Document:

Exhibit
10.21

 

[FORM OF
WAIVER OF RIGHTS UNDER COMPANY’S 1987 STOCK OPTION PLAN

AND 1994 DIRECTOR STOCK OPTION PLAN]

 

January       ,
2006

 

Mothers Work, Inc.

456 North Fifth Street

Philadelphia, PA  19123

Attn:  Edward M. Krell, Executive Vice

President and Chief Financial Officer

 

Dear Ed:

 

As you know, I
presently hold stock options issued by Mothers Work, Inc. (the “Company”)
under its 1987 Stock Option Plan (whether as originally in effect or as
subsequently amended and/or restated) and/or its 1994 Director Stock Option
Plan (each, a “Plan,” and collectively, the “Plans”).  I understand that Section 15 of each
Plan provides that, in connection with certain corporate transactions, I may be
entitled to receive cash in exchange for my unexercised stock options.  However, I also understand that, due to
recent changes in accounting principles, this provision may create adverse
accounting consequences for the Company.

 

In light of my
financial interests in the Company and in consideration of the Company’s agreement
to exercise reasonable efforts to obtain similar commitments from other
optionholders, I am making the following waiver and agreement.  With respect to stock options granted to me
under the Plans (whether granted previously or in the future) and intending to
be legally bound: (i) I hereby waive the automatic application of the
cashout provisions of Section 15 of each Plan, and (ii) agree that
the cashout provisions of Section 15 of each Plan will therefore only
apply to the extent determined by the Board (or by the committee of the Board
authorized to administer the plan on behalf of the Board) in its
discretion.  This waiver does not affect
my other rights under the Plan, including any right to accelerated vesting upon
a Change in Control or my ability to exercise vested stock options granted to
me under the Plans.

 

I acknowledge
that I have signed this letter knowingly and voluntarily and that the Company
will rely on the waiver and agreement contained in this letter.

 

Sincerely,

 

 

[Optionee
Name]Exhibit
10.22

 

[FORM OF
WAIVER OF RIGHTS UNDER COMPANY’S 1987 STOCK OPTION PLAN]

 

January       ,
2006

 

Mothers Work, Inc.

456 North Fifth Street

Philadelphia, PA  19123

Attn:  [Edward M. Krell, Executive Vice

President and Chief Financial Officer]

[Craig Swartz, General Counsel]

 

Dear [Ed][Craig]:

 

As you know, I
presently hold stock options issued by Mothers Work, Inc. (the “Company”)
under its 1987 Stock Option Plan (whether as originally in effect or as
subsequently amended and/or restated, the “Plan”).  I understand that Section 15(c) of
the Plan provides that, in connection with certain corporate transactions, I
may be entitled to receive cash in exchange for my unexercised stock
options.  However, I also understand
that, due to recent changes in accounting principles, this provision may create
adverse accounting consequences for the Company.

 

In light of my
monetary interest in the Company and in consideration of the Company’s
agreement to exercise reasonable efforts to obtain similar commitments from other
option holders, I am making the following waiver and agreement.  With respect to stock options granted to me
under the Plan (whether granted previously or in the future) and intending to
be legally bound: (i) I hereby waive the automatic application of Section 15(c) of
the Plan to those options, and (ii) agree that Section 15(c) of
the Plan will therefore only apply to those options to the extent determined by
the Board (or by the committee of the Board authorized to administer the plan
on behalf of the Board) in its discretion. 
Except for this waiver of the automatic application of Section 15(c) of
the Plan to my stock options, I am not waiving any of my rights under the Plan,
including my ability to exercise vested stock options granted to me under the
Plan.  [You have also indicated to me
that Dan Matthias, Rebecca Matthias and Ed Krell personally have already
executed agreements waiving the automatic application of Section 15(c) of
the Plan with respect to stock options granted to each of them under the Plan.]

 

I acknowledge
that I have signed this letter knowingly and voluntarily and that the Company
will rely on the waiver and agreement contained in this letter.

 

Sincerely,

 

 

[Optionee
Name]Exhibit 10.1

 

SECOND AMENDMENT

 

to

 

the Collaboration, License and Supply Agreement,
dated July 6, 2004

 

by and between

 

Acusphere Inc. (“Acusphere”)

 

and

 

Nycomed Danmark ApS (“Nycomed”)

 

This
Second Amendment (the “Second Amendment”), effective as of 9th
February, 2006, is entered into by and between Acusphere and Nycomed (the “Parties”).

