Document:

Exhibit 4.5

 

EXECUTION COPY

 

 

 

REGISTRATION
RIGHTS AGREEMENT

between

JOSTENS HOLDING CORP.

and

THE STOCKHOLDERS NAMED HEREIN

Dated as of October 4, 2004

 

 

 

 

Table of
Contents

 

	
  RECITALS

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  1.1   Certain Defined Terms

  	
   

  
	
   

  	
  SECTION
  1.2   Other Definitional Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II REGISTRATION RIGHTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  2.1   Incidental Registrations

  	
   

  
	
   

  	
  SECTION
  2.2   Registration on Request

  	
   

  
	
   

  	
  SECTION
  2.3   Registration Procedures

  	
   

  
	
   

  	
  SECTION
  2.4   Information Supplied

  	
   

  
	
   

  	
  SECTION
  2.5   Restrictions on Disposition

  	
   

  
	
   

  	
  SECTION
  2.6   Seller Agreements

  	
   

  
	
   

  	
  SECTION
  2.7   Indemnification

  	
   

  
	
   

  	
  SECTION
  2.8   Required Reports

  	
   

  
	
   

  	
  SECTION
  2.9   Selection of Counsel

  	
   

  
	
   

  	
  SECTION
  2.10   Holdback Agreements

  	
   

  
	
   

  	
  SECTION
  2.11   Other Agreements

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  3.1   Recapitalizations, Exchanges, Etc.

  	
   

  
	
   

  	
  SECTION
  3.2   Termination

  	
   

  
	
   

  	
  SECTION
  3.3   Amendments and Waivers

  	
   

  
	
   

  	
  SECTION
  3.4   Successors, Assigns and Transferees

  	
   

  
	
   

  	
  SECTION
  3.5   Notices

  	
   

  
	
   

  	
  SECTION
  3.6   Further Assurances

  	
   

  
	
   

  	
  SECTION
  3.7   Entire Agreement

  	
   

  
	
   

  	
  SECTION
  3.8   Delays or Omissions

  	
   

  
	
   

  	
  SECTION
  3.9   Governing Law; Jurisdiction; Waiver of Jury Trial

  	
   

  
	
   

  	
  SECTION
  3.10   Severability

  	
   

  
	
   

  	
  SECTION
  3.11   Effective Date

  	
   

  
	
   

  	
  SECTION
  3.12   Enforcement

  	
   

  
	
   

  	
  SECTION
  3.13   Titles and Subtitles

  	
   

  
	
   

  	
  SECTION
  3.14   No Recourse

  	
   

  
	
   

  	
  SECTION
  3.15   Counterparts; Facsimile Signatures

  	
   

  

 

 

THIS
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered into as of
October 4, 2004, by and among Jostens Holding Corp, a Delaware corporation (the
“Company”), and each of the stockholders of the Company whose name
appears on the signature pages hereof.

 

RECITALS

 

WHEREAS, the Company has entered into that
certain Contribution Agreement, dated as of July 21, 2004, with Fusion
Acquisition LLC, a Delaware limited liability company (“KKR”), (the “Contribution
Agreement”), pursuant to which KKR has agreed to contribute the capital
stock of Von Hoffmann Holdings Inc. and AHC I Acquisition Corp. in exchange for
2,664,356 shares of the Company’s Class A common stock, par value $0.01 per
share (the “Class A Common Stock”) and 1 share of the Company’s Class C
common stock, par value $0.01 per share (the “Class C Common Stock” and,
together with the Class A Common Stock, the “Common Stock”);

 

WHEREAS, following the closing of the
transactions contemplated by the Contribution Agreement, (i) KKR shall
beneficially own 45.2% of the Company’s Class A Common Stock and the Class C
Common Stock shall represent 4.8% of the voting securities of the Company and
(ii) DLJ Merchant Banking Partners III, L.P., DLJ Offshore Partners III-1,
C.V., DLJ Offshore Partners III-2, C.V., DLJ Offshore Partners III, C.V., DLJ
MB Partners III GmbH & Co. KG, Millennium Partners II, L.P. MBP III Plan
Investors, L.P. (collectively, the “DLJMB Funds”) shall beneficially own
45.2% of the Company’s Class A Common Stock (each of KKR and the DLJMB Funds an
“Investor Stockholder” and, together, the “Investor Stockholders”);
and

 

WHEREAS, the
Company has agreed to provide registration rights with respect to certain
securities held by the Investor Stockholders to be effective as of the Closing.

 

NOW,
THEREFORE, in consideration of the foregoing recitals and of the mutual
promises hereinafter set forth, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.1  Certain
Defined Terms.  As used herein, the
following terms shall have the following meanings:

 

“Affiliate”
means, with respect to any Person, (i) any Person directly or indirectly
controlling, controlled by or under common control with such Person, (ii) any
Person directly or indirectly owning or controlling ten percent (10%) or more
of any class of outstanding equity interests of such Person or (iii) any
officer, director, general partner or trustee of any such Person described in
clause (i) or (ii).

 

“Board”
means the Board of Directors of the Company.

 

 

“Business
Day” means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by law to be closed in the City of New York.

 

“control”
(including the terms “controlled by” and “under common control with”),
with respect to the relationship between or among two or more Persons, means
the possession, directly or indirectly, of the power to direct or cause the
direction of the affairs or management of a Person, whether through the
ownership of voting securities, as trustee or executor, by contract or
otherwise.

 

“Demand
Party” has the meaning assigned to such term in Section 2.2(a).

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

 

“Group”
has the meaning assigned to such term in Section 13(d)(3) of the Exchange Act.

 

“Holder”
means the Investor Stockholders and any other holder of Registrable Securities
(including any direct or indirect transferees of an Investor Stockholder or its
Affiliates who has acquired Registrable Securities from an Investor Stockholder
not in violation of the Stockholders Agreement).

 

“Closing”
has the meaning assigned to such term in the Contribution Agreement.

 

“Investor
Stockholder” has the meaning assigned to such term in the recitals.

 

“IPO”
means the initial public offering of Common Stock pursuant to an effective
registration statement under the Securities Act.

 

“IPO Date”
means the first date of the issuance of Common Stock in an IPO.

 

“NASD”
means the National Association of Securities Dealers, Inc.

 

“Nasdaq”
means the NASD Automated Quotation System.

 

“Other
Holders” means Persons other than Holders who, by virtue of agreements with
the Company, are entitled to include their securities in certain registrations
hereunder, including, without limitation, that (i) certain Management
Stockholders’ Agreement, dated July 29, 2003 between the Company, the DLJMB
Funds and certain members of the Company’s management and (ii) certain
Syndicate Stockholders Agreement, dated September 3, 2003 between the Company,
the DLJMB Funds and certain syndicate stockholders of the Company.

 

“Person”
means any individual, corporation, limited liability company, limited or general
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, government or any agency or political subdivisions
thereof or any Group comprised of two or more of the foregoing.

 

2

 

“Registrable
Securities” means any shares of Common Stock currently held or hereafter
acquired by the Investor Stockholders pursuant to the Contribution Agreement or
by any other means and any other securities issued or issuable with respect to
any such shares by way of a stock dividend or stock split or in connection with
a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise.  As to any
particular Registrable Securities, once issued, such Registrable Securities
shall cease to be Registrable Securities when (a) a registration statement with
respect to the sale by the Holder of such securities shall have become
effective under the Securities Act and such securities shall have been disposed
of in accordance with such registration statement, (b) such securities shall
have been distributed to the public pursuant to Rule 144 (or any successor
provision) under the Securities Act, or (c) such securities shall have ceased
to be outstanding.  For purposes of this
Agreement, any required calculation of the amount of, or percentage of,
Registrable Securities shall be based on the number of shares of Common Stock
which are Registrable Securities, including shares issuable upon the
conversion, exchange or exercise of any security convertible, exchangeable or
exercisable into Common Stock.

 

“Registration
Expenses” means any and all expenses incident to performance of or
compliance with this Agreement (other than underwriting discounts and
commissions paid to underwriters and transfer taxes, if any), including (a) all
SEC and securities exchange or NASD registration and filing fees, (b) all fees
and expenses of complying with securities or blue sky laws (including
reasonable fees and disbursements of counsel for the underwriters in connection
with blue sky qualifications of the Registrable Securities), (c) all printing,
messenger and delivery expenses, (d) all fees and expenses incurred in
connection with the listing of the Registrable Securities on any securities
exchange or NASD pursuant to Section 2.3(g)(i) and all rating agency fees, (e)
the fees and disbursements of counsel for the Company and of its independent
public accountants, including the expenses of any special audits and/or “cold
comfort” letters required by or incident to such performance and compliance,
(f) the reasonable fees and disbursements of counsel selected pursuant to
Section 2.9, (g) any fees and disbursements customarily paid by the issuers of
securities, and (h) expenses incurred in connection with any road show
(including the reasonable out-of-pocket expenses of the Investor Stockholders).

 

“SEC”
means the U.S. Securities and Exchange Commission or any other federal agency
then administering the Securities Act or the Exchange Act and other federal
securities laws.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

 

“Stockholders
Agreement” means that certain Stockholders’ Agreement, dated as of the date
hereof, by and between the Company and the stockholders of the Company party
thereto.

 

SECTION 1.2  Other
Definitional Provisions. 
(a)  The words “hereof”, “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this

 

3

 

Agreement as a whole and not to
any particular provision of this Agreement, and Article and Section references
are to this Agreement unless otherwise specified.

 

(b)  The
meanings given to terms defined herein shall be equally applicable to both the
singular and plural forms of such terms.

 

ARTICLE II

 

REGISTRATION RIGHTS

 

SECTION 2.1  Incidental
Registrations.  (a)  If
the Company at any time after the IPO Date proposes to register Common Stock
under the Securities Act (other than a registration filed by the Company in
connection with the IPO or a registration on Form S-4 or S-8, or any successor
or other forms promulgated for similar purposes), whether or not for sale for
its own account, in a manner which would permit registration of Registrable
Securities for sale to the public under the Securities Act, it will, at each
such time, give prompt written notice to all Holders of its intention to do so
and of such Holders’ rights under this Article II.  Upon the written request of any such Holder made within 15 days
after the receipt of any such notice (which request shall specify the
Registrable Securities intended to be disposed of by such Holder), the Company
will use its commercially reasonable best efforts to effect the registration
under the Securities Act of all Registrable Securities which the Company has
been so requested to register by the Holders thereof; provided that (i)
if, at any time after giving written notice of its intention to register any
securities, the Company shall determine for any reason not to proceed with the
proposed registration of the securities to be sold by it, the Company may, at
its election, give written notice of such determination to each Holder and,
thereupon, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration (but not from its obligation to
pay the Registration Expenses in connection therewith), and (ii) if such
registration involves an underwritten offering, all Holders requesting to be
included in the Company’s registration must sell their Registrable Securities
to the underwriters selected by the Company on the same terms and conditions as
apply to the Company, with such differences as may be customary or appropriate
in combined primary and secondary offerings. 
If a registration requested pursuant to this Section involves an
underwritten public offering, any Holder requesting to be included in such
registration may elect, in writing prior to the effective date of the
registration statement filed in connection with such registration, not to
register any of such securities in connection with such registration.  The registrations provided for in this
Section 2.1 are in addition to, and not in lieu of, registrations made upon the
request of the Investor Stockholders in accordance with Section 2.2.

 

(b)  Expenses.  The Company will pay all Registration
Expenses in connection with each registration of Registrable Securities
requested pursuant to this Section 2.1.

