Document:

Exhibit 10.3

RECORDATION
REQUESTED BY:

First American Title

WHEN RECORDED MAIL TO:

MISSION
COMMUNITY BANK

P. O. Box 789

San Luis Obispo CA 93406

ESTOPPEL, 

NON-DISTURBANCE & ATTORNMENT AGREEMENT

THIS AGREEMENT, made and entered into as of the 21st day of September, 2006, by and
between Mission Community Bank, a
California banking corporation, (“Lessee”) whose address is 581 Higuera Street,
San Luis Obispo CA 93401; Walter Bros.
Construction Co., Inc.,, a California corporation (“Borrower”/ “Lessor”),
whose address is 3220 South Higuera Street, San Luis Obispo, California 93401,
and Mid-State Bank & Trust (“Lender”),
whose address is P. O. Box 6002, Arroyo Grande, California, 93421-6002.

A.    Lender has made, or is
making, a loan or loans (the “Loan”) to Borrower secured by one or more deeds
of trust, without limitation, dated October 28, 2003 and August 25, 2005, (the “Deeds
of Trust”) on the real property legally described in Exhibit “A”: attached
hereto and known as 3190, 3196, 3220, 3232, 3238, 3240, 3250 Higuera Street;
Assessor’s Parcel Numbers  053-041-033, -023,
-039 & -038 (the “Real Property”); and

B.     Lessee is the lessee under
a Lease dated September 21, 2006, made by Borrower, as Lessor, demising
approximately 32,500 square feet of the Real Property located at the corner of
South Higuera and Prado Road, in the City of San Luis Obispo, County of San
Luis Obispo, State of California [a portion of Assessor’s Parcel Number 053-041-033],
and it is the intent of Borrower and Lessee that Borrower will obtain a lot line
adjustment from the City of San Luis Obispo, whereby a separate parcel will be created
(the “Lot Line Adjustment”) which new parcel shall be the leased premises (“the
Demised Premises”) (said lease and all amendments thereto being referred to as
the “Lease”); and

C.   The Lessee requires that
Lessee, Borrower and Lender execute this Agreement as a condition of the Lease:
and

D.    In return, Lender is
agreeable to not disturbing Lessee’s possession of the

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Demised Premises covered
by the Lease, so long as Lessee is not in default under the Lease.

NOW, THEREFORE, for valuable consideration, the
receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.   Estoppel.
The Lease has been duly executed and accepted by Lessor and Lessee, constitutes
the entire agreement between Lessor and Lessee as pertains to the Lease of the
Premises and has not been modified either in writing or orally, except as reflected
in the copy of the Lease provided to Lender.

As of
the date of this Agreement, (i) except for the completion of the Lot Line
Adjustment, all conditions and obligations to be performed by either Lessor or
Lessee under the Lease have been satisfied; (ii) there exists no breach,
default or event or condition which would constitute such a breach or default
under the Lease; (iii) there are no existing claims, defenses or offsets
against obligations of either Lessor or Lessee under the Lease, including any
against rents due or to become due under the terms of the Lease; and (iv) no
deposits or prepayments of rent have been made in connection with the Lease
except as may be described in the Lease.

2.   Lessee
Not To Be Disturbed. So long as Lessee is not in default (beyond any period
given Lessee by the terms of the Lease to cure such default) in the payment of
rent or additional rent or of any of the terms, covenants or conditions of the
Lease on Lessee’s part to be performed: 
(a) Lessee’s possession of the Premises, and its rights and privileges
under the Lease, including but not limited to any extension or renewal rights, and
application of insurance proceeds and condemnation awards shall not be
diminished or interfered with by Lender; and, (b) Lender will not join Lessee
as a party defendant in any action or proceeding foreclosing the Deeds of Trust
unless such joinder is necessary to foreclose the Deeds of Trust and then only
for such purpose and not for the purpose of terminating the Lease.

3.   Lessee to
Attorn To Lender. If Lender shall become the owner of the Premises or the
Premises shall be sold by reason of foreclosure, or other proceedings brought
to enforce the Deeds of Trust, or the Premises shall be transferred by Deed in
lieu of foreclosure, the Lease shall continue in full force and effect as a
direct Lease between the then owner of the Premises (hereinafter the “other
owner”), who shall succeed to the rights and duties of the Borrower as the
Lessor, and Lessee. Lessee shall attorn to Lender or any such other owner as
its landlord, said attainment to be effective and self-operative without the
execution of any further instruments; provided, however, that Lessee agrees that
in the event Lender or any such other owner succeeds to the interest of Lessor
under the Lease, Lender or any such other owner:

(a)          shall not be personally
liable for any act or omission of any prior lessor (including Borrower);

(b)         shall not be bound by any
amendment or modification of the Lease (which modification or amendment effects
the amount of rent, due dates of rent, lease

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term, period of
any extension, provisions concerning allocation of insurance and condemnation
proceeds and/or recourse liability of the Lessee for rent and other charges
under the Lease) made without Lender’s consent, which consent shall not be
unreasonably withheld, delayed or conditioned;

(c)          as provided in
California Civil Code § 1950.7, shall not be liable for the return of any
security deposit under the Lease unless such security deposit shall have been
actually held by Lender or such other owner that succeeds to the interest of
Lessor;

(d)         shall not be liable to
Lessee for any monetary defaults of Borrower or any prior lessor to Lessee
which accrue prior to the date of the transfer giving rise to the attornment
hereunder;

(e)          shall not be bound by
any rent or additional rent which Lessee might have prepaid for more than one
(1) month in advance under the Lease and Lessor agrees not to accept any rent
or additional rent more than one (1) month in advance; and

(f)            Lessor shall be
responsible for obtaining the consent of Lender to any amendments or
modifications of the Lease requiring Lender’s consent pursuant to § 4(b)
hereof.