 

WHEREAS, the Parties
are parties to a Collaboration, License and Supply Agreement, dated July 6,
2004, as amended by the First Amendment to such agreement dated as of October 15,
2005 (as so amended, the “Agreement”);
and

 

WHEREAS, in order to
accelerate qualification of Acusphere’s manufacturing facility under applicable
governmental regulations, the Parties have agreed that Nycomed will prepay to
Acusphere certain amounts otherwise payable upon the attainment of certain
milestones set forth in the Agreement, on the terms and conditions set forth
herein;

 

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties agree as follows:

 

1.               Beginning on 
February 9th, 2006,  Nycomed
will pay Acusphere an amount not to exceed $370,000 per month for purposes of
supporting Acusphere’s qualification of its commercial manufacturing facility
in Tewksbury, Massachusetts under applicable governmental regulations.  These payments will be credited against the
current balance of the existing two million dollar milestone due upon receipt
of the first acceptance for filing of an MAA for the Product in any Primary
Jurisdiction as referenced in Section 4.03(a) of the Agreement dated July 6,
2004 (the “MAA Filing Related Milestone”). It is acknowledged that this MAA
Filing Related Milestone has been previously reduced by $150,000 by an
amendment between the parties dated October 15, 2005.

 

2.               The Parties agree that the aggregate of these
monthly payments will not exceed $1.85 MM and that upon receipt of cumulative
payments hereunder of $1.85 MM; the MAA Filing Related Milestone will be
considered paid in full and no additional consideration will be forthcoming
from Nycomed to Acusphere for achievement of this milestone. To the extent that
the cumulative payments hereunder are less than $1.85 MM, the MAA Filing
Related Milestone shall be reduced by the amount paid hereunder.

 

3.               The amount paid on a monthly basis by Nycomed
to Acusphere shall not exceed costs incurred by Acusphere for qualification of
its commercial manufacturing facility. 
Acusphere agrees to use all payments hereunder solely for the purpose of
qualification activities at the Acusphere manufacturing facility at Tewksbury,
Mass. and shall supply copies of third-party invoices from such qualification
activities in support of each Acusphere invoice presented to Nycomed in support
of these activities.

 

 

4.               Acusphere agrees that Nycomed shall deduct
from the six million dollar milestone due to Acusphere upon First Commercial
Sale of the Product in any Jurisdiction, as described in Section 4.03(b) of
the Agreement dated July 6, 2004, an amount equal to an amount calculated
as interest on the monthly payments made under paragraph 1 above, using the
then effective per annum Prime Interest Rate, as published in the Wall Street
Journal on the date of each such payment, applied to the timeframe beginning
with the date upon which payments hereunder are made by Nycomed to Acusphere
and ending on the date of achievement of the MAA Filing Related Milestone.

 

5.               Also in consideration of Nycomed’s agreement
to pay an amount not to exceed $370,000 on a monthly basis as set forth herein,
Acusphere agrees to provide Nycomed with monthly progress reports, specifically
covering the following matters:

 

•                  Commissioning
and validation of the Tewksbury facility

•                  Process
implementation at Tewksbury, including stability update

•                  Clinical
phase III studies (AI-700-32 and AI-700-33)

 

The reports will be in the form of telephone
conferences, unless Nycomed otherwise requests short written reports.

 

In the event critical issues or major concerns are
raised by Nycomed,  Acusphere agrees to
hold physical meetings if requested by Nycomed. 
In any event Acusphere agrees to reasonably consider and to use
commercially reasonable efforts to incorporate Nycomed’s recommendations into
solving or otherwise handling such critical issues.

 

6.               Except as otherwise set forth herein, all of
the terms and conditions of the Agreement shall remain in full force and effect
between the Parties.

 

IN
WITNESS WHEREOF, the
Parties hereto have caused this First Amendment to be executed in duplicate by
their duly authorized officers as of the date first above stated.

 

 

	
  ACUSPHERE,
  INC.,

  	
  NYCOMED
  DANMARK ApS

  
	
  a Delaware
  corporation

  	
  a Danish
  corporation

  
	
   

  	
   

  
	
  By:

  	
    /s/ Sherri C. Oberg

  	
   

  	
   

  
	
  Name:

  	
  Sherri C. Oberg

  	
  By:

  	
  /s/ Hakan
  Bjorkland

  	
   

  
	
  Title:

  	
  President and
  Chief Executive Officer

  	
  Name:

  	
  Håkan Björkland

  
	
   

  	
  Title:

  	
  Chief Executive
  Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bent Kjaersgaard

  	
   

  
	
   

  	
  Name:

  	
  Bent Kjærsgaard

  
	
   

  	
  Title:

  	
  Senior Vice PresidentExhibit 10.1

 

EMPLOYMENT
AGREEMENT

 

This EMPLOYMENT AGREEMENT
(the “Agreement”), dated effective as of February 13, 2006,
is entered into by and between CONSOLIDATED GRAPHICS, INC., a Texas corporation
having its principal place of business in Houston, Harris County, Texas (“CGX”), and JOE R. DAVIS (the “Executive”); other capitalized
terms used in this Agreement are defined and shall have the meanings set forth
in Section 17 or elsewhere herein.