 

(c)  Priority
in Incidental Registrations.  If a
registration pursuant to this Section 2.1 involves registration for sale of
securities for the Company’s own account (which may include securities pursuant
to the exercise of piggyback rights under this Agreement or agreements with
Other Holders but shall not be deemed to include a registration by any Holder
or Other Holder exercising a demand registration right) and is an underwritten
offering and the

 

4

 

managing underwriter advises the Company in writing that, in its
opinion, the number of Registrable Securities requested to be included in such
registration would be likely to have an adverse effect on the price, timing or
distribution of the securities to be offered in such offering as contemplated
by the Company (an “Adverse Effect”), then the Company shall include in
such registration (a) first, 100% of the securities the Company proposes
to sell, and (b) second, to the extent of the amount of Registrable
Securities requested to be included in such registration which, in the opinion
of such managing underwriter, can be sold without having an Adverse Effect, the
amount of Registrable Securities which the Holders and the Other Holders have
requested to be included in such registration, such amount to be allocated pro
rata among all requesting Holders and the Other Holders on the basis of the
relative amount of Registrable Securities each such Holder and Other Holder has
requested to be included in such registration (provided that any such
amount thereby allocated to any such Holder or Other Holder that such Holder or
Other Holder withdraws shall be reallocated among the remaining requesting
Holders and Other Holders in like manner).

 

SECTION 2.2  Registration
on Request.  (a)  Upon the
written request of any of the Investor Stockholders (provided that no
transferee of an Investor Stockholder or its Affiliates or of any transferee
shall be permitted to request a registration pursuant to this Section 2.2
unless the right to make such a request was transferred in writing to such
transferee by the Investor Stockholder or its Affiliates, a copy of which
written agreement shall be provided to the Company) (any such Holder, the “Demand
Party”) requesting that the Company effect the registration under the
Securities Act of all or part of such Demand Party’s Registrable Securities and
specifying the amount and intended method of disposition thereof, the Company
will promptly give written notice of such requested registration to all other
Holders, and thereupon will, as expeditiously as possible, use its commercially
reasonable best efforts to effect the registration under the Securities Act of:

 

(i)  the Registrable Securities which the Company has been so
requested to register by the Demand Party; and

 

(ii)  all other Registrable Securities which the Company has
been requested to register by any other Holder thereof by written request given
to the Company within 15 days after the giving of such written notice by the
Company (which request shall specify the amount and intended method of
disposition of such Registrable Securities), all to the extent necessary to
permit the disposition (in accordance with the intended method thereof as
aforesaid) of the Registrable Securities so to be registered; provided
that the Company shall not be required to effect a registration pursuant to
this Section 2.2 upon the request of a Demand Party on any form other than Form
S-3 (or any successor form) if the Company has previously effected a number of
registrations of Registrable Securities under this Section 2.2 upon the
request of a Demand Party on any form other than Form S-3 (or any successor
form) equaling or exceeding 8 and 8 with respect to KKR and the DLJMB Funds,
respectively; and provided, further, that, the Company shall not
be obligated to file a registration statement relating to any registration
request under this Section 2.2 within a period of 90 days after the effective
date of any other registration statement relating to any registration request
under this Section 2.2 or to any registration effected under Section 2.1
whether or not Registrable Securities are included therein 

 

5

 

(except (A) in
the case of a registration effected under Section 2.1, any shorter period as
the underwriters may permit and (B) in the case of an IPO, such longer period
as the underwriters may require but not more than 180 days); and provided,
further, that in the case of a registration effected under Section 2.1,
the Company may not delay such registration pursuant to the immediately
preceding proviso more than once in any 360 day period unless Registrable
Securities in an amount of not less than 75% of the number of Registrable
Securities requested to be included in such registration are included in such
registration; and provided, further, that the Company shall not
be required to effect a registration pursuant to this Section 2.2 unless the
Holders of securities requesting registration propose to dispose of shares of
Common Stock having an aggregate price to the public (before deducting
underwriting discounts and expenses of sale) of at least $10,000,000.

 

(b)  Registration
Statement Form.  The Company shall
select the registration statement form for any registration pursuant to this
Section 2.2; provided that if any registration requested pursuant to
this Section 2.2 is proposed to be effected on Form S-3 (or any successor or
similar short-form registration statement) and is in connection with an
underwritten offering, and if the managing underwriter shall advise the Company
in writing that, in its opinion, it is of material importance to the success of
such proposed offering to include in such registration statement information
not required to be included pursuant to such form, then the Company will
supplement such registration statement as reasonably requested by such managing
underwriter.

 

(c)  Expenses.  The Company will pay all Registration
Expenses in connection with registrations of Registrable Securities pursuant to
this Section 2.2.

 

(d)  Effective
Registration Statement.  A
registration requested pursuant to this Section 2.2 will not be deemed to have
been effected for purposes of this Section 2.2 and 2.3(q) unless it has become
effective and has remained continuously effective for a period of nine months
or such shorter period which will terminate when all of the Registrable
Securities requested to be registered thereunder have been sold.

 

(e)  Selection
of Underwriters.  If a requested
registration pursuant to this Section 2.2 involves an underwritten offering,
the investment banker(s), underwriter(s) and manager(s) for such registration
shall be selected by the Holders of a majority of the Registrable Securities
which the Company has been requested to register; provided, however,
that such investment banker(s), underwriter(s) and manager(s) shall be
reasonably satisfactory to the Company.

 

(f)  Priority
in Requested Registrations.  If a
requested registration pursuant to this Section 2.2 involves an underwritten
offering and the managing underwriter advises the Company in writing that, in
its opinion, the number of securities to be included in such registration
(including securities of the Company which are not Registrable Securities)
would be likely to have an Adverse Effect in such offering as contemplated by
the Holders, then the Company shall include in such registration only the
Registrable Securities of the Holders and Other Holders requested to be
included in such registration.  In the
event that the number of Registrable Securities of the Holders and Other
Holders requested to be included in such registration exceeds the number which,
in the opinion of such managing underwriter, can be sold

 

6

 

without having an Adverse Effect, the number of such Registrable
Securities to be included in such registration shall be allocated pro rata
among all such requesting Holders and Other Holders on the basis of the
relative number of shares of Registrable Securities then held by each such
Holder and Other Holders (provided that any shares thereby allocated to
any such Holder or Other Holder that exceed such Holder’s or Other Holder’s
request shall be reallocated among the remaining requesting Holders and Other
Holders in like manner).  In the event
that the number of Registrable Securities to be included in such registration
is less than the number which, in the opinion of the managing underwriter, can
be sold without having an Adverse Effect, the Company may include in such
registration the securities the Company proposes to sell up to the number of
securities that, in the opinion of such managing underwriter, can be sold
without having an Adverse Effect.  If
the managing underwriter of any underwritten offering shall advise the Holders
and Other Holders participating in a registration pursuant to this Section 2.2
that the Registrable Securities covered by the registration statement cannot be
sold in such offering within a price range acceptable to the Demand Party, then
the Demand Party shall have the right to notify the Company that it has
determined that the registration statement be abandoned or withdrawn, in which
event the Company shall abandon or withdraw such registration statement.

 

(g)  Postponements
in Requested Registrations.  Notwithstanding
Section 2.2(f), (i) if the Company shall at any time furnish to the Holders a
certificate signed by its chairman of the board, chief executive officer,
president or any other of its authorized officers stating that the filing of a
registration statement would require the disclosure of material information the
disclosure of which would, in the good faith judgment of the Board, have a
material adverse effect on the business, operations or prospects of the
Company, the Company may postpone the filing (but not the preparation) of a
registration statement required by this Section 2.2 for up to 45 days and (ii)
if the Board determines in its good faith judgment, that the registration and
offering otherwise required by this Section 2.2 would have an adverse effect on
a then contemplated public offering of the Company’s Common Stock, the Company
may postpone the filing (but not the preparation) of a registration statement
required by this Section 2.2, during the period starting with the 30th
day immediately preceding the date of the anticipated filing of, and ending on
a date 90 days (or such shorter period as the managing underwriter may permit)
following the effective date of, the registration statement relating to such
other public offering; provided that the Company shall at all times in
good faith use its commercially reasonable best efforts to cause any
registration statement required by this Section 2.2 to be filed as soon as
possible and; provided, further, that the Company shall not be
permitted to postpone registration pursuant to this Section 2.2(g) more than
once in any 360-day period.  The Company
shall promptly give the Holders requesting registration thereof pursuant to
this Section 2.2 written notice of any postponement made in accordance with the
preceding sentence.   If the Company
gives the Holders such a notice, the Holders shall have the right, within 15
days after receipt thereof, to withdraw their request in which case, such
request will not be counted for purposes of this Section 2.2 or 2.3(q).

 

SECTION 2.3  Registration
Procedures.  If and whenever the
Company is required to use its commercially reasonable best efforts to effect
or cause the registration of any Registrable Securities under the Securities
Act as provided in this Agreement, the Company will promptly:

 

7

 

(a)  prepare
and, in any event within 60 days (45 days in the case of a Form S-3
registration) after the end of the period within which a request for
registration may be given to the Company, file with the SEC a registration
statement with respect to such Registrable Securities and use its commercially
reasonable best efforts to cause such registration statement to become
effective within 90 days of the initial filing;

 

(b)  prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective for a period not in excess of
nine months (or such shorter period which will terminate when all Registrable
Securities covered by such registration statement have been sold) and to comply
with the provisions of the Securities Act and the Exchange Act with respect to
the disposition of all securities covered by such registration statement during
such period in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such registration statement; provided
that before filing a registration statement or prospectus, or any amendments or
supplements thereto in accordance with Sections 2.3(a) or (b), the Company will
furnish to counsel selected pursuant to Section 2.9 hereof copies of all
documents proposed to be filed, which documents will be subject to the review
of such counsel;

 

(c)  furnish
to each seller of such Registrable Securities such number of copies of such
registration statement and of each amendment and supplement thereto (in each
case including all exhibits filed therewith), such number of copies of the prospectus
included in such registration statement (including each preliminary prospectus
and summary prospectus), in conformity with the requirements of the Securities
Act, and such other documents as such seller may reasonably request in order to
facilitate the disposition of the Registrable Securities by such seller;

 

(d)  use
its commercially reasonable best efforts to register or qualify such
Registrable Securities covered by such registration in such jurisdictions as
each seller shall reasonably request, and do any and all other acts and things
which may be reasonably necessary or advisable to enable such seller to
consummate the disposition in such jurisdictions of the Registrable Securities
owned by such seller, except that the Company shall not for any such purpose be
required to qualify generally to do business as a foreign corporation in any
jurisdiction where, but for the requirements of this subsection (d), it would
not be obligated to be so qualified or to consent to general service of process
in any such jurisdiction;

 

(e)  notify
each seller of any such Registrable Securities covered by such registration
statement, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, of the Company’s becoming aware that the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing, and at the request
of any such seller, prepare and furnish to such seller a reasonable number of
copies of an amended or supplemental prospectus as may be necessary so that, as
thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not include an untrue statement of a material fact or

 

8

 

omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading in the light of the
circumstances then existing;

 

(f)  otherwise
use its best efforts to comply with all applicable rules and regulations of the
SEC, and make available to its security holders, as soon as reasonably
practicable (but not more than 18 months) after the effective date of the
registration statement, an earnings statement which shall satisfy the
provisions of Section 11(a) of the Securities Act;

 

(g)  (i)
if such Registrable Securities are Common Stock (including Common Stock
issuable upon conversion, exchange or exercise of another security), use its
commercially reasonable best efforts to list such Registrable Securities on any
securities exchange or authorize for quotation on each other market (including,
if applicable, Nasdaq) on which the Common Stock is then listed or authorized
for quotation if such Registrable Securities are not already so listed or
authorized for quotation; and (ii) use its commercially reasonable best efforts
to provide a transfer agent and registrar for such Registrable Securities
covered by such registration statement not later than the effective date of
such registration statement;

 

