Document:

Unassociated Document

LOCK-UP AGREEMENT

 

This LOCK-UP AGREEMENT (this “Agreement”), dated as of November 8, 2011, is made by and between TOP GEAR INC., a corporation organized under the laws of Delaware (the “Company”), and KHALED ALATTAR (the “Holder”). The Company and the Holder are referred to herein individually as a “Party” and collectively as the “Parties.”

 

RECITALS:

 

WHEREAS, the Company is offering (the “Offering”) to sell to certain investors (the “Investors”), upon the terms and conditions set forth in that certain Subscription Agreement, dated as of November 8, 2011, by and among the Company and the Investors (the “Subscription Agreement”), (i) the Shares (as defined in the Subscription Agreement) and (ii) the Warrants (as defined in the Subscription Agreement) which will be exercisable to purchase Warrant Shares (as defined in the Subscription Agreement) in accordance with the terms of the Warrants;

 

WHEREAS, as a condition to the Closing (as defined in the Subscription Agreement) of the Offering and as an inducement to the Investors to enter into the Subscription Agreement, the Holder understands that the Investors have required, and the Company has agreed to obtain on behalf of the Investors, an agreement from the Holder to refrain from disposing any of the Holder’s Shares (as defined below) for a period of eighteen (18) months from the Closing Date (as may be extended hereunder, the “Restricted Period”); and

 

WHEREAS, capitalized terms used and not otherwise defined herein shall have the respective meanings set forth in the Subscription Agreement.

 

NOW, THEREFORE, in consideration of the foregoing premises, and the covenants, representations and warranties set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and accepted, the Parties, intending to be legally bound, hereby agree as follows:

 

1.           Restricted Actions.  The Holder agrees that, during the Restricted Period, the Holder will not (a) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase, make any short sale or otherwise dispose of or agree to dispose of, directly or indirectly, any of the Holder’s Shares, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act and the rules and regulations of the Securities and Exchange Commission promulgated thereunder with respect to any of the Holder’s Shares, or (b) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of any of the Holder’s Shares, whether any such transaction is to be settled by delivery of such securities, in case or otherwise (the “Restricted Actions”).  The Restricted Actions are expressly agreed to preclude the Holder and any of its Affiliates and any Person in privity with the Holder from engaging in any hedging or other transaction which is designed to or which reasonably could be expected to lead to or result in a sale or disposition of the Holder’s Shares even if the Holder’s Shares would be disposed of by someone other than the Holder, including any short sale or any purchase, sale or grant of any right (including, without limitation, any put or call option) with respect to any of the Holder’s Shares or with respect to any security that includes, relates to, or derives any significant part of its value from the Holder’s Shares.  This Section 1 shall not apply to the exercise of options or warrants or the conversion of a security outstanding as of the date hereof; provided, however, that the Holder agrees that this Section 1 shall apply to any securities issued by the Company to the Holder upon such an exercise or conversion.  The restrictions on transfer described in this Agreement are in addition to and cumulative with any other restrictions on transfer otherwise agreed to by the Holder or to which the Holder is subject to by applicable Law.  For purposes of this Agreement, “Holder’s Shares” means: (x) all shares of Common Stock owned directly or indirectly by the Holder (including holding as a custodian) or with respect to which the Holder has beneficial ownership within the rules and regulations of the SEC and (y) all options or warrants to purchase shares of Common Stock or other securities convertible into or exercisable or exchangeable for shares of Common Stock owned directly or indirectly by the Holder (including holding as a custodian) or with respect to which the Holder has beneficial ownership within the rules and regulations of the SEC.

 

  

  

  

 

2.           Dispositions Not Deemed Restricted Actions.  Notwithstanding Section 1 hereof, the Holder may, at any time and from time to time during the Restricted Period, transfer the Holder’s Shares (a) as bona fide gifts or transfers by will or intestacy, (b) to any trust for the direct or indirect benefit of the Holder or the Immediate Family of the Holder, provided that any such transfer shall not involve a disposition for value, or (c) to a partnership which is the general partner of a partnership of which the Holder is a general partner, provided, that, in the case of any gift or transfer described in clauses (a), (b) or (c), each donee or transferee agrees in writing to be bound by the terms and conditions contained herein in the same manner as such terms and conditions apply to the Holder.  For purposes of this Agreement, “Immediate Family” shall mean spouse, domestic partner, lineal descendant (including adopted children), father, mother, brother or sister of the transferor, as well as any non-profit organization or charitable organization.