 

W I
T N E S S E T H:

 

WHEREAS,
Executive is to be employed as Chief Executive Officer of CGX;

 

WHEREAS,
in connection with his employment, Executive will be provided by CGX with
specialized training and given access to confidential information;

 

WHEREAS,
it is the desire of the Board of Directors of CGX (the “Board”)
to engage Executive as an executive officer of CGX and its subsidiaries
pursuant to the terms of this Agreement; and

 

WHEREAS,
Executive is willing to commit himself to serve as Chief Executive Officer of
CGX on the terms herein provided.

 

NOW,
THEREFORE, in consideration of the premises,
representations and mutual covenants hereinafter set forth, the parties hereby
covenant and agree as follows:

 

1.             Employment.  CGX hereby employs Executive, and Executive
hereby accepts employment with CGX, on the terms and conditions set forth in
this Agreement.

 

2.             Employment Period.  The term of Executive’s employment (the “Employment Period”) pursuant to the
terms of this Agreement shall commence upon the Effective Date and shall
continue until March 31, 2011, unless earlier terminated in accordance
with Section 15(a) below.

 

3.             Duties.  Executive shall (i) serve under the
direction of the Board as Chief Executive Officer of CGX, (ii) have all
the rights, powers and duties associated with his positions and (iii) faithfully,
to the best of Executive’s ability, perform the duties and other reasonably
related services assigned to Executive by the Board from time to time (the “Duties”).  Executive shall be subject to, and shall
comply with, CGX insider trading policies (a copy of which has been delivered
to Executive) and the other policies of CGX in effect from time to time
(collectively, the “CGX Policies”); provided, however, that to the extent such CGX Policies may
contradict the express provisions of this Agreement, the provisions of this
Agreement shall govern.  Executive shall
devote his full business time, efforts and attention to the business of CGX
during the Employment Period consistent with past practice and, without the prior
written consent of the Board, Executive shall not during the Employment Period
render any services of a business, commercial or professional nature to any
person or organization other than CGX and the Affiliates or be engaged in any
other business activity, other than those activities described in Section 12
below.  Executive represents and warrants
that Executive is not a party to or bound by any agreement or contract or
subject to any restrictions, including without limitation in

 

 

connection with any previous
employment, which might prevent Executive from entering into and performing
Executive’s obligations under this Agreement.

 

4.             Compensation.  During the Employment Period, Executive shall
be compensated for Executive’s services as follows:

 

(a)           Executive
shall be paid a base monthly salary of $62,500.00, subject to any and all
customary payroll deductions, including deductions for the Federal Insurance
Contributions Act and other federal, state and local taxes.

 

(b)           Except to
the extent such policies may contradict the express provisions of this
Agreement, in which case the provisions of this Agreement shall govern,
Executive shall be eligible to receive (i) fringe benefits on the same
basis as other management employees of CGX pursuant to CGX Policies in effect
from time to time, including holiday time, and (ii) such vacation time as
Executive may determine in his discretion; provided, however, that such
vacation time shall not unreasonably interfere with the execution by Executive
of his Duties hereunder and Executive shall neither accumulate vacation time
nor be entitled to carryover into subsequent periods or be paid any
compensation in addition to his stated salary for any vacation time planned but
not taken, regardless of the reason therefor; and provided,
further,  that the Board
in its sole discretion shall have the right at any time to implement vacation
guidelines applicable to the Executive not less than generally applicable
Company policy then in effect.

 

(c)           Executive
shall be eligible to participate, to the extent that Executive meets all
eligibility requirements of general application, in each of the employee
benefit plans maintained by CGX or in which employees of CGX generally are
eligible to participate, including as of the date hereof, group
hospitalization, medical, dental, and short and long term disability and life
plans.

 

5.             Bonus.  In addition to the other compensation set
forth herein, Executive shall be entitled to receive an annual cash bonus
payment in an amount not to exceed $750,000, to be determined (a) for fiscal
years ending in 2006 and 2007 by multiplying the percentage increase in diluted
earnings per share by three and multiplying the result by $750,000, (b) for
fiscal years ending in 2008, 2009, 2010 and 2011, in accordance with the
formula set forth in clause (a), unless otherwise determined by the
Compensation Committee of the Board.  If
Executive is employed on the last day of a fiscal year, the bonus for such
fiscal year shall be deemed earned as of such date and payable whether or not
employment continues beyond such date. 
The bonus shall be paid on or before June 15 following the fiscal
year in which such bonus was earned.  For
purposes of this Section 5, “diluted earnings per share” shall be determined
before extraordinary items and cumulative effect of changes in accounting
principles, in accordance with generally accepted accounting principles and as
audited by a nationally recognized accounting firm.

