Document:

Exhibit
10.4

 

 

JOSTENS HOLDING CORP.

2003 STOCK INCENTIVE PLAN

 

 

EFFECTIVE AS OF OCTOBER 30, 2003

 

 

Table of Contents

 

	
  1.

  	
  Purposes

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Number of Shares
  Subject to the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Administration of the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Eligibility

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Options

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  A.

  	
  Option Price and Payment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  B.

  	
  Terms
  of Options and Limitations on the Right of Exercise

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  C.

  	
  Termination of
  Employment or Service

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  D.

  	
  Exercise of Options

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  E.

  	
  Non-Transferability
  of Options

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  F.

  	
  Transfer
  Restrictions and Repurchase Rights

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Stock Awards

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Adjustment
  of Shares; Effect of Certain Transactions

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Right to
  Terminate Employment or Service

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Compliance with
  Legal Requirements

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Issuance
  of Stock Certificates; Legends; Payment of Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Withholding Taxes

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Listing of Shares
  and Related Matters

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Amendment of the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Termination or
  Suspension of the Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Partial Invalidity

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Effective Date

  	
   

  

 

 

JOSTENS HOLDING CORP.

2003 STOCK INCENTIVE PLAN

 

1.             Purposes

 

Jostens
Holding Corp., a Delaware corporation (the “Company”), desires to afford certain
employees, directors and other persons providing services for the Company or
any parent corporation or subsidiary corporation of the Company now existing or
hereafter formed or acquired who are responsible for the continued growth of
the Company an opportunity to acquire a proprietary interest in the Company,
and thereby create in such persons an increased interest in and a greater
concern for the welfare of the Company and its subsidiaries.

 

The
Company, by means of this 2003 Stock Incentive Plan (the “Plan”), seeks to retain for itself and any
parent corporation or subsidiary corporation of the Company the services of
persons now holding key positions and also to secure and retain the services of
persons capable of filling such positions.

 

The
stock options (“Options”)
and stock awards (“Awards”)
offered pursuant to the Plan are a matter of separate inducement and are not in
lieu of any salary or other compensation for the services of any key employee,
non-employee director or consultant.

 

The
Options granted under the Plan are intended to be either incentive stock
options (“Incentive Options”)
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”),
or options that do not meet the requirements for Incentive Options (“Non-Qualified Options”).  The Company makes no warranty, however, as
to the qualification of any Option as an Incentive Option.

 

2.             Number of Shares Subject to the Plan

 

Options
and Awards granted under the Plan shall be exercisable for shares of Class B
Common Stock, $0.01 par value per share (the “Class B Common Stock” and together with the
Company’s Class A Common Stock, par value $0.01 per share, the “Common Stock”).  Subject to Section 7 hereof, the total
number of shares of Class B Common Stock of the Company authorized for issuance
upon the exercise of Options or in connection with Awards granted under the Plan
to employees of the Company or any parent corporation or subsidiary corporation
of the Company shall not exceed, in the aggregate, 288,023 shares of the Class
B Common Stock (the “Employee Shares”) and the total number of shares of
Class B Common Stock of the Company authorized for issuance upon the exercise
of Options or in connection with Awards granted under the Plan to directors and
other persons providing services for the Company or any parent corporation or
subsidiary corporation of the Company shall not exceed, in the aggregate,
10,000 shares of the Class B Common Stock (the “Non-Employee Shares” and, together

 

 

with
the Employee Shares, the “Shares”); provided, that the maximum number of Shares
that may be purchased or acquired upon the exercise of Options or in connection
with Awards granted under the Plan to any one person shall not exceed, in the
aggregate, 70,400 Shares.

 

Shares
available for issuance under the Plan may be either authorized but unissued
Shares, Shares of issued stock held in the Company’s treasury, or both, at the
discretion of the Company.  If and to
the extent that Options or Awards expire or are cancelled or otherwise
terminated under the Plan, the Shares covered by the unexercised portion of
such Options or Awards may again be subject to an Option or Award under the
Plan.

 

Except
as provided in Sections 14 and 17 hereof, the Company may, from time to time
during the period beginning on October 30, 2003 (the “Effective Date”), the date of approval of the
Plan by the Company’s Board of Directors (the “Board”), and ending on July 29, 2013 (the “Termination Date”),
grant to certain employees, directors and other persons providing services for
the Company or any parent corporation or subsidiary corporation of the Company
now existing or hereafter formed or acquired Incentive Options, Non-Qualified
Options, and/or Awards under the terms hereinafter set forth.

 

As
used in the Plan, the term “parent corporation” and “subsidiary corporation” shall mean a
corporation within the definitions of such terms contained in Sections 424(e)
and 424(f) of the Code, respectively.

