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                                                                  Exhibit 10.33

                              EMPLOYMENT AGREEMENT

     This Executive  Employment  Agreement (the  "Agreement") is entered into by
and between AMERICAN REPROGRAPHICS COMPANY, a Delaware corporation ("ARC) as the
employer;   and  RAHUL  K.  ROY,  a  resident  of   California,   an  individual
("EXECUTIVE"),  as the  employee,  on  January 7, 2005,  but  shall  be
effective only upon the date (the "Effective  Date") of the  effectiveness  of a
Registration  Statement on Form S-1 filed by ARC for the initial public offering
of  ARC's  shares  of  common  stock.  ARC  and  Executive  may be  referred  to
collectively in this Agreement as the "Parties" and individually as a Party.

                                    RECITALS

     ARC has agreed to employ  Executive and Executive has agreed to accept such
employment, subject to the terms and conditions set forth herein.

     Now, therefore, in consideration of the promises,  covenants and agreements
set forth in this Agreement, the Parties agree as follows:

     1. POSITION AND DUTIES

        (a) ARC hereby employs  Executive as its Chief Technology  Officer
("CTO"), and  Executive  agrees  to  serve  ARC in such  capacity,  upon  the
terms  and conditions set forth herein.

        (b)  Executive  shall  report to ARC's  Chief  Operating  Officer
("COO"). Executive's primary responsibilities shall be to:

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             (i) Design,  develop and  implement  technology  solutions  as
required for general business planning regarding  technology and systems
required to maintain ARC's business operations and competitiveness;

             (ii) recognize new developments in technology and anticipate
trends;

             (iii)  update and improve  technology  solutions  acquired by, or
developed within,  ARC to facilitate  ARC to maintain its  competitive  edge in
the market place;

             (iv) establish and advise ARC on long-term  needs for  information
systems and plan strategies for developing  systems and acquiring hardware to
meet ARC's business needs;

             (v) research,  develop and establish  the  infrastructure  required
for the company's  information  management  systems  and to enable the  company
and its systems to remain current with industry standards and trends;

             (vi) serve as technical  project  manager or designate and oversee
project managers related to ARC systems and technology;

             (vii)  be  responsible  for  the  development,  operation,
protection  and maintenance of ARC's software tools and products, including the
PlanWell series, Abacus,  BidCaster,  EWO,  MetaPrint  and  OneView,  and such
new or  additional products as may be owned or developed by ARC from time to
time;

             (viii)  manage and  maintain  ARC's  technology  centers  and
oversee  the training of technical personnel;

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             (ix) ensure that ARC's  intellectual  properties,  including  such
software tools and products, are at all times during the term of, and upon the
expiration or termination  of, this  Agreement,  fully secured and documented in
accordance with industry standards and best practices;

             (x) ensure that, upon the expiration or termination of this
Agreement,  the duties and  responsibilities  of Executive as CTO shall be
transitioned to a new person  hired or otherwise  designated  by ARC as ARC's
new CTO in such a manner that there will be no disruptions or interruptions to
ARC's business; and

             (xi) perform  other duties  commonly  incident to the office and
such other duties and have such other powers as ARC's Chief  Executive  Officer
("CEO") or COO shall designate from time to time.

Without  limiting the foregoing,  Executive  shall have the authority  generally
incident and necessary to perform such duties.

        (c) During the term of this  Agreement,  Executive  will  devote all of
his employment  time and attention to the affairs of ARC and use his best
efforts to promote the business and interests of ARC.  Executive  owes a
fiduciary  duty of loyalty,  fidelity and  allegiance to act at all times in the
best  interests of ARC,  and not to do any act which  would  injure  the
business,  interests,  or reputation of ARC or any of its subsidiaries or
affiliates.

     2. TERM

     The term of this Agreement and of Executive's  employment  hereunder  shall
commence  on the  Effective  Date  hereof  and  continue  until the third  (3rd)
anniversary of the Effective Date unless otherwise terminated in accordance with
the provisions hereof; provided, however, that

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this Agreement  will  automatically  be extended on a year-to-year  basis on the
terms and conditions set forth herein, including the bonus provisions of Section
3(b), unless either party gives written notice to the other at least one hundred
twenty (120) days prior to the expiration of the term of this  Agreement,  which
includes any extensions,  that this Agreement shall terminate at the end of such
term, or extension thereof.

     3. DIRECT COMPENSATION

     In  consideration  of the services to be provided by  Executive,  Executive
shall receive compensation,  less all applicable taxes, social security payments
and other items that ARC is required by law to withhold or deduct therefrom,  as
follows:

        (a) BASE SALARY.  Executive's annual Base Salary shall be $400,000, paid
in 12 equal  monthly  installments  on the last day of each  calendar  month.
Base Salary for any  partial  month shall be prorated on the basis of a 365 day
year. Base  Salary  shall be  subject to annual  review by the COO and ARC's
Board of Directors  Compensation  Committee (the  "Compensation  Committee"),
and may be adjusted  in  light  of  the  financial  performance  of  ARC  or
the  personal performance  of Executive,  but shall in no event be less than
$400,000 per year during to the term of this  Agreement.  After any such change,
Executive's  new level of Base  Salary  shall be  Executive's  Base  Salary for
purposes of this Agreement.

        (b) INCENTIVE BONUS. During the term of this Agreement,  Executive shall
be eligible to receive an annual Incentive Bonus ("Incentive  Bonus") in amount
not exceeding $300,000 per year under performance  criteria to be established by
the CEO and the COO of ARC in consultation with Executive. The Incentive Bonus
shall be paid no later than 60 days  following  the close of each fiscal year,
in cash or ARC common stock, or partly in each, as elected by Executive at least
20 days before the date such Incentive  Bonus is paid. To the extent

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that such  Incentive  Bonus is paid in ARC common  stock,  such  stock  shall be
valued  using the average of the closing  prices of ARC common  stock on the New
York Stock  Exchange for the 10 trading days  immediately  preceding the date of
issuance  of ARC  common  stock in  payment of the  Incentive  Bonus,  provided,
however,  that as a condition  to  receiving  ARC common  stock  Executive  must
deposit  with ARC on the date of issuance  cash in the amount,  if any, by which
the total of employee  withholding taxes required to be withheld with respect to
the entire  Incentive  Bonus  exceeds the cash  portion of the  Incentive  Bonus
available for  withholding.  To be eligible to receive a bonus,  Executive  must
have been employed by ARC during the entire fiscal year to which such  Incentive
Bonus relates.

        (c)  ADDITIONAL  BONUSES.  ARC may  from  time  to  time,  in its
absolute discretion, establish additional bonus programs for Executive.

     4. GENERAL BENEFITS

     During the term of this  Agreement,  Executive  shall be  entitled to other
benefits provided by ARC to its senior  executives from time to time,  including
but not limited to, 401(k) and other retirement  plans,  deferred  compensation,
paid  holidays,  sick  leave  and other  similar  benefits.  Executive  shall be
entitled  to 4 weeks paid  vacation  each  calendar  year  accrued and vested in
accordance with ARC's vacation policy applicable to senior management.

     5. STOCK PLANS

     In the sole discretion of the Board of Directors of ARC, Executive shall be
eligible to participate in stock option, stock purchase, stock bonus and similar
plans of ARC ("Stock Plans") established from time to time by ARC.

