Document:

exv10w1

Exhibit 10.1

NASHUA CORPORATION

Restricted Stock Agreement

Granted Under

2008 Value Creation Incentive Plan

     This Restricted Stock Agreement (this “Agreement”) is made this                      day of                     , 2008
(the “Grant Date”), between Nashua Corporation, a Massachusetts corporation (the “Company”), and
                     (the “Participant”).

     For valuable consideration, receipt of which is acknowledged, the parties hereto agree as
follows:

     1. Grant and Issuance of Shares.

     The Company shall issue to the Participant, and the Participant shall acquire and accept from
the Company, subject to the terms and conditions set forth in this Agreement and in the Company’s
2008 Value Creation Incentive Plan (the “Plan”),
                     shares (the “Shares”) of common stock, par
value $1.00 per share, of the Company (“Common Stock”). The Company shall issue to the Participant
one or more certificates in the name of the Participant for that number of Shares issued to the
Participant. The Participant agrees that the Shares shall be subject to (without limitation) the
forfeiture provisions set forth in Section 2 of this Agreement and the restrictions on transfer set
forth in Section 4 of this Agreement. The Participant agrees to the provisions set forth herein
and acknowledges that each such provision is a material condition to the Company’s agreement to
grant the Shares to the Participant.

     2. Forfeiture of Unvested Shares.

          (a) Notwithstanding any other provision of this Agreement, upon the earlier of (i) the
termination of the Participant’s employment with the Company for any reason or no reason, with or
without cause, or upon death or disability, and (ii) the third anniversary of the Grant Date, all
Unvested Shares (as defined below) shall, without further action of any kind by the Company, be
forfeited to the Company as of the date of such termination of employment or the third anniversary
of the Grant Date, as the case may be.

     “Unvested Shares” at any time means the total number of Shares multiplied by the Applicable
Percentage at such time. The “Applicable Percentage” shall, at any time, be 100% less the
following applicable percentage, if any:

     (i) 33% if the average of the last reported sales price per share of the Common Stock on the
NASDAQ Global Market (or other national securities exchange or nationally recognized trading
system) for a 40 consecutive trading day period ending on the third anniversary of the Grant Date
(the “40-Day Average Closing Price”) is equal to or greater than $13.00 and less than $14.00;

     (ii) 66% if the 40-Day Average Closing Price is equal to or greater than $14.00 and less than
$15.00; and

     (iii) 100% if the 40-Day Average Closing Price is equal to or greater than $15.00;

 

 

provided, however, that in the event the Participant’s employment with the Company is terminated by
the Company without “Cause” during the one-year period beginning on the second anniversary of the
Grant Date and ending on the third anniversary of the Grant Date, then in the event one of the
40-Day Average Closing Price targets is thereafter met as of the third anniversary of the Grant
Date, the Participant’s Shares shall vest as to a percentage of such Shares equal to the number of
days during such one-year period that the Participant was employed by the Company divided by 365,
provided that in no such event shall the number of Shares to so vest exceed the number that would
have otherwise vested had the Participant been employed as of such third anniversary of the Grant
Date.

          (b) Notwithstanding any other provision of this Agreement, if, on the first anniversary of the
Grant Date, the Participant is not in compliance with any portion of the “Front-End Ownership
Requirement” set forth in the Company’s Executive Stock Ownership Guidelines as in effect as of the
Grant Date, a copy of which are attached to this Agreement as Exhibit A, then all of the
Shares shall, without further action of any kind by the Company, be forfeited to the Company as of
the first anniversary of the Grant Date and thereafter all calculations in this Agreement based on
the defined term “Shares” shall be based on the number of such Shares as reduced by this provision.
If the Participant achieves a portion, but not all, of the Front-End Ownership Requirement on the
first anniversary of the Grant Date, a pro rata portion of the Shares, equal to the pro rata
portion of the Front-End Ownership Requirement that is not achieved, shall, without further action
of any kind by the Company, automatically be forfeited to the Company as of the first anniversary
of the Grant Date and thereafter all calculations in this Agreement based on the defined term
“Shares” shall be based on the number of such Shares as reduced by this provision.

          (c) For purposes of this Agreement, employment with the Company shall include employment with
a parent or subsidiary of the Company.

          (d) For the purposes hereof, “Cause” shall mean (i) the Participant’s continued failure to
perform his reasonably assigned duties (other than any such failure resulting from incapacity due
to physical or mental illness), which failure is not cured within 60 days after written notice for
substantial performance is received by the Participant from the Board which identifies the manner
in which the Board believes the Participant has not substantially performed the Participant’s
duties, (ii) the Participant being convicted of a felony, or (iii) the Participant’s engagement in
illegal conduct or gross misconduct injurious to the Company.

     3. Forfeiture Procedures.

          (a) In the event any Shares are forfeited by the Participant pursuant to Section 2(a) or (b)
above, the Participant (or the Participant’s estate) shall, pursuant to the provisions of the Joint
Escrow Instructions referred to in Section 5 below, tender to the Company at its principal offices
the certificate or certificates representing the Shares so forfeited, duly endorsed in blank or
with duly endorsed stock powers attached thereto, all in form suitable for the transfer of such
Shares to the Company.

          (b) After the time at which any Shares are required to be delivered to the Company for
transfer to the Company pursuant to Section 3(a) above, the Company shall not pay

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any dividend to the Participant on account of such Shares or permit the Participant to
exercise any of the privileges or rights of a stockholder with respect to such Shares, but shall,
in so far as permitted by law, treat the Company as the owner of such Shares.