Lessee acknowledges that Borrower will assign the
Lease to Lender pursuant to the terms of an absolute Assignment of Leases and
Rents executed in connection with the Deeds of Trust as security for the
indebtedness secured by the Deeds of Trust. Lessee hereby agrees that upon the
occurrence of any default under the Loan or the documents evidencing or
securing the same, and in the event of written notice to Lessee by Lender, or
its successors and assigns, reciting such default and making demand for the
payment to the Lender or its successors and assigns, of the rent due under the
Lease, Lessee will pay said rent to Lender or its successors and assigns and
Borrower hereby consents to said payment and releases Lessee from any and all
liability, damages, or claims in connection with any such payment or payments.
Borrower agrees that the receipt by Lessee of any such written notice shall be
conclusive evidence of the right of Lender or its successors and assigns to the
receipt of said rental payments. Lessee shall be under no obligation to pay
rent to Lender or any such other owner until Lessee receives written notice
from Lender or any such other owner.

4.   Lender’s
Option To Cure Borrower’s Default. Lessee agrees that Borrower shall not be
in default under the Lease unless written notice specifying such default is
given to Lender. Lessee agrees that Lender shall have the right to cure such
default on behalf of Borrower within sixty (60) days after the receipt of such
notice; provided, however, that said 60-day period shall be further extended so
long as within said 60-day period Lender has commenced to cure and is
proceeding diligently to cure said default or defaults. Lessee further agrees
not to invoke any of its remedies against Lessor under the Lease (except any
emergency repair clause contained therein) until said 60 days have elapsed.
Lender shall not be obligated to cure. Lessee shall not be exonerated from the
Lease by reason of, any default by Lessor of any provisions of the Lease which
have been amended without Lender’s express written approval.

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5.   Notice of
Discharge.   Borrower shall give
notice to Lessee of the reconveyance or other release of the Deeds of Trust
within thirty (30) days of the date the reconveyance or other release is
recorded.

6.   Notices.
Any and all notices required or permitted to be given shall be in writing and
shall be sent, either by registered Untied States mail, or personal delivery,
to the parties at their addresses set forth above; and shall be deemed given
upon the actual receipt thereof by the party to whom sent or delivered. The
addresses to which notices shall be sent may be changed by any party by notice
given pursuant to this paragraph.

7.   Successors
And Assigns. This Agreement and each and every covenant, agreement and
other provision hereof shall be binding upon and shall inure to the benefit of
the parties hereto and their representatives, successors and assigns.

8.   Further
Assurances. Lessee agrees that, upon request of Lender, Borrower or successor
mortgagee, Lessee will execute similar instruments as necessary in connection with
this Loan.

9.   Duplicate
Originals. This Assignment may be executed in any number of duplicate
originals and each such duplicate original shall be deemed to be an original.

IN WITNESS
WHEREOF, the parties hereto have each caused this Agreement to be executed as
of the date first above written.

	
  “Lessee”

  	
   

  	
  “Lender”

  
	
  Mission
  Community Bank

  	
   

  	
  Mid State Bank

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Anita
  Robinson 

  	
   

  	
   

  	
  By:

  	
  /s/ Lori A. Anderson

  	
   

  
	
   

  	
     Anita
  Robinson 

  	
   

  	
   

  	
  LORI A. ANDERSON

  	
   

  
	
   

  	
     Its:
  President

  	
   

  	
   

  	
     Printed Name

  
	
   

  	
   

  	
   

  	
   

  	
     Its:

  	
  Senior Vice President

  	
   

  
								

 

“Lessor” “Borrower”

Walter Bros. Construction Co., Inc.

	
  By:

  	
  /s/ Donald C.
  Walter

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DONALD C. WALTER

  	
   

  	
   

  	
   

  	
   

  
	
  Printed Name

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
  PRESIDENT

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

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NOTARY
ACKNOWLEDGEMENT

	
  STATE OF CALIFORNIA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF SAN
  LUIS OBISPO

  	
  )

  

 

On Sept. 21, 2006 before
me, Aileen C. Cota, Notary Public, personally appeared Anita Robinson
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person whose name is subscribed to the within instrument and
acknowledged to me that, she executed the same in her authorized capacity, and
that by her signature on the instrument the person or the entity upon behalf of
which the person acted, executed the instrument.

	
  Witness my hand and official
  seal    (SEAL)

  this 21st day of September

  	
   

  	
  

  
	
  /s/ Aileen C.
  Cota

  	
   

  	 

	
  Signature of
  Notary

  	
   

  	 

					

 

	
  STATE OF CALIFORNIA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF SAN
  LUIS OBISPO

  	
  )

  

 

On                                                         
before me,                                               
, personally appeared                                                       
personally known to me (or proved to me on the basis of satisfactory evidence)
to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that, he/she/they executed the same in his/her/their
authorized capacity (ies), and that by his/her/their signature(s) on the
instrument the person(s) or the entity upon behalf of which the person(s)
acted, executed the instrument.

Witness my hand and official seal        (SEAL)

this                      day
of              

 

	
  

  	
   

  
	
  Signature of
  Notary

  	
   

  

 

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NOTARY
ACKNOWLEDGEMENT

	
  STATE OF CALIFORNIA

  	
  )

  
	
   

  	
  ) ss.

  
	
  COUNTY OF SAN
  LUIS OBISPO

  	
  )

  

 

On                                                              
before me,
                                                   
, personally appeared
                                              
 personally known to me (or proved to me
on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that, he/she/they
executed the same in his/her/their authorized capacity (ies), and that by
his/her/their signature(s) on the instrument the person(s) or the entity upon
behalf of which the person(s) acted, executed the instrument.