 

3.             Administration of the Plan

 

The
Board shall administer the Plan, provided that the Board may, from time to
time, designate from among its members a compensation committee, which may also
be any other committee of the Board (the “Committee”), to administer the Plan.  Whenever the Company shall have any class of
equity securities registered pursuant to Section 12 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), the Committee shall be composed solely
of two or more members who are “Non-Employee Directors” within the meaning of Rule
16b-3, as amended (“Rule 16b-3”)
promulgated under the Exchange Act and “Outside Directors” within the meaning of Treasury
Regulation Section 1.162-27(e)(3) under Section 162(m) of the Code, and shall
meet such other conditions as required by Rule 16b-3 or other applicable rules
under Section 16(b) of the Exchange Act. 
A majority of the members of the Committee shall constitute a quorum and
the act of a majority of the members of the Committee shall be the act of the
Committee.  If the Board administers the
Plan, then any reference herein, or in any agreement granting Options or Awards
pursuant to the Plan, to the Committee shall, unless the context otherwise
requires, include references to the Board, as appropriate.

 

Subject
to the express provisions of the Plan, the Committee shall have the authority,
in its sole discretion, to determine the employees, directors and service
providers to the Company or any parent corporation or subsidiary corporation to
whom

 

2

 

Options
or Awards shall be granted (the “Optionholders”), the time when such persons shall be
granted Options or Awards, the number of Shares which shall be subject to each
Option or Award, the purchase price of each Share which shall be subject to
each Option or Award, the period(s) during which such Options shall be
exercisable (whether in whole or part), and the other terms and provisions
thereof (which need not be identical). 
In determining the persons to whom Options or Awards shall be granted
and the number of Shares for which Options or Awards are to be granted to each
person, the Committee shall give due consideration to, among other things, the
length of service, performance and the responsibilities and duties of such
person.

 

Subject
to the express provisions of the Plan, the Committee also shall have the
authority to construe the Plan and the Options and Awards granted hereunder, to
prescribe, amend and rescind rules and regulations relating to the Plan, to
determine the terms and provisions of the Options and Awards (which need not be
identical) and to make all other determinations necessary or advisable for
administering the Plan.

 

The
Committee may establish performance standards for determining the periods
during which Options or Awards shall be granted or exercisable, including
without limitation, standards based on the earnings of the Company and its
subsidiaries for various fiscal periods. 
The Committee shall define such performance criteria and, from time to
time, the Committee in its sole discretion and in administering the Plan may
make such adjustments to such performance criteria for any fiscal period so
that extraordinary or unusual charges or credits, changes to capital
expenditure plans, acquisitions, mergers, consolidations, and other corporate
transactions and other elements of or factors influencing the calculations of
earnings or any other performance standard do not distort or affect the
operation of the Plan in an a manner inconsistent with the achievement of its
purpose.

 

Any
determination of the Committee on the matters referred to in this Section 3
shall be conclusive.

 

The
Committee may delegate to one or more of its members, or to one or more agents,
such administrative duties as it may deem advisable, and the Committee, or any
person to whom it has delegated duties as aforesaid, may employ one or more
persons to render advice with respect to any responsibility the Committee or
such person may have under the Plan. 
The Committee may employ such legal or other counsel, consultants and
agents as it may deem desirable for the administration of the Plan and may rely
upon any opinion or computation received from any such counsel, consultant or
agent.  Expenses incurred by the
Committee in the engagement of such counsel, consultant or agent shall be paid
by the Company or such subsidiary corporation or parent corporation of the
Company whose employees have benefited from the Plan, as determined by the
Committee.  No member or former member
of the Board or the Committee shall be liable for any action or determination
made in good faith with respect to the Plan or any Awards or Options granted
hereunder.

 

3

 

4.             Eligibility

 

Options
or Awards may be granted only to key employees, non-employee directors and
consultants providing services to the Company or any parent corporation or
subsidiary corporation of the Company now existing or hereafter formed or
acquired; provided, however that Incentive Options may only be
granted to key employees of the Company or any parent corporation or subsidiary
corporation of the Company now existing or hereafter formed or acquired.  The Plan does not create a right in any
person to participate in, or be granted Options or Awards under, the Plan.

 

5.             Options

 

A.    Option
Price and Payment

 

The
price for each Share purchasable under any Option granted hereunder shall be determined
by the Committee; provided, however, that in the case of an
Incentive Option, the purchase price for each Share shall not be less than one
hundred percent (100%) of the Fair Market Value (as defined below) per Share at
the date the Option is granted; and provided further, that in the case
of an Incentive Option granted to a key employee who, at the time such Option
is granted, owns stock possessing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or any subsidiary
corporation or parent corporation, the purchase price for each Share shall be
not less than one hundred ten percent (110%) of the Fair Market Value per Share
at the date the Option is granted.  In
determining the stock ownership of a key employee for any purpose under the
Plan, the rules of Section 424(d) of the Code shall be applied, and the
Committee may rely on representations of fact made to it by the key employee
and believed by it to be true.