     4. Restrictions on Transfer. The Participant shall not sell, assign, transfer,
pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively
“transfer”) any Shares, or any interest therein, that are subject to the forfeiture provisions
under Sections 2 and 3 above, except that the Participant may transfer such Shares (i) to or for
the benefit of any spouse, children, parents, uncles, aunts, siblings, grandchildren and any other
relatives approved by the Board of Directors (collectively, “Approved Relatives”) or to a trust
established solely for the benefit of the Participant and/or Approved Relatives, provided
that such Shares shall remain subject to this Agreement (including without limitation the
restrictions on transfer set forth in this Section 4 and the forfeiture provisions set forth in
Sections 2 and 3 above) and such permitted transferee shall, as a condition to such transfer,
deliver to the Company a written instrument confirming that such transferee shall be bound by all
of the terms and conditions of this Agreement or (ii) as part of the sale of all or substantially
all of the shares of capital stock of the Company (including pursuant to a merger or
consolidation), provided that, in accordance with the Plan, the securities or other
property received by the Participant in connection with such transaction shall remain subject to
this Agreement.

     5. Escrow.

     The Participant shall, upon the execution of this Agreement, execute Joint Escrow Instructions
in the form attached to this Agreement as Exhibit B. The Joint Escrow Instructions shall
be delivered to the Clerk/Secretary of the Company, as escrow agent thereunder. The Participant
shall deliver to such escrow agent a stock assignment duly endorsed in blank, in the form attached
to this Agreement as Exhibit C, and hereby instructs the Company to deliver to such escrow
agent, on behalf of the Participant, the certificate(s) evidencing the Shares issued hereunder.
Such materials shall be held by such escrow agent pursuant to the terms of such Joint Escrow
Instructions.

     6. Restrictive Legends.

     All certificates representing Shares shall have affixed thereto legends in substantially the
following form, in addition to any other legends that may be required under federal or state
securities laws:

“The shares of stock represented by this certificate are subject to
restrictions on transfer and an option to purchase set forth in a
certain Restricted Stock Agreement between the corporation and the
registered owner of these shares (or owner’s predecessor in
interest), and such Agreement is available for inspection without
charge at the office of the Clerk/Secretary of the corporation.”

     7. Provisions of the Plan.

          (a) This Agreement is subject to the provisions of the Plan, a copy of which is furnished to
the Participant with this Agreement.

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          (b) As provided in the Plan, upon the occurrence of a Reorganization Event (as defined in the
Plan), the repurchase and other rights of the Company hereunder shall inure to the benefit of the
Company’s successor and shall apply to the cash, securities or other property which the Shares were
converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the
same extent as they applied to the Shares under this Agreement. If, in connection with a
Reorganization Event, a portion of the cash, securities and/or other property received upon the
conversion or exchange of the Shares is to be placed into escrow to secure indemnification or
similar obligations, the mix between the vested and unvested portion of such cash, securities
and/or other property that is placed into escrow shall be the same as the mix between the vested
and unvested portion of such cash, securities and/or other property that is not subject to escrow.

     8. Withholding Taxes; Section 83(b) Election.

          (a) The Participant acknowledges and agrees that the Company has the right to deduct from
payments of any kind otherwise due to the Participant any federal, state or local taxes of any kind
required by law to be withheld with respect to the issuance of the Shares to the Participant or the
lapse of the forfeiture provisions provided for herein.

          (b) The Participant has reviewed with the Participant’s own tax advisors the federal, state,
local and foreign tax consequences of this investment and the transactions contemplated by this
Agreement. The Participant is relying solely on such advisors and not on any statements or
representations of the Company or any of its agents. The Participant understands that the
Participant (and not the Company) shall be responsible for the Participant’s own tax liability that
may arise as a result of this investment or the transactions contemplated by this Agreement. The
Participant understands that the Participant may elect to be taxed at the time the Shares are
acquired rather than when and as the forfeiture provisions provided for herein expire by filing an
election under Section 83(b) of the Code with the I.R.S. within 30 days from the date of purchase.

          THE PARTICIPANT ACKNOWLEDGES THAT IT IS THE PARTICIPANT’S SOLE RESPONSIBILITY AND NOT THE
COMPANY’S TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE PARTICIPANT REQUESTS THE
COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE PARTICIPANT’S BEHALF.

     9. Miscellaneous.

          (a) No Rights to Employment. The Participant acknowledges and agrees that the vesting
of the Shares under this Agreement is earned only by continuing service as an employee at the will
of the Company (not through the act of being hired or being issued Shares hereunder). The
Participant further acknowledges and agrees that the transactions contemplated hereunder and the
vesting schedule set forth herein do not constitute an express or implied promise of continued
engagement as an employee or consultant for the vesting period, for any period, or at all.

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          (b) Assignment. The Company shall have the right to assign this Agreement, or any
portions thereof, including its rights with respect to the forfeiture of Shares pursuant to
Sections 2 and 3 above, to any person or persons.

          (c) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement,
and each other provision of this Agreement shall be severable and enforceable to the extent
permitted by law.

          (d) Waiver. Any provision for the benefit of the Company contained in this Agreement
may be waived, either generally or in any particular instance, by the Board of Directors of the
Company.

          (e) Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the Company and the Participant and their respective heirs, executors, administrators, legal
representatives, successors and assigns, subject to the restrictions on transfer set forth in
Section 4 of this Agreement.

          (f) Notice. All notices required or permitted hereunder shall be in writing and
deemed effectively given upon personal delivery or five days after deposit in the United States
Post Office, by registered or certified mail, postage prepaid, addressed to the other party hereto
at the address shown beneath his or its respective signature to this Agreement, or at such other
address or addresses as either party shall designate to the other in accordance with this
Section 9(f).

