Document:

Exhibit 10.10

 

AIRCRAFT LEASE AGREEMENT

 

This Aircraft Lease Agreement (“Lease”) is made
and entered into as of March 15, 2004, by and between JOSTENS HOLDING CORP., a
Delaware corporation (“Lessor”), with its principal place of business at
5501 American Boulevard West, Minneapolis, Minnesota 55437, and JOSTENS, INC.,
a Minnesota corporation (“Lessee”), with its principal place of business
at 5501 American Boulevard West, Minneapolis, Minnesota 55437.

 

W I T N E S S E T H

 

WHEREAS, Lessor has
purchased a certain Citation CJ2 aircraft, manufacturer’s serial number 111,
current registration number N219FL, including two (2) Williams/Rolls Royce
FJ44-2C aircraft engines, bearing manufacturer’s serial numbers 126090 and
126091 installed thereon (collectively the “Aircraft”);

 

WHEREAS, Lessee
desires to Lease the Aircraft from Lessor on the terms and subject to the
conditions set forth herein; and

 

WHEREAS, Lessor and
Lessee desire that all flight operations conducted by Lessee under this Lease
be conducted pursuant to Part 91 of the Federal Aviation Regulations and that
this Lease not be construed as giving rise to air taxi operations under Part
135 of the Federal Aviation Regulations.

 

NOW, THEREFORE, the
parties hereto agree as follows:

 

1.                                       Lease
of Aircraft.  Pursuant to the terms
and conditions of this Lease, Lessor agrees to lease to Lessee, and Lessee
agrees to lease from Lessor, the Aircraft for the term of this Lease.

 

2.                                       Fees.  In consideration for Lessor’s lease of the
Aircraft to Lessee, Lessee shall pay to Lessor aircraft lease fees as set forth
on the Lease Supplement attached hereto (the “Aircraft Lease Fees”) in
such amounts and at such times as are set forth therein.

 

3.                                       Term.  This Lease shall commence on the date hereof
and shall continue in effect for a period of one year, and shall automatically
renew on an annual basis unless either party shall give notice to the other
that it desires to terminate or unless terminated earlier in accordance with
the terms hereof.

 

4.                                       Costs
of Operation.  All costs of
operating the Aircraft, including, without limitation, costs of aviation fuel,
oil and additives for the Aircraft, shall be for the account of, and paid by,
Lessee.

 

5.                                       Repair
and Maintenance; Logbooks and Records.

 

(a)                                  Lessee
hereby represents and warrants to Lessor that the Aircraft shall be maintained
in good flying condition in conformity with all applicable federal and state
laws, rules and regulations.  All
routine Aircraft inspections, maintenance and services shall be for the account
of, and paid by, Lessor.

 

 

(b)                                 Lessee
shall maintain all logs, manuals, inspection data, modification and overhaul
records required to be maintained with respect to the Aircraft (collectively, “Logbooks”).

 

6.                                       Inspection
Right.  Lessor or its designee shall
have the right to inspect the Aircraft at any reasonable time upon reasonable
advance notice.  At the time of such
inspection, Lessee shall make available to Lessor or its designee the Logbooks.

 

7.                                       Disclaimer
of Warranty.  NOTWITHSTANDING
ANYTHING IN THIS LEASE TO THE CONTRARY, LESSOR EXPRESSLY DISCLAIMS ANY IMPLIED
WARRANTY AS TO AIRWORTHINESS, DESIGN, VALUE, CONDITION, SUITABILITY, ABSENCE OF
ANY LATENT OR OTHER DEFECTS WHETHER OR NOT DISCOVERABLE, ABSENCE OF OBLIGATION
BASED ON STRICT LIABILITY IN TORT OR ANY OTHER REPRESENTATION OR WARRANTY OF
ANY KIND WHATSOEVER; AND LESSEE HEREBY WAIVES, RELEASES, RENOUNCES AND
DISCLAIMS EXPECTATION OF OR RELIANCE UPON ANY SUCH WARRANTY OR WARRANTIES.  LESSOR SHALL NOT HAVE ANY RESPONSIBILITY OR
LIABILITY TO LESSEE OR ANY OTHER PERSON, WHETHER ARISING IN CONTRACT OR TORT
OUT OF ANY NEGLIGENCE OR STRICT LIABILITY OF LESSOR OR OTHERWISE, FOR (i) ANY
LIABILITY, LOSS OR DAMAGE CAUSED OR ALLEGED TO BE CAUSED DIRECTLY OR INDIRECTLY
BY THE AIRCRAFT OR ANY ENGINE OR ANY PART THEREOF OR BY ANY INADEQUACY THEREOF
OR DEFICIENCY OR DEFECT THEREIN OR BY ANY OTHER CIRCUMSTANCE IN CONNECTION
THEREWITH, (ii) THE USE, OPERATION OR PERFORMANCE OF THE AIRCRAFT OR ANY RISKS
RELATING THERETO, (iii) ANY INTERRUPTION OF SERVICE, LOSS OF BUSINESS OR ANTICIPATED
PROFITS OR CONSEQUENTIAL DAMAGES OR (iv) THE DELIVERY, OPERATION, SERVICING,
MAINTENANCE, REPAIR, IMPROVEMENT OR REPLACEMENT OF THE AIRCRAFT.  IN NO EVENT SHALL LESSOR BE LIABLE TO LESSEE
HEREUNDER FOR ANY CONSEQUENTIAL, INCIDENTAL, SPECIAL, INDIRECT OR PUNITIVE
DAMAGES, WHETHER ARISING IN CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE),
INDEMNITY OR OTHERWISE.