(h)  enter
into such customary agreements (including an underwriting agreement in
customary form), which may include indemnification provisions in favor of
underwriters and other Persons in addition to, or in substitution for the
provisions of Section 2.7 hereof, and take such other actions as sellers of a
majority of shares of such Registrable Securities or the underwriters, if any,
reasonably requested in order to expedite or facilitate the disposition of such
Registrable Securities;

 

(i)  obtain
a “cold comfort” letter or letters from the Company’s independent public
accountants in customary form and covering matters of the type customarily
covered by “cold comfort” letters as the seller or sellers of a majority of
shares of such Registrable Securities shall reasonably request;

 

(j)  make
available for inspection by any seller of such Registrable Securities covered
by such registration statement, by any managing underwriter or underwriters
participating in any disposition to be effected pursuant to such registration
statement and by any attorney, accountant or other agent retained by any such
seller or any such managing underwriter(s), all pertinent financial and other
records, pertinent corporate documents and properties of the Company, and cause
all of the Company’s officers, directors and employees to supply all
information reasonably requested by any such seller, underwriter, attorney,
accountant or agent in connection with such registration statement (subject to
each party referred to in this clause (j) entering into customary
confidentiality agreements in a form reasonably acceptable to the Company);

 

(k)  notify
counsel (selected pursuant to Section 2.9 hereof) for the Holders of
Registrable Securities included in such registration statement and the managing
underwriter or agent, immediately, and confirm the notice in writing (i) when
the registration statement, or any post-effective amendment to the registration
statement, shall have become effective, or any supplement to the prospectus or
any amendment to the prospectus shall have been filed, (ii) of the receipt of
any comments from the SEC, (iii) of any request of the SEC to amend the

 

9

 

registration statement or amend or supplement the prospectus or for
additional information, and (iv) of the issuance by the SEC of any stop order
suspending the effectiveness of the registration statement or of any order
preventing or suspending the use of any preliminary prospectus, or of the
suspension of the qualification of the registration statement for offering or
sale in any jurisdiction, or of the institution or threatening of any
proceedings for any of such purposes;

 

(l)  make
every commercially reasonable effort to prevent the issuance of any stop order
suspending the effectiveness of the registration statement or of any order
preventing or suspending the use of any preliminary prospectus and, if any such
order is issued, to obtain the withdrawal of any such order as soon as
practicable;

 

(m)  if
requested by the managing underwriter or agent or any Holder of Registrable
Securities covered by the registration statement, incorporate in a prospectus
supplement or post-effective amendment such information as the managing
underwriter or agent or such Holder reasonably requests to be included therein,
including, with respect to the number of Registrable Securities being sold by
such Holder to such underwriter or agent, the purchase price being paid
therefor by such underwriter or agent and with respect to any other terms of
the underwritten offering of the Registrable Securities to be sold in such
offering; and make all required filings of such prospectus supplement or
post-effective amendment as soon as practicable after being notified of the
matters incorporated in such prospectus supplement or post-effective amendment;

 

(n)  cooperate
with the Holders of Registrable Securities covered by the registration
statement and the managing underwriter or agent, if any, to facilitate the
timely preparation and delivery of certificates (not bearing any restrictive
legends) representing securities to be sold under the registration statement,
and enable such securities to be in such denominations and registered in such
names as the managing underwriter or agent, if any, or such Holders may
request;

 

(o)  obtain
for delivery to the Holders of Registrable Securities being registered and to
the underwriter or agent an opinion or opinions from counsel for the Company in
customary form and in form, substance and scope reasonably satisfactory to such
Holders, underwriters or agents and their counsel;

 

(p)  cooperate
with each seller of Registrable Securities and each underwriter or agent
participating in the disposition of such Registrable Securities and their
respective counsel in connection with any filings required to be made with the
NASD; and

 

(q)  use
its commercially reasonable best efforts to make available the executive
officers of the Company to participate with the Holders of Registrable
Securities and any underwriters in any “road shows” that may be reasonably
requested by the Holders in connection with distribution of the Registrable Securities.

 

SECTION 2.4  Information
Supplied.  The Company may require
each seller of Registrable Securities as to which any registration is being
effected to furnish the Company with such information regarding such seller and
pertinent to the disclosure requirements relating to the

 

10

 

registration and the
distribution of such securities as the Company may from time to time reasonably
request.

 

SECTION 2.5  Restrictions
on Disposition.  Each Holder agrees
that, upon receipt of any notice from the Company of the happening of any event
of the kind described in Section 2.3(e), such Holder will forthwith discontinue
disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such Holder’s receipt of the copies
of the supplemented or amended prospectus contemplated by Section 2.3(e), and,
if so directed by the Company, such Holder will deliver to the Company (at the
Company’s expense) all copies, other than permanent file copies then in such
Holder’s possession, of the prospectus covering such Registrable Securities
current at the time of receipt of such notice. 
In the event the Company shall give any such notice, the period
mentioned in Section 2.3(a) shall be extended by the number of days during the
period from and including the date of the giving of such notice pursuant to
Section 2.3(e) and to and including the date when each seller of Registrable
Securities covered by such registration statement shall have received the
copies of the supplemented or amended prospectus contemplated by Section
2.3(e).

 

SECTION 2.6  Seller
Agreements.  Each Holder of
Registrable Securities agrees that it will comply with the provisions of the
Securities Act with respect to the disposition of all of its Registrable
Securities covered by such registration statement and will sell such securities
in accordance with the methods of distribution set forth in such registration
statement.

 

SECTION 2.7  Indemnification.  (a)  In the event of any
registration of any securities of the Company under the Securities Act pursuant
to Section 2.1 or 2.2, the Company shall, and it hereby does, indemnify and
hold harmless, to the extent permitted by law, the seller of any Registrable
Securities covered by such registration statement, each of the directors,
officers, members or general and limited partners (and any director, officer,
and controlling Person of any of the foregoing), and each other Person, if any,
who controls such seller within the meaning of the Securities Act
(collectively, the “Indemnified Parties”), against any and all losses,
claims, damages or liabilities, joint or several, actions or proceedings
(whether commenced or threatened) in respect thereof (“Claims”) and
expenses (including reasonable attorney’s fees and reasonable expenses of
investigation) to which such Indemnified Party may become subject under the
Securities Act, common law or otherwise, insofar as such Claims or expenses
arise out of, relate to or are based upon (a) any untrue statement or alleged
untrue statement of any material fact contained in any registration statement
under which such securities were registered under the Securities Act, any
preliminary, final or summary prospectus contained therein, or any amendment or
supplement thereto, or (b) any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein (in the case of a prospectus, in light of the circumstances under which
they were made) not misleading; provided that the Company shall not be
liable to any Indemnified Party in any such case to the extent that any such
Claim or expense arises out of, relates to or is based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement or amendment or supplement thereto or in any such
preliminary, final or summary prospectus in reliance upon and in conformity
with written information furnished to the Company by or behalf of such seller
specifically stating that it is for use in the preparation thereof.  Such indemnity shall remain in full force
and effect regardless of any investigation

 

11

 

made by or on behalf of any
Indemnified Party and shall survive the transfer of securities by any seller.

 

(b)  Each
seller of any Registrable Securities in any registration statement filed in
accordance with Section 2.2 or 2.3 herein, shall and hereby does, indemnify and
hold harmless (in the same manner and to the same extent as set forth in
Section 2.7(a)) the Company, its directors, officers (and any controlling
Person) and all other prospective sellers, as the case may be, with respect to
any untrue statement or alleged untrue statement in or omission or alleged
omission from such registration statement, any preliminary, final or summary
prospectus contained therein, or any amendment or supplement thereto, if such
untrue statement or alleged untrue statement or omission or alleged omission
was made in reliance upon and in conformity with written information furnished
to the Company by or on behalf of such seller or underwriter specifically
stating that it is for use in the preparation of such registration statement,
preliminary, final or summary prospectus or amendment or supplement, or a
document incorporated by reference into any of the foregoing.  Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of the Company
or any of the prospective sellers, or any of their respective directors,
officers or controlling Persons and shall survive the transfer of securities by
any seller.  In no event shall the
indemnification or contribution liability of any selling Holder of Registrable
Securities hereunder be greater in amount than the dollar amount of the net
proceeds received by such Holder upon the sale of the Registrable Securities
giving rise to such indemnification obligation.  The Company may require, as a condition to including any Registrable
Securities in any registration statement filed in accordance with Section 2.1
or 2.2 hereof, that the Company have received an undertaking reasonably
satisfactory to it that a prospective seller will indemnify any underwriter to
the same extent set forth in this Section 2.7(b).

 

(c)  Promptly
after receipt by an indemnified party hereunder of written notice of the
commencement of any action or proceeding with respect to which a claim for
indemnification may be made pursuant to this Section 2.7, such indemnified
party will, if a claim in respect thereof is to be made against an indemnifying
party, give written notice to the latter of the commencement of such action or
proceeding; provided that the failure of the indemnified party to give
notice as provided herein shall not relieve the indemnifying party of its
obligations under this Section 2.7, except to the extent that the indemnifying
party is materially prejudiced by such failure to give notice.  In case any such action or proceeding is
brought against an indemnified party, the indemnifying party will be entitled
to participate in and to assume the defense thereof (at its expense), jointly
with any other indemnifying party similarly notified to the extent that it may
wish, with counsel reasonably satisfactory to such indemnified party, and after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party will not be liable to
such indemnified party for any legal or other expenses subsequently incurred by
the latter in connection with the defense thereof other than reasonable costs
of investigation and shall have no liability for any settlement made by the
indemnified party without the consent of the indemnifying party, such consent not
to be unreasonably withheld. 
Notwithstanding the foregoing, if in such indemnified party’s reasonable
judgment a conflict of interest between such indemnified and indemnifying
parties may exist in respect of such action or proceeding or the indemnifying
party does not assume the defense of any such action or proceeding within a
reasonable time after notice of commencement, the

 

12

 

indemnified party shall have the right to assume or continue its own
defense and the indemnifying party shall be liable for any reasonable expenses
therefor, but in no event will bear the expenses for more than one firm of
counsel for all indemnified parties in each jurisdiction who shall be approved
by the majority of the participating Holders in the registration in respect of
which such indemnification is sought. 
No indemnifying party will settle any action or proceeding or consent to
the entry of any judgment without the prior written consent of the indemnified
party, unless such settlement or judgment (i) includes as an unconditional term
thereof the giving by the claimant or plaintiff of a release to such
indemnified party from all liability in respect of such action or proceeding
and (ii) does not involve the imposition of equitable remedies or the
imposition of any obligations on such indemnified party and does not otherwise
adversely affect such indemnified party, other than as a result of the
imposition of financial obligations for which such indemnified party will be indemnified
hereunder.

 

(d)  (i)  If
the indemnification provided for in this Section 2.7 from the indemnifying
party is unavailable to an indemnified party hereunder in respect of any Claim
or expenses referred to herein, then the indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Claim or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and indemnified party in connection with the actions which resulted in
such Claim or expenses, as well as any other relevant equitable considerations,
but subject to the limitations set forth in Section 2.7(b).  The relative fault of such indemnifying
party and indemnified party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact, has been made by, or relates to information supplied by, such
indemnifying party or indemnified party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action.  The amount paid or payable by a
party under this Section 2.7(d) as a result of the Claim and expenses referred
to above shall be deemed to include any legal or other fees or expenses
reasonably incurred by such party in connection with any action or proceeding.

 

(ii)  The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 2.7(d) were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable
considerations referred to in Section 2.7(d)(i).  No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

 

(e)  Indemnification
similar to that specified in this Section 2.7 (with appropriate modifications)
shall be given by the Company and each seller of Registrable Securities with
respect to any required registration or other qualification of securities under
any law or with any governmental authority other than as required by the
Securities Act.

 

(f)  The
obligations of the parties under this Section 2.7 shall be in addition to any
liability which any party may otherwise have to any other party.

