Document:

EX-10.3

 Exhibit 10.3 

EMPLOYMENT AGREEMENT 
 BETWEEN

 MULTI-COLOR CORPORATION 
 AND

 DAVID BUSE 
 Effective as of
January 1, 2016 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 1. Employment
	  	 	1	  
		
	 2. Term of Agreement
	  	 	1	  
		
	 3. Scope of Employment; Location
	  	 	1	  
		
	 4. Compensation
	  	 	2	  
		
	 4.1 Base Salary
	  	 	2	  
		
	 4.2 Bonus
	  	 	2	  
		
	 4.3 Restricted Stock Grant; Stock Option and Restricted Stock Awards
	  	 	2	  
		
	 4.5 Retirement Plan
	  	 	2	  
		
	 4.6 Welfare and Other Benefit Plans
	  	 	2	  
		
	 4.7 Expenses
	  	 	3	  
		
	 4.8 Automobile Allowance
	  	 	3	  
		
	 4.9 Vacation
	  	 	3	  
		
	 4.10 Indemnity
	  	 	3	  
		
	 5. Confidentiality, Non-competition and Other Covenants
	  	 	3	  
		
	 5.1 Non-Disclosure of Confidential Materials, Information and Intellectual Property
	  	 	3	  
		
	 5.2 Non-Solicitation of the Company’s Employees
	  	 	4	  
		
	 5.3 Covenant Against Unfair Competition
	  	 	4	  
		
	 5.4 Return of Confidential Materials and Information
	  	 	4	  
		
	 5.5 Irreparable Harm
	  	 	4	  
		
	 5.6 Cumulative Remedies; Enforceability
	  	 	4	  
		
	 5.7 Reasonableness of Scope and Duration
	  	 	5	  
		
	 5.8 Future Employer
	  	 	5	  
		
	 5.9 Time Periods
	  	 	5	  
		
	 6. Termination of Employment
	  	 	5	  
		
	 6.1 Termination
	  	 	5	  
		
	 6.2 Date of Termination
	  	 	8	  
		
	 6.3 Notice of Termination
	  	 	9	  
		
	 7. Obligations of the Company Upon Termination.
	  	 	9	  
		
	 7.1 Termination for Other Than Cause and Executive’s Death or Disability; and for Good Reason
	  	 	9	  
		
	 7.2 Termination for Cause; or Other Than for Good Reason
	  	 	10	  

 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	Page	 
	 7.3 Termination Due to Executive’s Death
	  	 	11	  
		
	 7.4 Termination Due to Executive’s Disability
	  	 	12	  
		
	 8. Arbitration
	  	 	12	  
		
	 9. Miscellaneous Provisions
	  	 	13	  
		
	 9.1 Binding Effect; Delegation of Duties Prohibited; Survival
	  	 	13	  
		
	 9.2 Amendment; Waiver
	  	 	13	  
		
	 9.3 Entire Agreement
	  	 	13	  
		
	 9.4 Exemption from, or Compliance with, Section 409A
	  	 	14	  
		
	 9.5 Governing Law
	  	 	14	  
		
	 9.6 Headings; Section References; Construction
	  	 	14	  
		
	 9.7 Notices
	  	 	14	  
		
	 9.8 Policies, Regulations and Guidelines for Executives
	  	 	15	  
		
	 9.9 Severability and Reformation of Provisions
	  	 	15	  
		
	 9.10 Taxes
	  	 	15	  
		
	 9.11 Full Settlement
	  	 	15	  

 EMPLOYMENT AGREEMENT 

This Employment Agreement (“Agreement”) is effective the 1st day of January,
2016 by and between Multi-Color Corporation, an Ohio corporation (“Company”), and David Buse, an individual (“Executive”). 

RECITALS: 

A. Company desires to retain the services of Executive as its Chief Operating Officer – Wine and Spirits, and Executive desires to render
such services to the Company. 
 B. The parties hereto desire to set forth the terms and conditions of the employment relationship between
the Executive and the Company. 
 AGREEMENT: 

NOW, THEREFORE, the parties hereby agree as follows: 

1. EMPLOYMENT. The Company hereby employs Executive for the “Term” (as defined in
Section 2), and Executive accepts employment by the Company and agrees to serve the Company during the Term, upon the terms and conditions hereinafter set forth. 

2. TERM OF AGREEMENT. This Agreement shall commence on January 1, 2016
and shall continue until terminated in accordance with this Agreement. This Agreement shall be terminable at will, at any time, by either party, with or without cause, subject to the provisions set forth in Section 5, below. Unless otherwise
expressly provided herein, upon the termination of Employee’s employment, the Company shall pay Employee his salary earned through the Termination Date, Employee shall be entitled to all benefits accrued or vested through the Termination Date
pursuant to all fringe benefit plans set forth in this Agreement, and the Company shall not be obligated to pay, and Employee shall not be entitled to receive, any other compensation, payments or consideration of any kind or nature. The
“Term” shall refer to the period of time during which the Executive is employed pursuant to this Agreement. 
 3.
SCOPE OF EMPLOYMENT; LOCATION. During the Term of this Agreement, Executive shall serve as Chief Operating Officer – Wine and Spirits of the Company and agrees
to devote his full attention and time to the business and affairs of the Company as may be assigned by the Company’s Chief Executive Officer or the Board of Directors (“Board”) and to use the Executive’s best efforts to perform
such responsibilities in a professional manner. Executive shall have all authority, duties and responsibilities customarily exercised by an individual serving as Chief Operating Officer – Wine and Spirits in a corporation of the size and nature
of the Company and such other authority, duties and responsibilities as are delegated to him by the Board or the Company’s Chief Executive Officer from time to time. Notwithstanding the foregoing, it shall not be a violation of this Agreement
for the Executive to (A) serve on corporate, trade association, civic or charitable boards or committees, (B) deliver lectures, fulfill speaking engagements or teach at educational institutions, or (C) manage personal investments and
affairs, so long as such activities do not significantly interfere with the performance of the 

 
Executive’s responsibilities as an employee of the Company in accordance with this Agreement. During the Term of this Agreement, Executive shall principally perform his duties at the
Company’s headquarters’ office located in Napa, California, except in the event Executive agrees in writing to another location. 

4. COMPENSATION. 

4.1 Base Salary. During the Term of this Agreement, the Executive shall receive an Annual Base Salary. Executive’s beginning
Annual Base Salary shall be Four Hundred Thousand Dollars (U.S.$400,000). The Annual Base Salary shall be evaluated and reviewed by the Compensation Committee of the Board annually. The Annual Base Salary shall be reviewed by the Compensation
Committee of the Board annually based upon Executive’s performance, pertinent salary survey information and such other information as the Compensation Committee deems appropriate, but may not be adjusted downward without the Executive’s
written consent. After any such adjustment, the term “Annual Base Salary” as used in this Agreement shall thereafter refer to such amount as adjusted. The Annual Base Salary shall be paid no less frequently than in equal bi-weekly
installments. 
 4.2 Bonus. Beginning April 1, 2016 and continuing throughout the Term of this Agreement,
Executive will continue to be eligible to participate in the Management Incentive Compensation Program, subject to the terms and conditions as specified in the plan. The incentive compensation program is based on meeting certain financial targets as
established by, and in the sole discretion of, the Board or by the Compensation Committee of the Board on an annual basis. The bonus target, as a percent of base annual salary, is 50%, with a bonus range between 25% and 75% of salary. If financial
targets are met between the minimum, target and maximum brackets, the payout is calculated on a prorated basis between the two brackets that apply. Executive shall be paid his Bonus when other executives of the Company are paid their annual bonuses,
but in no event beyond the last day on which such payment would qualify as a short-term deferral under Treasury Regulation § 1.409A 1(b)(4). 

4.3 Restricted Stock Grant; Stock Option and Restricted Stock Awards. During the Term of this Agreement, Executive may
receive restricted stock or stock option awards, as determined by the Board or its committees from time to time. 
 4.5
Retirement Plan. During the Term of this Agreement, the Executive shall be eligible to participate in all savings and retirement plans, practices, policies and programs to the extent applicable generally to other executives of the Company,
including, without limitation, 401(k) retirement savings, or any other supplemental retirement compensation plans. 

4.6 Welfare and Other Benefit Plans. During the Term of this Agreement, the Executive and/or the Executive’s family, as the
case may be, shall be eligible for participation in and shall receive all other benefits (except for those benefits which have otherwise been provided to Executive herein) under welfare, fringe, incentive and other similar benefit plans, practices,
policies and programs provided by the Company (including, without limitation, medical, prescription drug, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) to the extent applicable
generally to other executives of the Company. 