 

8.                                       Insurance.  Lessor shall purchase and maintain insurance
policies covering full hull damage for the Aircraft, and passenger and public
liability with such coverage as Lessor deems satisfactory.  Lessor shall furnish Lessee and Sublessees
(if any) with evidence of such insurance naming Lessee as an insured.  Lessee shall operate the Aircraft in strict
compliance with the terms, conditions and limitations of, and in the
geographical areas allowed by, such insurance policies.

 

9.                                       Other
Expenses.  Lessee agrees to provide
its own flight following, dispatch, communications and weather briefing in
connection with Lessee’s lease of the Aircraft.  All other costs and expenses in connection with Lessee’s
operation of the Aircraft, including but not limited to, commissary expenses,
landing fees, parking fees, hangar fees and annual registration fees or taxes,
shall be paid by Lessee.

 

10.                                 Pilots.
 All pilots shall be type-rated in the
Aircraft and meet the minimum requirements imposed or recommended by the
manufacturer of the Aircraft, the Federal Aviation

 

 

Administration
or the Aircraft’s insurer, as such requirements or recommendations may change
from time to time.

 

11.                                 Payments.  All payments due to Lessor under this Lease
shall be paid to Lessor in immediately available funds on the date payable
hereunder by wire transfer to an account specified by Lessor in a notice given
to Lessee in accordance with the provisions hereof, except that if Lessor shall
consent thereto or shall fail to specify an account to which wire transfer of
funds shall be made, Lessee may make payment by check drawn payable to Lessor
and sent to Lessor’s address, or at such other address or to such other person
as the Lessor may from time to time direct by notice in writing to Lessee.

 

12.                                 Default.  Each of the following events shall
constitute an “Event of Default” hereunder (whatever the reason for such
event and whether it shall be voluntary or involuntary, or come about or be
effected by operation of law, or be pursuant to or in compliance with any
judgment, decree or order of any administrative or governmental body):

 

(a)                                  Lessee
shall fail to make any payment of any Aircraft Lease Fees within forty five
(45) days after the same shall become due and such failure shall continue for
thirty (30) days after Lessee’s receipt of written notice thereof given by
Lessor;

 

(b)                                 Lessee
shall breach any covenant, condition or agreement set forth in this Lease;

 

(c)                                  Lessee
shall or shall attempt to remove, sell, transfer, encumber, part with
possession of, or assign the Aircraft or any part thereof, except as permitted
by Section 17 hereof;

 

(d)                                 Lessee
shall use or permit the Aircraft to be used for any criminal or unlawful
purpose, or the Aircraft shall be subject to seizure or confiscation for
alleged criminal or unlawful purposes;

 

(e)                                  Lessee
shall be insolvent, be generally not paying its debts as they become due, make
an assignment for the benefit of creditors or consent to the appointment of any
custodian, receiver, trustee or other officer with similar powers, or any
proceeding shall be commenced by or against Lessee under any bankruptcy,
reorganization, insolvency, receivership, liquidation or dissolution law of any
jurisdiction; or

 

(f)                                    Any
representation or warranty made by Lessee in this Lease is or shall become
incorrect in any material respect.

 

13.                                 Remedies.

 

(a)                                  Upon
the occurrence and continuance of any Event of Default, Lessor may exercise any
or all of the following remedies as Lessor in its sole discretion shall elect:

 

(i)                                     by notice in
writing (except that written notice shall not be required for events of
insolvency or bankruptcy) terminate this Lease, whereupon all rights of Lessee
to the use of the Aircraft shall cease and terminate; and/or

 

 

(ii)                                  proceed by
appropriate court action, either at law or in equity, to enforce performance by
Lessee of the applicable covenants, conditions and agreements set forth in this
Lease or to recover damages for the breach thereof; and/or

 

(iii)                               collect from Lessee all
reasonable costs, charges and expenses, including reasonable legal fees and
disbursements, incurred by Lessor by reason of an occurrence of an Event of
Default, as additional Aircraft Lease Fees.