          (g) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

          (h) Entire Agreement. This Agreement and the Plan constitute the entire agreement
between the parties, and supersedes all prior agreements and understandings, relating to the
subject matter of this Agreement.

          (i) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the Company and the Participant.

          (j) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the internal laws of the Commonwealth of Massachusetts without regard to any
applicable conflicts of laws.

          (k) Participant’s Acknowledgments. The Participant acknowledges that he or she: (i)
has read this Agreement; (ii) has been represented in the execution of this Agreement by legal
counsel of the Participant’s own choice or has voluntarily declined to seek such counsel; (iii)
understands the terms and consequences of this Agreement; and (iv) is fully aware of the legal and
binding effect of this Agreement.

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

	 	 	 	 	 	 	 
	 	 	NASHUA CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address:  11 Trafalgar Square, Second Floor

                Nashua, NH 03063	 	 
	 
	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Address:	 	 

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Exhibit A

NASHUA CORPORATION

Executive Stock Ownership Guidelines

2008 Value Creation Incentive Plan

I.  Purpose

     In connection with the determination of awards under Nashua Corporation’s 2008 Value Creation
Incentive Plan, which was approved by Nashua’s shareholders in April 2008, Nashua’s Board of
Directors has adopted these Executive Stock Ownership Guidelines to further align the interests and
actions of Nashua’s executive officers with the interests of Nashua’s shareholders and further
promote Nashua’s longstanding commitment to sound corporate governance.

II.  Covered Persons

     These Executive Stock Ownership Guidelines shall apply to the following senior managers:

	 	•	 	Nashua’s Chief Executive Officer;
	 
	 	•	 	Nashua’s Chief Financial Officer; and
	 
	 	•	 	Nashua’s executive officers who are participants in Nashua’s 2008 Value Creation
Incentive Plan.

III.  Determination of Guidelines

     The Executive Stock Ownership Guidelines for each executive officer are determined as a
multiple of the executive officer’s initial award under the 2008 Value Creation Incentive Plan.
Individual guidelines for Nashua stock ownership are established for each covered person as follows
for (1) a “Front-End Ownership Requirement” of newly acquired shares to be met within one year of
the grant date of the award under the 2008 Value Creation Incentive Plan and (2) a “Back-End
Ownership Requirement” of currently held or newly acquired shares to be met upon and following the
vesting of the award under the 2008 Value Creation Incentive Plan and upon and following the
vesting of any future restricted stock or similar award or the exercise of any future option or
similar award:

	 	 	 
	Front-End	 	Back-End
	Ownership Requirement	 	Ownership Requirement
	Amount of newly acquired shares
equal to 10% of shares subject
to award under 2008 Value
Creation Incentive Plan

	 	Front-End Ownership Requirement

+

50% of shares vested, if any, pursuant to
award under 2008 Value Creation Incentive
Plan

+

50% of shares vested pursuant to any
future restricted stock or similar award
and 50% of shares obtained upon exercise
of stock options or similar awards (other
than shares surrendered or sold upon a
cashless exercise or broker-assisted cash
free exercise)

 

 

IV.  Counting Shares Owned

     Only shares that are acquired (or, with respect to restricted stock, that have vested) on or
after the date of the award under the 2008 Value Creation Incentive Plan will count towards
satisfaction of the Front-End Ownership Requirement. Shares may count toward satisfaction of the
Back-End Ownership Requirement regardless of when they were acquired.

     Shares that count towards satisfaction of an executive officer’s ownership requirements for
Nashua stock include:

	 	•	 	Shares directly or beneficially owned by the executive officer or his or her
immediate family members residing in the same household, whether individually or
jointly;
	 
	 	•	 	Shares held in any 401(k) Retirement Savings Plan;
	 
	 	•	 	Shares granted pursuant to restricted stock awards that have vested and with
respect to which the transfer restrictions have lapsed;
	 
	 	•	 	Shares acquired upon stock option exercises; and
	 
	 	•	 	Shares acquired in the open market during an open trading window.

Unvested shares of restricted stock and unexercised stock options (even if they are vested and
in-the-money) will not count towards satisfaction of an executive officer’s ownership requirements.

V.  Compliance with the Guidelines

     Executive officers are expected to achieve the Front-End Ownership Requirement within one year
of the grant date for the award under the 2008 Value Creation Incentive Plan. If an executive
officer does not achieve any portion of the Front-End Ownership Requirement by that time, all of
the shares subject to the award grant to the executive officer under the 2008 Value Creation
Incentive Plan will automatically be forfeited on the first anniversary of the award grant date.
If an executive officer achieves a portion, but not all, of the Front-End Ownership Requirement on
the first anniversary of the award grant date, a pro rata portion of the shares subject to the
award grant, equal to the pro rata portion of the Front-End Ownership Requirement that is not
achieved, will automatically be forfeited on the first anniversary of the award grant date. In
addition, future equity awards will also be subject to a new Front-End Ownership Requirement of
newly acquired shares, equal to a percentage of the shares subject to such future equity award as
the Board may then determine, to be met within one year of the grant date of the future equity
awards.

     Each executive officer is also expected to achieve the Back-End Ownership Requirement upon the
vesting of his or her award under the 2008 Value Creation Incentive Plan and, once achieved, to
maintain the Back-End Ownership Requirement for as long as he or she is employed by Nashua. If the
Back-End Ownership Requirement is not achieved upon the vesting of the award under the 2008 Value
Creation Incentive Plan or maintained after that time, the executive officer will not be eligible
to receive future equity awards from Nashua until the executive officer is in compliance with these
Executive Stock Ownership Guidelines.