 

13

 

SECTION 2.8  Required
Reports.  The Company covenants that
it will file the reports required to be filed by it under the Securities Act
and the Exchange Act and it will take such further action as any Holder may
reasonably request, all to the extent required from time to time to enable such
Holder to sell shares of Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by (a) Rule 144
under the Securities Act, as such Rule may be amended from time to time, or (b)
any similar rule or regulation hereafter adopted by the SEC.  Upon the request of any Holder, the Company
will deliver to such Holder a written statement as to whether it has complied
with such requirements.  Without
limiting the foregoing, the Company agrees that:

 

(a)  it
will, if required by law, maintain a registration statement (containing such
information and documents as the SEC shall specify) with respect to the Common
Stock under Section 12 of the Exchange Act and will timely file such
information, documents and reports as the SEC may require or prescribe for
companies whose stock has been registered pursuant to said Section 12; and

 

(b)  it
will, if a registration statement with respect to the Common Stock under
Section 12 is effective, or if required by Section 15(d) of the Exchange Act,
make whatever filings with the SEC or otherwise make generally available to the
public such financial and other information as may be necessary to enable the
Holders of Registrable Securities to be permitted to sell shares of Common
Stock pursuant to the provisions of Rule 144 promulgated under the Securities
Act (or any successor rule or regulation thereto).

 

The Company
represents and warrants that any registration statement or any information
document or report filed with the SEC in connection with the foregoing or any
information so made public shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements contained therein not
misleading.  The Company agrees to
indemnify and hold harmless (or to the extent the same is not enforceable, make
contribution to) the seller of Registrable Securities, and each of the
directors, officers, members or general or limited partners, employees and
agents and each broker, dealer or underwriter (within the meaning of the
Securities Act) acting for any such seller in connection with any offering or
sale by such seller of Registrable Securities or any person, firm or
corporation controlling (within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act) such seller and any such
broker, dealer or underwriter from and against any and all losses, claims,
damages, liabilities or expenses (or actions in respect thereof) arising out of
or resulting from any breach of the foregoing representation or warranty, all
on terms and conditions comparable to those set forth in Section 2.7 of this
Agreement.

 

SECTION 2.9  Selection
of Counsel.  In connection with any
registration of Registrable Securities pursuant to Sections 2.1 and 2.2 hereof,
the Holders of a majority of the Registrable Securities covered by any such
registration may select one counsel to represent all Holders of Registrable
Securities covered by such registration; provided, however, that
in the event that the counsel selected as provided above is also acting as
counsel to the Company in connection with such registration, the remaining
Holders shall be entitled to select one additional counsel to represent all
such remaining Holders.

 

14

 

SECTION 2.10  Holdback
Agreements.  If any registration
pursuant to Section 2.2 hereunder shall be in connection with an underwritten
public offering, the Company agrees not to effect any public sale or
distribution of any Common Stock of the Company (or securities convertible into
or exchangeable or exercisable for Common Stock) (in each case, other than as
part of such underwritten public offering and other than pursuant to a
registration on Form S-4 or S-8) for its own account, within 90 days (or such
shorter period as the managing underwriters may require) after, the effective
date of such registration (except as part of such registration).  Each Holder agrees not to effect any public
sale or distribution (other than a distribution-in-kind to the limited partners
of such Holder; provided that such limited partner upon the reasonable
request of the managing underwriters agrees
to be bound by this Section 2.10) of any Common Stock (or securities
convertible into or exchangeable or exercisable for Common Stock) within 180
days (or such shorter period as the managing underwriters may require)
following the IPO of the Company.

 

SECTION 2.11  Other
Agreements.  The Company covenants
and agrees that, so long as any Person holds any Registrable Securities in
respect of which any registration rights provided for in Section 2.2 of this
Agreement remain in effect, the Company will not, directly or indirectly, grant
to any Person or agree to or otherwise become obligated in respect of (i)
rights of registration in the nature or substantially in the nature of those
set forth in Section 2.1 of this Agreement that would have priority over the
Registrable Securities with respect to the inclusion of such securities in any
registration or (ii) demand registration rights exercisable prior to such time
as the Investor Stockholders can first exercise their rights under Section 2.2.

 

ARTICLE III

 

MISCELLANEOUS

 

SECTION 3.1  Recapitalizations,
Exchanges, Etc.  The provisions of
this Agreement shall apply, to the full extent set forth herein with respect to
the Common Stock, to any and all shares of capital stock of the Company or any
successor or assign of the Company (whether by merger, consolidation, sale of
assets or otherwise) which may be issued in respect of, in exchange for or in
substitution of, the Common Stock and shall be appropriately adjusted for any
stock dividends, splits, reverse splits, combinations, recapitalizations and
the like occurring after the date hereof.

 

SECTION 3.2  Termination.  The provisions of this Agreement (other than
Section 2.7) shall terminate at such time as there shall be no Registrable
Securities outstanding.  Nothing herein
shall relieve any party from any liability for the breach of any of the
agreements set forth in this Agreement.

 

SECTION 3.3  Amendments
and Waivers.  Except as otherwise
provided herein, no modification, amendment or waiver of any provision of this
Agreement shall be effective against the Company or the Holders unless such
modification, amendment or waiver is approved in writing by the Company and the
Holders of sixty percent (60%) of the Registrable Securities and by each of the
Investor Stockholders; provided that no amendment modification or waiver
shall be effective against any Holder unless such amendment, modification or
waiver does not

 

15

 

treat such Holder differently
(each, a “Differently Treated Holder”) in any respect from any other
Holder (except with the written consent of the majority in interest of the
Differently Treated Holders).  The
failure of any party to enforce any of the provisions of this Agreement shall
in no way be construed as a waiver of such provisions and shall not affect the
right of such party thereafter to enforce each and every provision of this
Agreement in accordance with its terms.

 

SECTION 3.4  Successors,
Assigns and Transferees.  This
Agreement shall bind and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and, with respect to the
Holders, subject to the terms of the Stockholders Agreement, permitted assigns.

 

SECTION 3.5  Notices.  All notices required or permitted hereunder
shall be in writing and shall be deemed effectively given: (a) upon personal
delivery to the party to be notified; (b) when sent by facsimile if sent during
normal business hours of the recipient, if not, then on the next business day,
so long as such facsimile is also sent by overnight courier on the same day;
(c) five (5) days after having been sent by registered or certified mail,
return receipt requested, postage prepaid; or (d) one (1) business day after
deposit with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. 
All communications shall be sent, with respect to the Company and the
Investor Stockholders, to their respective addresses specified in the
Contribution Agreement (or at such other address as any such party may specify
by like notice) and, with respect to any other Holder, to the address of such
Holder as shown in the stock record books of the Company (or at such other
address as any such Holder may specify to all of the above by like notice).

 

SECTION 3.6  Further
Assurances.  At any time or from
time to time after the date hereof, the parties agree to cooperate with each
other, and at the request of any other party, to execute and deliver any
further instruments or documents and to take all such further action as the
other party may reasonably request in order to evidence or effectuate the
consummation of the transactions contemplated hereby and to otherwise carry out
the intent of the parties hereunder.

 

SECTION 3.7  Entire
Agreement.  Except as otherwise
expressly set forth herein, this document embodies the complete agreement and
understanding among the parties hereto with respect to the subject matter
hereof and supersedes and preempts any prior understandings, agreements or
representations by or among the parties, written or oral, that may have related
to the subject matter hereof in any way.

 

SECTION 3.8  Delays
or Omissions.  It is agreed that no
delay or omission to exercise any right, power or remedy accruing to any party,
upon any breach, default or noncompliance by another party under this
Agreement, shall impair any such right, power or remedy, nor shall it be
construed to be a waiver of any such breach, default or noncompliance, or any
acquiescence therein, or of or in any similar breach, default or noncompliance
thereafter occurring.  It is further
agreed that any waiver, permit, consent or approval of any kind or character on
the part of any party hereto of any breach, default or noncompliance under this
Agreement or any waiver on such party’s part of any provisions or conditions of
this Agreement, must be in writing and shall be effective only to the extent
specifically set forth in such writing.

 

16

 

All remedies, either under this
Agreement, by law, or otherwise afforded to any party, shall be cumulative and
not alternative.

 

SECTION 3.9  Governing
Law; Jurisdiction; Waiver of Jury Trial. 
This Agreement shall be governed in all respects by the laws of the
State of New York.  No suit, action or
proceeding with respect to this Agreement may be brought in any court or before
any similar authority other than in a court of competent jurisdiction in the
State of New York, and the parties hereto hereby submit to the exclusive
jurisdiction of such courts for the purpose of such suit, proceeding or
judgment.  The parties hereto hereby
irrevocably waive any right which they may have had to bring such an action in
any other court, domestic or foreign, or before any similar domestic or foreign
authority.  Each of the parties hereto
hereby irrevocably and unconditionally waives trial by jury in any legal action
or proceeding in relation to this Agreement and for any counterclaim therein.

 

SECTION 3.10  Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement
shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

SECTION 3.11  Effective
Date.  This Agreement shall become
effective immediately upon the Closing.

 

SECTION 3.12  Enforcement.  Each party hereto acknowledges that money
damages would not be an adequate remedy in the event that any of the covenants
or agreements in this Agreement are not performed in accordance with its terms,
and it is therefore agreed that in addition to and without limiting any other
remedy or right it may have, the non-breaching party will have the right to an
injunction, temporary restraining order or other equitable relief in any court
of competent jurisdiction enjoining any such breach and enforcing specifically
the terms and provisions hereof.

 

SECTION 3.13  Titles
and Subtitles.  The titles of the
sections and subsections of this Agreement are for convenience of reference
only and are not to be considered in construing this Agreement.

 

SECTION 3.14  No
Recourse.  Notwithstanding anything
that may be expressed or implied in this Agreement, the Company and each Holder
covenant, agree and acknowledge that no recourse under this Agreement or any
documents or instruments delivered in connection with this Agreement shall be
had against any current or future director, officer, employee, general or
limited partner or member of the Investor Stockholders or the Company or of any
Affiliate or assignee thereof, whether by the enforcement of any assessment or
by any legal or equitable proceeding, or by virtue of any statute, regulation
or other applicable law, it being expressly agreed and acknowledged that no
personal liability whatsoever shall attach to, be imposed on or otherwise be
incurred by any current or future officer, agent or employee of the Investor

 

17

 

Stockholders or the Company or
any current or future member of the Investor Stockholders or the Company or any
current or future director, officer, employee, partner or member of the
Investor Stockholders or the Company or of any Affiliate or assignee thereof,
as such for any obligation of the Investor Stockholders or the Company under
this Agreement or any documents or instruments delivered in connection with
this Agreement for any claim based on, in respect of or by reason of such
obligations or their creation.

 

SECTION 3.15  Counterparts;
Facsimile Signatures.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument.  This Agreement may be executed by facsimile
signature(s).

 

[Remainder of
page intentionally left blank.]

 

18

 

IN WITNESS WHEREOF, the parties hereto have
executed this Registration Rights Agreement as of the date set forth in the
first paragraph hereof.

