Document:

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                                                                    Exhibit 10.1

                           NUANCE COMMUNICATIONS, INC.

                              EMPLOYMENT AGREEMENT

     This Agreement is made by and between Nuance Communications, Inc. (the
"Company") and Paul A. Ricci (the "Executive") effective as of August 11, 2006
(the "Effective Date").

     1. Duties and Scope of Employment.

          (a) Positions and Duties. Executive will serve as Chairman of the
Board and Chief Executive Officer of the Company. Executive will render such
business and professional services in the performance of Executive's duties,
consistent with Executive's position within the Company, as shall reasonably be
assigned to him by the Company's Board of Directors (the "Board").

          (b) Board Membership. During the Employment Term (as defined below),
Executive will serve as the Chairman of the Board, subject to any required
stockholder approval.

          (c) Obligations. During the Employment Term, Executive will devote
Executive's full business efforts and time to the Company. For the duration of
the Employment Term, Executive agrees not to actively engage in any other
employment, occupation or consulting activity for any direct or indirect
remuneration without the prior approval of the Board of Directors of the
Company, which approval will not be unreasonably withheld;, provided, however,
that Executive may, without the approval of the Board, serve in any capacity
with any civic, educational or charitable organization, or as a member of
corporate Boards of Directors (but in all cases subject to Executive's
compliance with the terms of the Confidential Information Agreement and the
terms of this Agreement).

     2. Employment Term. Subject to earlier termination as provided for below,
the Company will employ Executive for an initial term of three (3) years
commencing on the Effective Date. The term of employment hereunder shall
automatically extend for successive additional terms of one (1) year each (each,
a "Successive One-Year Term") unless, at least ninety (90) days prior to the end
of the initial three (3) year term or any Successive One-Year Term, the Company
or Executive gives written notice of intent to terminate this Agreement (a
"Notice of Non-Renewal"). The term of employment under this Agreement shall
include the initial three (3) year period and any extension thereof (the
"Employment Term"). If Executive's employment terminates as a result of the
receipt of a Notice of Non-Renewal from the Company, Executive shall be entitled
to the payments and benefits under Section 5(a) of this Agreement.
Notwithstanding the foregoing, Executive and the Company acknowledge that this
employment relationship may be terminated at any time prior to the expiration of
the Employment Term, upon ninety (90) days written notice to the other party,
with or without Cause or for any or no reason, at the option either of the Board
or Executive and that in the event the Company or Executive terminate
Executive's employment with the Company prior to the end of the Employment Term,
Executive only will be entitled to those payments and benefits, if any, provided
for in Section 5 of this Agreement.

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     3. Compensation.

          (a) Base Salary. The Company will pay Executive as compensation for
Executive's services a base salary at the annualized rate of $543,500 through
the period ending September 30, 2006, which amount shall be increased to an
annual base salary of $575,000 effective October 1, 2006 (respectively, the
"Base Salary"). The Base Salary will be paid through payroll periods that are
consistent with the Company's normal payroll practices and will be subject to
the usual, required withholding. Executive's compensation will be reviewed, at a
minimum of once per year, to ensure Executive's total compensation is consistent
with current market practices and in line with Executive's performance.

          (b) Performance Bonus. For the 2006 fiscal year of the Company,
Executive will be eligible to receive a target bonus of up to 81 percent (81%)
of Executive's Base Salary in 2006 based upon the achievement of performance
criteria established by the Compensation Committee of the Board, after
consultation with Executive. For each fiscal year of the Company following its
2006 fiscal year, Executive will be eligible to receive a target bonus of up to
one-hundred percent (100%) of Executive's then Base Salary based upon the
achievement of performance criteria established within four (4) months of the
start of the applicable bonus period by the Compensation Committee of the Board,
after consultation with Executive. The performance standards will be based on
the Company's achievement of goals for proforma revenue and earnings, as defined
by the Compensation Committee of the Board. The actual percentage of Base Salary
payable as a bonus for any year will depend upon the extent to which the
applicable performance criteria have been achieved. Any bonus that actually is
earned will be paid as soon as practicable (but no later than two and one-half
(2 1/2) months) after the end of the fiscal year for which the bonus is earned,
but only if Executive was employed with the Company through the end of such
fiscal year.