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     6. GROUP INSURANCE OR BENEFIT PLANS

     During the term of this Agreement, Executive shall be automatically covered
by ARC group insurance programs  (including any self-insured  programs sponsored
by ARC),  including  medical,  dental,  vision,  disability,  and life,  if any.
Executive's  spouse and  children  which are  eligible for coverage may join the
insurance programs,  subject to ARC's policies and applicable laws. The premiums
for all insurance  programs for Executive  and  Executive's  spouse and eligible
children shall be paid by ARC.

     7. SPECIAL BENEFITS

     Executive shall be allowed additional  employer-paid benefits of his choice
("Special  Benefits"),  including  the  lease of  automobiles,  social,  golf or
athletic club  memberships and other benefits not  specifically  provided for in
this Agreement,  provided, however, that the annual cost to ARC shall not exceed
$15,000. Any employer taxes imposed upon ARC by reason of the furnishing of such
Special Benefits shall be included in the annual $15,000 limitation.  Any unused
allowance for Special  Benefits shall not be carried over to a subsequent  year.

     8. REIMBURSEMENT OF BUSINESS RELATED EXPENSES

     Executive shall be entitled to receive prompt  reimbursement for reasonable
expenses  incurred by him in performing  services  hereunder  during the term of
this Agreement in accordance with the policies and procedures then in effect and
established  by ARC for its employees.  In addition to the Special  Benefits set
forth in Section 7 above,  Executive shall also be entitled to  reimbursement of
Executive membership dues and related ongoing costs of appropriate  professional
organizations which are approved by ARC's COO.

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     9. OBLIGATIONS AND RESTRICTIVE COVENANTS

        (a)  OBLIGATIONS.  During the term of this  Agreement,  Executive shall
not engage in any other employment, occupation or consulting activity for any
direct or indirect remuneration. This obligation shall not preclude Executive
from: (i) serving in any volunteer  capacity with any professional,  community,
industry, civic,  educational  or  charitable  organization;  (ii)  serving as a
member of corporate  boards of  directors,  provided  that  ARC's  COO has
given  written consent,  and these  activities  or  services  do not  materially
interfere  or conflict  with  Executive's  responsibilities  or ability to
perform  his duties under this Agreement;  or (iii) engaging in personal
investment  activities for himself and his family which do not interfere with
the performance of his duties and obligations hereunder.

        (b)  NON-COMPETITION;  NON-SOLICITATION.  The Parties hereto recognize
that Executive's services are unique and the restrictive  covenants set forth in
this Section 9 are  essential  to protect the  business  (including  trade
secret and other confidential  information  disclosed by ARC to, learned by or
developed by Executive  during the course of employment by ARC) and the good
will of ARC. For purposes  of this  Section  9, all  references  to  "ARC"
shall  include  ARC's predecessors,  subsidiaries and affiliates. As part of the
consideration for the compensation and benefits to be paid to Executive
hereunder,  during the term of this Agreement Executive shall not:

             (i) Engage in any business  similar or related to or  competitive
with the business  conducted by ARC described from time to time in ARC's Annual
Report on Form 10-K to its shareholders and Board (the "Core Business of ARC");

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             (ii) Render advice or services to, or otherwise  assist,  any other
person, association,   corporation,  or  other  entity  that  is  engaged,
directly  or indirectly, in any business similar or related to, or competitive
with, the Core Business of ARC;

             (iii)  Transact any business in any manner with or  pertaining to
suppliers or customers of ARC which,  in any manner,  would have, or is likely
to have, an adverse effect upon the Core Business of ARC; or

             (iv) Induce any employee of ARC to  terminate  his or her
employment  with ARC,  or hire or assist  in the  hiring of any such  employee
by any  person or entity not affiliated with ARC.

For purposes of this Agreement,  "affiliate" shall mean any entity which owns or
controls,  is owned or controlled  by, or is under common  ownership or control,
with ARC.

     10. CONFIDENTIALITY; INVENTIONS

        (a) CONFIDENTIALITY. Executive acknowledges that it is the policy of ARC
to maintain  as  secret  and  confidential  all  valuable  and  unique
information heretofore  or  hereafter  acquired,  developed  or used by ARC
relating to the business,  operations,  employees and customers of ARC, which
information gives ARC a competitive  advantage in the  industry,  and which
information  includes technical  knowledge,  know-how  or trade  secrets  and
information  concerning operations,  sales, personnel,  suppliers,  customers,
costs, profits, markets, pricing  policies,  all matters  referred to in Section
10(b) below,  and other confidential information and materials (the
"Confidential Information").

             (i) NON-DISCLOSURE.  Executive recognizes that the services to be
performed by Executive are special and unique, and that by reason of his duties
he will be given,

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acquire or learn Confidential  Information.  Executive  recognizes that all such
Confidential  Information  is the sole  and  exclusive  property  of ARC and its
subsidiaries  or  affiliates.  Executive  shall not,  either during or after his
employment by ARC,  disclose the Confidential  Information to anyone outside ARC
or use the Confidential  Information for any purpose whatsoever,  other than for
the  performance  of  his  duties  hereunder,  except  as  authorized  by ARC in
connection with performance of such duties.

             (ii) RETURN OF CONFIDENTIAL  INFORMATION.  Executive shall deliver
promptly upon  termination  of employment  with ARC, or at any time requested by
ARC, all memos, notes,  records,  reports,  manuals,  drawings,  and any other
documents, whether  in  electronic   form  or  otherwise,   containing   any
Confidential Information,  including  without  limitation all copies of such
materials in any format which Executive may then possess or have under his
control.

        (b) OWNERSHIP OF INVENTIONS; ASSIGNMENT OF RIGHTS.

             (i) DISCLOSURE OF INVENTIONS TO COMPANY.  Employee agrees promptly
to fully disclose  in writing to ARC and to hold in trust for the sole right and
benefit of ARC, or its designee,  all of Employee's rights, titles, and
interests in and to any and all inventions,  discoveries,  developments,
concepts, improvements, trade secrets, formulas, techniques,  processes,
software, and know-how, whether or not  patentable  and  whether  or not
reduced  to  practice,  all  works  of authorship,   whether  or  not
copyrightable,   and  any  and  all  other  like developments or items
conceived,  developed,  or learned by Employee during the period of employment
by ARC,  either alone or jointly with others,  which relate to  or  result  from
the  actual  or  anticipated  business,   work,  research, development or
investigations  of ARC, or which result,

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to any extent, from use of ARC's property,  supplies, equipment or facilities or
of the Proprietary Information (the foregoing hereinafter  collectively referred
to as the "Inventions").

