubt, the Company may terminate and or amend the terms of any employee benefit plans or programs at any time).  Employee shall receive indemnification arrangements at least as favorable as provided to any officer of the Company or of Cimpress N.V. Employee will be entitled to keep any paid time off (“PTO”) which he accrued prior to the Transactions, provided that such PTO is unpaid and owing as of the Effective Date.  Employee’s use of such PTO, and continued accrual rates (if any), will be governed by the Company’s applicable policy regarding such use and accrual.
9.    Executive Retention Agreement.  Concurrently with the execution of the Agreement, the parties shall enter into an Executive Retention Agreement, in the form attached hereto as Exhibit A (the “Executive Retention Agreement”).  
10.    Confidential Information.  At no time during or after Employee’s employment will Employee (a) use Confidential Information (as defined below) for any purpose other than such employment as directed by the Company or (b) disclose Confidential Information to any person or entity other than the Company or persons or entities to whom disclosure has been authorized by the Company (except that Employee may disclose such information to the minimum extent necessary to comply with governmental or judicial process).  Employee understands that nothing in this Agreement is intended to: (i) prohibit Employee from reporting possible violations of federal law or regulation to any governmental agency or entity, or making other disclosures that are protected under applicable federal law or regulation; or (ii) limit Employee’s ability to respond to inquiries from, or otherwise cooperate with, any governmental or regulatory investigation (“Protected Activities”).  Employee further understands that the Company in no way requires Employee to seek authorization from the Company or inform the Company about any Protected Activities. If Employee engages in such Protected Activities, Employee will take reasonable precautions to prevent the unauthorized use or disclosure of any Confidential Information to any parties other than the relevant government agencies and inform such authorities that the information being disclosed may be Confidential Information.  If any disclosure pursuant to this section is necessary to comply with judicial process, Employee agrees to notify the Company of such pending disclosure and consult with the Company concerning the advisability of seeking a protective order or other means of preserving the confidentiality of the Confidential Information.
As used herein, “Confidential Information” means all information of a technical or business nature relating to the Company or its affiliates (past or present), including, without limitation, trade secrets, inventions, drawings, file data, documentation, diagrams, specifications, know-how, processes, formulae, models, test results, marketing techniques and materials, marketing and development plans, price lists, pricing, policies, business plans, information relating to customer or supplier identities, characteristics and agreements, financial information and projections, flow charts, software in various stages of development, source codes, object codes, research and development procedures and employee files and information; provided, however, that “Confidential Information” shall not include: (i) any information that has become public knowledge through no fault of Employee, (ii) any information which was publicly known or made generally available prior to the time of disclosure by the Company to Employee, or (iii) is in Employee’s rightful possession, without confidentiality obligations, at the time of disclosure by the Company as shown by Employee’s then-contemporaneous written records; provided further that any combination of individual items of information shall not be deemed to be within any of the foregoing exceptions merely because one or more of the individual items are within such exception, unless the combination as a whole is within such exception. Employee understands that nothing in this Agreement is intended to limit employees’ rights to discuss the terms, wages, and working conditions of their employment, as protected by applicable law.  Employee also agrees not to disclose any confidential or proprietary information that the Company obtains from a third party and which the Company treats as confidential or proprietary or designates as confidential, whether or not such information is owned or developed by the Company.  All Confidential Information, regardless of form, is the exclusive property of the Company.  Employee assigns to the Company any rights to the foregoing Confidential Information and any other proprietary data, inventions or other intellectual property used or developed during or prior to the term hereof by Employee in providing services to the Company.  Employee will deliver promptly to the Company on termination of employment with the Company, or at any other time the Company requests, all memoranda, notes, records, reports and other documents (and all copies thereof) in any form whatsoever relating to the business of the Company or members of its affiliated group or any other property (including, but not limited to, Company computers with its files, data and licensed materials stored thereon intact, access cards, credit cards, network access devices, cell phones, electronic storage devices, tools, equipment) that he obtained while employed by, or otherwise serving or acting on behalf of, the Company.
