Document:

Employment Agreement J. Cook

    Exhibit
      10.1

    
 

    EMPLOYMENT
      AGREEMENT

    

      AGREEMENT
        (the “Agreement”) dated this February 27, 2007 (the “Effective Date”) made
        by and between Presstek, Inc., a Delaware corporation, its parents,
        subsidiaries, divisions, or affiliated entities, successors and assigns (the
        “Employer”), and Jeffrey Cook, (the “Employee”).

    

    WHEREAS,
      both the Employer and the Employee wish for the Employee to
      be
      employed as Senior
      Vice President and Chief
      Financial Officer
      of the
      Employer; and

    

    NOW,
      THEREFORE, in consideration of the promises hereafter contained, and for other
      good and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto AGREE as follows:

     

    1. Consideration.
      In
      consideration for the Employee’s execution of this Agreement, the Employer
      agrees that the Employee’s employment shall continue as set forth in this
      Agreement, the Employee shall be permitted access to the Employer’s confidential
      information and trade secrets and the Employee shall be eligible to receive
      post-Term Severance Payments (Section 9) or the Change in Control payment
      (Section 12) as set forth in this Agreement (subject to his compliance with
      Sections 10 and 11 of this Agreement). The Employee understands, acknowledges
      and agrees that the Employee would not receive the consideration specified
      in
      this Section 1, except for the Employee’s execution of this Agreement and the
      fulfillment of the promises contained herein. 

     

    2. Employment.
      During
      the term of this Agreement, the Employee agrees to serve as Senior Vice
      President, Chief Financial Officer, and as a Corporate Officer, or in such
      other
      positions as may be assigned. The Employee agrees to devote all of his business
      time and efforts to the performance of his duties hereunder. The Employee shall
      at all times report to, and his activities shall at all times be subject to,
      the
      direction and control of the Chief Executive Officer, the Board of Directors,
      and such other person appointed by the Company. The Employee shall exercise
      such
      powers and comply with and perform, faithfully and to the best of his ability,
      such directions and duties in relation to the business and affairs of the
      Company as may from time to time be vested in or requested of him, and shall
      not
      engage in any other business activity, whether or not for profit, that may
      conflict with the Employee’s duties under this Agreement and the Nondisclosure
      Agreement. If Employee shall be elected to other offices of the Company or
      any
      of its affiliates, he shall serve in such positions without further compensation
      than provided for in this Agreement. The Employee shall perform his services
      under this Agreement at such locations as may be required by the
      Company.

    

     

      3. Employment
        Term.“Term,” as used in this Agreement, shall refer to the Term of
        this Agreement as defined in this Section. The Term of the employment under
        this
        Agreement shall commence on February 28, 2007, (the “Start Date”) and shall
        initially end three years thereafter, on the day preceding the third anniversary
        of the Start Date, unless terminated sooner in accordance with the provisions
        hereof. The Term of employment under this Agreement shall, on each anniversary
        of the Start Date thereafter (commencing with the third anniversary of the
        Start
        Date), be automatically extended for an additional year unless the Employer
        or
        the Employee gives written notice to the other, at least 180 days prior to
        such
        anniversary date, that he or it does not concur in such extension. If neither
        party gives notice of non-concurrence in such extension, the Term will be
        automatically extended for an additional year, unless terminated sooner in
        accordance with the provisions hereof.

     

      4. Compensation.The
        Employer agrees to pay the Employee during the Term of this Agreement an
        annual
        base salary equal to TWO HUNDRED AND SEVENTY FIVE THOUSAND U.S. DOLLARS And
        ZERO
        CENTS ($275,000) with the salary to be reviewed no less than annually during
        the
        Term of this Agreement by the Board of Directors or Compensation Committee
        of
        the Employer. In the annual salary review, the Board of Directors may compensate
        the Employee for increases in the market value of the Employee's duties and
        responsibilities hereunder and may provide for performance or merit increases.
        The base salary of the Employee shall not be decreased at any time during
        the
        Term of this Agreement from the amount then in effect, unless the Employee
        otherwise agrees in writing. The salary shall be payable to the Employee
        in
        accordance with the Employer’s payroll system, as determined by the Employer,
        but not less frequently than monthly. All payments and benefits in this
        Agreement shall be subject to all applicable federal, state and local
        withholding, payroll and other taxes.

     

      Participation
        in discretionary bonuses, retirement and other employee benefit plans and
        fringe
        benefits shall not reduce the salary payable to the Employee under this Section
        4, except as set out herein.

     

    5. Discretionary
      Bonuses. 
      Employee
      will be entitled to a guaranteed cash bonus for 2007 of $165,000, pro-rated
      so
      that Employee is paid one-twelfth (1/12) of said amount for each full month
      of
      service completed during calendar year 2007, said bonus to be paid by March
      1,
      2008. During the subsequent term hereof, the Employee also may be eligible
      to
      receive a bonus of up to percent (60%) of the Base Salary for each calendar
      year
      of full-time employment. Such bonus, if any, shall be based on the Company’s and
      the Employee’s achievement (as determined by the Company) of certain goals and
      objectives. Such achievement is to be determined by the Company’s Board of
      Directors (the “Board”)
      in its
      sole discretion. If the Board determines the Employee is eligible to receive
      a
      bonus under this Section, said bonus shall be paid no later than March 1 of
      the following calendar year. No bonus under this paragraph shall be payable
      to
      the Employee with respect to any calendar year during which his employment
      is
      terminated, regardless of the manner of such termination.  

     

      6. Stock
        Option Grant; Participation in Stock Option, Retirement and Employee Benefit
        Plans; Fringe Benefits.Subject
        to the terms and conditions of the option agreement annexed hereto as Exhibit
        A
        and the Employer’s 2003 Stock Incentive Plan, the Employee shall be granted the
        right to purchase 250,000 shares of the Company's common stock, of which,
        the
        right to purchase 41,666 shares shall vest upon signing of this agreement.
        The
        remaining 208,334 shares shall vest equally over a period of five (5) years
        at
        the rate of 20% per year on each anniversary date of the commencement of
        employment. The per share exercise price for your options grant will be
        determined by the closing price on the date of grant. 

    These
      options are subject to the terms and conditions of the Company’s Stock Option
      Plan and a Stock Option Agreement between the Company and the
      Employee.

       

      Said
        options are subject to the earlier vesting, in their entirety, upon a Change
        in
        Control, as that term is defined herein, or, should Employer elect not to
        renew
        this agreement upon expiration of the initial term.. 

     

    In
      addition to the foregoing stock options, are subject to the eligibility
      requirements that may be applicable, the Employee may be entitled to participate
      during the Term in any plan or arrangement of the Employer relating to stock
      options, stock purchases, pension, thrift, or profit sharing benefits, or other
      benefits under qualified or non-qualified deferred compensation plans, group
      life insurance, medical coverage, education or any other employee benefits
      that
      the Employer may adopt or make available for the benefit of the
      Employee.

     

    The
      Employer fully reserves its rights to change, modify or discontinue any of
      its
      stock purchase, retirement, employee benefit or other fringe benefit plans
      at
      any time during the Term of this Agreement in its sole and absolute discretion,
      and in accordance with applicable law. 

     

    7. Standards.
      The
      Employee shall perform his duties and responsibilities under this Agreement
      in
      accordance with such reasonable standards as are established from time to time
      by the Chief Executive Officer and President and/or Board of Directors of the
      Employer, in its sole and absolute discretion.

     

    8. Voluntary
      Absences; Vacations.
      The
      Employee shall be entitled to an annual paid vacation during the Term of this
      Agreement in accordance with the Employer’s policy of executives of four (4)
      weeks per year or such longer period as the Board of Directors may approve
      or
      such longer periods to which the Employee may be entitled as an employee of
      the
      Employer. The timing of paid vacations shall be scheduled in a reasonable manner
      by the Employee. 

     

    9. Termination
      of Employment.

     

    The
      Employee’s employment with the Employer may terminate either by either:

     

    
      	(a)  	
              termination
                by the Board of Directors of the Employer either (i) for Cause (as
                defined
                in Section 9(a)(iii) below) or (ii) without Cause;
                

            

    

     

    
      	(b)  	
              termination
                by the Employee either for (i) Good Reason (as defined in Section
                9(b)
                below or (ii) Not Good Reason (as defined in Section 9(b); or
                

            

    

     

    
      	(c)  	
              death
                or disability of the Employee. 

            

    

     

    

     

    (a)
      Termination
      by the Board.

     

      (i) The
        Board of Directors may terminate the Employee’s employment at any time, but any
        termination by the Employer other than termination for Cause (as defined
        in
        Section 9(a)(iii) below) shall not prejudice the Employee’s right to receive
        compensation and other benefits under this Agreement, except as otherwise
        stated
        in this Agreement. In the event of a termination for Cause, the Employee
        shall
        have no right to receive payment, compensation or other benefits, including
        payment of legal fees and expenses incurred, for any period after termination
        for Cause except as otherwise required by law. Where the Employer terminates
        the
        employment of the Employee other than termination for Cause, the Employer
        shall
        continue to be subject to any independent obligation to the Employee under
        any
        employee benefit plan in which the Employee is then a participant. Where
        the
        Employee’s employment is terminated for Cause, the Employer shall have no
        obligation to continue to be subject to any independent obligations to the
        Employee under any employee benefit plan for which the Employee is then a
        participant, except as otherwise required by law.

     

    (ii) In
      the
      event that the Employee’s employment ceases by reason of the Employer’s
      termination of the Employee’s employment during the Term other than for Cause,
      or if either
      party provides the other party with written notice of the party’s
      non-concurrence in the automatic extension of the Term, as set forth in Section
      3 of this Agreement, the Employer shall be obligated concurrently with the
      termination of such employment, in lieu and replacement of the Employee’s
      entitlement to any compensation and other benefits under this Agreement pursuant
      to Section 9(a)(i), to make severance payments to the Employee in an aggregate
      amount that is equal to the Employee's then current annual base salary for
      a
      period of one (1) year (collectively, the "Severance Payments"). The Severance
      Payments shall be paid after termination of employment in equal monthly
      installments according to the Employer’s normal payroll practices then in
      effect. In the event termination under this subsection occurs before Employee
      has completed twelve months of service, Employers obligation to make severance
      payments shall be limited to one month of base salary for each completed full
      month of service, but in no case less than six months of base salary.

     

    However,
      if the Employer's termination of the Employee's employment without Cause occurs
      in connection with, or within one and one-half (1 1⁄2) years after, a "Change in
      Control" as defined in Section 12(b) hereof, the amount payable to the Employee
      shall be exclusively determined under Section 12(a) as limited by Section 12(c)
      hereof, and the Employer shall not be required to make the payments set forth
      in
      this Section. The Severance Payments under this Section 9(a)(ii) shall not
      be
      reduced by any compensation which the Employee may receive for other employment
      with another employer after termination of his employment with the
      Employer.
      In
      addition, the Employee shall be entitled to have all existing retirement or
      employee benefits of the type referred to in Section 6 hereof continue for
      the
      remainder of the Term when the Agreement is terminated, except as otherwise
      required by law or provided in the related retirement or other employee benefit
      plans or agreements. Notwithstanding the foregoing, the Employer shall have
      no
      obligation to make any contributions to any retirement plan applicable to the
      Employee after the date the Employee ceases to be employed by the Employer
      except as may be required by such applicable plan. Notwithstanding anything
      stated herein to the contrary, and for purposes of clarity, should the Employer
      terminate the Employment of the Employee for Cause, the Employee shall not
      be
      entitled to receive Severance Payments. In the event of a retirement plan,
      the
      Employee shall be entitled to contributions made by the Employer to the
      retirement plan on the Employee’s behalf prior to the date of the Employee’s
      termination, which have vested and for which the Employee is otherwise eligible
      in accordance with the written terms of the official plan documents governing
      any applicable retirement plan. The Employer shall have no obligation to make
      the Severance Payments set forth in this Section unless the Employee fully
      complies with his obligations under this Agreement, including, but not limited
      to, his obligations under Sections 10 and 11 of this Agreement. 