 

(b)                                 The
remedies set forth in subparagraph (a) above are cumulative, and any or all
thereof may be exercised in lieu of or in addition to each other or any
remedies at law, in equity or under statute. 
Lessor also may exercise any available remedies at law, in equity or
under statute in lieu of the remedies set forth in subparagraph (a).

 

(c)                                  The
waiver of any Event of Default shall not operate or be construed as a waiver of
any other or subsequent Event of Default.

 

14.                                 Return
of the Aircraft.  Upon termination
of the Lease, aircraft shall be returned to a location in Minnesota or as
otherwise designated by Lessor in the 48 continental states.

 

15.                                 Indemnification.  Lessee agrees to indemnify Lessor against
any and all losses, liabilities (including tax liabilities), damages and
expenses (collectively, “Losses”) arising out of or in any manner
connected with Lessee’s possession and operation of the Aircraft during the
term of this Lease, including, without limitation, Losses arising by reason of
claims for injury to or death of persons and loss of or damage to property to
the extent not compensable under any insurance policy.

 

16.                                 Compliance
with Regulations and Other Requirements. 
The parties agree to comply with the requirements of all laws, rules and
regulations applicable to the operation, maintenance and lease of the
Aircraft.  Lessee shall operate the
Aircraft in accordance with (i) the Aircraft manufacturer’s operating and
maintenance instructions, a copy of which previously have been provided to
Lessee, (ii) the requirements, if any, of Lessor’s insurance provider, and
(iii) all applicable terms and conditions of this Lease.

 

17.                                 Representations
and Warranties of Lessee.  Lessee
represents and warrants to Lessor as follows:

 

(a)                                  Lessee
is duly organized, validly existing and in good standing under the laws of the
State of Minnesota and authorized to do business in Minnesota.  Lessee has full power and authority to enter
into and perform its obligations under this Lease.

 

(b)                                 This
Lease has been duly and validly authorized, executed and delivered on behalf of
Lessee and is a valid and binding agreement of Lessee, enforceable in
accordance with its terms.

 

(c)                                  The
execution and delivery of this Lease, the incurrence and performance of the
obligations set forth herein and the lease of the Aircraft contemplated herein
will not violate or constitute a default under, or a breach of (i) any term or
provision of the

 

 

certificate of incorporation, by-laws or
other organizational documents of Lessee, (ii) any agreement or instrument by
which Lessee is bound, or (iii) any order, rule, law or regulation applicable
to Lessee of any court, governmental body, administrative agency or panel
having jurisdiction over Lessee.

 

18.                                 Assignment
or Subleasing.  Lessee may not
assign this Lease without the express prior written consent of Lessor, and any
assignment without such consent shall be void. 
Notwithstanding the foregoing, Lessee may sublet or timeshare the
Aircraft to one or more parties pursuant to documentation reasonably acceptable
to Lessor, so long as Lessee shall not be released from any of its obligations
hereunder and the arrangement does not otherwise violate the terms of this
Lease.

 

19.                                 Operational
Control  of the Aircraft.  Lessee shall have possession, command and
operational control of the Aircraft during such times as the Aircraft is leased
to Lessee, and Lessee shall have sole authority over initiating, conducting or
terminating any flights scheduled pursuant to this Lease.

 

20.                                 Termination.  Upon termination of this Lease pursuant to
the terms hereof, neither party shall have any further liability to the other
hereunder other than for any payments due to Lessor under this Lease that have
accrued through the date of termination, and indemnification obligations under
Section 14.

 

21.                                 Entire
Lease; Modification; Governing Law. 
This Lease constitutes the entire agreement between the parties hereto
with respect to the lease of the Aircraft and supersedes all prior
agreements.  No agreement other than
this Lease shall be binding on the parties hereto unless in writing and signed
by the party against whom enforcement is sought.  This Lease may be amended or modified only by a written instrument
executed by each party hereto.  This
Lease shall be governed by and construed in accordance with the laws of the
State of Minnesota without regard to or application of principles of conflicts
of laws.

 

22.                                 Ownership.
The Aircraft is, and shall at all times be and remain, the sole and exclusive
property of Lessor, and Lessee shall have no right, title or interest therein
or thereto except as expressly set forth in this Lease.

 

23.                                 Part
91 Operations.  The parties intend
that all flight operations to be conducted by Lessee under this Lease shall be
conducted in accordance with Part 91 of the Federal Aviation Regulations, and
that nothing herein shall be construed as giving rise to an air taxi operation
or as otherwise requiring that such flight operations be conducted under Part
135 of said Regulations.