 

	
   

  	
  JOSTENS HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Tayeh

  	
   

  
	
   

  	
   

  	
  Name: David Tayeh

  	
   

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  FUSION ACQUISITION LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alexander Navab

  	
   

  
	
   

  	
   

  	
  Name: Alexander Navab

  	
   

  
	
   

  	
   

  	
  Title: President

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ MERCHANT BANKING PARTNERS III,

  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  	
   

  
	
   

  	
   

  	
  Name: George R. Hornig

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III-1, C.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  	
   

  
	
   

  	
   

  	
  Name: George R. Hornig

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III-2, C.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  	
   

  
	
   

  	
   

  	
  Name: George R. Hornig

  	
   

  
	
   

  	
   

  	
  Title:  Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III, C.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  	
   

  
	
   

  	
   

  	
  Name: George R. Hornig

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  

 

 

	
   

  	
  DLJ MB PARTNERS III GmbH & Co. KG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  	
   

  
	
   

  	
   

  	
  Name: George R. Hornig

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
  MILLENNIUM PARTNERS II, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  	
   

  
	
   

  	
   

  	
  Name: George R. Hornig

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
  MBP III PLAN INVESTORS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  	
   

  
	
   

  	
   

  	
  Name: George R. Hornig

  	
   

  
	
   

  	
   

  	
  Title: Managing Director

  	
   

  

 

2Exhibit 10.17

 

EXECUTION COPY

EMPLOYMENT AGREEMENT

Marc Reisch

 

This
EMPLOYMENT AGREEMENT (the “Agreement”)
is dated as of October 4, 2004 (the “Effective
Date”) by and between Jostens Holding Corp. (the “Company”) and Marc Reisch (the “Executive”).

 

WHEREAS, as of the date hereof, Fusion
Acquisition LLC, a Delaware limited liability company (the “KKR Investor”) beneficially owns (i)
2,664,356 shares of the Company’s Class A common stock, par value $0.01 per
share (the “Class A Common Stock”),
representing, as of the date hereof, 44.85% of the issued and outstanding
shares of the Company’s Common Stock (as defined below) and (ii) one share of
the Company’s Class C Common Stock, par value $0.01 per share (the “Class C Common Stock” and together with
the Class A Common Stock, the “Common Stock”)
initially representing 4.8% of the voting securities of the Company;

 

WHEREAS,
as of the date hereof, DLJ Merchant Banking Partners III, L.P., DLJ Offshore
Partners III-1, C.V., DLJ Offshore Partners III-2, C.V., DLJ Offshore Partners
III, C.V., DLJ MB Partners III GmbH & Co. KG, Millennium Partners II, L.P.
and MBP III Plan Investors, L.P. (collectively, the “DLJMB Funds” and, together with the KKR Investor, the “Investors”) beneficially own 2,664,357
shares of the Class A Common Stock, representing, as of the date hereof, 44.85%
of the issued and outstanding shares of the Company’s Common Stock;

 

WHEREAS,
as of the Effective Date, the Company desires to employ Executive and to enter
into an agreement embodying the terms of such employment and Executive desires
to accept such employment and enter into such an agreement.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants herein and for
other good and valuable consideration, the parties agree as follows:

 

1.     Term of
Employment.  Subject to the
provisions of Section 8 of this Agreement, Executive shall be employed by the
Company, and any of its subsidiaries that the Board of Directors of the Company
(the “Board”) shall designate
(collectively, the “Employer”)
for a period commencing on the Effective Date and ending on December 31, 2009
(the “Initial  Term”), on the
terms and subject to the conditions set forth in this Agreement.  Following the Initial Term, the term of
Executive’s employment hereunder shall automatically be renewed on the terms
and conditions hereunder for additional one year periods commencing on each
anniversary of the last day of the Initial Term (the Initial Term and any
annual extensions of the term of this Agreement, subject to the provisions of
Section 8 hereof, together, the “Employment
Term”), unless either party gives
written notice of non-renewal at least sixty (60) days prior to such
anniversary.  Any such written notice by
the Company of non-renewal shall be deemed to constitute a termination by the
Employer Without Cause under Section 8(c) of this Agreement.

 

 

2.     Position.

 

a.     During
the Employment Term, Executive shall serve as the Chief Executive Officer of
the Company and its subsidiaries.  In
such position, Executive shall have such duties and authority as determined by
the Board and commensurate with the position of chief executive officer of a
company of similar size and nature to that of the Employer.  During the Employment Term, the Executive
shall report solely to the Board and shall serve as the Chairman of the Board; provided,
however, that upon the completion of a Public Offering (as such term is
defined in that certain Management Stockholder’s Agreement entered into by and
between the Company and Executive as of the date hereof (the “Management Stockholders Agreement”)), the Company may appoint
another individual as the non-executive Chairman of the Board.

 

b.     During the Employment Term,
Executive will devote Executive’s full business time and reasonable best
efforts to the performance of Executive’s duties hereunder and will not engage
in any other business, profession or occupation for compensation or otherwise
which would conflict or interfere in any material respect with the rendition of
such services either directly or indirectly, without the prior written consent
of the Board; provided that nothing herein shall preclude Executive,
subject to the prior approval of the Board, from accepting appointment to or
continue to serve on any board of directors or trustees of any business
corporation or any charitable organization;  provided in each case in the aggregate, that such
activities do not conflict or interfere with the performance of Executive’s
duties hereunder or conflict with Section 10 and provided, further,
that in any event Executive shall be permitted to continue to serve on the
boards of directors of the business corporations set forth on Schedule I
attached hereto.

 

3.     Base Salary.  During the Employment Term, the Company
shall pay Executive a base salary at the annual rate of $850,000, payable in
substantially equal periodic payments in accordance with the Company’s
practices for other executive employees, as such practices may be determined
from time to time.  Executive shall be
entitled to such increases in Executive’s base salary, if any, as may be
determined from time to time in the sole discretion of the Board, which shall
at least annually review Executive’s rate of base salary to determine if any
such increase shall be made. 
Executive’s annual base salary, as in effect from time to time
hereunder, is hereinafter referred to as the “Base
Salary.”

 

4.     Annual Bonus.  During the Employment Term, Executive shall
be eligible to earn an annual bonus award in respect of each fiscal year of the
Company (an “Annual  Bonus”), in a target amount equal to 100%
of Executive’s Base Salary (the “Target
Bonus”) (with a maximum
opportunity equal to 150% (increasing in a linear progression for performance
above 100% and up to 150%) of Executive’s Base Salary, based upon achievement
of certain “stretch” targets to be established by the Board annually in
consultation with the Executive), payable upon the Company’s achievement of
certain performance targets (of which no less than 67% shall be weighted based
on EBITDA (as such term is defined in the Equity Documents) targets for each
fiscal year of the Company (each, a “Fiscal
Year”), with the balance of such targets to be based on other
metrics (which may include EBITDA-Cap Ex targets) established by the Board
after consultation with Executive, pursuant to the terms of an incentive
compensation plan to be established by the Board promptly after the Effective
Date (the “Incentive Plan”).  Notwithstanding the foregoing, for fiscal
year 2004, Executive’s Annual Bonus shall be equal to 50% of Executive’s Base
Salary, payable in the first quarter of fiscal year 2005, upon the 

 

 

achievement of
the 2004 EBITDA target set forth in the KKR/Reisch Financial Plan (adjusted for
certain non-recurring, non-operating or other transaction-related items)
attached hereto as Exhibit A. 
All other Annual Bonuses shall be payable under the Incentive Plan at
such time(s) as annual bonuses are otherwise payable thereunder.

 

5.     Signing Bonus.  On the Effective Date, the Company shall pay
to the Executive a cash signing bonus of $600,000, which bonus Executive shall
(net after the payment or provision for applicable taxes and other amounts
required by law to be withheld) reinvest in Class A Common Stock as part of the
Executive’s Equity Participation as set forth in Section 7 below.

 

6.     Employee Benefits; Business
Expenses.

 

a.     Employee
Benefits.  During the Employment
Term, Executive and his dependents shall be entitled to participate in the
Company’s welfare benefit plans, fringe benefit plans and qualified and
nonqualified retirement plans (the “Company Plans”) as in effect from time to time as determined by the Board
(collectively, the “Employee Benefits”),
on the same basis as those benefits are made available to the other senior
executives of the Company, at the level made available to the chief executive
officer position of the Company in accordance with the Company’s policies as in
effect from time to time.

 

b.     Perquisites.  During the Employment Term, Executive shall be entitled to
receive such perquisites as are made available the chief executive officer
position of the Company in accordance with the Company’s policies in effect as
of the date hereof.  Executive shall be
entitled to not less than four weeks of paid vacation per annum, which shall be
subject to the Company’s vacation policy applicable to the other senior
executives of the Company, at the level made available to the chief executive
officer position of the Company in accordance with the Company’s policies as in
effect from time to time.

 

c.     Life Insurance.  The Company shall pay all premiums on a life
insurance policy having a death benefit equal to $10 million that will be
payable to such beneficiaries as may be designated by Executive, which life
insurance policy shall, to the extent attainable by the Company using its
commercially reasonable efforts, contain a provision allowing for Executive,
upon any termination of his employment, to assume such policy at the same
premium costs paid by the Company prior to such termination (subject to such
increases as may be made in the ordinary course by the insurance company
providing the policy), such that the Executive may continue to receive coverage
under such life insurance policy thereafter at his own expense (such policy,
the “Life Insurance Policy”).

 

d.     Business Expenses.  During the Employment Term, reasonable business expenses
incurred by Executive in the performance of Executive’s duties hereunder shall
be reimbursed by the Company in accordance with the Company’s policies
applicable to senior executive officers of the Company.

 

7.     Equity Participation.

 

a.     Executive will (i) invest $3,500,000 in
cash to purchase shares of Class A Common Stock and (ii) be granted an option
to purchase 3.5 shares of Class A Common

 

 

Stock for every one share of the first
$3,500,000 of Class A Common stock the Executive initially purchases, pursuant
to the terms of the Equity Documents (as such term is defined in Section 7(c)
below).  In each case described in clauses
(i) and (ii) above, the per share purchase price will be equal to, effectively
(after taking into account any recapitalization or other corporate
restructuring that results in or effects the per share price), the same price
per share paid by the KKR Investor for its shares of Class A Common Stock
purchased as of the date hereof.

 

b.     In addition to the foregoing and pursuant
to the Equity Documents, upon the Effective Date, Executive will receive a
one-time grant of Class A Common Stock having an aggregate value, as of the
Effective Date, equal to $1,000,000 (the “Grant Shares”), which Class A Common Stock shall be
100% vested and nonforfeitable by the Executive, but subject to the
restrictions set forth in the Equity Documents.  Executive shall pay the Company the par value in respect of the
Grant Shares.

 

c.     Executive’s equity participation
in the Company has been documented pursuant to the 2004 Stock Purchase and
Option Plan for Key Employees of the Company and its Subsidiaries (the “Stock Option Plan”) and in a Management
Stockholders’ Agreement, Stock Option Agreement, Restricted Stock Award
Agreement and Sale Participation Agreement, each as executed by the Executive,
the Company, and its shareholders, as applicable in such forms as are attached
hereto (such documents, collectively, the “Equity Documents”).  The Company and
Executive each acknowledges that the terms and conditions of the aforementioned
documents govern Executive’s acquisition, holding, sale or other disposition of
Executive’s equity in the Company, and all of Executive’s and the Company’s
rights with respect thereto.

 

8.     Termination.  Executive’s employment hereunder may be
terminated by either party at any time and for any reason; provided that
Executive will be required to give the Employer at least 60 days advance
written notice of any resignation of Executive’s employment without Good Reason
(other than due to Executive’s death or Disability).  In the event that the Company terminates Executive’s employment
in accordance with the foregoing sentence the Company may, in its sole
discretion, prohibit Executive from entering the premises of the Company for
all or any portion of the period after giving him notice of such
termination.  Notwithstanding any other
provision of this Agreement, the provisions of this Section 8 shall exclusively
govern Executive’s rights upon termination of employment with the Employer; provided,
however, that nothing contained in this Section 8 shall diminish Executive’s
rights with respect to the Equity Documents, which shall continue to govern
Executive’s equity holdings following any termination in accordance therewith.

 

a.     By the Employer For Cause or By
Executive Without Good Reason.

 

(i)  The
Employment Term and Executive’s employment hereunder may be terminated by the
Employer for Cause (as defined below) and shall terminate automatically upon
Executive’s resignation without Good Reason (other than due to Executive’s
death or Disability); provided that Executive will be required to give
the Employer at least 60 days advance written notice of such resignation.