     

    (iii)
      References in this Agreement to “termination for Cause” shall mean termination
      on account of acts or omissions of the Employee which constitute Cause as
      defined below. Any determination with respect to a termination for Cause shall
      require the approval of the Board of Directors of the Employer. “Cause” shall
      mean any of the following:

     

    (A) conviction
      of a felony,

     

    (B) theft
      from the Employer,

     

    (C) breach
      of
      fiduciary duty involving personal profit,

     

    (D) sustained
      and continuous conduct by the Employee which adversely affects the reputation
      of
      the Employer,

     

    (E) continued
      failure of the Employee to substantially and satisfactorily perform his duties
      or obligations under this Agreement following twenty (20) days’ notice by the
      Employer to the Employee and a failure by the Employee to correct the deficiency
      cited in such notice (other than any such failure resulting from the Employee’s
      incapacity due to physical or mental illness). 

     

    (b) Termination
      by the Employee.

     

      The
        Employee shall have no right to terminate his employment under this Agreement
        prior to the end of the Term of this Agreement, unless such termination is
        either for Good Reason (as described in Section 12(a) hereof) (i) in connection
        with, or within one (1) and one-half years after, a Change in Control; or
        (ii)
        approved by the Board of Directors of the Employer. For purposes of this
        Agreement, the term “Not Good Reason” shall mean such termination by the
        Employee of his employment for reasons other than for Good Reason. In the
        event
        that the Employee terminates his employment for Not Good Reason, the Employee
        shall have no right to receive compensation or other benefits, including
        payment
        of legal fees and expenses incurred, for any period after such termination
        except as otherwise required by law. Where the Employee terminates his
        employment for Good Reason, the Employer shall continue to be subject to
        any
        independent obligation to the Employee under any employee benefit plan in
        which
        the Employee is then a participant. Where the Employee terminates his employment
        for Not Good Reason, the Employer shall have no obligation to continue to
        be
        subject to any independent obligations to the Employee under any employee
        benefit plan for which the Employee is then a participant, except as otherwise
        required by law.

     

    Notwithstanding
      anything stated herein to the contrary, and for purposes of clarity, should
      the
      Employee terminate his Employment for Not Good Reason, the Employee shall not
      be
      entitled to receive Severance Payments as described in Section 9(a)(ii).
      However, nothing herein shall in any way affect the Employee’s entitlement to
      indemnification under Paragraph 15 of the Agreement entitled “Legal Expenses”
unless Employee is terminated by the Employer prior to the Term of this
      Agreement for “Cause” (as defined in Section 9(a)(iii) of the Agreement) and the
      reason for Employee’s termination for “Cause” is related to the claim with
      respect to which indemnification is sought.  

     

    (c) Death
      and
      Disability.

     

      The
        Employee’s employment under this Agreement may also cease prior to the end of
        the Term of this Agreement in the event of the Employee’s death or upon the
        Employee becoming “Totally Disabled.” For purposes of this Agreement, “Totally
        Disabled” shall mean such situation where the Employee, because of injury (the
“Injury”) or sickness (the “Sickness”), the Employee is unable to perform the
        material duties of his regular occupation for a specified period; and, solely
        due to injury or sickness, he is unable to earn more than the percentage
        of
        their Indexed Covered Earnings (as that term is defined in the Employer’s
        Long-Term Disability Summary Plan Description) from working in his regular
        occupation. Thereafter, “Totally Disabled” shall mean such situation where the
        Employee is disabled in that his injury or sickness makes his unable to perform
        the material duties of any occupation for which he may reasonably become
        qualified based on education, training or experience; and solely due to such
        Injury or Sickness, he is unable to earn more than the percentage of their
        Indexed Covered Earnings (as that term is defined in the Employer’s Long-Term
        Disability Summary Plan Description). For purposes of this Agreement the
        Employee shall be “Totally Disabled” as of the date he becomes entitled to
        receive disability benefits under the Employer’s long term disability plan. In
        the event that the Employee’s employment is terminated by his death or upon
        becoming “Totally Disabled,” the Employee or the Employee’s heirs or estate (as
        applicable), shall be entitled to receive (i) any accrued but unpaid salary
        for
        services rendered to the date of termination as determined pursuant to Section
        4, (ii) any vacation accrued under the Employer’s policy to the date of
        termination, and (iii) any accrued but unpaid expenses pursuant to Section
        14 of
        this Agreement. The benefits to which the Employee may be entitled upon
        termination pursuant to the plans and arrangements referred to in Section
        6 of
        this Agreement shall be determined and paid in accordance with the terms
        of such
        plans and arrangements. 

     

    (d) The
      Employer shall have no obligation to make the payments set forth herein if
      the
      Employee is in material breach of the Employee’s obligations under this
      Agreement. The Employee shall be obligated to execute a general release of
      claims in favor of the Employer, its current and former parents, subsidiaries,
      subdivisions, divisions, shareholders, Board of Directors, or affiliated
      entities or persons, and the current and former directors, officers, employees
      and agents of the Employer, in a form acceptable to the Employer (the
“Release”), as a condition to receiving the Severance Payments described
      above.

     

    10. Confidential
      Information and Non-Competition.

     

    (a) “Confidential
      Information” shall mean trade secrets or confidential information relating to
      the Employer, its customers, affiliates and their respective businesses,
      including, but not limited to, the identity of the Employer’s customers; the
      entity of distributors and suppliers of the Employer; the identity of
      representatives responsible for entering into contracts with the Employer;
      specific customer, distributor and supplier needs and requirements; the details
      of contracts and proposals between the Employer and its customers, distributors
      and suppliers; selling and marketing strategies, prices, costs and profit
      margins; the names, addresses and other contact information of purchasing
      agents, vendors or other entities; purchasing techniques, methods, procedures
      and processes; manufacturing and production techniques, methods, procedures
      and
      processes; other techniques, methodologies and processes used by the Employer
      in
      the conduct of its business; techniques, methods, procedures, know-how,
      show-how, prototypes and technical specifications; computer data, software,
      software codes, computer models, research projects, data processing and other
      programs; production and manufacturing equipment and operating practices;
      information with respect to products and product formulae, designs, plans for
      future business, new business, products or other developments; new or innovative
      ideas, customer proposals, marketing plans and ideas, and future developments
      or
      strategies; information pertaining to research and development, acquisitions
      or
      divestitures, marketing and sales, cost cutting, revenue generation, or other
      matters concerning the Employer’s planning and strategy; and other nonpublic
      financial and other information of the Employer disclosed to or known by the
      Employee as a consequence of or through the Employee’s employment (or other
      service relationship) with the Employer (including information conceived,
      originated, discovered or developed by the Employee), which information is
      not
      generally known in the relevant trade or industry or public knowledge. The
      Employee acknowledges and agrees that the Confidential Information is not
      generally known or available to the public, but has been developed, compiled
      or
      acquired by the Employer at its great effort and expense. Confidential
      Information can be in any form: oral, written or machine readable, including
      electronic files. 

     

    (b) The
      Employee acknowledges and agrees that the Employer is engaged in a highly
      competitive business and that its competitive position depends upon its ability
      to maintain the confidentiality of the Confidential Information and Trade
      Secrets which were developed, compiled and acquired by the Employer at its
      great
      effort and expense. The Employee further acknowledges and agrees that any
      disclosure, divulging, revelation or use of any of the Confidential Information,
      other than in connection with the Employer’s business or as specifically
      authorized by the Employer, will be highly detrimental to the Employer, and
      that
      serious loss of business and goodwill and pecuniary damage may result therefrom.
      During the Employee’s employment with the Employer and thereafter, the Employee
      shall hold for the benefit of the Employer, and not for the Employee’s own
      benefit or disclosure to third parties, all Confidential Information relating
      to
      the Employer and its business, including all Confidential Information of
      customers of the Employer (i) obtained by the Employee during the Employee’s
      employment with the Employer and (ii) not otherwise public knowledge or
      generally known in the trade or industry. The Employee shall not, without the
      prior written consent of the Employer, unless compelled pursuant to the order
      of
      a court or other governmental or legal body having jurisdiction over such
      matter, communicate or divulge any such Confidential Information to anyone
      other
      than the Employer and those designated by it. In the event the Employee is
      compelled by order of a court or other governmental or legal body to communicate
      or divulge any such Confidential Information to anyone other than the Employer
      and those designated by it, the Employee shall promptly notify the Employer
      of
      any such order and the Employee shall cooperate fully with the Employer in
      protecting such information to the extent possible under applicable law and
      will
      only disclose that portion of the Confidential Information necessary to satisfy
      any such order.

     

    (c) 
      Upon
      termination of the Employee’s employment with the Company, or at any time the
      Company requests, all equipment, property, documents, files, records, notes,
      memoranda, designs, reports, price lists, cost sheets, prototypes, blue prints,
      technical specifications, estimates, databases, home office equipment,
      automobiles, computer equipment, computer files, computer programs, plans,
      documents and all other property and Confidential Information of the Employer
      (including all copies in all forms in the Employee’s possession or control),
      whether prepared by the Employee solely or jointly with others, shall be left
      with or promptly returned to the Employer and shall at all times be the property
      of the Employer. 

     

      (d) The
        Employee acknowledges and agrees that the Employer is engaged in a highly
        competitive business, and by virtue of the Employee’s position and
        responsibilities with the Employer, and the Employee’s access to Confidential
        Information, the Employee’s engaging in any business which is directly or
        indirectly competitive with the Employer will cause it great and irreparable
        harm. During the period of employment as an officer and/or employee of the
        Employer, the Employee will devote his available business time and best efforts
        to promoting and advancing the business of the Employer. During the Term
        of the
        Agreement and for a period of two (2) years after termination of such employment
        (for any reason whatsoever), the Employee agrees that he will not, in any
        jurisdiction around the world in which the Employer conducts business, whether
        alone or as a partner, officer, director, consultant, agent, employee or
        stockholder of any company or other commercial enterprise, engage in any
        business or other commercial activity which is or may be competitive with
        the
        products and services being designed, conceived, marketed, distributed or
        developed by the Employer at the time of termination of such
        employment, unless written approval is obtained from the Company’s Board of
        Directors. For purposes of this Section, competitive products and services
        shall
        be defined to mean non-photographic imaging, computer-to-plate, direct-to-press,
        thermal laser or chemistry-free printing plate technology products and services
        or any other products and services substantially similar to the products
        and
        services designed, conceived, marketed, distributed or developed by the Employer
        at the time of termination of the Employee’s employment. The Employee
        acknowledges, understands and agrees that accepting such competitive employment
        would cause him to inevitably use, misappropriate and disclose the Employer’s
        Confidential Information which the Employee came to learn during his employment
        with the Employer. 

     

    (e) The
      Employee acknowledges and agrees that during the course and solely as a result
      of the Employee’s employment with the Employer, the Employee has and will become
      aware of some, most or all of the customers of the Employer, their names and
      addresses, their representatives responsible for engaging the services of the
      Employer and their specific needs and requirements. The Employee further
      acknowledges and agrees that the loss of such customers will cause the Employer
      serious loss of business and will be detrimental to the Employer’s goodwill and
      will cause great and irreparable harm. During the Term of the Agreement and
      for
      a period of one (1) year after termination of employment (for any reason
      whatsoever), the Employee will not directly or indirectly either for himself
      or
      for any other person or commercial enterprise (1) divert or take away or attempt
      to divert or take away, any of the Employer’s customers or business in existence
      at the time of termination of such employment that the Employee had contact
      with, for whom the Employee performed services during his employment with the
      Employer and/or that were made known to the Employee by the Employer during
      his
      employment with the Employer; and/or (2) solicit or attempt to solicit, ask
      for,
      accept, or seek to do business with, for the purpose or effect of engaging
      in
      competition with the Employer, any of the Employer’s customers or business in
      existence at the time of termination of such employment with whom the Employee
      had contact, for whom the Employee performed services during his employment
      with
      the Employer and/or that were made known to the Employee by the Employer during
      his employment. 

