Document:

Agreement

 EXHIBIT 10.136 
  
 CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THISDOCUMENT HAVE BEEN REDACTED AND HAVE BEEN FILED SEPARATELY WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION 
  
 Execution copy
30.01.04 
  
 AGREEMENT 
  
 This Agreement is made as of this 22nd day of January of 2004 by and between
FERRER INTERNACIONAL S.A., at Gran Via Carlos III, 94, 08028 Barcelona, Spain (hereinafter referred to as “Ferrer”), and INDEVUS PHARMACEUTICALS INC., (formerly INTERNEURON PHARMACEUTICALS INC.) a corporation having offices at 99 Hayden
Avenue, Suite 200, Lexington, MA 02421 (hereinafter referred to as “Indevus”). All terms not defined herein are used herein as defined in the LA. 
  

	 	A.	WHEREAS, Indevus and Ferrer entered into a LA (hereinafter referred to as “LA”) on January 13th 1993, relating to the licensing of the Preparation in the Territory;

  

	 	B.	WHEREAS, Indevus submitted an IND number [*] (the “IND”) relating to the Preparation. 

  

	 	C.	WHEREAS, Ferrer desires (i) to seek agreement with Indevus to terminate the LA, (ii) the assistance of Indevus in the transfer of the Data (as hereinafter defined) and the IND (iii)
the exclusive use of the New Patents, (iv) the co-operation and assistance of Indevus in the future with respect to certain technical and regulatory matters relating to the Preparation, and (v) to recover and assume responsibility, directly or
indirectly through a sublicensee, for marketing the Preparation in the Territory; 

  
 D. WHEREAS, Indevus desires to enter into this Agreement with Ferrer to effect the foregoing objectives; 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

	 	E.	WHEREAS, both Parties understand and agree that Indevus has not marketed or sold the Preparation in the Territory during the term of the LA and that Indevus shall have no right to
so market or sell the Preparation under the terms of this Agreement. 

  
 NOW, THEREFORE, the Parties agree as follows: 
  

	 	1.	Ferrer and Indevus agree to terminate the LA on the terms and conditions hereinafter contained. 

  

	 	2.	Articles 6, 7, 23, 26 and 27 of the LA as well as the Addendum to the LA signed between the Parties on January 15th 1993, shall survive termination. Unless otherwise expressly provided herein, all of the other provisions of the LA shall terminate and be of no further force
and effect. 

  

	 	3.	In accordance with Article 23 of the LA, Ferrer is not compelled to indemnify Indevus.. All rights recovered by or transferred to Ferrer or its designee, as a consequence of the
termination of the LA, shall be free of encumbrances and/or any obligation that Indevus might have acquired with third parties. 

  

	 	4.	Notwithstanding the above, as the sole consideration for the agreement by Indevus to (i) terminate the LA and the recovery by Ferrer of all rights on the Compound and the
Preparation; (ii) assist Ferrer in the transfer of the Data and the IND; (iii) assist Ferrer in the future with respect to certain technical and regulatory matters relating to the Preparation (iv) recognize in favor of Ferrer the exclusive rights of
use and exploitation of U.S. Patents and Patent applications listed in Schedule A (hereinafter jointly referred to as the “New Patents”), all of which is agreed to and acknowledged by Ferrer, the Parties agree as follows:

  

	 	a)	FERRER, its associates, its licensees, and its distributors have an exclusive right to freely use and dispose of the New Patents in the countries of the Territory. As a compensation
of the aforementioned exclusive right granted to FERRER, or by FERRER for the license or distribution agreements to third parties following 

  

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 execution of this Agreement which relate to the Compound and/or the Preparation, FERRER shall grant to
INDEVUS the right to receive, separately for each one of the countries of the Territory during the while the New Patents remain in force and also as long as pending (the “Term”), the following payments, when applicable: 
  
 1) In the event that the program is partnered and/or commercialized in the
Territory without additional Phase III clinical data (i.e. pivotal clinical trial data acceptable to FDA conducted after the effective date of this Agreement): 
  

(i) Ferrer would pay Indevus 50% of all up-front and milestone payments received by Ferrer from third parties in the Territory, and

  
 (ii) Ferrer would pay Indevus royalties of
[*]% of the net sales of the Compound or the Preparation sold by Ferrer, its associates, its licensees, or its distributors, in the Territory 
  
 2) In the event that the program is partnered and/or commercialized in the Territory with additional Phase III clinical data (i.e. pivotal clinical trial
data acceptable to FDA conducted after the effective date of this Agreement) required prior to approval: 
  
 (i) Ferrer would pay Indevus 50% of all up-front and milestone payments received by Ferrer from third parties in the Territory, and

  
 (ii) Ferrer would pay Indevus royalties of
[*]% of the net sales of the Compound or the Preparation sold by Ferrer, its associates, its licensees, or its distributors, in the Territory; 
  
 (iii)Once the amounts paid by Ferrer to Indevus as a result of this paragraphs (2) have reached the cumulative total amount of
[*]million $US, then INDEVUS only remaining right will consist in receiving, when applicable, for each one of the countries of the Territory during the Term a royalty of [*] percent ([*]%) of the net sales of the Compound or the
Preparation sold by Ferrer, its associates, its licensees, or its distributors in the Territory. 
  
  
 Notwithstanding Section 4 (a) (2) above, if, under the circumstances described in Section 4 (a) (2) above
only, Ferrer would be unable to obtain an agreement with a third party in the Territory which will allow 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

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 Ferrer to obtain from said third party the [*]% royalty on net sales included in the LA, then the
Parties agree to negotiate in good faith an adjustment of their respective royalties with the aim of reaching a reasonable and equitable share of the royalties to be received from the third party by both Indevus and Ferrer. 
  