 

6.             Stock Incentives.  In addition to the other compensation set
forth herein, Executive shall receive:

 

(a)           Effective
as of April 1, 2006, a restricted stock grant units (“RS Units”) covering that
number of shares of CGX common stock being the greater of (i) 12,500
shares or (ii) the number of shares obtained by dividing $500,000 by the
closing price per share of CGX common stock as reported on the New York Stock
Exchange (or if not

 

 

reported on the New York Stock Exchange, such other national exchange
or quotation system on which CGX common stock is then quoted) on March 31,
2006;

 

(b)           Effective
as of each of April 1, 2007, 2008, 2009 and 2010, RS Units covering that
number of shares of CGX common stock being the greater of (i) 12,500
shares or (ii) the number of shares obtained by dividing a number as
determined by the Compensation Committee, but not less than $500,000, by the
closing price per share of CGX common stock as reported on the New York Stock
Exchange (or if not reported on the New York Stock Exchange, such other
national exchange or quotation system on which CGX common stock is then quoted)
on the last trading day immediately preceding such effective date; and

 

(c)           Effective
as of the Effective Date, options to purchase 300,000 shares of CGX common
stock at an exercise price equal to the closing price per share of CGX common
stock as reported on the New York Stock Exchange (or if not reported on the New
York Stock Exchange, such other national exchange or quotation system on which
CGX common stock is then quoted) on the day immediately preceding the Effective
Date.

 

Such RS Units shall (i) vest
on the annual anniversary of the date of grant in equal increments from the
date of grant through the expiration date of this Agreement but in no case over
a period of less than three years and (ii) shall otherwise be granted in
accordance with and subject to the terms set forth on the form of CGX
Restricted Stock Grant Unit approved by the Compensation Committee (the “Committee”) pursuant to the
Consolidated Graphics, Inc. Long-Term Incentive Plan, as amended (the “LTIP”).  Such options shall (i) vest immediately,
(ii) expire on the earlier of (1) the 180th day following
termination of employment or (2) the tenth anniversary of the Effective
Date, (iii) be subject to the restriction that Executive shall not sell
the underlying shares with respect to which the options have been exercised,
which restriction shall be removed, without regard to the date on which such
options are exercised, in 20% annual increments beginning on March 31,
2007 and continuing thereafter through the expiration date of this Agreement
and (iv) otherwise be granted in accordance with and subject to the terms
of the form of CGX Stock Option Agreement approved by the Committee pursuant to
the LTIP.  CGX shall further take such
action as may be necessary to amend the agreements with respect to all stock
options for shares of CGX common stock held by Executive as of the Effective
Date to provide that such options shall vest effective as of the Effective
Date, subject to the restriction that Executive shall not sell the underlying
shares with respect to which the options have been exercised, which restriction
shall be removed, without regard to the date on which such options are
exercised, whether in whole or in part, with respect to each discrete tranche,
in 20% annual increments beginning on March 31, 2007 and continuing
thereafter through the expiration date of this Agreement.

 

7.             Executive Expenses.  During the Employment Period, Executive shall
be entitled to be reimbursed for reasonable normal business expenses directly
incurred in the performance of the Duties hereunder and in accordance with CGX
Policies in effect from time to time.

 

8.             No Competing Business.  In consideration for the benefits received by
Executive pursuant to this Agreement, during the Noncompetition Period, Executive
shall not, except as permitted by Section 12 of this Agreement, directly or
indirectly own, manage, operate, control, invest or acquire an interest in, or
otherwise engage or participate (whether as a proprietor,

 

 

partner, employee, stockholder,
member, director, officer, executive, joint venturer, investor, consultant,
agent, sales representative, broker or other participant) in any Competitive
Business operating in or soliciting business from CGX’s Market, without regard
to (a) whether the Competitive Business has its
office or other business facilities within CGX’s Market, (b) whether
any of the activities of Executive referred to above occur or are performed
within CGX’s Market or (c) whether Executive
resides, or reports to an office, within CGX’s Market.

 

9.             No Interference with the Business.  In consideration for the benefits
received by Executive pursuant to this Agreement, during the Noncompetition
Period, Executive shall not:

 

(a)           directly
or indirectly solicit, induce or intentionally influence any third party sales
representative, agent, supplier, lender, lessor or any other person which has a
business relationship with CGX and/or any Affiliate or which had on the date of
this Agreement a business relationship with CGX and/or any Affiliate to
discontinue, reduce the extent of, discourage the development of or otherwise
harm such relationship with CGX and/or any Affiliate;

 

(b)           directly
or indirectly attempt to induce any known customer to terminate any contract or
otherwise divert from CGX and/or any Affiliate any trade or business being
conducted by any such customer with CGX and/or any Affiliate or directly or
indirectly attempt to solicit, induce or intentionally influence any
prospective or past customer of CGX and/or any Affiliate to discontinue, reduce
the extent of, or not conduct business with CGX and/or any Affiliate;

 

(c)           directly
or indirectly recruit, solicit, induce or influence any executive, employee or
sales agent of CGX and/or any Affiliate to discontinue such sales, employment or
agency relationship with CGX and/or any such Affiliate;

 

(d)           employ,
seek to employ or cause any other person or entity to employ or seek to employ
as a sales representative or Executive any person who is then (or was at any
time since the Effective Date) employed by CGX and/or any of the Affiliates; or

 

(e)           directly
or indirectly denigrate or in any manner undertake to discredit CGX, any
Affiliate or any successor thereof or any person, operation or entity
associated with CGX or any Affiliate.