     

      (f) The
        Employee acknowledges and agrees that during the course and solely as a result
        of the Employee’s employment with the Employer, the Employee has and will become
        aware of some, most or all of the employees of the Employer, and has and
        will
        acquire knowledge of their qualifications, skills, abilities, salaries,
        commissions, benefits and other matters with respect to such employees not
        generally known to the public. The Employee further acknowledges and agrees
        that
        any solicitation, luring away or hiring of such employees of the Employer
        will
        cause serious loss of business and will be detrimental to the Employer’s
        goodwill and will cause great and irreparable harm. During the Term of the
        Agreement and for a period of two (2) years after termination of employment
        (for
        any reason whatsoever), the Employee will not directly or indirectly either
        for
        himself or for any other person or commercial enterprise (1) solicit or induce
        any employee to terminate his employment relationship with the Employer,
        and/or
        (2) recruit, attempt to recruit, hire, or attempt to hire any employee of
        the
        Employer other than on behalf of the Employer.

     

    (g) The
      Employee hereby acknowledges and agrees that the type and periods of
      restrictions imposed in Sections 10(a) through 10(f) of this Agreement are
      fair
      and reasonable and are reasonably required for the protection of the Employer’s
      Confidential Information and the goodwill associated with the business of the
      Employer. Further, the Employee acknowledges and agrees that the restrictions
      imposed in Sections 10(a) through 10(f) will not prevent him from obtaining
      suitable employment after his employment with the Employer ceases or from
      earning a livelihood. The Employee hereby acknowledges, agrees and understands
      that he would not be entitled to the Severance Payments (as described in Section
      9(a)(ii)) or the Change in Control payment (as described in Section 12(a)),
      except for his agreement to fulfill his obligations under this Agreement,
      including, but not limited to, his obligations under Sections 10(a) through
      10(f) and Section 11 of this Agreement.

     

    11. Assignment
      of Inventions.
      The
      Employee expressly understands and agrees that any and all right or interest
      he
      may obtain in any designs, trade secrets, technical specifications and technical
      data, know-how and show-how, customer and vendor lists, marketing plans, pricing
      policies, inventions, concepts, ideas, works of authorship, documentation,
      formulae, data, designs, techniques, discoveries, improvements or intellectual
      property rights of any kind or any interest therein (whether or not patentable
      or registrable under copyright, trademark or similar statutes (including, but
      not limited to, the Semiconductor Chip Protection Act) or subject to analogous
      protection) that he, whether alone or jointly with others, authors, conceives,
      devises, develops, reduces to practice, or otherwise obtains during the
      Employee’s employment with the Employer, and that (i) relate to or arise out of
      his employment with the Employer; (ii) relate to the Employer’s present or
      planned business or any of the products or services being designed, conceived,
      developed, marketed, manufactured or distributed by the Employer or that may
      be
      used in relation therewith; (iii) result from the use of premises or personal
      property (whether tangible or intangible) owned, leased or contracted for or
      by
      the Employer; (iv) result from activities engaged in during the Employer’s time;
      and/or (v) result from use of Confidential Information of the Employer whether
      such use occurred prior to or during the Employee’s employment with the Employer
      (the “Inventions”), are and shall immediately become the sole and absolute
      property of the Employer and its assigns, as works made for hire or
      otherwise.

     

    The
      Employee hereby assigns to the Employer the sole and exclusive right to such
      Inventions. The Employee agrees that he will promptly disclose to the Employer
      any and all such Inventions, and that, upon request of the Employer, the
      Employee will execute and deliver any and all documents or instruments and
      take
      any other action which the Employer shall deem necessary to assign to and vest
      completely in the Employer, to perfect trademark, copyright and patent
      protection with respect to, or to otherwise protect the Employer’s trade secrets
      and proprietary interest in such Inventions. The Employer agrees to pay any
      and
      all copyright, trademark and patent fees and expenses or other costs incurred
      by
      the Employee for any assistance rendered to the Employer pursuant to this
      Section.

     

    In
      the
      event the Employer is unable, after reasonable effort, to secure the Employee’s
      signature on any letters, patent, copyright or other analogous protection
      relating to an Invention, the Employee hereby irrevocably designates and
      appoints the Employer and any of its officers as his agent and attorney-in-fact,
      to act for and on his behalf and stead to execute and file any such application
      or applications and to do all other lawfully permitted acts to further the
      prosecution and issuance of letters patent, copyright or other analogous
      protection thereon with the same legal force and effect as if executed by the
      Employee. The obligations in this Section shall continue beyond the termination
      of the Employee’s employment.

     

    12. Change
      in Control. 

     

    (a)
      (i)
      If during the Term of this Agreement there is a Change in Control of the
      Employer, and the Employee’s employment with the Employer is terminated
      involuntarily (other than for Cause), or voluntarily for Good Reason (as defined
      below), in connection with or within one and one-half (1 1⁄2) years after such
      Change in Control, then the Employee shall be entitled to receive a lump sum
      cash payment as provided in Section 12(a)(ii) below. The Employer shall have
      no
      obligation to make the payment set forth in this Section unless the Employee
      fully complies with his obligations under this Agreement, including, but not
      limited to, his obligations under Sections 10 and 11 of this Agreement. The
      Employer shall have no obligation to make the payment set forth in this Section
      in the event of the Employee’s death or upon Employee becoming “Totally
      Disabled” (as described in Section 9(a)(c)) on the date of a Change in Control
      or within one and one-half (1 1⁄2) years after such Change in Control. In such
      event, the payments and benefits, if any, to which the Employee may be entitled
      shall be determined in accordance with Section 9(c) of this Agreement.

     

    (ii) Subject
      to Section 12(c) hereof, the lump sum cash payment (the “Payment”) shall be in
      an amount equal to two (2) times the Employee’s average annual base salary paid
      to the Employee by the Employer over the five (5) most recent years ending
      prior
      to such Change in Control of the Employer (or such portion of such period during
      which the Employee was a full-time employee of the Employer). In addition,
      in
      the event of a Change in Control, all existing options that have been granted
      to
      the Employee shall be subject to immediate vesting. 

     

    (iii) As
      used
      herein, the term “Good Reason” means, unless previously consented to in writing
      by the Employee, the occurrence of any one of the following:

     

    (A) the
      assignment to the Employee of duties and responsibilities that are not at least
      substantially equivalent to the Employee’s duties and responsibilities with the
      Employer immediately prior to such Change in Control;

     

    (B) the
      failure to continue the Employee in a position and title that is at least
      substantially equivalent to the position held by the Employee with the Employer
      immediately prior to such Change in Control, except in connection with the
      termination of the Employee’s employment for Cause or as a result of death or
      upon the Employee becoming Totally Disabled (as described in Section
      9(2)(c));

     

    (C) a
      reduction in or failure to pay currently total annual cash compensation in
      an
      amount equal to or greater than the sum of (i) the Employee’s salary at the
      highest annual rate in effect during the 12-month period immediately prior
      to
      such Change in Control, and (ii) the bonus paid to similarly situated employees
      pursuant to the acquiring Employer’s executive bonus plan for the fiscal year
      ending immediately prior to such Change in Control;

     

    (D) the
      Employee’s benefits under any employee benefit or welfare plan of the acquiring
      Employer are less, or are reduced to less (subject to Employer’s right to
      provide equivalent benefits in cash or otherwise in kind), other than reductions
      mandated by a change in law, than the benefits of similarly situated employees
      under any employee benefit or welfare plan of the acquiring Employer in effect
      immediately prior to such Change in Control;

     

    (E) the
      Employee is reassigned to a place of business which is more than thirty-five
      (35) miles from a major city in the United States as defined by the twenty-six
      (26) Standard Metropolitan Statistical Areas; or

     

    (F) any
      material breach by the Employer of this Agreement.

     

    (iv) Payment
      under this Section 12(a) shall be in lieu of any amount owed to the Employee
      as
      severance payments for termination without Cause under Sections 9(a) hereof.
      However, payment under this Section 12(a) shall not be reduced by any
      compensation which the Employee may receive from other employment with another
      employer after termination of his employment with the Employer. The Employer
      shall have no obligation to make any contributions to any retirement plan that
      may be applicable to the Employee after a Change in Control of the Employer.
      The
      Employee shall be entitled to contributions made by the Employer to any
      retirement plan that may be applicable to the Employee on the Employee’s behalf
      prior to a Change in Control of the Employer, which have vested and for which
      the Employee is otherwise eligible in accordance with the written terms of
      the
      official plan documents governing any applicable retirement plan.

     

    (b) A
“Change
      in Control of the Employer,” for purposes of this Agreement, shall be deemed to
      have taken place if as the result of, or in connection with, any cash tender
      or
      exchange offer, merger, or other business combination, sale of assets or
      contested election, or any combination of the foregoing transactions, the
      persons who were directors of the Employer before such transaction shall cease
      to constitute a majority of the Board of Directors of the Employer or any
      successor institution.

     

    (c) Notwithstanding
      any other provisions of this Agreement or of any other agreement, contract,
      or
      understanding heretofore or hereafter entered into by the Employee with the
      Employer, except an agreement, contract, or understanding hereafter entered
      into
      that expressly modifies or excludes application of this Section 12(c) (“Other
      Agreements”), and notwithstanding any formal or informal plan or other
      arrangement heretofore or hereafter adopted by the Employer for the direct
      or
      indirect provision of compensation to the Employee (including groups or classes
      of participants or beneficiaries of which the Employee is a member), whether
      or
      not such compensation is deferred, is in cash, or is in the form of a benefit
      to
      or for the Employee (a “Benefit Plan”), the Employee shall not have any right to
      receive any payment or other benefit under this Agreement, any Other Agreement,
      or any Benefit Plan if such payment or benefit, taking into account all other
      payments or benefits to or for the Employee under this Agreement, all Other
      Agreements, and all Benefit Plans, would cause any payment to the Employee
      under
      this Agreement to be considered a “parachute payment” within the meaning of
      Section 280G(b)(2) of the Internal Revenue Code as then in effect (a “Parachute
      Payment”), as determined by a nationally recognized accounting firm selected by
      the Board. In the event that the receipt of any such payment or benefit under
      this Agreement, any Other Agreement, or any Benefit Plan would cause the
      Employee to be considered to have received a Parachute Payment under this
      Agreement, then the Employee shall have the right, in the Employee’s sole
      discretion, to designate those payments or benefits under this Agreement, any
      Other Agreements, and/or any Benefit Plans, which should be reduced or
      eliminated so as to avoid having the payment to the Employee under this
      Agreement be deemed to be a Parachute Payment.

     

    (d) The
      Employer shall have no obligation to make the payments set forth herein if
      the
      Employee is in material breach of the Employee’s obligations under this
      Agreement. The Employee shall be obligated to execute a general release of
      claims in favor of the Employer, its current and former parents, subsidiaries,
      subdivisions, divisions, shareholders, Board of Directors, or affiliated
      entities or persons, and the current and former directors, officers, employees
      and agents of the Employer, in a form acceptable to the Employer (the
“Release”), as a condition to receiving the payments set forth in this
      Section.

     

    13. Remedies.
      The
      Employee acknowledges and agrees that compliance with the covenants set forth
      in
      this Agreement is necessary to protect the business and goodwill of the Employer
      and that any breach of Sections 10 through 11 of this Agreement will result
      in
      irreparable and continuing harm to the Employer, for which money damages may
      not
      provide adequate relief. Accordingly, in the event of any breach or anticipatory
      breach of Sections 10 and 11 by the Employee, the Employer and the Employee
      agree that the Employer shall be entitled to the following particular forms
      of
      relief as a result of such breach, in addition to any remedies otherwise
      available to it at law or equity: (a) injunctions, whether temporary,
      preliminary or permanent, enjoining or restraining such breach or anticipatory
      breach, and the Employee hereby consents to the issuance thereof forthwith
      and
      without bond by any court of competent jurisdiction; and (b) recovery of all
      reasonable sums and costs, including attorneys’ fees, incurred by the Employer
      to enforce the provisions of Sections 10 and 11. 