             (ii) INVENTIONS ARE SOLE PROPERTY OF ARC. To the extent Inventions
include material  subject to copyright  protection,  such  materials have been
specially commissioned  by ARC and they  shall be  deemed  "work for hire" as
such term is defined under U.S.  copyright  law.  Employee  acknowledges  and
agrees that all Inventions  shall be the sole property of ARC or any other
entity  designated by it,  and  Employee  hereby  irrevocably  and  exclusively
assigns  to ARC,  its successors,  and assigns,  without further consideration,
all right, title, and interest in and to all such Inventions including, without
limit, any trademarks, service marks, trade names, copyrights, patents, trade
secrets, mask work rights or other intellectual property or proprietary rights
relating to the Inventions, in any and all  countries,  whether or not
registrable  under United  States or foreign  trademark,  copyright,  patent or
similar laws and all applications for registration  thereunder  ("Rights").
Such  assignment  does  not  apply to any invention  which  qualifies  fully
under the  provisions  of Section 2870 of the California  Labor Code  (attached
hereto  for  reference);  provided,  however, Employee  shall  maintain
contemporaneous  written  records  of the  process of creating such an
invention;  and provided further that such invention (including the records
relating  thereto)  remains subject to the disclosure  obligation of the
preceding  paragraph.  To the extent any of Employee's rights in Inventions,
including  without  limitation  any moral rights,  are not subject to assignment
hereunder, Employee further grants to ARC an exclusive, perpetual,  irrevocable,
royalty-free  worldwide  license to such  Inventions for use, sale,  license and
distribution,  marketing,  advertising,  copying  and to make  derivative  works
thereof or any other use ARC wishes.  ARC or any other entity  designated  by it
shall be the sole owner of all Inventions and Rights

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pertaining to the Inventions. In case any Invention is described in a patent
application or disclosed to third parties by Employee within three years after
leaving the employ of ARC, it is to be presumed  that the  Invention  was
conceived  during the period of  Employee's  employment by ARC and the Invention
will belong to ARC unless proved by Executive to have been conceived  following
termination of such employment.  Employee hereby irrevocably and forever waives,
and agrees never to assert any Moral Rights, as defined below, as applicable, in
or to the  Inventions  which  Employee  may now have or  which  may  accrue  to
Employee's  benefit under U.S. or foreign copyright  laws and any and all other
residual  rights and benefits which arise under any other  applicable law now in
force or  hereafter  enacted.  The term "Moral  Rights"  shall mean any and all
rights of paternity or  integrity of the Inventions  and the right to object to
any modification,  translation or use of the Inventions,  and any similar rights
existing  under the  judicial  or statutory  law of any country in the world or
under any  treaty,  regardless  of whether or not such right is  denominated  or
referred to as a moral right.

             (iii)  ASSIGNMENT  OF  INVENTIONS.  Employee  agrees to assist
ARC, or its designee,  at ARC's expense to secure ARC's Rights in and to the
Inventions and will  disclose to ARC all  pertinent  information  and data with
respect to the Inventions   that  is  needed  to  secure  the  Rights  and  will
execute  all applications,  specifications,  assignments  and  other instruments
which  ARC reasonably  requests  to enable ARC to apply for and obtain the
Rights,  and to assign and convey to ARC,  its  successors, assigns,  and
nominees the sole and exclusive  rights,  titles and interests in and to such
Inventions  and Rights. Employee  further agrees that his obligation to execute
or cause to be executed, any such instrument or papers shall continue after the
termination of employment with ARC. In the event that ARC is unable,  after
reasonable  effort,  to secure Employee's signature on any of the foregoing
assignments, instruments or papers,

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whether because of Employee's physical or mental incapacity or for any other
reason whatsoever,  Employee hereby irrevocably  designates and appoints ARC and
its  duly   authorized   officers   and   agents   as Employee's agent   and
attorney-in-fact,  to act for and on  Employee's  behalf and  stead, to execute
and/or  file any  documents,  and to do all  other lawfully permitted  acts to
further the prosecution, issuance, and enforcement of letters patent, copyright,
trademark  and other  analogous  rights  or protections thereon,  or which are
otherwise  necessary  to secure,  apply for or obtain Rights,  or to assign and
convey to ARC,  its  successors,  assigns and nominees  the sole and  exclusive
rights,  titles and interests in and to such Inventions and Rights with the same
legal force and effect as if  executed by Employee.  Employee's  obligation  to
assist ARC in obtaining and enforcing Rights for the  Inventions in any and all
countries shall continue beyond the termination of Employee's  relationship with
ARC  but  ARC  shall  compensate Employee  at  a  reasonable  rate  after  such
termination  for time  actually spent by  Employee  at ARC's  request  for such
assistance.

             (iv)  PRIOR  INVENTIONS.  Any and all  prior  inventions,
discoveries  and improvements made by Employee prior to employment with ARC
shall not be affected by  this  Agreement.  A  complete  list  of  such
inventions,  discoveries  and improvements  made by Employee prior to Employee's
employment  with ARC, to the extent such exist,  are set forth on Exhibit A,
attached hereto and incorporated herein  by  reference.  If  Employee  has no
such  inventions,  discoveries  or improvements to attach as an exhibit hereto,
Employee shall enter "none" on the face of Exhibit A.

        (c) USE OF INFORMATION.  Executive  shall not deliver,  reproduce or in
any way allow  Confidential  Information  to be delivered or used by any third
party without specific  direction or consent of ARC's COO.  Likewise,  Executive
shall not disclose to ARC, use in

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ARC's business, or cause ARC to use, any documents, information or material that
is a trade secret of others.

        (d) PREDECESSORS, SUBSIDIARIES AND AFFILIATES. For purposes of this
Section 10, references to ARC include its predecessors, subsidiaries and
affiliates.

     11. TERMINATION.

     Notwithstanding  any other term or provision  contained in this  Agreement,
this  Agreement  and  the  employment  hereunder  will  terminate  prior  to the
expiration of the term of this Agreement under the following circumstances:

        (a) DEATH. Upon Executive's death.

        (b) DISABILITY.  Upon Executive becoming "Permanently Disabled", which,
for purposes of this Agreement, shall mean Executive's incapacity due to
physical or mental illness or cause,  which, in the written  opinion of
Executive's  regular licensed physician,  results in the Executive being unable
to perform his duties on a full-time basis for 6 months during a period of 12
months.

        (c) TERMINATION BY ARC FOR CAUSE.  Upon written notice  Executive,  ARC
may terminate this Agreement for Cause, which, for purposes of this Agreement,
shall mean termination by ARC in its reasonable discretion because of
Executive's:

             (i) Willful  refusal  without proper cause to perform (other than
by reason of  physical  or  mental  disability  or  death)  the  duties  set
forth in this Agreement or delegated  from time to time in writing by ARC's CEO
or COO,  which remains  uncorrected for 30 days following  written notice to
Executive by ARC's COO; or

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             (ii) Gross negligence,  self dealing or willful  misconduct of
Executive in connection  with the  performance of his duties  hereunder,
including,  without limitation,  misappropriation of funds or property of ARC or
its subsidiaries or affiliates, securing or attempting to secure personally any
profit in connection with any  transaction  entered  into on  behalf  of ARC or
its  subsidiaries  or affiliates, or any willful act or gross negligence having
the effect of injuring the reputation, business or business relationships of ARC
or its subsidiaries or affiliates; or

             (iii) fraud, dishonesty or misappropriation of ARC business and
assets that harms the business of ARC or its subsidiaries or affiliates; or

             (iv) habitual insobriety, abuse of alcohol, abuse of prescription
drugs, or use of illegal drugs; or

             (v) engaging in any criminal activity involving moral turpitude; or

             (vi)  indictment or being held for trial in  connection  with a
misdemeanor involving moral turpitude or any felony; or

             (vii)  conviction  of a felony or entry into a guilty plea that
negatively reflects on Executive's fitness to perform the duties or harms the
reputation or business or ARC or its subsidiaries or affiliates; or

             (viii) any material  breach of any covenants  under this Agreement
or other material  policy of ARC,  other than under  clauses  (i)  through
(vii) of this Section 11(c) which remains  uncorrected for 30 days following
written notice to Executive by ARC's COO.

