Document:

Exhibit 10.30

 

SECOND AMENDED AND RESTATED 2004 STOCK OPTION
PLAN

FOR KEY EMPLOYEES OF

VISANT HOLDING CORP. AND ITS SUBSIDIARIES

 

1.                                       Purpose
of Plan

 

The Second Amended and Restated 2004 Stock Option Plan for Key
Employees of Visant Holding Corp. and Its Subsidiaries (the “Plan”) is
designed:

 

(a)                                  to
promote the long term financial interests and growth of Visant Holding Corp.
(the “Company”) and its Subsidiaries by attracting and retaining management and
other personnel with the training, experience and ability to enable them to
make a substantial contribution to the success of the Company’s business;

 

(b)                                 to
motivate management personnel by means of growth-related incentives to achieve
long range goals; and

 

(c)                                  to
further the alignment of interests of participants with those of the
stockholders of the Company through opportunities for increased stock, or
stock-based ownership in the Company.

 

2.                                       Definitions

 

As used in the Plan, the following words shall have the following
meanings:

 

(a)                                  “Affiliate”
means with respect to any Person, any entity directly or indirectly
controlling, controlled by or under common control with such Person.

 

(b)                                 “Board”
means the Board of Directors of the Company.

 

(c)                                  “Change
in Control” means (i) the sale (in one transaction or a series of
transactions) of all or substantially all of the assets of the Company to an
Unaffiliated Person; (ii) a sale (in one transaction or a series of
transactions) resulting in more than 50% of the voting stock of the Company
being held by an Unaffiliated Person; (iii) a merger, consolidation,
recapitalization or reorganization of the Company with or into an Unaffiliated
Person; if and only if any such
event listed in clauses (i) through (iii) above results in the inability
of the Investors, or any member or members of the Investors, to designate or
elect a majority of the Board (or the board of directors of the resulting
entity or its parent company).  For
purposes of this definition, the term “Unaffiliated Person” means any Person or
Group who is not (x) an Investor or any member of the Investors,
(y) a Rule 405 Affiliate of any Investor or any member of any
Investor, or (z) an entity in which any Investor, or any member of any
Investor holds, directly or indirectly, a majority of the economic interests in
such entity.

 

(d)                                 “Committee”
means the Compensation Committee of the Board.

 

(e)                                  “Common
Stock” or “Share” means the Class A common stock, par value $0.01 per share, of
the Company, which may be authorized but unissued, or issued and reacquired.

 

 

(f)                                    “Employee”
means a person, including an officer, in the regular employment of the Company
or one of its Subsidiaries who, in the opinion of the Committee, is, or is
expected to have involvement in the management, growth or protection of some
part or all of the business of the Company.

 

(g)                                 “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(h)                                 “Fair
Market Value” means the price per share equal to (i) the average of the
last sale price of the Common Stock on the applicable date on each stock
exchange on which the Common Stock may at the time be listed or, (ii) if
there shall have been no sales on any such exchanges on the applicable date on
any given day, the average of the closing bid and asked prices of the Common
Stock on each such exchange on the applicable date or, (iii) if there is
no such bid and asked price on the applicable date, the average of the closing
bid and asked prices of the Common Stock on the next preceding date when such
bid and asked price occurred or, (iv) if the Common Stock shall not be so
listed, the closing sales price of the Common Stock as reported by NASDAQ on
the applicable date in the over-the-counter market, or, (v) if there has
been no Public Offering, the fair market value of the Common Stock as determined
(x) in the good faith discretion of the Board after consultation with
management of the Company and (y) without any premiums for control or
discounts for minority interests or restrictions on transfer.

 

(i)                                     “Grant”
means an award made to a Participant pursuant to the Plan and described in Section 5,
including, without limitation, an award of a Stock Option, Purchase Stock,
Restricted Stock, Stock Appreciation Right or Dividend Equivalent Right (as
such terms are defined in Section 5), or any combination of the foregoing.

 

(j)                                     “Grant
Agreement” means an agreement between the Company and a Participant that sets
forth the terms, conditions and limitations applicable to a Grant.

 

(k)                                  “Group”
means “group,” as such term is used for purposes of Section 13(d) or 14(d)
of the Exchange Act.

 

(l)                                     “Investors”
means Fusion Acquisition LLC, a Delaware limited liability company, and 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.

 

(m)                               “Participant”
means an Employee, non-employee member of the Board, consultant or other person
having a relationship with the Company or one of its Subsidiaries, to whom one
or more Grants have been made and remain outstanding.

 

(n)                                 “Person”
means “person,” as such term is used for purposes of Section 13(d) or
14(d) of the Exchange Act.

 

(o)                                 “Public
Offering” means the sale of shares of Common Stock to the public subsequent to
the date hereof pursuant to a registration statement under the Securities Act
of 1933, as amended, which has been declared effective by the Securities and
Exchange Commission (other than a registration statement on Form S-4, S-8
or any other similar form).

 

 

(p)                                 “Subsidiary”
means any corporation in an unbroken chain of corporations beginning with the
Company if each of the corporations, or group of commonly controlled
corporations, other than the last corporation in the unbroken chain then owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

 

3.                                       Administration
of Plan

 

(a)                                  The
Plan shall be administered by the Committee. 
The Committee may adopt its own rules of procedure, and action of a
majority of the members of the Committee taken at a meeting, or action taken
without a meeting by unanimous written consent, shall constitute action by the
Committee.  The Committee shall have the
power and authority to administer, construe and interpret the Plan, to make
rules for carrying it out and to make changes in such rules.  Any such interpretations, rules, and
administration shall be consistent with the basic purposes of the Plan.

 

(b)                                 The
Committee may delegate to the Chief Executive Officer and to other senior
officers of the Company its duties under the Plan subject to such conditions
and limitations as the Committee shall prescribe except that only the Committee
may designate and make Grants to Participants who are subject to Section 16
of the Exchange Act.

 

(c)                                  The
Committee may employ counsel, consultants, accountants, appraisers, brokers or
other persons.  The Committee, the
Company, and the officers and directors of the Company shall be entitled to
rely upon the advice, opinions or valuations of any such persons.  All actions taken and all interpretations and
determinations made by the Committee in good faith shall be final and binding
upon all Participants, the Company and all other interested persons.  No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or the Grants, and all members of the Committee
shall be fully protected by the Company with respect to any such action,
determination or interpretation.

 

4.                                       Eligibility

 

The Committee may from time to time make Grants under the Plan to such
Employees, or other persons having a relationship with Company or any of its
Subsidiaries, and in such form and having such terms, conditions and
limitations as the Committee may determine. 
The terms, conditions and limitations of each Grant under the Plan shall
be set forth in a Grant Agreement, in a form approved by the Committee,
consistent, however, with the terms of the Plan; provided, however,
that such Grant Agreement shall contain provisions dealing with the treatment
of Grants in the event of the termination of employment, death or disability of
a Participant, and may also include provisions concerning the treatment of
Grants in the event of a Change in Control of the Company.

 

5.                                       Grants

 

From time to time, the Committee will determine the forms and amounts
of Grants for Participants.  Such Grants
may take the following forms in the Committee’s sole discretion:

 

 

(a)                                  Stock
Options - These are options to purchase Common Stock.  At the time of Grant the Committee shall
determine, and shall include in the Grant Agreement or other Plan rules, the
option exercise period, the option exercise price, vesting requirements, and
such other terms, conditions or restrictions on the grant or exercise of the
option as the Committee deems appropriate including, without limitation, the
right to receive dividend equivalent payments on vested and/or unvested
options.  In addition to other
restrictions contained in the Plan, an option granted under this Section 5(a)
may not be exercised more than 10 years after the date it is granted.  Payment of the option exercise price shall be
made in cash or in shares of Common Stock that the Participant has held for at
least six months, or a combination thereof, in accordance with the terms of the
Plan, the Grant Agreement and of any applicable guidelines of the Committee in
effect at the time.

 

(b)                                 Stock
Appreciation Rights - The Committee may grant Stock Appreciation Rights in
connection with, or independent of, the grant of a Stock Option.  Each Stock Appreciation Right shall be
subject to such other terms as the Committee may determine.  A Stock Appreciation Right means the right to
transfer and surrender to the Company all or a portion of a Stock Option in
exchange for a cash amount equal to the excess of (i) the aggregate Fair Market
Value, as of the date such Option or portion thereof is transferred or
surrendered, of the Common Stock underlying by such Option or portion thereof,
over (ii) the aggregate exercise price of such Option or portion thereof,
relating to such Common Stock.

 

(c)                                  Purchase
Stock - Purchase Stock are Shares offered to a Participant at such price as
determined by the Committee, the acquisition of which may make the Participant
eligible to receive Grants under the Plan, including, but not limited to, Stock
Options.

 

(d)                                 Restricted
Stock – Restricted Stock are Shares granted by the Committee to a
Participant, without charge to the Participant (other than as may be required
by applicable law).  The Restricted Stock
shall be subject to such other terms as the Committee may determine.

 

(e)                                  Dividend
Equivalent Rights – The Committee may grant Dividend Equivalent Rights
either alone or in connection with the grant of a Stock Option.  A Dividend Equivalent Right means the right
to receive a payment in respect of one share of Common Stock (whether or not
subject to a Stock Option) equal to the amount of any dividend paid in respect
of one share of Common Stock held by a shareholder in the Company.  Each Dividend Equivalent Right shall be
subject to such terms as the Committee may determine.

 

6.                                       Limitations
and Conditions

 

(a)                                  The
number of Shares available for Grants under this Plan shall be 510,230 unless
restricted by applicable law.  Shares
related to Grants that are forfeited, terminated, canceled or expire
unexercised, shall immediately become available for new Grants.