     

    14. Expenses;
      Automobile Allowance.

     

    (a) The
      Employee is authorized to incur, during the Term of this Agreement, reasonable
      expenses for promoting the business of the Employer, including without
      limitation expenses for entertainment, travel and similar items. The Employer
      will promptly reimburse the Employee for all such expenses, upon the
      presentation by the Employee, from time to time, of an itemized account of
      such
      expenses.

     

    (b) During
      the Term of this Agreement, the Employer shall provide Employee with an
      automobile allowance of $1000 per month, and the Employer shall reimburse the
      Employee (upon submission by him of reasonably itemized accounts thereof) for
      all gasoline, tolls, and parking.

    

    

     

    15. Legal
      Expenses.
      The
      Employer shall indemnify and hold harmless the Employee from and against any
      and
      all costs and liabilities, including without limitation reasonable attorneys’
fees, arising out of or in connection with becoming, being or having been an
      officer or director of the Employer, except in relation to matters as to which
      the Employee shall be finally adjudged not to have acted in good faith in the
      reasonable belief that his action or failure to act was in the best interest
      of
      the Employer. 

     

    16. Successors
      and Assigns; Assumption by Successors.
      All
      rights hereunder shall inure to the benefit of the parties hereto, their
      personal or legal representatives, heirs, successors or assigns. This Agreement
      may not be assigned or pledged by the Employee. The Employer will require any
      successor (whether direct or indirect, by purchase, assignment, merger,
      consolidation or otherwise) to all or substantially all of the business and/or
      assets of the Employer in any consensual transaction expressly to assume this
      Agreement and to agree to perform hereunder in the same manner and to the same
      extent that the Employer would be required to perform if no such succession
      had
      taken place. References herein to the Employer will be understood to refer
      to
      the successor or successors of the Employer, respectively.

     

    17. Other
      Contracts.
      The
      Employee shall not, during the Term of this Agreement, have any other paid
      employment (other than with a subsidiary or affiliate of the Employer), except
      with the prior approval of the Board of Directors of the Employer.

     

      18. Entire
        Agreement. This Agreement constitutes the entire agreement between
        the parties with respect to the subject matter contained herein, and supersedes
        all prior employment agreements and understandings, whether written or oral,
        except for the Employer’s Code of Business Conduct and Ethics, Corporate
        Communications Disclosure Procedures, Insider Trading Policy Statement and
        2003
        Stock Incentive Plan which are incorporated herein by reference.

     

    19. Amendments
      or Additions.
      There
      are currently no oral representations, agreements or understandings which affect
      the enforceability of this Agreement, and no alteration or variation of the
      terms of this Agreement can be valid unless made in writing and signed by both
      parties, wherein specific reference is made to this Agreement. 

     

    20. Section
      Headings.
      The
      section headings used in this Agreement are included solely for convenience
      and
      shall not affect, or be used in connection with, the interpretation of this
      Agreement.

     

    21. Severability.
      Each
      promise and provision contained in this Agreement shall be enforceable
      independently of every other promise and provision in this Agreement. If any
      provision contained in this Agreement is determined to be partially or totally
      invalid or unenforceable in any respect, such determination shall not affect
      any
      other provision of this Agreement, but this Agreement shall be considered
      divisible as to such provision which shall become null and void, leaving the
      remainder of this Agreement in full force and effect. 

     

    22. Governing
      Law.
      This
      Agreement shall be governed by the laws of the United States where applicable
      and otherwise by the laws of the State of New Hampshire, without giving effect
      to the conflicts of laws principles thereof.

     

     

    23. Arbitration
      of Disputes and Jury Waivers.

     

    (a) The
      parties hereto agree to arbitrate any dispute, claim, or controversy ("claim")
      against each other arising out of the cessation of the Employee’s employment,
      any claim of unlawful discrimination or harassment that might or did arise
      during or as a result of the Employee’s employment which could have been brought
      before an appropriate government administrative agency or in an appropriate
      court, including but not limited to claims of age discrimination under the
      Age
      Discrimination in Employment Act of 1967, as amended, as well as any claim
      or
      controversy arising under this Agreement. The Arbitration shall be arbitrated
      by
      one arbitrator in accordance with the National Rules for the Resolution of
      Employment Disputes of the American Arbitration Association. The decision or
      award of the arbitration shall be final and binding upon the parties. Any
      arbitral award may be entered as a judgment or order in any court of competent
      jurisdiction. Any claims under Sections 10 and 11 of this Agreement shall not
      be
      subject to arbitration, but shall be subject to the remedies set forth in
      Section 13 hereof. 

    

    (b) If
      for
      any reason this arbitration provision is declared unenforceable, the Employee
      agrees to waive any right he may have to a jury trial with respect to any
      dispute or claim against the Employer relating to this Agreement, his
      employment, termination or any terms and conditions of employment, including,
      but not limited to claims of age discrimination under the Age Discrimination
      in
      Employment Act of 1967, as amended.

    

    (c) The
      Employee has been advised of his right to consult with counsel regarding this
      Agreement. The Employee's acceptance of this Agreement can be revoked any time
      within seven (7) days of signing this Agreement, but such revocation must be
      signed and in writing. The Employee has been afforded at least twenty-one (21)
      days to consider this Agreement.

    

      [Signature
        page to follow.]

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

      IN
        WITNESS WHEREOF, the parties have knowingly and voluntarily executed this
        Agreement this 27thday
        of February, 2007.

     

    

     

    PRESSTEK,
      INC. (the “Employer”)

     

    

    By:
      _/s/Edward J. Marino____

      Edward
        J. Marino 

    Chief
      Executive Officer, 

    By
      Direction of the

      Compensation
        Committee of the Board of Directors

    

    

    

      __/s/
      Jeffrey Cook_______

    Jeffrey
      Cook 

    (the
      “Employee”)Employment Agreement J. Jacobson

     

    Exhibit
      10.1

    EMPLOYMENT
      AGREEMENT

    

      AGREEMENT
        (the “Agreement”)
        made this 10th day of May, 2007 (the “Effective
        Date”) by and between Presstek, Inc., a Delaware corporation (the
“Employer”),
        and Jeffrey Jacobson, (the “Employee”).

    

      WHEREAS,
        both the Employer and the Employee believe it is in the best interests of
        the
        Employer and the Employee that the Employee be employed as President, Chief
        Executive Officer and Director of the Board of Directors (the “Board”)
        of the Employer. 

    

    THEREFORE,
      in consideration of the promises contained in this Agreement the parties agree
      as follows:

    

    1. Employment. During
      the
      Term of
      this Agreement, the Employee agrees to serve as President, Chief Executive
      Officer, and as a member of the Board of the Employer. The Employee agrees
      to
      devote all of his business time and efforts to the performance of his duties.
      The Employee shall at all times report to, and his activities shall at all
      times
      be subject to, the direction and control of the Board. The Employee shall
      exercise such powers and comply with such directions and duties in relation
      to
      the business and affairs of the Employer as may from time to time be vested
      in
      or requested of him, and shall not engage in any other business activity,
      whether or not for profit, without the written authorization of the Board.
      If
      Employee shall be elected to other offices of the Employer or any of its
      affiliates, he shall serve in such positions without further compensation than
      provided for in this Agreement. 

     

    2. Term.
      The Term
      of this Agreement shall commence on May 10, 2007 (May 10 being the “Effective
      Date”)
      and
      end on the day preceding the fourth anniversary of the Effective Date (that
      four
      year period, and any extensions thereof, being the “Term”),
      unless terminated sooner in accordance with the provisions of this Agreement.
      On
      each anniversary of the Effective Date, commencing with the fourth anniversary
      of the Effective Date, the Term shall be automatically extended for an
      additional year unless the Employer or the Employee gives written notice to
      the
      other, at least 180
      days
      prior to such anniversary, that the Employer or the Employee does not concur
      in
      such extension. 

     

       3. Compensation.
        The Employer agrees to pay the Employee an annual Base Salary of $600,000
        in the
        first year of the Term. The Board or the Compensation Committee will review
        the
        Base Salary no less than annually during the Term, and increase the Base
        Salary
        so that it is no less than $633,000 in the second year of the Term, no less
        than
        $667,000 in the third year of the Term, and no less than $700,000 in the
        fourth
        year of the Term. In the annual salary review, the Board or Compensation
        Committee may also compensate the Employee for increases in the market value
        of
        the Employee's duties and responsibilities and may provide for performance
        or
        merit increases. The Base Salary of the Employee and his Target Bonus shall
        not
        be decreased at any time during the Term from the amount then in effect,
        unless
        the Employee otherwise agrees in writing. The Base Salary shall be payable
        to
        the Employee in accordance with the Employer’s payroll system, as determined by
        the Employer, but not less frequently than monthly. All payments and benefits
        in
        this Agreement shall be subject to all applicable federal, state and local
        withholding, payroll and other taxes.

     

    Participation
      in discretionary bonuses, retirement and other employee benefit plans and fringe
      benefits shall not reduce the Base Salary payable to the Employee under this
      Section 3.

     

    4. Target
      Bonuses.
      Employee
      will be entitled to a guaranteed cash bonus for 2007 of $400,000, provided
      that
      Employee commences employment no later than May 15, 2007. In the event
      Employee commences employment subsequent to May 15, 2007, such 2007 bonus
      shall be pro-rated so that Employee is paid one-twelfth (1/12) of said amount
      for each full month of service completed during calendar year 2007. Said bonus
      shall be paid upon completion of the Employer’s annual audit, but in no event
      later than April 1, 2008. Beginning with calendar year 2008, the Employee is
      also eligible to receive an annual discretionary target bonus of no less than
      66.67% of that year’s Base Salary (the “Target Bonus”). In the third year of the
      Term the Target Bonus shall be no less than 75% of that year’s Base Salary. In
      the fourth year of the Term the Target Bonus shall be no less than 100% of
      that
      year’s Base Salary. Such Target Bonus, if any, shall be based on the Employee’s
      achievement of certain goals and objectives to be determined by the Board in
      consultation with the Employee in the first quarter of each calendar year or
      otherwise as practical and paid upon completion of the Employer’s annual audit
      for the year of the Target Bonus. 

     

    5. Stock
      Grant, Stock Option Grant, Employee Benefit Plans. 

     

    (a)
      On
      the Effective Date, Employer shall grant Employee 300,000 shares of the
      Employer’s restricted stock (the “Signing
      Bonus”),
      subject to the terms and conditions of the Subscription Agreement annexed hereto
      as Appendix A, which Signing Bonus shall vest in full on the day Employee
      commences employment. 

     

    (b)
      On
      the Effective Date, subject to the terms and conditions of the Stock Option
      Agreement annexed hereto as Appendix B,
      the
      Employee shall be granted the right to purchase 1,000,000 shares of the
      Employer's Common Stock (the “Stock
      Option Grant”),
      which
      options shall vest equally as follows:

     

    20%
      on
      the Effective Date;

     

    an
      additional 20% on January 1, 2008;

     

    an
      additional 20% on January 1, 2009;

     

    an
      additional 20% on January 1, 2010;

     

    the
      final
      20% on January 1, 2011.

     

    (c)
      The
      per share exercise price for Employee’s Stock Option Grant will be determined by
      the average closing price of a share of the Employer’s Common Stock for the five
      (5) trading days immediately prior to the Effective Date. 

    

    (d)
      The
      Signing Bonus and the Stock Option Grant referred to in this Section 5 are
      made
      pursuant to NASDAQ Rule 4350(i)(1)(A)(iv) (the “NASDAQ
      Exception”)
      as an
      inducement material to the Employee’s entering into employment with the Employer
      and are approved by the Employer’s independent compensation committee. Following
      the issuance of these grants in reliance on this NASDAQ Exception, Employer
      will
      disclose in a press release the material terms of the grants, including the
      recipient of the grants and the number of shares and options
      involved.