 

3.           Extension of Restricted Period.  If (a) the Company issues an earnings release or material news or a material event relating to the Company occurs during the last seventeen (17) days of the Restricted Period, or (b) prior to the expiration of the Restricted Period, the Company announces that it will release earnings results during the sixteen (16)-day period beginning on the last day of the Restricted Period, the Restricted Period shall be extended until the expiration of the eighteen (18)-day period beginning on the issuance of the earnings release or the occurrence of the material news or material event.

 

4.           Ownership. The Holder now has, and, except as contemplated by clauses (a), (b) and (c) of Section 2, for the duration of the Restricted Period will have, good and marketable title to the Holder’s Shares, free and clear of all liens, encumbrances, and claims whatsoever.  During the Restricted Period, the Holder shall retain all rights of ownership in the Holder’s Shares, including, without limitation, voting rights and the right to receive any dividends that may be declared in respect thereof, except as otherwise provided in the Transaction Documents whereby any benefits, rights, title or otherwise shall inure to the Investors.

 

5.           Company and Transfer Agent. The Company is hereby authorized and required to disclose the existence of this Agreement to its transfer agent. The Company and its transfer agent are hereby authorized and required to decline to make any transfer of the Holder’s Shares if such transfer would constitute a violation or breach of this Agreement and/or the Subscription Agreement.  The Holder also agrees and consents to the entry of stop transfer instructions with the Company’s transfer agent and registrar against the transfer of the Holder’s Shares except in compliance with this Agreement.

 

  

  

  

 

6.           Miscellaneous.

 

(a)           Notices.  All notices, demands, consents, requests, instructions and other communications to be given or delivered or permitted under or by reason of the provisions of this Agreement or in connection with the transactions contemplated hereby shall be in writing and shall be deemed to be delivered and received by the intended recipient as follows: (i) if personally delivered, on the Business Day of such delivery (as evidenced by the receipt of the personal delivery service), (ii) if mailed certified or registered mail return receipt requested, two (2) Business Days after being mailed, (iii) if delivered by overnight courier (with all charges having been prepaid), on the Business Day of such delivery (as evidenced by the receipt of the overnight courier service of recognized standing), or (iv) if delivered by facsimile transmission or other electronic means, including email, on the Business Day of such delivery if sent by 6:00 p.m. in the time zone of the recipient, or if sent after that time, on the next succeeding Business Day.  If any notice, demand, consent, request, instruction or other communication cannot be delivered because of a changed address of which no notice was given (in accordance with this Section 6(a)), or the refusal to accept same, the notice, demand, consent, request, instruction or other communication shall be deemed received on the second business day the notice is sent (as evidenced by a sworn affidavit of the sender).  All such notices, demands, consents, requests, instructions and other communications will be sent to the following addresses or facsimile numbers as applicable:

 

	
If to the Company, to:

	  	
LY Retail LLC d/b/a Luxeyard.com

4063 Glencoe Avenue, Suite A

Marina Del Rey, California 90292

Attention: Kevin Walker, Chief Financial Officer

Telephone No.: 323-855-7044

Facsimile No.: _________________

	  	  	  
	
With copies to:

	  	
Anslow & Jaclin, LLP

195 Route 9 South, Suite 204

Manalapan, New Jersey 07726

Attention: Richard I Anslow, Esq.

Telephone No.: 732-409-1212

Facsimile No.: 732-577-1188

	  	  	  
	
If to the Holder:

	  	
The address set forth on the signature page hereto.

	  	  	  

(b)           Rights of Investors.  The Company and the Holder acknowledge that this Agreement is being entered into for the benefit of the Investors and may be enforced by the Investors.

 

  

  

  

 

(c)           Waiver.  The rights and remedies of the Parties are cumulative and not alternative.  Neither the failure nor any delay by any Party in exercising any right, power, or privilege under this Agreement or the documents referred to in this Agreement will operate as a waiver of such right, power, or privilege, and no single or partial exercise of any such right, power, or privilege will preclude any other or further exercise of such right, power, or privilege or the exercise of any other right, power, or privilege.  The Company may not waive any right, power, or privilege hereunder without the prior written consent of the Investors.

 

(d)           Entire Agreement and Modification.  This Agreement supersedes all prior agreements between the Parties with respect to its subject matter and constitutes (along with the documents referred to in this Agreement) a complete and exclusive statement of the terms of the agreement between the Parties with respect to its subject matter.  This Agreement may not be amended except by a written agreement executed by the Investors and the Party against whom the enforcement of such amendment is sought.

 

(e)           Assignments, Successors, and No Third-Party Rights.  No Party may assign any of its rights under this Agreement without the prior consent of the other Parties.  Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon, and inure to the benefit of and be enforceable by the respective successors and permitted assigns of the Parties.  Except as set forth in this Section 6, nothing expressed or referred to in this Agreement will be construed to give any Person other than the Parties any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement.