  
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 4.7 Expenses. During the Term of this Agreement, the Executive shall be entitled to
receive prompt reimbursement for all reasonable business expenses incurred by the Executive and documented as required by regulations of the Internal Revenue Service and policies of the Company. 

4.8 Automobile Allowance. During the Term of this Agreement, the Executive shall be paid each month an automobile allowance of
Five Hundred Dollars ($500.00). 
 4.9 Vacation. During the Term of this Agreement, the Executive shall be
entitled to earn and use vacation pursuant to the Company’s vacation policy, and in conformance with applicable state law, as in effect from time to time for executives of the Company.  

4.10 Indemnity. The Executive shall be indemnified and held harmless by the Company against claims arising in connection with
the Executive’s status as an employee, officer, director or agent of the Company or any of its subsidiaries or affiliates. Such indemnification shall be established to the level of the greatest indemnification permitted by Ohio law for
corporate employees, officers or directors, and such indemnification shall continue as to the Executive even if he has ceased to be an employee, officer, director or agent of the Company or other entity and shall inure to the benefit of the
Executive’s heirs and legal representatives. In furtherance of this protection, during the Executive’s employment and for a period of at least six years thereafter, the Company shall continue to provide officers’ and directors’
liability insurance covering Executive in at least the amount of coverage in fiscal 2014 for such purposes and in any event provide at least as much coverage for the Executive as the Company provides for its other executives or directors of the
Company. Nothing in this Agreement shall operate to limit or extinguish any right to indemnification, advancement of expenses or contribution that the Executive (or his heirs and legal representatives) would otherwise have (including, without
limitation, by agreement or under applicable law). 
 5. CONFIDENTIALITY,
NON-COMPETITION AND OTHER COVENANTS. In consideration of Company’s employment of Executive, Executive does covenant and agree with the Company as
follows: 
 5.1 Non-Disclosure of Confidential Materials, Information and Intellectual Property. The Executive
acknowledges that as a leader in the highly-competitive businesses of printing labels, including but not limited to, inmold, pressure sensitive, heat transfer, cut and stack and shrink sleeve label technologies, the Company has developed, acquired
and implemented confidential intellectual property, materials and information, proprietary strategies and programs, which it has taken steps to protect as trade secrets (as defined in Ohio’s Uniform Trade Secrets Act, OHIO
REV. CODE §§ 1333.61 - 1333.69) and which include copyrighted materials, patent materials, expansion plans, market research, sales systems, marketing programs, product development strategies, budgets, pricing
and cost strategies, identity and requirements of accounts, and other non-public proprietary information regarding customers and the employees of the Company or of its customers or non public proprietary information regarding the Company’s
business or the business of the Company’s customers (collectively “Confidential Materials and Information”). In performing duties for the Company, the Executive regularly will be exposed to and work with the Company’s
Confidential Materials and Information. The Executive acknowledges that such Confidential Materials and Information are critical to the Company’s success and that the Company has invested substantial money in developing the 

  
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Company’s Confidential Materials and Information. While the Executive is employed by the Company, and after such employment ends for any reason, the Executive will not reproduce, publish,
disclose, use, reveal, show, or otherwise communicate to any person or entity any Confidential Materials and Information of the Company unless specifically assigned or directed by the Company to do so or unless it shall have become public knowledge
(other than by acts by the Executive or representatives of the Executive in violation of this Agreement). The covenant in this Section 5.1 has no temporal, geographical or territorial restriction or limitation, and it applies wherever the
Executive may be located. 
 5.2 Non-Solicitation of the Company’s Employees. For a period of twenty-four
(24) months after the termination of his employment, the Executive will not actively solicit, either directly or indirectly through any third person, any other employee of the Company to terminate his or her employment with the Company without
the written consent of the Chairman of the Board. 
 5.3 Covenant Against Unfair Competition. Employee
recognizes that unauthorized use or disclosure of Confidential Material and Information by Executive would harm the Company. Executive further recognizes that the Company has a legitimate interest in preventing its employees from exploiting the
customer relationships and goodwill developed at the Company’s expense and in its name. Therefore, while the Executive is employed by the Company, and for twelve (12) months after Executive’s employment ends for any reason, the
Executive will not, either directly or indirectly call on, solicit or communicate with any of the Company’s customers or prospects for the purpose of obtaining such customer’s or prospect’s business. As used in this Agreement, the
term “customer” means a business entity (including representatives of such business entity) to which the Company provided goods or services at any time in the prior twenty-four (24) months before the termination or expiration of this
Agreement, and the term “prospect” means a business entity (including representatives of such business entity) to which, at any time in the previous twenty-four (24) months before the termination or expiration of this Agreement, the
Company made a written proposal for providing goods or services.  
 5.4 Return of Confidential Materials and
Information. The Executive agrees that whenever the Executive’s employment with the Company ends for any reason, all documents, including information stored in electronic format, containing or referring to the Company’s
Confidential Materials and Information that may be in the Executive’s possession, or over which the Executive may have control, will be delivered by the Executive to the Company immediately, with no request being required. 

5.5 Irreparable Harm. The Executive agrees that a breach of any covenant in this Section 5 will cause the Company
irreparable injury and damage for which the Company has no adequate monetary remedy, and the Executive further agrees that if the Company claims a breach of any such covenant, the Company will be entitled to seek an immediate restraining order and
injunction to prevent such violation or continued violation. 
 5.6 Cumulative Remedies;
Enforceability. 
 (a) In the event of Executive’s breach or threatened breach of the covenants set forth
in this Section 5, the parties acknowledge that the Company will suffer irreparable  

  
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harm and the Company will be entitled to an injunction restraining Executive from committing such breach. Executive affirmatively waives any requirement that the Company post any bond,
demonstrate the likelihood of irreparable harm to the Company, or demonstrate that any actual damages will be suffered by the Company or any other entity seeking enforcement hereof as a result of Executive’s breach of any of the covenants set
forth in this Section 5. 
 (b) The covenants and agreements contained in this Section 5 will be construed as
independent of each other, and the existence of any claim or cause of action by Executive against the Company, whether predicated on this Agreement or otherwise, will not constitute a defense to the Company’s enforcement of such covenants, and
they shall be construed as separate covenants and agreements. If any court shall finally determine that the restraints provided for in any such covenants and agreements exceed the maximum area, activity or time such court deems reasonable and
enforceable, said area, activity or time shall be deemed to become and thereafter shall be the maximum area, activity or time which such court deems reasonable and enforceable, and such covenants and agreements shall be enforced as to such reduced
area, activity or time. 
 (c) Nothing herein contained will be construed as prohibiting the Company from
pursuing any other remedies available to it at law or in equity for such breach or threatened breach, including the recovery of money damages. 

5.7 Reasonableness of Scope and Duration. Executive acknowledges that the restrictions contained in this Section 5 are
reasonable and necessary to protect the legitimate interests of the Company and that the Company would not have entered into this Agreement in the absence of such restrictions. Executive understands and agrees that the covenants and agreements
contained in this Section 5 are, taken as a whole, reasonable in connection with the activities covered, their geographic scope and duration. Executive understands that the provisions of this Agreement have been carefully designed to restrict
Executive’s activities to the minimum extent which is consistent with the Company’s requirements. Executive has carefully considered these restrictions, and Executive confirms that they will not unduly restrict Executive’s ability to
obtain a livelihood.  
 5.8 Future Employer. If applicable, Executive shall inform any prospective or future
employer of all of the restrictive covenants and agreements contained in this Agreement, and provide such employer with a copy of such provisions, prior to the commencement of that employment. 

5.9 Time Periods. All time periods set forth in this Section 5 shall be extended by the duration of any period during which
Executive is in violation of any provision of this Section 5. 
 6. TERMINATION OF
EMPLOYMENT 
 6.1 Termination. Executive’s employment with the Company
shall terminate upon the occurrence of the first of the following events: 
 (a) Death. Upon the death of Executive. 