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     Until an executive officer achieves both the Front-End Ownership Requirement and the Back-End
Ownership Requirement, each executive officer is expected to maintain and increase his or her
ownership of Nashua stock and should not engage in any transactions that would decrease his or her
ownership of Nashua stock. However, executive officers may, to the extent permitted by Nashua’s
Insider Trading Policy and applicable law, use shares of Nashua stock owned by them to secure loans
for funds to purchase additional shares of Nashua stock. As noted above, once the Front-End
Ownership Requirement and the Back-End Ownership Requirement are achieved, executive officers are
expected to maintain the Back-End Ownership Requirement for as long as he or she is employed by
Nashua.

VI.  Reporting

     Covered persons will be notified each year where they stand with regard to the requirements of
these Executive Stock Ownership Guidelines.

VII.  Hardship

     There may be instances in which the requirements of these Executive Stock Ownership Guidelines
would place a severe hardship on an executive officer or prevent an executive officer from
complying with a court order (such as in the case of a divorce settlement); although it is expected
that these instances will be rare. In these instances, the executive officer may submit a request
in writing to the Leadership and Compensation Committee that summarizes the circumstances and
describes the extent to which an exemption from the ownership requirements is being requested. The
Leadership and Compensation Committee will review the request with the Chairman and will make the
final decision with respect to such request. If the request is granted in whole or in part, the
Leadership and Compensation Committee will in consultation with the executive officer develop an
alternative stock ownership guideline for the executive officer that reflects both the intention of
these Executive Stock Ownership Guidelines and the executive officer’s individual circumstances.

VIII.  Administration

     These Executive Stock Ownership Guidelines are administered and interpreted by the Leadership
and Compensation Committee of the Board of Directors of Nashua.

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Exhibit B

Nashua Corporation

11 Trafalgar Square, Second Floor

Nashua, NH 03063 

Joint Escrow Instructions

Date:                     

Clerk/Secretary

Nashua Corporation

11 Trafalgar Square, Second Floor

Nashua, NH 03063

Dear                     :

     As Escrow Agent for Nashua Corporation, a Massachusetts corporation, and its successors in
interest under the Restricted Stock Agreement (the “Agreement”) of even date herewith, to which a
copy of these Joint Escrow Instructions is attached (the “Company”), and the undersigned person
(“Holder”), you are hereby authorized and directed to hold the documents delivered to you pursuant
to the terms of the Agreement in accordance with the following instructions:

     1. Appointment. Holder irrevocably authorizes the Company to deposit with you any
certificates evidencing Shares (as defined in the Agreement) to be held by you hereunder and any
additions and substitutions to said Shares. For purposes of these Joint Escrow Instructions,
“Shares” shall be deemed to include any additional or substitute property. Holder does hereby
irrevocably constitute and appoint you as his attorney-in-fact and agent for the term of this
escrow to execute with respect to such Shares all documents necessary or appropriate to make such
Shares negotiable and to complete any transaction herein contemplated. Subject to the provisions
of this paragraph 1 and the terms of the Agreement, Holder shall exercise all rights and privileges
of a stockholder of the Company while the Shares are held by you.

     2. Forfeiture.

          (a) Upon any forfeiture of the Shares pursuant to the Agreement, the Company shall give to
Holder and you a written notice specifying (i) the event of forfeiture, as determined pursuant to
the Agreement, (ii) the time for the closing hereunder (the “Closing”), and (iii) the number of
Shares being forfeited pursuant to the terms of the Agreement. Holder and the Company hereby
irrevocably authorize and direct you to close the transaction contemplated by such notice in
accordance with the terms of said notice.

          (b) At the Closing, you are directed (i) to date the stock assignment form or forms necessary
for the transfer of the Shares, (ii) to fill in on such form or forms the number of

 

 

Joint Escrow Instructions

                     ___, 20___

Page 2 of 4

Shares being transferred, and (iii) to deliver same, together with the certificate or
certificates evidencing the Shares to be transferred, to the Company.

     3. Withdrawal. The Holder shall have the right to withdraw from this escrow any
Shares as to which the forfeiture provisions of Sections 2 and 3 of the Agreement have terminated
or expired.

     4. Duties of Escrow Agent.

          (a) Your duties hereunder may be altered, amended, modified or revoked only by a writing
signed by all of the parties hereto.

          (b) You shall be obligated only for the performance of such duties as are specifically set
forth herein and may rely and shall be protected in relying or refraining from acting on any
instrument reasonably believed by you to be genuine and to have been signed or presented by the
proper party or parties. You shall not be personally liable for any act you may do or omit to do
hereunder as Escrow Agent or as attorney-in-fact of Holder while acting in good faith and in the
exercise of your own good judgment, and any act done or omitted by you pursuant to the advice of
your own attorneys shall be conclusive evidence of such good faith.

          (c) You are hereby expressly authorized to disregard any and all warnings given by any of the
parties hereto or by any other person or Company, excepting only orders or process of courts of
law, and are hereby expressly authorized to comply with and obey orders, judgments or decrees of
any court. In case you obey or comply with any such order, judgment or decree of any court, you
shall not be liable to any of the parties hereto or to any other person, firm or Company by reason
of such compliance, notwithstanding any such order, judgment or decree being subsequently reversed,
modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

          (d) You shall not be liable in any respect on account of the identity, authority or rights of
the parties executing or delivering or purporting to execute or deliver the Agreement or any
documents or papers deposited or called for hereunder.

          (e) You shall be entitled to employ such legal counsel and other experts as you may deem
necessary properly to advise you in connection with your obligations hereunder and may rely upon
the advice of such counsel.