 

(f)           Further Assurances.  The Parties agree (i) to furnish upon request to each other such further information, (ii) to execute and deliver to each other such other documents, and (iii) to do such other acts and things, all as the other Parties may reasonably request for the purpose of carrying out the intent of this Agreement and the documents referred to in this Agreement.

 

(g)           Severability.  If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect.  Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

 

(h)           Section Headings.  The headings of Articles and Sections in this Agreement are provided for convenience only and will not affect its construction or interpretation.  All references to “Section” or “Sections” refer to the corresponding Section or Sections of this Agreement, unless the context indicates otherwise.

 

(i)           Construction.  The Parties have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties and 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.  Any reference to any federal, state, local, or foreign statute or Law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise.  Unless otherwise expressly provided, the word “including” shall mean including without limitation.  The Parties intend that each representation, warranty, and covenant contained herein shall have independent significance.  If any Party has breached any representation, warranty, or covenant contained herein in any respect, the fact that there exists another representation, warranty, or covenant relating to the same subject matter (regardless of the relative levels of specificity) which the Party has not breached shall not detract from or mitigate the fact that the Party is in breach of such representation, warranty, or covenant.  All words used in this Agreement will be construed to be of such gender or number as the circumstances require.

 

  

  

  

 

(j)           Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the Party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

(k)           Specific Performance.  Each of the Parties acknowledges and agrees that the other Parties would be damaged irreparably in the event any of the provisions of this Agreement are not performed in accordance with their specific terms or otherwise are breached.  Accordingly, each of the Parties agrees that the other Parties shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this Agreement and the terms and provisions hereof in any action instituted in any court of the U.S. or any state thereof having jurisdiction over the Parties and the matter, in addition to any other remedy to which they may be entitled, at Law or in equity.

 

(l)           Governing Law; Submission to Jurisdiction.  This Agreement shall be governed by and construed in accordance with the Laws of the State of Texas, without regard to conflicts of Laws principles.  Each of the Parties submits to the jurisdiction of any state or federal court sitting in the State of Texas, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court.  Each of the Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other Party with respect thereto.  Any Party may make service on any other Party by sending or delivering a copy of the process to the Party to be served.  Nothing in this Section 6(l), however, shall affect the right of any Party to serve legal process in any other manner permitted by Law or at equity.  Each Party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by Law or at equity.

 

[Signatures follow on Next Page]

 

  

  

  

 

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

 

	  	  	  	
/s/ Khaled Alattar

	  	  	  	
KHALED ALATTAR

	  	  	  	  
	  	  	  	
Address for notice:

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	
TOP GEAR INC.

	  	  	  	  
	  	  	  	  
	  	  	  	
By:

	
/s/ Braden Richter

	  	  	  	  	
Name:

	
Braden Richter

	  	  	  	  	
Title:

	
President and Chief Executive OfficerExhibit 10.1
    

    
      November 14, 2011
    

    

    

    

    

    
      PERSONAL & CONFIDENTIAL
    

    	
          Mr. Robert P. Story, Jr.
        
	
          12 Fox Hill Road
        
	
          Ashland, MA 01721
        

    

    
      Dear Bob:
    

    
      This letter (the “Agreement”) confirms the agreement that
      we have reached regarding your retirement from Courier Corporation and
      any of its affiliated and/or related entities (the “Company”)
      as its Executive Vice President and Chief Operating Officer.  The
      purpose of this Agreement is to provide for an orderly and amicable
      transition in connection with your retirement that includes provisions
      for severance pay and benefits, non-competition, non-solicitation,
      confidentiality, consulting services and a release of claims.  
    

    
      Of course, if there were no Agreement, the Company would still pay you
      your base salary, including any accrued but unused vacation time,
      through your Retirement Date, and would pay you the bonus you earned for
      FY 2011.  In addition, the Company would provide you with the right to
      continue group medical insurance coverage under COBRA and your rights
      under other benefit and incentive plans and programs would be governed
      by the applicable plan terms and governing practices consistent with
      your status as a retiree effective on your retirement date.  
    

    
      With those understandings and in exchange for the promises of you and
      the Company set forth below, you and the Company agree as follows:  
    

    
      1.        Retirement
    

    
      You hereby confirm that effective December 31, 2011 (the “Retirement
      Date”), you will retire from your full-time employment and resign
      with respect to any and all positions that you hold with the Company,
      including as a member of the Board of Directors of the Company.  Between
      now and the Retirement Date, you will continue to work with Jim Conway
      and the other members of Courier’s senior management to ensure an
      orderly transition of your duties, responsibilities and business
      relationships.  
    