          (c) Restricted Stock. At the August 11, 2006 Compensation Committee
Meeting, the Compensation Committee of the Board issued the Executive seven
hundred thirty-five thousand four hundred forty-five (735,445) shares of common
stock of the Company at a per share purchase price equal to the par value of the
Company's common stock and, on October 1, 2007, the Compensation Committee of
the Board will issue Executive an additional fourteen thousand five hundred
fifty-five (14,555) shares of common stock of the Company at a per share
purchase price equal to the par value of the Company's common stock (together,
the "Restricted Stock"). The Restricted Stock awards will vest 100% on the third
anniversary of the Effective Date of this Agreement; provided, however, (i)
375,000 shares shall vest upon the achievement of financial targets for Fiscal
2007 approved by the Board (the "Fiscal 2007 Objectives") and (ii) an additional
375,000 shares shall be scheduled to vest upon the achievement of financial
targets for Fiscal 2008 approved by the Board (the "Fiscal 2008 Objectives").
Except as otherwise specified herein, in the event that Executive's employment
with the Company terminates, any unvested shares of Restricted Stock shall be
forfeited and revert to the Company. The grant of the Restricted Stock shall be
represented by, and subject to, the terms of a Restricted Stock Agreement to be
prepared in accordance with the terms herein.

          In addition, if (i) the Fiscal 2007 Objectives and the Fiscal 2008
Objectives are achieved or (ii) if the closing price of one share of the
Company's common stock on the Nasdaq Global Market is equal to or greater than
$18.00, on a split adjusted basis, for a period of ninety consecutive calendar
days, the Company shall issue Executive an additional two hundred fifty thousand
(250,000) shares of common stock of the Company at a per share purchase price
equal to the par value of the Company's common stock, which shares, if issued,
shall vest on August 11, 2009.

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          (d) Stock Options. At the August 11, 2006 Compensation Committee
Meeting, the Compensation Committee of the Board granted Executive a stock
option grant to acquire one million (1,000,000) shares of the Company's common
stock at an exercise price equal to the closing fair market value as quoted on
NASDAQ on the date of grant (the "Stock Options"). The Stock Options shall vest
in three equal installments annually over a three-year term (i.e. one third of
the Stock Options shall be scheduled to vest on each anniversary of the
Effective Date). The maximum term of the Stock Options will be seven years.
Except as otherwise specified herein, in the event that Executive's employment
with the Company terminates, any unvested Stock Options will be forfeited. The
grant of the Stock Options shall be represented by, and subject to, the terms of
a stock option agreement to be prepared in accordance with the terms herein and
the stock option plan pursuant to which they are granted.

          (e) Car Allowance. During the Employment Term, the Company will
reimburse Executive up to $15,000 per calendar year (or such greater amount as
approved by the Board or Compensation Committee, consistent with the Company's
practice with respect to other executive officers) for use towards a car leased
by the Company or via a car allowance included in the Executive's pay. The lease
allowance is inclusive of insurance costs to cover the leased vehicle.

          (f) Tax & Financial Services Allowance. The Company will reimburse
Executive up to $40,000 for expenses incurred by Executive for reasonable
professional services during the period beginning January 1, 2006 and ending on
September 30, 2006. Effective October 1, 2006 and through the Employment Term,
the Company will reimburse Executive for reasonable professional services
expenses incurred by Executive for tax, financial and/or estate planning. The
Company will reimburse Executive only for expenses that do not exceed $10,000
per year.

     4. Benefits.

          (a) Employee Benefits. During the Employment Term, Executive will be
entitled to participate in the employee benefit plans currently and hereafter
maintained by the Company of general applicability to other senior executives of
the Company, including, without limitation, the Company's group medical, dental,
vision, disability, life insurance, and flexible-spending account plans. The
Company reserves the right to cancel or change the benefit plans and programs it
offers to its employees at any time.

          (b) Executive Medical Benefit. During the Employment Term, the Company
shall offer Executive a supplemental executive medical benefit provided through
a major health network, provided that the expense incurred by the Company shall
not exceed $15,000 per year.

          (c) Post Retirement Medical Benefit. For the period following
Executive's retirement, but not before age 55, until such time as Executive is
age 65, provided Executive is an active full-time employee of the Company at the
time of his retirement, the Company shall reimburse Executive up to $15,000 per
year, net of withholding taxes, for expenses incurred to purchase medical or
health insurance. In the event the expenses incurred by Executive during any
year are less than $15,000, such excess shall be carried forward and shall be
available in future years.