       

      (e)
        The above Stock Option Grant pursuant to the NASDAQ Exception shall vest
        in its
        entirety on the date that any of the following occur: (i) the Employer
        terminates the Employee’s employment without Cause; (ii) the Employee voluntary
        terminates his employment for Good Reason; (iii) a Change in Control; (iv)
        the
        Employer or the Employee gives written notice that it or he does not concur
        to
        an extension of the Term; (v) the Employee’s death, or (vi) the Employee becomes
        Totally Disabled (as those capitalized terms are defined below).

     

     

    (f)
      Each
      portion of the option contained in the above Stock Option Grant shall be
      exercisable for five (5) years after that portion of the option has vested,
      unless sooner terminated as set forth in this Agreement.

     

    (g)
      In
      addition to the foregoing, the Employee may participate during the Term in
      any
      other plan or arrangement of the Employer relating to stock options, stock
      purchases, pension, thrift, profit sharing benefits, other benefits under
      qualified or non-qualified deferred compensation plans, group life insurance,
      medical coverage, education or any other employee benefits that the Employer
      in
      its sole discretion may adopt and elect to make available for the benefit of
      the
      employees.

     

    (h)
      The
      Employer fully reserves its rights to change, modify or discontinue any of
      its
      stock purchase, retirement, or employee benefit plans at any time during the
      Term in its sole and absolute discretion, and in accordance with applicable
      law,
      however any such change, modification or discontinuance shall not materially
      adversely affect any Equity that has been granted to Employee, whether or not
      such Equity has vested.            
      6. Vacations.
      The
      Employee shall be entitled to an annual paid vacation of four (4) weeks per
      year
      during each year of the Term. The timing of paid vacations shall be scheduled
      in
      a reasonable manner by the Employee. 

     

    7. Termination
      of Employment.

     

    The
      Employee’s employment with the Employer may terminate as
      follows (and the last day of employment shall be the “Termination
      Date”):

     

    (A) termination
      by the Board of the Employer either (i) for Cause (as defined in Section
      7(a)(iii) below) or (ii) without Cause; 

     

    (B) termination
      by the Employee either for (i) Good Reason (as defined in Section 7(b) below)
      or
      (ii) without Good Reason; 

     

    (C) death
      or
      Total Disability of the Employee, or

     

    (D) non-concurrence
      in the automatic extension of the Term. 

     

    (a)
      Termination
      by the Board.

     

      (i)
        The Board may terminate the
        Employee’s employment at any time, but any termination by the Employer other
        than termination for Cause (as defined in Section 7(a)(iii) below) shall not
        prejudice the Employee’s right to receive compensation and other benefits under
        this Agreement, except as otherwise stated in this Agreement. In the event
        of a
        termination for Cause, the Employee shall have no right to receive payment,
        compensation or other benefits, except that the Employee’s entitlement to
        indemnification under Paragraph 13 of the Agreement, entitled “Indemnification”,
        is unaffected by any termination of employment except for a termination for
        Cause related to the claim with respect to which indemnification is sought.
        Where the Employer terminates the employment of the Employee other than for
        Cause, the Employer shall, after the Termination Date, continue to be subject
        to
        any obligations to the Employee under this Agreement and under any employee
        benefit plan in which the Employee is then a participant, except as otherwise
        provided in this Agreement. 

     

      (ii)
      In
      the event that the Employee’s employment ceases by reason of the Employer’s
      termination of the Employee’s employment during the Term other than for Cause,
      or if the Employee voluntarily resigns for a Good Reason, or as a result of
      the
      Employee’s death or Total Disability, or, if either
      party provides the other party with written notice of the party’s
      non-concurrence in the automatic extension of the Term, as set forth in Section
      2 of this Agreement, then (A) all unvested options, restricted stock and other
      equity (options, restricted stock and other equity are, collectively,
“Equity”)
      that
      has previously been granted to Employee shall vest on the Termination Date;
      any
      restrictions that had been placed on Equity shall lapse and the Equity shall
      be
      freely transferable; (B) the Employer shall, in lieu of the obligation to pay
      Employee compensation and other benefits under this Agreement, make severance
      payments to the Employee in an aggregate amount that is equal to the Employee's
      then current annual cash compensation consisting of Base Salary, Target Bonus
      and discretionary bonus, multiplied by a factor depending on the circumstances,
      as set forth below. Base Salary, Target Bonus and discretionary bonus, are
      collectively referred to as the “Aggregate
      Amount”.
      The
      Target Bonus shall be valued as if Employee had achieved 100% of his goals
      for
      the year in which the Termination Date occurs. The discretionary bonus shall
      be
      based on the amount of any discretionary bonus paid for the year preceding
      the
      year in which the Termination Date occurs. The severance payments shall not
      include the value of the Signing Bonus, or the value of the initial Stock Option
      Grant, or gains realized from the sale of restricted stock or from the sale
      of
      stock obtained through the exercise of stock options. The Aggregate Amount
      shall
      be multiplied by a factor of 1.5 (one point five) and the product shall be
      paid
      to Employee over a period of eighteen months (collectively, the "Severance
      Payments")
      beginning immediately following the Termination Date, except that if the Term
      expires because the Employee has provided the Employer with written notice
      of
      non-concurrence in the extension of the Term as set forth in Section 2, the
      Aggregate Amount shall be multiplied by a factor of 1 (one) and shall be paid
      to
      Employee over a period of eighteen months beginning immediately following the
      Termination Date. The Severance Payments shall be paid in equal monthly
      installments according to the Employer’s normal payroll practices then in
      effect. Except for the expiration of this Agreement as a result of the
      Employee’s non-concurrence in the extension of the Term, the Severance Payments
      under this Section 7(a)(ii) shall not be reduced by any direct or indirect
      compensation which the Employee may receive for other employment with another
      employer after the Termination Date. The Employee shall continue to receive
      health insurance benefits during any period which the Employee receives
      Severance Payments
      (unless
      comparable health care coverage becomes available to Employee from a new
      employer).
      The
      Employee shall thereafter be entitled to statutory benefit continuation rights
      in accordance with COBRA (or a state law equivalent), provided Employee makes
      the appropriate voluntary contribution payments and subject to applicable law
      and the requirements of the Employer’s health insurance plans then in effect.
The
      Employer shall have no obligation to make any contributions to any retirement
      plan applicable to the Employee after the Termination Date except as may be
      required by such applicable plan. The Employee shall be entitled to keep
      contributions made by the Employer to the retirement plan on the Employee’s
      behalf prior to the Termination Date which have vested or for which the Employee
      is otherwise eligible in accordance with the written terms of the plan documents
      governing such retirement plan. The Employer shall have no obligation to make
      the Severance Payments set forth in this Section unless the Employee fully
      complies with his obligations under this Agreement, including, but not limited
      to, his obligations under Sections 8 and 9 of this Agreement. 

     

    Notwithstanding
      anything stated herein to the contrary, and for purposes of clarity, should
      the
      Employer terminate the employment of the Employee for Cause, or should the
      Employee voluntarily terminate employment without Good Reason, the Employee
      shall not be entitled to receive Severance Payments.  

     

    (iii)
      References in this Agreement to “termination
      for Cause”
shall
      mean termination on account of acts or omissions of the Employee which
      constitute Cause as defined below. Any determination with respect to a
      termination for Cause shall require the approval of the Board of the Employer
      after the Employee has been given written notice of the facts and circumstances
      that may constitute Cause and the Employee and his counsel have had an
      opportunity to meet with the Board concerning the allegation of facts and
      circumstances that may constitute Cause. “Cause”
shall
      mean any of the following:

     

    (A) Employee’s
      conviction of a felony,

     

    (B) Employee’s
      theft from the Employer,

     

    (C) Employee’s
      breach of fiduciary duty involving personal profit,

     

    (D) sustained
      and continuous conduct by the Employee which adversely affects the reputation
      of
      the Employer,

     

      (E) Employee’s
      failure to comply with lawful directions of the Board that is not remedied
      within a reasonable period of time after receipt of written notice from the
      Board specifying such failure.

     

    Notwithstanding
      the foregoing, no “Cause” for termination shall be deemed
      to exist
      with respect to Employee’s act or failure to act as described in clauses (D) or
      (E) above, unless the Employer shall have given written notice to Employee
      setting forth the act or failure to act of Employee that gives rise to the
      “Cause” and, within a period of time of thirty days after receiving such notice,
      Employee shall not have cured the act or failure to act which gives rise to
      such
“Cause.”

     

    (b) Termination
      by the Employee.

     

      The
        Employee may terminate his employment under this Agreement prior to the end
        of
        the Term of this Agreement for (i) Good Reason, or (ii) as approved by the
        Board. In the event that the Employee terminates his employment without Good
        Reason, the Employee shall have no right to receive compensation or other
        benefits, including payment of legal fees and expenses incurred (with exception
        of paragraph 13), for any period after the Termination Date except as otherwise
        required by law.

     

    The
      Employee’s entitlement to indemnification under Paragraph 13 of the Agreement,
      entitled “Indemnification”, is unaffected by any termination of employment
      except for a termination for Cause related to the claim with respect to which
      indemnification is sought.   

     

    References
      in this Agreement to “Good
      Reason”
shall
      mean resignation on account of acts or omissions of the Employer which
      constitute Good Reason as defined below. Any
      voluntary resignation for Good Reason shall be communicated to the Employer
      by a
      Notice of Resignation for Good Reason. A “Notice
      of Resignation for Good Reason”
shall
      mean a written notice which: (i) sets forth the specific separation provision
      in
      this Agreement relied upon; (ii) to the extent applicable, sets forth in
      reasonable detail the facts and circumstances claimed to provide a basis for
      Employee’s voluntary resignation for Good Reason; and (iii) if the Date of
      Resignation for Good Reason (as defined below) is other than the date of receipt
      of such Notice, specifies the Date of Resignation for Good Reason. The Employer
      shall have thirty (30) days from the receipt of such Notice to cure the specific
      basis cited in the Notice of Resignation for Good Reason. The failure by
      Employee to set forth in the Notice of Resignation for Good Reason any fact
      or
      circumstance which contributes to a showing of Good Reason shall not constitute
      a waiver of any rights of Employee hereunder and shall not preclude Employee
      from asserting such fact or circumstance in enforcing Employee’s rights against
      the Employer. For this purpose, the Date of Resignation for Good Reason shall
      mean the date of receipt of the Notice of Resignation or any later date
      specified therein or as agreed between the Employer and the Employee.
“Good
      Reason”
shall
      mean any of the following:

     

    (A) any
      material diminution in Employee’s duties, title, authority or reporting line, or
      failure to reappoint or reelect Employee to the Board;

     

    (B) a
      reduction in or failure to pay compensation when due;

     

    (C) a
      Change
      in Control (as defined below);

     

    (D) the
      Employee’s benefits under any employee benefit or welfare plan are reduced to
      less (subject to Employer’s right to provide equivalent benefits in cash or
      otherwise in kind) than the benefits of 90% of the Employer’s employees under
      any employee benefit or welfare plan, or, unless such reduction is initiated
      by
      the Employee or approved by the Employee in his capacity as a member of the
      Board;

     

    (E) the
      Employee is reassigned, without his consent, to a principal work place which
      is
      more than 50 miles from either the Employer’s headquarters in Hudson, New
      Hampshire, or such new location is more than 50 miles from the Westchester
      County Airport, White Plains, New York 10604.

     

    (c) Death
      and Disability.

     

      The
        Employee’s employment under this Agreement may also be terminated by the
        Employer prior to the end of the Term of this Agreement in the event of the
        Employee’s death or upon the Employee becoming “Totally Disabled.” For purposes
        of this Agreement, “Totally
        Disabled” shall mean such situation where the Employee, because of
        his injury (the “Injury”) or sickness (the “Sickness”), is unable to perform the
        material duties of his regular occupation for six consecutive months in any
        twelve month period. In addition to the Severance Payments described in Section
        7(a)(ii), in the event of the termination of Employee’s employment as a result
        of his death, the Employee’s immediate family shall be receive continuation of
        health and medical benefits at the Employer’s expense for eighteen (18) months
        from the Termination Date.