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        (d) TERMINATION BY ARC WITHOUT CAUSE. Upon written notice to Executive,
ARC may terminate this Agreement at any time without any Cause or reason
whatsoever.

        (e)  TERMINATION BY EXECUTIVE WITH GOOD REASON.  Upon written notice to
ARC of any of the  following  "Good  Reasons," and the failure of ARC to correct
the reduction,  change  or breach  within  30 days  after  receipt  of such
notice, Executive may terminate this Agreement after the occurrence of

             (i) a material  change by ARC in the nature of Executive's  title,
duties, authorities and responsibilities set forth in this Agreement without
Executive's express consent; or

             (ii) a reduction in the nature of Executive's  compensation  as
established under this  Agreement,  other than as  expressly  permitted  in this
Agreement, without Executive's express consent; or

             (iii) a change  in the  officer  (other  than a change  in the
person  who occupies such position) to whom Executive  reports without
Executive's  express consent; or

             (iv) a material  breach by ARC of any material  sections of this
Agreement, other than as set forth in clauses (i) through (iii) of this Section
11(e); or

             (v) a Change of Control,  as defined in Section 11(g), as a result
of which Executive  is not  offered  the same or  comparable  position  in the
surviving company,  or is offered  such  position  but within  twelve  (12)
months  after Executive  accepts such position,  Executive's  employment is
terminated  either without cause or for a Good Reason  described in

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subsections  (i), (ii),  (iii) of this Section 11(e) or in subsection (iv) as to
the employment agreement then applicable to Executive.

        (f)  TERMINATION  BY  EXECUTIVE  WITHOUT  GOOD  REASON.  Upon 45 days
prior written  notice to ARC,  Executive may terminate  this Agreement and
resign from Executive's employment hereunder without any Good Reason.

        (g) CHANGE OF CONTROL.

             (i) For purposes of this Agreement, "Change of Control" shall mean:

                  (A) ARC merges or consolidates with any other  corporation
(other than one of ARC's  subsidiaries),  as a result of which ARC is not the
surviving company, or the shares of ARC voting stock outstanding immediately
after such transaction do not constitute,  become exchanged for or converted
into, more than 50% of the Voting Shares of the merged or consolidated company
(as defined below);

                  (B) ARC sells or otherwise  transfers  or disposes of all or
substantially all of its assets;

                  (C) Any third  person or entity  shall  become  the
Beneficial  Owner,  as defined  by Rule  13(d)-3  under the  Securities
Exchange  Act of 1934,  in one transaction or a series of related  transactions
within any 12 month period, of at least 50% of the Voting Shares of ARC's then
outstanding voting securities.

             (ii)  For  purposes  of this  Agreement,  "Voting  Shares"  shall
mean the combined  voting  securities  entitled to vote in the election of
directors of a corporation, including ARC, or the merged, consolidated or
surviving company, if other than ARC.

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        (h)  EXPIRATION.  For purposes of this  Agreement,  the  expiration of
this Agreement at the end of its term, including any extensions, does not
constitute a termination.

     12. SEVERANCE BENEFITS

        (a) BASIC  BENEFITS.  Upon  expiration or termination of this Agreement
for any reason, and subject to the provisions of Section 12(e) below, Executive
will be entitled to: (i) payment for all Base Salary and unused vacation
accrued and prorated,  but unpaid,  as of the effective date of  termination,
(ii) payment, when due,  of any earned but unpaid  Incentive  Bonus for the
preceding  fiscal year, (iii) any  unreimbursed  business  expenses  authorized
by this Agreement, (iv) continuation of any benefits under Section 6 as required
by applicable law, and (v) such  rights as then exist with  respect to then
vested  stock  options, restricted stock or other rights under similar plans

        (b)  TERMINATION BY ARC FOR CAUSE OR BY EXECUTIVE  WITHOUT GOOD REASON.
If this  Agreement and  Executive's  employment  hereunder is terminated by ARC
for Cause pursuant to Section 11(c), or by Executive without Good Reason
pursuant to Section 11(f),  Executive  shall not be entitled to any  additional
payments or benefits hereunder.

        (c)  TERMINATION BY ARC WITHOUT  CAUSE;  TERMINATION BY EXECUTIVE WITH
GOOD REASON. If this Agreement and Executive's  employment hereunder is
terminated by ARC without Cause pursuant to Section 11(d),  or by Executive for
Good Reason as defined in Section 11(e), subject to Executive's  compliance with
the provisions of Sections 15 and 16 below,  Executive  shall receive the
following  additional payments or benefits:

             (i) Executive's  then Base Salary for the remaining term of this
Agreement, paid as and when due as if this  Agreement  had not been  terminated,
provided,

                                       17
<PAGE>

however,  that if Section 11(e)(5) is applicable to such termination,  such Base
Salary shall  continue to be paid for the greater of the remaining  term of this
Agreement or twelve (12) months;

             (ii) Continuation of coverage and premium payments by ARC under
ARC's group insurance programs for Executive and his eligible family members
under Section 6 for the period during which Base Salary is paid under Section
12(c)(i) above;

             (iii)  Continuation  of  the  Special  Benefits  under  Section  7
of  this Agreement,  for the  period  during  which  Base  Salary is paid  under
Section 12(c)(i) above; and

             (iv) All unvested stock options, restricted stock or similar rights
granted to Executive shall  accelerate and become vested and exercisable
immediately as of the effective date of termination.

        (d)  TERMINATION  BECAUSE  OF DEATH OR  DISABILITY  OF  EXECUTIVE.  If
this Agreement and  Executive's  employment  hereunder is terminated  under
Sections 11(a) or (b) by reason of  Executive's  death or by reason of being
Permanently Disabled,  Executive or his family shall be entitled to continuation
of coverage and premium  payments by ARC under ARC's group insurance  programs
for Executive and his eligible  family members under Section 6 for a period of
12 months after the termination of employment.

        (e) PARACHUTE  PAYMENTS.  In the event that the severance,  acceleration
of stock  options and other  benefits  provided for in this  Agreement or
otherwise payable to Executive (i) constitute  "parachute  payments" within the
meaning of Section 280G (as it may be amended or replaced) of the Internal
Revenue Code of 1986, as amended or replaced  (the "Code") and (ii) but for this
Section  12(e), would be subject to the excise tax imposed by Section

                                       18
<PAGE>

4999 (as it may be amended or  replaced) of the Code (the  "Excise  Tax"),  then
Executive's benefits hereunder shall be either:

             (i) provided to Executive in full; or

             (ii) provided to Executive only as to such lesser extent which
would result in no portion of such benefits being subject to the Excise Tax,
whichever of the foregoing amounts,  taking into account the applicable federal,
state and local income  taxes and the Excise  Tax,  results in the  receipt by
Executive  on an after-tax basis, of the greatest amount of benefits,
notwithstanding that all or some portion of such  benefits may be taxable  under
the Excise Tax.  Unless ARC and Executive otherwise agree in writing, any
determination  required under this Section  12(e)  shall be made in  writing  in
good  faith by ARC `s  independent public accountants (the "Accountants").  In
the event of a reduction in benefits hereunder,  Executive shall be given the
choice of which benefits to reduce. For purposes  of  making  the  calculations
required  by this  Section  12(e),  the Accountants  may  make  reasonable
assumptions  and  approximations  concerning applicable  taxes  and  may  rely
on  reasonable,  good  faith  interpretations concerning the  application of the
Code. ARC and Executive  shall furnish to the Accountants  such  information
and documents as the  Accountants may reasonably request in order to make a
determination  under this Section  12(e).  ARC shall bear all costs the
Accountants  may  reasonably  incur in  connection  with any calculations
contemplated by this Section 12(e).