 Ferrer will pay any and all royalties owed to third parties by Ferrer in respect of the
manufacture, use or sale of the Preparation or Compound, if any. All payments to be made under this Agreement shall be make in United States dollars in the United States to a bank account designated by Indevus. The royalties due under this Section
shall be paid quarterly, within thirty (30) days following each calendar quarter in which such royalties are earned. Ferrer shall keep accurate books and accounts of record in connection with the manufacture, use and/or sale by or for it of the
Preparation hereunder. Indevus, at its expense, through a internationally recognized certified public accounting firm accepted by Ferrer, shall have the right to access such books and records exclusively and directly related to and for the sole
purpose of verifying the royalty statements; such access shall be conducted after reasonable prior notice by Indevus to Ferrer. 
  
 b) FERRER and INDEVUS shall give notice to the other Party of any infringement or claim by a third party related to the New Patents of which FERRER or
INDEVUS have knowledge. 
  
 c) With respect to the rights and
obligations of the Parties regarding the use by Ferrer of the New Patents outside the Territory, the provisions of the Addendum to the License Agreement shall continue to control. Ferrer agrees to furnish to Indevus within 30 days after (i)
execution of this Agreement and (ii) the end of each calendar year thereafter, a written report detailing the use of such New Patents and an accounting of any royalties or other payments received by Ferrer in respect of such New Patents. Indevus or
its designated representatives shall have a right to audit such reports on an annual basis on reasonable notice to Ferrer. 
  

	 	5.	a) From the date of the signature of this Agreement (“Effective Date”) and until final regulatory approval (“Approval”) is received for the regulatory
submissions in the 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

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 Territory (the “Approval Date”), Indevus shall continue to use reasonable efforts to assist
Ferrer or its designee to directly or indirectly manage the process of obtaining Approval from the United States Food and Drug Administration (and/or all agencies under its direct control or any successor organization) (the “FDA”)
permitting the marketing of the Preparation under the regulatory submissions. 
  
 Indevus shall provide copies to Ferrer or its designee of all documents, data or other correspondence received from or proposed to be submitted to the FDA (or any other regulatory authority) with respect to the
Preparation. 
  
 b) Throughout the regulatory process until the
Approval Date, each of Indevus and Ferrer shall designate a contact person responsible for jointly coordinating the efforts and interaction of the Parties relating to the regulatory process. The initial contact persons for the Parties shall be:

  

	 	(i)	For Indevus: 

 Indevus Pharmaceuticals,
Inc. 
 99 Hayden Avenue, Suite 200 
 Lexington, MA 02421 
 Attention: Glenn Cooper, Chairman, President & Chief Executive Officer 
  

	 	(ii)	For Ferrer: 

 Gran Via Carlos III, 94
entlo 
 08023 Barcelona 
 Spain 
 Attention: Mr. Jorge Ramentol, Director General 
 With a copy to the attention of: Dr. Carlos De Lecea, VP International & Business Development 
  

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	 	6.	Immediately after the Effective Date, Indevus shall take all necessary steps, including providing all reasonable assistance, executing and delivering all necessary documents and
making all filings with any regulatory authority necessary to transfer, convey and assign, free of charge, the ownership of any applications submitted by Indevus to any U.S. regulatory authorities (“Regulatory Applications”) to Ferrer or
its designee. 

  

	 	7.	Indevus shall take all necessary steps, including providing all reasonable assistance, executing and delivering all necessary documents and making all filings with any regulatory
authority necessary to transfer, convey and assign to Ferrer or its designee, free of charge, all of Indevus’s right title and interest, if any, in or to the Trademark application and the goodwill (if any) represented by such trademark (the
“Trademark Application”). 

  

	 	8.	Indevus shall promptly, but in no event later than 45 business days after the Effective Date, transfer, assign and convey free of charge to Ferrer, or its designee, the Original
Data, the Additional Data, the Development Work, the Test Results and all other documents, works or studies referring to the Preparation and/or the Compound, as well as all available new information referring to the Preparation and/or the Compound
(such items referred to collectively as the “Data”). 

  

	 	9.	Indevus acknowledge and agree that, as of the Effective Date, they shall have no further rights in or to any Data, and shall have no right to use or to retain copies or duplicates
of such items in any form after the Effective Date except for one copy to be kept in the Legal Department of Indevus for archival purposes. 

  

	 	10.	Indevus shall keep confidential the Original Data, the Additional Data, the Development Work and the Test Results, for a period of ten (10) years following execution of this
Agreement. 

  

	 	11.	a) Ferrer and Indevus each agree that all information considered confidential and proprietary by the disclosing party (“Confidential Information”) communicated to one

  

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 of them by the other (or otherwise obtained by the receiving party), including the existence of and terms
of this Agreement, will be received in strict confidence. The receiving party shall not disclose any Confidential Information to any third party without the prior written approval of the disclosing party. The receiving party shall properly safeguard
the Confidential Information with at least the same degree of care that the receiving party uses to protect its own similar categories of confidential and proprietary information, but no less than a reasonable degree of care under the circumstances.
The receiving party shall not make any copies of confidential information received from the disclosing party except as necessary for its employees with a need to know (and who are subject to a written confidentiality obligation at least as strict as
that contained in this Agreement). Any copies of Confidential Information that are made shall be identified as belonging to the disclosing party and marked “confidential,” “proprietary,” or with a similar legend.
“Confidential Information” shall not be deemed to include information which (i) is already known to the receiving party and not subject to any confidentiality restrictions at the time it is obtained from the disclosing party, (ii) is or
becomes publicly known through no wrongful act of the receiving party, or (iii) is rightfully received by the receiving party from a third party without restriction on further disclosure. 
  
 b) All notices to third parties and all other publicity and public
announcements concerning the transactions contemplated by this Agreement shall require the prior written consent of the Party not proposing to generate such publicity, which consent shall not be unreasonably withheld; provided that Indevus shall be
permitted to disclose the information with respect to this Agreement which Indevus reasonably believes is required to be disclosed in order to comply with the periodic reporting requirements of the Securities Exchange Act of 1934 (the
“Act”). 
  