     

    (d) The
      Employer shall have no obligation to make the payments set forth herein if
      the
      Employee is in material breach of the Employee’s obligations under this
      Agreement. As
      a
      condition to receiving the Severance Payments, the Employee or his Estate shall,
      as soon as practicable, execute a general release of claims in favor of the
      Employer, its current and former parents, subsidiaries, subdivisions, divisions,
      shareholders, Board, affiliated entities and persons, and the current and former
      directors, officers, employees and agents of the Employer, in a form reasonably
      acceptable to the Employee and the Employer which does not impose upon Employee
      any post-employment obligations in addition to those contained herein (the
      “Release”).
      

     

    8. Confidential
      Information and Non-Competition.

     

    (a) “Confidential
      Information”
shall
      mean trade secrets or confidential information relating to the Employer, its
      customers, affiliates and their respective businesses, including, but not
      limited to, the identity of the Employer’s customers; the entity of distributors
      and suppliers of the Employer; the identity of representatives responsible
      for
      entering into contracts with the Employer; specific customer, distributor and
      supplier needs and requirements; the details of contracts and proposals between
      the Employer and its customers, distributors and suppliers; selling and
      marketing strategies, prices, costs and profit margins; the names, addresses
      and
      other contact information of purchasing agents, vendors or other entities;
      purchasing techniques, methods, procedures and processes; manufacturing and
      production techniques, methods, procedures and processes; other techniques,
      methodologies and processes used by the Employer in the conduct of its business;
      techniques, methods, procedures, know-how, show-how, prototypes and technical
      specifications; computer data, software, software codes, computer models,
      research projects, data processing and other programs; production and
      manufacturing equipment and operating practices; information with respect to
      products and product formulae, designs, plans for future business, new business,
      products or other developments; new or innovative ideas, customer proposals,
      marketing plans and ideas, and future developments or strategies; information
      pertaining to research and development, acquisitions or divestitures, marketing
      and sales, cost cutting, revenue generation, or other matters concerning the
      Employer’s planning and strategy; and other nonpublic financial and other
      information of the Employer disclosed to or known by the Employee as a
      consequence of or through the Employee’s employment (or other service
      relationship) with the Employer (including information conceived, originated,
      discovered or developed by the Employee), which information is not generally
      known in the relevant trade or industry or public knowledge. The Employee
      acknowledges and agrees that the Confidential Information is not generally
      known
      or available to the public, but has been developed, compiled or acquired by
      the
      Employer at its great effort and expense. Confidential Information can be in
      any
      form: oral, written or machine readable, including electronic files.
      Confidential Information does not include any information or “know how” that
      Employee had prior to the date of this Agreement.

     

    (b) The
      Employee acknowledges and agrees that the Employer is engaged in a highly
      competitive business and that its competitive position depends upon its ability
      to maintain the confidentiality of the Confidential Information which was
      developed, compiled and acquired by the Employer at its great effort and
      expense. The Employee further acknowledges and agrees that any disclosure,
      divulging, revelation or use of any of the Confidential Information, other
      than
      in connection with the Employer’s business or as specifically authorized by the
      Employer, will be highly detrimental to the Employer, and that serious loss
      of
      business and goodwill and pecuniary damage may result therefrom. During the
      Employee’s employment with the Employer and thereafter, the Employee shall hold
      for the benefit of the Employer, and not for the Employee’s own benefit or
      disclosure to third parties, all Confidential Information relating to the
      Employer and its business, including all Confidential Information of customers
      of the Employer (i) obtained by the Employee during the Employee’s employment
      with the Employer and (ii) not otherwise public knowledge or generally known
      in
      the trade or industry. The Employee shall not, without the prior written consent
      of the Employer, unless compelled pursuant to the order of a court or other
      governmental or legal body having jurisdiction over such matter, communicate
      or
      divulge any such Confidential Information to anyone other than the Employer
      and
      those designated by it. In the event the Employee is compelled by order of
      a
      court or other governmental or legal body to communicate or divulge any such
      Confidential Information to anyone other than the Employer and those designated
      by it, the Employee shall promptly notify the Employer of any such order and
      the
      Employee shall cooperate fully with the Employer in protecting such information
      to the extent possible under applicable law and will only disclose that portion
      of the Confidential Information necessary to satisfy any such
      order.

     

    (c) Upon
      termination of the Employee’s employment with the Employer, or at any time the
      Employer requests, all equipment, property, documents, files, records, notes,
      memoranda, designs, reports, price lists, cost sheets, prototypes, blue prints,
      technical specifications, estimates, databases, home office equipment,
      automobiles, computer equipment, computer files, computer programs, plans,
      documents and all other property and Confidential Information of the Employer
      (including all copies in all forms in the Employee’s possession or control),
      whether prepared by the Employee solely or jointly with others, shall be left
      with or promptly returned to the Employer and shall at all times be the property
      of the Employer. 

     

    (d) The
      Employee acknowledges and agrees that competitive products and services shall
      be
      defined to mean non-photographic imaging, computer-to-plate, direct-to-press,
      thermal laser or chemistry-free printing plate technology products and services
      or any other additional products and services substantially similar to the
      products and services designed, conceived, marketed, distributed or developed
      by
      the Employer as may exist at the time of termination of the Employee’s
      employment (the “Restricted
      Activity”).
      This
      is a highly competitive business, and by virtue of the Employee’s position and
      responsibilities with the Employer, and the Employee’s access to Confidential
      Information, the Employee’s engaging in any business which is directly or
      indirectly competitive with the Restricted Activity will cause the Employer
      great and irreparable harm. During the period of employment as an officer and/or
      employee of the Employer, the Employee will devote his available business time
      and best efforts to promoting and advancing the business of the Employer. During
      the Term and for the lesser of the Severance Period or any period during which
      Employee is subject to post-employment restrictions (the “Restricted
      Period”),
      the
      Employee agrees that he will not, in any jurisdiction around the world in which
      the Employer conducts business, whether alone or as a partner, officer,
      director, consultant, agent, employee or stockholder of any Employer or other
      commercial enterprise, engage in any business or other commercial activity
      which
      is competitive with the Restricted Activity including related products and
      services being designed, conceived, marketed, distributed or developed by the
      Employer at the time of termination of such
      employment, unless written approval is obtained from the Employer’s
      Board.
      If the
      Employee is terminated for Cause or resigns without Good Reason, or if the
      Employee gives notice of non-concurrence in an extension pursuant to Section
      2,
      the Restricted Period shall end eighteen months from the Termination Date.
      If
      the Employee elects to resign for Good Reason as a result of a Change in
      Control, the Restricted Period shall end twelve months from the date of the
      Change in Control. If the Employee’s employment is terminated by the Employer
      without Cause, or if Employee resigns for a Good Reason (other than as a result
      of a Change in Control), the Restricted Period shall end six (6) months from
      the
      Termination Date. If the Employer gives notice of non-concurrence in an
      extension pursuant to Section 2, the Restricted Period shall end on the
      Termination Date.

     

    (e) The
      Employee acknowledges and agrees that during the course and solely as a result
      of the Employee’s employment with the Employer, the Employee has and will become
      aware of some, most or all of the customers of the Employer, their names and
      addresses, their representatives responsible for engaging the services of the
      Employer and their specific needs and requirements. The Employee further
      acknowledges and agrees that the loss of such customers will cause the Employer
      serious loss of business and will be detrimental to the Employer’s goodwill and
      will cause great and irreparable harm. During the period of the lesser of the
      Severance Period or the Restricted Period the Employee will not directly or
      indirectly either for himself or for any other person or commercial enterprise
      (1) divert or take away or attempt to divert or take away, any of the Employer’s
      customers or business in existence at the time of termination of such employment
      that the Employee had contact with, for whom the Employee performed services
      during his employment with the Employer and/or that were made known to the
      Employee by the Employer during his employment with the Employer; and/or (2)
      solicit or attempt to solicit, ask for, accept, or seek to do business with,
      for
      the purpose or effect of engaging in competition with the Employer, any of
      the
      Employer’s customers or business in existence at the time of termination of such
      employment with whom the Employee had contact, for whom the Employee performed
      services during his employment with the Employer and/or that were made known
      to
      the Employee by the Employer during his employment, except that this restriction
      shall not apply to customers or clients which Employee had contact with prior
      to
      the date of this Agreement. 

     

    (f) The
      Employee acknowledges and agrees that during the course and solely as a result
      of the Employee’s employment with the Employer, the Employee has and will become
      aware of some, most or all of the employees of the Employer, and has and will
      acquire knowledge of their qualifications, skills, abilities, salaries,
      commissions, benefits and other matters with respect to such employees not
      generally known to the public. The Employee further acknowledges and agrees
      that
      any solicitation, luring away or hiring of such employees of the Employer will
      cause serious loss of business and will be detrimental to the Employer’s
      goodwill and will cause great and irreparable harm. During the Term and for
      a
      period of the
      lesser of the Severance Period or the Restricted Period,
      the
      Employee will not directly or indirectly either for himself or for any other
      person or commercial enterprise (1) solicit or induce any employee to terminate
      his employment relationship with the Employer, and/or (2) recruit, attempt
      to
      recruit, hire, or attempt to hire any employee of the Employer other than on
      behalf of the Employer. 

     

    (g) The
      Employee hereby acknowledges and agrees that the type and periods of
      restrictions imposed in Sections 8(a) through 8(f) of this Agreement are fair
      and reasonable and are reasonably required for the protection of the Employer’s
      Confidential Information and the goodwill associated with the business of the
      Employer. Further, the Employee acknowledges and agrees that the restrictions
      imposed in Sections 8(a) through 8(f) will not prevent him from obtaining
      suitable employment after his employment with the Employer ceases or from
      earning a livelihood. The Employee hereby acknowledges, agrees and understands
      that he would not be entitled to the Severance Payments (as described in Section
      7(a)(ii)) except for his agreement to fulfill his obligations under this
      Agreement, including, but not limited to, his obligations under Sections 8(a)
      through 8(f) and Section 9 of this Agreement.

     

    9. Assignment
      of Inventions.
      The
      Employee expressly understands and agrees that any and all right or interest
      he
      may obtain in any designs, trade secrets, technical specifications and technical
      data, know-how and show-how, customer and vendor lists, marketing plans, pricing
      policies, inventions, concepts, ideas, works of authorship, documentation,
      formulae, data, designs, techniques, discoveries, improvements or intellectual
      property rights of any kind or any interest therein (whether or not patentable
      or registrable under copyright, trademark or similar statutes (including, but
      not limited to, the Semiconductor Chip Protection Act) or subject to analogous
      protection) that he, whether alone or jointly with others, authors, conceives,
      devises, develops, reduces to practice, or otherwise obtains during the
      Employee’s employment with the Employer, and that (i) relate to or arise out of
      his employment with the Employer; (ii) relate to the Employer’s present or
      planned business or any of the products or services being designed, conceived,
      developed, marketed, manufactured or distributed by the Employer or that may
      be
      used in relation therewith; (iii) result from the use of premises or personal
      property (whether tangible or intangible) owned, leased or contracted for or
      by
      the Employer; (iv) result from activities engaged in during the Employer’s time;
      and/or (v) result from use of Confidential Information of the Employer whether
      such use occurred prior to or during the Employee’s employment with the Employer
      (the “Inventions”), are and shall immediately become the sole and absolute
      property of the Employer and its assigns, as works made for hire or otherwise,
      subject to any rights his former employer may claim in such
      Inventions.