  
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 (b) Disability. If the Disability of the Executive has occurred during the
Executive’s employment, the Company may give written notice to the Executive in accordance with this Agreement of its intention to terminate the Executive’s employment. In such event, the Executive’s employment with the Company shall
terminate effective on the Disability Commencement Date. As used in this Agreement, “Disability” shall mean that the Executive, (i) in the opinion of a physician, is unable to engage in any substantial gainful activity by reason of
any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or
mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan
covering employees of the Company, or (iii) is determined to be totally disabled by the Social Security Administration, or (iv) is determined to be disabled in accordance with a disability insurance program, provided that the definition of
disability applied under such disability insurance program complies with the requirements of (i) or (ii) above. Additionally, as used in this Agreement, “Disability Commencement Date” shall be the thirtieth (30th) day after notice is received by Executive pursuant to this Section 6.1(b) that he is under a Disability, provided that, within the thirty (30) days after such receipt, the Executive
shall not have returned to perform his duties hereunder. 
 (c) Cause. The Company terminates the Executive for Cause or for
any reason other than for Cause. As used in this Agreement, “Cause” with respect to Executive’s termination from employment, shall mean any of the following: 

(1) the Executive’s failure to cure the Executive’s material breach of this Agreement or any Company
policy, regulation or guideline; 
 (2) the Executive’s appropriation of a material business opportunity
of the Company, including securing any material personal profit in connection with any transaction entered into on behalf of the Company. This provision shall not include opportunities communicated by the Executive to the Company which were rejected
or on which the Company took no timely action; 
 (3) the Executive’s misappropriation of any of the
Company’s funds or property; 
 (4) the Executive’s conviction of or entering of a guilty plea or a
plea of no contest with respect to, a felony, or any other crime which materially and adversely affects the business of the Company or Executive’s ability to carry out his duties hereunder and with respect to which imprisonment for a term in
excess of six (6) months is a possible punishment; 
 (5) the Executive’s conduct, or lack thereof,
which results in material economic damage to the Company or 

  
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its reputation. It is expressly understood that if Executive’s good faith belief was that his conduct or lack thereof was in, or not opposed to, the best interest of the Company, then
“Cause” shall not be satisfied hereunder; or 
 (6) in the event there is a Change in Control (as
used in this Agreement, a “Change in Control” shall have the meaning ascribed thereto in the Company’s 2012 Stock Incentive Plan as in effect on the date this Agreement becomes effective), for a period of twelve (12) months
following the date of such Change in Control, the term “Cause” shall not include items (1) through (5) above and shall only mean the following: 

(A) the Executive materially violates any Company policy, regulation or guideline which Executive fails to cure
within sixty (60) days following written notice of such violation by the Company to the Executive; or 

(B) the Executive’s conviction or entering of a guilty plea or a plea of no contest with respect to
fraudulent or illegal activities which are materially injurious to the Company, monetarily or otherwise. 
 No termination of the
Executive’s employment hereunder by the Company for Cause shall be effective as a termination for Cause unless the provisions of this paragraph shall first have been complied with. The Executive shall be given a Notice of Termination by the
Board. The Executive shall have sixty (60) days after receipt of such notice to cure such alleged violation. If he fails to cure such alleged violation within such sixty (60)-day period, the Executive shall then be entitled to a hearing before
the Board. If after such hearing, the Board gives a second Notice of Termination to the Executive confirming that a majority of the members of the Board that are not then employed as employees of the Company voted after the hearing to terminate him
for Cause, the Executive’s employment shall thereupon be terminated for Cause. 
 (d) Good Reason. The Executive
terminates employment for Good Reason within two (2) years following the initial existence of the condition constituting Good Reason or for any other reason (including without Good Reason). As used in this Agreement, “Good Reason”
with respect to the termination from employment of Executive shall mean any of the following: 
 (1) the
Company’s material breach of this Agreement; 
 (2) the Company materially altering or materially
impairing the Executive’s authority, duties or responsibilities without his written consent; 
 (3) any
reduction in Executive’s then current Annual Base Salary, reduction in Executive’s target Bonus 

  
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opportunity to a level below fifty percent (50%) of the then current Annual Base Salary, or material diminution of benefits provided under Company plans which are applicable to Executive
without his written consent; 
 (4) the Company requiring the Executive to be based at any office or location
other than Napa, California (or other agreed upon location) without the Executive’s prior written consent; or 

(5) in the event there is a Change in Control, for a period of twelve (12) months following the date of such
Change in Control, the term “Good Reason” shall include, in addition to items (1) through (6) above, the following: 

(A) (i) the assignment to the Executive of any duties inconsistent in any material adverse respect with the
Executive’s position, authority or responsibilities, or (ii) any other material adverse change in such position, including title, authority or responsibilities in each case without the prior written consent of Executive; or 

(B) failure of the Company to obtain the assumption in writing of its obligations under this Agreement by any
successor to all or substantially all of the business or assets of the Company no later than the closing of such transaction, unless such assumption occurs by operation of law. 

No termination of the Executive’s employment hereunder by the Executive for Good Reason shall be effective as a
termination for Good Reason unless the provisions of this paragraph shall first have been complied with. The Board shall be given a Notice of Termination by the Executive within ninety (90) days of the initial existence of the violation. The
Company shall have sixty (60) days after receipt of the Notice of Termination to fully cure such alleged violation. 
 6.2 Date
of Termination. As used in this Agreement, “Date of Termination” means: (i) if the Executive’s employment is terminated by the Company for Cause, the Date of Termination shall be the date on which the Executive receives
the Notice of Termination described in Section 6.1(c) that a majority of the members of the Board that are not then employees of the Company voted after the hearing to terminate him for Cause; (ii) if the Executive’s employment is
terminated by the Executive for Good Reason, the Date of Termination shall be the date on which the Notice of Termination is received by the Company, or such later date as may be specified therein, unless the Company has fully cured all grounds for
such termination within sixty (60) days after the Executive gives such notice; (iii) if the Executive’s employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the
Company notifies the Executive of such termination; (vi) if the Executive’s employment is terminated by the Executive for other than Good Reason, the Date of Termination shall be the date on which the Company receives the Notice of
Termination; and (v) if the Executive’s employment is terminated by reason of death or Disability, the Date of Termination shall be the date of death of the Executive or the Disability Commencement Date. 

  
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 6.3 Notice of Termination. As used in this Agreement, “Notice of
Termination” shall mean a written notice which: (i) indicates the specific termination provision in this Agreement relied upon; (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the provision so indicated; and (iii) if the Date of Termination is other than the date of receipt of such notice, specifies the termination date (which date shall be not
more than thirty (30) days after the giving of such notice). 
 7. OBLIGATIONS OF THE
COMPANY UPON TERMINATION. 
 7.1 Termination for Other Than Cause and
Executive’s Death or Disability; and for Good Reason. If the Executive’s employment is terminated (i) by Company for any reason other than for Cause; (ii) as a result of Executive’s death or Disability; or
(iii) by the Executive for Good Reason: 
 (a) The Company shall pay, or commence to be paid, as applicable, all accrued
wages through the Date of Termination in compliance with state law; 
 (b) The Company shall pay, or commence to be paid, as
applicable, to the Executive any compensation previously deferred by the Executive and any other non-qualified benefit plan balances to the extent not previously paid, in accordance with the terms of deferral or the other non-qualified plan, as
applicable; 
 (c) The Company shall pay an amount, paid in accordance with the Company’s regular payroll processing
cycle, commencing on the next payroll date after the Executive’s Date of Termination, equal to one (1) times the Executive’s Annual Base Salary. Notwithstanding the foregoing provisions of this Subsection (c), to the extent the
amounts payable under this Subsection do not exceed the Separation Pay Exemption Amount (defined below), such amounts shall be paid in accordance with the foregoing provisions of this Subsection (c). The amount payable that is in excess of the
Separation Pay Exemption Amount shall be paid as follows: (i) no portion of the excess amount may be paid, or commence to be paid, earlier than six (6) months after the date the Executive separates from service, and (ii) the
installment payments that would have otherwise been paid during such six (6) month period shall be accumulated and paid on the first day of the seventh month following the date the Employee separates from service and the remaining installments
shall be paid in accordance with the foregoing provisions of this Subsection (c). For purposes of this Subsection (c), the term “Separation Pay Exemption Amount” means an amount equal to two (2) times the lesser of (x) the sum of
the Executive’s annualized compensation based upon the annual rate of pay for services provided to the Company for the Executive’s taxable year preceding the taxable year in which the Executive separates from service (adjusted for any
increase during that year that was expected to continue indefinitely if the Executive had not separated from service); or (y) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the
Internal Revenue Code for the year in which the Executive separates from service. In consideration of Executive’s receipt of severance benefits as described in this Section 7.1(c), Executive agrees, not later than 60 days following the
Executive’s Date of Termination, to execute and deliver a separation agreement and release in form and substance reasonably satisfactory to the Company (the “Release”). If 

  
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Executive fails to execute and deliver the Release, as required, the severance payments provided in this Section 7.1(c) shall cease; 

(d) Except as otherwise prohibited in the applicable option/incentive plans, all stock option and restricted stock awards that
were outstanding immediately prior to the Date of Termination shall become fully and immediately exercisable and/or vested, as the case may be, with no further restrictions on sale or transferability other than those mandated by law, and each
nonqualified stock option (including already vested nonqualified stock options) shall remain exercisable through the latest date upon which the nonqualified stock option could have expired by its original terms, and each incentive stock option
(including already vested incentive stock options) shall remain exercisable for 90 days following the Date of Termination unless such stock option no longer qualifies as an incentive stock option as a result of such accelerated vesting and
exercisability, in which case the portion of the such stock option that no longer qualifies shall remain exercisable through the latest date upon which the stock option could have expired by its original terms; 