	 	12.	Indevus shall refrain from manufacturing and commercializing the Preparation following execution of this Agreement, and Indevus shall in no event be entitled to make use of any Data
after the Approval Date. This restriction shall supersede and replace all restrictions on competition by either of the Original Licensees contained in the LA. 

  

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	 	13.	Indevus hereby represents, warrants, and covenants that (i) IND No. [*] is the only regulatory application submitted by them relating to the Preparation and the Compound;
(ii) all Regulatory Applications and related materials (to the extent necessary for properly carrying out the Regulatory Process) have been filed with the FDA and have been maintained in accordance with applicable law; (iii) there are no outstanding
encumbrances, liens, or agreements, either written, oral, or implied, in connection with the Regulatory Applications, the Trademark Application, the Original Data, the Additional Data, the Development Work, or the Test Results; and (iv) Indevus has
not filed any patent applications relating to the Compound or the Preparation other than those included in Schedule A of this Agreement. 

  

	 	14.	Indevus hereby represents, warrants and covenants that, to its best knowledge, as of the date submitted to the FDA and as of the date transferred, conveyed and assigned to Ferrer or
its designee, the IND contains no material misrepresentations or omissions. 

  

	 	15.	(a) Effective upon the date of this Agreement, Ferrer hereby agrees to indemnify, save, defend and hold Indevus and its agents and employees harmless from and against any and all
suits, claims, actions, or demands by a third party for damages, liabilities, expenses and/or loss, including reasonable legal expense and attorneys’ fees (collectively, “Losses”), resulting directly from (i) the manufacture, use,
development, handling, storage, marketing, sale or other disposition of the Compound or the Preparation by Ferrer, its Affiliates or sublicensees, or (ii) Ferrer’s breach in any material respect of any of its representations, warranties or
obligations set forth in this Agreement or Ferrer’s negligence or willful misconduct; except to the extent such Losses result from the negligence or willful misconduct of Indevus, its agents or employees or to the extent Indevus is obligated to
indemnify Ferrer for such Losses as provided in Section 15(b). 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

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 (b) Notwithstanding the provisions of Article 7 of the LA which shall survive termination of the LA,
Indevus hereby further agrees to indemnify, save, defend and hold Ferrer and its agents and employees harmless from and against any and all Losses resulting directly from (i) Indevus’ breach in any material respect of any of its
representations, warranties or obligations set forth in this Agreement, (ii) Indevus’ negligence or willful misconduct, except to the extent such Losses result from the negligence or willful misconduct of Ferrer, its agents or employees, or to
the extent Ferrer is obligated to indemnify Indevus for such Losses as provided in Section 15(a). 
  
 (c) In the event that a Party (the “Indemnified Party”) is seeking indemnification under this Section 15, it shall inform the other Party (the
“Indemnifying Party”) of a claim as soon as reasonably practicable after it receives notice of the claim, shall permit the Indemnifying Party, at its sole expense, to assume direction and control of the defense of the claim (including the
right to settle the claim solely for monetary consideration), and shall cooperate as requested (at the expense of the Indemnifying Party) in the defense and settlement of the claim. The Indemnified Party shall not voluntarily make any payment or
incur any expense in connection with any claim or suit without the consent of the Indemnifying Party. 
  

	 	16.	All disputes arising under this Agreement shall be governed by and interpreted under Articles 26 and 27 of the LA. 

  

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 IN WITNESS WHEREOF, the Parties, through their authorized representatives, have executed this Agreement. 
  

			
	FERRER INTERNACIONAL, S.A.
		
	 By:
	 	 /S/ Carlos De Lecca

	 Name:
	 	 Carlos De Lecca

	 Title:
	 	 VP International & Business Development

	 Date:
	 	 30th
January 2004

	
	INDEVUS PHARMACEUTICALS, INC.
		
	 By:
	 	 /S/ Glenn L. Cooper

	 Name:
	 	 Glenn L. Cooper

	 Title:
	 	 CEO

	 Date
	 	 1/30/04

  

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 SCHEDULE A 
  

New Patents 
  
 US [*] 
 Method of [*] 
 Granted: [*] 
  
 US [*] 
 Method of [*] 
 Granted: [*] 
  
 US [*] 
 Reduction of [*] 
 Granted: [*] 
  
 US [*] 
 [*], process and use

 Issued: [*] 
  
 US [*] 
 Method of treating [*] 
 Filed: [*] 

	[*]	CONFIDENTIAL TREATMENT REQUESTED 

  

 11Exhibit 10.43

 Exhibit 10.43 
  
 AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
  
 THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) is made as of December 30, 2003, by and
between BRUCE V. THOMAS (“Thomas”) and CADMUS COMMUNICATIONS CORPORATION (the “Company”), a Virginia corporation. 
  
 WHEREAS, Thomas and the Company are parties to an Employment Agreement dated July 1, 2000 (the “Original Employment Agreement”); and

  
 WHEREAS, Thomas and the Company have agreed to amend
certain provisions of the Original Employment Agreement, and they have determined to effect such amendments by amending and restating the Original Employment Agreement in its entirety as provided herein.; 
  
 NOW, THEREFORE, in consideration of the foregoing, the mutual
agreements and understandings set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Thomas and the Company hereby agree as follows: 
  
 1. Position and Duties. (a) The Company hereby agrees that,
subject to Section 4(a) below, Thomas will continue to serve as the President and Chief Executive Officer of the Company during the term of this Agreement. 
  