 

(b)                                 No
Grants shall be made under the Plan beyond ten years after the effective date
of the Plan, but the terms of Grants made on or before the expiration of the
Plan may extend beyond such expiration. 
At the time a Grant is made or amended or the terms or conditions of a
Grant are changed in accordance with the terms of the Plan or the Grant
Agreement, the Committee may provide for limitations or conditions on such
Grant.

 

 

(c)                                  Nothing
contained herein shall affect the right of the Company or any of its
Subsidiaries to terminate any Participant’s employment at any time or for any
reason.

 

(d)                                 Other
than as specifically provided in the Form of Management Stockholder’s Agreement
attached hereto as Exhibit A, no benefit under the Plan shall be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to do so shall be void.  No such benefit shall, prior to receipt
thereof by the Participant, be in any manner liable for or subject to the
debts, contracts, liabilities, engagements, or torts of the Participant.

 

(e)                                  Participants
shall not be, and shall not have any of the rights or privileges of,
stockholders of the Company in respect of any Shares purchasable in connection
with any Grant unless and until certificates representing any such Shares have
been issued by the Company to such Participants (or book entry representing
such shares has been made and such Shares have been deposited with the
appropriate registered book-entry custodian).

 

(f)                                    No
election as to benefits or exercise of any Grant may be made during a
Participant’s lifetime by anyone other than the Participant except by a legal
representative appointed for or by the Participant.

 

(g)                                 Absent
express provisions to the contrary, any Grant under this Plan shall not be
deemed compensation for purposes of computing benefits or contributions under
any retirement plan of the Company or its Subsidiaries and shall not affect any
benefits under any other benefit plan of any kind now or subsequently in effect
under which the availability or amount of benefits is related to level of
compensation.  This Plan is not a “Retirement
Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of
1974, as amended.

 

(h)                                 Unless
the Committee determines otherwise, no benefit or promise under the Plan shall
be secured by any specific assets of the Company or any of its Subsidiaries,
nor shall any assets of the Company or any of its Subsidiaries be designated as
attributable or allocated to the satisfaction of the Company’s obligations
under the Plan.

 

7.                                       Transfers
and Leaves of Absence

 

For purposes of the Plan, unless the Committee determines otherwise:
(a) a transfer of a Participant’s employment without an intervening period of
separation among the Company and any Subsidiary (or among any Subsidiaries)
shall not be deemed a termination of employment, and (b) a Participant who is
granted in writing a leave of absence or who is entitled to a statutory leave
of absence shall be deemed to have remained in the employ of the Company (and
any Subsidiary) during such leave of absence.

 

8.                                       Adjustments

 

In the event of any change in the outstanding Common Stock by reason of
a stock split, spin-off, stock combination, reclassification, recapitalization,
liquidation, dissolution, reorganization, merger, Change in Control, or other
event affecting the capital stock of the Company, the Committee may adjust
appropriately (a) the number and kind of shares subject to

 

 

the Plan and available for or covered by Grants and (b) share prices
related to outstanding Grants, and make such other revisions to outstanding
Grants as it deems, in good faith, are equitably required (including, without
limitation, to the exercise price of Stock Options).

 

9.                                       Merger,
Consolidation, Exchange, Acquisition, Liquidation or Dissolution

 

In its absolute discretion, acting in good faith, and on such terms and
conditions as it deems appropriate, coincident with or after the grant of any
Grant, the Committee may provide that such Grant cannot be exercised after the
amalgamation, merger or consolidation of the Company with or into another
corporation, the exchange of all or substantially all of the assets of the
Company for the securities of another corporation, the acquisition by another
corporation of 80% or more of the Company’s then outstanding shares of voting
stock or the recapitalization, reorganization, reclassification, liquidation,
dissolution, or other event affecting the capital stock of the Company, and the
Committee shall, on such terms and conditions as it deems appropriate, acting
in good faith, also provide, either by the terms of such Grant or by a
resolution adopted prior to the occurrence of such amalgamation, merger,
consolidation, exchange, acquisition, recapitalization, reorganization,
reclassification, liquidation, dissolution or other event affecting the capital
stock of the Company, that, after written notice to all affected Participants
and for a reasonable period of time prior to such event, such Grant shall be
exercisable as to any Shares subject thereto which is being made unexercisable
after any such event, notwithstanding anything to the contrary herein (but
subject to the provisions of Section 6(b)) and that, upon the occurrence
of such event, such Grant shall terminate and be of no further force or effect;
provided, however, that the Committee may also provide, in its
absolute discretion, that even if the Grant shall remain exercisable after any
such event, from and after such event, any such Grant shall be exercisable only
for the kind and amount of securities and/or other property, or the cash
equivalent thereof (as determined by the Committee in good faith), receivable
as a result of such event by the holder of a number of Shares for which such
Grant could have been exercised immediately prior to such event.

 

10.                                 Amendment
and Termination

 

(a)                                  The
Committee shall have the authority to make such amendments to any terms and
conditions applicable to outstanding Grants as are consistent with this Plan
provided that no such action shall modify any Grant in a manner adverse to the
Participant without the Participant’s consent except as such modification is
provided for or contemplated in the terms of the Grant or this Plan (except
that any adjustment that is made pursuant to Section 8 or 9 hereof shall
be made by the Committee reasonably and in good faith).

 

(b)                                 The
Board of Directors may amend, suspend or terminate the Plan except that no such
action, other than an action under Section 8 or 9 hereof, may be taken
which would, without stockholder approval, increase the aggregate number of
Shares available for Grants under the Plan, decrease the price of outstanding
Grants, change the requirements relating to the Committee, extend the term of
the Plan or be materially adverse to all Participants with respect to any outstanding
Grants.

 

 

11.                                 Governing
Law; International Participants

 

(a)                                  This
Plan shall be governed by and construed in accordance with the laws of Delaware
applicable therein.

 

(b)                                 With
respect to Participants who reside or work outside the United States of America
and who are not (and who are not expected to be) “covered employees” within the
meaning of Section 162(m) of the Code, the Committee may, in its sole
discretion, amend the terms of the Plan or Awards with respect to such
Participants in order to conform such terms with the requirements of local law
or to obtain more favorable tax or other treatment for a Participant, the
Company or an Affiliate.

 

12.                                 Withholding
Taxes

 

The Company shall have the right to deduct from any cash payment made
under the Plan any minimum federal, state or local income or other taxes
required by law to be withheld with respect to such payment.  It shall be a condition to the obligation of
the Company to deliver Shares upon the exercise of a Stock Option that the
Participant pay to the Company such amount as may be requested by the Company
for the purpose of satisfying any liability for such minimum withholding taxes.

 

13.                                 Effective
Date and Termination Dates

 

The Plan shall be effective on and as of the
date of its approval by the stockholders of the Company and shall terminate ten
years later, subject to earlier termination by the Board pursuant to Section 10.

 

Original Plan approved by
stockholders on October 4, 2004.

 

Amended and Restated Plan
approved by stockholders on January 6, 2005.

 

Second Amended and Restated
Plan approved by stockholders on March 14, 2005.Exhibit 10.31

 

FORM OF MANAGEMENT STOCKHOLDER’S AGREEMENT

 

This
Management Stockholder’s Agreement (this “Agreement”) is entered into as
of           
         , 200   (the “Effective
Date”) between Visant Holding Corp. (formerly known as Jostens Holding Corp.),
a Delaware corporation (the “Company”), and the undersigned person (the “Management
Stockholder”) (the Company and the Management Stockholder being hereinafter
collectively referred to as the “Parties”).  All capitalized terms not immediately defined
are hereinafter defined in Section 7(b) of this Agreement or in the Option
Plan (as such term is defined below).

 

WHEREAS,
pursuant to the Contribution Agreement, dated as of July 21, 2004 (the “Contribution
Agreement”), between the Company and Fusion Acquisition LLC, a Delaware
limited liability company (“Fusion”), (the Closing thereunder having
occurred on October 4, 2004), Fusion has received in exchange for the
contribution (the “Contribution”) of the capital stock of AHC I
Acquisition Corporation and Von Hoffmann Holdings Inc. (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 (the date of such Contribution, the “Closing Date);

 

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 Fusion, 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,
in connection with the Contribution, the Management Stockholder has been
selected by the Company to be permitted to contribute to the Company cash in
exchange for shares of Class A Common Stock;

 

WHEREAS,
the Management Stockholder has been selected by the Company, as of the date
hereof, to receive an option to purchase shares of Class A Common Stock (the “Option”)
pursuant to the terms set forth below and the terms of the Amended and Restated
2004 Stock Option Plan for Key Employees of the Company and Its Subsidiaries
(the “Option Plan”) and the Stock Option Agreement dated as of the date
hereof, entered into by and between the Company and the Management Stockholder
(the “Stock Option Agreement”); and

 

WHEREAS, this
Agreement is one of several other agreements (“Other Management Stockholders’
Agreements”) which in the future will be entered into between the Company
and other individuals who are or will be key employees of the Company or one of
its subsidiaries (collectively, the “Other Management Stockholders”).

 

NOW THEREFORE,
to implement the foregoing and in consideration of the grant of Options and of
the mutual agreements contained herein, the Parties agree as follows:

 

 

1.                                       Issuance of Purchased Stock;
Options 

 

(a)                                  Subject to the terms and
conditions hereinafter set forth, the Management Stockholder hereby subscribes
for and shall purchase, as of the Effective Date, and the Company shall issue
and deliver to the Management Stockholder as of the Effective Date, [     ]
shares of Class A Common Stock, at a per share purchase price of $96.10401 (the
“Base Price”), which price is equal to the effective per share purchase
price paid by Fusion for the shares of the Company (all such shares acquired by
the Management Stockholder, the “Purchased Stock”).  The aggregate purchase price for all shares
of the Purchased Stock is $[     ].