     13. ARBITRATION AND EQUITABLE RELIEF

        (a) ARBITRATION.  In consideration of Executive's  employment with ARC,
its promise to arbitrate all employment-related  disputes and Executive's
receipt of the  compensation  paid to  Executive  by ARC,  at  present  and in
the  future, Executive agrees that any and all controversies, claims, or
disputes with anyone (including ARC and any employee, officer,

                                       19
<PAGE>

director,  shareholder  or  benefit  plan of ARC in  their  capacity  as such or
otherwise) arising out of, relating to, or resulting from Executive's employment
with ARC or the termination of that employment with ARC, including any provision
of this Agreement, shall be subject to binding arbitration under the arbitration
rules set forth in the California Code of Civil  Procedure  section 1280 through
1294.2,  including  section 1283.05  collectively  (the "Rules") and pursuant to
California law. Disputes which Executive agrees to arbitrate,  and hereby agrees
to waive any right to a trial by jury,  include without  limitation,  any common
law claims,  statutory  claims  under Title VII of the Civil Rights Act of 1964,
the  Americans  With  Disabilities  Act  of  1990,  the  Age  Discrimination  In
Employment Act of 1967, the Older Workers Benefit Protection Act, the California
Fair  Employment And Housing Act, the California  Labor Code (except for workers
compensation or unemployment  insurance claims), or ERISA, claims of harassment,
discrimination  or wrongful  termination  and any other  statutory  claims under
state or federal law.

        (b) PROCEDURE.  Any arbitration  will be administered by JAMS and a
neutral arbitrator  will be  selected  in a manner  consistent  with its  rules
for the resolution of employment disputes. The arbitrator shall have the power
to decide any  motions  brought by any party to the  arbitration,  including
motions  for summary judgment and/or adjudication and motions to dismiss and
demurrers, prior to any  arbitration  hearing.  The arbitrator  shall have the
power to award any remedies,  including attorneys' fees and costs,  available
under applicable law. ARC will pay for any administrative or hearing fees
charged by the arbitrator or JAMS  except  that  Executive  shall pay the first
$200.00 of any  filing  fees associated  with any  arbitration  Executive
initiates.  The  arbitrator  shall administer and conduct any arbitration in a
manner consistent with the Rules. To the  extent  that the JAMS  rules  for the
resolution  of  employment  disputes conflict with the Rules,  the Rules shall
take  precedence.  The decision of the arbitrator shall be in writing.

                                       20
<PAGE>
        (c) REMEDY. Except as provided by the Rules and this Agreement,
arbitration shall be the sole,  exclusive  and final remedy for any dispute
between ARC and Executive.  Accordingly, except as provided for by the Rules and
this Agreement, neither ARC nor  Executive  will be permitted  to pursue court
action  regarding claims that are subject to arbitration. Notwithstanding, the
arbitrator will not have the authority to disregard or refuse to enforce any
lawful ARC policy,  and the  arbitrator  shall not order or require ARC to adopt
a policy not  otherwise required by law which ARC has not adopted.

        (d) AVAILABILITY OF INJUNCTIVE  RELIEF.  In addition to the right under
the Rules to petition the court for  provisional  relief,  ARC may also petition
the court for  injunctive  relief,  notwithstanding  any provision in this
Agreement requiring  arbitration,  where  ARC  alleges  or  claims  a  violation
of  this Agreement,  or any separate  agreement between Executive and ARC
regarding trade secrets, confidential information or non-solicitation,  or
California Labor Code ss.2870. No bond shall be required of ARC. Executive
understands and agrees that any  breach  or  threatened  breach  of  this
Agreement,   including,   without limitation, the provisions of Section 16, or
of any such separate agreement will cause irreparable injury to ARC or its
subsidiaries or affiliates and that money damages will not provide an adequate
remedy  therefore,  and  Executive  hereby consents  to the  issuance of an
injunction.  In the event  either  Party seeks injunctive  relief, the
prevailing Party shall be entitled to recover reasonable costs and attorney fees
related thereto.

        (e) ADMINISTRATIVE  RELIEF. This Agreement does not prohibit Executive
from pursuing an administrative  claim with a local, state or federal
administrative body such as the Department of Fair Employment and Housing, the
Equal Employment Opportunity  Commission or the Workers' Compensation Board.
This Agreement does, however, preclude Executive from pursuing court action
regarding any such claim.

                                       21
<PAGE>

        (f) VOLUNTARY NATURE OF AGREEMENT.  Executive  acknowledges and agrees
that he is  executing  this  Agreement  voluntarily  and  without any duress or
undue influence by ARC or anyone else.  Executive further acknowledges and
agrees that he has carefully read this Agreement, that he has asked any
questions needed for him to understand the terms,  consequences and binding
effect of this Agreement, and that he fully  understands this Agreement,
including that HE IS WAIVING HIS RIGHT TO A JURY TRIAL. Finally, Executive
acknowledges that he has been provided an  opportunity  to seek the advice of an
attorney of his choice before  signing this Agreement.

     14. GOVERNING LAW

     This  Agreement  shall be  governed by and  construed  and  interpreted  in
accordance with the laws of the State of California without regard to California
conflict of laws principles.

     15. RELEASE

     In exchange for the benefits and other  consideration  under this Agreement
to which Executive  would not otherwise be entitled,  Executive shall enter into
and execute a release  substantially  in the form  attached  hereto as Exhibit B
(the  "Release")  upon his  termination  of  employment.  Unless the  Release is
executed by Executive  and  delivered  to ARC within  thirty (30) days after the
termination of Executive's employment with ARC, Executive shall receive only the
basic severance  benefits  provided under Section 12(a) of this Agreement and no
additional benefits under Section 12.

     16. CONSULTING AGREEMENT

     Upon the  expiration or earlier  termination of this  Agreement,  Executive
shall continue to provide  limited  services to ARC, at ARC's  request,  for the
sole purpose of carrying out the

                                       22
<PAGE>

provisions of Sections  1(b)(ix) and (x) for a period of up to 12 months,  which
Executive  acknowledges  are vital to the  welfare of ARC and its  business  and
shareholders.  Such services shall be performed  during normal business hours on
normal  business  days,  or at  such  other  times  and  days as  Executive  may
reasonably  request.  Executive shall be paid at the hourly rate then prevailing
for  consultants  performing  similar  services in the San  Francisco  Bay Area.
During such  consulting  period,  the  provisions  of Sections 10, 13, 14 and 16
through 21 will continue to apply.