 (b) During the term of this Agreement, Thomas agrees to devote substantially all of his business time, attention and energy to the business of the Company
and any other activities which may be reasonably assigned to him by the Board of Directors of the Company (the “Board”) and which are appropriate for the President and Chief Executive Officer of the Company, and Thomas agrees to use his
best efforts to promote the interests of the Company. Notwithstanding the foregoing, Thomas may serve as an outside director of one or more other companies, participate in industry and other trade groups, accept public speaking engagements and
otherwise undertake charitable, civic, community and personal activities; provided that Thomas will not serve as a director of another public company without the approval of the Board of Directors of the Company; and provided that such activities do
not, individually or in the aggregate, unreasonably interfere with Thomas’ performance of his duties for the Company and do not harm the Company’s interests or reputation in any material respect. 
  
 (c) Thomas agrees to abide by the Cadmus Code of Conduct, a copy of which has
previously been provided to Thomas, and all other material Company policies, as such Code of Conduct and other material policies may be amended from time to time. 
  
 2. Term of Agreement. Employment under this Agreement began on July 1, 2000 and will terminate on June 30,
2006, unless Thomas’s employment is earlier terminated pursuant to Section 4 below or unless the term of this Agreement is extended pursuant to this Section 2. Subject to Section 4(a) below, the term of this Agreement will be automatically
extended for successive one (1) year periods, beginning on July 1, 2004, and continuing on each July 1 thereafter (each, an “Extension Date”) so as to terminate three (3) years after the applicable Extension Date, unless the Company gives
Thomas written notice, at least ninety (90) days prior 

 to the applicable Extension Date, that the term hereof will not be so extended. June 30, 2006, or the anniversary thereof
to which the term of this Agreement has been extended under this Section 2 is referred to hereinafter as the “Scheduled Termination Date.” 
  
 3. Compensation and Benefits. (a) The Company agrees that Thomas’ annual salary will be $450,000 for the Company’s fiscal year
beginning July 1, 2003, and ending June 30, 2004 (“Fiscal Year 2004”), payable in accordance with the Company’s regular payroll practices. Thomas’ annual salary will be reviewed by the Human Resources and Compensation Committee
of the Board of Directors and approved by the Board annually thereafter, but in no event will such annual salary be less than $450,000 per year in any subsequent year during Thomas’ employment hereunder. Thomas’ annual salary will be
subject to withholding and deductions to the extent required by applicable law or taxing authorities or as Thomas may authorize. 
  
 (b) In addition, the Company agrees that Thomas will be eligible for a bonus under the Company’s short-term Executive Incentive Plan (together with
any successor plan, the “Executive Incentive Plan”) for Fiscal Year 2004 in an amount that the Board, in its sole discretion, determines to be earned and payable under the terms of the Executive Incentive Plan, with Thomas’
“target” bonus under the Executive Incentive Plan for Fiscal Year 2004 being set at sixty percent (60%) of his annual salary for Fiscal Year 2004, or $270,000, and with such bonus to be paid, if awarded, in accordance with the
Company’s customary practices and procedures. Thomas will also be eligible to be considered for bonuses under the Executive Incentive Plan (and any other plans providing bonuses to senior executive officers of the Company) for subsequent fiscal
years of the Company. All such bonuses will be subject to withholding and deductions to the extent required by applicable law or taxing authorities or as Thomas may authorize. 
  
 (c) The Company agrees that Thomas will also be eligible to be considered for stock option awards under and as provided in
any stock option plan for employees subsequently adopted by the Company. All such options will be subject to the Company’s customary terms and conditions, including, without limitation, terms and conditions regarding exercisability, vesting and
performance standards. 
  
 (d) Except as otherwise provided in
Section 4(g) below, Thomas will be eligible during Thomas’ employment hereunder to participate in (i) any and all employee benefit plans, medical insurance plans, retirement plans, stock plans and other benefit plans, and (ii) any and all other
employee incentive and benefit programs (including, without limitation, programs providing allowances, reimbursement of expenses and other perquisites), as such plans and programs are in effect from time to time for senior executives of the Company.
Such participation will be subject to the terms of the applicable plan and program documents and the Company’s generally applied policies. Without limiting the generality of the foregoing, the Company specifically agrees that, during
Thomas’ employment hereunder, Thomas will remain designated as an “Eligible Employee” under and a participant in the Company’s Supplemental Executive Retirement Plan (the “SERP”) and will remain eligible to participate
in the Company’s Non-Qualified Savings Plan for so long as those plans provide for active participation by any employee of the Company. 
  
 4. Termination of Employment and Severance Payments. (a) Thomas acknowledges that he is employed at the will of the Company and that his
employment may be terminated by the Company at any time with or without cause, for any reason or for no reason. 
  

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 This Agreement is not intended and will not be construed so as to create any right of Thomas to continued employment. The
Company may terminate Thomas’ employment at any time without Cause (as defined below) by providing thirty (30) days’ prior written notice to Thomas (“Termination Without Cause”). The Company may terminate Thomas’ employment
for Cause effective as of the date of notice by providing written notice to Thomas (“Termination With Cause”). The Company may terminate Thomas’ employment if the Board reasonably determines that Thomas is unable to perform his duties
by reason of Total Disability (as defined below) by providing ten (10) days’ prior written notice to Thomas. Thomas may resign as an employee at any time for Employee Cause (as defined below) by providing thirty (30) days’ prior written
notice to the Company (“Termination for Employee Cause”). Thomas may also resign as an employee at any time, for any other reason or for no reason, by providing thirty (30) days’ prior written notice to the Company
(“Resignation”). 
  