Witness my hand
and official seal        (SEAL)

this                        day
of

 

	
  

  	
   

  
	
  Signature of
  Notary

  	
   

  

 

 6

 

EXHIBIT “A”

LEGAL
DESCRIPTION

Parcel 1: APN 053,041,033

That
portion of Lot 21 of the San Luis Obispo Suburban Tract, in the City of San
Luis Obispo, County of San Luis Obispo, State of California, according to the
map recorded February 7, 1906 in Book 1, Page 92 of Record of Surveys,
described as follows:

Commencing at the most
Southerly corner of Parcel B denoted on Parcel Map No. SL-84-284, recorded in
Parcel Map Book 38, Page 60;

Thence South 3°54’55” West, along (the Westerly
right of way of South Higuera Street (80 feet wide), 120.98 feet to a 1 1/4 inch iron pipe tagged L.S. 3877 and the
point of beginning; 

Thence North 86° 14’05” West, 323 feet to a 1 1/4 inch
iron pipe tagged L.S. 3877;

Thence South 3°45’55”
West, 3 feet to a 1 1/4 inch iron pipe tagged L.S. 3877;

Thence North 86°14’05”
West, 62 feet to a 1 1/4 inch iron pipe tagged L.S. 3877;

Thence
South 3°45’55” West, 22.70 feet to a 1 1/4 inch iron pipe tagged L.S. 3877;

Thence South 74°38’05”
West, 252.44 feet, more or less, to the Easterly line of the land described in
the deed to Adrian R. Manthie, et ux., recorded June 15,1955 in Book 807, Page
360 of Official Records and denoted
on Parcel Map SLO-73-495;

Thence Easterly and Southerly along the Northerly and
Easterly boundary of last said Manthie property to the Northerly line of Prado
Road (40 feet wide);

Thence Easterly along the
Northerly line of said Prado Road and Northerly along the Westerly line of the property
conveyed by Walter Brothers Construction Company, Inc., to the City of San Luis
Obispo, recorded May 6, 1975 in
Book 1831, Page 595 of Official Records, to the point of beginning. 

Said land is shown as Parcel 1 on Map recorded May 10,
1989 in Book 59, Page 89 of Record of Surveys.

EXCEPTING THEREFROM all geothermal resources as
defined in Section 6903 of the California Public Resources Code within or that may be produced from said real
property, provided, however that the surface of said real property shall never
be used for the exploration, development, extraction, removal, or storage of
any thereof, as reserved by Standard Oil Company of California, a Corporation,
in deed recorded October 29,1974 in Book 1803, Page 799 of Official Records.

ALSO EXCEPTING THEREFROM the
sole and exclusive right from time to time to drill and maintain wells or other
works into (except for oil, gas, and other hydrocarbons not herein reserved by
grantor), or through said real property below, a depth of 500 feet and to
produce, inject, store or remove from and through such wells or works, oil gas,
water and other substances of whatever nature, including the right to perform
any and all operations deemed by Grantor necessary or convenient for the
exercise of such rights, as reserved by Standard Oil Company of California, a
Corporation, in deed recorded October 29, 1974 in Book 1803, Page 799 of
Official Records.

 

EXHIBIT “A”

Parcel 2: APN 053,041,023

That portion of Lot 21 of
the San Luis Obispo Suburban Tract, in the City of San Luis Obispo, County of
San Luis Obispo, State of California, according to map recorded February 7,1906
in Book 1, Page 92 of Record of Surveys, described as follows:

Commencing at the most
Southerly corner of Parcel B denoted on Parcel Map No. SL-84-284 recorded in Parcel
Map Book 38, Page 60;

Thence South 3°54’55” West,
along the Westerly right of way of South Higuera Street (80 feet wide), 120.98
feet to a 1 1/4 inch iron pipe tagged L.S. 3877;

Thence North 86°14’05” West,
323 feet to a 1 1/4  inch iron pipe tagged L.S. 3877;

Thence South 3°45’55” West,
3 feet to a 1 1/4 inch iron pipe tagged L.S. 3877;

Thence North 86°14’05” West, 62 feet to a 1 1/4 inch
iron pipe tagged L.S. 3877;

Thence South 3°45’55” West,
22.70 feet to a 1 1/4 inch iron
pipe tagged L.S. 3877;

Thence South 74°38’05” West,
252.44 feet, more or less, to the Easterly line of the land described in the Deed
to Adrian R. Manthie, et ux., recorded June 15,1955 in Book 807, Page 360 of
Official Records and denoted on Parcel Map SLO 73-495;

Thence Northwesterly along
last said line to the Westerly line of said Lot 21;

Thence Northerly and
Easterly along the boundary of said Lot 21 to the point of beginning.

Said land is shown as Parcel
2 on Map recorded May 10,1989 in Book 59, Page 89 of Record of Surveys.

EXCEPTING
THEREFROM all geothermal resources as defined in Section 6903 of the California
Public Resources Code within or that may be produced from said real property,
provided, however, that the surface of said real property shall never be used for the
exploration, development, extraction, removal or storage of any thereof, as
reserved by Standard Oil Company of California, a Corporation, in deed recorded
October 29,1974 in Book 1803, Page 799 of Official Records.

ALSO EXCEPTING THEREFROM the
sole and exclusive right from time to time to drill and maintain wells or other
works into (except for oil, gas and other hydrocarbons not herein reserved by
Grantor), or through said real property below a depth of 500 feet and to
produce, inject, store and remove from and through such wells or works, oil,
gas, water and other substances of whatever nature, including the right to
perform any and all operations deemed by Grantor necessary or convenient for
the exercise of such rights, as reserved by Standard Oil Company of California,
a Corporation, in deed recorded October 29, 1974 in Book 1803, Page 799, of Official
Records.

Parcel 3: APN: 053,041,039

Parcel
B of Parcel Map SL-84-284, in the City of San Luis Obispo, County of San Luis
Obispo, State of California, according to map recorded December 27,1985 in Book
38, Page 60 of Parcel maps.