 

(ii)  For
purposes of this Agreement, “Cause”
shall mean (A) Executive’s willful and continued failure to perform his
material duties with respect to the Employer or its

 

 

subsidiaries as provided hereunder which
continues beyond 10 days after a written demand for substantial performance is
delivered to Executive by the Company; (B) the willful or intentional engaging
by Executive in conduct that causes material and demonstrable injury,
monetarily or otherwise, to the Company or the Investors or their respective
Affiliates (as defined in the Option Plan) ; (C) the commission of a crime
constituting (x) a felony under the laws of the United States or any state
thereof or (y) a misdemeanor involving moral turpitude; or (D) a material
breach of this Agreement or any of the Equity Documents by Executive,
including, without limitation, engaging in any action in breach of the
restrictive covenants set forth in Section 10 and 11 of this Agreement, which
continues beyond 10 days after a written demand to cure such breach is
delivered to Executive by the Company (to the extent that, in the Board’s
reasonable judgment, such breach can be cured); provided that any
termination under clauses (A) through (D) above for Cause shall require the
affirmative vote of two-thirds of the members of the Board (or such higher
percentage or procedures required under the Stockholders Agreement, dated the
date hereof, among the Company and the Investors (the “Stockholders Agreement”)).

 

(iii) 
If Executive’s employment is terminated by the Employer
for Cause, or if Executive resigns without Good Reason (as defined in Section
8(c)), Executive shall be entitled to receive:

 

(A) a
lump sum payment of the Base Salary that is earned by Executive but unpaid as
of the Date of Termination (as such term is defined in Section 8(d) below),
paid within ten (10) business days after the Date of Termination;

 

(B) a lump sum payment of any Annual Bonus that is earned by
Executive but unpaid as of the Date of Termination for any previously completed
Fiscal Year, paid within ten (10) business days after the Date of Termination;

 

(C) a
lump sum payment equal to all
vacation pay that is accrued in respect of Executive’s unused vacation days as
of the Date of Termination, paid within ten (10) business days after the
Date of Termination;

 

(D) reimbursement
for any unreimbursed business expenses incurred by Executive in accordance with
Company policy referenced in Section 6(d) above prior to the Date of
Termination (with such reimbursements to be paid promptly after Executive
provides the Company with the necessary documentation of such expenses to the
extent required by such policy);

 

(E) if applicable, payment of the Retirement Benefit (as such term
is defined in Section 9 below) in accordance with the provisions of Section 9
below;

 

(F) if
applicable, the transfer of the Life Insurance Policy pursuant to Section 6(c)
above; and

 

(G) such
Employee Benefits, if any, as to which Executive may be entitled under the
applicable Company Plans upon termination of employment hereunder, (the
payments and benefits described clauses (A) through (G) hereof being referred
to, collectively, as the “Accrued Rights).

 

 

Following such termination of Executive’s employment
by the Employer for Cause or resignation by Executive, except as set forth in
this Section 8(a)(iii), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.

 

b.     Disability or Death.

 

(i)  Executive’s
employment hereunder shall terminate upon Executive’s death and may be
terminated by the Employer if Executive becomes physically or mentally
incapacitated and is therefore unable for a period of six (6) consecutive
months or for an aggregate of nine (9) months in any eighteen (18) consecutive
month period to perform Executive’s duties (such incapacity is hereinafter
referred to as “Disability”).  Any question as to the existence of the
Disability of Executive as to which Executive and the Employer cannot agree
shall be determined in writing by a qualified independent physician mutually
acceptable to Executive and the Employer. 
If Executive and the Employer cannot agree as to a qualified independent
physician, each shall appoint such a physician and those two physicians shall
select a third who shall make such determination in writing.  The determination of Disability hereunder
shall be made in a writing that is promptly provided to the Employer and
Executive shall be final and conclusive for all purposes of the Agreement.

 

(ii)  Upon
termination of Executive’s employment hereunder for either Disability or death,
Executive or Executive’s estate (as the case may be) shall be entitled to
receive:

 

(A) the Accrued Rights; and

 

(B) a
lump sum payment of the pro rata portion (based upon the number of days in the
applicable Fiscal Year during which Executive was employed with the Company
through the Date of Termination, relative to the number of days in the
applicable Fiscal Year) of the Annual Bonus, if any, that Executive would have
been entitled to receive pursuant to the Incentive Plan in respect of the
Fiscal Year in which the Date of Termination occurs, paid within fifteen (15)
days after the Date of Termination.

 

Following Executive’s termination of employment due to
Executive’s death or Disability, except as set forth in this Section 8(b)(ii),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

c.     By the Employer Without Cause or
by Executive for Good Reason.

 

(i)  Executive’s employment hereunder may be
terminated (A) by the Employer without Cause (which shall not include
Executive’s termination of employment due to his death or Disability) or (B) by
Executive for Good Reason (as defined below).

 

(ii) 
For purposes of this Agreement, “Good
Reason” shall mean (A) a reduction in Executive’s rate
of Base Salary or annual incentive compensation opportunity (other than a
general reduction in base salary or annual incentive compensation opportunities
that affects all members of senior management of the Company equally, which
general reduction shall only be implemented by the Board after consultation
with Executive); (B) a material

 

 

reduction in Executive’s duties and
responsibilities as set forth in Section 2 above, an adverse change in
Executive’s titles as set forth in Section 2 above or the assignment to
Executive of duties or responsibilities materially inconsistent with such
titles; provided, however, in no event shall any of the foregoing be
deemed to occur by virtue of the removal of Executive from the position of
Chairman of the Board following the completion of a Public Offering; or (C) a
transfer of the Executive’s primary workplace by more than fifty miles outside
of Armonk, New York.

 

(iii) 
If Executive’s employment is terminated by the Employer
without Cause (including by virtue of the Company’s failure to renew the
Employment Term at any time, but excluding by reason of Executive’s death or
Disability) or by Executive for Good Reason, Executive shall be entitled to
receive:

 

(A) the
Accrued Rights;

 

(B) subject to Executive’s continued compliance with the
provisions of Sections 10 and 11, (1) a lump sum payment equal to the pro-rated
portion (based upon the number of days in the applicable Fiscal Year during
which Executive was employed with the Company through the Date of Termination,
relative to the number of days in the applicable Fiscal Year) of the Annual
Bonus that Executive would otherwise have been entitled to receive if he had
remained employed through the end of the Fiscal Year in which the Date of
Termination occurs, paid at such time as such Annual Bonus would otherwise have
been paid and (2) two times the sum of (x) the Base Salary at the rate in
effect immediately prior to the Date of Termination and (y) the Target Bonus
for the year in which the Date of Termination occurs, payable in equal monthly
installments over the twenty-four (24) month period commencing on the Date of
Termination (the “Severance Period”);
provided, however, that the aggregate amount described in this
subsection (B) shall be reduced by the present value of any other cash
severance or other similar cash termination benefits payable to Executive under
any other plans, programs or arrangements of the Company or its Affiliates and
any amounts owed by Executive to the Company and any amounts for any loans, or
funds advanced, to, Executive; and

 

(C) (1) continuation
of welfare benefits (pursuant to the same benefit plans as in effect for active
employees of the Company) until the earlier to occur of the end of the
Severance Period and the date on which Executive commences to be eligible for
coverage under comparable welfare benefit plans from any subsequent employer,
or (2) cash in an amount that allows Executive to purchase equivalent welfare
benefit plan coverage for the Severance Period.

 

Following Executive’s termination of employment by the
Employer without Cause (including by virtue of the Company’s failure to renew
the Employment Term at any time, but excluding by reason of Executive’s death
or Disability) or Executive for Good Reason, except as set forth in this
Section 8(c)(iii), Executive shall have no further rights to any compensation
or any other benefits under this Agreement.

 

 

d.     Notice
of Termination.  Any purported
termination of employment by the Employer or by Executive (other than due to
Executive’s death) shall be communicated by written Notice of Termination to
the other party hereto in accordance with Section 15(h)) hereof.  For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall
indicate the specific termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of employment under the provision so indicated.  For purposes of this Agreement, the “Date of Termination” shall mean the date the Notice
of Termination is given to the respective party; provided, however, that (i)
with respect to a termination for Cause by the Company, the Date of Termination
shall not occur prior to the expiration of any applicable Cure Period and (ii)
upon a nonrenewal of the Employment Term by either party, the date the
Employment Term expires, and not the date of the notice itself, shall
constitute the applicable Date of Termination.

 

e.     Board/Committee
Resignation.  Upon termination of
Executive’s employment for any reason, Executive agrees to resign, as of the
date of such termination and to the extent applicable, from the Board (and any
committees thereof) and the board of directors (and any committees thereof) of
any of the Company’s Affiliates.

 

9.     Retirement
Benefit.

 

a.     If
Executive’s employment with the Employer terminates for any reason after
December 31, 2009 (such period of employment, the “Service Period”), Executive shall be eligible
to receive payment of an annual retirement benefit from the Company, payable to
Executive for his lifetime and commencing on the later to occur of (i) the date
on which Executive achieves age 60 or (ii) such later date as Executive’s
employment with the Employer terminates for any reason (the “Retirement Benefit”).  The Retirement Benefit shall equal: (x) 10% of the average of the
sums of each of Executive’s Base Salary plus cash Annual Bonus (excluding any
transaction, signing or other non-recurring special bonuses) paid or payable to
Executive in respect of the last five full fiscal years ended prior to the Date
of Termination (with any such sums paid or payable in respect of any partial
fiscal years being annualized for such full fiscal years) (such five-year
average, the “Average Compensation”),
plus (y) (I) 2.0% of the Average Compensation (the “Additional Percentage”) for each additional full
fiscal year occurring after the Service Period during which Executive remains
employed with the Employer and (II) a prorated portion of the Additional
Percentage for any such period of employment occurring after the Service Period
that is less than twelve months (with such prorated portion determined based on
the number of days in such period of employment relative to the number of days
in such twelve-month period), minus (z) the annual aggregate amount of
any benefit(s) payable to Executive under any Company retirement plans
(qualified and non-qualified) (the “Retirement Plans”).  In the event the Executive becomes vested in
the Retirement Benefit prior to the completion of the Service Period (as
provided in Section 9(b)), (A) the “Average Compensation” shall,
notwithstanding the definition used above, be calculated using the average of
the sums of each of Executive’s Base Salary plus cash Annual Bonus (excluding
any transaction, signing or other non-recurring special bonuses) paid or
payable to Executive in respect of the number of full fiscal years occurring
from the Effective Date through the Date of Termination (or Change in Control
(as defined in Section 9(d) below), as applicable) (with any such sums paid or
payable in respect of any partial fiscal years being annualized for such
applicable fiscal years), and (B) the percentage that will be applied to the
Average Compensation

 

 

shall be 2%, multiplied by the number of full
twelve-month periods occurring between the Effective Date and the Date of
Termination (or Change in Control, as applicable).

 

b.     Notwithstanding
Section 9(a), prior to the completion of the Service Period, Executive shall
vest in the Retirement Benefit upon the earliest to occur of the following
events: (a) a Change in Control; (b) a termination of Executive’s employment on
account of Executive’s death or Disability; and (c) after the third anniversary
of the Effective Date, a termination of Executive’s employment for Good Reason
by Executive or other than for Cause by the Company (including by virtue of the
Company’s failure to renew the Employment Term at any time).

 

c.     At
such time as Executive vests in the Retirement Benefit as provided in Section
9(b) above, immediately following Executive’s termination of employment,
Executive and his dependents shall be provided with medical benefits, on the
same terms as would have applied had Executive continued to be employed with
the Company hereunder pursuant to Section 6(a) above (the “Post-Termination Medical Benefits”), until the earlier to occur
of (i) the date on which Executive attains age 65 or (ii) Executive becomes
eligible to receive medical benefits under the terms and conditions of another
employer’s medical benefits plan; provided, however, that in the
event Executive vests in the Retirement Benefit on account of his death, his
then-spouse shall be entitled to receive the Post-Retirement Medical Benefits
until the date on which Executive would, but for his death, have attained age
65.