 

(b)                                 Subject to the terms and
conditions hereinafter set forth and as set forth in the Option Plan, as of the
Effective Date the Company is issuing to the Management Stockholder an Option
to acquire shares of Class A Common Stock, at an initial exercise price equal
to the Base Price, and the Parties shall execute and deliver to each other
copies of the Stock Option Agreement concurrently with the issuance of the
Option.

 

(c)                                  The Company shall have no
obligation to sell any Purchased Stock to any person who (i) is a resident or
citizen of a state or other jurisdiction in which the sale of the Common Stock to
him or her would constitute a violation of the securities or “blue sky” laws of
such jurisdiction or (ii) is not an employee of the Company or any of its
subsidiaries on the date hereof.

 

2.                                       Management Stockholder’s
Representations, Warranties and Agreements.

 

(a)                                  The Management Stockholder
agrees and acknowledges that he will not, directly or indirectly, offer,
transfer, sell, assign, pledge, hypothecate or otherwise dispose of (any of the
foregoing acts being referred to herein as a “transfer”) any shares of
Purchased Stock and, at the time of exercise, the Common Stock issuable upon
exercise of the Options (“Option Stock”; together with all Purchased
Stock and any other Common Stock otherwise acquired and/or held by the
Management Stockholder Entities, “Stock”), except as otherwise provided
for herein.  If the Management
Stockholder is a Rule 405 Affiliate, the Management Stockholder also agrees and
acknowledges that he will not transfer any shares of the Stock unless:

 

(i)  the transfer is pursuant to an effective
registration statement under the Securities Act of 1933, as amended, and the
rules and regulations in effect thereunder (the “Act”), and in
compliance with applicable provisions of state securities laws; or

 

(ii)  (A) counsel for the Management Stockholder
(which counsel shall be reasonably acceptable to the Company) shall have
furnished the Company with an opinion, reasonably satisfactory in form and
substance to the Company, that no such registration is required because of the
availability of an exemption from registration under the Act and (B) if
the Management Stockholder is a citizen or resident of any country other than
the United States, or the Management Stockholder desires to effect any transfer
in any such country, counsel for the Management Stockholder (which counsel
shall be reasonably satisfactory to the Company) shall have furnished the
Company with an opinion or other advice reasonably satisfactory in form and
substance

 

2

 

to the Company to the effect that such
transfer will comply with the securities laws of such jurisdiction.

 

Notwithstanding
the foregoing, the Company acknowledges and agrees that any of the following
transfers are deemed to be in compliance with the Act and this Agreement
(including without limitation any restrictions or prohibitions herein) and no
opinion of counsel is required in connection therewith: (x) a transfer
made pursuant to Section 3, 4, 5, 6 or 9 hereof, (y) a transfer upon
the death or Permanent Disability of the Management Stockholder to the
Management Stockholder’s Estate or a transfer to the executors, administrators,
testamentary trustees, legatees or beneficiaries of a person who has become a
holder of Stock in accordance with the terms of this Agreement; provided
that it is expressly understood that any such transferee shall be bound by the
provisions of this Agreement, and (z) a transfer made after the Effective
Date in compliance with the federal securities laws to a Management Stockholder’s
Trust, provided that such transfer is made expressly subject to this
Agreement and that the transferee agrees in writing to be bound by the terms
and conditions hereof.

 

(b)                                 The certificate (or
certificates) representing the Stock shall bear the following legend:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE
MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE
DISPOSED OF UNLESS SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR
OTHER DISPOSITION COMPLIES WITH THE PROVISIONS OF THE MANAGEMENT STOCKHOLDER’S
AGREEMENT DATED AS OF              
       , 2005 BETWEEN VISANT HOLDING CORP.
(THE “COMPANY”) AND THE MANAGEMENT STOCKHOLDER NAMED ON THE FACE HEREOF (A COPY
OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY).”

 

(c)                                  The Management Stockholder
acknowledges that he has been advised that (i) a restrictive legend in the
form heretofore set forth shall be placed on the certificates representing the
Stock and (ii) a notation shall be made in the appropriate records of the
Company indicating that the Stock is subject to restrictions on transfer and
appropriate stop transfer restrictions will be issued to the Company’s transfer
agent with respect to the Stock.  If the
Management Stockholder is a Rule 405 Affiliate, the Management Stockholder
also acknowledges that (1) the Stock must be held indefinitely and the
Management Stockholder must continue to bear the economic risk of the
investment in the Stock unless it is subsequently registered under the Act or
an exemption from such registration is available, (2) when and if shares
of the Stock may be disposed of without registration in reliance on
Rule 144 of the rules and regulations promulgated under the Act, such
disposition can be made only in limited amounts in accordance with the terms
and conditions of such Rule and (3) if the Rule 144 exemption is not
available, public sale without registration will require compliance with some
other exemption under the Act.

 

(d)                                 If any shares of the Stock are
to be disposed of in accordance with Rule 144 under the Act or otherwise,
the Management Stockholder shall promptly notify the

 

3

 

Company of such intended disposition and shall deliver to the Company
at or prior to the time of such disposition such documentation as the Company
may reasonably request in connection with such sale and, in the case of a
disposition pursuant to Rule 144, shall deliver to the Company an executed
copy of any notice on Form 144 required to be filed with the SEC.

 

(e)                                  The Management Stockholder
agrees that, if any shares of the Stock are offered to the public pursuant to
an effective registration statement under the Act (other than registration of
securities issued on Form S-8, S-4 or any successor or similar form), the
Management Stockholder will not effect any public sale or distribution of any
shares of the Stock not covered by such registration statement from the time of
the receipt of a notice from the Company that the Company has filed or
imminently intends to file such registration statement to, or within
180 days (or such shorter period as may be consented to by the managing
underwriter or underwriters) in the case of the initial Public Offering and
ninety (90) days (or in an underwritten offering such shorter period as
may be consented to by the managing underwriter or underwriters, if any) in the
case of any other Public Offering after, the effective date of such
registration statement, unless otherwise agreed to in writing by the Company.

 

(f)                                    The Management Stockholder
represents and warrants that (i) with respect to the Stock, he has
received and reviewed the available information relating to the Stock,
including having received and reviewed the documents related thereto, certain
of which documents set forth the rights, preferences and restrictions relating
to the Options and the Stock underlying the Options and (ii) he has been
given the opportunity to obtain any additional information or documents and to
ask questions and receive answers about such information, the Company and the
business and prospects of the Company which he deems necessary to evaluate the
merits and risks related to his investment in the Stock and to verify the
information contained in the information received as indicated in this Section 2(f),
and he has relied solely on such information.

 

(g)                                 The Management Stockholder
further represents and warrants that (i) his financial condition is such
that he can afford to bear the economic risk of holding the Stock for an
indefinite period of time and has adequate means for providing for his current
needs and personal contingencies, (ii) he can afford to suffer a complete
loss of his or her investment in the Stock, (iii) he understands and has
taken cognizance of all risk factors related to the purchase of the Stock and
(iv) his knowledge and experience in financial and business matters are
such that he is capable of evaluating the merits and risks of his purchase of
the Stock as contemplated by this Agreement.

 

3.                                       Transferability of Stock.  The Management Stockholder agrees that he
will not transfer any shares of the Stock at any time during the period
commencing on the Effective Date and ending on the fifth anniversary of the
Effective Date; provided, however, that the Management
Stockholder may transfer shares of Stock during such time pursuant to one of
the following exceptions: (a) transfers permitted by Section 5 or 6;
(b) transfers permitted by clauses (y) and (z) of Section 2(a);
(c) a sale of shares of Common Stock pursuant to an effective registration
statement under the Act filed by the Company, including without limitation a
sale pursuant to Section 9 (excluding any registration on Form S-8,
S-4 or any successor or similar form); (d) transfers permitted pursuant to
the Sale Participation Agreement (as defined in Section 7); or
(e) transfers permitted by the Board. 
No transfer of any such shares in violation

 

4

 

hereof shall be made or recorded on the books of the Company and any
such transfer shall be void ab initio and of no effect.

 

4.                                       Right of First Refusal.  (a) 
If, at any time after the fifth anniversary of the Effective Date and
prior to the date of consummation of a Qualified Public Offering, the
Management Stockholder receives a bona fide offer to purchase any or all of his
Stock (the “Third Party Offer”) from a third party (which, for the
avoidance of doubt, shall not include any transfers pursuant to
clauses (y) and (z) of Section 2(a)) (the “Offeror”), which
the Management Stockholder wishes to accept, the Management Stockholder shall
cause the Third Party Offer to be reduced to writing and shall notify the
Company in writing of his wish to accept the Third Party Offer.  The Management Stockholder’s notice to the
Company shall contain an irrevocable offer to sell such Stock to the Company
(in the manner set forth below) at a purchase price equal to the price
contained in, and on the same terms and conditions of, the Third Party Offer,
and shall be accompanied by a copy of the Third Party Offer (which shall
identify the Offeror).  At any time
within fifteen (15) days after the date of the receipt by the Company of
the Management Stockholder’s notice, the Company shall have the right and
option to purchase, or to arrange for a third party to purchase, all (but not
less than all) of the shares of Stock covered by the Third Party Offer,
pursuant to Section 4(b).

 

(b)                                 The Company shall have the right
and option to purchase, or to arrange for a third party to purchase, all of the
shares of Stock covered by the Third Party Offer at the same price and on
substantially the same terms and conditions as the Third Party Offer (or, if
the Third Party Offer includes any consideration other than cash, then at the
sole option of the Company, at the equivalent all cash price, determined in
good faith by the Company’s Board), by delivering a certified bank check or
checks in the appropriate amount (or by wire transfer of immediately available
funds, if the Management Stockholder Entities provide to the Company wire
transfer instructions) (and any such non-cash consideration to be paid) to the
Management Stockholder at the principal office of the Company against delivery
of certificates or other instruments representing the shares of Stock so
purchased, appropriately endorsed by the Management Stockholder.  If at the end of the 15-day period, the
Company has not tendered the purchase price for such shares in the manner set
forth above, the Management Stockholder may, during the succeeding 60-day
period, sell not less than all of the shares of Stock covered by the Third
Party Offer, to the Offeror on terms no less favorable to the Management
Stockholder than those contained in the Third Party Offer.  Promptly after such sale, the Management
Stockholder shall notify the Company of the consummation thereof and shall
furnish such evidence of the completion and time of completion of such sale and
of the terms thereof as may reasonably be requested by the Company.  If, at the end of sixty (60) days
following the expiration of the 15-day period during which the Company is
entitled hereunder to purchase the Stock, the Management Stockholder has not
completed the sale of such shares of the Stock as aforesaid, all of the
restrictions on sale, transfer or assignment contained in this Agreement shall
again be in effect with respect to such shares of the Stock.