    
      2.        Severance
      Benefits
    

    
      (a)       Severance Pay.  The
      Company shall pay you severance pay bi-weekly on its regular payroll
      dates applicable to your position with the Company at your current rate
      of $16,846.15 per bi-weekly pay period (“Severance Pay”)
      for the two-year period from the date immediately following the
      Retirement Date (the “Severance Pay Period”).
      For purposes of Section 409A of the Internal Revenue Code of 1986, as
      amended (the “Code”), each installment payment is a
      separate payment.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 2
          

        

    

    
      (b)       Attorney Fee
      Reimbursement.  The Company agrees to reimburse you up to $10,000
      for any reasonable attorneys’ fees incurred by you in connection with
      negotiating this Agreement.  This reimbursement will be paid promptly
      upon receipt by the Company of a bill for reasonable legal fees incurred
      by you in connection with this Agreement.  The Company  acknowledges
      that your provision of any bill to the Company is for reimbursement
      purposes only and is not intended to, nor does it, waive the
      attorney-client privilege.  The Company agrees that the bill may be
      redacted to protect against the disclosure of any material protected by
      the attorney-client privileged or any other privilege or protection.  
    

    
      (c)       Health Benefits.  Your
      rights and obligations under COBRA will be explained in a separate
      letter to you describing your medical insurance continuation rights
      under COBRA.  To continue your medical insurance coverage after the
      Retirement Date, you must elect COBRA continuation coverage.  If you
      elect COBRA continuation coverage and provided that you are not
      covered under another health plan, the Company shall continue to pay for
      medical insurance premiums for coverage of you and your beneficiaries to
      the same extent as if you had remained employed in the same position you
      held as of the execution of this Agreement for 24 months following the
      Retirement Date; provided, however, that to the extent that the
      Company may be required to treat these payments as taxable income to
      you, it may withhold additional taxes from the Severance Pay due to
      you.  You will be responsible for the remaining portion of such coverage
      as if you remained employed.  You hereby authorize the deduction of the
      portion for which you are responsible from your Severance Pay.  If you
      are not covered under another group health plan at the end of the
      Severance Pay Period, the Company shall reimburse you for the cost of
      medical insurance benefits under a privately purchased plan through the
      earlier of:  (i) June 2016; or (ii) the date on which you become
      eligible for group plan benefits in an amount equal to the amount the
      Company would have paid for your medical insurance premiums had you
      remained employed in the same position you held as of the execution of
      this Agreement.  To obtain reimbursement, you will notify the Company of
      your premiums for medical insurance benefits under a privately purchased
      plan, provide the Company with proof of payment and advise the Company
      promptly if you become eligible for medical insurance under a group
      health plan.  The reimbursement will be made on a monthly basis and in
      no event will reimbursement for any calendar year be made later than the
      last day of the calendar year following the year in which the premiums
      for medical insurance were incurred.  You will be subject to taxation on
      the amount reimbursed.  
    

    
      3.        Stock
      Transactions
    

    
      You will be subject to the Company’s insider trading policy and
      procedures until January 26, 2012 after which you will no longer be
      obligated to comply with the Company’s trading blackout restrictions
      regarding the purchase or sale of Company stock or the exercise of
      Company stock options, although you will be subject to laws regarding
      insider trading, including, without limitation, any prohibitions arising
      from the possession of material, nonpublic information.  
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 3
          

        

    

    
      4.        401(k) Plan and
      Deferred Compensation Plan
    

    
      (a)       401(k) plan.  All
      contributions to the Company’s 401(k) Plan will continue through
      December 31, 2011. You will be allowed under the 401(k) Plan to maintain
      your accumulated 401(k) account funds until April 1 following the
      calendar year in which you attain age 701⁄2, at which time you will be
      required by law to commence your distribution from the 401(k) Plan.
    

    
      (b)       Deferred Compensation
      Plan  You will receive an additional credit to your
      deferred compensation account in the Company’s deferred compensation
      plan based on your compensation in 2011.  Such account, as adjusted for
      earnings and losses through June 30, 2012, will be paid to you in a lump
      sum in July 2012.  
    

    
      5.        Tax Treatment
    

    
      The Company shall undertake to make deductions, withholdings and tax
      reports with respect to payments and benefits under this Agreement to
      the extent that it reasonably and in good faith determines that it is
      required to make such deductions, withholdings and tax reports.  The
      Company will use best efforts to promptly notify you of the basis for
      all such deductions, withholdings and/or tax reports (as well as copies
      of any such reports or filings) and will make  personnel from its
      finance department available to you or your advisors in the event you
      have any questions regarding the basis for any such deductions,
      withholdings and/or tax reports. Payments under this Agreement shall be
      in amounts net of any such deductions or withholdings.  Nothing in this
      Agreement shall be construed to require the Company to make any payments
      to compensate you for any adverse tax effect associated with any
      payments or benefits or for any deduction or withholding from any
      payment or benefit.  
    