 

24.                                 Truth
in Leasing.  THE AIRCRAFT, AS
EQUIPMENT, BECAME SUBJECT TO THE MAINTENANCE REQUIREMENTS OF PART 91 OF THE
FEDERAL AVIATION REGULATIONS (“FARS”) UPON THE REGISTRATION OF THE
AIRCRAFT WITH THE FEDERAL AVIATION ADMINISTRATION.  PRIOR TO EXECUTING THIS LEASE, LESSOR REVIEWED THE AIRCRAFT’S
MAINTENANCE AND OPERATING LOGS AND FOUND THAT THE AIRCRAFT HAS BEEN MAINTAINED
AND INSPECTED UNDER PART 91, AS APPLICABLE, OF THE FARS DURING THE LAST 12
MONTHS.  LESSOR

 

 

CERTIFIES THAT THE AIRCRAFT PRESENTLY
COMPLIES WITH THE APPLICABLE MAINTENANCE AND INSPECTION REQUIREMENTS OF PART 91
OF THE FARS.  LESSOR CERTIFIES THAT THE
AIRCRAFT WILL BE MAINTAINED AND INSPECTED UNDER PART 91 OF THE FARS FOR
OPERATIONS TO BE CONDUCTED UNDER THIS LEASE. 
UPON EXECUTION OF THIS LEASE, AND DURING THE TERM HEREOF, LESSEE, WHOSE
NAME AND ADDRESS ARE JOSTENS, INC., 5501 AMERICAN BOULEVARD WEST, MINNEAPOLIS,
MINNESOTA 55437, ACTING BY AND THROUGH DAVID TAYEH (SIGNATURE:  s/s David A. Tayeh), WHO EXECUTES
THIS SECTION SOLELY IN HIS CAPACITY AS CHIEF FINANCIAL OFFICER OF LESSEE,
CERTIFIES THAT LESSEE SHALL BE RESPONSIBLE FOR THE OPERATIONAL CONTROL OF THE
AIRCRAFT UNDER THIS LEASE.  LESSEE
FURTHER CERTIFIES THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH
APPLICABLE FARS.  THE PARTIES HERETO
ACKNOWLEDGE THAT AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND
PERTINENT FARS MAY BE OBTAINED FROM THE NEAREST FEDERAL AVIATION ADMINISTRATION
FLIGHT STANDARD DISTRICT OFFICE, GENERAL AVIATION DISTRICT OFFICE OR AIR
CARRIER DISTRICT OFFICE.

 

I, THE UNDERSIGNED, s/s
Greg Mans, THE CHIEF PILOT OF JOSTENS, INC., THE LESSEE NAMED IN THE
FOREGOING AIRCRAFT LEASE AGREEMENT, CERTIFY THAT I AM RESPONSIBLE FOR
OPERATIONAL CONTROL OF THE AIRCRAFT AND THAT I UNDERSTAND MY RESPONSIBILITIES
FOR COMPLIANCE WITH THE APPLICABLE FEDERAL AVIATION REGULATIONS.

 

 

IN
WITNESS WHEREOF, the parties have executed this Lease as of
the day and year first above written.

 

	
   

  	
  JOSTENS HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ 
  David A. Tayeh

  	
   

  
	
   

  	
   

  	
  David
  A. Tayeh

  
	
   

  	
   

  	
  Senior
  Vice President and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JOSTENS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ 
  Marjorie J. Brown

  	
   

  
	
   

  	
   

  	
  Marjorie
  J. Brown

  
	
   

  	
   

  	
  Vice
  President and Treasurer

  

 

 

LEASE SUPPLEMENT

TO AIRCRAFT LEASE AGREEMENT

BETWEEN JOSTENS HOLDING CORP. (“LESSOR”)

AND JOSTENS, INC. (“LESSEE”)

DATED AS OF MARCH 15, 2004

 

A.                                   Definitions

 

All
capitalized terms used herein and not expressly defined herein shall have the
same respective meanings as are set forth in the Aircraft Lease Agreement to
which this Lease Schedule is attached.

 

B.                                     Aircraft Lease Fees

 

1.                                       Pursuant
to Section 2 of the Lease, Lessee shall pay Lessor during the term of the Lease
a monthly Aircraft Lease Fee in the amount of $35,000.00, plus any and all
applicable sales, use and other tax thereon, as well as any property taxes
associated with the housing of the Aircraft at its hangar location in St. Paul,
Minnesota.

 

2.                                       Aircraft Lease Fees shall be due and payable
on the 1st business day of each month except that if the Lease
should commence on or after such date, the Aircraft Lease Fee payable to Lessor
for that month shall be prorated based on a 30-day month.Exhibit
10.11

 

TIME-SHARING
AGREEMENT

(N219FL)

 

This Time-Sharing Agreement (the “Agreement’) is made
effective as of March 15, 2004 (the “Effective Date”), by and between JOSTENS,
INC., a Minnesota corporation (“Sublessor”) and DLJ MERCHANT BANKING III, INC.,
a Delaware limited partnership (“Sublessee”).