 (b) (1) In the event of a
Termination Without Cause or a Termination for Employee Cause, the Company agrees to pay Thomas each of the following: (i) the Standard Termination Payments (as defined below); plus (ii) an amount per year (appropriately prorated for a partial year)
equal to the Salary/Bonus Continuation Payment (as defined below), subject to applicable withholding and deductions, for the period (the “Severance Period”) beginning on the effective date of the Termination Without Cause or the
Termination for Employee Cause, as applicable, and ending thirty (30) months after the effective date of the Termination Without Cause or the Termination for Employee Cause, as applicable; provided that, in the case of a Termination for Employee
Cause resulting from the Company’s giving Thomas written notice under Section 2 above that the term hereof will not be extended, the Severance Period will end thirty (30) days after the date which is thirty (30) months after the date on which
Thomas receives such written notice from the Company; plus (iii) an amount equal to the Supplemental Pension Payment (as defined below); plus (iv) if Thomas is not then fully vested in his accrued benefit under the SERP and if there is a Change in
Control (as defined below) during the Severance Period, an amount equal to the SERP Equivalent Payment (as defined below); plus (v) an amount, if any, equal to the maximum matching contribution Thomas would have received under the Company’s
Thrift Savings Plan and the Company’s Non-Qualified Savings Plan but for the termination of his employment based on the Salary/Bonus Continuation Payment and determined on the basis of the terms of such plans as in effect (A) on the date of
Thomas’ termination of employment if the payment is made in a lump sum or (B) for each applicable payment period if the payment is made in normal increments on the Company’s regularly scheduled payroll dates and bonus payment dates during
the Severance Period; plus (vi) an amount equal to the cash allowances, reimbursement of expenses and other cash perquisites Thomas would have received during the Severance Period if he had remained President and Chief Executive Officer of the
Company during the Severance Period. The Company will pay the amounts described in clauses (i), (iii) and (vi) above within thirty (30) days after the effective date of the Termination Without Cause or the Termination for Employee Cause, as
applicable. The Company will, in its discretion, pay the amounts described in clauses (ii) and (v) above in a lump sum or in normal increments on the Company’s regularly scheduled payroll dates and bonus payment dates during the Severance
Period. The Company will pay the amount described in clause (iv) above within thirty (30) days after the applicable Change in Control occurs. 
  
 (2) In addition, in the event of a Termination Without Cause or a Termination for Employee Cause, the Company agrees that (i) all of Thomas’ stock
options granted by the Company to him, whether now outstanding or hereafter granted, will be fully vested and exercisable for eighteen (18) months after the effective date of the Termination Without Cause or 
  

 3 

 the Termination for Employee Cause, as applicable, but in no event beyond the maximum term specified in the applicable
option agreement, and this Section will be deemed to be an amendment to each such option agreement providing for such vesting and exercise, and (ii) Thomas will have the right, exercisable by Thomas giving written notice to the Company at any time
and from time to time while the applicable stock options are exercisable (as provided above), to require the Company to repurchase all or any part of Thomas’ outstanding stock options granted by the Company to him at a price equal to the value
of the applicable options under (A) the Black-Scholes option pricing model, valued as of the date such notice is given and assuming the risk-free interest rate is the then seven year Treasury bond yield, the dividend yield is the then current
dividend yield for Company stock, the volatility factor is that reported and used for valuing options in the Company’s last Form 10-K filed prior to the notice date (or if none, then .375), and the expected life of the option is the actual
remaining life of the option, or (B) if the Human Resources and Compensation Committee of the Company’s Board of Directors (the “Committee”) determines that the Black-Scholes option pricing model is no longer the appropriate valuation
model, an alternative valuation model reasonably selected by the Committee. 
  
 (3) Finally, in the event of a Termination Without Cause or a Termination for Employee Cause, the Company agrees that Thomas and his eligible family members will be entitled to participate during the Severance Period
in Cadmus’ welfare benefit plans on the same basis made available to eligible active employees of the Company, subject to the Company’s right to modify such welfare benefit plans from time to time, subject in the case of any welfare
coverage other than group health coverage to any termination of coverage imposed by the terms of the applicable insurance policies (which the Company agrees to make a good faith effort to have the insurer waive) and subject to the Company’s
right to substitute at any time any individual or other group insurance coverage(s) providing at least comparable coverage. Such group health coverage shall be considered part of Thomas’ COBRA coverage. Thomas will be responsible for the normal
contribution to the cost of maintaining his and his eligible family members’ participation in those welfare benefit plans (determined as though he were an active eligible employee). Subject to any limitation under applicable tax law, Thomas may
participate in Cadmus’ welfare benefit plans by making pre-tax salary reduction contributions from the amount due to him under this Section 4(b). 
  
 (4) Except as otherwise specifically provided in this Agreement, during the Severance Period, Thomas will not be entitled to accrue additional benefits
under or to otherwise continue to be an active participant in the Company’s Pension Plan, the Company’s Thrift Savings Plan, the Company’s Non-Qualified Savings Plan, the Company’s Deferred Compensation Plan, the SERP or any
other employee pension benefit plan of the Company. 
  
 (c) In the
event of a Termination With Cause or a Resignation, Thomas agrees that he will not be entitled to any compensation, bonus or benefits under this Agreement for the period after the written notice of Termination With Cause or the Resignation, as
applicable, is effective, other than his earned and unpaid base salary through the effective date of the Termination With Cause or the Resignation, as applicable, and any other payments or benefits required to be paid or provided to Thomas by
applicable law. 
  
 (d) In the event that this Agreement
terminates by its terms on the Scheduled Termination Date, the Company agrees to pay Thomas the Standard Termination Payments. The Company will pay such Standard Termination Payments within thirty (30) days after the Scheduled Termination Date.
After the termination of this Agreement on the Scheduled 
  

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 Termination Date, neither Thomas nor any of his family members will be entitled to accrue additional benefits under or to
otherwise continue to be an active participant in any of Cadmus’ welfare benefit plans or employee pension benefit plans, except as required by COBRA or any other applicable law. 
  