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     5. Severance. Except as set forth below, upon termination of employment by
the Company for any reason, other than following a Change of Control, Death or
Disability, Executive shall receive payment of (a) his Base Salary, as then in
effect, through the date of termination of employment, and (b) all accrued
vacation, expense reimbursements and any other benefits (other than severance
benefits, except as provided below) due to Executive through the date of
termination of employment in accordance with established Company plans and
policies or applicable law (the "Accrued Obligations"). In addition, the
following will apply:

          (a) Involuntary Termination other than for Cause, Death or Disability.
If Executive's employment with the Company is terminated (i) by the Company for
a reason other than Cause (as defined below), Executive becoming Disabled (as
defined below) or Executive's death, or (ii) by the Executive for Good Reason,
then, subject to Executive's compliance with the provisions in Section 5(e),
Executive will be entitled to receive through the term of the Severance Period:
(i) continuing payments of 1.5 times Executive's Base Salary, as then in effect,
during the Severance Period, to be paid periodically in accordance with the
Company's normal payroll policies and subject to the usual, required
withholding, plus 100% of Executive's target Performance Bonus, as then in
effect, during the Severance Period, to be paid periodically in accordance with
the Company's normal payroll policies and subject to the usual, required
withholding, (ii) continued payment by the Company of the group medical, dental
and vision continuation coverage premiums for Executive and Executive's eligible
dependents under Title X of the Consolidated Budget Reconciliation Act of 1985,
as amended ("COBRA") during the Severance Period under the Company's group
health plans, as then in effect; (iii) immediate full vesting on the termination
date of Executive's stock options and unvested Restricted Stock that were
granted prior to the Effective Date and continued vesting during the severance
period for Executive's stock options and unvested Restricted Stock granted after
the Effective Date, and (iv) an extended period of time to exercise certain
outstanding options granted before and after the Effective date. Outstanding
options granted prior to this Agreement shall expire on their original
expiration date. Outstanding options granted after the Effective date shall
expire on either their original expiration date or two years after the
Executive's termination date, whichever is earlier.

          (b) Termination due to Death or Disability. If the Executive's
employment with the Company is terminated due to his Death or his becoming
Disabled, then Executive or Executive's estate (as the case may be) will (i)
receive the Base Salary through the date of termination of employment, (ii) be
entitled to immediate 100% vesting of any Company stock options or Restricted
Stock held by the Executive that were unvested immediately prior to his
termination of employment, (iii) receive Company-paid coverage for a period of
two (2) years for Executive (if applicable) and Executive's eligible dependents
under the Company's health benefit plans (or, at the Company's option, coverage
under a separate plan), providing benefits that are no less favorable than those
provided under the Company's plans immediately prior to Executive's death, (iv)
receive all accrued vacation, expense reimbursements and any other benefits due
to Executive through the date of termination of employment in accordance with
Company-provided or paid plans and policies, and (v) be entitled to receive all
compensation and benefits from the Company for which he is eligible under other
policies or plans.

          (c) Change of Control Benefits. If, within twelve (12) months
following a Change of Control, Executive's employment with the Company is
terminated for a reason other than (i) Cause, (ii) Executive becoming Disabled
or (iii) Executive's death, or if the Executive terminates his employment with
the Company for Good Reason, then, subject to Executive's compliance with the

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provisions in Section 5(e), Executive will be entitled to receive the severance
payments and benefits set forth in Section 5(a) and the post retiree medical
benefit provided under Section 4(c); provided, however Executive shall receive
two (2.0) times his Base Salary as then in effect rather than one-half (1 1/2)
times his Base Salary and immediate 100% acceleration of any unvested options or
awards, rather than continued vesting over the severance period. In addition, if
Executive becomes subject to the excise tax applicable to excess parachute
payments under Section 4999 of the Internal Revenue Code of 1986, as amended,
then the Company (or its successor) will reimburse Executive for up to
$4,000,000 of that tax actually paid by Executive.

          (d) Other Termination. If the Executive terminates employment with the
Company other than for Good Reason (as defined), or if Executive's employment
with the Company is terminated for Cause, then Executive will receive payment of
the Accrued Obligations but he shall not be entitled to any other compensation
or benefits (including, without limitation, accelerated vesting of stock options
and unvested Restricted Stock) from the Company, except to the extent provided
under the applicable stock option agreement(s), Company benefit plans or as may
be required by law (for example, under COBRA).