Parcel 4: APN: 053,041,038

Parcel A of Parcel Map SL-84-284, in the City of San
Luis Obispo, County of San Luis Obispo, State of California, according to map
recorded December 27,1985 in Book 38, Page 60 of Parcel Maps.Exhibit
10.1

EMPLOYMENT AGREEMENT

This
EMPLOYMENT AGREEMENT is entered into as of this 20th day of July, 2006 by and among Graphic
Packaging International, Inc., a Delaware corporation (“Employer”), Graphic
Packaging Corporation, a Delaware corporation (“GPC”) and Michael P. Doss (“Executive”).

W I T N E S S E T H :

WHEREAS,
Employer desires to employ Executive on the terms and conditions set forth
herein;

WHEREAS,
Executive desires to accept such employment on the terms and conditions set
forth herein;

WHEREAS,
each of Employer, GPC and Executive agrees that Executive will have
a prominent role in the management of the business, and the development of
the goodwill, of Employer and its Affiliates (as defined below) and will
establish and develop relations and contacts with the principal customers and
suppliers of Employer and its Affiliates in the United States and the rest of
the world, all of which constitute valuable goodwill of, and could be used by
Executive to compete unfairly with, Employer and its Affiliates;

WHEREAS,
(i) in the course of his/her employment with Employer, Executive
will obtain confidential and proprietary information and trade secrets
concerning the business and operations of Employer and its Affiliates in the
United States and the rest of the world that could be used to compete unfairly
with Employer and its Affiliates; (ii) the covenants and
restrictions contained in Sections 8 through 13, inclusive, are
intended to protect the legitimate interests of Employer and its Affiliates in
their respective goodwill, trade secrets and other confidential and proprietary
information; and (iii) Executive desires to be bound by such
covenants and restrictions;

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
promises contained herein and for other good and valuable consideration,
Employer, GPC and Executive hereby agree as follows:

1.  Agreement to Employ.  Upon the terms and subject to the conditions
of this Agreement, Employer hereby employs Executive, and Executive hereby
accepts employment by Employer.

2.  Term;
Position and Responsibilities.

(a)  Term
of Employment.  Unless Executive’s
employment shall sooner terminate pursuant to Section 7, Employer shall
employ Executive for a one year term commencing on the date hereof (the “Initial
Term”). Effective upon the expiration of the Initial Term and of each
Additional Term (as defined below), Executive’s employment hereunder shall be
deemed to be automatically extended, upon the same terms and conditions, for an
additional period of one year (each, an “Additional Term”), in each such
case, commencing upon the expiration of the Initial Term or the then current
Additional Term, as the case may be. The period during which

 

Executive
is employed pursuant to this Agreement, including any extension thereof in
accordance with the preceding sentence, shall be referred to as the “Employment
Period”.

(b)  Position and Responsibilities.  During the Employment Period, Executive shall
serve as Vice President, Operations of Employer and have such duties and
responsibilities as are customarily assigned to individuals serving in such
position and such other duties consistent with Executive’s title and position
as the Board of Directors of Employer (“Employer’s Board”) specifies from time
to time. Executive shall devote all of his/her skill, knowledge and working
time to the conscientious performance of the duties and responsibilities of
such position, except for (i) vacation time as set forth in
Section 6(c) and absence for sickness or similar disability and (ii) to
the extent that it does not interfere with the performance of Executive’s
duties hereunder, (A) such reasonable time as may be devoted to
service on boards of directors of other corporations and entities, subject to
the provisions of Section 9, and the fulfillment of civic responsibilities
and (B) such reasonable time as may be necessary from time to time
for personal matters.  If so elected or
designated by the respective shareholders thereof, Executive shall serve as
a member of the Boards of Directors of GPC, Employer and their respective
Affiliates during the Employment Period without additional compensation.

(c)
Promotion.  Not later than
November 1, 2006, Executive’s position and responsibilities set forth in
Section 2(b) will change to Senior Vice President, Consumer Products.  On the day Executive’s position changes,
Executive’s base salary set forth in Section 3 will change to $300,000.00
and Executive’s annual target bonus opportunity for 2007 set forth in Section 4
will change to 70%.  Executive agrees
that this change in position will constitute a promotion for purposes of
Section 7(d)(v).

3.  Base Salary.  As compensation for the services to be
performed by Executive during the Employment Period, Employer shall pay Executive
a base salary at an annualized rate of $240,000.00, payable in
installments on Employer’s regular payroll dates. Employer’s Board shall review
Executive’s base salary annually during the Employment Period and, in its sole
discretion, Employer’s Board may increase (but may not decrease) such base
salary from time to time based upon the performance of Executive, the financial
condition of Employer, prevailing industry salary levels and such other factors
as Employer’s Board shall consider relevant. 
(The annual base salary payable to Executive under this
Section 3, as the same may be increased from time to time and without
regard to any reduction therefrom in accordance with the next sentence, shall
hereinafter be referred to as the “Base Salary”.)  The Base Salary payable under this
Section 3 shall be reduced to the extent that Executive elects to defer
such Base Salary under the terms of any deferred compensation, savings plan or
other voluntary deferral arrangement that may be maintained or established by
Employer.

4.  Incentive
Compensation Arrangements.  During
the Employment Period, Executive shall participate in Employer’s incentive
compensation programs for its senior executives existing from time to time, at
a level commensurate with his/her position and duties with Employer and
based on such performance targets as may be established from time to time by
Employer’s Board or a committee thereof. 
For calendar year 2006, Executive’s aggregate annual target bonus
opportunity shall be 50% of Base Salary.

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5.  Employee Benefits.  During the Employment Period, employee
benefits, including life, medical, dental, accidental death and dismemberment,
business travel accident, prescription drug and disability insurance, shall be
provided to Executive in accordance with the programs of Employer then
available to its senior executives, as the same may be amended and in effect
from time to time.  Executive shall also
be entitled to participate in all of Employer’s profit sharing, pension,
retirement, deferred compensation and savings plans, as the same may be amended
and in effect from time to time, applicable to senior executives of
Employer.  The benefits referred to in
this Section 5 shall be provided to Executive on a basis that is
commensurate with Executive’s position and duties with Employer hereunder and
that is no less favorable than that of similarly situated employees of
Employer.