 

10.           No Disclosure of Confidential Information.  Executive
shall not directly or indirectly knowingly disclose to anyone or use or
otherwise exploit for Executive’s own benefit or for the benefit of anyone
other than CGX and/or any of the Affiliates any Confidential Information.

 

11.           Consideration for Restrictions.  Executive acknowledges that the
restrictions imposed under Sections 3, 8, 9 and 10 are supported by the
consideration to be received by Executive pursuant to the terms of this
Agreement.

 

12.           Permitted Activities.  The restrictions set forth in Sections 3,
8 and 9 of this Agreement shall not apply to Permitted Activities (as defined in
Section 17 below).

 

13.           Reduction of Restrictions by Court Action.  If the
length of time, type of activity, geographic area or other restrictions set
forth in the restrictions of Sections 3, 8, 9 or 10 are

 

 

deemed unreasonable in any court
proceeding, the parties hereto agree that the court may reduce such
restrictions to ones it deems reasonable to protect the substantial investment
of CGX and the Affiliates in their businesses and the goodwill attached
thereto.

 

14.           Remedies.  Executive understands that CGX and the
Affiliates will not have an adequate remedy at law for the breach or threatened
breach by Executive of any one or more of the covenants set forth in this
Agreement and agrees that in the event of any such breach or threatened breach,
CGX or any Affiliate may, in addition to the other remedies which may be
available to it, file a suit in equity to enjoin Executive from the breach or
threatened breach of such covenants.  In
the event either party commences legal action to enforce its or his rights
under this Agreement, the prevailing party in such action shall be entitled to
recover all of the costs and expenses in connection therewith, including
reasonable attorney’s fees.

 

15.           Termination.

 

(a)           The “Termination Date” shall mean the
date in which the first of the following occur:

 

(i)            March 31,
2011;

 

(ii)           Executive’s
death;

 

(iii)          the
Disability (as defined below) of Executive;

 

(iv)          termination
by CGX of Executive for Cause (as defined below);

 

(v)           termination
by CGX of Executive without Cause;

 

(vi)          the
resignation of Executive for any reason other than Good Reason (as defined
below), which shall take effect immediately upon CGX’s receipt of such
resignation,

 

(vii)         the
resignation of Executive for Good Reason, which shall take effect immediately
upon CGX’s receipt of such resignation; or

 

(viii)        a
Change in Control (as defined in the Change in Control Agreement).

 

(each of
clauses (i), (ii), (iii), (iv), (v), (vi), (vii) and (viii) are
referred to herein as a “Termination”).

 

(b)           If a
Termination occurs pursuant to clause (ii), (iii), (v) or (vii), then
CGX shall (i) deliver or provide to Executive or Executive’s estate (1) within
five days following the Termination Date, in a lump-sum payment, Executive’s
base salary for the period through the expiration of this Agreement, (2) no
later than the first June 15 to occur after the Termination Date, the
bonus to which Executive would be entitled pursuant to Section 5 at the
end of the fiscal year in which the Termination occurred and (3) if
Executive so elects, COBRA benefits, provided, however, that
Executive shall be responsible for the costs thereof, and (ii) take such
action as may be required to (1) accelerate vesting of any then unvested
RS Units provided that Executive is Eligible For

 

 

Retirement (as defined below); (2) issue shares of the Company’s
common stock pursuant to all vested RS Units; and (3) remove all
restrictions imposed in accordance with Section 6 on the sale of shares of
common stock underlying the options for shares of CGX common stock held by
Executive, whether such options have been exercised before such Termination
Date or are subsequently exercised.

 

(c)           If a
Termination occurs pursuant to clause (iv) or (vi), then CGX shall
deliver to Executive (i) Executive’s base salary through the Termination
Date to the extent not already paid and (ii) any other amounts earned,
accrued or owing as of such Termination Date, but not yet paid by CGX to
Executive.  In addition, (i) all
restrictions imposed in accordance with Section 6 on shares of CGX common
stock underlying options held by Executive shall cease to be removed from and
as of the Termination Date until March 31, 2011, at which time such
restrictions shall be removed; (ii) vesting of any then unvested RS Units
shall be accelerated provided that Executive is Eligible For Retirement; and (iii) the
Company shall issue shares of its common stock pursuant to all vested RS Units
(the “Restricted Shares”) provided however that a restriction on the sale by
the Executive of the Restricted Shares shall be in place until March 31,
2011.