(e) For one (1) year after the Date of Termination, or such longer period as may be provided by the terms of the
appropriate plan, program, practice or policy, the Company shall continue to provide those benefits to the Executive and/or the Executive’s family that would have been provided to them in accordance with the welfare plans, programs, practices
and policies described in Section 4.4 of this Agreement if the Executive’s employment had not been terminated; provided, however, that the benefits shall be offset by any benefits provided by any subsequent employment of Executive
(determined on a benefit-by-benefit basis). Executive agrees to describe all benefits which his subsequent employer has agreed to provide him, including any changes to such benefits during the one (1) year period described in this Subsection
7.1(e). To the extent any of the foregoing benefits are not exempt from the requirements of Section 409A of the Internal Revenue Code, the amount of expenses eligible for reimbursement (other than the reimbursement of expenses referred to in
Section 105(b) of the Internal Revenue Code (relating to medical reimbursement arrangements)), or in-kind benefits provided, during the Executive’s taxable year may not affect the expenses eligible for reimbursement, or the in-kind
benefits to be provided, in any other taxable year; 
 (f) To the extent not previously paid or provided, the
Company shall timely pay or provide to the Executive any other amounts or benefits required to be paid or provided or which the Executive is entitled to receive under any plan, program, policy, contract or agreement of the Company. 

 7.2 Termination for Cause; or Other Than for Good Reason. If the Executive’s employment is terminated
(i) by the Company for Cause; or (ii) by the Executive without Good Reason, this Agreement shall terminate without further obligations to the Executive other than all of the following: 

(a) The Company shall pay, or commence to be paid, as applicable, all accrued wages through the Date of Termination in
compliance with state law. 
 (b) The Company shall pay, or commence to be paid, as applicable, to the
Executive any compensation previously deferred by the Executive and any other non-qualified 

  
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benefit plan balances to the extent not previously paid, in accordance with the terms of deferral or the other non-qualified plan, as applicable. 

(c) If the Executive terminates employment without Good Reason through a plan of retirement acceptable to the Company, which
will not be unreasonably withheld, except as otherwise prohibited in the applicable option/incentive plans, all stock option and restricted stock awards that were outstanding immediately prior to the Date of Termination shall become fully and
immediately exercisable and/or vested, as the case may be, with no further restrictions on sale or transferability other than those mandated by law, and each nonqualified stock option (including already vested nonqualified stock options) shall
remain exercisable through the latest date upon which the nonqualified stock option could have expired by its original terms, and each incentive stock option (including already vested incentive stock options) shall remain exercisable for 90 days
following the Date of Termination unless such stock option no longer qualifies as an incentive stock option as a result of such accelerated vesting and exercisability, in which case the portion of the such stock option that no longer qualifies shall
remain exercisable through the latest date upon which the stock option could have expired by its original terms; and 

(d) To the extent not previously paid or provided, the Company shall timely pay or provide to the Executive any other amounts
or benefits required to be paid or provided or which the Executive is entitled to receive under any plan, program, policy or practice or contract or agreement of the Company. 

7.3 Termination Due to Executive’s Death. If the Executive’s employment is terminated by reason of the
Executive’s death, this Agreement shall terminate without further obligations to the Executive’s legal representatives under this Agreement, other than all of the following: 

(a) The Company shall pay to the Executive’s legal representative in a lump sum in cash within 30 days after the Date of
Termination the aggregate of Executive’s Annual Base Salary through the Date of Termination to the extent not previously paid;  

(b) The Company shall pay, or commence to be paid, as applicable, to the Executive’s legal representative any compensation
previously deferred by the Executive and any other non-qualified benefit plan balances to the extent not previously paid, in accordance with the terms of deferral or the other non-qualified plan, as applicable. 

(c) Except as otherwise prohibited in the applicable option/incentive plans, all stock option and restricted stock awards that
were outstanding immediately prior to the Date of Termination shall become fully and immediately exercisable and/or vested, as the case may be, with no further restrictions on sale or transferability other than those mandated by law, and each stock
option (including already vested stock options) shall remain exercisable by Executive’s legal representative for 12 months following the Date of Termination (but in no event beyond the latest date upon which the stock option could have expired
by its original terms); 
 (d) For one year after the Date of Termination, or such longer period as may be
provided by the terms of the appropriate plan, program, practice or policy, the Company  

  
 11 

 
shall continue to provide those benefits to the Executive’s family that would have been provided to them in accordance with the welfare plans, programs, practices and policies described in
Section 4.4 of this Agreement if the Executive’s employment had not been terminated. To the extent any of the foregoing benefits are not exempt from the requirements of Section 409A of the Internal Revenue Code, the amount of expenses
eligible for reimbursement (other than the reimbursement of expenses referred to in Section 105(b) of the Internal Revenue Code (relating to medical reimbursement arrangements)), or in-kind benefits provided, during the Executive’s taxable
year may not affect the expenses eligible for reimbursement, or the in-kind benefits to be provided, in any other taxable year; 

(e) To the extent not previously paid or provided, the Company shall timely pay or provide to the Executive’s applicable
beneficiaries any other amounts or benefits required to be paid or provided or which the Executive is entitled to receive under any plan, program, policy or practice or contract or agreement of the Company; and 

(f) Any other death benefits then in effect for Company employees or executives and their beneficiaries. 

7.4 Termination Due to Executive’s Disability. If the Executive’s employment is terminated by reason of the
Executive’s Disability, the Company shall have all of the obligations set forth in the preceding Section 7.3 except that (i) any reference in Section 7.3(a), (b) and (c) to the “Executive’s legal
representative” shall refer to the “Executive,” (ii) the reference in Section 7.3(d) to the “Executive’s family” shall refer to the “Executive and/or the Executive’s family,” (iii) the
reference in Section 7.3(e) to the “Executive’s applicable beneficiary” shall refer to the “Executive” and (iv) Section 7.3(f) shall read: “Any other long-term disability benefits then in effect for
Company employees or executives and their beneficiaries.” 
 8. ARBITRATION. Except as provided in
Section 5 or a party’s right to seek injunctive or other equitable relief, if any dispute shall arise between the Executive and the Company in any way connected to or arising from this Agreement, the dispute shall be exclusively
determined, and the dispute shall be settled, by arbitration in accordance with the CPR Rules for Non-Administered Arbitration (or such other independent neutral dispute resolution body to which the parties shall mutually agree)
(“Arbitration Forum”), which provides for adequate discovery and availability of all remedies under applicable law. The CPR Rules for Non-Administered Arbitration are available on the CPR website, available at
http://www.cpradr.org/RulesCaseServices/CPRRules/2007CPRNon-AdministeredArbitrationRules.aspx, and Executive acknowledges that the identified rules are readily accessible and known to him. The arbitration shall be held in the city and state within
which Executive worked most recently for the Company. The arbitration shall be held before a single arbitrator, who shall be chosen from a panel of arbitrators selected by the Arbitration Forum. The arbitrator shall have the authority to provide all
types of relief otherwise available under law. The decision of the arbitrator shall be in writing and shall be final and binding upon the Executive and the Company and judgment upon such award may be entered in any court of competent jurisdiction.
The costs of the arbitrator and of the arbitration shall be borne by the Company. The costs of each party’s counsel, accountants, etc., as well as any costs solely for their benefit, shall be borne separately by each party.
EACH OF THE PARTIES HEREBY ACKNOWLEDGES THAT THIS PROVISION CONSTITUTES A
WAIVER OF THEIR RIGHT TO 

  
 12 

 
COMMENCE A LAWSUIT IN ANY JURISDICTION WITH RESPECT TO
THE MATTERS WHICH ARE REQUIRED TO BE SETTLED BY ARBITRATION AS
PROVIDED IN THIS SECTION 8. 
 9. MISCELLANEOUS
PROVISIONS. 
 9.1 Binding Effect; Delegation of Duties Prohibited; Survival. This Agreement
shall inure to the benefit of, and shall be binding upon, the parties hereto and their respective successors, assigns, heirs and legal representatives, including any entity with which the Company may merge or consolidate, or to which all or
substantially all of its assets may be transferred, provided, the Company may assign this Agreement to any affiliate, but no such assignment shall relieve the Company of its obligations hereunder. The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes
and agrees to perform this Agreement by operation of law, or otherwise. The duties and covenants of Executive under this Agreement, being personal, may not be delegated, but the Executive’s rights to compensation and benefits provided hereunder
may be transferred only by will or operation of law. Except as otherwise set forth in this Agreement, to the extent necessary to carry out the intentions of the parties hereunder the respective rights and obligations of the parties hereunder shall
survive any termination of the Executive’s employment. 
 9.2 Amendment; Waiver. This Agreement may be
amended, modified or superseded only by a written instrument that expressly refers to this Agreement and that is signed by all of the parties to this Agreement. No party shall be deemed to have waived compliance by another party of any provision of
this Agreement unless such waiver is contained in a written instrument signed by the waiving party and no waiver that may be given by a party will be applicable except in the specific instance for which it is given. The failure of any party to
enforce at any time any of the provisions of this Agreement or to exercise any right or option contained in this Agreement or to require at any time performance of any of the provisions of this Agreement, by any of the other parties shall not be
construed to be a waiver of such provisions and shall not affect the validity of this Agreement or any of its provisions or the right of such party thereafter to enforce each provision of this Agreement. No course of dealing shall operate as a
waiver or modification of any provision of this Agreement or otherwise prejudice such party’s rights, powers and remedies. 