6.  Perquisites
and Expenses.

(a)  General. During the Employment Period,
Executive shall be entitled to a perquisites allowance in the amount of $20,000
on an annualized basis, to be paid as soon as administratively practical after
January 1 of each year. This special bonus can be used by Executive for such
matters to include, without limitation, tax preparation services, financial
planning services, home security services, executive physical examination, dues
of airline, luncheon, country or athletic clubs, or automobile expenses.

(b)  Business Travel, Lodging, etc.  Employer shall reimburse Executive for
reasonable travel, lodging, meal and other reasonable expenses incurred by him/her
in connection with his/her performance of services hereunder upon submission of
evidence, satisfactory to Employer, of the incurrence and purpose of each such
expense and otherwise in accordance with Employer’s business travel
reimbursement policy applicable to its senior executives as in effect from time
to time.

(c)  Vacation.  During the Employment Period, Executive shall
be entitled to five weeks of paid vacation on an annualized basis, without carryover
accumulation.

7.  Termination
of Employment.

(a)  Termination Due to Death or Disability.  In the event that Executive’s employment
hereunder terminates due to death or is terminated by Employer due to Executive’s
Disability (as defined below), no termination benefits shall be payable to or
in respect of Executive except as provided in Section 7(g).  For purposes of this Agreement, “Disability”
shall mean a physical or mental disability that prevents or would prevent
the performance by Executive of his/her duties hereunder for a continuous
period of six months or longer.  The
determination of Executive’s Disability shall (i) be made by an
independent physician who is reasonably acceptable to Employer and Executive
(or his/her representative), (ii) be final and binding on the
parties hereto and (iii) be based on such competent medical
evidence as shall be presented to such independent physician by Executive
and/or Employer or by any physician or group of physicians or other competent
medical experts employed by Executive and/or Employer to advise such
independent physician.

(b)  Termination by Employer for Cause.  Executive may be terminated for cause by
Employer for (i) the willful failure of Executive substantially to
perform his/her duties hereunder

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(other
than any such failure due to Executive’s physical or mental illness) or other
willful and material breach by Executive of any of his/her obligations
hereunder, after a written demand for substantial performance has been
delivered, and a reasonable opportunity to cure has been given, to
Executive by Employer’s Board, which demand identifies in reasonable detail the
manner in which Employer’s Board believes that Executive has not substantially
performed his/her duties or has breached his/her obligations, (ii) Executive’s
engaging in willful and serious misconduct that has caused or is reasonably
expected to result in material injury to Employer or any of its Affiliates, (iii) Executive’s
conviction of, or entering a plea of guilty or nolo  contendere
to, a crime that constitutes a felony, or (iv) Executive’s
material violation of the requirements of federal or state securities law,
rule or regulation, in cases involving fraud or deceit, or violation of Employer’s
insider trading policy. Any item of conduct in the previous sentence shall constitute
“Cause.” Executive’s conduct need not result in monetary or financial loss to
constitute Cause. Executive shall be permitted to attend a meeting of
Employer’s Board within 30 days after delivery to him/her of a Notice of
Termination (as defined below) pursuant to this Section 7(b) to explain
why he/she should not be terminated for Cause and, if following any such
explanation by Executive, Employer’s Board determines that Employer does not
have Cause to terminate Executive’s employment, any such prior Notice of
Termination delivered to Executive shall thereupon be withdrawn and of no
further force or effect.

(c) Termination
Without Cause. A termination “Without Cause” shall mean
a termination of employment by Employer other than pursuant to Section 7(a)
or Section 7(b).

(d) Termination
by Executive.  Executive may
terminate his/her employment for any reason. 
A termination of employment by Executive for “Good Reason” shall
mean a termination by Executive of his/her employment with Employer within
30 days following the occurrence, without Executive’s consent, of any of
the following events: (i) the assignment to Executive of duties
that represent a substantial diminution of the duties that he/she is to
assume on the date hereof, (ii) the failure of Employer to obtain
the assumption of this Agreement by any Successor (as defined below) to
Employer as contemplated by Section 14, (iii) a reduction in
the rate of Executive’s Base Salary, (iv) a material breach by
Employer of any of its obligations hereunder or (v) except in cases
where Employer is promoting Executive, the relocation of Executive’s primary
office to a location more than 50 miles from the location of Executive’s
primary office on the date hereof. Executive shall not be entitled to terminate
employment for Good Reason, in the case of any of clauses (i), (iii), (iv)
or (v), should Executive fail within 30 days following the occurrence of
any of the events set forth therein to deliver written notice to Employer of
his/her intention to terminate his/her employment for Good Reason, which notice
specifies in reasonable detail the circumstances claimed to give rise to
Executive’s right to terminate his/her employment for Good Reason, and Employer
or GPC, as the case may be, shall not have cured such circumstances within a
reasonable time to the reasonable satisfaction of Executive.

(e)  Notice of Termination.  Any termination by Employer pursuant to
Section 7(a), 7(b) or 7(c), or by Executive pursuant to
Section 7(d), shall be communicated by a written Notice of
Termination addressed to the other parties to this Agreement.  A ”Notice of Termination” shall mean
a notice stating that Executive’s employment with Employer has been or
will be terminated.

 4
 

 

(f) Payments
and Benefits Upon Termination by Employer Without Cause or by Executive for
Good Reason.

(i)  In the event of
a termination of Executive’s employment by Employer Without Cause or
a termination by Executive of his/her employment for Good Reason during
the Employment Period, Employer shall pay to Executive:

       (A)                 one
year’s Base Salary, and

       (B)                   the product of (1) the amount of
incentive compensation that would have been payable to Executive for the
calendar year in which the Date of Termination (as defined below) occurs if
Executive had remained employed for the entire calendar year and assuming that
all applicable performance targets had been achieved, multiplied by (2) a fraction,
the numerator of which is equal to the number of days in such calendar year
that precede the Date of Termination and the denominator of which is equal
to 365 (such product, the “Pro Rata Bonus”).