 

(c)                                  Notwithstanding anything in this
Agreement to the contrary, this Section 4 shall terminate and be of no
further force or effect upon the occurrence of a Change in Control.

 

5

 

5.                                       The Management Stockholder’s
Right to Resell Stock and Options to the Company.

 

(a)                                  Except as otherwise provided
herein, if, prior to the later of the fifth anniversary of the Effective Date
and a Qualified Public Offering, the Management Stockholder’s employment with
the Company (or any of its Subsidiaries) terminates as a result of the death or
Permanent Disability of the Management Stockholder, then the applicable
Management Stockholder Entity, shall, for 120 days (the “Put Period”)
following the date of such termination for death or Permanent Disability, have
the right to:

 

(i)  With respect to the Stock, sell to the
Company, and the Company shall be required to purchase, on one occasion, all of
the shares of Stock then held by the applicable Management Stockholder Entities
at a per share price equal to the Fair Market Value Per Share (the “Section 5
Repurchase Price”); and

 

(ii)  With respect to any outstanding Options, sell
to the Company, and the Company shall be required to purchase, on one occasion,
all of the exercisable Options then held by the applicable Management
Stockholder Entities for an amount equal to the product of (x) the excess,
if any, of the Section 5 Repurchase Price over the Option Exercise Price
and (y) the number of Exercisable Option Shares, which Options shall be
terminated in exchange for such payment. 
In the event the foregoing Option Excess Price is zero or a negative
number, all outstanding exercisable stock options granted to the Management
Stockholder under the Option Plan shall be automatically terminated without any
payment in respect thereof.  In the event
that the Management Stockholder Entities do not exercise the foregoing rights,
all exercisable but unexercised Options shall terminate pursuant to the terms
of Section 3.2(b) of the Stock Option Agreement.  All unexercisable Options held by the
applicable Management Stockholder Entities shall terminate without payment
immediately upon termination of employment.

 

(b)                                 In the event the applicable
Management Stockholder Entities intend to exercise their rights pursuant to Section 5(a),
such Management Stockholder Entities shall send written notice to the Company,
at any time during the Put Period, of their intention to sell shares of Stock
in exchange for the payment referred to in Section 5(a)(i) and/or to sell
such Options in exchange for the payment referred to in Section 5(a)(ii)
and shall indicate the number of shares of Stock to be sold and the number of
Options to be sold with payment in respect thereof (the “Redemption Notice”).  The completion of the purchases shall take
place at the principal office of the Company on the tenth business day after
the giving of the Redemption Notice.  The
applicable Repurchase Price (including any payment with respect to the Options
as described above) shall be paid by delivery to the applicable Management
Stockholder Entities of a certified bank check or checks in the appropriate
amount payable to the order of each of the applicable Management Stockholder
Entities (or by wire transfer of immediately available funds, if the Management
Stockholder Entities provide to the Company wire transfer instructions),
against delivery of certificates or other instruments representing the Stock so
purchased and appropriate documents cancelling the Options so terminated
appropriately endorsed or executed by the applicable Management Stockholder
Entities or any duly authorized representative.

 

6

 

(c)                                  Notwithstanding anything in Section 5(a)
to the contrary and subject to Section 10(a), if there exists and is
continuing a default or an event of default on the part of the Company or any
subsidiary of the Company under any loan, guarantee or other agreement under
which the Company or any subsidiary of the Company has borrowed money or if the
repurchase referred to in Section 5(a) would result in a default or an
event of default on the part of the Company or any subsidiary of the Company
under any such agreement or if a repurchase would not be permitted under Section 170
of the Delaware General Corporation Law (the “DGCL”) or would otherwise
violate the DGCL (or if the Company reincorporates in another state, the
business corporation law of such state) (each such occurrence being an “Event”),
the Company shall not be obligated to repurchase any of the Stock or the
Options from the applicable Management Stockholder Entities until the first
business day which is ten (10) calendar days after all of the foregoing Events
have ceased to exist (the “Repurchase Eligibility Date”); provided,
however, that (i) the number of shares of Stock subject to
repurchase under this Section 5(c) shall be that number of shares of
Stock, and (ii) in the case of a repurchase pursuant to Section 5(a)(ii),
the number of Exercisable Option Shares for purposes of calculating the Option
Excess Price payable under this Section 5(c) shall be the number of
Exercisable Option Shares, in each case as specified in the Redemption Notice
and held by the applicable Management Stockholder Entities at the time of
delivery of the Redemption Notice in accordance with Section 5(b)
hereof.  All Options exercisable as of
the date of a Redemption Notice, in the case of a repurchase pursuant to Section 5(a),
shall continue to be exercisable until the actual repurchase of such Options
pursuant to such Redemption Notice, provided that to the extent any
Options are exercised after the date of such Redemption Notice, the number of
Exercisable Option Shares for purposes of calculating the Option Excess Price
shall be reduced accordingly. 
Notwithstanding the foregoing and subject to Section 6(d), if an
Event exists and is continuing for ninety (90) days, the Management
Stockholder Entities shall be permitted by written notice to rescind any
Redemption Notice.

 

(d)                                 Effect of Change in Control.  Notwithstanding anything in this Agreement to
the contrary, except for any payment obligation of the Company which has arisen
prior to the occurrence of a Change of Control, this Section 5 shall
terminate and be of no further force or effect upon the occurrence of such
Change in Control.

 

6.                                           The Company’s Option to Purchase
Stock and Options of Management Stockholder Upon Certain Terminations of
Employment.

 

(a)                                  Termination
for Cause by the Company, Termination by the Management Stockholder without
Good Reason (other than due to his death or Permanent Disability) and other
Call Events.  If, prior to the fifth anniversary of the
Effective Date, (i) the Management Stockholder’s active employment with
the Company (and/or, if applicable, its subsidiaries) is terminated by the
Company (and/or, if applicable, its Subsidiaries) for Cause, (ii) the
Management Stockholder’s active employment with the Company (and/or, if
applicable, its Subsidiaries) is terminated by the Management Stockholder
without Good Reason (other than due to his death or Permanent Disability),
(iii) the beneficiaries of a Management Stockholder’s Trust shall include
any person or entity other than the Management Stockholder, his spouse (or
ex-spouse) or his lineal descendants (including adopted children) or
(iv) the Management Stockholder shall otherwise effect a transfer of any
of the Stock other than as permitted in this Agreement (other than as may be
required by applicable law or an order of a court having

 

7

 

competent jurisdiction) after notice from the Company of such
impermissible transfer and a reasonable opportunity to cure such transfer
(each, a “Section 6(a) Call Event”):

 

(A)                              With
respect to the Stock, the Company may purchase all or any portion of the shares
of the Stock then held by the applicable Management Stockholder Entities at a
per share purchase price equal to the lesser of (x) the Base Price and
(y) the Book Value Per Share (or after a Public Offering, Market Value Per
Share) (any such applicable repurchase price, the “Section 6(a)
Repurchase Price”); and

 

(B)                                With
respect to the Options, all Options (whether or not then exercisable) held by
the applicable Management Stockholder Entities will terminate immediately
without payment in respect thereof.

 

(b)                                 Termination
without Cause by the Company (other than due to his death or Permanent
Disability), and Termination by the Management Stockholder with Good Reason.  Except as otherwise provided herein, if,
prior to the fifth anniversary of the Effective Date, (i) the Management
Stockholder’s active employment with the Company (and/or, if applicable, its
Subsidiaries) is terminated by the Company (and/or, if applicable, its
Subsidiaries) without Cause (other than due to his death or Permanent
Disability), or (ii) the Management Stockholder’s active employment with
the Company (and/or, if applicable, its Subsidiaries) is terminated by the
Management Stockholder with Good Reason, (each, a “Section 6(b) Call
Event”):

 

(A)                              With
respect to the Stock, the Company may purchase all or any portion of the shares
of such Stock then held by the applicable Management Stockholder Entities at a
per share purchase price equal to the Fair Market Value Per Share; and

 

(B)                                With
respect to the Options, the Company may purchase all or any portion of the
exercisable Options held by the applicable Management Stockholder Entities for
an amount equal to the product of (x) the excess, if any, of the price
equal to the Fair Market Value Per Share over the Option Exercise Price and
(y) the number of Exercisable Option Shares, which Options shall be
terminated in exchange for such payment. 
In the event the foregoing Option Excess Price is zero or a negative
number, all outstanding exercisable stock options granted to the Management
Stockholder under the Option Plan shall be automatically terminated without any
payment in respect thereof.  In the event
that the Company does not exercise the foregoing rights, all exercisable but
unexercised Options shall terminate pursuant to the terms of Section 3.2(d)
or (e), as the case may be, of the Stock Option Agreement.  All unexercisable Options held by the
applicable Management Stockholder Entities shall also terminate without payment
immediately upon termination of employment.