     

    The
      Employee hereby assigns to the Employer the sole and exclusive right to such
      Inventions, subject to any rights his former employer may claim in such
      Inventions. The Employee agrees that he will promptly disclose to the Employer
      any and all such Inventions, and that, upon request of the Employer, the
      Employee will execute and deliver any and all documents or instruments and
      take
      any other action which the Employer shall deem necessary to assign to and vest
      completely in the Employer, to perfect trademark, copyright and patent
      protection with respect to, or to otherwise protect the Employer’s trade secrets
      and proprietary interest in such Inventions. The Employer agrees to pay any
      and
      all copyright, trademark and patent fees and expenses or other costs incurred
      by
      the Employee for any assistance rendered to the Employer pursuant to this
      Section.

     

    In
      the
      event the Employer is unable, after reasonable effort, to secure the Employee’s
      signature on any letters, patent, copyright or other analogous protection
      relating to an Invention, the Employee hereby irrevocably designates and
      appoints the Employer and any of its officers as his agent and attorney-in-fact,
      to act for and on his behalf and stead to execute and file any such application
      or applications and to do all other lawfully permitted acts to further the
      prosecution and issuance of letters patent, copyright or other analogous
      protection thereon with the same legal force and effect as if executed by the
      Employee. The obligations in this Section shall continue beyond the termination
      of the Employee’s employment.

     

    10. Change
      in Control.  

     

    (a)
      (i)
      If during the Term of this Agreement there is a Change in Control of the
      Employer and the Employee exercises his right to resign for Good Reason, then
      the Employee shall be entitled to receive a lump sum cash payment as provided
      in
      Section 10(a)(ii) below (the “Additional
      Payment”)
      less
      any Severance Payments already received under Section 7(a)(ii). The Employer
      shall have no obligation to make the Additional Payment set forth in this
      Section unless the Employee complies with his obligations under this Agreement,
      including, but not limited to, his obligations under Sections 8 and 9 of this
      Agreement. The
      Employee agrees that following a Change in Control, he will, if requested by
      the
      Employer or the successor Employer, agree to remain employed by the successor
      Employer for up to six (6) months from the date of the Change in Control, in
      such capacity as is reasonably requested by the successor Employer (the
“Six
      Months Employment Continuation Period”).
      Compensation received from the successor Employer for such employment shall
      not
      be considered as mitigation or offset of any obligation of Employer to Employee
      under this Agreement. Any termination by the Employer of Employee’s employment,
      even if for Cause during the Six Months Employment Continuation Period, or
      for
      any act alleged to have occurred during the Six Months Employment Continuation
      Period, shall have no effect upon any of Employee’s Equity or any other benefit
      or obligation due to Employee from Employer. The Six Months Employment
      Continuation Period shall be counted as part of any Restricted Period.
      Employee’s compensation for the Six Months Employment Continuation Period shall
      be no less than his Base Salary, Target Bonus and discretionary bonus (if any)
      for the year immediately preceding the Change in Control, prorated for the
      period that Employee is actually employed under the Six Months Employee
      Continuation Period.

     

      The
      Employer shall also make the Additional Payment set forth in this Section in
      the
      event of the Employee’s death or upon Employee becoming “Totally Disabled” (as
      described in Section 7(a)(c)) within six (6) months of the date of a Change
      in
      Control.

    

    Unless
      payment may be made sooner without triggering a tax or penalty under Section
      409A of the Internal Revenue Code, any payment due under this section 10(a)(i)
      shall be made not later than 2-1/2 months following the end of the year in
      which
      occurs the later of the Change in Control or the first to occur of the
      Employee's termination of employment, death or becoming Totally Disabled;
      provided, however, that if the Change in Control is not a "change in control"
      within the meaning of Section 409A(a)(2)(A)(v) of the Code (as hereinafter
      defined), then payment shall be made at the first to occur of any event
      following a Change in Control that would permit distribution under Section
      409A(a)(2)(A) of the Code.

    

    (ii)
      Subject to Section 10(b)(iii) hereof, the Additional Payment shall be in an
      amount equal to 2.99 times the Employee’s average annual cash compensation (Base
      Salary, Target Bonus, discretionary bonus) paid to the Employee by the Employer.
      In
      addition, in the event of a Change in Control, all Equity that has been granted
      to the Employee shall immediately vest. In determining the Employee’s average
      annual cash compensation to arrive at the amount of the Additional Payment,
      the
      Target Bonus for the year in which the Change of Control occurs shall be valued
      as if Employee had achieved 100% of his goals for the year in which the Change
      in Control occurs and had been paid that Target Bonus without pro-ration in
      that
      year, and the discretionary bonus for the year in which the Change of Control
      occurs shall be valued at the amount of any discretionary bonus paid for the
      year preceding the year in which the Change in Control occurs and, at Employee’s
      option, treated as if a discretionary bonus had been paid without pro-ration
      in
      the year in which the Change of Control occurs. The Additional Payment shall
      not
      include the value of the Signing Bonus, or the value of the initial stock option
      grant or any form of deferred compensation, or gains realized from the sale
      of
      restricted stock or from the sale of stock obtained through the exercise of
      stock options. 

     

    (iii)
      To
      the extent that the payments and benefits provided under this Agreement and
      benefits provided to, or for the benefit of, the Employee, under any other
      Employer plan or agreement (such payments or benefits collectively referred
      to
      as the "Payments")
      would
      be subject to the excise tax (the "Excise
      Tax")
      imposed under Section 4999 of the Internal Revenue Code of 1986, as amended
      (the
      "Code"),
      the
      Employee may direct the Employer to reduce the Payments to the extent necessary
      so that no Payment to be made or benefit to be provided to the Employee shall
      be
      subject to the Excise Tax. If the Employee elects not to direct Employer to
      reduce the Payments, Employee shall be responsible for paying his own Excise
      Tax. 

     

    (b)
      A
“Change
      in Control”
of
      the
      Employer, for purposes of this Agreement, shall be deemed to have taken place
      (A) if as the result of, or in connection with, any cash tender or exchange
      offer, merger, or other business combination, sale of assets or contested
      election, or any combination of the foregoing transactions, the persons who
      were
      directors of the Employer within twelve months before such transaction shall
      cease to constitute a majority of the Board of the Employer or any successor
      entity; (B) the consummation of a merger or consolidation of the Employer,
      with
      or into another entity or any other corporate reorganization, if more than
      50%
      of the combined voting power of the continuing or surviving entity's issued
      shares or securities outstanding immediately after such merger, consolidation
      or
      other reorganization is owned by persons who were not shareholders of the
      Employer immediately prior to such merger, consolidation or other
      reorganization; (C) the sale, transfer or other disposition of all or
      substantially all of the Employer’s assets  

     

    (c) The
      Employer shall have no obligation to make the payments set forth herein if
      the
      Employee is in material breach of the Employee’s obligations under this
      Agreement. The Employee shall be obligated to execute a Release as a condition
      to receiving the payments set forth in this Section.

     

    11. Remedies.
      The
      Employee acknowledges and agrees that compliance with the covenants set forth
      in
      this Agreement is necessary to protect the business and goodwill of the Employer
      and that any breach of Sections 8 through 9 of this Agreement will result in
      irreparable and continuing harm to the Employer, for which money damages will
      not provide adequate relief. Accordingly, in the event of any breach or
      anticipatory breach of Sections 8 or 9 by the Employee, the Employer and the
      Employee agree that the Employer shall be entitled to the following particular
      forms of relief as a result of such breach, in addition to any remedies
      otherwise available to it at law or equity: injunctions, whether temporary,
      preliminary or permanent, enjoining or restraining such breach or anticipatory
      breach, and the Employee hereby consents to the issuance thereof forthwith
      and
      without bond by any court of competent jurisdiction.

     

    12. Expenses;
      Automobile Allowance.

     

    (a) The
      Employee is authorized to incur, during the Term of this Agreement, reasonable
      expenses for promoting the business of the Employer, including without
      limitation expenses for entertainment, travel and similar items. The Employer
      will promptly reimburse the Employee for all such expenses, upon the
      presentation by the Employee, from time to time, of an itemized account of
      such
      expenses.

     

    (b) During
      the Term of this Agreement, the Employer shall provide Employee with an
      automobile allowance of $1000 per month. 

    

    (c) 
      The
      parties acknowledge that the Employee shall be required to travel extensively
      in
      connection with the business of the Employer. Employee shall be reimbursed
      for
      such expenses upon production of reasonable documentation of such
      expenses.

    

    13.
      Indemnification.
      Except
      as otherwise set forth on this Agreement, the
      Employer shall indemnify and defend the Employee to the fullest extent permitted
      under Delaware law (including without limitation the Delaware Corporation law
      and the Employer’s Certificate of Incorporation) from and against any expenses,
      judgments, fines, penalties and amounts paid in settlement and actually and
      reasonably incurred by the Employee in connection with any proceeding in which
      the Employee was or is made party or was or is involved by reason of the fact
      the Employee was or is a director, officer or employed by the Employer, and
      shall be represented by Employer’s counsel. In
      the
      event of a real or threatened conflict of interest which makes it inadvisable
      or
      precludes Employer’s counsel from also representing Employee, Employer shall
      advance to Employee’s attorneys such reasonable fees, expenses of investigation
      and preparation and fees and disbursements of the Employee's accountants or
      other experts and such other funds as are reasonably required. Employee will
      cooperate with Employer in the defense or prosecution of any action to the
      extent permissible.

     

    14.
      Successors
      and Assigns; Assumption by Successors.
      All
      rights hereunder shall inure to the benefit of the parties hereto, their
      personal or legal representatives, heirs, successors or assigns. This Agreement
      may not be assigned or pledged by the Employee. The Employer will require any
      successor (whether direct or indirect, by purchase, assignment, merger,
      consolidation or otherwise) to all or substantially all of the business and/or
      assets of the Employer in any consensual transaction or in any Change in Control
      expressly to assume this Agreement and to agree to perform hereunder in the
      same
      manner and to the same extent that the Employer would be required to perform
      if
      no such succession had taken place. References herein to the Employer will
      be
      understood to refer to the successor or successors of the Employer,
      respectively.

     

    15. Other
      Contracts.
      The
      Employee shall not, during the Term have any other paid employment (other than
      with a subsidiary or affiliate of the Employer), except with the prior approval
      of the Board.

     

    16. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties with respect
      to
      the subject matter contained herein, and supersedes all prior employment
      agreements and understandings, whether written or oral, except for the
      Employer’s Code of Business Conduct and Ethics, Corporate Communications
      Disclosure Policies and Insider Trading Statement.
      No
      alteration or variation of the terms of this Agreement can be valid unless
      made
      in writing and signed by both parties, wherein specific reference is made to
      this Agreement. 

     

    17. Section
      Headings.
      The
      section headings used in this Agreement are included solely for convenience
      and
      shall not affect, or be used in connection with, the interpretation of this
      Agreement.

     

    18. Severability.
      Each
      promise and provision contained in this Agreement shall be enforceable
      independently of every other promise and provision in this Agreement. If any
      provision contained in this Agreement is determined to be partially or totally
      invalid or unenforceable in any respect, such determination shall not affect
      any
      other provision of this Agreement, but this Agreement shall be considered
      divisible as to such provision which shall become null and void, leaving the
      remainder of this Agreement in full force and effect. 

     

    19. Governing
      Law.
      This
      Agreement shall be governed by the laws of the United States where applicable
      and otherwise by the laws of the State of New Hampshire, without giving effect
      to the conflicts of laws principles thereof.

     

    20. Arbitration
      of Disputes and Jury Waivers.

     

    (a) The
      parties hereto agree to arbitrate any dispute, claim, or controversy
      ("claim")
      against each other arising out of the cessation of the Employee’s employment,
      any claim of unlawful discrimination or harassment that might or did arise
      during or as a result of the Employee’s employment which could have been brought
      before an appropriate government administrative agency or in an appropriate
      court, including but not limited to claims of age discrimination under the
      Age
      Discrimination in Employment Act of 1967, as amended, as well as any claim
      or
      controversy arising under this Agreement. The Arbitration shall be arbitrated
      by
      one arbitrator in accordance with the National Rules for the Resolution of
      Employment Disputes of the American Arbitration Association. The decision or
      award of the arbitration shall be final and binding upon the parties. Any
      arbitral award may be entered as a judgment or order in any court of competent
      jurisdiction. Any claims under Sections 8 and 9 of this Agreement shall not
      be
      subject to arbitration, but shall be subject to the remedies set forth in
      Section 11 hereof. 