 

(d)           If a
Termination occurs pursuant to clause (viii), CGX shall comply with the
terms of the Change in Control Agreement.

 

(e)           Termination
of employment hereunder shall not relieve Executive of his obligations under
Sections 8 and 9 hereof, notwithstanding the termination of Executive’s
compensation or the termination of the other terms and conditions of this
Agreement.  In addition, termination of
employment hereunder shall not relieve Executive of his obligations under Section 10
hereof, which are intended to continue indefinitely, notwithstanding the
termination of Executive’s compensation or the termination of the other terms
and conditions of this Agreement. 
Executive’s violation of any of his obligations under Sections 8, 9
or 10 hereof shall relieve CGX of its obligation to pay any of the amounts or
provide any of the benefits as contemplated in this Agreement, including those
set forth in this Section 15, except as otherwise required by law.

 

16.           Gross-Up.

 

(a)           Anything
in this Agreement to the contrary notwithstanding, in the event a public
accounting firm selected by Executive (the “Accounting Firm”)
shall determine that any payment, benefit, or distribution by CGX to Executive
(whether paid or payable or distributed or distributable pursuant to the terms
of Section 15 of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 16) (each a “Payment”) is subject to the excise
tax imposed by Section 4999 of the Code, or any interest or penalties are
incurred by Executive with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”), then CGX shall
pay to Executive an additional payment (a “Gross-Up Payment”)
in an amount such that after payment by Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto), and the Excise Tax imposed upon the Gross-Up Payment,
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

 

 

(b)           Subject to
the provisions of Section 16(c) below, all determinations required to
be made under this Section 16, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by the
Accounting Firm which shall provide detailed supporting calculations both to
CGX and Executive as soon as possible following a request made by Executive or
CGX.  All fees and expenses of the
Accounting Firm shall be borne solely by CGX. 
Any Gross-Up Payment, as determined pursuant to this Section 16,
shall be paid by CGX to Executive within five (5) days of the receipt of
the Accounting Firm’s determination.  If
the Accounting Firm determines that no Excise Tax is payable by Executive, it
shall furnish Executive with a written opinion that failure to report the
Excise Tax on Executive’s applicable federal income tax return would not result
in the imposition of a negligence or similar penalty.  Any determination by the Accounting Firm
shall be binding upon CGX and Executive. 
As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by CGX should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder.  If CGX exhausts its remedies pursuant to Section 16(c) below
and Executive thereafter is required to make a payment of any Excise Tax, the
Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment shall be promptly paid by CGX to or for the
benefit of Executive.

 

(c)           Executive
shall notify CGX in writing of any claim by the Internal Revenue Service that,
if successful, would require the payment by CGX of the Gross-Up Payment.  Such notification shall be given as soon as
practicable but no later than ten (10) business days after Executive is
informed in writing of such claim and shall set forth in reasonable detail the
nature of such claim and the date on which such claim is requested to be
paid.  Executive shall not pay such claim
prior to the expiration of the ten-day period following the date on which
Executive gives such notice to CGX (or such shorter period ending on the date
that any payment of taxes with respect to such claim is due).  If CGX notifies Executive in writing prior to
the expiration of such period that it desires to contest such claim, Executive
shall:

 

(i)            give CGX
any information reasonably requested by CGX relating to such claim,

 

(ii)           take such
action in connection with contesting such claim as CGX shall reasonably request
in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by
CGX,

 

(iii)          cooperate
with CGX in good faith to effectively contest such claim, and

 

(iv)          permit CGX
to participate in any proceedings relating to such claim;

 

provided, however, that CGX shall
bear and pay directly all costs and expenses (including additional interest and
penalties) incurred in

 

 

connection with such contest and shall indemnify and
hold Executive harmless, on an after-tax basis, for any Excise Tax or income
tax (including interest and penalties with respect thereto) imposed as a result
of such representation and payment of costs and expenses.  Without limitation on the foregoing
provisions of this Section 16(c), CGX shall control all proceedings taken
in connection with such contest and, at its sole option, may pursue or forgo
any and all administrative appeals, proceedings, hearings and conferences with
the taxing authority in respect of such claim and may, at its sole option,
either direct Executive to pay the tax claimed and sue for a refund or contest
the claim in any permissible manner, and Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as CGX shall
determine; provided further, that if CGX directs Executive to pay such claim
and sue for a refund, CGX shall advance the amount of such payment to Executive
on an interest-free basis and shall indemnify and hold Executive harmless, on
an after-tax basis, from any Excise Tax or income tax (including interest or
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and provided
further, that any extension of the statute of limitations relating to payment
of taxes for the taxable year of Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested amount.  Furthermore, CGX’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be
payable hereunder and Executive shall be entitled to settle or contest, as the
case may be, any other issue raised by the Internal Revenue Service or any
other taxing authority.