9.3 Entire Agreement. This Agreement embodies the entire agreement and understanding of the parties related to the subject
matter and supersedes all prior proposals, understandings, agreements, correspondence, arrangements and contemporaneous oral agreements relating to subject matter of this Agreement. No representation, promise, inducement or statement of intention
has been made by any party which has not been embodied in this Agreement. In the event of any inconsistency between any provision of this Agreement and any provision of any plan, employee handbook, personnel manual, program, policy, arrangement or
agreement of the Company or any of its affiliates (“Company Documents”), the provisions of this Agreement shall control; provided, however, to the extent any Company 

  
 13 

 
Document provides for additional benefits to be afforded the Executive, such additional benefits will also be provided to the Executive in accordance with the terms of such Company
Document. 
 9.4 Exemption from, or Compliance with, Section 409A. The payment of amounts and the provision
of benefits under this Agreement are intended to be exempt from, or compliant with, Section 409A of the Internal Revenue Code. Accordingly, the payment of any amount under this Agreement subject to Section 409A shall be made in strict
compliance with the provisions hereof, and no such amounts payable hereunder may be accelerated or deferred beyond the periods provided herein. This Agreement shall be performed and construed in a manner that is consistent with the foregoing
intention. 
 9.5 Governing Law. This Agreement shall be governed by, and shall be construed, performed and
enforced in accordance with, its express terms, and otherwise in accordance with the laws of State of Ohio, applicable to contracts to be wholly performed within such state without giving effect to any conflict of law, rule or principle of such
state. 
 9.6 Headings; Section References; Construction. Section headings or captions contained in this
Agreement are inserted only as a matter of convenience and reference and in no way define, limit, extend or describe the scope of this Agreement, or the intent of any provision hereof. All references herein to Sections shall refer to Sections of
this Agreement unless the context clearly otherwise requires. Unless the context clearly states otherwise, the use of the singular or plural in this Agreement shall include the other and the use of any gender shall include all others. The parties
have participated jointly in the negotiation and drafting of this Agreement. If any ambiguity or question of intent or interpretation arises, no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any of the provisions of this Agreement. 
 9.7 Notices. All notices, requests, consents, approvals, waivers,
demands and other communications required or permitted to be given or made under this Agreement shall be in writing and shall be deemed delivered to the parties (a) on the date of personal delivery against a written receipt, or (b) on the
first business day following the date of delivery to a nationally recognized overnight courier service, or (c) on the third business day following the date of deposit in the United States Mail, postage prepaid, by certified mail, in each case
addressed as follows, or to such other address, person or entity as any party may designate by notice to the others in accordance herewith: 

To Executive to the residence of the Executive as reflected in the Company’s books and records. 

To Company: 
 Multi-Color
Corporation 
 4053 Clough Woods Drive 

Batavia, OH 45103 
 Attention:
Chief Executive Officer 
 with a required copy to: 

  
 14 

 Keating Muething & Klekamp PLL 

One East Fourth Street, Suite 1400 

Cincinnati, OH 45202 
 Attn:
Michael J. Moeddel 
 9.8 Policies, Regulations and Guidelines for Executives. The Company may, from time to time, issue
policies, rules, regulations, guidelines, procedures or other informational material, whether in the form of handbooks, memoranda or otherwise, relating to the Company’s Executives. Executive acknowledges and agrees that such materials are
general guidelines for Executive’s information and shall not be construed to alter, modify or amend this Agreement for any purpose whatsoever. 

9.9 Severability and Reformation of Provisions. If a court in any final, unappealable proceeding holds any provision of this
Agreement or its application to any person or circumstance invalid, illegal or unenforceable, the remainder of this Agreement, or the application of such provision to persons or circumstances other than those to which it was held to be invalid,
illegal or unenforceable, shall not be affected, and shall be valid, legal and enforceable to the fullest extent permitted by law, but only if and to the extent such enforcement would not materially and adversely frustrate the parties’
essential objectives as expressed in this Agreement. Furthermore, in lieu of any such invalid or unenforceable term or provision, the parties intend that the court add to this Agreement a provision as similar in terms to such invalid or
unenforceable provision as may be valid and enforceable, so as to effect the original intent of the parties to the greatest extent possible. 

9.10 Taxes. The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes
as shall be required to be withheld pursuant to any applicable law or regulation. 
 9.11 Full Settlement. In no
event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not
the Executive obtains other employment, except for the offset described in Section 7.1(e). 
 THIS AGREEMENT CONTAINS VERY IMPORTANT TERMS
GOVERNING EXECUTIVE’S EMPLOYMENT WITH THE COMPANY. SECTION 5 CONTAINS PROVISIONS WHICH AFFECT EXECUTIVE’S ABILITY TO TAKE CERTAIN ACTIONS FOLLOWING THE TERMINATION OF EXECUTIVE’S EMPLOYMENT. EXECUTIVE SHOULD FEEL FREE TO SEEK ADVICE
FROM HIS ATTORNEY REGARDING ANY MATTER RELATING TO THIS AGREEMENT. BY EXECUTING THIS AGREEMENT, EXECUTIVE IS AFFIRMING THAT THE EXECUTIVE HAD THE OPPORTUNITY TO REVIEW THIS AGREEMENT AND TO CONSULT WITH HIS ATTORNEY, THAT EXECUTIVE UNDERSTANDS THE
MEANING AND SIGNIFICANCE OF ALL OF ITS PROVISIONS, THAT NO REPRESENTATIONS OR PROMISES HAVE BEEN MADE TO EXECUTIVE REGARDING HIS EMPLOYMENT WHICH ARE NOT SET FORTH IN THIS AGREEMENT, AND THAT EXECUTIVE IS FREELY SIGNING THIS AGREEMENT TO CONTINUE
HIS EMPLOYMENT WITH THE COMPANY. 

  
 15 

 [REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK - SIGNATURE PAGE TO FOLLOW] 

  
 16 

 IN WITNESS WHEREOF, the
parties have entered into this Employment Agreement effective as of the date first written above. 
  

			
	MULTI-COLOR CORPORATION
		
	By:	 	 /s/ Vadis Rodato

	Title:	 	Chief Operating Officer – Wine & Spirit
		
	Date:	 	December 28, 2015

  

			
	WITNESS:	 	 /S/ KAREN A.
POWELL

  

			
	 /s/ David Buse

	DAVID BUSE
		
	Date:	 	December 28, 2015

  

			
	WITNESS:	 	 /S/ LESHA SPAHR

 [Signature Page to Buse Employment Agreement] 