          (e) Conditions to Receive Severance Package. Except for the Accrued
Obligations, the applicable provisions of the Option Plan and Option Agreement,
and other payments to which Executive may be entitled by law, the severance
payments, continued benefits, continued vesting, vesting acceleration and the
ability to exercise stock options described in this Section 5 will be provided
to Executive if the following conditions are satisfied: (i) Executive complies
with all surviving provisions of the Confidential Information Agreement, any
confidentiality or proprietary rights agreement signed by Executive and the
non-competition provisions set forth herein; and (ii) Executive executes and
delivers to the Company, and does not revoke, a full general release, in a form
acceptable to the Company, releasing all claims, known or unknown, that
Executive may have against the Company, and any subsidiary or related entity,
their officers, directors, employees and agents, arising out of or any way
related to Executive's employment or termination of employment with the Company.

          (f) Cause. For purposes of this Agreement, "Cause" means Executive's
employment with the Company is terminated after a majority of the Board has
found any of the following to exist: (i) the commission by the Executive of a
felony, either in connection with the performance of his obligations to the
Company or which adversely affects the Executive's ability to perform such
obligations; (ii) gross negligence, dishonesty or breach of fiduciary duty; or
(iii) the commission by the Executive of an act of fraud or embezzlement which
results in loss, damage or injury to the Company, whether directly or
indirectly; (iv) disclosure of the Company's confidential or proprietary
information which violates the terms of the Confidential Information Agreement;
or (v) Executive's continued substantial willful nonperformance (except by
reason of Disability) of his employment duties after Executive has received a
written demand for performance by the Board and has failed to cure such
nonperformance within 15 business days of receiving such notice.

          (g) Change of Control. For the purposes of this Agreement, a "Change
of Control" means: (i) any "person" (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended) becomes the
"beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing 50% or more of the total
voting power represented by the Company's then outstanding voting securities; or
(ii) a change in the

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composition of the Board occurring within a two-year period, as a result of
which fewer than a majority of the directors are Incumbent Directors ("Incumbent
Directors" will mean directors who either (A) are members of the Board as of the
Effective Date, or (B) are elected, or nominated for election, to the Board with
the affirmative votes of at least a majority of the Board at the time of such
election or nomination (but will not include an individual whose election or
nomination is in connection with an actual or threatened proxy contest relating
to the election of directors to the Company)); or (iii) the date of the
consummation of a merger or consolidation of the Company with any other
corporation that has been approved by the stockholders of the Company, other
than a merger or consolidation which would result in the voting securities of
the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) more than fifty percent (50%) of the total voting power
represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; or (iv) the date of
the consummation of the sale or disposition by the Company of all or
substantially all the Company's assets.

          (h) Disabled. For purposes of this Agreement, "Disabled" means
Executive being unable to perform the principal functions of his duties due to a
medically certifiable physical or mental impairment, but only if such inability
has lasted or is reasonably expected to last for at least six months. Whether
Executive is Disabled will be determined by a third party administrator of the
Company's long-term disability program.

          (i) Good Reason. For purposes of this Agreement, "Good Reason" means
(i) without the Executive's consent, a significant reduction of the Executive's
duties, position, reporting status, or responsibilities relative to the
Executive's duties, position, reporting status, or responsibilities in effect
immediately prior to such reduction, or the removal of the Executive from such
position, duties and responsibilities or change in reporting status, unless the
Executive is provided with comparable duties, position and responsibilities or
reporting status; also a reduction in duties, position, reporting status or
responsibilities by virtue of the Company being acquired and made part of a
larger entity will constitute "Good Reason" unless the Executive remains in his
position as Chief Executive Officer of a publicly traded company that conducts
substantially the same core operations, business and activities as were
conducted by the Company prior to any such acquisition or similar corporate
transaction; (ii) without the Executive's consent, a substantial reduction, by
the Board of the Executive's Base Salary as in effect immediately prior to such
reduction (unless such reduction is part of an overall Company effort that
effects similarly situated senior executives of the Company); (iii) without the
Executive's consent, the requirement that Executive relocate his principal place
of employment more than fifty (50) miles from the current location of the
Company's principal executive offices; (iv) a material breach by the Company of
this Agreement; and (iv) failure of Executive to be nominated as a Board member.

          (j) Severance Period. For purposes of this Agreement, "Severance
Period" means the period beginning on the date of Executive's termination of
employment with the Company and ending on the date eighteen (18) months later
for all reasons other than a termination following a Change of Control.
"Severance Period" for a termination following a Change of Control means the
period beginning on the date of Executive's termination of employment with the
Company and ending on the date twenty-four (24) months later.