 

(c)                                  Termination
for Death or Disability.  Except as otherwise provided herein, if,
prior to the fifth anniversary of the Effective Date, the Management
Stockholder’s employment with the Company (and/or, if applicable, its
Subsidiaries) is terminated as a result of the death or Permanent Disability of
the Management Stockholder (each a “Section 6(c) Call Event”), then
the Company may:

 

8

 

(A)                              With
respect to the Stock, purchase all or any portion of the shares of Stock then
held by the applicable Management Stockholder Entities at a per share price
equal to the Fair Market Value Per Share; and

 

(B)                                With
respect to the Options, purchase all or any portion of the exercisable Options
for an amount equal to the product of (x) the excess, if any, of the Fair
Market Value Per Share over the Option Exercise Price and (y) the number
of Exercisable Option Shares, which Options shall be terminated in exchange for
such payment.  In the event the foregoing
Option Excess Price is zero or a negative number, all outstanding exercisable
stock options granted to the Management Stockholder under the Option Plan shall
be automatically terminated without any payment in respect thereof.  In the event that the Company does not
exercise the foregoing rights all exercisable but unexercised Options shall
terminate pursuant to the terms of Section 3.2(b) of the Stock Option
Agreement.  All unexercisable Options held
by the applicable Management Stockholder Entities shall also terminate without
payment immediately upon termination of employment.

 

(d)                                 Call Notice.  The Company shall have a period of
sixty (60) days from the later of (i) sixty (60) days from the
date of any Call Event (or, if later, with respect to a Section 6(a) Call
Event, the date after discovery of, and the applicable cure period for, an
impermissible transfer constituting a Section 6(a) Call Event) and
(ii) thirty (30) days from the date the Management Stockholder
rescinds a Redemption Notice pursuant to the last sentence of Section 5(c),
in which to give notice in writing to the Management Stockholder of its
election to exercise its rights and obligations pursuant to this Section 6
(“Repurchase Notice”).  The
completion of the purchases pursuant to the foregoing shall take place at the
principal office of the Company on the tenth business day after the giving of
the Call Notice.  The applicable
Repurchase Price (including any payment with respect to the Options as
described in this Section 6) shall be paid by delivery to the applicable
Management Stockholder Entities of a certified bank check or checks in the
appropriate amount payable to the order of each of the applicable Management
Stockholder Entities (or by wire transfer of immediately available funds, if
the Management Stockholder Entities provide to the Company wire transfer
instructions) against delivery of certificates or other instruments
representing the Stock so purchased and appropriate documents cancelling the
Options so terminated, appropriately endorsed or executed by the applicable
Management Stockholder Entities or any duly authorized representative.

 

(e)                                  Delay of Call.  Notwithstanding any other provision of this Section 6
to the contrary and subject to Section 10(a), if there exists and is
continuing any Event, the Company shall delay the repurchase of any of the
Stock or the Options (pursuant to a Call Notice timely given in accordance with
Section 6(d) hereof) from the applicable Management Stockholder Entities
until the Repurchase Eligibility Date; provided, however, that
(i) the number of shares of Stock subject to repurchase under this Section 6
shall be that number of shares of Stock, and (ii) in the case of a
repurchase pursuant to Section 6(b) or 6(c), the number of Exercisable
Option Shares for purposes of calculating the Option Excess Price payable under
this Section 6 shall be the number of Exercisable Option Shares, in each
case held by the applicable Management Stockholder Entities at the time of
delivery of (and as set forth in) a Call Notice in accordance with Section 6(d)
hereof.  All Options exercisable as of
the date of a Repurchase Notice, in the case of a repurchase pursuant to Section 6(b)
or 6(c), shall continue to be exercisable until the repurchase of such Options
pursuant to such Call Notice, provided that to

 

9

 

the extent that any Options are exercised after the date of such Call
Notice, the number of Exercisable Option Shares for purposes of calculating the
Option Excess Price shall be reduced accordingly.  Notwithstanding the foregoing, if an Event
exists and is continuing for ninety (90) days, the Management Stockholder
Entities shall be permitted by written notice to cause the Company to rescind
any Repurchase Notice but the Company shall have another thirty (30) days
from the date the Event ceases to exist to give another Repurchase Notice on
the terms applicable to the first Repurchase Notice.

 

(f)                                    Effect of Change in Control.  Notwithstanding anything in this Agreement to
the contrary, except for any payment obligation of the Company which has arisen
prior to the occurrence of a Change of Control, this Section 6 shall
terminate and be of no further force or effect upon the occurrence of such
Change in Control.

 

(g)                                 Additional Vesting of
Options.  In the event that the Management
Stockholder exercised his or her rights pursuant to Section 5(a) or the
Company exercised its rights pursuant to Section 6(a), 6(b) or 6(c), and
subsequent to such purchase of the Shares and Options, as provided for in
Sections 5 and 6, an additional percentage of the Management Stockholder’s
Performance Option (as defined in the Stock Option Agreement) becomes
exercisable pursuant to Section 3.1(a)(ii)(B) of the Stock Option
Agreement, then such Performance Option shall be cancelled upon payment to the
Management Stockholder of an amount equal to the product of (x) the excess, if
any, of the applicable repurchase price for such Performance Option, as
provided for in Sections 5 and 6, over the Option Exercise Price and (y) the
additional number of shares of Common Stock that could be purchased by the
Management Stockholder upon exercise of the additional percentage of the
Performance Option vested pursuant to Section 3.1(a)(ii)(B) of the Stock
Option Agreement.

 

7.                                       Adjustment of Repurchase Price;
Definitions.

 

(a)                                  Adjustment of
Repurchase Price.  In determining the applicable repurchase
price of the Stock and Options, as provided for in Sections 5 and 6,
above, appropriate adjustments shall be made for any stock dividends, splits,
combinations, recapitalizations or any other adjustment in the number of
outstanding shares of Stock in order to maintain, as nearly as practicable, the
intended operation of the provisions of Sections 5 and 6.

 

(b)                                 Definitions.  All capitalized terms used in this Agreement
and not defined herein shall have such meaning as such terms are defined in the
Option Plan.  Terms used herein and as
listed below shall be defined as follows:

 

“Act” shall
have the meaning set forth in Section 2(a)(i) hereof.

 

“Agreement”
shall have the meaning set forth in the introductory paragraph.

 

“Base Price”
shall have the meaning set forth in Section 1(a) hereof.

 

“Board” shall mean the board of directors of the
Company.

 

“Book Value Per Share” shall mean (a) the
Base Price plus (b) the quotient of (A)(i) the aggregate net
income of the Company from and after the Closing Date (as decreased by any net

 

10

 

losses from
and after the Closing Date) excluding any one time costs and expenses charged
to income associated with the Closing and any related transactions plus
(ii) the aggregate dollar amount contributed to (or credited to common
stockholders’ equity of) the Company after the Closing Date as equity of the
Company (including consideration that would be received upon the exercise of
all outstanding stock options and other rights to acquire Common Stock and the
conversion of all securities convertible into Common Stock and other stock
equivalents) plus (iii) to the extent reflected as deductions to
Book Value Per Share in clause (i) above, unusual or other items
recognized by the Company (including, without limitation, extraordinary
charges, and one time or accelerated write-offs of good will, net of the
related impact on the provision for income taxes), in each case, if and to the
extent determined in good faith by the Board, plus (iv) the
amortization of purchase accounting adjustments occurring as a result of the
Closing, minus (v) to the extent reflected as additions to Book
Value Per Share in clause (i) above, unusual or other items recognized by
the Company, in each case, if and to the extent determined in good faith by the
Board, minus (vi) the aggregate dollar amount of any dividends paid
by the Company after the Closing Date, divided  by (B) the
sum of the number of shares of Common Stock then outstanding and the number of
shares of Common Stock issuable upon the exercise of all outstanding stock
options and other rights to acquire Common Stock.  The items referred to in the calculations set
forth in clauses (b)(A)(i) through (vi) of the immediately preceding
sentence shall be determined in good faith, and to the extent possible, in accordance
with generally accepted accounting principles applied on a basis consistent
with any prior periods as reflected in the consolidated financial statements of
the Company.

 

“Call Events” shall mean, collectively, Section 6(a)
Call Events, Section 6(b) Call Events, and Section 6(c) Call Events.

 

“Call Notice” shall have the meaning set forth in Section 6(d)
hereof.

 

“Cause” shall
mean “Cause” as such term may be defined in any employment agreement or
change-in-control agreement in effect at the time of termination between the
Management Stockholder and the Company or any of its subsidiaries or
Rule 405 Affiliates; or, if there is no such employment or change
in-control agreement, “Cause” shall mean (i) the Management Stockholder’s
willful and continued failure to perform his or her material duties with
respect to the Company or it subsidiaries which continues beyond ten (10)
days after a written demand for substantial performance is delivered to the
Management Stockholder by the Company (the “Cure Period”), (ii) the
willful or intentional engaging by the Management Stockholder in conduct that
causes material and demonstrable injury, monetarily or otherwise, to the
Company, the Investors or their respective Rule 405 Affiliates,
(iii) commission of a crime constituting (A) a felony under the laws
of the United States or any state thereof or (B) a misdemeanor involving
moral turpitude, or (iv) a material breach of by the Management
Stockholder of this Agreement or other agreements, including, without
limitation, engaging in any action in breach of restrictive covenants, herein
or therein, that continues beyond the Cure Period (to the extent that, in the
Board’s reasonable judgment, such breach can be cured).

 

“Change in
Control” means (i) the sale (in one transaction or a series of
transactions) of all or substantially all of the assets of the Company to an
Unaffiliated Person; (ii) a sale (in one transaction or a series of
transactions) resulting in more than 50% of the voting stock of the Company
being held by an Unaffiliated Person; (iii) a merger, consolidation,
recapitalization or

 

11

 

reorganization
of the Company with or into another Unaffiliated Person; if and only if any such event listed in
clauses (i) through (iii) above results in the inability of the Investors,
or any member or members of the Investors, to designate or elect a majority of
the Board (or the board of directors of the resulting entity or its parent
company).  For purposes of this
definition, the term “Unaffiliated Person” means any Person or Group who
is not (x) an Investor or any member of the Investors, (y) a
Rule 405 Affiliate of any Investor or any member of any Investor, or
(z) an entity in which any Investor, or any member of any Investor holds,
directly or indirectly, a majority of the economic interests in such entity.