 

(d)           If, after
the receipt by Executive of an amount advanced by CGX pursuant to this Section 16,
Executive becomes entitled to receive, and receives, any refund with respect to
such claim, Executive shall (subject to CGX’s complying with the requirements
of this Section 16) promptly pay to CGX the amount of such refund
(together with any interest paid or credited thereon after taxes applicable
thereto).  If, after the receipt by Executive
of any amount advanced by CGX pursuant to Section 16, a determination is
made that Executive shall not be entitled to any refund with respect to such
claim and CGX does not notify Executive in writing of its intent to contest
such denial of refund prior to the expiration of thirty (30) days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

 

17.           Definitions.  As used in this Agreement, terms defined in
the preamble and recitals of or elsewhere in this Agreement shall have the
meanings set forth therein and the following terms shall have the meanings set
forth below:

 

(a)           Affiliate or Affiliates
shall mean and refer to any direct or indirect subsidiaries of CGX, or any
other entity or entities through which CGX or any subsidiary of CGX may conduct
CGX’s Line of Business.

 

 

(b)           Cause shall mean and include without limitation (i) the
inability of Executive to perform his Duties hereunder due to a legal
impediment, including without limitation, the entry against Executive of an
injunction, restraining order or other type of judicial judgment, decree or
order which would prevent or hinder Executive from performing his Duties; (ii) the
willful failure by Executive to follow material CGX Policies or the willful
disregard of the reasonable and material instructions of the Board of Directors
with respect to the performance of Executive’s Duties, other than any failure
not occurring in bad faith that is remedied by Executive promptly after receipt
of notice thereof from CGX; (iii) excessive absenteeism, flagrant neglect
of work, serious misconduct, conviction of a felony or fraud; or (iv) the
failure of Executive to devote substantially all of his full working time and
attention to performance of his Duties for CGX.

 

(c)           Change in Control Agreement shall mean that certain Employment
and Change in Control Agreement dated July 25, 2000, as amended on February 13,
2006, between CGX and Executive.

 

(d)           CGX’s Line of Business shall mean general commercial
printing services, including digital imaging, offset lithography, composition,
electronic prepress, binding and finishing services, fulfillment of printed
materials and includes any products or services manufactured, developed or
distributed, including electronic products and services, at any time by CGX
and/or the Affiliates before or after the Effective Date.

 

(e)           CGX’s Market shall mean the United States;

 

(f)            Competitive Business shall mean any person or entity engaged
in a business that produces any of the products or performs any of the services
comprising CGX’s Line of Business.

 

(g)           Confidential Information shall mean trade secrets, customer
and supplier lists, marketing arrangements, business plans, projections,
financial information, training manuals, pricing manuals, product and service
development plans, market strategies, internal performance statistics and other
competitively sensitive information belonging to and concerning CGX and/or any
of the Affiliates and not generally known by or available to the public,
whether or not in written or tangible form, as the same may exist at any time
during the Employment Period.

 

(h)           Disability shall mean any illness, disability or incapacity
of such a character as to render Executive unable to perform his Duties (which
determination shall be made by the Board of Directors) for a total period of
one hundred eighty (180) days, whether or not such days are consecutive, during
any consecutive twelve (12) month period.

 

(i)            Eligible for Retirement shall mean any
combination of the age of the Executive plus the numbers of years of service to
the Company (including service preceding the Effective Date of this Agreement)
that equal or exceeds the number seventy (70).

 

(j)            Effective Date shall mean the execution date of this
Agreement.

 

 

(k)           Employment Period shall mean that period of time set forth
in Section 2 of this Agreement.

 

(l)            Good Reason shall mean (i) the material breach of this
Agreement by CGX, other than any failure not occurring in bad faith that is
remedied by CGX promptly after receipt of notice thereof from Executive,(ii) the
implementation by CGX of a condition to Executive’s continued employment with
CGX that Executive’s principal place of work be changed to any location outside
of the Houston metropolitan area or (iii) a material diminution in the
Executive’s Duties.

 

(m)          Noncompetition Period shall mean the period beginning on the
Effective Date and ending (i) if Executive’s employment is terminated for
Cause or if Employee resigns for any reason other than Good Reason, on the
second anniversary of the date of such termination or resignation or (ii) if
Executive’s employment is terminated without Cause or Executive resigns for
Good Reason, on the earlier of (1) the first anniversary of the date of
such termination or resignation or (2) March 31, 2011.

 

(n)           Permitted Activities shall mean (i) owning not more
than 1% of the outstanding shares of a publicly-held Competitive Business which
has shares listed for trading on a securities exchange registered with the
Securities and Exchange Commission or through the automated quotation system of
a registered securities association; (ii) owning capital stock of CGX; or (iii) those
activities or actions undertaken by Executive, to the extent, but only to the
extent, such activities or actions are expressly approved in writing by the
Board of Directors.

