This is an agreement made as of January 1, 2004 (this "Agreement") by and between Checkpoint Systems, Inc.
("Company") and Arthur W. Todd ("Executive").
W I T N E S S E T H:
WHEREAS, Company desires to employ Executive and Executive desires to be employed on the terms and
conditions set forth below;
NOW, THEREFORE, in consideration of the mutual covenants and the agreements hereinafter set forth, the
parties hereto, intending to be legally bound, hereby covenant and agree as follows:
1. Term of Employment.
Company agrees to employ Executive and Executive agrees to be employed from January 1, 2004 through
December 31, 2004 (the "Initial Employment Period"). The term of employment under this Agreement shall be
renewed for successive one year periods upon the expiration of the Initial Employment Period (the Initial
Employment Period and, if the period of employment is so extended, such successive periods of employment, are
collectively referred to herein as the "Employment Period"), unless notice of termination of this Agreement is given
by Company at least thirty (30) days prior to the end of the Employment Period, in which case this Agreement
shall terminate at the end of the Employment Period. This Agreement may be otherwise terminated during the
Employment Period only as provided in Section 5 hereof.
a. Company shall pay Executive during the Employment Period a base salary of $206,819.00 per annum (the
"Base Salary"), to be paid in equal installments in accordance with the normal payroll practices of Company.
b. Company shall reimburse Executive for one round trip coach airfare per year for Executive and Executive's
immediate family to return to New Zealand. Company will pay a one-time step up each year on any annual
income taxes resulting from such reimbursement.
c. Executive shall be eligible to participate in such bonus plan(s) of Company as may exist during the Employment
Period (Bonus Plan). Company shall determine the eligibility of Ex