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     6. Confidential Information. Executive agrees to continue to comply with
any agreement Executive has entered into with the Company regarding confidential
information and/or invention assignment (the "Confidential Information
Agreement").

     7. Assignment. This Agreement will be binding upon and inure to the benefit
of (a) the heirs, executors and legal representatives of Executive upon
Executive's death. None of the rights of Executive to receive any form of
compensation payable pursuant to this Agreement may be assigned or transferred
except by will, trust, or the laws of descent and distribution. Any other
attempted assignment, transfer, conveyance or other disposition of Executive's
right to compensation or other benefits will be null and void.

     8. Indemnification. Subject to applicable law, Executive will be provided
indemnification but on terms no less favorable than provided to any other
Company executive officer and subject to the terms of any separate written
indemnification agreement.

     9. Notices. All notices, requests, demands and other communications called
for hereunder will be in writing and will be deemed given (i) on the date of
delivery if delivered personally, (ii) one (1) day after being sent by a well
established commercial overnight service, or (iii) four (4) days after being
mailed by registered or certified mail, return receipt requested, prepaid and
addressed to the parties or their successors at the following addresses, or at
such other addresses as the parties may later designate in writing:

     If to the Company:

     Nuance Communications, Inc.
     One Wayside Road
     Burlington, MA 01803
     Attn: Vice President - Human Resources & Operations

     If to Executive:

     at the last residential address known by the Company.

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

     11. Original Agreement. Executive previously entered into an employment
agreement with the Company on August 11, 2003, as amended from time to time (the
"Original Agreement"). Executive and the Company agree that this Agreement will
supersede and replace the Original Agreement in its entirety.

     12. Non-Competition, and Non-Solicitation. For a period beginning on the
Effective Date and ending 18 months after the Executive ceases to be employed by
the Company (or 24 months following termination of Executive"s employment if
such termination occurs within twelve months following a Change in Control of
the Company), Executive, directly or indirectly, whether as employee, owner,
sole proprietor, partner, director, member, consultant, agent, founder,
co-venturer or otherwise, will: (i) not engage, participate or invest in a
company whose primary business is competitive with the Company; (ii) not engage,
participate or invest in a large Information

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Technology ("IT") company, such as Microsoft or IBM, in a position in which his
principal involvement would be in the business of speech recognition software;
(iii) not solicit,induce or influence any person to leave employment with the
Company; (iv) not directly or indirectly solicit business from any of the
Company's customers and users on behalf of any company defined in Section 12(i)
or (ii), above. Nothing in this Agreement shall prohibit the Executive from
owning (as a passive investment): (A) not more than two percent of any class of
publicly traded securities of any entity or (B) not more than five percent of
any class of non-publicly traded securities of any entity.

     13. Non Disparagement. Following the date Executive ceases to be employed
by the Company, Executive will not disparage in any way the Company, its
Officers, directors, employees, investors, shareholders, administrators,
affiliates, divisions, subsidiaries, predecessor or successor corporations, or
assigns, and will refrain from any defamation, libel or slander of any of those
parties, and any tortious interference with the contracts, relationships and
prospective economic advantage of any of those parties. Likewise, following the
date Executive ceases to be employed by the Company, its officers, directors,
employees, administrators, and affiliates, will not disparage, except as
otherwise required by law, in any way the Executive, and will refrain from any
defamation, libel or slander of the Executive, and, subject to provisions of
paragraph 12 of this Agreement, will refrain from any tortious interference with
the contracts, relationships and prospective economic advantage of the
Executive.

     14. Entire Agreement. This Agreement, together with the Confidential
Information Agreement, represents the entire agreement and understanding between
the Company and Executive concerning the subject matter herein and Executive's
employment relationship with the Company, and supersedes and replaces any and
all prior or contemporaneous agreements and understandings whether written or
oral between the Executive and the Company.

     15. Arbitration and Equitable Relief.

          (a) Except as provided in Section 15(d) below, Executive and the
Company agree that to the extent permitted by law, any dispute or controversy
arising out of, relating to, or in connection with this Agreement, or the
interpretation, validity, construction, performance, breach, or termination
thereof will be settled by arbitration to be held at a location within 45 miles
of the Company's principal executive offices in Massachusetts, in accordance
with the procedures then in effect of the Judicial Arbitration & Mediation
Services, Inc. ("JAMS") (the "Rules"). The arbitrator may grant injunctions or
other relief in such dispute or controversy. The decision of the arbitrator will
be final, conclusive and binding on the parties to the arbitration. Judgment may
be entered on the arbitrator's decision in any court having jurisdiction.