          (f) Your rights and responsibilities as Escrow Agent hereunder shall terminate if (i) you
cease to be Clerk/Secretary of the Company or (ii) you resign by written notice to each party. In
the event of a termination under clause (i), your successor as Clerk/Secretary shall become Escrow
Agent hereunder; in the event of a termination under clause (ii), the Company shall appoint a
successor Escrow Agent hereunder.

 

 

Joint Escrow Instructions

                     ___, 20___

Page 3 of 4

          (g) If you reasonably require other or further instruments in connection with these Joint
Escrow Instructions or obligations in respect hereto, the necessary parties hereto shall join in
furnishing such instruments.

          (h) It is understood and agreed that should any dispute arise with respect to the delivery
and/or ownership or right of possession of the securities held by you hereunder, you are authorized
and directed to retain in your possession without liability to anyone all or any part of said
securities until such dispute shall have been settled either by mutual written agreement of the
parties concerned or by a final order, decree or judgment of a court of competent jurisdiction
after the time for appeal has expired and no appeal has been perfected, but you shall be under no
duty whatsoever to institute or defend any such proceedings.

          (i) These Joint Escrow Instructions set forth your sole duties with respect to any and all
matters pertinent hereto and no implied duties or obligations shall be read into these Joint Escrow
Instructions against you.

          (j) The Company shall indemnify you and hold you harmless against any and all damages, losses,
liabilities, costs, and expenses, including attorneys’ fees and disbursements, for anything done or
omitted to be done by you as Escrow Agent in connection with this Agreement or the performance of
your duties hereunder, except such as shall result from your gross negligence or willful
misconduct.

     5. Notice. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery or upon deposit in the United States Post
Office, by registered or certified mail with postage and fees prepaid, addressed to each of the
other parties thereunto entitled at the following addresses, or at such other addresses as a party
may designate by ten days’ advance written notice to each of the other parties hereto.

	 	 	 	 	 
	 

	 	COMPANY:
	 	Notices to the Company shall be sent to 

the address set
forth in the salutation 

hereto, Attn: President
	 
	 	 	 	 
	 

	 	HOLDER:
	 	Notices to Holder shall be sent to the 

address set forth
below Holder’s 

signature below.
	 
	 	 	 	 
	 

	 	ESCROW AGENT:
	 	Notices to the Escrow Agent shall be sent 

to the address set
forth in the salutation hereto.

     6. Miscellaneous.

          (a) By signing these Joint Escrow Instructions, you become a party hereto only for the purpose
of said Joint Escrow Instructions, and you do not become a party to the Agreement.

 

 

Joint Escrow Instructions

                     ___, 20___

Page 4 of 4

          (b) This instrument shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	NASHUA CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	HOLDER:	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Print Name
	 	 
	 
	 	 	 	 	 	 
	 	 	Address:	 	 
	 
	 	 	 	 	 	 
	 	 	Date Signed:
_________________________________________________	 	 

ESCROW AGENT:

_________________________

 

 

Exhibit C

(STOCK ASSIGNMENT SEPARATE FROM CERTIFICATE)

FOR VALUE RECEIVED, I hereby sell, assign and transfer unto Nashua Corporation
                                         (                    ) shares of Common Stock, par value $1.00 per share, of Nashua
Corporation (the “Corporation”) standing in my name on the books of the Corporation represented by
Certificate(s) Number                      herewith, and do hereby irrevocably constitute and appoint Nashua
Corporation attorney to transfer the said stock on the books of the Corporation with full power of
substitution in the premises.

	 	 	 	 	 
	Dated:                                         
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Dated:                                         

	 	IN PRESENCE OF:exv10w1

Exhibit 10.1

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amended and Restated Employment Agreement (this “Agreement”) is dated as of July 20,
2009, originally effective November 9, 2005, as amended, between Novavax, Inc., a Delaware
corporation having its principal office at 9920 Belward Campus Drive, Rockville, MD 20850, and
Rahul Singhvi, an individual with a mailing address of
(“Executive”). This agreement is being amended and restated to provide for certain required
changes.

     The Company and Executive hereby agree as follows:

     1. Employment. The Company hereby employs Executive and Executive hereby accepts employment
as President and Chief Executive Officer upon the terms and conditions hereinafter set forth. As
used throughout this Agreement, “Company” shall mean and include any and all of its present and
future subsidiaries and any and all subsidiaries of a subsidiary. Executive warrants and
represents that he is free to enter into and perform this Agreement and is not subject to any
employment, confidentiality, non-competition or other agreement which prohibits, restricts, or
would be breached by either his acceptance or his performance of this Agreement.

     2. Duties. During the Term (as hereinafter defined), Executive shall devote his full business
time to the performance of services as President and Chief Executive Officer of Novavax, Inc.,
performing such services, assuming such responsibilities and exercising such authority as are set
forth in the Bylaws of the Company for such offices and assuming such other duties and
responsibilities as prescribed by the Board of Directors. During the Term, Executive’s services
shall be completely exclusive to the Company and he shall devote his entire business time,
attention and energies to the business of the Company and the duties which the Company shall assign
to him from time to time. Executive agrees to perform his services faithfully and to the best of
his ability and to carry out the policies and directives of the Company. Notwithstanding the
foregoing, it shall not be a violation of this Agreement for the Executive to serve as a director
of any company whose products do not compete with those of the Company and to serve as a director,
trustee, officer, or consultant to a charitable or non-profit entity; provided that such service
does not adversely affect Executive’s ability to perform his obligations hereunder. Executive
agrees to take no action which is in bad faith and prejudicial to the interests of the Company
during his employment hereunder. Executive shall be based at the Company’s headquarters, currently
in Rockville, Maryland, and he also will be required from time to time to perform duties hereunder
for reasonably short periods of time outside of said area.