 

RECITALS

 

WHEREAS, Sublessor is the lessee of that certain
aircraft identified as a Citation Jet CJ2, bearing serial number 111and FAA
registration number N219FL, including two (2) Williams/Rolls Royce FJ44-2C
aircraft engines, bearing manufacturer’s serial numbers 126090 and 126091
installed thereon, together with the auxiliary power unit, avionics, equipment,
components, accessories, instruments and other items installed in or attached
to the airframe, all spare parts, any replacement part(s) or engine(s) which
may be installed on the aircraft from time to time, and all logs, manuals and
other records relating to such aircraft (collectively, the “Aircraft”); and

 

WHEREAS, Sublessor employs a fully qualified flight
crew to operate the Aircraft; and

 

WHEREAS, Sublessee desires to lease the Aircraft and
flight crew from Sublessor on a time-sharing basis, as defined in Section
91.501(c)(1)of the Federal Aviation Regulations (“FARs”).

 

NOW, THEREFORE, for and in consideration of the mutual
promises, covenants and conditions herein set forth, Sublessor and Sublessee
agree as follows:

 

1.                                       Lease
of Aircraft.  Sublessor agrees to
lease the Aircraft to Sublessee pursuant to the provisions of FAR 91.501(c)(1)
and to provide a fully qualified flight crew for all operations for the period
commencing on the Effective Date of this Agreement and terminating on March 15,
2009, or sooner pursuant to Section 18. 
Nothing contained in this Agreement shall be deemed to prohibit
Sublessor, in its discretion, from substituting for the Aircraft any different
aircraft of any type or model.

 

2.                                       Sublessee’s
Payment Obligations. Sublessee shall pay Sublessor for each flight
conducted under this Agreement an amount equal to the sum of each category of
expense set forth below, provided  however, such amount shall in
no event exceed the sum of the following expenses authorized by FAR Section
91.501(d):

 

(a)                                  Fuel,
oil, lubricants, and other additives;

 

(b)                                 Travel
expenses of the crew, including food, lodging and ground transportation;

 

(c)                                  Hangar
and tie down costs away from the Aircraft’s base of operation;

 

 

(d)                                 Insurance
obtained for the specific flight;

 

(e)                                  Landing
fees, airport taxes and similar assessments;

 

(f)                                    Customs,
foreign permit, and similar fees directly related to the flight;

 

(g)                                 In-flight
food and beverages;

 

(h)                                 Passenger
ground transportation;

 

(i)                                     Flight
planning and weather contract services; and

 

(j)                                     An
additional charge equal to 100% of the expenses listed in subparagraph (a) of
this Section 2.

 

3.                                       Invoicing
for Flights.  Sublessor shall pay
all expenses related to the operation of the Aircraft when incurred and will
provide, or contract with third parties to provide, a monthly invoice to
Sublessee setting forth the expenses of each specific flight through the last
day of the month in which any flight or flights for the account of Sublessee
occur, which expenses shall not exceed the amount permitted under FAR Section
91.501(d). Sublessee shall pay Sublessor for the total amount set forth on each
such invoice within thirty (30) days of receipt of such invoice. Should
Sublessor receive from Sublessee any amounts under this Agreement not otherwise
allowed under the applicable FAR provisions, Sublessor shall refund such amounts
to Sublessee or apply such amounts to the account of Sublessee promptly after
discovering such unauthorized payments.

 

4.                                       Taxes.  The parties acknowledge that, with the
exception of 2.(g) and (h), the payments specified in Section 2 from Sublessee
to Sublessor are subject to the federal excise tax imposed under Section 4261
of the Internal Revenue Code of 1986, as amended (the “Commercial
Transportation Tax”). Sublessee shall pay to Sublessor (for remittance to the
appropriate governmental agency) all Commercial Transportation Tax applicable
to flights of the Aircraft conducted hereunder.

 

5.                                       Request
for Flights by Sublessee.  Sublessee
shall provide Sublessor with requests for flight time and proposed flight
schedules as far in advance of any given flight as is reasonably possible and
in any event at least forty-eight (48) hours in advance of any requested
departure time. Requests for flight time shall be in a form, whether written or
oral, mutually convenient to, and agreed upon by the parties. In addition to
the proposed schedules and flight times, Sublessee shall provide at least the
following information for each proposed flight at least twenty-four (24) hours
in advance of the scheduled departure as required by Sublessor or Sublessor’s
flight crew:

 

(a)                                  proposed
departure point;

 

(b)                                 destination;

 

(c)                                  date
and time of flight;

 

2

 

(d)                                 number
of anticipated passengers;

 

(e)                                  nature
and extent of luggage and/or cargo to be carried;

 

(f)                                    date
and time of return flight, if any; and

 

(g)                                 any
other information concerning the proposed flight that may be pertinent or
required by Sublessor or Sublessor’s flight crew.