(ii) Payments
pursuant to this Section 7(f) shall be made as follows: six months following
the Date of Termination, one-half of the amounts due under Section 7(f)(i)(A)
and all of the amounts due under Section 7(f)(i)(B), above, shall be paid to
Executive. The remainder of the amounts due Executive under Section 7(f)(i)(A)
shall be payable in installments on Employer’s regular payroll dates, until the
amounts due are paid in full. No payments shall be due and payable to Executive
pursuant to this Section 7(f) until after (x) Executive has executed a general release in a
form reasonably satisfactory to Employer and (y) the expiration of the
period during which Executive can revoke his/her execution of said release.

 (iii) If Executive is entitled
to payments pursuant to Section 7(f)(i), then for the period beginning on the
Date of Termination and ending on the first anniversary of the Date of
Termination (the “Severance Period”), Employer shall (x) continue
to provide to Executive the life, medical, dental, and prescription drug
benefits referred to in Section 5 (the “Continued Benefits”) and (y) reimburse
Executive for expenses incurred by him/her for outplacement and career
counseling services provided to Executive for an aggregate amount not in excess
of $25,000.

(iv) Executive shall not have a duty to mitigate the costs to
Employer under this Section 7(f)(i), except that Continued Benefits shall
be reduced or canceled to the extent of any comparable benefit coverage earned
by (whether or not paid currently) or offered to Executive during the Severance
Period by a subsequent employer or other Person (as defined below) for
which Executive performs services, including but not limited to consulting
services.

(v) The benefits provided Executive pursuant to this Section 7(f) are
made in lieu of any payments or benefits, and Executive shall not be entitled
to receive any payments or benefits, pursuant to any plan, policy, program or
practice providing any bonus, annual incentive or severance compensation.

(g) Payments
and Benefits Upon Executive’s Death or Disability, Termination by Employer With
Cause, or Termination by Executive Without Good Reason. If Executive’s

 5
 

 

employment
shall terminate upon his/her death or Disability or if Employer shall terminate
Executive’s employment for Cause or Executive shall terminate his/her employment
without Good Reason during the Employment Period, Employer shall pay Executive
his/her full Base Salary through the Date of Termination; plus, in the case of
termination upon Executive’s death or Disability, if, as of the Date of
Termination, Employer has achieved the pro rated performance objectives for
such calendar year (determined as provided in Section 7(f)(i)), the Pro
Rata Bonus for the portion of the calendar year preceding Executive’s Date of
Termination; plus, in the case of termination upon Executive’s death, his/her full
Base Salary for the remainder of the pay period in which death occurs and for
one month thereafter, as provided in Section 3. The benefits provided
Executive pursuant to this Section 7(g) are made in lieu of any payments or
benefits, and Executive shall not be entitled to receive any payments or
benefits, pursuant to any plan, policy, program or practice providing any bonus
or annual incentive compensation.

(h)  Date of Termination.  As used in this Agreement, the term “Date of
Termination” shall mean (x) if Executive’s employment is terminated
by his/her death, the date of his/her death, (y) if Executive’s
employment is terminated by Employer for Cause, the date on which Notice of
Termination is given as contemplated by Section 7(e) or, if later, the
date of termination specified in such Notice, or (z) if Executive’s
employment is terminated by Employer Without Cause, due to Executive’s
Disability or by Executive for any reason, the date that is 30 days after
the date on which Notice of Termination is given as contemplated by
Section 7(e) or, if no such Notice is given, 30 days after the date
of termination of employment.

(i)  Resignation upon Termination.  Effective as of any Date of Termination under
this Section 7 or otherwise as of the date of Executive’s termination of
employment with Employer, Executive shall resign, in writing, from all Board
memberships and other positions then held by him/her with GPC, Employer and
their respective Affiliates.

(j)  Nondisparagement. Executive agrees not
to disparage Employer, GPC, or the subsidiaries thereof, or the officers,
directors or employees of any of them, during the Employment Period or
thereafter.

8. Unauthorized
Disclosure. During the period of Executive’s employment with Employer and
the three-year period following any termination of such employment, without Employer’s
prior written consent, except to the extent required by an order of
a court having jurisdiction or under subpoena from an appropriate
government agency, in which event, Executive shall use his/her best efforts to
consult with Employer prior to responding to any such order or subpoena, and
except as required in the performance of his/her duties hereunder, Executive
shall not disclose any confidential or proprietary trade secrets, customer
lists, drawings, designs, information regarding product development, marketing
plans, sales plans, manufacturing plans, management organization information
(including but not limited to data and other information relating to members of
the Board of Directors of GPC, Employer or any of their respective Affiliates
or to management of GPC, Employer or any of their respective Affiliates),
operating policies or manuals, business plans, financial records, packaging
design or other financial, commercial, business or technical information (a) relating
to GPC, Employer or any of their respective Affiliates or (b) that GPC,
Employer or any of their respective Affiliates may receive belonging to
suppliers, customers or others who do business with GPC, Employer or any of
their respective Affiliates (collectively, “Confidential Information”) to any
third person

 6
 

 

unless
such Confidential Information has been previously disclosed to the public or is
in the public domain (other than by reason of Executive’s breach of this
Section 8).

9.  Non-Competition.  During the period of Executive’s employment
with Employer and for one year following the Date of Termination, Executive
shall not, directly or indirectly, become employed in a management capacity,
including as a consultant serving in a management capacity, of Caraustar
Industries, Inc., Field Container Company, L.P., MeadWestvaco Corporation,
Rock-Tenn Company, the former consumer packaging division of Smurfit-Stone
Container Corporation that was acquired by an affiliate of Texas Pacific Group,
or any of their current subsidiaries or successors.