     3. Term. The term of this Agreement shall be for the period beginning on July 20, 2009 and
continuing until September 1, 2010, unless earlier terminated pursuant to Section 7 hereof (the
“Term”) and shall be renewed automatically for additional twelve-month periods on the terms set
forth herein, as they may be modified from time to time by mutual agreement, unless one of the
Company or the Executive provides notice of termination at least 30 days before the expiration of
the then current term. The parties acknowledge that the employment hereunder is employment at
will.

 

 

     4. Compensation.

          (a) Base Compensation. For all Executive’s services and covenants under this Agreement, the
Company shall pay Executive an annual salary, which is $425,00 per year as of this Amendment and
Restatement, and the Board of Directors will review and consider for increase annually based on the
Executive’s and the Company’s performance. Executive’s salary and benefits will be payable in
accordance with the Company’s payroll policy as constituted from, time to time. The Company may
withhold from any amounts payable under this Agreement all required federal, state, city or other
taxes and all other deductions as may be required pursuant to any law or government regulation or
ruling.

          (b) Bonus Program. The Company agrees to pay the Executive a performance and incentive bonus
in respect of Executive’s employment with the Company each year, in an amount determined by the
Board of Directors (or any committee of the Board of Directors authorized to make that
determination) to be appropriate based upon Executive’s and the Company’s achievement of certain
specified goals, with a maximum target bonus of 60%, or any other percentage determined by the
Board of Directors, of Executive’s base salary during the year to which the bonus relates. The
bonus shall be paid out partly in cash and partly in shares of restricted stock, in the discretion
of the Board of Directors. Such bonus shall be paid no later than two and one-half months
following the year for which the bonus applies.

          (c) Stock Awards. Executive will be eligible for additional stock awards based upon
performance subject to the approval of the Board of Directors.

     5. Reimbursable Expenses. Executive shall be entitled to reimbursement for reasonable
expenses incurred by him in connection with the performance of his duties hereunder in accordance
with such procedures and policies for executive officers as the Company has heretofore or may
hereafter establish.

     6. Benefits. (a) Executive shall be entitled to five weeks of paid vacation time per year,
calculated and administered in accordance with Company policies for executive officers in effect
from time to time. The Executive shall be entitled to all other benefits associated with normal
full time employment in accordance with Company policies.

          (b) Executive shall be entitled to participate in the Company’s Change of Control Severance
Benefit Plan adopted August 10, 2005, as amended and restated on July 26, 2006 and further amended
on December 31, 2008 (the “Change in Control Plan”).

     7. Termination of Employment.

          (a) Notwithstanding any other provision of this Agreement, Executive’s employment may be
terminated, without such action constituting a breach of this Agreement:

               (i) By the Company, for “Cause,” as defined in Section 7(b) below;

               (ii) By the Company, upon 30 days’ notice to Executive, if he should be prevented by illness,
accident or other disability (mental or physical) from discharging his

2

 

duties hereunder for one or more periods totaling three consecutive months during any
twelve-month period;

               (iii) By the Executive with “Good Reason”, as defined in Section 7(c) below, within 30 days of
the occurrence or commencement of such Good Reason; and

               (iv) By the event of Executive’s death during the Term.

          (b) “Cause” shall mean (i) Executive’s willful failure or refusal to perform in all material
respects the services required of him hereby, (ii) Executive’s willful failure or refusal to carry
out any proper and material direction by the Board of Directors with respect to the services to be
rendered by him hereunder or the manner of rendering such services, (iii) Executive’s willful
misconduct in the performance of his duties hereunder, (iv) Executive’s commission of an act of
fraud, embezzlement or theft or a felony involving moral turpitude, (v) Executive’s use or
disclosure of Confidential Information (as defined in Section 10 of this Agreement), other than for
the benefit of the Company in the course of rendering services to the Company or (vi) Executive’s
engagement in any activity prohibited by Section 11 of this Agreement. For purposes of this
Section 7, the Company shall be required to provide Executive a specific written warning with
regard to any occurrence of subsections (b)(i), (ii) and (iii) above, which warning shall include a
statement of corrective actions and a 30 day period for the Executive to respond to and implement
such actions, prior to any termination of employment by the Company pursuant to Section 7(a)(i)
above.

          (c) “Good Reason” shall mean: (i) any significant diminution of Executive’s responsibilities
and authority, other than in connection with the termination of Executive’s employment for Cause,
without his consent, including, for the avoidance of doubt, requiring that Executive report to
someone other than the Board of Directors, or ceasing to be the President and Chief Executive
Officer of a public company; (ii) any breach of this Agreement by the Company; or (iii) Executive’s
annual base salary is reduced below the annual amount set forth in this Agreement.

     8. Separation Pay.

          (a) Subject to Executive’s execution and delivery to the Company of the Company’s standard
form of Separation and Release Agreement, the Company shall pay Executive an amount equal to the
Separation Pay as defined here, upon the occurrence of the applicable Separation Event, as defined
below, but in no case later than two and one-half months following the year in which the Separation
Event occurs. “Separation Pay” shall mean a lump sum amount equal to eighteen (18) months of
Executive’s then effective base salary. Separation Pay shall each be payable in accordance with
the Company’s payroll policy as constituted from time to time, and shall be subject to withholding
of all applicable federal, state and local taxes and any other deductions required by applicable
law. In the event of Executive’s death, the Company’s obligation to pay further compensation
hereunder shall cease forthwith, except that Executive’s legal representative shall be entitled to
receive his fixed compensation for the period up to the last day of the month in which such death
shall have occurred.