          (b) The arbitrator will apply Massachusetts law to the merits of any
dispute or claim, without reference to rules of conflict of law. Executive
hereby expressly consents to the personal jurisdiction of the state and federal
courts located in Massachusetts for any action or proceeding arising from or
relating to this Agreement and/or relating to any arbitration in which the
parties are participants.

          (c) The Company will pay the direct costs and expenses of the
arbitration. The Company will also reimburse Executive's fees and expenses as
incurred quarterly, including

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reasonable attorneys' fees in connection with any dispute arising out of this
agreement, provided Executive prevails on at least one material issue in such
dispute, or provided an arbitrator does not determine that Executive's legal
positions were frivolous or without legal foundation. In the event Executive
does not so prevail or in the event of such determination, Executive will repay
to the Company any amounts previously reimbursed by it, and Executive will
reimburse the Company for its fees and expenses, including reasonable attorneys'
fees, incurred in connection with the dispute.

          (d) Both the Company and the Executive may apply to any court of
competent jurisdiction for a temporary restraining order, preliminary
injunction, or other interim or conservatory relief, as necessary to enforce the
provisions of the Confidential Information Agreement between Executive and the
Company and/or Section 13 of this Agreement, without breach of this arbitration
agreement and without abridgement of the powers of the arbitrator.

          (e) EMPLOYEE HAS READ AND UNDERSTANDS SECTION 15, WHICH DISCUSSES
ARBITRATION. EMPLOYEE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EMPLOYEE
AGREES TO THE EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT
OF, RELATING TO, OR IN CONNECTION WITH THIS AGREEMENT, OR THE INTERPRETATION,
VALIDITY, CONSTRUCTION, PERFORMANCE, BREACH, OR TERMINATION THEREOF TO BINDING
ARBITRATION, AND THAT THIS ARBITRATION CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE'S
RIGHT TO A JURY TRIAL AND RELATES TO THE RESOLUTION OF ALL DISPUTES RELATING TO
ALL ASPECTS OF THE EMPLOYER/EMPLOYEE RELATIONSHIP, INCLUDING BUT NOT LIMITED TO,
THE FOLLOWING CLAIMS:

               (i) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT;
BREACH OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD
FAITH AND FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL
INFLICTION OF EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION;
NEGLIGENT OR INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC
ADVANTAGE; AND DEFAMATION;

               (ii) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR
MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, THE AMERICANS WITH
DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, AND ANY LAW OF THE STATE
OF CALIFORNIA; AND

               (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND
REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

     16. No Oral Modification, Cancellation or Discharge. This Agreement may be
changed or terminated only in writing (signed by Executive and the Company).

     17. Withholding. The Company is authorized to withhold, or cause to be
withheld, from any payment or benefit under this Agreement the full amount of
any applicable withholding taxes.

     18. Governing Law. This Agreement will be governed by the laws of the
Commonwealth of Massachusetts (with the exception of its conflict of laws
provisions).

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     19. Acknowledgment. Executive acknowledges that he has had the opportunity
to discuss this matter with and obtain advice from his private attorney, has had
sufficient time to, and has carefully read and fully understands all the
provisions of this Agreement, and is knowingly and voluntarily entering into
this Agreement.

     20. Attorneys' Fees. Executive shall be reimbursed his reasonable
attorneys' fees incurred with respect to the negotiation of this Agreement.

     21. Code Section 409A. Notwithstanding anything to the contrary in this
Agreement, if the Company reasonably determines that Section 409A of the
Internal Revenue Code of 1986, as amended, will result in the imposition of
additional tax related to a payment of any severance or other benefits otherwise
due to Executive on or within the six (6) month period following Executive's
termination or separation from service (as defined pursuant to said Section
409A), the severance benefits will accrue during such six (6) month period and
such accrued amount will become payable in a lump sum payment on the date six
(6) months and one (1) day following the date of Executive's termination or
separation from service, as the case may be. All subsequent payments, if any,
will be payable as provided in this Agreement. The Company and Executive agree
to work together in good faith to consider amendments to this Agreement
necessary or appropriate to avoid imposition of any additional tax or income
recognition prior to actual payment to Executive under Section 409A of the Code
and any temporary or final Treasury Regulations and Internal Revenue Service
guidance thereunder.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement on the
respective dates set forth below:

EXECUTIVE

/s/ Paul A. Ricci                       Date November 2, 2006
-------------------------------------
Paul A. Ricci
Chairman and Chief Executive Officer

COMPANY

/s/ Robert Frankenberg                  Date October 20, 2006
-------------------------------------
Robert Frankenberg
Chairman of the Compensation
Committee of The Board of Directors<PAGE>

                                                                    EXHIBIT 10-1

SCHAWK, INC.
RESTRICTED STOCK AWARD AGREEMENT

     THIS AGREEMENT, effective _________, 20__, represents the grant of
Restricted Stock by Schawk, Inc. (the "Company"), to the Participant named
below, pursuant to the provisions of the 2006 Long-Term Incentive Plan (the
"Plan").