 

18.           Notices.  All notices, demands or other communications
required or provided hereunder shall be in writing and shall be deemed to have
been given and received when delivered in person or transmitted by facsimile
transmission (telecopy), cable or telex to the respective parties or seven (7) days
after dispatch by registered or certified mail, postage prepaid, addressed to
the parties at the addresses set forth below or at such other addresses as such
parties may designate by notice to the other parties:

 

	
  If to CGX:

  	
   

  	
  Consolidated Graphics, Inc.

  
	
   

  	
   

  	
  5858 Westheimer, Suite 200

  
	
   

  	
   

  	
  Houston, Texas 77057

  
	
   

  	
   

  	
  Attention: Chairman of
  the Compensation Committee

  
	
   

  	
   

  	
   

  
	
  with a copy (which shall not

  	
   

  	
   

  
	
  constitute notice) to:

  	
   

  	
  R. Clyde Parker, Jr., Esq.

  
	
   

  	
   

  	
  Winstead Sechrest &
  Minick P.C.

  
	
   

  	
   

  	
  910 Travis, Suite 2400

  
	
   

  	
   

  	
  Houston, Texas 77002

  
	
   

  	
   

  	
   

  
	
  If to Executive:

  	
   

  	
  Joe R. Davis

  
	
   

  	
   

  	
  c/o Consolidated
  Graphics, Inc.

  
	
   

  	
   

  	
  5858 Westheimer, Suite 200

  
	
   

  	
   

  	
  Houston, Texas 77057

  

 

 

19.           Assignment.  CGX, but not Executive, may assign or
delegate any of its rights or obligations hereunder; provided, however,
that without the consent of Executive, CGX shall not be relieved of
any of its obligations hereunder as a result of any assignment to a third
party; provided, further, that an assignment
made in accordance with this section shall not constitute a termination of
employment for purposes of this Agreement. 
This Agreement shall be binding upon and inure to the benefit of any
assignee thereof and any such assignee shall be deemed substituted for CGX
under the terms of this Agreement and all references to the “CGX” shall be
deemed to mean such assignee.  As used in
this Agreement, the term “assignee” shall include any Affiliate or person,
firm, partnership, corporation or CGX which at any time, whether by merger,
purchase or otherwise, acquires all of the capital stock or substantially all
of the assets or business of CGX, and any assignee or successor thereof.

 

20.           No Mitigation Obligation.  CGX hereby acknowledges that it
will be difficult, and may be impossible, for Executive to find reasonably
comparable employment following the Termination Date and that the
noncompetition covenants contained in Sections 8 and 9 hereof will further
limit the employment opportunities for Executive.  Accordingly, the parties hereto expressly
agree that the payment of all such amounts and the provision of all such
benefits by CGX to Executive in accordance with the terms of this Agreement
will be liquidated damages, and that Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise, nor shall any profits, income, earnings or other
benefits from any source whatsoever create any mitigation, offset, reduction or
any other obligation on the part of Executive hereunder or otherwise.

 

21.           Amendment and Modification.  No amendment or modification of
the terms of this Agreement shall be binding upon either party unless reduced
to writing and signed by Executive and a duly appointed officer of CGX.

 

22.           Governing Law.  This Agreement and all rights and obligations
hereunder, including matters of construction, validity and performance, shall
be governed by the laws of the State of Texas, without giving effect to the
principles of conflicts of laws thereof.

 

23.           Counterparts.  This Agreement may be executed in two or more
counterparts, any one of which shall be deemed the original without reference
to the others.

 

24.           Severability.  If any provision or portion of this Agreement
shall be determined to be invalid or unenforceable for any reason, the remaining
provisions and portions of this Agreement shall be unaffected thereby and shall
remain in full force and effect to the fullest extent permitted by law.

 

25.           Effective Date.  This Agreement shall become effective only
upon and as of the Effective Date.

 

26.           Waiver.  The failure of either party to insist, in any
one or more instances, upon performance of the terms or conditions of this
Agreement shall not be construed as a waiver or relinquishment of any right
granted hereunder or of the future performance of any such term, covenant or
condition.

 

27.           Construction of Agreement.  Headings of the sections in this
Agreement are for reference purposes only and shall not be deemed to have any
substantive effect.  Unless the contents
of this Agreement otherwise clearly requires, references to the plural include
the

 

 

singular and the singular include
the plural.  Whenever the context here
requires, the masculine shall refer to the feminine, the neuter shall refer to
the masculine or feminine, the singular shall refer to the plural, and vice versa.

 

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

 

	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  JOE R DAVIS

  	
   

  
	
   

  	
  JOE
  R. DAVIS

  
	
   

  	
   

  
	
   

  	
  CGX:

  
	
   

  	
   

  
	
   

  	
  CONSOLIDATED
  GRAPHICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  G. Christopher Colville

  	
   

  
	
   

  	
  Name:
  G. Christopher Colville

  
	
   

  	
  Title:   Executive
  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]