    
      6.        General Release
      of Claims
    

    
      In consideration of, among other terms, the payments and benefits
      described in Section 2, the extent to which you acknowledge you would
      otherwise not be entitled, you voluntarily release and forever discharge
      the Company, its affiliated and/or related entities, its and their
      respective predecessors, successors and assigns, its and their
      respective employee benefit plans and fiduciaries of such plans, and the
      current and former officers, directors, shareholders, employees,
      attorneys, accountants and agents of each of the foregoing in their
      official and personal capacities (collectively referred to as the “Releasees”)
      generally from all claims, demands, debts, damages and liabilities of
      every name and nature, known or unknown (“Claims”), that,
      as of the date when you sign this Agreement, you have, ever had, now
      claim to have or ever claimed to have had against any or all of the
      Releasees.  This release includes, without limitation, all Claims:  
    

    	
           
        	
          
            ●
          

        	
          relating to your employment by and retirement from employment with
          the Company;
        
	

        	

        	
           
        
	

        	
          
            ●
          

        	
          
            of wrongful discharge;
          

        

    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 4
          

        

    

    	
           
        	
          
            ●
          

        	
          of breach of contract;
        
	

        	

        	
           
        
	

        	
          
            ●
          

        	
          of retaliation or discrimination under federal, state or local law
          (including, without limitation, Claims of age discrimination or
          retaliation under the Age Discrimination in Employment Act, Claims
          of disability discrimination or retaliation under the Americans with
          Disabilities Act, Claims of discrimination or retaliation under
          Title VII of the Civil Rights Act of 1964 and Claims of
          discrimination or retaliation under Mass. Gen. Laws ch. 151B);
        
	

        	

        	
           
        
	

        	
          
            ●
          

        	
          under any other federal or state statute (including, but not limited
          to, the Employee Retirement Income Security Act of 1974, as amended);
        
	

        	

        	
           
        
	

        	
          
            ●
          

        	
          of defamation or other torts;
        
	

        	

        	
           
        
	

        	
          
            ●
          

        	
          of violation of public policy;
        
	

        	

        	
           
        
	

        	
          
            ●
          

        	
          for wages, bonuses, incentive compensation, stock, stock options,
          vacation pay or any other compensation or benefits; and
        
	

        	

        	
           
        
	

        	
          
            ●
          

        	
          for damages or other remedies of any sort, including, without
          limitation, compensatory damages, punitive damages, injunctive
          relief and attorney’s fees;
        

    

    
      provided, however, that this release shall not affect your
      rights as a retiree as of the Retirement Date under the Company’s
      benefit and incentive plans and governing practices or your rights under
      this Agreement.  
    

    
      You agree that you shall not seek or accept damages of any nature, other
      equitable or legal remedies for your own benefit, attorney’s fees or
      costs from any of the Releasees with respect to any Claim released by
      this Agreement.  As a material inducement to the Company to enter into
      this Agreement, you represent that you have not assigned to any third
      party and you have not filed with any agency or court any Claim released
      by this Agreement.  
    

    
      The Company represents that it is unaware of any claims, demands, debts,
      damages and liabilities of any kind that the Company may have against
      you  as of the date of this Agreement and that your willingness to enter
      into this Agreement and provide the release set forth in this Section is
      in consideration, in part, on that representation.
    

    
      7.        Consulting
      Services
    

    
      You agree to provide consulting services for the Company until June 2016
      on an as-requested basis; provided, however, that it is not
      expected that you will be asked to provide services for more than an
      average of one day per month.  As part of your consulting services, you
      agree to cooperate reasonably with the Company (including its outside
      counsel) in connection with the contemplation, prosecution and defense
      of all phases of existing, past and future litigation about which the
      Company believes you may have knowledge or information.  You further
      agree to make yourself available at mutually convenient times during and
      outside of regular business hours as reasonably deemed necessary by the
      Company’s counsel.  The Company agrees to take all reasonable steps to
      insure that any required assistance does not interfere with any other
      work in which you may then be engaged. You agree to appear without the
      necessity of a subpoena to testify truthfully in any legal proceedings
      in which the Company calls you as a witness.  The Company will endeavor
      to provide you reasonable notice when requesting your consulting
      services.  You agree to provide consulting services without additional
      compensation for up to 24 days during the Severance Pay Period.  The
      Company will reimburse you for any and all business related expenses (in
      accordance with the Company’s expense reimbursement policies) for
      expenses incurred in the context of any consulting services provided to
      the Company after the Retirement Date.  
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 5
          