 

“Class A
Common Stock shall have the meaning set forth in the first “whereas” paragraph.

 

“Class C
Common Stock” shall have the meaning set forth in the first “whereas”
paragraph.

 

“Closing”
shall have the meaning set forth in the Contribution Agreement.

 

“Closing Date”
shall have the meaning set forth in the first “whereas” paragraph.

 

“Common Stock”
shall have the meaning set forth in the first “whereas” paragraph.

 

“Company”
shall have the meaning set forth in the introductory paragraph.

 

“Confidential
Information” shall mean all non-public information concerning trade secret,
know-how, software, developments, inventions, processes, technology, designs,
the financial data, strategic business plans or any proprietary or confidential
information, documents or materials in any form or media, including any of the
foregoing relating to research, operations, finances, current and proposed
products and services, vendors, customers, advertising and marketing, and other
non-public, proprietary, and confidential information of the Restricted Group.

 

“Contribution
Agreement” shall have the meaning set forth in the first “whereas” paragraph.

 

“Custody
Agreement and Power of Attorney” shall have the meaning set forth in Section 9(e)
hereof.

 

“DGCL” shall
have the meaning set forth in Section 5(c) hereof.

 

“DLJMB Funds”
shall have the meaning set forth in the second “whereas” paragraph.

 

“Event” shall
have the meaning set forth in Section 5(c) hereof.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended (or any successor section thereto).

 

12

 

“Exercisable
Option Shares” shall mean the shares of Common Stock that, at the Repurchase
Calculation Date, could be purchased by the Management Stockholder upon
exercise of his or her outstanding and exercisable Options.

 

“Fair Market
Value Per Share” shall mean the Market Value Per Share, or, if there has been
no Public Offering, the fair market value of the Common Stock as determined
(i) in the good faith discretion of the Board after consultation with
management of the Company and (ii) without any premiums for control or
discounts for minority interests or restrictions on transfer.

 

“Fusion” shall
have the meaning set forth in the first “whereas” paragraph.

 

“Good Reason”
shall mean “Good Reason” as such term may be defined in any employment
agreement or change-in-control agreement in effect at the time of termination
between the Management Stockholder and the Company or any of its subsidiaries
or Rule 405 Affiliates; or, if there is no such employment or
change-in-control agreement, “Good Reason” shall mean (i) a reduction in
the Management Stockholder’s base salary (other than a general reduction in
base salary that affects all members of senior management in substantially the
same proportions, provided that the Management Stockholder’s base salary
is not reduced by more than 10%); (ii) a substantial reduction in the
Management Stockholder’s duties and responsibilities; or (iii) a transfer
of the Management Stockholder’s primary workplace by more than fifty miles from
his workplace as of the Effective Date.

 

“Group” shall
mean “group,” as such term is used for purposes of Section 13(d) or 14(d)
of the Exchange Act.

 

“Investors”
shall have the meaning set forth in the second “whereas” paragraph.

 

“Management
Stockholder” shall have the meaning set forth in the introductory paragraph.

 

“Management
Stockholder Entities” shall mean the Management Stockholder’s Trust, the
Management Stockholder and the Management Stockholder’s Estate, collectively.

 

“Management
Stockholder’s Estate” shall mean the conservators, guardians, executors,
administrators, testamentary trustees, legatees or beneficiaries of the
Management Stockholder.

 

“Management
Stockholder’s Trust” shall mean a partnership, limited liability company,
corporation, trust or custodianship, the beneficiaries of which may include
only the Management Stockholder, his spouse (or ex-spouse) or his lineal
descendants (including adopted) or, if at any time after any such transfer
there shall be no then living spouse or lineal descendants, then to the
ultimate beneficiaries of any such trust or to the estate of a deceased
beneficiary.

 

“Market Value
Per Share” shall mean, on the Repurchase Calculation Date, the price per share
equal to (i) after a Public Offering but before a Qualified Public
Offering, (w) the average of the last sale price of the Common Stock on the
Repurchase Calculation Date on each stock exchange on which the Common Stock
may at the time be listed or, (x) if there shall have been no sales on any
such exchanges on the Repurchase Calculation Date on any given day, the

 

13

 

average of the
closing bid and asked prices of the Common Stock on each such exchange on the
Repurchase Calculation Date or, (y) if there is no such bid and asked
price on the Repurchase Calculation Date, the average of the closing bid and
asked prices of the Common Stock on the next preceding date when such bid and
asked price occurred or, (z) if the Common Stock shall not be so listed,
the closing sales price of the Common Stock as reported by NASDAQ on the
Repurchase Calculation Date in the over-the-counter market; and (ii) following
a Qualified Public Offering, the closing sale price of the Common Stock on the
Repurchase Calculation Date as reported on the primary exchange on which the
Common Stock is traded (or, if no such sale occurs on the Repurchase
Calculation Date, such closing sale price as was reported on the next preceding
date when such closing sale price occurred).

 

“Maximum
Repurchase Amount” shall have the meaning set forth in Section 10(a)
hereof.

 

 “Notice” shall have the meaning set forth in Section 9(b)
hereof.

 

“Offeror”
shall have the meaning set forth in Section 4(a) hereof.

 

“Option” shall
have the meaning set forth in the fourth “whereas” paragraph.

 

“Option Excess
Price” shall mean the aggregate amount paid or payable by the Company in
respect of Exercisable Option Shares, as determined pursuant to Section 5
or 6, as applicable.

 

“Option
Exercise Price” shall mean the then-current exercise price of the shares of
Common Stock covered by the applicable Option.

 

“Option Plan”
shall have the meaning set forth in the fourth “whereas” paragraph.

 

“Option Stock”
shall have the meaning set forth in Section 3(a) hereof.

 

“Other
Management Stockholders” shall have the meaning set forth in the sixth “whereas”
paragraph.

 

“Other
Management Stockholders’ Agreements” shall have the meaning set forth in the
seventh “whereas” paragraph.

 

“Parties”
shall have the meaning set forth in the introductory paragraph.

 

“Permanent
Disability” shall mean “Disability” or “Permanent Disability” (as applicable)
as such term may be defined in any employment agreement or change-in-control
agreement in effect at the time of termination between the Management
Stockholder and the Company or any of its subsidiaries or Rule 405
Affiliates; or, if there is no such employment or change-in-control agreement, “Permanent
Disability” shall mean the Management Stockholder 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 substantially all of the material elements
of the Management Stockholder’s duties with the Company or any subsidiary or
Rule 405 Affiliate thereof.  Any
question as to the existence of the Permanent Disability of the Management
Stockholder as to which the Management Stockholder

 

14

 

and the
Company cannot agree shall be determined in writing by a qualified independent
physician mutually acceptable to the Management Stockholder and the
Company.  If the Management Stockholder
and the Company 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 Permanent Disability made in writing to the Company
and the Management Stockholder shall be final and conclusive for all purposes
of this Agreement.

 

“Person” shall
mean “person,” as such term is used for purposes of Section 13(d) or 14(d)
of the Exchange Act.

 

“Piggyback
Registration Rights” shall have the meaning set forth in Section 9(a).

 

“Proposed
Registration” shall have the meaning set forth in Section 9(b) hereof.

 

“Public
Offering” shall mean the sale of shares of Common Stock to the public
subsequent to the date hereof pursuant to a registration statement under the
Act which has been declared effective by the SEC (other than a registration
statement on Form S-4, S-8 or any other similar form).

 

“Purchased
Stock” shall have the meaning set forth in the fifth “whereas” paragraph.

 

“Qualified
Public Offering” shall mean a Public Offering, which results in an active
trading market of 25% or more of the Common Stock.

 

“Registration
Rights Agreement” shall have the meaning set forth in Section 9(a).

 

“Repurchase
Calculation Date” shall mean the last day of the month preceding the later of
(i) the month in which the event giving rise to the right to repurchase
occurs and (ii) the month in which the Repurchase Eligibility Date occurs.

 

“Repurchase
Eligibility Date” shall have the meaning set forth in Section 5(c) hereof.

 

“Repurchase
Price” shall mean the amount to be paid in respect of the Stock and Options to
be purchased by the Company pursuant to Section 5(a), Section 6(a),
6(b), or 6(c), as applicable.

 

“Request”
shall have the meaning set forth in Section 9(b) hereof.

 

“Restricted
Group” shall mean, collectively, the Company, its subsidiaries, the Investors
and their respective Rule 405 Affiliates.

 

“Rule 405
Affiliate” shall mean an affiliate of the Company as defined under
Rule 405 of the rules and regulations promulgated under the Act and as
interpreted in good faith by the Board.

 

15

 

“Sale
Participation Agreement” shall mean that certain sale participation agreement
entered into by and between the Management Stockholder and the Investors dated
as of the date hereof.

 

“SEC” shall
mean the Securities and Exchange Commission.

 

“Stock” shall
have the meaning set forth in Section 3(a) hereof.

 

“Stock Option
Agreement” shall have the meaning set forth in the fourth “whereas” paragraph.

 

 “Third Party Offer” shall have the meaning set
forth in Section 4(a) hereof.

 

“Transaction
Agreement” shall have the meaning set forth in the first “whereas” paragraph.

 

“Transfer”
shall have the meaning set forth in Section 2(a) hereof.

 

8.                                       The Company’s Representations
and Warranties.

 

(a)                                  The Company represents and
warrants to the Management Stockholder that (i) this Agreement has been
duly authorized, executed and delivered by the Company and is enforceable
against the Company in accordance with its terms and (ii) the Stock, when
issued and delivered in accordance with the terms hereof and the other
agreements contemplated hereby, will be duly and validly issued, fully paid and
nonassessable.