11.    Intellectual Property.  Any Confidential Information, as well as any trade secrets, know-how, ideas (whether or not protectable under trade secret laws), invention (whether or not protectable under patent laws), copyrightable or patentable work, works of authorship, improvement, technique, discoveries, designs, development, information fixed in any tangible medium of expression (whether or not protectable under copyright laws), product, trademarks, service marks, trade names, trade dress, service, computer technology, software, and the like, whether tangible or intangible, directly or indirectly resulting or arising from, or created through, the Company’s business, in which a property interest exists or may exist if asserted (under federal or state law) (hereafter “Intellectual Property”), shall be the sole and exclusive property of the Company.  All copyrightable Intellectual Property shall be deemed “works for hire” under the federal Copyright Act.  To the extent that Employee retains any interest in such Intellectual Property, Employee, without requiring the provision of additional consideration, (a) hereby does assign and will irrevocably transfer and assign to the Company or its designee his entire right, title and interest in such Intellectual Property, including all patents, trade secrets, copyrights, and renewals of copyrights, which assignment operates automatically upon the conception of the Intellectual Property; (b) shall execute whatever assignments and other documents that the Company may reasonably request of Employee to vest fully title of such Intellectual Property in the Company; and (c) shall comply with all reasonable requests by the Company to assist the Company in enforcing and defending its rights in such Intellectual Property vis-a-vis any person or entity.  Notwithstanding any other provision of this Section 11 to the contrary, no assignment shall apply hereunder to the extent that California Labor Code Section 2870 prohibits such assignment.  California Labor Code Section 2870(a) provides as follows:  “Any provision in any employment agreement which provides that an employee shall assign, or offer to assign, any of his or her rights in an invention to his or her employer shall not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:  (i) relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or (ii) result from any work performed by the employee for the employer.”  Nothing in this Agreement is intended to expand the scope of protection, if any, provided to Employee by Sections 2870 through 2872 of the California Labor Code.
12.    Non-Interference.  Employee agrees that during his employment and during the Restricted Period, Employee will not, directly or indirectly, on behalf of himself or any other person or entity:
(a)    use the Company’s Confidential Information, including customer lists, to (i) solicit, induce, recruit, or encourage any customer or potential customer of the Company or any of its subsidiaries to purchase or acquire any products or services competitive or potentially competitive to those provided or performed by the Company or any of its subsidiaries or to terminate its business relationship with the Company or any of its subsidiaries or (ii) encourage any Supplier or Potential Supplier of the Company to terminate its business relationship with the Company; or
(b)    criticize or disparage in any way (i) the Company or its officers, directors, or employees or (ii) any other Released Person, except as may be allowed by applicable law, including, but not limited, to under Section 7 of the National Labor Relations Act.
For purposes of these provisions, “Supplier” means any person or entity which provided goods or services to the Company or any of its subsidiaries during the last year of Employee’s employment with the Company.  “Potential Supplier” means any person or entity which has contacted or been contacted by or otherwise identified by the Company or any of its subsidiaries as a possible supplier during the last year of Employee’s employment with the Company, assuming that Employee knows of such contact.
13.    Non-Solicitation.  Employee agrees that during his employment with the Company and during the Restricted Period, Employee shall not directly or indirectly, alone or in concert with others, recruit, solicit, or induce, or attempt to recruit, solicit, or induce, any employee of the Company or any of its subsidiaries to terminate his or her employment with, or otherwise cease his or her relationship with the Company or any of its subsidiaries. Notwithstanding the foregoing, for purposes of this Agreement, neither (x) the placement of general advertisements that may be targeted to a particular geographic or technical area but that are not specifically targeted toward employees of Company or its subsidiaries or their respective successors or assigns, nor (y) the solicitation or hiring of any person with respect to whose recruitment or hire the Employee is not directly and personally involved or about which recruitment or hire the Employee otherwise does not have non-trivial knowledge, shall constitute a breach of this Section.