  
 17Exhibit

RETENTION AGREEMENT
THIS RETENTION AGREEMENT (the “Agreement”) is made as of the  4th day of February, 2016 (the “Effective Date”), by and between Continental Casualty Company, an Illinois insurance company (the “Company”), and D. Craig Mense (“Executive”).
WITNESSETH:
WHEREAS, the Company wishes to retain Executive as Executive Vice President and Chief Financial Officer of the Company with senior management level responsibility in the capacity of Chief Financial Officer for the principal business units and subsidiaries of the Company, being hereinafter referred to as the “CNA insurance companies,” through the Target Date (as defined herein) and Executive agrees to remaining in such employment under the terms and conditions set forth hereinbelow.
NOW, THEREFORE, in consideration of the foregoing premises and the promises and covenants herein, the parties hereto agree as follows:
1.    Retention Bonus. If Executive is employed by the Company through November 19, 2018, or if he experiences a Qualifying Termination (defined herein) prior to such date, subject to Executive’s compliance with Sections 4 - 11 herein, the Company shall pay Executive a cash bonus in a single lump sum payment in an amount between $3.5 million and $4.0 million, with the exact amount within such range to be determined by the Compensation Committee of the Board of Directors of the Company in its sole discretion (the “Retention Bonus”), not more than 60 days following the earlier of November 19, 2018 or the date of the Qualifying Termination. The Retention Bonus shall only be payable if the foregoing conditions are met; however, neither such conditions nor the Retention Bonus itself shall impose upon the Company any obligation to retain Executive in his employ for any given period or upon any specific terms of employment.
If Executive’s employment with the Company terminates or is terminated for any reason other than a Qualifying Termination, Executive shall not be eligible for and shall forfeit any rights to the Retention Bonus. 
1.1    Compensation and Benefits. During the term of Executive’s employment with the Company through the Target Date (or Executive's earlier termination of employment), Executive’s compensation shall not be lower than a (i) annual base salary of $825,000, (ii) target annual incentive cash compensation award of 200% of base salary, and (iii) target long-term incentive compensation award of 125% of base salary; it being understood that as to the actual payments to be made to Executive under foregoing clauses (ii) and (iii), the amounts thereof will be determined in the same manner applicable to the other senior executives of the Company, including with reference to Company performance in accordance with formulas approved by the Compensation Committee; but provided that consideration of Executive’s individual performance will only be used as a potential positive factor in determining, and may not be used to negatively adjust, the payment amount in clause (ii).
During the term of Executive’s employment with the Company through the Target Date (or Executive's earlier termination of employment), Executive shall remain eligible for medical, welfare
    

and other benefits to the extent such medical, welfare and other benefits are provided to other senior executives of the Company from time to time.
1.2         Position. During the term of Executive’s employment with the Company through the Target Date (or Executive's earlier termination of employment), Executive shall continue to serve as the Company's Chief Financial Officer and shall have duties and responsibilities generally commensurate with those of the chief financial officer of a U.S. property-casualty insurance company; provided, however, that the foregoing shall not restrict the Chief Executive Officer of the Company (the “CEO”) from making reasonable changes to Executive's duties and responsibilities.
2.    Severance. If Executive experiences a Qualifying Termination prior to the Target Date, subject to Executive’s compliance with Sections 4 - 11 herein, the Company shall pay Executive cash severance equal to the sum of (i) the sum of (x) Executive’s then current annual base salary, from the date of termination of Executive’s employment through the Target Date, to be paid not less frequently than monthly installments, and (y) the annual cash incentive compensation awards that Executive would have received had Executive remained employed through the Target Date (prorated through the Target Date) based on the Company’s performance against the applicable performance goals during each applicable performance period, in each case, payable at the same time annual cash incentive compensation awards are paid to other employees of the Company, and (ii) the amount, if any, by which $2.5 million exceeds the amount paid under clause (i) above, payable on the due date of the last payment to be made under clause (i)(y) above (the sum of (i) and (ii) above being referred to as the “Severance”).
Nothing herein shall affect Executive’s or the Company’s rights or obligations with respect to any long-term incentive compensation awards held by or subsequently granted to Executive, which awards shall be governed by the Company’s applicable plan and award agreements. If Executive experiences a Qualifying Termination prior to the Target Date, subject to Executive’s compliance with Sections 4 - 11 herein, in addition to any amounts to which Executive is entitled as a result of such termination under the long-term incentive plans or award agreements in which he participates, did participate or would have participated through the Target Date, the Company shall pay Executive an additional amount equal to the difference between (x) the amount that would have been paid to him under such plans and award agreements had his employment terminated on the Target Date and (y) the amount which he is paid under such plans and award agreements as a result of his employment terminating on the date of the Qualifying Termination, it being understood that the necessity of any such payment will be determined in accordance with such plans and award agreements as if Executive’s employment terminated on the Target Date and, if applicable, payment will be made to Executive at the time or times that amounts would have been paid to Executive under such plans and award agreements had his employment terminated on the Target Date.
The Severance is in lieu of any other severance or similar benefits that would otherwise have been payable to Executive under any other plan or agreements of the Company. 
If Executive’s employment is terminated after the Target Date for any reason other than by the Company for Cause (defined herein) or Executive’s voluntary resignation or retirement, Executive shall be entitled to severance commensurate with his status as an Executive Vice President of CNA Financial Corporation.

Page 2

2.1    Qualifying Termination. A Qualifying Termination of Executive’s employment with the Company shall have occurred if either (i) the Company terminates Executive’s employment other than for Cause (defined herein) and other than on account of Disability (defined herein) or death, or (ii) Executive terminates his employment for Good Reason (defined herein). 
2.2    Target Date. The Target Date, for purposes of this Agreement, shall be the earlier of November 19, 2018 or the second anniversary of the first date of employment of a Chief Executive Officer of the Company to directly succeed Thomas Motamed.
3.    Termination for Cause by the Company. For purposes of this Agreement, Cause shall mean that the Board of Directors, in good faith, has determined that Executive has engaged in or committed: (i) any act involving fraud, moral turpitude, unlawful conduct or breach of fiduciary duty or the conviction of, or pleading guilty or nolo contendere to, a felony; (ii) a substantial breach of any provision of this Agreement; (iii) willful or reckless material misconduct in the performance of Executive’s duties; or (iv) the habitual neglect of duties; provided however, that, for purposes of clause (iii) and (iv), Cause shall not include any one or more of the following: bad judgment, negligence or any act or omission believed by Executive in good faith to have been in or not opposed to the interest of the Company (without any intent by Executive to gain, directly or indirectly, a profit to which he was not legally entitled) and provided that Executive is provided with thirty (30) days written notice of the Cause by the Company and an opportunity to cure, but only to the extent curable.  Executive shall not be deemed to have been terminated for Cause unless and until the Board of Directors delivers him a copy of a written resolution, duly adopted by the affirmative vote of not less than a majority of the entire membership of the Board of Directors that finds Executive has engaged in the conduct set forth above.  If Executive agrees to resign from his employment with the Company in lieu of being terminated for Cause, he may be deemed to have been terminated for Cause for purposes of this Agreement. For purposes of this Agreement, “Termination without Cause by the Company” shall mean a termination of Executive’s employment by the Company for any reason not specifically described in the foregoing.  
3.1    Termination by the Company for Disability. For purposes of this Agreement, “Disability” means a physical or mental condition of Executive which, as determined by the Board of Directors based on and consistent with available medical information, is expected to continue beyond 26 weeks and which renders Executive incapable of performing any substantial portion of his services, with reasonable accommodation compatible with the fulfillment of his duties.  Any determination of whether Executive has a Disability shall be made by the Board of Directors based on sufficient medical evidence from a physician mutually selected by Executive and the Board of Directors for such purpose.  Nothing in this Section 3.1 shall be construed to waive Executive’s rights, if any, under existing law, including the Family Medical Leave Act of 1993, 29 U.S.C. §2601 et. seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et. seq. (including his right to receive a reasonable accommodation compatible with the fulfillment of his duties).
3.2    Termination by Executive for Good Reason. For purposes of this Agreement, “Good Reason” means any one or more of the following conditions or events that occur without the prior written consent of Executive: (a) the reduction in Executive’s base salary, target annual incentive opportunity or target long-term incentive cash target compensation; (b) the material diminution of Executive’s authority, duties or responsibilities, in each case, as contemplated by Section 1.2 of this Agreement;  (c) the material change in the geographic location at which Executive is required to                    