 

(b)                                 If the Company becomes subject
to the reporting requirements of Section 12 of the Exchange Act, the
Company will file the reports required to be filed by it under the Act and the
Exchange Act and the rules and regulations adopted by the SEC thereunder, to
the extent required from time to time to enable the Management Stockholder to
sell shares of Stock without registration under the Exchange Act within the
limitations of the exemptions provided by (A) Rule 144 under the Act,
as such Rule may be amended from time to time, or (B) any similar rule or
regulation hereafter adopted by the SEC. 
Notwithstanding anything contained in this Section 8(b), the
Company may de-register under Section 12 of the Exchange Act if it is then
permitted to do so pursuant to the Exchange Act and the rules and regulations
thereunder and, in such circumstances, shall not be required hereby to file any
reports which may be necessary in order for Rule 144 or any similar rule
or regulation under the Act to be available. 
Nothing in this Section 8(b) shall be deemed to limit in any manner
the restrictions on sales of Stock contained in this Agreement.

 

9.                                       “Piggyback” Registration Rights.  Effective upon the date of this Agreement and
until the later of (i) the first occurrence of a Qualified Public Offering
and (ii) the fifth anniversary of the Effective Date:

 

(a)                                  The Management Stockholder
hereby agrees to be bound by all of the terms, conditions and obligations of
the piggyback registration rights contained in Section 2 of the
Registration Rights Agreement (the “Registration Rights Agreement”)
entered into by and among the Company and investors party thereto (the “Piggyback
Registration Rights”), as in

 

16

 

effect on the date hereof (subject to any amendments thereto to which
the Management Stockholder has agreed in writing to be bound), and, if Fusion
is selling stock, shall have all of the rights and privileges of the Piggyback
Registration Rights (including, without limitation, the right to participate in
the Qualified Public Offering and any rights to indemnification and/or
contribution from the Company and/or the Investors), in each case as if the
Management Stockholder were an original party (other than the Company) to the
Registration Rights Agreement, subject to applicable and customary underwriter
restrictions; provided, however, that at no time shall the
Management Stockholder have any rights to request registration under Section 3
of the Registration Agreement; and provided  further, that the
Management Stockholder shall not be bound by any amendments to the Registration
Rights Agreement unless the Management Stockholder consents in writing thereto provided
that such consent will not be unreasonably withheld.  All Stock purchased or held by the applicable
Management Stockholder Entities pursuant to this Agreement shall be deemed to
be “Registrable Securities” as defined in the Registration Rights Agreement.

 

(b)                                 In the event of a sale of Common
Stock by Fusion in accordance with the terms of the Registration Rights
Agreement, the Company will promptly notify the Management Stockholder in
writing (a “Notice”) of any proposed registration (a “Proposed
Registration”).  If within
fifteen (15) days of the receipt by the Management Stockholder of such
Notice, the Company receives from the applicable Management Stockholder
Entities a written request (a “Request”) to register shares of Stock
held by the applicable Management Stockholder Entities (which Request will be
irrevocable unless otherwise mutually agreed to in writing by the Management
Stockholder and the Company), shares of Stock will be so registered as provided
in this Section 9; provided, however, that for each such
registration statement only one Request, which shall be executed by the
applicable Management Stockholder Entities, may be submitted for all
Registrable Securities held by the applicable Management Stockholder Entities.

 

(c)                                  The maximum number of shares of
Stock which will be registered pursuant to a Request will be the lowest of
(i) the number of shares of Stock then held by the Management Stockholder
Entities, including all shares of Stock which the Management Stockholder
Entities are then entitled to acquire under an unexercised Option to the extent
then exercisable, multiplied by a fraction, the numerator of which is the
number of shares of Stock being sold by Fusion and any affiliated or
unaffiliated investment partnerships and investment limited liability companies
investing with Fusion and the denominator of which is the aggregate number of
shares of Stock owned by Fusion and any investment partnerships and investment
limited liability companies investing with Fusion or (ii) the maximum
number of shares of Stock which the Company can register in connection with
such Request in the Proposed Registration without adverse effect on the
offering in the view of the managing underwriters (reduced pro rata as more
fully described in subsection (d) of this Section 9 or (iii) the
maximum number of shares which the Management Stockholder (pro rata based upon
the aggregate number of shares of Stock the Management Stockholder and all
Other Management Stockholders have requested to be registered) is permitted to
register under the Piggyback Registration Rights.

 

(d)                                 If a Proposed Registration
involves an underwritten offering and the managing underwriter advises the
Company in writing that, in its opinion, the number of shares of Stock
requested to be included in the Proposed Registration exceeds the number which
can be sold in such offering, so as to be likely to have an adverse effect on
the price, timing or

 

17

 

distribution of the shares of Stock offered in such Public Offering as
contemplated by the Company, then the Company will include in the Proposed
Registration (i) first, 100% of the shares of Stock the Company proposes
to sell and (ii) second, to the extent of the number of shares of Stock
requested to be included in such registration which, in the opinion of such
managing underwriter, can be sold without having the adverse effect referred to
above, the number of shares of Stock which the selling Investors and any
affiliated or unaffiliated investment partnerships and investment limited
liability companies investing with the selling Investors, the Management
Stockholder and all Other Management Stockholders (together, the “Holders”)
have requested to be included in the Proposed Registration, such amount to be
allocated pro rata among all requesting Holders on the basis of the relative
number of shares of Stock then held by each such Holder (including upon
exercise of all exercisable Options) (provided that any shares thereby
allocated to any such Holder that exceed such Holder’s request will be
reallocated among the remaining requesting Holders in like manner).

 

(e)                                  Upon delivering a Request the
Management Stockholder will, if requested by the Company, execute and deliver a
custody agreement and power of attorney having customary terms and in form and
substance reasonably satisfactory to the Company with respect to the shares of
Stock to be registered pursuant to this Section 9 (a “Custody Agreement
and Power of Attorney”).  The Custody
Agreement and Power of Attorney will provide, among other things, that the
Management Stockholder will deliver to and deposit in custody with the
custodian and attorney-in-fact named therein a certificate or certificates (to
the extent applicable) representing such shares of Stock (duly endorsed in blank
by the registered owner or owners thereof or accompanied by duly executed stock
powers in blank) and irrevocably appoint said custodian and attorney-in-fact as
the Management Stockholder’s agent and attorney-in-fact with full power and
authority to act under the Custody Agreement and Power of Attorney on the
Management Stockholder’s behalf with respect to the matters specified therein.

 

(f)                                    Subject to the transfer
restrictions set forth in Section 3, upon the occurrence of a sale of
Common Stock by Fusion in a Public Offering and at all time thereafter, the
Company shall maintain a registration statement on Form S-8 filed with the
SEC that covers all shares of Stock that the Management Stockholder could
register in a public sale, in order to allow the Management Stockholder to
exercise his rights set forth in this Section 9.

 

(g)                                 The Management Stockholder
agrees that he will execute such other agreements as the Company may reasonably
request to further evidence the provisions of this Section 9.

 

10.                                 Pro Rata Repurchases; Dividends.  (a) 
Notwithstanding anything to the contrary contained in Section 4, 5
or 6, if at any time consummation of any purchase or payment to be made by the
Company pursuant to this Agreement and the Other Management Stockholders Agreements
would result in an Event, then the Company shall make purchases from, and
payments to, the Management Stockholder and Other Management Stockholders pro
rata (on the basis of the proportion of the number of shares of Stock each such
Management Stockholder and all Other Management Stockholders have elected or
are required to sell to the Company) for the maximum number of shares of Stock
permitted without resulting in an Event (the “Maximum Repurchase Amount”).  The provisions of Section 5(c) and 6(e)
shall apply in their entirety to payments and repurchases with respect to
shares of Stock which may not be made due to the

 

18

 

limits imposed by the Maximum Repurchase Amount under this Section 10(a).  Until all of such Stock is purchased and paid
for by the Company, the Management Stockholder and the Other Management
Stockholders whose Stock is not purchased in accordance with this Section 10(a)
shall have priority, on a pro rata basis, over other purchases of Stock by the
Company pursuant to this Agreement and Other Management Stockholders’
Agreements.

 

(b)                                 In the event any dividends are
paid with respect to the Stock, the Management Stockholder will be treated in
the same manner as all other holders of Common Stock with respect to shares of
Stock then owned by the Management Stockholder, and, with respect to any
Options held by the Management Stockholder, in accordance, as applicable, with Section 2.4
of the Stock Option Agreement.

 

11.                                 Rights to Negotiate Repurchase
Price.  Nothing in this Agreement shall be deemed to
restrict or prohibit the Company from purchasing, redeeming or otherwise
acquiring for value shares of Stock or Options from the Management Stockholder,
at any time, upon such terms and conditions, and for such price, as may be
mutually agreed upon in writing between the Parties, whether or not at the time
of such purchase, redemption or acquisition circumstances exist which
specifically grant the Company the right to purchase, or the Management Stockholder
the right to sell, shares of Stock or any Options under the terms of this
Agreement; provided that no such purchase, redemption or acquisition
shall be consummated, and no agreement with respect to any such purchase,
redemption or acquisition shall be entered into, without the prior approval of
the Board.

 

12.                                 Covenant Regarding 83(b)
Election.  Except as the Company may otherwise agree in
writing, the Management Stockholder hereby covenants and agrees that he will
make an election provided pursuant to Treasury Regulation 1.83-2 with
respect to the Stock, including without limitation, the Stock to be acquired
upon each exercise of the Management Stockholder’s Options; and Management
Stockholder further covenants and agrees that he will furnish the Company with
copies of the forms of election the Management Stockholder files within
thirty (30) days after the date hereof, and within thirty (30) days
after each exercise of Management Stockholder’s Options and with evidence that
each such election has been filed in a timely manner.