 

6.                                       Scheduling Flights.  Sublessor shall have final authority over
the scheduling of the Aircraft; provided, however, that Sublessor shall use
reasonable efforts to accommodate Sublessee’s needs and to avoid conflicts in
scheduling.  Sublessee acknowledges that
maintenance and inspection of the Aircraft shall take precedence over
scheduling of the Aircraft.

 

7.                                       Maintenance
of Aircraft.  Sublessor shall be
solely responsible for securing maintenance, preventive maintenance and all
required or otherwise necessary inspections of the Aircraft and shall take such
requirements into account in scheduling the Aircraft. No period of maintenance,
preventive maintenance or inspection shall be delayed or postponed for the
purpose of scheduling the Aircraft, unless such maintenance or inspection can
be safely conducted at a later time in compliance with all applicable laws and
regulations, and within the discretion of the pilot-in-command. The
pilot-in-command shall have final and complete authority to cancel or terminate
any flight for any reason or condition which in his or her judgment would
compromise the safety of the flight.

 

8.                                       Operational
Control.  “Operational control” as
defined in the FARs and for the purposes of this Agreement, with respect to a
flight, means the exercise of authority over initiating, conducting, or
terminating a flight. Sublessor shall have operational control of the Aircraft,
which shall include, without limitation, providing the flight crew, selecting
the pilot-in-command and all other physical and technical operations of the
Aircraft.

 

9.                                       Flight
Crew.  Sublessor shall employ, or
contract with others to employ, pay for and provide to Sublessee, a qualified
flight crew for each flight undertaken under this Agreement.

 

10.                                 Safety
of Flights.  In accordance with
applicable FARs, the qualified flight crew provided by Sublessor shall exercise
all of its duties and responsibilities in regard to the safety of each flight
conducted hereunder. Sublessee specifically agrees that the flight crew, in its
sole and absolute discretion, may terminate any flight, refuse to commence any
flight, or take other action which in the judgment of the pilot-in-command is
necessitated by considerations of safety. No such action of the
pilot-in-command shall create any liability for loss, injury, damage or delay
to Sublessee or any other person. The parties further agree that Sublessor
shall not be liable for delay or failure to furnish the Aircraft and crew
pursuant to this Agreement when such failure is caused by government regulation
or authority, mechanical difficulty, war, civil commotion, strikes or labor disputes,
weather conditions, acts of God or other reasons beyond Sublessor’s reasonable
control.

 

3

 

11.                                 Title.  Sublessee acknowledges that Sublessor has
leased the Aircraft from Jostens Holding Corp. (“Lessor”), which is also the
owner of the Aircraft (“Owner”).

 

12.                                 Hull
and Liability Insurance.  Lessor
shall arrange for and maintain at all times during the term of this Agreement
at its expense (a) aircraft liability insurance for the Aircraft in the form
and substance and with such insurers as is customary for large corporate
aircraft of the type similar to the Aircraft, but in any event with limits of
not less than $100,000,000.00 single limit and shall cause Sublessee to be
named as an additional insured thereunder and (b) aircraft hull insurance for
the Aircraft in an amount to be determined by Lessor.  A certificate of insurance (and, upon request, a copy of the
insurance policy(ies)) shall be furnished to Sublessee after the execution of
this Agreement and prior to flights being conducted under this Agreement. In
addition, Lessor shall provide Sublessee with advance written notice prior to
amending or terminating any insurance on the Aircraft and shall provide
Sublessee with a certificate of insurance promptly after entering into any
amended or newly issued insurance policy.

 

13.                                 Additional
Insurance.  Sublessor shall provide
such additional insurance coverage as Sublessee may reasonably request or
require; provided, however, that the cost of such additional insurance, if any,
shall be borne by Sublessee as set forth in Section 2(d) hereof.

 

14.                                 Representations
of Sublessor.  Sublessor represents
and warrants that:

 

(a)                                  It
has the right, power and authority to enter into and perform its obligations
under this Agreement, and the execution and delivery of this Agreement by
Sublessor have been duly authorized by all necessary action on the part of
Sublessor. This Agreement constitutes a legal, valid and binding obligation of
Sublessor, enforceable in accordance with its terms.

 

(b)                                 It
is a corporation duly organized, existing and in good standing under the laws
of the State of Minnesota and has all necessary power and authority under
applicable law and its organizational documents to own or lease its properties
and to carry on its business as presently conducted.

 

(c)                                  It
is a “citizen of the “United States” as defined in Section 40102(a)(15) of
Title 49, United States Code.

 

15.                                 Representations
of Sublessee.  Sublessee represents
and warrants that:

 

(a)                                  It
will use the Aircraft for and on account of its own business only in strict
accordance with the provisions of this Agreement and will neither sell seats to
passengers nor sell space for cargo or otherwise use the Aircraft for the
purpose of providing transportation of passengers or cargo in air commerce for
compensation or hire.