Page 3

perform services for the Company without Executive’s consent, other than any change related to the Company’s previously announced move of the Company’s headquarters in 2018; or (d) the requirement that Executive report to anyone other than the CEO.  To qualify as a voluntary resignation with “Good Reason,” Executive shall provide the Company written notice of the existence of the condition or event described above within ninety (90) days of the initial existence of such condition or event, and the Company shall have thirty (30) days to remedy the condition or event measured from the date it receives Executive’s notice.  If the condition or event that qualifies as Good Reason is not cured, Executive must resign within thirty (30) days following the end of the Company’s cure period to be deemed to have incurred a resignation with Good Reason.    
4.    Release. Executive acknowledges that the retention and severance benefits set forth in Sections 1 and 2 hereof, respectively, provide significant additional benefits as compared to those available to the Company’s employees in general.  As a condition precedent to receiving any payments or other benefits pursuant to either Section 1 or Section 2 of this Agreement, Executive agrees to sign a full and complete release substantially in the Company’s customary form as then in effect and consistent with and incorporating the relevant payment and restriction terms herein, releasing the Company, its subsidiaries and affiliates and their directors, officers and employees of any and all claims, both known and unknown as of the date of Executive’s termination of employment with the Company. In the absence of Executive’s executing such a release in a form satisfactory to the Company, the Company shall have no obligation to Executive to make any payments or provide any other benefits as provided in said Section 2 or otherwise upon termination of Executive’s employment by the Company.
5.    Confidentiality. Executive agrees that while he is employed by the Company, and at all times thereafter, Executive shall not reveal or utilize information, knowledge or data which is “confidential information” (defined herein) and learned during the course of or as a result of his employment which relates to: (a) the Company and/or any other business or entity in which the Company during the course of Executive’s employment has directly or indirectly held a greater than a 10% equity interest, whether voting or non-voting; and (b) the Company’s customers, employees, agents, brokers and vendors. Executive acknowledges that all such confidential information is commercially valuable and is the property of the Company. Upon the termination of his employment Executive shall return all confidential information and any copies thereof to the Company, whether it exists in written, electronic, computerized or other form.
5.1    “Confidential Information” Defined. For purposes of this Agreement, “confidential information” includes all information, knowledge or data (whether or not a trade secret or protected by laws pertaining to intellectual property) not generally known outside the Company (unless as a result of a breach of any of the obligations imposed by this Agreement) concerning the business operations, performance and other information of the Company or other affiliated entities as described in Section 5 above. Such information may without limitation include information relating to data, finances, marketing, pricing, profit margins, underwriting, claims, loss control, marketing and business plans, renewals, software, processing, vendors, administrators, customers or prospective customers, products, brokers, agents and employees.
6.    Competition. Executive hereby agrees that, while he is employed by the Company, and for a period through the earlier of November 19, 2018 or 6 months following the date of 

Page 4

his termination of employment with the Company for any reason, he will not, directly or indirectly, without the prior written approval of the CEO, enter into any business relationship (either as principal, agent, board member, officer, consultant, stockholder, employee or in any other capacity) with any business or other entity that at any relevant time is engaged in the business of property and casualty insurance and any other significant line of insurance in which the Company is involved at the time of Executive’s termination of employment in direct or indirect competition with the Company or any of its affiliates anywhere in the United States (a “Competitor”); provided, however, that such prohibited activity shall not include the ownership of less than 5% of the outstanding securities of any publicly-traded corporation (determined by vote or value) regardless of the business of such corporation. Upon the written request of Executive, the CEO will determine whether a business or other entity constitutes a “Competitor” for purposes of this Section 6; provided that the CEO may require Executive to provide such information as the CEO determines to be necessary to make such determination, and further provided that the current and continuing effectiveness of such determination may be conditioned on the accuracy of such information, and on such other factors as the CEO may determine. For avoidance of doubt, a Competitor shall include an entity involved in or servicing any line of business currently written or serviced by the Company or previously written or serviced by the Company.  
7.    Solicitation. Executive agrees that while he is employed by the Company, and for a period of 12 months following his termination of employment with the Company for any reason, he will not employ, offer to employ, engage as a consultant, or form an association with any person who is then, or who during the then preceding one year period was, an employee of the Company or any subsidiary or affiliate of the Company or any successor or purchaser of any portion thereof, nor will he solicit or assist any other person or entity in soliciting for employment or consultation any person who is then, or who during the then preceding one year period was, an employee of the Company or any subsidiary or affiliate of the Company or any successor or purchaser of any portion thereof.
8.    Non-interference. Executive agrees that while he is employed by the Company, and for a period of 6 months following his termination of employment with the Company for any reason, he will not disturb, attempt to disturb, or cause any one else to disturb any business relationship or agreement between either the Company or any subsidiary or affiliate of the Company or any successor or purchaser of any portion thereof, and any other person or entity.
9.    Assistance with Claims. Executive agrees that, while he is employed by the Company, and for a reasonable period (not less than 60 months from the date of termination) thereafter, he will be available, on a reasonable basis, to assist the Company and its subsidiaries and affiliates in the prosecution or defense of any claims, suits, litigation, arbitrations, investigations, or other proceedings, whether pending or threatened (“Claims”) that may be made or threatened by or against the Company or any of its subsidiaries or affiliates by meeting with representatives of the Company (including attorneys) and providing truthful and accurate information. Executive agrees, unless precluded by law, to promptly inform the Company if he is requested (i) to testify or otherwise become involved in connection with any Claim against the Company or any subsidiary or affiliate or (ii) to assist or participate in any investigation (whether governmental or private) of the Company or any subsidiary or affiliate or any of their actions, whether or not a lawsuit has been filed against the Company or any of its subsidiaries or affiliates relating thereto. The Company agrees to pay Executive for his time spent on such activities at an hourly rate equal to his Base Compensation as in effect on the date of his 

Page 5

termination of employment divided by 2,000, and to reimburse Executive for any reasonable expenses incurred by Executive and reasonable attorney’s fees incurred by Executive in connection with obligations under this Section 9. Nothing in this Section 9 is intended or shall be construed to prevent Executive from cooperating fully with any governmental investigation or review as required by applicable law or regulation.
10.    Return of Materials. Executive shall, at any time upon the request of the Company, and in any event upon the termination of his employment with the Company for any reason, immediately return and surrender to the Company all property to the Company, including but not limited to originals and all copies, regardless of medium, of any property belonging to the Company created or obtained by Executive as a result of or in the course of or in connection with his employment with the Company, regardless of whether such materials constitute proprietary information, provided that Executive shall be under no obligation to return written materials acquired from third parties which are generally available to the public. Executive acknowledges that all such materials are, and will remain, the exclusive property of the Company.
11.    Scope of Covenants.
(a)    Executive acknowledges that: (a) as a senior executive of the Company he has and will have access to confidential information concerning not only the business segments for which he may have been responsible (a non-exhaustive summary of which appears in the Company’s reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission), but the entire range of businesses in which the Company was engaged; (b) that the businesses segments for which he may have been responsible and the Company’s businesses are conducted nation-wide; and (c) that the Company’s confidential information, if disclosed or utilized without its authorization would irreparably harm the Company in: (i) obtaining renewals of existing customers; (ii) selling new business; (iii) maintaining and establishing existing and new relationships with employees, agents, brokers, vendors; and (iv) other ways arising out of the conduct of the businesses in which the Company and its affiliates are engaged.
(b)    To protect such information and such existing and prospective relationships, and for other significant business reasons, Executive agrees that it is reasonable and necessary that: (a) the scope of this agreement be nation-wide; (b) its breadth include those segments of the entire insurance industry in which the Companies conduct business; and (c) the duration of the restrictions upon Executive be as indicated therein.
(c)    Executive acknowledges that the Company’s customer, employee and business relationships are long-standing, near permanent and therefore are of critical value to the Company.  Executive agrees that neither any of the provisions in this Agreement nor any enforcement of it by the Company alters or will alter his ability to earn a livelihood for himself and his family, and further that both said provisions and said enforcement are reasonably necessary to protect the Company’s legitimate business and property interests and relationships, especially those which he was responsible for developing or maintaining. Executive agrees that his actual or threatened breach of the covenants set forth in Sections 5 through 10 above would cause the Company irreparable harm and that the Company would be entitled to an injunction, in addition to whatever other remedies may be available, to restrain such actual or threatened breach. Executive agrees that if bond is required in order for the Company to obtain such relief, such bond need only be in a nominal amount and that he shall reimburse 

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the Company for all costs of any such suit, including the Company’s reasonable attorneys’ fees. Executive consents to the filing of any such suit against him in any of the state or federal courts located in Illinois or any state in which Executive resides. He further agrees that in the event of such suit or any other action arising out of or relating to this Agreement, the parties shall be bound by and the court shall apply the internal laws of the State of Illinois, irrespective of rules regarding choice of law or conflicts of laws.
(d)    If he has not already done so, Executive agrees to be bound by and to execute the Company’s Confidentiality, Computer Responsibility and Professional Certification Agreement, a copy of which has been previously provided to Executive and is incorporated by reference herein.
(e)    For purposes of Sections 5 through 11 hereof, the “Company” shall include all subsidiaries and affiliates of the Company and CNA Financial Corporation, as well as the Company.
12.    Effect of Covenants. Nothing in Sections 5 through 11 shall be construed to limit or otherwise adversely affect any rights, remedies or options that the Company would possess in the absence of the provisions of such Sections. In addition, any other restrictive covenants applicable to Executive in any other agreement or arrangement remain in full force an effect.
13.    Revision. The parties hereto expressly agree that in the event that any of the provisions, covenants, warranties or agreements in this agreement are held to be in any respect an unreasonable restriction upon Executive or are otherwise invalid, for whatsoever cause, then the court or arbitrator so holding is hereby authorized to (a) reduce the territory to which said covenant, warranty or agreement pertains, the period of time in which said covenant, warranty or agreement operates or the scope of activity to which said covenant, warranty or agreement pertains or (b) effect any other change to the extent necessary to render any of the restrictions contained in this agreement enforceable.
14.    Severability. Each of the terms and provisions of this agreement is to be deemed severable in whole or in part and, if any term or provision of the application thereof in any circumstances should be invalid, illegal or unenforceable, the remaining terms and provisions or the application thereof to circumstances other than those as to which it is held invalid, illegal or unenforceable, shall not be affected thereby and shall remain in full force and effect. 
15.    Binding Agreement; Assignment. This Agreement shall be binding upon the parties hereto and their respective heirs, successors, personal representatives and assigns. The Company shall have the right to assign this Agreement to any successor in interest to the business, or any majority part thereof, of the Company or any joint venture or partnership to which the Company is a joint venture partner or general partner which conducts substantially all of the Company’s business. Executive shall not assign any of his obligations or duties hereunder, and any such attempted assignment shall be null and void.
16.    Controlling Law; Jurisdiction. This Agreement shall be governed by, interpreted and construed according to the laws of the State of Illinois (without regard to choice of law or conflict of laws principles). The parties hereby irrevocably consent to jurisdiction of any state or federal court in Cook County, Illinois for purposes of any action or proceeding relating to or arising out of this Agreement, and hereby waive any objection to venue in any such courts.