10.  Non-Solicitation of Employees. For
one year following the Date of Termination, Executive shall not, directly or
indirectly, for his/her own account or for the account of any other Person
anywhere in the United States or Europe, solicit for employment, employ or
otherwise interfere with the relationship of GPC, Employer or any of their
respective subsidiaries with, any person who at any time during the six months
preceding such solicitation, employment or interference is or was employed by
or otherwise engaged to perform services for GPC, Employer or any of their current
subsidiaries, other than any such solicitation or employment during Executive’s
employment with GPC and Employer on behalf of GPC, and Employer.

11.  Non-Solicitation of
Customers.  For one year following
the Date of Termination, Executive shall not, directly or indirectly, for
his/her own account or for the account of any other Person anywhere in the
United States or Europe, solicit or otherwise attempt to establish any business
relationship for purposes of engaging in the manufacture, sales or converting
of paperboard and paperboard packaging with any Person who is or was
a customer, client or distributor of GPC or Employer or any of their
Affiliates at any time during which Executive was employed by Employer .

12.  Return of Documents.  In the event of the termination of Executive’s
employment for any reason, Executive shall deliver to Employer all of (a) the
property of each of GPC, Employer and their respective Affiliates and (b) the
non-personal documents and data of any nature and in whatever medium of each of
GPC, Employer and their respective Affiliates, and he/she shall not take with him/her
any such property, documents or data or any reproduction thereof, or any
documents containing or pertaining to any Confidential Information.  Whether documents or data are “personal” or “non-personal”
shall be determined as follows: 
Executive shall present any documents or data that he/she wishes to take
with him/her to the chief legal officer of Employer for his/her review.  The chief legal officer shall make an initial
determination whether any such documents or data are personal or non-personal,
and with respect to such documents or data that he/she determines to be
non-personal, shall notify Executive either that such documents or data must be
retained by Employer or that Employer must make and retain a copy thereof
before Executive may take such documents or data with him/her.

13.      Injunctive Relief with
Respect to Covenants; Forum, Venue and Jurisdiction.  Executive acknowledges and agrees that the
covenants, obligations and agreements of Executive contained in
Sections 8, 9, 10, 11, 12 and 13 relate to special, unique and
extraordinary matters and that a violation of any of the terms of such
covenants, obligations or agreements will cause Employer irreparable injury for
which adequate remedies are not available at law.  Therefore,

 7
 

 

Executive agrees that Employer shall be entitled to an injunction,
restraining order or such other equitable relief (without the requirement to
post bond) as a court of competent jurisdiction may deem necessary or
appropriate to restrain Executive from committing any violation of such
covenants, obligations or agreements. 
These injunctive remedies are cumulative and in addition to any other
rights and remedies Employer may have. 
Employer, GPC and Executive hereby irrevocably submit to the
jurisdiction of the superior courts of Cobb County, Georgia and the federal
courts of the Northern District of Georgia, in respect of the injunctive
remedies set forth in this Section 13 and the interpretation and
enforcement of Sections 8, 9, 10, 11, 12 and 13 insofar as such
interpretation and enforcement relate to any request or application for injunctive
relief in accordance with the provisions of this Section 13, and the
parties hereto hereby irrevocably waive any and all objections and defenses
based on forum, venue or personal or subject matter jurisdiction as they may
relate to an application for such injunctive relief in a suit or
proceeding brought before such a court in accordance with the provisions
of this Section 13.  All disputes
not relating to any request or application for injunctive relief in accordance
with this Section 13 shall be resolved by arbitration in accordance with
Section 17(b).

14.  Assumption of Agreement.  Employer shall require any Successor thereto,
by agreement in form and substance reasonably satisfactory to Executive, to
expressly assume and agree to perform this Agreement in the same manner and to
the same extent that Employer would be required to perform it if no such
succession had taken place.  Failure of
Employer to obtain such agreement prior to the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle Executive
to compensation from Employer in the same amount and on the same terms as
Executive would be entitled hereunder if Employer had terminated Executive’s
employment Without Cause as described in Section 7, except that for
purposes of implementing the foregoing, the date on which any such succession
becomes effective shall be deemed the Date of Termination.

15.      Entire Agreement.  This Agreement constitutes the entire
agreement among the parties hereto with respect to the subject matter
hereof.  All prior correspondence and
proposals (including but not limited to summaries of proposed terms) and all
prior promises, representations, understandings, arrangements and agreements
relating to such subject matter (including but not limited to those made to or
with Executive by any other Person and those contained in any prior employment,
consulting or similar agreement entered into by Executive and Employer or any
predecessor thereto or Affiliate thereof) are merged herein and superseded
hereby. This Agreement explicitly supersedes and replaces that certain
employment agreement between Executive and Graphic Packaging International
Corporation, dated March 22, 2002, as amended.

16.      Indemnification.  Employer hereby agrees that it shall
indemnify and hold harmless Executive to the fullest extent permitted by
Delaware law from and against any and all liabilities, costs, claims and
expenses, including all costs and expenses incurred in defense of litigation
(including attorneys’ fees), arising out of the employment of Executive
hereunder, except to the extent arising out of or based upon the gross
negligence or willful misconduct of Executive. 
Costs and expenses incurred by Executive in defense of such litigation
(including attorneys’ fees) shall be paid by Employer in advance of the final
disposition of such litigation upon receipt by Employer of (a) a
written request for payment, (b) appropriate documentation
evidencing the incurrence, amount and nature of the costs and expenses for which
payment is being sought, and

 8
 

 

(c) an undertaking adequate under Delaware law made by or
on behalf of Executive to repay the amounts so paid if it shall ultimately be
determined that Executive is not entitled to be indemnified by Employer under
this Agreement, including but not limited to as a result of such
exception.