 

(b)                                 It
shall refrain from incurring any mechanics or other lien in connection with
inspection, preventive maintenance, maintenance or storage of the Aircraft or
otherwise, whether permissible or impermissible under this Agreement, and that
it shall refrain from attempting to convey, mortgage, assign, lease or any way

 

4

 

alienate the Aircraft or from creating any
kind of lien or security interest involving the Aircraft, or do anything or
take any action that might mature through notice or the passage of time into
such a lien.

 

(c)                                  During
the term of this Agreement, it will abide by and conform to all such laws,
governmental and airport orders, rules and regulations, as shall from time to
time be in effect relating in any way to the operation and use of the Aircraft
by a time-sharing Sublessee, including, without limitation, Part 91 of the
FARs.

 

16.                                 Aircraft
Base.  For purposes of this Agreement,
the permanent base of operation of the Aircraft shall be Holman Field in Saint
Paul, Minnesota.

 

17.                                 Limitation
of Liability; Indemnification. 
Sublessor agrees to indemnify and hold harmless Sublessee and its
respective officers, directors, partners, employees, shareholders, and
affiliates (“Indemnified Parties”) from and against any and all claims,
proceedings, losses, liabilities, suits, judgments, costs, expenses, penalties
or fines, including reasonable attorney’s fees (each a “Claim”) that may at any
time be suffered or incurred as a result of or connected with Sublessor’s
subleasing, maintenance, operation or use of the Aircraft, but, excluding any
Claim which results from the gross negligence or willful misconduct an
Indemnified Party.  As to Claims arising
upon or prior to the end of the term of this Agreement, the indemnities
contained in this Section 17 shall continue in full force and effect,
notwithstanding the expiration or other termination of this Agreement.

 

EACH PARTY AGREES THAT (A) THE PROCEEDS OF INSURANCE
TO WHICH IT IS ENTITLED, (B) ITS RIGHTS TO INDEMNIFICATION FROM THE OTHER PARTY
UNDER THIS SECTION, AND (C) ITS RIGHT TO DIRECT DAMAGES ARISING IN CONTRACT
FROM A MATERIAL BREACH OF THE OTHER PARTY’S OBLIGATIONS UNDER THIS AGREEMENT ARE
THE SOLE REMEDIES FOR ANY DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS
AGREEMENT OR THE SERVICES PROVIDED HEREUNDER OR CONTEMPLATED HEREBY. EXCEPT AS
SET FORTH IN THIS SECTION 17, EACH PARTY WAIVES ANY RIGHT TO RECOVER ANY
DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS AGREEMENT OR THE SERVICES PROVIDED
HEREUNDER OR CONTEMPLATED HEREBY. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR
OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER PARTY FOR ANY
CLAIMED INDIRECT, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR ANY
DAMAGES CONSISTING OF DAMAGES FOR LOSS OF USE OR DEPRECIATION OF VALUE OF THE
AIRCRAFT, LOSS OF PROFITS OR INSURANCE DEDUCTIBLE.

 

The provisions of this Section 17 shall survive the
termination or expiration of this Agreement.

 

18.                                 Termination.  Either party may terminate this Agreement
upon five (5) business days’ prior written notice to the other party.

 

19.                                 Notices.  All notices and other communications under
this Agreement shall be in writing (except as permitted in Section 5) and shall
be given (and shall be deemed to have been duly given upon receipt or refusal
to accept receipt) by personal delivery, the next

 

5

 

business day if given by facsimile (with a
simultaneous confirmation copy sent by first class mail properly addressed and
postage prepaid) or by a reputable overnight courier service, addressed as
follows:

 

If to
Sublessor:                                                               Jostens,
Inc.

Attn:  Chief Financial Officer

5501 Norman Center Drive

Minnesota, MN  55437

Facsimile:  (952) 830-3293

 

With a copy to:                                                             General
Counsel

 

If to
Sublessee:                                                              DLJ
Merchant Banking III, Inc.

Eleven Madison Avenue, 16th
Floor

New York, NY  10010

Facsimile:  (646) 935-7193

 

or to such other person or address as either party
shall from time to time designate by writing to the other party.

 

20.                                 Successors
and Assigns.  Neither this Agreement
nor any party’s interest herein shall be assignable without the other party’s
written consent thereto. This Agreement shall inure to the benefit of and be binding
upon the parties hereto, their heirs, representatives, successors and permitted
assigns.

 

21.                                 Governing
Law and Consent to Jurisdiction. 
This Agreement is entered into under and is to be construed in
accordance with the laws of the State of Minnesota.  The parties hereby consent and agree to submit to the exclusive
jurisdiction and venue of any state or federal court in the State of Minnesota
in any proceedings hereunder, and each hereby waives any objection to any such
proceedings based on improper venue or forum nonconveniens or similar
principles.  The parties hereto hereby
further consent and agree to the exercise of such personal jurisdiction over
them by such courts with respect to any such proceedings, waive any objection
to the assertion or exercise of such jurisdiction and consent to process being
served in any such proceedings in the manner provided for the giving of notices
hereunder.