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17.    Entire Agreement. Except as set forth in Section 12 above, this Agreement and the award agreements referenced in Section 2 contain the entire agreement of the parties with regard to the subject matter hereof, supersedes all prior agreements and understandings, written or oral, and may only be amended by an agreement in writing signed by the parties hereto.
18.    Additional Documents. Each party hereto shall, from time to time, upon request of the other party, execute any additional documents which shall reasonably be required to effectuate the intent and purposes of this Agreement.
19.    Incorporation. The introductory recitals hereof are incorporated in this Agreement and are binding upon the parties hereto.
20.    Failure to Enforce. The failure to enforce any of the provisions of this Agreement shall not be construed as a waiver of such provisions. Further, any express waiver by either party with respect to any breach of any provision hereunder by the other party shall not constitute a waiver of such party’s right to thereafter fully enforce each and every provision of this Agreement.
21.    Survival. Except as otherwise expressly provided herein, the obligations set forth in this Agreement, including Executive's obligations under Sections 5 - 11, shall survive the termination for any reason whatsoever, of Executive’s employment with the Company.
22.    Headings. All numbers and headings contained herein are for reference only and are not intended to qualify, limit or otherwise affect the meaning or interpretation of any provision contained herein.
23.    Notices. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid (provided that international mail shall be sent via overnight or two-day delivery), or sent by facsimile or prepaid overnight courier to the parties at the addresses set forth below (or such other addresses as shall be specified by the parties by like notice). Such notices, demands, claims and other communications shall be deemed given:
(a)    in the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery;
(b)    in the case of certified or registered U.S. mail, five days after deposit in the U.S. mail; or
(c)    in the case of facsimile, the date upon which the transmitting party received confirmation of receipt by facsimile, telephone or otherwise;
provided, however, that in no event shall any such communications be deemed to be given later than the date they are actually received. Communications that are to be delivered by the U.S. mail or by overnight service or two-day delivery service are to be delivered to the addresses set forth below:
If to the Company:
CONTINENTAL CASUALTY COMPANY
333 S. Wabash
Chicago, IL 60604
Attn: Corporate Secretary

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If to Executive:
D. Craig Mense
333 S. Wabash Avenue, 44th Floor
Chicago, Illinois 60604
or to such other address as either party shall furnish to the other party in writing in accordance with the provisions of this Section 23.
24.    Gender. The masculine, feminine or neuter pronouns used herein shall be interpreted without regard to gender, and the use of the singular or plural shall be deemed to include the other whenever the context so requires. 
25.    Arbitration of All Disputes. Except as otherwise provided herein, any controversy or claim arising out of or relating to this Agreement (or the breach thereof) shall be settled by final, binding and non-appealable arbitration in Chicago, Illinois by three arbitrators. Except as otherwise expressly provided in this Section 25, the arbitration shall be conducted in accordance with the rules of the American Arbitration Association (the “Association”) then in effect. One of the arbitrators shall be appointed by the Company, one shall be appointed by Executive, and the third shall be appointed by the first two arbitrators. If the first two arbitrators cannot agree on the third arbitrator within 30 days of the appointment of the second arbitrator, then the third arbitrator shall be appointed by the Association. The Company shall bear all costs of the arbitration. This Section 25 shall not be applicable with respect to any subject matter or controversy or relating to the provisions of Sections 5 through 11 of this Agreement.
26.    Tax Compliance.  The parties intend that the Retention Bonus and the Severance will be exempt from Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), the Treasury regulations and other guidance issued by the Internal Revenue Service thereunder (herein, “Code Section 409A”).  To the extent that any promise to pay compensation or benefits provided herein are deemed, however, to constitute a “deferral of compensation” subject to Code Section 409A, this Agreement shall be interpreted to comply with Code Section 409A.  The parties will negotiate, in good faith, to amend this Agreement as necessary to comply with Code Section 409A in a manner that preserves the original intent of the parties to the extent reasonably possible.   
(a)    Short-Term Deferral Exception.  Neither the Retention Bonus described in Section 1 nor the Severance described in 2 shall be deemed to provide a “deferral of compensation” for purposes of Code Section 409A pursuant to Treasury regulation §1.409A-1(b)(4) to the extent Executive actually or constructively receives such compensation or benefits under this Agreement on or before the fifteenth (15th) day of the third (3rd) month following the end of Executive’s first tax year in which his right to payment is no longer subject to a substantial risk of forfeiture.
(b)    Separation Pay Due to Involuntary Separation from Service Exception. The Severance described in Section 2 shall not be deemed to provide a “deferral of compensation” for purposes of Code Section 409A pursuant to Treasury regulation §1.409A-1(b)(9)(iii) to the extent the compensation or benefits (or portion thereof) under this Agreement meets the requirements of (1) and (2) below:
(1)    the Severance does not exceed two (2) times the lesser of:

Page 9

		
	(A)
	the sum of Executive’s annualized compensation based on his annual rate of pay for services provided to the Company for the tax year of Executive preceding the tax year in which his termination of employment occurred (adjusted for any increase during such year that was expected to continue indefinitely if Executive had not incurred a termination of employment, or

		
	(B)
	the Code Section 401(a)(17) limit for the year (increased for cost-of-living adjustments) in which Executive incurred a termination of employment.

		
	(2)
	the Severance must be paid no later than the last day of the second tax of Executive that immediately follows the tax year of Executive in which his termination of employment occurs.

The Company and Executive intend the exception described in Section 25(b) to apply to severance payments or benefits provided under this Agreement that are equal to or less than the severance pay limit described in Section 25(b)(1).  
(c)    Separate Payments. Any installment payments or benefits that Executive receives under this Agreement shall be treated as “separate payments” for purposes of Code Section 409A. 
(d)    Termination of Employment. For purposes of this Agreement, a “termination of employment” and similar terms shall be construed consistently with a “separation of service” as defined by Code Section 409A(a)(2)(i) and Treasury regulation §1.409A-1(h). Thus, Executive will be treated as having incurred a termination of employment with the Company only if Executive’s termination of employment or other change in employment status constitutes a “separation from service” within the meaning of Code Section 409A(a)(2)(i) and Treasury regulation §1.409A-1(h).
(e)    Six Month Delay Rule.  If, as of the effective date of Executive’s termination of employment, Executive is a “specified employee,” as determined by the Company in accordance with Code Section 409A(a)(2)(B)(i) and the guidelines established pursuant to Treasury regulation §1.409A-1(i), any amount payable to Executive upon or by reason of a termination of employment that constitutes a “deferral of compensation” within the meaning of Code Section 409A shall be subject to a six (6) month delay as required by Code Section 409A(a)(2)(B)(i); provided, however, that such six (6) month delay shall not be required with respect to any payment (or portion thereof) that the Company determines is not governed by Code Section 409A by reason of Section 25(a), Section 25(b) or any other exemption.  If a payment of any amount is delayed by reason of this six (6) month delay, such amount or amounts shall be paid, without interest, on the Company’s first payroll date in the seventh (7th) month that starts after the effective date of Executive’s termination of employment (or, if earlier, within ninety (90) days after Executive’s death on a date determined by the Company in its sole discretion).        
[Signature page follows]
    

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

CONTINENTAL CASUALTY COMPANY

By:    /s/  Thomas Pontarelli                                           

		
	Title:
	EVP and Chief Administrative Officer                 

 /s/  D. Craig Mense                                                             
D. Craig Mense

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