        

    

    
      8.        Change of Control
    

    
      In the event of a Change of Control as defined in the Courier
      Corporation Executive Compensation Program which also qualifies as a
      change in control event within the meaning of Section 409A of the Code
      and the regulations promulgated thereunder, your obligation to provide
      consulting services shall cease and any balance due on the severance
      payment obligations set forth in Section 2(a) of this Agreement shall be
      accelerated and paid in full within 30 days of the Change of
      Control.  In addition, if a Change of Control takes place prior to
      December 31, 2013, then the Company shall pay you $37,500, and if a
      Change of Control takes place between December 31, 2013 and June 2016,
      then the Company shall pay you an amount equal to the product of $1,250
      multiplied by the number of months between the Change of Control and
      June 2016.  Such payment shall be made within 30 days after the Change
      of Control and represents a payment towards your medical coverage during
      the period from December 31, 2013 to June 2016.  
    

    
      9.        Return of
      Property
    

    
      You agree that on or before the Retirement Date, you will return to the
      Company all Company property, including, without limitation, keys and
      access cards, credit cards, files and any documents (including
      computerized data and any copies made of any computerized data or
      software) containing information concerning the Company or its finances,
      customers and business relationships (in the latter two cases, actual or
      prospective).  If you discover that you continue to retain any such
      property, you shall return it to the Company immediately.  Any Company
      property provided to you after the Retirement Date in connection with
      your consulting services for the Company, as provided in Section 7 of
      this Agreement, must be returned to Company immediately upon the
      termination of your consulting services for the Company.  The Company
      agrees that you may keep your Company-issued laptop and peripherals
      (after sanitization by the Company’s technology personnel) and that you
      may maintain copies of Board packages provided to you in your capacity
      as a member of the Company’s Board of Directors.  
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 6
          

        

    

    
      10.       Confidential
      Information
    

    
      You understand and agree that you have been employed in a position of
      confidence and trust and have had access to information concerning the
      Company that the Company treats as confidential and the disclosure of
      which could negatively affect the Company’s interests (“Confidential
      Information”).  Confidential Information includes nonpublic
      information regarding (a) marketing strategies, programs, plans and
      methods; (b) pricing policies, product strategies, and methods of
      operation and other business methods; (c) customer lists, customer
      identification, customer prospects, prospective leads or target
      accounts, and other basic customer information; (d) technical data,
      specifications, designs, concepts, discoveries, improvements, product
      plans, research and development information, formulas, compilations,
      programs, methods, techniques, inventions, devices, systems, and
      techniques; (e) expansion plans, management policies and other business
      policies and strategies, (f) business forecasts, financial data, costs,
      sales and revenue reports, and any analyses not publicly disclosed;
      (g) employment lists, salary information and other information regarding
      employees, agents, representatives, consultants and independent
      contractors of the Company; (h) computer programs and software, computer
      source code, integrated computer systems and data, and internal
      procedures and forms; (i) lists of the Company’s vendors and suppliers
      and terms of service contracts; and (j) other information which enables
      the Company and/or its current and proposed customers and business
      partners to compete successfully.  “Confidential Information” does not
      include information that, at the time of disclosure or thereafter, is
      generally available to and known by the public (other than as a result
      of a disclosure by you in violation of this Agreement or other
      obligation), nor does it included information required to be disclosed
      by law, regulation, order, decree or process. You agree that you shall
      not use or disclose any Confidential Information at any time after the
      Retirement Date without the written consent of the Company.  
    

    
      11.       Noncompetition and
      Nonsolicitation
    

    
      For two years after the Retirement Date, you shall not, directly or
      indirectly, (a) whether as owner, partner, shareholder, consultant,
      agent, employee, co-venturer or otherwise, engage, participate, assist
      or invest in any business conducted anywhere in the United States that
      is competitive with any field of business in which the Company was
      engaged or was planning to engage as of the Retirement Date (“Company
      Business”); (b) employ, attempt to employ, recruit or otherwise
      solicit, induce or influence any person to leave employment with the
      Company; or (c) solicit or encourage any customer or supplier to
      terminate or otherwise modify adversely its business relationship with
      the Company.  Notwithstanding the foregoing, you may own up to five
      percent of the outstanding common stock of a publicly held corporation
      that is engaged in a Company Business.  You understand that the
      restrictions set forth in this Section 8 are intended to protect the
      Company’s interest in its Confidential Information and established
      employee, customer and supplier relationships and goodwill.  You agree
      that such restrictions are reasonable and appropriate for this
      purpose.  You further acknowledge that the Company would suffer
      irreparable injury if you breached your obligations under this
      noncompetition agreement and agree that the Company shall have the right
      to injunctive relief to enforce the terms of this noncompetition and
      nonsolicitation agreement.  
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 7
          