 (e) In the event that the Company elects to terminate the employment of
Thomas because of his Total Disability, the Company agrees to pay to Thomas (i) the Standard Termination Payments, and (ii) an amount equal to the Supplemental Disability Payment (as defined below), and Thomas will be entitled to such disability
payments as may be provided under the terms of the Company’s group long-term disability policy for employees generally (the “Disability Policy”) and such other employee benefits as may be provided under the terms of the Company’s
other employee benefit plans. The Company will pay the amounts described in clause (i) above within thirty (30) days after the effective date of the termination because of Thomas’ Total Disability, and the Company will, in its discretion, pay
the amounts described in clause (ii) above in a lump sum or in increments on the dates that correspond to the dates on which payments under the Disability Policy are payable. 
  
 (f) In the event Thomas’ employment terminates on account of his death (i) the Company agrees to pay to Thomas’
surviving spouse, or, if none, his estate, the Standard Termination Payments, (ii) the Company agrees to pay to Thomas’ beneficiaries (as properly designated in writing by Thomas) death benefits, if any, under the Company’s employee
benefit plans, and (iii) the Company agrees to pay to Thomas’ beneficiaries (as properly designated by Thomas under the applicable plans), or, if none, his estate, any benefit under any benefit plan that would otherwise have been due to Thomas
at year end, prorated up to the time of Thomas’ death as provided in the applicable plans. 
  
 (g) Except as otherwise provided in Section 9 below, the amounts to be paid and the other benefits to be provided to Thomas under this Section 4, if any,
are in lieu of any amounts or other benefits Thomas would otherwise be entitled to receive under any severance plan or policy now in effect or hereafter adopted by the Company, and Thomas agrees that he will have no right to receive any amount or
other benefit under any such severance plan or policy. 
  
 (h) For
purposes of this Agreement, the following terms will have the following meanings: 
  
 (i) “Cause” means: (1) Thomas is convicted of, or pleads nolo contendere to, any felony involving intentional injury to any
person or property, fraud, dishonesty or moral turpitude; (2) Thomas is materially derelict in the performance of his duties or refuses to perform duties reasonably assigned to him by the Board which are appropriate for the President and Chief
Executive Officer of the Company, provided that no such dereliction or refusal will constitute “Cause” hereunder unless (A) Thomas shall have received written notice of such dereliction or refusal from the Board (specifying in detail the
facts and circumstances on which the Board is relying) and a demand that the dereliction or refusal cease at least thirty (30) days prior to any termination of Thomas’ employment as a result thereof, and (B) Thomas shall have failed to cure
such dereliction or refusal during such thirty (30) day period; (3) Thomas takes any action or omits to take any action which constitutes willful misconduct or gross negligence; or (4) Thomas engages in fraudulent or dishonest behavior in violation
of the Code of Conduct or engages in behavior which constitutes sexual harassment in violation of the Code of Conduct; 
  

 5 

 (ii) “Change in Control” shall have the meaning assigned thereto in the
Employee Retention Agreement (as defined in Section 9 below); 
  
 (iii) “Employee Cause” means: (1) the Company’s material breach of this Agreement and the Company’s failure to remedy such breach within thirty (30) days after it receives written notice thereof
from Thomas; (2) the assignment to Thomas of any additional duties or the withdrawal from Thomas of any of his current responsibilities or authority which assignment or withdrawal materially adversely alters his position (including status, offices,
titles and reporting requirements) as it exists on the date of this Agreement; (3) the failure of the Company to continue to allow Thomas to participate in the Executive Incentive Plan or any other plan which is material to his total compensation in
a manner which is consistent with his performance and the participation of other senior executives of the Company; (4) receipt by Thomas of written notice from the Company under Section 2 above indicating that the term hereof will not be extended;
(5) any relocation of the Company’s headquarters to a location outside of a 25-mile radius of Richmond, Virginia; or (6) termination of the Company’s business or its day-to-day operations; 
  
 (iv) “Salary/Bonus Continuation Payment” means:
the sum of (1) the base salary payable to Thomas by the Company (without regard to Thomas’ elective deferral of payment thereof) for the two most recently ended fiscal years of the Company, and (2) Thomas’ average annual “target”
bonus under the Executive Incentive Plan of the Company (without regard to Thomas’ elective deferral of payment thereof) for the two most recently ended fiscal years of the Company; provided that, solely for purposes of calculating the amount
of the Salary/Bonus Continuation Payment hereunder, Thomas’ base salary for the fiscal years of the Company ended June 30, 2002, and June 30, 2003 will be deemed to be $450,000; 
  
 (v) “SERP Equivalent Payment” means: a lump sum amount equal to the difference between (1) the
actuarial equivalent of Thomas’ accrued benefit under the SERP, and (2) the actuarial equivalent of Thomas’ actual vested accrued benefit (paid or payable), if any, under the SERP, with “actuarial equivalent” being determined for
purposes of this definition utilizing the actuarial assumptions utilized in determining benefit cash-outs with respect to the Company’s Pension Plan on the January 1 immediately preceding the applicable Change in Control; 
  
 (vi) “Standard Termination Payments” means: the
sum of (1) Thomas’ earned and unpaid salary through the effective date of the termination of his employment with the Company, (2) any bonus agreed to by the Company that has accrued but not yet been paid to Thomas on the effective date of the
termination of his employment with the Company, (3) additional salary in lieu of Thomas’ accrued and unused vacation, (4) any unreimbursed business and entertainment expenses in accordance with the Company’s policies and (5) any other
amounts reimbursable to Thomas in accordance with the Company’s plans and policies; 
  
 (vii) “Supplemental Disability Payment” means: the difference between (1) the amount (not to exceed 60% of Thomas’ base
salary) Thomas would have been paid under the Disability Policy if the Disability Policy did not contain a cap on the payments payable thereunder, and (2) the amount actually paid to Thomas under the Disability 
  