 

22.                                 Recitals.  The Recitals preceding this Agreement are
hereby incorporated by reference in their entirety and made a part hereof.

 

23.                                 Further
Acts.  Sublessor and Sublessee shall
each from time to time perform such other and further acts and execute such
other and further instruments as may be required by law or which may be
reasonably necessary to carry out the intents and purposes of this Agreement.

 

24.                                 Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original, and all of which
shall constitute one and the same Agreement, binding on all the parties
notwithstanding that all the parties are not signatories to the same
counterpart.

 

6

 

25.                                 TRUTH
IN LEASING STATEMENT.

 

THE AIRCRAFT, AS EQUIPMENT, BECAME SUBJECT TO THE
MAINTENANCE REQUIREMENTS OF PART 91 OF THE FEDERAL AVIATION REGULATION (“FARS”)
UPON THE REGISTRATION OF THE AIRCRAFT WITH THE FEDERAL AVIATION
ADMINISTRATION.  PRIOR TO EXECUTING THIS
AGREEMENT, SUBLESSOR REVIEWED THE AIRCRAFT’S MAINTENANCE AND OPERATING LOGS AND
FOUND THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER PART 91 OF THE
FARS, AS APPLICABLE, DURING THE LAST 12 MONTHS.  SUBLESSOR CERTIFIES, AND SUBLESSEE ACKNOWLEDGES THAT THE AIRCRAFT
WILL BE MAINTAINED AND INSPECTED UNDER PART 91 OF THE FARS FOR OPERATIONS TO BE
CONDUCTED UNDER THIS LEASE. UPON EXECUTION OF THIS LEASE, AND DURING THE TERM
HEREOF, SUBLESSOR, WHOSE NAME AND ADDRESS ARE JOSTENS, INC., 5501 NORMAN CENTER
DRIVE, MINNEAPOLIS, MINNESOTA, 55437, ACTING BY AND THROUGH DAVID TAYEH
(SIGNATURE:  s/s David A. Tayeh),
WHO EXECUTES THIS SECTION SOLELY IN HIS CAPACITY AS CHIEF FINANCIAL OFFICER OF
SUBLESSOR, CERTIFIES THAT SUBLESSOR AND NOT SUBLESSEE SHALL BE RESPONSIBLE FOR
THE OPERATIONAL CONTROL OF THE AIRCRAFT UNDER THIS AGREEMENT. SUBLESSOR FURTHER
CERTIFIES THAT IT UNDERSTANDS ITS RESPONSIBILITIES FOR COMPLIANCE WITH
APPLICABLE FARS. THE PARTIES HERETO ACKNOWLEDGE THAT AN EXPLANATION OF FACTORS
BEARING ON OPERATIONAL CONTROL AND PERTINENT FARS MAY BE OBTAINED FROM THE
NEAREST FEDERAL AVIATION ADMINISTRATION FLIGHT STANDARD DISTRICT OFFICE,
GENERAL AVIATION DISTRICT OFFICE OR AIR CARRIER DISTRICT OFFICE.  THE “INSTRUCTIONS FOR COMPLIANCE WITH TRUTH
IN LEASING REQUIREMENTS” ATTACHED HERETO ARE INCORPORATED HEREIN BY REFERENCE.

 

[Signature Page
Follows]

 

7

 

IN WITNESS WHEREOF, the parties have executed this
Agreement.

 

 

	
  JOSTENS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/  Marjorie
  J. Brown

  	
   

  	
  March 11, 2004  4:00 p.m.

  	
   

  
	
   

  	
  Name: Marjorie J. Brown

  	
  Date and Time of
  Execution

  
	
   

  	
  Title: Vice President and
  Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DLJ MERCHANT BANKING
  III, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/  Michael Isikow

  	
   

  	
   

  
	
   

  	
  Name: Michael Isikow

  	
  March 11, 2003  4:00 p.m.

  	
   

  
	
   

  	
  Title:  Principal

  	
  Date and Time of
  Execution

  
						

 

8

 

INSTRUCTIONS FOR
COMPLIANCE WITH “TRUTH IN LEASING”

 

REQUIREMENTS

 

1.                                       Mail
a copy of the lease to the following address via certified mail, return receipt
requested, immediately upon execution of the lease (14 C.F.R. 91.23 requires
that the copy be sent within twenty-four hours after it is signed):

 

Federal Aviation
Administration

Aircraft Registration
Branch

ATTN: Technical Section

P. O. Box 25724

Oklahoma City, Oklahoma
73125

 

2.                                       Telephone
the nearest Flight Standards District Office at least forty-eight hours prior
to the first flight under this lease.

 

3.                                       Carry
a copy of the lease in the aircraft at all times.

 

9

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