     17. NOTICES

     Any  notices  or  other  communications  desired  or  required  under  this
Agreement shall be in writing, signed by the Party making the same, and shall be
deemed  delivered when personally  delivered or on the second business day after
the same is sent by certified or registered mail, postage prepaid,  addressed as
follows (or to such other address as may be designated by like written notice):

     If to Executive:      At the last residential address known by ARC

     If to ARC:            American  Reprographics  Company
                           700 North Central Avenue, Suite 550
                           Glendale, CA 91203
                           Attn.: Chief Executive Officer

     18. SEVERABILITY

     In the event that any provision of this Agreement becomes or is declared by
a court of competent  jurisdiction  to be illegal,  unenforceable  or void, this
Agreement shall continue in full force and effect without said provision.

                                       23
<PAGE>

     19. ASSIGNMENT

     Except as  otherwise  specifically  provided  herein,  neither  Party shall
assign this Agreement or any rights  hereunder  without the consent of the other
Party, and any attempted or purported  assignment  without such consent shall be
void;  provided  that  Executive's  consent  under this  Agreement  shall not be
required hereby for any of the transactions  involving a Change of Control. This
Agreement  shall  otherwise  bind and inure to the benefit of the Parties hereto
and their respective successors,  assigns, heirs, legatees, devisees, executors,
administrators and legal representatives.

     20. ENTIRE AGREEMENT

     This Agreement  contains the entire agreement of the Parties and supersedes
all prior or contemporaneous  negotiations,  correspondence,  understandings and
agreements  between the Parties  regarding the subject matter of this Agreement.
Any prior employment agreement,  bonus agreement or other compensation agreement
between Executive and ARC or any predecessor, subsidiary or affiliate of ARC, is
hereby  terminated on and as of the Effective  Date.  This  Agreement may not be
amended or modified except in writing signed by both Parties.

     21. WAIVER

     If either Party waives any breach of any provisions of this  Agreement,  he
or it shall not thereby be deemed to have  waived any  preceding  or  succeeding
breach of the same or any other provision of this Agreement.

                                       24
<PAGE>

     22. COUNTERPARTS

     This  Agreement  may be  executed in  counterparts,  each of which shall be
deemed an original,  but all of which together shall constitute one and the same
instrument.

     IN WITNESS WHEREOF,  the undersigned have executed this Agreement as of the
date first hereinabove set forth.

AMERICAN REPROGRAPHICS                  EXECUTIVE
COMPANY,
a Delaware corporation

By:   /s/ S. Chandramohan               By:        /s/ Rahul K. Roy
      _______________________                   _____________________________
                                                Rahul K. Roy
                                        Address:
                                                _____________________________
Title:  CEO                                     _____________________________

                                       25
<PAGE>

                                    EXHIBIT A

                           PRIOR INVENTIONS DISCLOSURE

                                   PURSUANT TO

                                SECTION 10(b)(iv)

1.       Mirroring Technology (now the property of ARC)

2.       E-Com Database (now the property of ARC)

3.       Accounting Packages

4.       Ink Mixing Software

5.       CD-ROM Retrieval Engine

   /s/ Rahul K. Roy
___________________________
Rahul Roy

                                       26
<PAGE>

                                    EXHIBIT B

                                RELEASE AGREEMENT

     I understand that my position with American  Reprographics  Company ("ARC")
terminated  effective  _______________  (the "Separation  Date"). ARC has agreed
that if I choose  to sign this  Agreement,  ARC will pay me  severance  benefits
(minus the standard  withholdings  and deductions)  pursuant to the terms of the
Executive  Employment  Agreement  entered  into on  __________  __, 2004 between
myself and ARC (the "Severance Benefits). I understand that I am not entitled to
the  Severance  Benefits  unless I sign this  Agreement.  I  understand  that in
addition to the Severance Benefits, ARC will pay me all of my accrued salary and
vacation, to which I am entitled by law.

     In  consideration  for the  Severance  Benefits I am  receiving  under this
Agreement,  I agree not to use or disclose any of ARC's proprietary  information
without  written  authorization  from ARC,  to  immediately  return all  Company
property and documents  (including all  embodiments of proprietary  information)
and all copies  thereof in my possession or control,  and to release ARC and its
officers, directors, agents, attorneys, employees,  shareholders, and affiliates
from  any and  all  claims,  debts,  liabilities,  demands,  causes  of  action,
attorneys' fees, damages, or obligations of every kind and nature,  whether they
are  known  or  unknown,  arising  at any time  prior  to the  date I sign  this
Agreement. This general release includes, but is not limited to: all federal and
state  statutory and common law claims,  claims  related to my employment or the
termination  of my employment or related to breach of contract,  tort,  wrongful
termination,  discrimination,  wages  or  benefits,  or  claims  for any form of
compensation.  This  release is not intended to release any claims I have or may
have against any of the released parties for (a)  indemnification as a

                                       27
<PAGE>

director,  officer,  agent or employee under applicable law, charter document or
agreement,  (b) severance  and other  termination  benefits  under my employment
agreement  and any  related  written  documents,  (c) health or other  insurance
benefits based on claims already  submitted or which are covered claims properly
submitted in the future,  (d) vested rights under  pension,  retirement or other
benefit plans,  or (e) in respect of events,  acts or omissions  occurring after
the date of this Release Agreement.

     In releasing  claims unknown to me at present,  I am waiving all rights and
benefits under Section 1542 of the  California  Civil Code, and any law or legal
principle of similar effect in any jurisdiction:

         "A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE
         CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE
         TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
         MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."

     I acknowledge that I am knowingly and voluntarily waiving and releasing any
rights I may have under the  federal Age  Discrimination  in  Employment  Act of
1967, as amended ("ADEA").  I also acknowledge that the consideration  given for
the waiver in the above paragraph is in addition to anything of value to which I
was already  entitled.  I have been advised by this writing,  as required by the
ADEA that:  (a) my waiver and  release do not apply to any claims that may arise
after my signing of this Agreement;  (b) I should consult with an attorney prior
to  executing  this  release,  (c) I have  twenty-one  (21) days within which to
consider this release (although I may choose to voluntarily execute this release
earlier);  (d) I have seven (7) days  following the execution of this release to
revoke the Agreement;  (e) this Agreement will not be effective until the eighth
day after  this  Agreement  has been  signed  both by me and by ARC

                                       28
<PAGE>

("Effective  Date");  and I will not be paid any of the Severance Benefits until
this Agreement has become effective.

     This Agreement constitutes the complete,  final and exclusive embodiment of
the entire agreement between ARC and me with regard to the subject matter hereof
I am not relying on any promise or  representation  by ARC that is not expressly
stated  herein.  This Agreement may only be modified by a writing signed by both
me and a duly  authorized  officer  of ARC.  I accept and agree to the terms and
conditions stated above:

AMERICAN REPROGRAPHICS                         EXECUTIVE
COMPANY, a Delaware corporation

By:                                            By:
      ___________________________                      ____________________
      ___________________________                      Rahul K. Roy
                                               Address:
                                                       ____________________
                                                       ____________________
Title:___________________________

                                       29exv10w62

 

EXHIBIT 10.62

THE GYMBOREE CORPORATION

RESTRICTED STOCK AWARD NOTICE

2004 EQUITY INCENTIVE PLAN

     The Gymboree Corporation (the “Company”) hereby grants to Participant a Restricted Stock Award
(the “Award”) for shares of the Company’s Common Stock. The Award is subject to all the terms and
conditions set forth in this Restricted Stock Award Notice (the “Award Notice”) and in the
Restricted Stock Award Agreement and the Company’s 2004 Equity Incentive Plan (the “Plan”), which
are attached to and incorporated into the Award Notice in their entirety.