    

    (b)
      If
      for any reason this arbitration provision is declared unenforceable, the
      Employee agrees to waive any right he may have to a jury trial with respect
      to
      any dispute or claim against the Employer relating to this Agreement, his
      employment, termination or any terms and conditions of employment, including,
      but not limited to claims of age discrimination under the Age Discrimination
      in
      Employment Act of 1967, as amended.

     

    21.
      Conflicting
      Agreement.
      Employee hereby represents and warrants to the Employer that his entering into
      this Agreement, and the obligations and duties undertaken by him hereunder,
      will
      not conflict with, constitute a breach of, or otherwise violate the terms of,
      any other employment or other agreement to which he is a party, except to the
      extent any such conflict, breach or violation under any such agreement has
      been
      disclosed to the Employer in advance of the signing of this Agreement. Employee
      has provided Employer with a copy of the Eastman Kodak Company Executive Special
      Employee’s Agreement as required by said agreement.

     

    22.
      Representation
      by the Employer.
      The
      Employer represents that (i) the execution of this Agreement and the provision
      of all benefits and grants provided herein have been duly authorized by the
      Employer, including, where necessary, by the Board and its Compensation
      Committee, (ii)
      to
      the best of its knowledge, the execution, delivery and performance of this
      Agreement does not violate any law, regulation, order, decree, agreement, plan
      or corporate governance document of the Employer, and (iii) upon the execution
      and delivery of this Agreement, it shall be the valid and binding obligation
      of
      the Employer enforceable in accordance with its terms.

     

    23.
      IRC
      Section 409A.
      If
      any
      provision of this Agreement contravenes Section 409A of the Internal Revenue
      Code or any regulations or guidance promulgated thereunder or could cause
      Employee to incur any tax, interest or penalties under Section 409A of the
      Code,
      the parties agree to modify such provision to (i) comply with, or avoid being
      subject to, Section 409A of the Code, or to avoid the incurrence of additional
      taxes, interest and penalties under Section 409A, and/or (ii) maintain, to
      the
      maximum extent practicable, the original intent and economic benefit to employee
      of the applicable provision without violating the provisions of Section 409A
      of
      the Code.

    

    24.
      Notice. Any
      Notice required to be given under this Agreement shall be to the Employer at
      its
      principal place of business and to the Employee at such address as he shall
      direct, and to their representatives:

     

    If
      to the
      Employer:

     

    Dr.
      Lawrence Howard 

    535
      Fifth
      Avenue, 14th
      floor
 

    New
      York,
      NY 10017 

    212-644-9797 

    lhoward@hudsonptr.com

     

    If
      to the
      Employee:

    McCarter
      & English, LLP 

    245
      Park
      Avenue 

    New
      York,
      NY 10167      

    Attn:
      Steven Eckhaus, Esq.        

    212
      609
      6800        

    seckhaus@mccarter.com

     

      [Signature
        page to follow.]

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

      IN
        WITNESS WHEREOF, the parties have knowingly and voluntarily executed this
        Agreement this 10th day of May, 2007.

     

    PRESSTEK,
      INC. (the “Employer”)

    

    

    By: 
      /s/ John W. Dreyer

      John
        W. Dreyer

    Chairman
      of the Board of Directors

    

    

    /s/
      Jeffrey Jacobson

    Jeffrey
      Jacobson

    (the
      “Employee”) 

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

      Appendix
        A

      May
        10,
        2007

    

    
      

      

      Presstek,
        Inc.

      55
        Executive Drive

      Hudson,
        NH 03051

      

      Attn:
        Jeffrey Cook, Chief Financial Officer

      

      Ladies
        and Gentlemen:

      

      The
        undersigned Subscriber (the “Subscriber”) hereby subscribes to the immediate
        acquisition of 300,000 shares of common stock, $0.01 par value (“Common Stock”),
        of Presstek,
        Inc.,
        a
        Delaware corporation (the “Company”). The shares are being issued to the
        Subscriber in consideration of the Subscriber’s agreement to act as the
        Company’s Chief Executive Officer pursuant to that certain employment agreement
        between the Company and the Subscriber executed contemporaneously with this
        Agreement and are made pursuant
        to NASDAQ Rule 4350(i)(1)(A)(iv) (the “NASDAQ Exception”) as an inducement
        material to the Subscriber entering into employment with the Company and
        are
        approved by the Company’s independent compensation committee. Following the
        issuance of these shares in reliance on this NASDAQ Exception, the Company
        will
        disclose in a press release the material terms of the grant, including the
        recipient of the grant and the number of shares involved.
        The
        shares, when issued, shall be fully vested, fully paid and non-assessable
        and
        properly issued as a matter of law. Such shares of Common Stock are referred
        to
        herein as the “Securities.”

      

      In
        connection with the issuance of the Securities to the Subscriber, the Subscriber
        acknowledges, warrants and represents to and agrees with the Company as
        follows:

      

      1. The
        Subscriber is acquiring the Securities for investment for his own account
        and
        without the intention of participating, directly or indirectly, in a
        distribution of the Securities, and not with a view to resale or any
        distribution of the Securities, or any portion thereof.

      

      2. The
        Subscriber has such knowledge and experience in financial and business matters
        that he is capable of evaluating the merits and risks of this investment.
        The
        Subscriber has consulted with his own professional representatives as he
        has
        considered appropriate to assist in evaluating the merits and risks of this
        investment. The Subscriber has carefully reviewed all of the Company’s filings
        with the Securities and Exchange Commission. The Subscriber has had access
        to
        and an opportunity to question the officers of the Company, or persons acting
        on
        their behalf, with respect to publicly available material information about
        the
        Company, and, in connection with the evaluation of this investment, has,
        to the
        best of his knowledge, received all information and data with respect to
        the
        Company that the Subscriber has requested and which is necessary to enable
        the
        Subscriber to make an informed decision regarding the purchase of the
        Securities. The Subscriber is acquiring the Securities based solely upon
        his
        independent examination and judgment as to the prospects of the
        Company.

      

      3. The
        Securities were not offered to the Subscriber by means of publicly disseminated
        advertisements or sales literature.

      

      4. The
        Subscriber acknowledges that an investment in the Securities is speculative
        and
        involves significant risk and the Subscriber may have to continue to bear
        the
        economic risk of the investment in the Securities for an indefinite
        period.

      

      5. The
        Subscriber acknowledges that the Securities are being sold to the Subscriber
        without registration under any state or federal law requiring the registration
        of securities for sale, and accordingly will constitute “restricted securities”
as defined in Rule 144 of the U.S. Securities and Exchange Commission.
        Consequently, the transferability of the Securities is restricted by applicable
        United States Federal and state securities laws.

      

      6. In
        consideration of the acceptance of this subscription, the Subscriber agrees
        that
        the Securities will not be offered for sale, sold or transferred by the
        Subscriber other than pursuant to (i) an effective registration under the
        Securities Act of 1933, as amended (“the Act”), an exemption available under the
        Act or a transaction that is otherwise in compliance with the Act; and (ii)
        an
        effective registration under the securities law of any state or other
        jurisdiction applicable to the transaction, an exemption available under
        such
        laws, or a transaction that is otherwise in compliance with such
        laws.

      

      7. The
        Subscriber understands that no U.S. federal or state agency has passed upon
        the
        offering of the Securities or has made any finding or determination as to
        the
        fairness of any investment in the Securities.

      

      8. The
        Subscriber agrees not to disclose or use any information provided to the
        Subscriber by the Company or any of its agents in connection with the purchase
        of the Securities, except for the purpose of evaluating an investment in
        the
        Securities.

      

      9. The
        residence address of the Subscriber is as set forth below.

      

      10. The
        Subscriber is an “accredited investor” as defined in Appendix A-1
        hereto

      

      11. The
        Subscriber agrees to indemnify and hold harmless the Company and its officers,
        directors, employees and agents from and against any and all costs, liabilities
        and expenses (including attorneys’ fees) arising out of or related in any way to
        any breach of any representation or warranty contained herein. The Company
        agrees to indemnify and hold harmless the Subscriber from and against any
        and
        all costs, liabilities and expenses (including attorneys’ fees) arising out of
        or related in any way to any breach of any representation or warranty contained
        herein.

      

      

      12. The
        Company has the right, in its sole discretion, to accept or reject this
        subscription.

      

      

      
        	
                ACCEPTANCE
                  OF SUBSCRIPTION

              	
                SUBSCRIBER

              
	 	 
	
                Presstek,
                  Inc.

              	
                _/s/
                  Jeffrey Jacobson_______

              
	 	
                Name:
                  Jeffrey Jacobson

              
	 	 
	
                By: /s/
                  Jeffrey Cook      

              	
                Address:

              
	
                Jeffrey
                  Cook, Chief Financial Officer 

              	 
	 	
                _______________________________

              
	 	
                _______________________________

              
	
                Dated:
                  May 10, 2007

              	
                __________________________

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      APPENDIX
        A-1

      

      An
        “Accredited Investor” within the meaning of Regulation D under the Securities
        Act of 1933 includes the following:

      

      Organizations

      

      (1) A
        bank as
        defined in section 3(a)(2) of the Act, or any savings and loan association
        or
        other institution as defined in section 3(a)(5)(A) of the Act, whether acting
        in
        its individual or fiduciary capacity; a broker or dealer registered pursuant
        to
        section 15 of the Securities Exchange Act of 1934; insurance company as defined
        in section 2(13) of the Act; an investment company registered under the
        Investment Company Act of 1940 or a business development company as defined
        in
        section 2(a)(48) of that act; a Small Business Investment Company licensed
        by
        the U.S. Small Business Administration under section 301(c) or (d) of the
        Small
        Business Investment Act of 1958; an employee benefit plan within the meaning
        of
        Title I of the Employee Retirement Income Security Act of 1974, if the
        investment decision is made by a plan fiduciary, as defined in section 3(21)
        of
        such act, which is either a bank, savings and loan association, insurance
        company, or registered investment adviser, or if the employee benefit plan
        has
        total assets in excess of $5,000,000 or, if a self-directed plan, with
        investment decisions made solely by persons that are accredited
        investors.

      

      (2) A
        private
        business development company as defined in Section 202(a)(22) of the Investment
        Advisers Act of 1940.

      

      (3) A
        trust
        (i) with total assets in excess of $5,000,000, (ii) not formed for the specific
        purpose of acquiring the Securities, (iii) whose purchase is directed by
        a
        person who, either alone or with his purchaser representative, has such
        knowledge and experience in financial and business matters that he is capable
        of
        evaluating the merits and risks of the proposed investment.

      

      (4) A
        corporation, business trust, partnership, or an organization described in
        section 501(c)(3) of the Internal Revenue Code, which was not formed for
        the
        specific purpose of acquiring the Securities, and which has total assets
        in
        excess of $5,000,000.

      

      (5) An
        entity, all of whose equity owners are “accredited investors”, as defined
        herein.

      

      Individuals

      

      

      (6) Individuals
        with income from all sources for each of the last two full calendar years
        whose
        reasonably expected income for this calendar year exceeds either
        of:

      (i) $200,000
        individual income; or

      (ii) $300,000
        joint income with spouse.

      

      NOTE: Your
        "income" for a particular year may be calculated by adding to your adjusted
        gross income as calculated for Federal income tax purposes any deduction
        for
        long term capital gains, any deduction for depletion allowance, any exclusion
        for tax exempt interest and any losses of a partnership allocated to you
        as a
        partner.

      

      (7) Individuals
        with net worth as of the date hereof (individually or
        jointly
        with your spouse), including the value of home, furnishings, and automobiles,
        in
        excess of $1,000,000.

      

      (8) Directors,
        executive officers or general partners of the Issuer.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]