14.    Enforcement.  Employee agrees that the restrictions contained in Sections 10, 11, 12, and 13 of this Agreement are necessary for the protection of the business and goodwill of the Company and are considered by him/her to be reasonable for that purpose.  Employee further agrees that any breach of Sections 10, 11, 12, and 13 of this Agreement will cause the Company substantial and irrevocable harm for which money damages will be inadequate and therefore, in the event of any such breach or threatened breach, in addition to such other remedies as may be available, the Company shall have the right to specific performance and injunctive relief.  The parties further agree that to the extent any provision or provision of Sections 10, 11, 12, and 13 of this Agreement shall be held, found or deemed to be unreasonable, unlawful or unenforceable by a court of competent jurisdiction, then any such provision or portion thereof shall be deemed to be modified to the extent necessary in order that any such provision or portion thereof shall be legally enforceable to the fullest extent permitted by applicable law.
15.    Defend Trade Secrets Act.  Pursuant to the Defend Trade Secrets Act of 2016, Employee acknowledges that Employee will not have criminal or civil liability under any federal or state trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, if Employee files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the trade secret to Employee’s attorney and may use the trade secret information in the court proceeding, if Employee (x) files any document containing the trade secret under seal and (y) does not disclose the trade secret, except pursuant to court order.
16.    Continuing Obligations.  Employee acknowledges that his obligations under Sections 10, 11, 12, 13 and 15 of this Agreement shall survive any termination of Employee’s employment and/or the Employment Term to the extent provided in this Agreement, regardless of the reason(s) for said termination, and whether such termination is voluntary or involuntary on Employee’s part.  Employee also agrees to provide reasonable cooperation to the Company following termination of employment.  Employee shall be reimbursed for any expenses incurred in such cooperation.
17.    Duty of Loyalty.  Except with the prior written consent of the Company, Employee will not, while employed by the Company, undertake or engage in any other employment, occupation or business enterprise that would directly or indirectly compete with, or would otherwise conflict or interfere with Employee’s responsibilities and the performance of Employee’s duties hereunder, except for (a) reasonable time devoted to volunteer services for or on behalf of such religious, educational, non-profit and/or other charitable organization as Employee may wish to serve, (b) reasonable time devoted to activities in the non-profit and business communities consistent with Employee’s duties, including without limitation industry-related boards and committees, and (c) such other activities as may be specifically approved by the Company. In addition, with the prior written consent of the CEO, which shall not be unreasonably withheld or delayed, Employee may devote a reasonable time to membership on the boards of directors of companies or entities that do not compete directly or indirectly with the Company, provided such membership does not conflict or interfere with Employee’s responsibilities and the performance of Employee’s duties hereunder. This restriction shall not, however, preclude Employee from owning less than one percent (1%) of the total outstanding shares of a company with shares that are actively traded on an established U.S. or non-U.S. stock exchange or national securities market or an over-the-counter market, or from employment or service in any capacity with Affiliates of the Company.  As used in this Agreement, “Affiliates” means an entity under common management or control with the Company.
18.    Miscellaneous.
(a)    Employee agrees that, to the extent permitted by applicable law, the terms of this Agreement shall be and remain confidential; provided, however, that Employee may disclose such details on a confidential basis to his spouse (if any), financial counselor, tax advisor, or legal counsel retained by Employee.  Employee understands that nothing in this Agreement is intended to limit employees’ rights to discuss the terms, wages, and working conditions of their employment, as protected by applicable law.
(b)    The validity or enforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, all such invalid and unenforceable clauses to be deemed severable in all respects.
(c)    This Agreement shall not be modified or modifiable (nor shall any obligation herein be waived, discharged or released) except by a written instrument signed by both Employee and a duly authorized representative of the Company acting at the direction of the Board of Managers of the Company.
(d)    This Agreement shall be construed and enforced in accordance with the laws of the State of California.  It shall not be construed for or against either party, and the principle of contract construction whereby all ambiguities shall be resolved in favor of the non-drafting party shall not be employed in the construction or interpretation of this Agreement.