        

    

    
      12.       Nondisparagement
    

    
      You agree not to make any disparaging statements concerning the Company
      or any of its affiliates, subsidiaries or current or former officers,
      directors, shareholders, employees or agents.  You further agree not to
      take any actions or conduct yourself in any way that would reasonably be
      expected to affect adversely the reputation or goodwill of the Company
      and its current and former officers, directors, shareholders, employees,
      attorneys, accountants and agents.  You further agree that you shall not
      voluntarily provide information to or otherwise cooperate with any
      individual or entity that is contemplating or pursuing litigation
      against any of the Releasees or that is undertaking any investigation or
      review of any of the Releasees’ activities or practices; provided,
      however, that you may participate in or otherwise assist in any
      investigation or inquiry conducted by the EEOC or the Massachusetts
      Commission Against Discrimination.  These nondisparagement obligations
      shall not in any way affect your obligation to testify truthfully in any
      legal proceeding.  
    

    
      The Company will instruct its directors and James F. Conway III,
      Peter M. Folger, Diana L. Sawyer and Rajeev Balakrishna not to take any
      action or make any statement, orally or in writing, which disparages or
      criticizes you or that would harm your reputation.  
    

    
      13.       Information
      Concerning Actual, Potential or Alleged Financial Irregularities
    

    
      You represent that you are not aware of any actual, potential or alleged
      financial irregularities concerning the Company that have not otherwise
      been disclosed to and acted upon by the Company’s audit committee.  
    

    
      14.       Suspension,
      Termination, and Recoupment of Payments and Attorneys’ Fees
    

    
      In the event the Company contends you have breached a term of this
      Agreement, the Company shall provide notice of that breach and you will
      have 30 days to cure the breach; provided, however, that the
      Company need not provide a cure period with respect to a breach of
      Section 10 or 11 of this Agreement.  If you violate any of your
      obligations in any material respect under Section 10 or 11 of
      this Agreement as reasonably determined by the Company in good faith, in
      addition to any other legal or equitable remedies it may have for such
      breach, the Company shall have the right to terminate or suspend its
      payments to you under Section 2 of this Agreement; provided however that
      you shall have the right to collect any such payments if a court of
      competent jurisdiction finds that you did not violate your obligations
      hereunder with respect to the obligations specified in the notice from
      the Company.  To the extent that such payments have already been made,
      you will be obligated to return such payments to the Company upon demand
      to the extent necessary to compensate the Company for any damages
      found by a court of competent jurisdiction.  The termination, suspension
      or recoupment of such payments in the event of such breach by you will
      not affect your continuing obligations under this Agreement.
      Notwithstanding the foregoing, this provision shall not apply to the
      extent that your breach of this Agreement consists of initiating a legal
      action in which you contend that the release set forth in Section 6 is
      invalid, in whole or in part, due to the provisions of 29 U.S.C.
      § 626(f).  
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 8
          

        

    

    
      15.       Legal Representation
      and Absence of Reliance
    

    
      This Agreement is a legally binding document, and your signature will
      commit you to its terms.  You confirm that you have consulted with an
      attorney before signing this Agreement.
    

    
      You acknowledge that you have carefully read and fully understand all of
      the provisions of this Agreement and that you are voluntarily entering
      into this Agreement.  You also acknowledge that in signing this
      Agreement, you are not relying on any representations by any
      representative of the Company concerning the meaning of any aspect of
      this Agreement.  
    

    
      16.       Enforceability
    

    
      If any portion or provision of this Agreement (including, without
      limitation, any portion or provision of any section of this Agreement)
      shall to any extent be declared illegal or unenforceable by a court of
      competent jurisdiction, then the remainder of this Agreement, or the
      application of such portion or provision in circumstances other than
      those as to which it is so declared illegal or unenforceable, shall not
      be affected thereby, and each portion and provision of this Agreement
      shall be valid and enforceable to the fullest extent permitted by
      law.  You understand that by entering into this Agreement, the Company
      is not admitting that it violated any legal obligation that it owed to
      you.  
    

    
      17.       Waiver
    

    
      No waiver of any provision of this Agreement shall be effective unless
      made in writing and signed by the waiving party.  The failure of any
      party to require the performance of any term or obligation of this
      Agreement, or the waiver by any party of any breach of this Agreement,
      shall not prevent any subsequent enforcement of such term or obligation
      or be deemed a waiver of any subsequent breach.  
    