3

 

          (b) In addition to the Separation Pay, if Executive elects to continue participation in the
Company’s medical plans as provided by COBRA, Company will pay 100% of Executive’s COBRA premiums
for eighteen (18) months.

          (c) In the event of a Separation Event, as defined below, Executive shall be entitled to
accelerated vesting of 50% of all unvested stock options and restricted stock awards that Executive
held at the time of termination and Executive shall have right to exercise all outstanding vested
stock options held at termination (including those accelerated under this provision) during the
twelve (12) month period following the date of termination.

          (d) “Separation Event” shall mean:

               (i) the Company’s termination of Executive’s employment by the Company without Cause, during
the Term; or

               (ii) the termination of Executive’s employment by the Executive for Good Reason; or

               (iii) the Company terminates this Agreement under Section 3 above.

     9. All Business to be Property of the Company; Assignment of Intellectual Property.

          (a) Executive agrees that any and all presently existing business of the Company and all
business developed by him or any other employee of the Company including without limitation all
contracts, fees, commissions, compensation, records, customer or client lists, agreements and any
other incident of any business developed, earned or carried on by Executive for the Company is and
shall be the exclusive property of the Company, and (where applicable) shall be payable directly to
the Company.

          (b) Executive hereby acknowledges that any plan, method, data, know-how, research,
information, procedure, development, invention, improvement, modification, discovery, design,
process, work of authorship, documentation, formula, technique, trade secret or intellectual
property right whatsoever or any interest therein whether patentable or non-patentable, patents and
applications therefor, trademarks and applications therefor or copyrights and applications therefor
(herein sometimes collectively referred to as “Intellectual Property”) made, conceived, created,
invested, developed, reduced to practice and/or acquired by Executive solely or jointly with others
during the Term is the sole and exclusive property of the Company, as work for hire, and that he
has no personal right in any such Intellectual Property, Executive hereby grants to the Company
(without any separate remuneration or compensation other than that received by him from time to
time in the course of his employment) his entire right, title and interest throughout the world in
and to, all Intellectual Property, which is made, conceived, created, invested, developed, reduced
to practice and/or acquired by him solely or jointly with others during the Term.

     10. Confidentiality. Executive acknowledges his obligation of confidentiality with respect to
all proprietary, confidential and non-public information of the Company, including all Intellectual
Property. Executive shall not, either during the Term or thereafter, use for any

4

 

purpose other than the furtherance of the Company’s business, or disclose to any person other
than a person with a need to know such confidential, proprietary or non-public information for the
furtherance of the Company’s business who is obligated to maintain the confidentiality of such
information, any information concerning any Intellectual Property, or other confidential,
proprietary or non-public information of the Company, whether Executive has such information in his
memory or such information is embodied in writing or other tangible form. All originals and copies
of any of the foregoing, however and whenever produced, shall be the sole property of the Company.
Upon the termination of Executive’s employment in any manner or for any reason, Executive shall
promptly surrender to the Company all copies of any of the foregoing, together with any documents,
materials, data, information and equipment belonging to or relating to the Company’s business and
in his possession, custody or control, and Executive shall not thereafter retain or deliver to any
other person any of the foregoing or any summary or memorandum thereof.

     11. Non-Competition Covenant. As the Executive has been granted options to purchase stock in
the Company and as such has a financial interest in the success of the Company’s business and as
Executive recognizes that the Company would be substantially injured by Executive competing with
the Company, Executive agrees and warrants that within the United States, he will not, unless
acting with the Company’s express prior written consent, directly or indirectly, while an employee
of the Company and during the Non-Competition Period, as defined below, own, operate, join,
control, participate in, or be connected as an officer, director, employee, partner, stockholder,
consultant or otherwise, with any business or entity which competes with the business of the
Company (or its successors or assigns) as such business is now constituted or as it may be
constituted at any time during the Term of this Agreement; provided, however, that Executive may
own, and exercise rights with respect to, less than one percent of the equity of a publicly traded
company. The “Non-Competition Period” shall be a period of eighteen (18) months following
termination of employment.

     Executive and the Company are of the belief that the period of time and the area herein
specified are reasonable in view of the nature of the business in which the Company is engaged and
proposes to engage, the state of its business development and Executive’s knowledge of this
business; however, if such period or such area should be adjudged unreasonable in any judicial
proceeding, then the period of time shall be reduced by such number of months or such area shall be
reduced by elimination of such portion of such area, or both, as are deemed unreasonable, so that
this covenant may be enforced in such area and during such period of time as is adjudged to be
reasonable.

     12. Non-Solicitation Agreement. Executive agrees and covenants that he will not, unless
acting with the Company’s express written consent, directly or indirectly, during the Term of this
Agreement or during the Non-Competition Period (as defined in Section 11 above) solicit, entice or
attempt to entice away or interfere in any manner with the Company’s relationships or proposed
relationships with any customer, officer, employee, consultant, proposed customer, vendor,
supplier, proposed vendor or supplier or person or entity or person providing or proposed to
provide research and/or development services to, on behalf of or with the Company.

     13. Notices. All notices and other communications hereunder shall be in writing and shall be
deemed to have been given on actual receipt after having been delivered by hand, mailed

5

 

by first class mail, postage prepaid, or sent by Federal Express or similar overnight delivery
services, as follows: (a) if to Executive, at the address shown at the head of this Agreement, or
to such other person(s) or address(es) as Executive shall have furnished to the Company in writing
and, if to the Company, to it at the address set forth in the preamble hereto with a copy to
Jennifer L. Miller, Esq., Ballard Spahr Andrews & Ingersoll, LLP, 1735 Market Street,
51st Floor, Philadelphia, Pennsylvania 19103, or to such other person(s) or address(es)
as the Company shall have furnished to Executive in writing.