(e)    This is the complete Agreement between the parties relating to employment and the subject matter hereof.  It shall supersede any and all prior agreements between the parties, whether written or oral, express or implied, and all prior agreements between the parties are hereby terminated, extinguished, null and void in all respects, including, without limitation the Existing Agreements, except and to the extent provided in Section 1 above, and any provisions that relate to restrictions on competition or solicitation, recruitment, hiring, interference or similar obligations in any agreement binding Employee and to which the Company or any of its affiliates are a party or beneficiary other than the Non-Competition and Non-Solicitation Agreement to be entered into contemporaneously herewith. 
(f)    The waiver by either party of any breach of one provision of this Agreement shall not be deemed to constitute a waiver of any other provision of this Agreement or any subsequent breach of such provision or any other provision.
(g)    This Agreement shall inure to the benefit of the Company and its successors and assigns and shall be assignable by the Company in its sole discretion to any person or entity.  To the extent permissible under applicable law, this Agreement shall inure to the benefit of, and be binding upon, Employee’s heirs, beneficiaries, and legal representatives, but shall not be assignable by Employee.
(h)    The portion of this Agreement entitled “Background” is incorporated into and forms a part of this Agreement as if fully set out within the body of the Agreement.
(i)    Section 409A.  This Agreement shall be interpreted and administered so that any amount or benefit payable hereunder shall be exempt from or compliant with Code Section 409A, so that none of the severance or other payments and benefits to be provided hereunder will be subject to the additional tax imposed under Code Section 409A, and any ambiguities or ambiguous terms herein will be interpreted to be exempt or so comply.  The Company shall not be held liable for any taxes, interest, penalties or other amounts owed by Employee under Code Section 409A.  The Company and Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under Code Section 409A. Employee’s right to receive any installment payments under this Agreement, including, without limitation, any salary continuation payments that are payable on Company payroll dates, shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment as permitted under Code Section 409A.  To the extent that reimbursements or other in-kind benefits under this Agreement constitute “nonqualified deferred compensation” for purposes of Code Section 409A, (i) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Employee, (ii) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (iv) except as specifically provided herein or in the applicable reimbursement arrangement, any such reimbursements or in-kind benefits must be for expenses incurred and benefits provided during the Employee’s lifetime.  Notwithstanding anything to the contrary in this Agreement, if Employee is deemed on the date of termination to be a “specified employee” within the meaning of that term under Code Section 409A(a)(2)(B), then with regard to any payment or the provision of any benefit that is considered deferred compensation under Code Section 409A payable on account of a “separation from service,” such payment or benefit shall not be made or provided until the date which is the earlier of (A) the expiration of the six (6)-month period measured from the date of such “separation from service” of Employee, and (B) the date of Employee’s death, to the extent required under Code Section 409A.  Upon the expiration of the foregoing delay period, all payments and benefits delayed pursuant to this Section 18(i) (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to Employee in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein. The Company warrants and represents that none of the payments or benefits hereunder are or will constitute, or will be payable or provided pursuant to, a nonqualified deferred compensation plan of a nonqualified entity within the meaning of Code Section 457A, and the regulations and guidance (including, for avoidance of doubt, Internal Revenue Service Notice 2009-8) thereunder.
(j)    Other Definitions.
(1)    “Cimpress” means Cimpress N.V., a Netherlands public limited liability company and the ultimate parent entity of the Company as of the Effective Date whose ordinary shares are publicly traded on NASDAQ.
(2)    “Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time, or any successor thereto, together with the rules, regulations and interpretations promulgated thereunder.
(3)    “Restricted Period” means the period equal to twelve (12) months following the Termination Date.
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IN WITNESS WHEREOF, the parties hereto have executed this Amended and Restated Employment Agreement as of the date first above written.
	
		
	NATIONAL PEN CO. LLC

By:   /s/Richard Obrigawitch
Name:   Richard Obrigawitch
Title:   CFO, VP, Secretary

	EMPLOYEE

By:   /s/Peter Kelly
Name:  Peter Kelly

8796872_5.docx
EAST\138002738.8

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