 

d.     For
purposes of this Agreement, “Change of Control” shall mean (i) the sale (in one transaction or a series of
transactions) of all or substantially all of the assets of the Company to a
“person” (as defined below) who is not an Investor or an Affiliate of any of
the Investors; (ii) a sale (in one transaction or a series of transactions) by
the Investors or any of their respective Affiliates resulting in more than 50%
of the voting stock of the Company being held by a “person” or “group” (as such
terms are used in the Securities Exchange Act of 1934, as amended) that does
not include either of the Investors or any of their respective Affiliates; or
(iii) a merger or consolidation of the Company into another person which is not
an Affiliate of either of the Investors; if and only if any such event listed in clauses (i) through (iii) above
results in the inability of any of the Investors to elect a majority of the Board
or the board of directors of the resulting entity.

 

10.   Non-Competition.

 

a.     Executive acknowledges and
recognizes the highly competitive nature of the businesses of the Employer and
its Affiliates and accordingly agrees as follows:

 

(i)  During
the Employment Term and, for a period of two years following the date Executive
ceases to be employed by the Employer (the “Restricted
Period”), Executive will not, whether on Executive’s own behalf or
on behalf of or in conjunction with any person, firm, partnership, joint
venture, association, corporation or other business organization, entity or
enterprise whatsoever (“Person”),
directly or indirectly solicit or assist in soliciting in engaging in a
Competitive Business (as such term is defined below) any customer or
prospective customer:

 

 

(A) with
whom Executive had personal contact or dealings on behalf of the Employer
during the one-year period preceding Executive’s termination of employment; or

 

(B) with
whom employees directly reporting to Executive have had personal contact or
dealings on behalf of the Employer of which Executive is aware during the one
year immediately preceding Executive’s termination of employment.

 

(ii)  During the Restricted Period, Executive will
not directly or indirectly:

 

(A) engage
in any business that directly or
indirectly competes with the business of the Company in (1) school photography
services or school-related clothing, affinity products and services, (2)
commercial printing and binding, (3) printing services to companies engaged in
direct marketing, (4) fragrance, cosmetics and toiletries-related sampling or
(5) single use packaging for fragrances, cosmetics and toiletries, in North
America in the case of clauses (1) through (3) and in North America and Europe
in the case of clauses (4) and (5) (any of the foregoing activities
described in this Clause A, a “Competitive
Business”);

 

(B) enter
the employ of, or render any services to, any Person (or any division or
controlled or controlling Affiliate of any Person) who or which engages in a
Competitive Business, provided that the foregoing shall not prevent
Executive from being employed by such a competing entity so long as (1) neither
Executive nor his employer competes with the Company or the Investors and (2)
Executive does not help or have authority over any of the related entities that
are Competitive Businesses;

 

(C) acquire
a financial interest in, or otherwise become actively involved with, any
Competitive Business, directly or indirectly, as an individual, partner,
shareholder, officer, director, principal, agent, trustee or consultant; or

 

(D) knowingly
interfere with, or knowingly attempt to interfere with, business relationships
(whether formed before, on or after the date of this Agreement) between the
Employer or any of its Affiliates and customers, clients, suppliers, partners,
members or investors of the Employer or its Affiliates.

 

(E) Notwithstanding
anything to the contrary in this Agreement, Executive may, directly or
indirectly own, solely as an investment, securities of any Person engaged in a
Competitive Business which are publicly traded on a national or regional stock
exchange or on the over-the-counter market if Executive (x) is not a
controlling person of, or a member of a group which controls, such person and
(y) does not, directly or indirectly, own 2% or more of any class of
securities of such Person.

 

 

(iii) 
During the Restricted Period, Executive will not, whether
on Executive’s own behalf or on behalf of or in conjunction with any Person,
directly or indirectly:

 

(A) solicit
or encourage any employee of the Employer or its Affiliates to leave the
employment of the Employer or its Affiliates; or

 

(B) hire
any such employee who was employed by the Employer or its Affiliates as of the
date of Executive’s termination of employment with the Employer or who left the
employment of the Employer or its Affiliates coincident with, or within one
year prior to or after, the termination of Executive’s employment with the
Employer.

 

(iv)  During the Restricted Period, Executive will
not, directly or indirectly, solicit or encourage to cease to work with the
Employer or its Affiliates any consultant then under contract with the Employer
or its Affiliates.

 

(v)  This Section 10 shall not apply with respect
to the KKR Investor or the DLJMB Funds or any of their respective Affiliates
that is not engaged, directly or indirectly, in a Competitive Business.

 

b.     It
is expressly understood and agreed that although Executive and the Employer
consider the restrictions contained in this Section 10 to be reasonable, if a
final judicial determination is made by a court of competent jurisdiction that
the time or territory or any other restriction contained in this Agreement is
an unenforceable restriction against Executive, the provisions of this
Agreement shall not be rendered void but shall be deemed amended to apply as to
such maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable.  Alternatively, if any court of competent jurisdiction finds that
any restriction contained in this Agreement is unenforceable, and such
restriction cannot be amended so as to make it enforceable, such finding shall
not affect the enforceability of any of the other restrictions contained
herein.

 

11.   Confidentiality.

 

a.     Executive will not at any time
(whether during or after Executive’s employment with the Employer), except when
required to perform his or her duties to the Company or one of its
Subsidiaries, (x) retain or use for the benefit, purposes or account of
Executive or any other Person; or (y) disclose, divulge, reveal, communicate,
share, transfer or provide access to any Person outside the Employer (other
than its professional advisers who are bound by confidentiality obligations),
any non-public, proprietary or confidential information —including without
limitation rates, trade secrets, know-how, research and development, software,
databases, inventions, processes, formulae, technology, designs and other
intellectual property, information concerning finances, investments, profits,
pricing, costs, products, services, vendors, customers, clients, partners,
investors, personnel, compensation, recruiting, training, advertising, sales,
marketing, promotions, government and regulatory activities and approvals —
concerning the past, current or future business, activities and operations of
the Employer, its subsidiaries or Affiliates and/or any third party that has
disclosed or provided any of same to the Employer on a

 

 

confidential basis (“Confidential Information”) without the prior written
authorization of the Board.

 

b.     “Confidential Information” shall not include any
information that is (a) generally known to the industry or the public other
than as a result of Executive’s breach of this covenant or any breach of other
confidentiality obligations by third parties; (b) made legitimately available
to Executive by a third party without breach of any confidentiality obligation;
or (c) required by law or judicial process to be disclosed; provided
that Executive shall give prompt written notice to the Employer of such
requirement and cooperate with any attempts by the Employer to obtain a
protective order or similar treatment.

 

c.     Except as required by law or
judicial process, Executive will not disclose to anyone, other than Executive’s
immediate family, legal and/or financial advisors, the existence or contents of
this Agreement; provided that Executive may disclose to any prospective
future employer the provisions of Sections 10 and 11 of this Agreement.

 

d.     Upon termination of Executive’s
employment with the Employer for any reason, Executive shall (x) cease and not
thereafter commence use of any Confidential Information or intellectual
property (including without limitation, any patent, invention, copyright, trade
secret, trademark, trade name, logo, domain name or other source indicator)
owned by the Employer, its subsidiaries or Affiliates; (y) immediately destroy,
delete, or return to the Employer, at the Employer’s option, all originals and
copies in any form or medium (including memoranda, books, papers, plans,
computer files, letters and other data) in Executive’s possession or control
(including any of the foregoing stored or located in Executive’s office, home,
laptop or other computer, whether or not Employer property) that contain
Confidential Information or otherwise relate to any material aspects of the
business of the Employer, its Affiliates or subsidiaries (and which the
retention or use thereof would reasonably be expected to result in a
demonstrable injury to the Employer), except that Executive may retain only
those portions of any personal notes, notebooks and diaries that do not contain
any Confidential Information; and (z) notify and fully cooperate with the Employer
regarding the delivery or destruction of any other Confidential Information of
which Executive is or becomes aware.

 

e.     Executive shall not improperly
use for the benefit of, bring to any premises of, divulge, disclose,
communicate, reveal, transfer or provide access to, or share with the Employer
any confidential, proprietary or non-public information or intellectual
property relating to a former employer or other third party without the prior
written permission of such third party. 
Executive hereby indemnifies, holds harmless and agrees to defend the
Employer and its officers, directors, partners, employees, agents and
representatives from any breach of the foregoing covenant.  During the Employment Term, Executive shall
comply with all relevant written policies and guidelines of the Employer which
have been made available or disclosed to him, including regarding the
protection of Confidential Information and intellectual property and potential
conflicts of interest.  Executive
acknowledges that the Employer may amend any such policies and guidelines from
time to time, and that Executive remains at all times bound by their most
current version; provided, however, that Executive shall not be bound by any
such amendments unless and until Executive receives in writing notice of such
amendments and copies thereof are made available or disclosed to him.

 

 

 

12.   Equity Purchase Rights.  Executive shall have the right to
purchase his Pro Rata Portion (as defined in the Stockholders Agreement) of
Equity Purchase Shares (as defined in the Stockholders’ Agreement) under
Sections 4.1(a) and (b) of the Stockholders’ Agreement.  Any Equity Purchase Shares purchased by
Executive shall be governed by the terms and conditions of the Equity
Documents.

 

13.   Specific Performance.  Executive acknowledges and agrees that the
Employer’s remedies at law for a breach or threatened breach of any of the
provisions of Section 10 or Section 11 would be inadequate and the Employer
would suffer irreparable damages as a result of such breach or threatened
breach.  In recognition of this fact,
Executive agrees that, in the event of such a breach or threatened breach, in
addition to any remedies at law, the Employer, without posting any bond, shall
be entitled to cease making any payments or providing any benefit otherwise
required by this Agreement and obtain equitable relief in the form of specific
performance, temporary restraining order, temporary or permanent injunction or
any other equitable remedy which may then be available.

 

14.   Arbitration.  Except as provided in Section 13, any other
dispute arising out of or asserting breach of this Agreement, or any statutory
or common law claim by Executive relating to his employment under this
Agreement or the termination thereof (including any tort or discrimination
claim), shall be exclusively resolved by binding statutory arbitration in
accordance with the Employment Dispute Resolution Rules of the American
Arbitration Association.  Such
arbitration process shall take place in New York, New York.  A court of competent jurisdiction may enter
judgment upon the arbitrator’s award. 
Each party shall pay the costs and expenses of arbitration (including
fees and disbursements of counsel) incurred by such party in connection with
any dispute arising out of or asserting breach of this Agreement.

 

15.   Miscellaneous.

 

a.     Legal Fees.  The Company shall pay or reimburse Executive
for the reasonable legal fees and expenses of Latham & Watkins LLP that
Executive incurs that relate to the negotiation, drafting and review of that
certain Summary of Principal Terms of Compensation and Equity Arrangements
executed by Executive on July 20, 2004, this Agreement and the Equity Documents
prior to the execution thereof (including the establishment of a limited family
partnership); provided, however, that the maximum amount of such payment
or reimbursement by the Company shall be $35,000 in the aggregate.

 

b.     Governing Law.  This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to conflicts of laws
principles thereof.

 

c.     Entire Agreement/Amendments.  This Agreement contains the entire understanding of the parties
with respect to the employment of Executive by the Employer.  There are no restrictions, agreements,
promises, warranties, covenants or undertakings between the parties with
respect to the subject matter herein other than those expressly set forth
herein.  This Agreement may not be
altered, modified, or amended except by written instrument signed by the
parties hereto.