	 	 	 
	Participant:

	 	Blair W. Lambert
	 
	 	 
	Grant Date:

	 	January 10, 2005
	 
	 	 
	Vesting Commencement Date:

	 	January 10, 2005
	 
	 	 
	Number of Shares:

	 	50,000
	 
	 	 
	Fair Market Value Per Share on Grant Date:

	 	$12.60
	 
	 	 
	Vesting Schedule:

	 	1/2 of the shares subject to
the Award will vest and the
restrictions thereon shall lapse
on the second anniversary of the
Vesting Commencement Date.
	 
	 	 
	 
	 	
1/48th of the shares
subject to the Award will vest
and the restrictions thereon
shall lapse monthly thereafter
over the next two years.

Additional Terms/Acknowledgement: The undersigned Participant acknowledges receipt of, and
understands and agrees to, the Award Notice, the Restricted Stock Award Agreement and the Plan.
Participant further acknowledges that as of the Grant Date, the Award Notice, the Restricted Stock
Award Agreement and the Plan set forth the entire understanding between Participant and the Company
regarding the Award and supersede all prior oral and written agreements on the subject.

	 	 	 
	THE GYMBOREE CORPORATION

	 	PARTICIPANT
	 
	 	 
	
	 	 
	

	 	                                                            
	By: Lisa Harper

	 	Blair W. Lambert
	Its: Chief Executive Officer / Chairman

	 	Taxpayer ID:                                         
	

	 	Address: 3128 Vichy Avenue
	

	 	               Napa, CA 94558
	

	 	
o Check Box if Not Legally Married
	Attachments:

	 	PARTICIPANT’S SPOUSE
	1. Restricted Stock Award Agreement
	 	 
	2. 2004 Equity Incentive Plan

	 	                                                            
	3. Plan Summary

	 	                    Signature
	 

	 	Print Name:                                         

 

 

THE GYMBOREE CORPORATION

2004 EQUITY INCENTIVE PLAN

RESTRICTED STOCK AWARD AGREEMENT

     Pursuant to your Restricted Stock Award Notice (the “Award Notice”) and this Restricted Stock
Award Agreement (this “Agreement”), The Gymboree Corporation (the “Company”) has granted you a
Restricted Stock Award (the “Award”) under its 2004 Equity Incentive Plan (the
"Plan”) for the number of shares of the Company’s Common Stock indicated in your Award Notice.
Capitalized terms not explicitly defined in this Agreement but defined in the Plan shall have the
same definitions as in the Plan.

     The details of the Award are as follows:

1. Vesting

     The Award will vest and no longer be subject to forfeiture according to the vesting schedule
set forth in the Award Notice (the “Vesting Schedule”). Shares subject to the portion of the Award
that has vested and is no longer subject to forfeiture according to the Vesting Schedule are
referred to herein as “Vested Shares.” Shares subject to the portion of the Award that has not
vested and remains subject to forfeiture under the Vesting Schedule are referred to herein as
"Unvested Shares.” The Unvested Shares will vest (and to the extent so vested cease to be Unvested
Shares remaining subject to forfeiture) in accordance with the Vesting Schedule (the Unvested and
Vested Shares are collectively referred to herein as the “Shares”). The Award will terminate and
the Shares will be subject to forfeiture upon your Termination of Service as set forth in Section
2.

2. Termination of Award upon Termination of Service

     Upon your Termination of Service, any portion of the Award which has not vested as provided in
Section 1 will immediately terminate. Unless the Plan Administrator determines otherwise prior to
your Termination of Service, all Unvested Shares shall immediately be forfeited upon your
Termination of Service without payment of any further consideration to you. Notwithstanding
Section 7.6 of the Plan, for purposes of the Award and this Agreement, a termination of your
employment as the Company’s Chief Operating Officer will be deemed a Termination of Service.

3. Consideration for Award

     Consideration has been paid by you to the Company for the Award in the form of services
rendered.

4. Securities Law Compliance

     4.1 You represent and warrant that you (a) have been furnished with a copy of the Plan and all
information which you deem necessary to evaluate the merits and risks of receipt of the Shares, (b)
have had the opportunity to ask questions and receive answers concerning

 

 

the information received about the Shares and the Company, and (c) have been given the
opportunity to obtain any additional information you deem necessary to verify the accuracy of any
information obtained concerning the Shares and the Company.

     4.2 You hereby agree that you will in no event sell or distribute all or any part of the
Shares unless (a) there is an effective registration statement under the Securities Act and
applicable state securities laws covering any such transaction involving the Shares or (b) the
Company receives an opinion of your legal counsel (concurred in by legal counsel for the Company)
stating that such transaction is exempt from registration or the Company otherwise satisfies itself
that such transaction is exempt from registration. You understand that the Company has no
obligation to you to register the Shares with the SEC and has not represented to you that it will
so register the Shares.

     4.3 You confirm that you have been advised, prior to your receipt of the Shares, that neither
the offering of the Shares nor any offering materials have been reviewed by any administrator under
the Securities Act or any other applicable securities act (the “Acts”) and that the Shares have not
been registered under any of the Acts and therefore cannot be resold unless they are registered
under the Acts or unless an exemption from such registration is available.

     4.4 You hereby agree to indemnify the Company and hold it harmless from and against any loss,
claim or liability, including attorneys’ fees or legal expenses, incurred by the Company as a
result of any breach by you of, or any inaccuracy in, any representation, warranty or statement
made by you in this Agreement or the breach by you of any terms or conditions of this Agreement.

5. Transfer Restrictions

     5.1 Restrictions on Transfer. Shares will not be sold, transferred, assigned, encumbered or
otherwise disposed of in contravention of the provisions of this Agreement. Except as otherwise
provided in this Agreement, such restrictions on transfer, however, will not apply to (a) a
gratuitous transfer of the Shares, provided, and only if, you obtain the Company’s prior written
consent to such transfer, (b) a transfer of title to the Shares effected pursuant to your will or
laws of intestate succession, or (c) a transfer to the Company in pledge as a security for any
purchase-money indebtedness incurred by you in connection with the acquisition of the Shares.

     5.2 Transferee Obligations. Each person (other than the Company) to whom the Shares are
transferred by means of one of the permitted transfers specified in Section 5.1 must, as a
condition precedent to the validity of such transfer, acknowledge in writing to the Company that
such person is bound by the provisions of this Agreement, to the same extent the Shares would be so
subject if retained by you.