 

13.                                 Notice of Change of Beneficiary.  Immediately prior to any transfer of Stock to
a Management Stockholder’s Trust, the Management Stockholder shall provide the
Company with a copy of the instruments creating the Management Stockholder’s
Trust and with the identity of the beneficiaries of the Management Stockholder’s
Trust.  The Management Stockholder shall
notify the Company as soon as practicable prior to any change in the identity
of any beneficiary of the Management Stockholder’s Trust.

 

14.                                 Recapitalizations, etc. 
The provisions of this Agreement shall apply, to the full extent set
forth herein with respect to the Stock or the Options, to any and all shares of
capital stock of the Company or any capital stock, partnership units or any
other security evidencing ownership interests in 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 substitution of the Stock or
the Options by reason of any stock dividend, split, reverse split, combination,
recapitalization, liquidation, reclassification, merger, consolidation or
otherwise.

 

19

 

15.                                 Management Stockholder’s
Employment by the Company.  Nothing contained in this Agreement or in any
other agreement entered into by the Company and the Management Stockholder
contemporaneously with the execution of this Agreement (subject to, and except
as set forth in, the applicable provisions of any offer letter or letter of
employment provided to the Management Stockholder by the Company or any
employment agreement entered by and between the Management Stockholder and the
Company) (i) obligates the Company or any subsidiary of the Company to
employ the Management Stockholder in any capacity whatsoever or
(ii) prohibits or restricts the Company (or any such subsidiary) from
terminating the employment of the Management Stockholder at any time or for any
reason whatsoever, with or without Cause, and the Management Stockholder hereby
acknowledges and agrees that neither the Company nor any other person has made
any representations or promises whatsoever to the Management Stockholder
concerning the Management Stockholder’s employment or continued employment by
the Company or any subsidiary of the Company.

 

16.                                 Binding Effect.  The provisions of this Agreement shall be
binding upon and accrue to the benefit of the parties hereto and their
respective heirs, legal representatives, successors and assigns.  In the case of a transferee permitted under Section 2(a)
or Section 3 (other than clauses (c) or (d) thereof) hereof, such
transferee shall be deemed the Management Stockholder hereunder; provided,
however, that no transferee (including without limitation, transferees
referred to in Section 2(a) or Section 3 hereof) shall derive any
rights under this Agreement unless and until such transferee has delivered to
the Company a valid undertaking and becomes bound by the terms of this
Agreement.

 

17.                                 Amendment.  This Agreement may be amended only by a
written instrument signed by the Parties hereto.

 

18.                                 Closing.  Except as otherwise provided herein, the
closing of each purchase and sale of shares of Stock pursuant to this Agreement
shall take place at the principal office of the Company on the tenth business
day following delivery of the notice by either Party to the other of its
exercise of the right to purchase or sell such Stock hereunder.

 

19.                                 Applicable Law; Jurisdiction;
Arbitration; Legal Fees.

 

(a)                                  The laws of the State of
Delaware applicable to contracts executed and to be performed entirely in such
state shall govern the interpretation, validity and performance of the terms of
this Agreement.

 

(b)                                 In the event of any controversy
among the parties hereto arising out of, or relating to, this Agreement which
cannot be settled amicably by the parties, such controversy shall be finally,
exclusively and conclusively settled by mandatory arbitration conducted
expeditiously in accordance with the American Arbitration Association rules by
a single independent arbitrator.  Such
arbitration process shall take place within 100 miles of the New York City
metropolitan area.  The decision of the
arbitrator shall be final and binding upon all parties hereto and shall be
rendered pursuant to a written decision, which contains a detailed recital of
the arbitrator’s reasoning.  Judgment
upon the award rendered may be entered in any court having jurisdiction
thereof.

 

20

 

(c)                                  Notwithstanding the foregoing,
the Management Stockholder acknowledges and agrees that the Company, its
subsidiaries, the Investors and any of their respective Rule 405
Affiliates shall be entitled to injunctive or other relief in order to enforce
the covenant not to compete, covenant not to solicit and/or confidentiality
covenants as set forth in Section 24(a) of this Agreement.

 

(d)                                 In the event of any arbitration
or other disputes with regard to this Agreement or any other document or
agreement referred to herein, each Party shall pay its own legal fees and
expenses, unless otherwise determined by the arbitrator.

 

20.                                 Assignability of Certain Rights
by the Company.  The Company shall have the right to assign
any or all of its rights or obligations to purchase shares of Stock pursuant to
Sections 4, 5 and 6 hereof.

 

21.                                 Miscellaneous.

 

(a)                                  In this Agreement all references
to “dollars” or “$” are to United States dollars and the masculine pronoun
shall include the feminine and neuter, and the singular the plural, where the
context so indicates

 

(b)                                 If any provision of this
Agreement shall be declared illegal, void or unenforceable by any court of
competent jurisdiction, the other provisions shall not be affected, but shall
remain in full force and effect.

 

22.                                 Withholding.  The Company or its subsidiaries shall have
the right to deduct from any cash payment made under this Agreement to the
applicable Management Stockholder Entities any minimum federal, state or local
income or other taxes required by law to be withheld with respect to such
payment.

 

23.                                 Notices.  All notices and other communications provided
for herein shall be in writing.  Any
notice or other communication hereunder shall be deemed duly given
(i) upon electronic confirmation of facsimile, (ii) one business day
following the date sent when sent by overnight delivery and
(iii) five (5) business days following the date mailed when mailed by
registered or certified mail return receipt requested and postage prepaid, in
each case as follows:

 

(a)                                  If to the Company, to it at the
following address:

 

Visant Holding Corp.

One Byram Brook Place, Suite 202

Armonk, NY  10504

Attention:  General Counsel

Telecopy: (914) 595-8237

 

with copies to:

 

Kohlberg Kravis Roberts & Co.

9 West 57th
Street

 

21

 

New York, New York 10019

Attention:  Alexander Navab

Telecopy: (212) 750-0003

 

and

 

DLJ Merchant Banking III, Inc.

Eleven Madison Avenue

New York, NY 10010

Attention:  Thompson Dean

Telecopy: (212) 538-0415

 

and

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York 10017

Attention:  Gary I. Horowitz, Esq.

Telecopy: 
(212) 455-2502

 

and

 

Weil, Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153

Attention:  Douglas P. Warner, Esq.

Telecopy:  (212) 310-8007

 

(b)                                 If to the Management
Stockholder, to him at the address set forth below under his signature;

 

or at such other address as either party shall have specified by notice
in writing to the other.

 

24.                                 Confidential Information;
Covenant Not to Compete.

 

(a)                                  In consideration of the Company
entering into this Agreement with the Management Stockholder, the Management
Stockholder hereby agrees effective as of the date of the Management
Stockholder’s commencement of employment with the Company or its Subsidiaries,
without the Company’s prior written consent, the Management Stockholder shall
not, directly or indirectly, (i) at any time during or after the
Management Stockholder’s employment with the Company or its Subsidiaries,
disclose any Confidential Information pertaining to the business of the Company
or any of its Subsidiaries, except when required to perform his or her duties
to the Company or one of its Subsidiaries, by law or judicial process; or
(ii) at any time during the Management Stockholder’s employment with the
Company or its Subsidiaries and for a period of two years thereafter, directly
or indirectly (A) act as a proprietor, investor, director, officer,
employee, substantial stockholder, consultant, or partner in any business that
directly or indirectly competes, at the relevant determination date, with the
business of the Company in, (1)
school photography services or school-related clothing, affinity products

 

22

 

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), (B) solicit customers or clients of the Company or any of its
Subsidiaries to terminate their relationship with the Company or any of its
Subsidiaries or otherwise solicit such customers or clients to compete with any
business of the Company or any of its Subsidiaries or (C) solicit or offer
employment to any person who has been employed by the Company or any of its
Subsidiaries at any time during the twelve (12) months immediately
preceding the termination of the Management Stockholder’s employment.  If the Management Stockholder is bound by any
other agreement with the Company regarding the use or disclosure of
Confidential Information, the provisions of this Agreement shall be read in
such a way as to further restrict and not to permit any more extensive use or
disclosure of Confidential Information.

 

(b)                                 Notwithstanding clause (a)
above, if at any time a court holds that the restrictions stated in such
clause (a) are unreasonable or otherwise unenforceable under circumstances
then existing, the parties hereto agree that the maximum period, scope or
geographic area determined to be reasonable under such circumstances by such
court will be substituted for the stated period, scope or area.  Because the Management Stockholder’s services
are unique and because the Management Stockholder has had access to
Confidential Information, the parties hereto agree that money damages will be
an inadequate remedy for any breach of this Agreement.  In the event of a breach or threatened breach
of this Agreement, the Company or its successors or assigns may, in addition to
other rights and remedies existing in their favor, apply to any court of
competent jurisdiction for specific performance and/or injunctive relief in
order to enforce, or prevent any violations of, the provisions hereof (without
the posting of a bond or other security).

 

(c)                                  In
the event that the Management Stockholder breaches any of the provisions of Section 24(a),
in addition to all other remedies that may be available to the Company, such
Management Stockholder shall be required to pay to the Company any amounts
actually paid to him or her by the Company in respect of any repurchase by the
Company of the Option or shares of Common Stock underlying the Option held by
such Management Stockholder.

 

25.                                 Termination of Certain
Provisions.

 

The
provisions contained in Section 4 and the portion of any other provision
of this Agreement that incorporates the provisions of Section 4, shall
terminate, and be of no further force or effect upon the consummation of a
Qualified Public Offering.

[Signatures on next page.]

 

23

 

IN WITNESS
WHEREOF, the Parties have executed this Agreement as of the date first above
written.

 

	
   

  	
  VISANT
  HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

 

	
   

  	
  MANAGEMENT
  STOCKHOLDER:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADDRESS:

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