     The Plan provides a complete description of the terms and conditions
governing the Restricted Stock. If there is any inconsistency between the terms
of this Agreement and the terms of the Plan, the Plan's terms will completely
supersede and replace the conflicting terms of this Agreement. All capitalized
terms will have the meanings ascribed to them in the Plan, unless specifically
set forth otherwise herein. The parties hereto agree as follows:

RESTRICTED STOCK AWARD INFORMATION

     1. PARTICIPANT. _______________

     2. DATE OF GRANT. _________, 20__

     3. GRANT OF RESTRICTED STOCK. The Company hereby grants the Participant an
Award of _____ shares of Class A Common Stock of the Company, par value $0.008,
("Restricted Stock") pursuant to the terms and conditions contained herein.

     4. VESTING PERIOD. The Restricted Stock will vest and become unrestricted
in accordance with the following:

          (a)  Except as provided otherwise herein, one hundred percent (100%)
               of the Restricted Stock will vest and become unrestricted on (and
               will remain wholly unvested until) the [third] anniversary of the
               Date of Grant, provided the Participant has continued in the
               employment of the Company or its subsidiaries through such date
               (this time period is referred to herein as the "Period of
               Restriction").

          (b)  Section 4(a) to the contrary notwithstanding, the Period of
               Restriction will lapse and the Restricted Stock will become one
               hundred percent (100%) vested and unrestricted upon the
               Participant's termination of employment due to the Participant's
               death, Disability, or Retirement, provided the Participant has
               continued in the employment of the Company or its subsidiaries
               through the occurrence of such event.

     For purposes of this Agreement the term "Disability" will have the same
meaning given to such term in the Company's Long-Term Disability Plan, or any
successor disability plan to such plan.

     For purposes of this Agreement the term "Retirement" will mean the
Participant's attainment of age fifty-five (55) and completion of ten (10)
continuous years of service to the Company measured from the Participant's most
recent date of commencement of employment.

<PAGE>

     5. TERMINATION OF EMPLOYMENT FOR OTHER REASONS. In the event that the
Participant's employment with the Company and all of its subsidiaries terminates
for any reason, other than a reason set forth in Section 4(b) or Section 9,
prior to the third anniversary of the Date of Grant, the Restricted Stock will
be forfeited and transferred to the Company and this Award will be cancelled
upon such termination. The Participant hereby irrevocably grants to the Company
and agrees to execute any document required by the Company in connection with
such forfeiture and transfer.

     6. CERTIFICATE LEGEND. Each certificate representing shares of Restricted
Stock granted pursuant to the Plan will bear the following legend:

          "The sale or other transfer of the shares of stock represented by this
          certificate, whether voluntary, involuntary, or by operation of law,
          is subject to certain restrictions on transfer as set forth in the
          Schawk, Inc. 2006 Long-Term Incentive Plan, and in the associated
          Restricted Stock Award Agreement dated _________, 20__. A copy of the
          Plan and such Restricted Stock Award Agreement may be obtained from
          Schawk, Inc."

     7. REMOVAL OF RESTRICTIONS. Except as may otherwise be provided herein and
in the Plan, the shares of Restricted Stock granted pursuant to this Agreement
will become freely transferable by the Participant on the vesting date set forth
in Section 4 of this Agreement, subject to applicable federal and state
securities laws. Once shares of Restricted Stock are no longer subject to any
restrictions, the Participant will be entitled to have the legend required by
Section 6 of this Agreement removed from the applicable stock certificates.

     8. VOTING RIGHTS AND DIVIDENDS. During the Period of Restriction, the
Participant may exercise full voting rights and will accrue all dividends and
other distributions paid with respect to the shares of Restricted Stock while
they are held. If any such dividends or distributions are paid in shares, such
shares will be subject to the same restrictions on transferability as are the
shares of Restricted Stock with respect to which they were paid.