17.      Miscellaneous.

(a)      Binding Effect;
Assignment.  This Agreement shall be
binding on and inure to the benefit of Employer, GPC and their respective
successors and permitted assigns.  This
Agreement shall also be binding on and inure to the benefit of Executive and
his/her heirs, executors, administrators and legal representatives.  This Agreement shall not be assignable by any
party hereto without the prior written consent of the other parties hereto,
except as provided pursuant to this Section 17(a).  Each of GPC and Employer may effect such an
assignment without prior written approval of Executive upon the transfer of all
or substantially all of its business and/or assets (by whatever means), provided
that the Successor to Employer shall expressly assume and agree to perform this
Agreement in accordance with the provisions of Section 14.

(b)  Arbitration.  Any dispute or controversy arising under or
in connection with this Agreement (except in connection with any request or
application for injunctive relief in accordance with Section 13) shall be
resolved by binding arbitration.  The
arbitration shall be held in the city of Atlanta, Georgia and except to the
extent inconsistent with this Agreement, shall be conducted in accordance with
the Commercial Arbitration Rules of the American Arbitration Association then
in effect at the time of the arbitration, and otherwise in accordance with
principles which would be applied by a court of law or equity.  The arbitrator shall be acceptable to both
Employer and Executive.  If the parties
cannot agree on an acceptable arbitrator, the dispute shall be heard by
a panel of three arbitrators, one appointed by Employer, one appointed by
Executive, and the third appointed by the other two arbitrators.  All expenses of arbitration shall be borne by
the party who incurs the expense, or, in the case of joint expenses, by both
parties in equal portions, except that, in the event Executive prevails on the
principal issues of such dispute or controversy, all such expenses shall be
borne by Employer.

(c)      Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware without
reference to principles of conflicts of laws.

(d)      Taxes.  Employer may withhold from any payments made
under this Agreement all applicable taxes, including but not limited to income,
employment and social insurance taxes, as shall be required by law.

(e)      Amendments.  No provision of this Agreement may be
modified, waived or discharged unless such modification, waiver or discharge is
approved by Employer’s Board or a Person authorized thereby and is agreed
to in writing by Executive and, in the case of any such modification, waiver or
discharge affecting the rights or obligations of GPC, is approved by the Board
of Directors of GPC or a Person authorized thereby.  No waiver by any party hereto at any time of
any breach by any other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be deemed
a waiver of similar or dissimilar provisions or conditions at the same or
at any prior or subsequent time.  No
waiver of

 9
 

 

any provision of this Agreement shall be implied from any course of
dealing between or among the parties hereto or from any failure by any party
hereto to assert its rights hereunder on any occasion or series of occasions.

(f)       Severability.  In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not be affected thereby.

(g)      Notices.  Any notice or other communication required or
permitted to be delivered under this Agreement shall be (i) in
writing, (ii) delivered personally, by courier service or by
certified or registered mail, first-class postage prepaid and return
receipt requested, (iii) deemed to have been received on the date
of delivery or, if so mailed, on the third business day after the mailing
thereof, and (iv) addressed as follows (or to such other address as
the party entitled to notice shall hereafter designate in accordance with the
terms hereof):

(A)                If
to Employer or GPC, to it at:

814 Livingston Court, S.E.

Marietta, GA 30067

Attention: 
General Counsel

(B)                  
if to Executive, to him/her at his/her residential address as currently on file
with Employer.

(h)      Voluntary Agreement; No
Conflicts.  Executive, Employer and GPC
each represent that they are entering into this Agreement voluntarily and that
Executive’s employment hereunder and each party’s compliance with the terms and
conditions of this Agreement will not conflict with or result in the breach by
such party of any agreement to which he/she or it is a party or by which
he/she or it or his/her or its properties or assets may be bound.

(i)       Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.

(j)       Headings.  The
section and other headings contained in this Agreement are for the convenience
of the parties only and are not intended to be a part hereof or to affect
the meaning or interpretation hereof.

(k)      Certain
Definitions.

“Affiliate”:  with respect to any Person, means
any other Person that, directly or indirectly through one or more
intermediaries, Controls, is Controlled by, or is under common Control with the
first Person, including but not limited to a Subsidiary of the first
Person, a Person of which the first Person is a Subsidiary, or
another Subsidiary of a Person of which the first Person is also
a Subsidiary.

“Control”:  with respect to any Person, means the
possession, directly or indirectly, severally or jointly, of the power to
direct or cause the direction of the management policies of

 10
 

 

such
Person, whether through the ownership of voting securities, by contract or
credit arrangement, as trustee or executor, or otherwise.

“Person”:  any natural person, firm, partnership,
limited liability company, association, corporation, company, trust, business
trust, governmental authority or other entity.

“Subsidiary”:  with respect to any Person, each corporation
or other Person in which the first Person owns or Controls, directly or
indirectly, capital stock or other ownership interests representing 50% or
more of the combined voting power of the outstanding voting stock or other
ownership interests of such corporation or other Person.

“Successor”:  of a Person means a Person that
succeeds to the first Person’s assets and liabilities by merger, liquidation,
dissolution or otherwise by operation of law, or a Person to which all or
substantially all the assets and/or business of the first Person are transferred.

IN WITNESS WHEREOF, Employer
and GPC have duly executed this Agreement by their authorized representatives,
and Executive has hereunto set his/her hand, in each case effective as of the
date first above written.

 

	
   

  	
  GRAPHIC PACKAGING
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WAYNE E.
  JUBY

  	
   

  
	
   

  	
   

  	
  Wayne E. Juby

  
	
   

  	
   

  	
  Senior Vice
  President, Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GRAPHIC
  PACKAGING INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ WAYNE E.
  JUBY

  	
   

  
	
   

  	
   

  	
  Wayne E. Juby

  
	
   

  	
   

  	
  Senior Vice
  President, Human Resources

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Executive:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Michael P. Doss

  	
   

  
	
   

  	
  Michael P. Doss

  
						

 

 11

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