 6 

 Policy and any other disability policy (group or individual) for which the premiums are paid by the
Company; 
  
 (viii) “Supplemental Pension
Payment” means: a lump sum amount equal to the difference between (1) the actuarial equivalent of the benefit payable under the Company’s Pension Plan which Thomas would have received if his employment had continued at the compensation
level in effect on the effective date of termination of Thomas’ employment for the remainder of the Severance Period, assuming for this purpose that all accrued benefits are fully vested and that benefit accrual formulas are no less
advantageous to Thomas than those in effect on the January 1 immediately preceding the effective date of termination of Thomas’ employment, but taking into account any cessation of accruals for all non-union employees under the Pension Plan,
and (2) the actuarial equivalent of Thomas’s actual vested benefit (paid or payable), if any, under the Company’s Pension Plan, with “actuarial equivalent” being determined for purposes of this definition utilizing the actuarial
assumptions utilized in determining benefit cash-outs with respect to the Company’s Pension Plan on the January 1 immediately preceding the effective date of termination of Thomas’ employment; and 
  
 (ix) “Total Disability” shall have the meaning
assigned thereto in the Disability Policy. 
  
 5.
Confidential Information. (a) In the event that Thomas’ employment with the Company is terminated for any reason, Thomas agrees that he will not at any time thereafter use for his own benefit or the benefit of any other Person (as
defined below), or disclose, divulge or communicate to any other Person, any Confidential Information (as defined below), except as specifically authorized by the Company in writing or except as required by applicable law. 
  
 (b) For purposes of this Agreement, “Person” means any corporation,
partnership, joint venture, trust, sole proprietorship, limited liability company, unincorporated business association, individual or other entity; and “Confidential Information” means all confidential information of the Company and its
subsidiaries and affiliates, including, without limitation, the Intellectual Property (as defined in Section 6(c) below); other trade secrets and inventions; acquisition and merger plans and information; corporate communications, public relations,
promotional, marketing and advertising plans and programs; research and development projects; plans and strategies for current and future business development; financial and statistical data; customer information, including, without limitation,
customer names, relationships, lists, sales and account records; sales and marketing strategies and pricing matters; and all other information of the Company or any of its subsidiaries or affiliates not generally known in the businesses in which the
Company or its applicable subsidiaries and affiliates are engaged. 
  
 6. Intellectual Property. (a) Thomas agrees that, as between Thomas and the Company, the Company owns and has full and exclusive rights to all of the Intellectual Property, including, without limitation, all related
copyrights, trademarks and patents. Without limiting the generality of the preceding sentence, Thomas further agrees that all of the Intellectual Property, to the extent applicable, constitutes “works made for hire” in favor of the Company
under the copyright laws of the United States. To the extent that a court finds that Thomas would otherwise have any rights in or to any of the Intellectual Property, Thomas hereby irrevocably assigns to the Company all of his right, title and
interest in and to the Intellectual Property and all related copyrights, trademarks and patents. 
  

 7 

 (b) Thomas agrees that, upon the request of the Company and at the Company’s expense, Thomas will
execute, deliver, file and record all further instruments and documents (including, without limitation, registrations and assignments of copyrights, trademarks, patents and other intellectual property rights), and take all further action, as the
Company deems necessary or prudent in order to insure that the Company owns and has full and exclusive rights to all of the Intellectual Property. 
  
 (c) For purposes of this Agreement, the “Intellectual Property” means all products, services, reports, studies, analyses, marketing strategies,
inventions, computer software, programs and applications, trade secrets, developments, methods, processes, ideas, works, concepts and know-how, used or useful in the business of the Company or any of its subsidiaries or affiliates, which have been
developed, created or reduced to practice by Thomas, whether alone or in cooperation with others, during his employment with the Company, any of its subsidiaries or any of their respective predecessors. 
  
 7. Restrictive Covenants. (a) In the event that Thomas’
employment with the Company is terminated for any reason, Thomas agrees that, during the period beginning on the effective date of such termination and ending on the date which is thirty (30) months after the effective date of such termination, he
will not, directly or indirectly: 
  
 (i) serve
as an officer, director, employee, principal, partner, agent, contractor or consultant of or for, or otherwise have a financial interest in, any Prohibited Business (as defined in Section 7(c) below) which sells or offers to sell products or
services in competition with the Company or any of its subsidiaries or affiliates in the Geographic Territory (as defined in Section 7(c) below); provided that this covenant will not prevent Thomas from purchasing or owning not more than five
percent (5%) of any class of securities of any corporation, whether or not such corporation is a Prohibited Business; 
  
 (ii) sell or offer to sell to any Person in the Geographic Territory any goods or services of any type then sold or offered by the Company
or any of its subsidiaries or affiliates; 
  
 (iii) otherwise knowingly interfere with or cause a reduction or termination of the business between the Company or any of its subsidiaries or affiliates and any customer or prospective customer of the Company or any of its subsidiaries or
affiliates; 
  
 (iv) hire or attempt to hire any
person employed or engaged by the Company or any of its subsidiaries or affiliates or encourage or solicit any such person to terminate his or her employment or engagement with the Company or such subsidiary or affiliate of the Company; 

 
 (v) knowingly interfere with or cause a reduction or
termination of the business relationship between the Company or any of its subsidiaries or affiliates and any business which supplies or supplied goods or services to the Company or its subsidiaries or affiliates; or 
  
 (vi) make any public statement which is either intended to
be or reasonably likely to be injurious or detrimental to the Company or any of its subsidiaries or affiliates or which is derogatory to any current or former director, officer or employee of the Company or any of its subsidiaries or affiliates.