     14. Assignability. In the event of a change of control (as defined in the Change of Control
Plan), the terms of this Agreement shall inure to the benefit of, and be assumed by, the successor
to the Company or the acquiring person in such change in control transaction. This Agreement shall
not be assignable by Executive, but it shall be binding upon, and to the extent provided in Section
8, shall inure to the benefit of, his heirs, executors, administrators and legal representatives.

     15. Entire Agreement. This Agreement contains the entire agreement between the Company and
Executive with respect to the subject matter hereof and there have been no oral or other prior
agreements of any kind whatsoever as a condition precedent or inducement to the signing of this
Agreement or otherwise concerning this Agreement or the subject matter hereof. Notwithstanding the
foregoing, Executive acknowledges that he is required as a condition to continued employment, to
comply at all times, with the Company’s policies affecting employees, including the Company’s
published Code of Ethics, as in effect from time to time. Executive also acknowledges that the
Non-Disclosure and Non-Competition Agreement he signed upon becoming an employee remains in full
force and effect despite the changes in his employment status with the Company.

     16. Equitable Relief. Executive recognizes and agrees that the Company’s remedy at law for
any breach of the provisions of Sections 9, 10, 11 or 12 hereof would be inadequate, and he agrees
that for breach of such provisions, the Company shall, in addition to such other remedies as may be
available to it at law or in equity or as provided in this Agreement, be entitled to injunctive
relief and to enforce its rights by an action for specific performance. Should Executive engage in
any activities prohibited by this Agreement, he agrees to pay over to the Company all compensation,
remuneration or monies or property of any sort received in connection with such activities; such
payment shall not impair any rights or remedies of the Company or obligations or liabilities of
Executive which such parties may have under this Agreement or applicable law.

     17. Amendments. This Agreement may not be amended, nor shall any change, waiver,
modification, consent or discharge be effected except by written instrument executed by the Company
and Executive.

     18. Severability. If any part of any term or provision of this Agreement shall be held or
deemed to be invalid, inoperative or unenforceable to any extent by a court of competent
jurisdiction, such circumstances shall in no way affect any other term or provision of this
Agreement, the application of such term or provision in any other circumstances, or the validity or
enforceability of this Agreement. Executive agrees that the restrictions set forth in Sections 11
and 12 above (including, but not limited to, the geographical scope and time period of

6

 

restrictions) are fair and reasonable and are reasonably required for the protection of the
interests of the Company and its affiliates. In the event that any provision of Section 11 or 12
relating to time period and/or areas of restriction shall be declared by a court of competent
jurisdiction to exceed the maximum time period or areas such court deems reasonable and
enforceable, said time period and/or areas of restriction shall be deemed to become and thereafter
be the maximum time period and/or areas which such court deems reasonable and enforceable.

     19. Paragraph Headings. The paragraph headings used in this Agreement are included solely for
convenience and shall not affect, or be used in connection with, the interpretation hereof.

     20. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the law of the State of Delaware, without regard to the principles of conflict of
laws thereof.

     21. Resolution of Disputes. With the exception of proceedings for equitable relief brought
pursuant to Section 16 of this Agreement, any disputes arising under or in connection with this
Agreement including, without limitation, any assertion by any party hereto that the other party has
breached any provision of this Agreement, shall be resolved by arbitration, to be conducted in
Baltimore, Maryland, in accordance with the rules and procedures of the American Arbitration
Association. The parties shall bear equally the cost of such arbitration, excluding attorneys’
fees and disbursements which shall be borne solely by the party incurring the same; provided,
however, that if the arbitrator rules in favor of Executive on at least one material component of
the dispute, Company shall be solely responsible for the payment of all costs, fees and expenses
(including without limitation Executive’s reasonable attorney’s fees and disbursements) of such
arbitration. The Company shall reimburse Executive for any such fees and expenses incurred by
Executive in any calendar year within a reasonable time following Executive’s submission of a
request for such reimbursement, which in no case shall be later than the end of the calendar year
following the calendar year in which such expenses were incurred. Executive shall submit any such
reimbursement request no later than the June 30th next following the calendar year in
which the fees and expenses are incurred. In the event the arbitrator rules against Executive,
Executive shall repay the Company the amount of such reimbursed expenses no later than 180 days
following the date as of which such arbitrator’s decision becomes final. The provisions of this
Section 21 shall survive the termination for any reason of the Term (whether such termination is by
the Company, by Executive or upon the expiration of the Term).

     22. Indemnification; Insurance. The Executive shall be entitled to liability and expense
indemnification, advancement of expenses and reimbursement to the fullest extent permitted by the
Company’s current By-laws and Certificate of Incorporation, whether or not the same are
subsequently amended. During the Term, the Company will use commercially reasonable efforts to
maintain in effect directors’ and officers’ liability insurance no less favorable to Executive than
that in effect as of the date of this Agreement.

     23. Survival. Sections 8 through 22 shall survive the expiration or earlier termination of
this Agreement, for the period and to the extent specified therein.

7

 

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

	 	 	 	 	 
	 	NOVAVAX, INC.

 	 
	
[SEAL]

 	 
	 	By:  	/s/ John Lambert
 	 
	 	 	John Lambert 	 
	 	 	Chairman of the Board of Directors 	 
	 
	 	 	 
	 	                                                         /s/ Rahul Singhvi
 	 
	 	Rahul Singhvi 	 
	 	 	 
	 

8

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