    
      18.       Entire Agreement
    

    
      This Agreement is the entire agreement between you and the Company with
      respect to your retirement from the Company and the items identified in
      the introductory paragraph of this Agreement.  All previous agreements
      or promises between you and the Company with respect to your retirement
      or other termination of employment are superseded, null and
      void.  Nothing in this Agreement, however, shall be read as terminating
      or superseding the Company’s obligations to you with respect to all
      amounts earned by you as of the Retirement Date under the terms of the
      Company’s executive compensation plans, including without limitation
      bonuses, deferred compensation, and vested stock options and awards.
      This Agreement shall be binding upon each of the parties and upon their
      respective heirs, administrators, representatives, executors, successors
      and assigns and shall inure to the benefit of each party and to their
      heirs, administrators, representatives, executors, successors and
      assigns.  Any payments due to you under the terms of this Agreement
      shall, in the event of your death, be payable to the Robert Story Jr.
      Revocable Trust dated August 19, 2009.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 9
          

        

    

    
      19.       Indemnification
    

    
      You will be eligible for indemnification pursuant to the terms of the
      Company’s by-laws.  
    

    
      20.       Interpretation and
      Enforcement
    

    
      This Agreement shall be interpreted and enforced under the laws of the
      Commonwealth of Massachusetts, without regard to conflict of law
      principles.  In the event of any dispute, this Agreement shall be
      construed as a whole, shall be interpreted in accordance with its fair
      meaning and shall not be construed strictly for or against either you or
      the Company.  In the event that any provision or portion of a provision
      of this Agreement shall be determined to be unenforceable, the remainder
      of this Agreement shall be enforced to the fullest extent possible as if
      such provision or portion of a provision were not included.  This
      Agreement may be modified only by a written agreement signed by you and
      an authorized representative of the Company.  
    

    
      21.       Section 409A
    

    
      To the extent any payment or benefit that you are entitled to receive
      under this Agreement would be considered deferred compensation within
      the meaning of Section 409A of the Code, such payment shall not be
      payable, and such benefit shall not be provided, until the date that is
      the earlier of (a) six months and a day from your separation from
      service or (b) your death.  The Company acknowledges that your
      separation from service will occur on December 31, 2011.  
    

    
      22.       Time for
      Consideration and Effective Date
    

    
      You have the opportunity to consider this Agreement for 21 days before
      signing it.  To accept this Agreement, you must return a signed original
      of this Agreement so that it is received by the undersigned at or before
      the expiration of this 21-day period.  If you sign this Agreement within
      less than 21 days of the date of its delivery to you, you acknowledge by
      signing this Agreement that such decision was entirely voluntary and
      that you had the opportunity to consider this Agreement for the entire
      21-day period.  You further acknowledge that any modifications that the
      Company made to the proposal that it originally delivered to you
      November 4, 2011 were not sufficiently material to restart the
      twenty-one (21) day consideration period and that, in any event, you
      agree, with the advice of your counsel, that the modifications made by
      the Company do not restart the running of the twenty-one (21) day
      consideration period and that you have been afforded reasonable time and
      opportunity to consider the terms of this Agreement.  For the period of
      seven days from the date when this Agreement becomes fully executed, you
      have the right to revoke this Agreement by written notice to the
      undersigned.  For such a revocation to be effective, it must be
      delivered so that it is received by the undersigned at or before the
      expiration of the seven-day revocation period.  This Agreement shall not
      become effective or enforceable during the revocation period.  This
      Agreement shall become effective on the first business day following the
      expiration of the revocation period.  
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    	
          Mr. Robert P. Story, Jr.
        
	
          November 14, 2011
        
	
          
            Page 10
          

        

    

    
      If you agree to these terms, please sign and date below and return this
      Agreement to me within the time limitation set forth above.  
    

    	
           
        	
          Sincerely,
        
	

        	

        	
           
        	

        
	

        	
          COURIER CORPORATION
        
	

        	

        	

        	
           
        
	

        	

        	

        	
           
        
	

        	
          By:
        	

        	
          /s/ Peter M. Folger
        
	

        	

        	

        	
          
            Peter M. Folger
          

        
	

        	

        	

        	
          
            Senior Vice President & CFO
          

        

    

    
      Accepted and agreed to:
    

    	
          (Sign)
        	
          /s/ Robert P. Story, Jr.
        	
           
        	
          
            Date:
          

        	
           
        	
          
            11/14/11
          

        
	

        	
          Robert P. Story, Jr.

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