     9. CHANGE IN CONTROL OF THE COMPANY. If there is a Change in Control of the
Company as described in Article 17 of the Plan, the Restricted Stock will vest
in accordance with, and be subject to the requirements set forth in, such
Article 17.

     10. NONTRANSFERABILITY. During the Period of Restriction, Restricted Stock
awarded pursuant to this Agreement may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated ("Transfer") other than by will
or by the laws of descent and distribution, except as provided in the Plan. If
any Transfer, whether voluntary or involuntary, of Restricted Stock is made, or
if any attachment, execution, garnishment, or lien will be issued against or
placed upon the Restricted Stock, the Participant's right to such Restricted
Stock will be immediately forfeited to the Company, and this Agreement will
lapse.

     11. REQUIREMENTS OF LAW. The granting of Restricted Stock under the Plan
will be subject to all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required.

     12. TAX WITHHOLDING. The Company will have the power and the right to
deduct or withhold, or require the Participant or the Participant's beneficiary
to remit to the Company, an amount sufficient to satisfy federal, state, and
local taxes, domestic or foreign, required by law or regulation to be withheld
with respect to any taxable event arising as a result of this Agreement.

                                        2

<PAGE>

     13. STOCK WITHHOLDING. With respect to withholding required upon any
taxable event arising as a result of Restricted Stock granted hereunder, the
Company, unless notified otherwise by the Participant in writing within thirty
(30) days prior to the taxable event, will satisfy the tax withholding
requirement by withholding Shares having a Fair Market Value equal to the total
minimum statutory tax required to be withheld on the transaction. The
Participant agree to pay to the Company or its subsidiaries any amount of tax
that the Company or its subsidiaries may be required to withhold as a result of
the Participant's participation in the Plan that cannot be satisfied by the
means previously described.

     14. ADMINISTRATION. This Agreement and the Participant's rights hereunder
are subject to all the terms and conditions of the Plan, as the same may be
amended from time to time, as well as to such rules and regulations as the
Committee(1) may adopt for administration of the Plan. It is expressly
understood that the Committee is authorized to administer, construe, and make
all determinations necessary or appropriate to the administration of the Plan
and this Agreement, all of which will be binding upon the Participant.

     15. CONTINUATION OF EMPLOYMENT. This Agreement will not confer upon the
Participant any right to continuation of employment by the Company or its
subsidiaries, nor will this Agreement interfere in any way with the Company's or
its subsidiaries' right to terminate the Participant's employment at any time.

     16. AMENDMENT TO THE PLAN. The Plan is discretionary in nature and the
Board may terminate, amend, or modify the Plan; provided, however, that no such
termination, amendment, or modification of the Plan may in any way adversely
affect the Participant's rights under this Agreement, without the Participant's
written approval.

     17. AMENDMENT TO THIS AGREEMENT. Any amendment or termination of this
Agreement will not accelerate a payment date if such amendment or termination
would subject such amounts to taxation under Code Section 409A.

     18. SUCCESSOR. All obligations of the Company under the Plan and this
Agreement, with respect to the Restricted Stock, will be binding on any
successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company.

     19. SEVERABILITY. The provisions of this Agreement are severable and if any
one or more provisions are determined to be illegal or otherwise unenforceable,
in whole or in part, the remaining provisions will nevertheless be binding and
enforceable.

     20. ADJUSTMENTS. Upon any event set forth in Section 4.4 of the Plan, such
as a change in the capitalization of the Company resulting from a stock split or
a corporate transaction such as any merger, consolidation, separation, or
otherwise, the number and class of shares of Restricted Stock subject to this
Agreement may be equitably adjusted by the Committee, in its sole discretion, to
prevent dilution or enlargement of rights, in accordance with Section 4.4 of the
Plan.

     21. APPLICABLE LAWS AND CONSENT TO JURISDICTION. The validity,
construction, interpretation, and enforceability of this Agreement will be
determined and governed by the laws of the state of Illinois without giving
effect to the principles of conflicts of law. For the purpose of litigating any
dispute that arises under this Agreement, the parties hereby consent to
exclusive

                                        3

<PAGE>

jurisdiction and agree that such litigation will be conducted in the federal or
state courts of the state of Illinois.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
effective as of _________, 20__.

                                        Schawk, Inc.

                                        By:
                                            ------------------------------------

ATTEST:

-------------------------------------

                                        ----------------------------------------
                                        Participant

                                        4

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