6. Section 83(b) Election for Award

     You understand that under Section 83(a) of the Code, the excess of the Fair Market Value of
the Unvested Shares on the date the forfeiture restrictions lapse over the purchase

-2-

 

price, if any, paid for such Shares will be taxed, on the date such forfeiture restrictions
lapse, as ordinary income subject to payroll and withholding tax and tax reporting, as applicable.
For this purpose, the term “forfeiture restrictions” means the right of the Company to receive back
any Unvested Shares upon termination of your employment or services with the Company or a Related
Company. You understand that you may elect under Section 83(b) of the Code to be taxed at the time
the Unvested Shares are acquired, rather than when and as the Unvested Shares cease to be subject
to the forfeiture restrictions. Such election (an “83(b) Election”) must be filed with the
Internal Revenue Service within 30 days from the Grant Date of the Award. Even if the Fair Market
Value of the Unvested Shares on the Grant Date equals the purchase price, if any, (and thus no tax
is payable), you must file the election within the 30-day period to avoid the risk of adverse tax
consequences in the future.

     You understand that there is a risk the Internal Revenue Service might challenge the Company’s
determination of the Fair Market Value of the Shares, in which case you will be deemed to have
received more ordinary income than originally estimated. You also understand that (a) you will not
be entitled to a deduction for any ordinary income previously recognized as a result of the 83(b)
Election if the Unvested Shares are subsequently forfeited to the Company, and (b) the 83(b)
Election may cause you to recognize more ordinary income than you would have otherwise recognized
if the Internal Revenue Service determines that the value of the Unvested Shares on the date the
Shares are transferred is higher than the Fair Market Value of the Shares on that date as
determined by the Company and/or the value of the Unvested Shares subsequently declines.

     THE FORM FOR MAKING AN 83(b) ELECTION IS ATTACHED TO THIS AGREEMENT AS EXHIBIT B. YOU
UNDERSTAND THAT FAILURE TO FILE SUCH AN ELECTION WITHIN THE 30-DAY PERIOD MAY RESULT IN THE
RECOGNITION OF ORDINARY INCOME BY YOU AS THE FORFEITURE RESTRICTIONS LAPSE. You further understand
that an additional copy of such election form should be filed with your federal income tax return
for the calendar year in which the date of this Agreement falls. You acknowledge that the
foregoing is only a summary of the federal income tax laws that apply to the receipt of the
Unvested Shares under this Agreement and does not purport to be complete. YOU FURTHER ACKNOWLEDGE
THAT THE COMPANY HAS DIRECTED YOU TO SEEK INDEPENDENT ADVICE REGARDING THE APPLICABLE PROVISIONS OF
THE CODE, THE INCOME TAX LAWS OF ANY MUNICIPALITY, STATE OR FOREIGN COUNTRY IN WHICH YOU MAY
RESIDE, AND THE TAX CONSEQUENCES OF YOUR DEATH.

     You agree to execute and deliver to the Company with this Agreement a copy of the
Acknowledgment and Statement of Decision Regarding Section 83(b) Election attached hereto as
Exhibit A. You further agree that you will execute and deliver to the Company with this Agreement
a copy of the 83(b) Election attached hereto as Exhibit B if you chooses to make such an election.

-3-

 

7. Book Entry Registration of the Shares

     The Company will issue the Shares by registering the Shares in book entry form with the
Company’s transfer agent in your name and the applicable restrictions will be noted in the records
of the Company’s transfer agent in the book entry system. No certificate(s) representing all or a
part of the Shares may be issued until the Shares become Vested Shares.

8. Stop-Transfer Notices

     You understand and agree that, in order to ensure compliance with the restrictions referred to
in this Agreement, the Company may issue appropriate “stop-transfer” instructions to its transfer
agent, if any, and that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records. The Company will not be required to (a) transfer
on its books any Shares that have been sold or transferred in violation of the provisions of this
Agreement or (b) treat as the owner of the Shares, or otherwise accord voting, dividend or
liquidation rights to, any transferee to whom the Shares have been transferred in contravention of
this Agreement.

9. Independent Tax Advice

     You acknowledge that determining the actual tax consequences to you of receiving or disposing
of the Shares may be complicated. These tax consequences will depend, in part, on your specific
situation and may also depend on the resolution of currently uncertain tax law and other variables
not within the control of the Company. You are aware that you should consult a competent and
independent tax advisor for a full understanding of the specific tax consequences to you of
receiving or disposing of the Shares. Prior to executing this Agreement, you either have consulted
with a competent tax advisor independent of the Company to obtain tax advice concerning the receipt
or disposition of the Shares in light of your specific situation or you have had the opportunity to
consult with such a tax advisor but chose not to do so.

10. Withholding and Disposition of Shares

     As a condition to the removal of restrictions from your Vested Shares registered in book entry
form with the Company’s transfer agent, you agree to make arrangements satisfactory to the Company
for the payment of any federal, state, local or foreign withholding tax obligations that arise
either upon receipt of the Shares or as the forfeiture restrictions on any Shares lapse.
Notwithstanding the previous sentence, you acknowledge and agree that the Company and any Related
Company has the right to deduct from payments of any kind otherwise due to you any federal, state
or local taxes of any kind required by law to be withheld with respect the Award.

11. General Provisions

     11.1 Assignment. The Company may assign its forfeiture rights at any time, whether or not
such rights are then exercisable, to any person or entity selected by the Company’s Board of
Directors.

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     11.2 No Waiver. No waiver of any provision of this Agreement will be valid unless in writing
and signed by the person against whom such waiver is sought to be enforced, nor will failure to
enforce any right hereunder constitute a continuing waiver of the same or a waiver of any other
right hereunder.

     11.3 Cancellation of Shares. If the Company or its assignees exercises the Company’s
forfeiture rights in accordance with the provisions of this Agreement, then, from and after such
time, the person from whom such Shares are to be forfeited will no longer have any rights as a
recipient of such Shares, such Shares will be deemed forfeited in accordance with the applicable
provisions of this Agreement, and the Company or its assignees will be deemed the owner and
recipient of such Shares, whether or not the certificates therefor have been delivered as required
by this Agreement.

     11.4 Undertaking. You hereby agree to take whatever additional action and execute whatever
additional documents the Company may deem necessary or advisable in order to carry out or effect
one or more of the obligations or restrictions imposed on either you or the Shares pursuant to the
express provisions of this Agreement.

     11.5 Agreement Is Entire Contract. This Agreement constitutes the entire contract between the
parties hereto with regard to the subject matter hereof. This Agreement is made pursuant to the
provisions of the Plan and will in all respects be construed in conformity with the express terms
and provisions of the Plan.

     11.6 Successors and Assigns. The provisions of this Agreement will inure to the benefit of,
and be binding on, the Company and its successors and assigns and you and your legal
representatives, heirs, legatees, distributees, assigns and transferees by operation of law,
whether or not any such person will have become a party to this Agreement and agreed in writing to
join herein and be bound by the terms and conditions hereof.

     11.7 No Employment or Service Contract. Nothing in this Agreement will affect in any manner
whatsoever the right or power of the Company, or a Related Company, to terminate your employment
or services on behalf of the Company, for any reason, with or without Cause.

     11.8 Shareholder of Record. You will be recorded as a shareholder of the Company and will
have, subject to the provisions of this Agreement and the Plan, all the rights of a shareholder
with respect to the Shares.

     11.9 Counterparts. This Agreement may be executed in two or more counterparts, each of which
will be deemed an original, but which, upon execution, will constitute one and the same instrument.

     11.10 Governing Law. This Agreement will be construed and administered in accordance with
and governed by the laws of the State of California.

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