 

 

d.     No Waiver.  The failure of a party to insist upon strict adherence to any
term of this Agreement on any occasion shall not be considered a waiver of such
party’s rights or deprive such party of the right thereafter to insist upon
strict adherence to that term or any other term of this Agreement.

 

e.     Severability.  In the event that any one or more of the provisions of this
Agreement shall be or become invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions of this
Agreement shall not be affected thereby.

 

f.      Assignment.  This Agreement, and all of Executive’s rights and duties
hereunder, shall not be assignable or delegable by Executive; provided, however,
that if Executive shall die, all amounts then payable to Executive hereunder
shall be paid in accordance with the terms of this Agreement to Executive’ s
devisee, legatee or other designee or, if there be no such devisee, legatee or
designee, to Executive’s estate.  Any
purported assignment or delegation by Executive in violation of the foregoing
shall be null and void ab initio
and of no force and effect.  This
Agreement may be assigned by the Employer to a person or entity which is an
Affiliate, and shall be assigned to any successor in interest to substantially
all of the business operations of the Employer.  Upon such assignment, the rights and obligations of the Employer
hereunder shall become the rights and obligations of such Affiliate or
successor person or entity.  Further, the Company will
require any successor (whether, direct or indirect, by purchase, merger,
consolidation, or otherwise) to all or substantially all of the business and/or
assets of the Company to assume expressly and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.  As used in this Agreement, “Company” shall mean the Company and any successor to its business
and/or assets which is required by this Section 15(f) to assume and agree to
perform this Agreement or which otherwise assumes and agrees to perform this
Agreement; provided, however, in the event that any successor, as
described above, agrees to assume this Agreement in accordance with the
preceding sentence, as of the date such successor so assumes this Agreement,
the Company shall cease to be liable for any of the obligations contained in
this Agreement.

 

g.     Set Off; Mitigation.  The Employer’s obligation to pay Executive the amounts provided
and to make the arrangements provided hereunder shall not be subject to
set-off, counterclaim or recoupment, other than amounts loaned or advanced to
Executive by the Company or its Affiliates or otherwise as provided in Section
8(c) hereof.  Executive shall not be
required to mitigate the amount of any payment provided for pursuant to this
Agreement by seeking other employment or otherwise and the amount of any
payment provided for pursuant to this Agreement shall not be reduced by any
compensation earned as a result of Executive’s other employment or otherwise.

 

h.     Notice.  For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered by hand or overnight courier or
three days after it has been mailed by United States registered mail, return
receipt requested, postage prepaid, addressed to the respective addresses set
forth below in this Agreement, or to such other address as either

 

 

party may have furnished to the other in
writing in accordance herewith, except that notice of change of address shall
be effective only upon receipt.

 

If to
the Employer:

 

Jostens
Holding Corp.

c/o Jostens, Inc.

5501 Norman Center Drive

Minneapolis, MN  55437

Attention:  General Counsel

 

 

With a copy to:

 

Simpson
Thacher & Bartlett LLP

425
Lexington Avenue

New
York, New York 10017

Attention:  Alvin H. Brown, Esq.

 

and

 

Weil, Gotshal
& Manges LLP

767 Fifth Avenue

New York, New York 10153

Attention:  Douglas P. Warner, Esq.

 

 

If to
Executive:

 

To the most recent
address of Executive set forth in the personnel records of the Employer.

 

With a copy to:

 

Latham &
Watkins LLP

555 Eleventh Street, NW 

Suite 1000 

Washington, DC 20004-1304  

Attention:  Andrea K. Wahlquist, Esq.

 

i.      Executive Representation.  Executive hereby represents to the Employer that the execution
and delivery of this Agreement by Executive and the Employer and the
performance by Executive of Executive’s duties hereunder shall not constitute a
breach of, or otherwise contravene, the terms of any employment agreement or
other agreement or policy to which Executive is a party or otherwise bound.

 

j.      Prior Agreements. This Agreement supercedes all
prior agreements and understandings (including verbal agreements) between
Executive and the Employer and/or

 

 

its Affiliates regarding the terms and
conditions of Executive’s employment with the Employer and/or its Affiliates; provided,
however, that the Equity Documents shall govern the terms and conditions
of Executive’s equity holdings in the Company.

 

k.     Cooperation.  Executive shall provide Executive’s reasonable cooperation in
connection with any action or proceeding (or any appeal from any action or
proceeding) which relates to events occurring during Executive’s employment
hereunder, but only to the extent the Company requests such cooperation with
reasonable advance notice to Executive and in respect of such periods of time
as shall not unreasonably interfere with Executive’s ability to perform his
duties with any subsequent employer; provided, however, that the
Employer shall pay any reasonable travel, lodging and related expenses that
Executive may incur in connection with providing all such cooperation, to the
extent approved by the Company prior to incurring such expenses.

 

l.      Withholding Taxes.  The Employer may withhold from any amounts payable under this
Agreement such Federal, state and local taxes as may be required to be withheld
pursuant to any applicable law or regulation.

 

m.    Counterparts.  This Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 

16.   Excise Taxes.

 

a.     In
the event it shall be determined that any payment, benefit or distribution (or
combination thereof) by the Employer, any of its Affiliates, one or more trusts
established by the Employer for the benefit of its employees, or any other
person or entity, to or for the benefit of Executive (whether paid or payable
or distributed or distributable pursuant to the terms of this Agreement, or
otherwise pursuant to or by reason of any other agreement, policy, plan,
program or arrangement, including without limitation any stock option,
restricted stock, or the lapse or termination of any restriction on the vesting
or exercisability of any of the foregoing) (a “Payment”) would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Code”)
by reason of being “contingent on a change in ownership or control” of the
Employer, within Section 280G of the Code (or any successor provision thereto)
or any interest or penalties are incurred by Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties,
hereinafter collectively referred to as the “Excise Tax”), then Executive shall be entitled to receive an
additional payment or payments (a “Gross-Up Payment”)
in an amount such that after payment by Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Payments.

 

b.     Subject
to the provisions of Section 16(a) hereof, all determinations required to be
made under this Section 16, including whether and when a Gross-Up Payment is
required and the amount of such Gross-Up Payment and the assumptions to be
utilized in

 

 

arriving at such determination, shall be made
by a nationally recognized certified public accounting firm as may be
designated by the Employer, and reasonably satisfactory to Executive (the “Accounting Firm”), which shall provide detailed
supporting calculations both to the Employer and Executive within fifteen (15)
business days of Termination Date, or such earlier time as is requested by the
Employer; provided that for purposes of determining the amount of any
Gross-Up Payment, Executive shall be deemed to pay federal income tax at the
highest marginal rates applicable to individuals in the calendar year in which
any such Gross-Up Payment is to be made and deemed to pay state and local
income taxes at the highest effective rates applicable to individuals in the
state or locality of Executive’s residence or place of employment in the
calendar year in which any such Gross-Up Payment is to be made, net of the
maximum reduction in federal income taxes that can be obtained from deduction
of such state and local taxes, taking into account limitations applicable to
individuals subject to federal income tax at the highest marginal rates. All
fees and expenses of the Accounting Firm shall be borne solely by the Employer.
Any Gross-Up Payment, as determined pursuant to this Section 16, shall be paid
by the Employer to Executive (or to the appropriate taxing authority on
Executive’s behalf) when due immediately prior to the date Executive is
required to make payment of any Excise Tax or other taxes. If the Accounting
Firm determines that no Excise Tax is payable by Executive, it shall so
indicate to Executive in writing, with an opinion that Executive has
substantial authority not to report any Excise Tax on his/her federal state,
local income or other tax return. Any determination by the Accounting Firm
shall be binding upon the Employer and the Executive absent a contrary
determination by the Internal Revenue Service or a court of competent
jurisdiction; provided, however, that no such determination shall
eliminate or reduce the Employer’s obligation to provide any Gross-Up Payment
that shall be due as a result of such contrary determination. As a result of
the uncertainty in the application of Section 4999 of the Code (or any
successor provision thereto) and the possibility of similar uncertainty
regarding state or local tax law at the time of any determination by the
Accounting Firm hereunder, it is possible that the amount of the Gross-Up
Payment determined by the Accounting Firm to be due to (or on behalf of)
Executive was lower than the amount actually due (the “Underpayment”). In the event that the
Employer exhausts its remedies pursuant to Section 16(c) below, and Executive
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred as promptly as
possible and notify the Employer and Executive of such calculations, and any
such Underpayment (including the Gross-Up Payment to Executive) shall be
promptly paid by the Employer to or for the benefit of Executive within five
(5) business days after receipt of such determination and calculations.

 

c.     Executive
shall notify the Employer in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Employer of any
Gross-Up Payment. Such notification shall be given as soon as practicable but
no later than ten (10) business days after Executive is informed in writing of
such claim and shall apprise the Employer of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the thirty (30) day period following the
date on which he gives such notice to the Employer (or such shorter period
ending on the date that any payment of taxes with respect to such claim is
due). If the Employer notifies Executive in writing prior to the expiration of
such period that it desires to contest such claim, Executive shall (w) give the
Employer any information which is in Executive’s possession reasonably
requested by the Employer relating to such claim, (x) take such action in
connection

 

 

with contesting such claim as the Employer
shall reasonably request in writing from time to time, including, without
limitation, accepting legal representation with respect to such claim by an
attorney reasonably selected by the Employer, (y) cooperate with the Employer
in good faith in order to effectively contest such claim, and (z) permit the
Employer to participate in any proceedings relating to such claim; provided,
however, that the Employer shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions
of this Section 16, the Employer shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any
and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and Executive agrees to prosecute such contest
to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Employer shall
determine; provided, further, that if the Employer directs
Executive to pay such claim and sue for a refund, the Employer shall pay the
amount of such payment to Executive, and Executive shall use such amount
received to pay such claim, and the Employer shall indemnify and hold Executive
harmless, on an after-tax basis, from any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such
payment or with respect to any imputed income with respect to such payment
(including the applicable Gross-Up Payment); provided, further, that if
Executive is required to extend the statute of limitations to enable the
Employer to contest such claim, Executive may limit this extension solely to
such contested amount. the Employer’s control of the contest shall be limited
to issues with respect to which a Gross-Up Payment would be payable hereunder
and Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing
authority.

 

d.     If,
after the receipt by Executive of an amount paid or advanced by the Employer
pursuant to this Section 16, Executive becomes entitled to receive any refund
with respect to a Gross-Up Payment, Executive shall (subject to the Employer’s
complying with the requirements of Section 16(c)) promptly pay to the Employer the
amount of such refund received (together with any interest paid or credited
thereon after taxes applicable thereto) (or, to the extent such payment would
be deemed prohibited by applicable law, shall be treated as a prepayment by the
Employer of any amounts owed to Executive). If, after the receipt by Executive
of an amount advanced by the Employer pursuant to Section 16(c), a
determination is made that Executive shall not be entitled to any refund with
respect to such claim and the Employer does not notify Executive in writing of
its intent to contest such denial of refund prior to the expiration of thirty
(30) days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such payment made to Executive
thereunder shall offset, to the extent thereof, the amount of the Gross-Up
Payment required to be paid.

 

[Signatures on next page.]

 

 

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

 

 

	
  JOSTENS
  HOLDING CORP.:

  	
  EXECUTIVE:

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ David A.
  Tayeh

  	
   

  	
  /s/ Marc
  Reisch

  	
   

  
	
   

  	
  Marc Reisch

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  David A.
  Tayeh

  	
   

  	
   

  	
   

  
	
   

  	
  Chief
  Financial Officer

  	
   

  	
   

  	
   

  

 

 

Schedule
I

 

Approved Boards of Directors

 

Yellow Pages
Group (YPG Holdings Inc.), Chairman, board of directors

 

FindSVP,
member, board of directors

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