  

 8 

 (b) Thomas acknowledges and agrees that, given the nature of the businesses in which the Company and its
subsidiaries and affiliates are engaged and given his past service as President and Chief Executive Officer of the Company, the restrictive covenants contained in Section 7(a) above are reasonable in the sense that they are no greater than is
necessary to protect the legitimate interests of the Company and not unduly harsh and oppressive in curtailing Thomas’ legitimate efforts to earn a livelihood. The parties therefore intend that these restrictive covenants be enforced to the
fullest extent permitted by applicable law. Each of these restrictive covenants is a separate and independent contractual provision. 
  
 (c) For purpose of this Agreement, “Prohibited Business” means any Person that is in competition with the Company or any of its subsidiaries or
affiliates or that provides goods or services of any type provided by the Company or any of its subsidiaries or affiliates; and “Geographic Territory” means the United States, Western Europe and India. 
  
 8. Enforcement. (a) Thomas acknowledges and agrees that any
violation by him of any of the confidentiality provisions of Section 5 above or any violation by him of any of the restrictive covenants set forth in Section 7 above would result in irreparable harm and injuries to the Company and its subsidiaries
and affiliates, and Thomas therefore also acknowledges and agrees that, in the event of any such violation by him, the Company will be entitled to obtain from any court of competent jurisdiction preliminary and permanent injunctive relief, damages
and an equitable accounting of all earnings and profits and to exercise all other rights and remedies to which the Company may be entitled in connection therewith. 
  
 (b) In addition, Thomas further acknowledges and agrees that, in the event of any violation by him of any of the
confidentiality provisions of Section 5 above or any of the restrictive covenants set forth in Section 7, the Company will have the right to withhold the balance of any amount that would otherwise be due to him under Section 4(b) above. 

 
 9. Employee Retention Agreement. Thomas and the Company are
parties to an Employee Retention Agreement dated June 27, 2000 (the “Employee Retention Agreement”), which the parties agree will survive the execution of this Agreement and will remain in full force and effect. In the event that there is
any conflict between the terms of this Agreement and the terms of the Employee Retention Agreement, (i) the terms of this Agreement will control in the event that neither a “Change in Control” (as defined in the Employee Retention
Agreement) nor any other cessation or termination of employment covered by the Employee Retention Agreement has occurred, and (ii) the terms of the Employee Retention Agreement will control in the event that either a “Change in Control”
(as defined in the Employee Retention Agreement) or another cessation or termination of employment covered by the Employee Retention Agreement has occurred. 
  
 10. Miscellaneous. (a) No modification, change or waiver of this Agreement or any term hereof will be binding,
unless executed in writing by Thomas and the Company evidencing the parties’ respective intent to be bound thereby. No waiver of any of the terms of this Agreement will constitute a waiver of any other term (whether or not similar), nor shall
any such waiver constitute a continuing waiver unless otherwise specifically provided. 
  
 (b) Thomas acknowledges and agrees that, because this is a contract for his personal services, he is not entitled to assign, subcontract or transfer any of the benefits provided to him or any of the obligations
imposed on him by this Agreement. This Agreement shall be binding on and will inure to the benefit of any successors or assigns of the Company. 
  

 9 

 (c) All notices, requests and other communications to a party hereunder will be in writing and will be
given to such party at its address set forth below or such other address as such party may hereafter specify in writing for this purpose to the other party: 
  
 If to Thomas: 
  
 Bruce V. Thomas 
 21 Clarke Road 
 Richmond, Virginia 23226 
  
 If to the Company: 
  
 Cadmus Communications Corporation 
 1801 Bayberry Court, Suite 200 
 Richmond, Virginia 23226 
 Attn: Chairman of the Board 
  
 (d) If any contest or dispute arises under this Agreement resulting from the actual failure or refusal of the Company to perform fully in accordance with
the terms hereof, the Company agrees to reimburse Thomas for all reasonable legal fees and expenses, if any, incurred by Thomas in connection with such contest or dispute. Such reimbursement will include, without limitation, the cost of
attorneys’ fees in reviewing this Agreement in connection with such contest or dispute, in negotiating or attempting to negotiate a settlement of such contest or dispute prior to Thomas’ making a claim or commencing an action or
proceeding, in prosecuting such an action or proceeding and in settling any matter relating to this Agreement. 
  
 (e) This Agreement will be governed by and construed in accordance with the laws of the Commonwealth of Virginia, without regard to its conflicts of law
principles. Each of the parties hereby submits to the exclusive jurisdiction of the courts of the Commonwealth of Virginia in the event that any litigation arising out of this Agreement occurs. 
  
 (f) This Agreement may be executed in counterparts, each of which will be
deemed to be an original but all of which together will constitute one and the same instrument. 
  
 (g) Sections 4, 5, 6, 7, 8 and 9 will survive the termination of this Agreement. 
  
 (h) Subject to Section 9 hereof, this Agreement constitutes the entire agreement between Thomas and the Company with respect
to the matters addressed herein and supersedes all prior agreements and understandings, whether written or oral, with respect to such matters. There are no representations, understandings or agreements of any nature or kind between the parties which
are not included herein. 
  

 10 

 IN WITNESS WHEREOF, Thomas has duly executed this Agreement and the Company has caused this
Agreement to be duly executed by its duly authorized representative, all as of the day and year first above written. 
  

			
	
	 /s/ Bruce V. Thomas

	

	 Bruce V. Thomas

  

			
	
	 CADMUS COMMUNICATIONS
 CORPORATION

		
	By	 	 /s/ G. Waddy Garrett

	 	 	

	 	 	 G. Waddy Garrett
 Chairman, Human Resources and Compensation
 Committee

  
  

			
		
	By	 	 /s/ Thomas E. Costello

	 	 	

	 	 	 Thomas E. Costello
 Chairman, Human Resources and Compensation
 Committee (effective after November
 2003 Meeting)

  

 11

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