 

For
purposes of the Plan, the “Fair Market Value” of the Shares with respect to any
date of determination, means:

 

(i)            $87.12 per Share as of
the date hereof;

 

(ii)           if the Shares are
listed or admitted to trading on a national securities exchange in the United
States or reported through The Nasdaq Stock Market (“Nasdaq”) then the closing sale price on such
exchange or Nasdaq on such date or, if no trading occurred or quotations were
available on such date, then the closest preceding date on which such Shares
were traded or quoted; or

 

(iii)          if not so listed or
reported but a regular, active public market for the Shares exists (as
determined in the sole discretion of the Committee, whose discretion shall be
conclusive and binding), then the average of the closing bid and ask quotations
per Share in the over-the-counter market for such Shares in the United States
on such date or, if no such quotations are available on such date, then on the
closest date preceding such date.  For
purposes of the foregoing, a market in which trading is sporadic and the ask
quotations generally exceed the bid quotations by more than fifteen percent
(15%) shall not be deemed to be a “regular, active public market.”

 

4

 

If the
Board determines that a regular, active public market does not exist for the
Shares, the Board shall determine the Fair Market Value of the Shares in its
good faith judgment based on the total number of shares of Common Stock then
outstanding, taking into account all outstanding options, warrants, rights or
other securities exercisable or exchangeable for, or convertible into, shares
of Common Stock.  The Board shall make
its determination of Fair Market Value from time to time not less than annually
(the “Valuation”)
and such determination shall remain in effect until the Board makes the next
Valuation (provided that, at any relevant date of determination, the Valuation
approximates the Fair Market Value at that date and, if it does not, the Board
shall make a new determination of Fair Market Value which shall apply
retroactively at such date of determination). 
Notwithstanding the foregoing, if an investment banker or appraiser
appointed by the Company makes a determination of Fair Market Value subsequent
to a Valuation, such subsequent determination shall supersede the Valuation
then in effect and shall establish the Fair Market Value until the next
Valuation.

 

For
purposes of this Plan, the determination of the Board of the Fair Market Value
shall be conclusive.

 

Upon
the exercise of an Option granted hereunder, the Company shall cause the
purchased Shares to be issued only when it shall have received the full
purchase price therefor in cash; provided, however, that in lieu
of cash, the holder of an Option may, if the terms of such Option so provide and
to the extent permitted by applicable law, exercise an Option (a) in whole or
in part, by delivering to the Company shares of Class B Common Stock (in proper
form for transfer and accompanied by all requisite stock transfer tax stamps or
cash in lieu thereof) owned by such holder having a Fair Market Value equal to
the cash exercise price applicable to that portion of the Option being
exercised, the Fair Market Value of the shares of Class B Common Stock so
delivered to be determined as of the date immediately preceding the date of
exercise, or as otherwise may be required to comply with or conform to the
requirements of any applicable law or regulations, or (b) by delivering to the
Company such other form of payment as the Committee shall permit in its sole
discretion at the time of grant of the Option; provided that any such shares of
Class B Common Stock to be delivered by the holder of an Option shall have been
owned by such holder for at least six (6) months.

 

B.    Terms
of Options and Limitations on the Right of Exercise

 

Any
Option granted hereunder shall be exercisable at such times, in such amounts
and during such period or periods as the Committee shall determine at the date
of the grant of such Option; provided, however, that an Incentive
Option shall not be exercisable after the expiration of ten (10) years from the
date such Option is granted; and provided further, that in the case of
an Incentive Option granted to a key employee who, at the time such Incentive
Option is granted, owns stock possessing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company or of any
subsidiary corporation or parent corporation of the Company, such Incentive
Option shall not be exercisable after the expiration of five (5) years from the
date such Incentive Option is granted.

 

5

 

The
Committee shall have the right to accelerate, in whole or in part, from time to
time, conditionally or unconditionally, rights to exercise any Option granted
hereunder.

 

To the
extent that an Option granted hereunder is not exercised within the period of
exercisability specified therein, it shall expire as to the then unexercised
part.

 

Except
as otherwise provided under the Code, to the extent that the aggregate Fair
Market Value of stock for which Incentive Options (under all stock option plans
of the Company and of any parent corporation or subsidiary corporation of the
Company) are exercisable for the first time by a key employee during any calendar
year exceeds one hundred thousand dollars ($100,000), such Options shall be
treated as Non-Qualified Options.  For
purposes of this limitation, (a) the Fair Market Value of stock is determined
as of the time the Option is granted and (b) Options will be taken into account
in the order in which they were granted.

 

In no
event shall an Option granted hereunder be exercised for a fraction of a Share.

 

A
person entitled to receive Shares upon the exercise of an Option granted
hereunder shall not have the rights of a stockholder with respect to such
Shares until the date of issuance of a stock certificate to him or her for such
Shares; provided, however, that until such stock certificate is
issued, any holder of an Option using previously acquired shares of Common
Stock in payment of the exercise price shall continue to have the rights of a
stockholder with respect to such previously acquired shares of Common Stock.

 

C.    Termination
of Employment or Service

 

Upon
termination of employment of any employee or termination of service of any
non-employee director or of any consultant with the Company and all subsidiary
corporations and parent corporations of the Company, any Option previously
granted to such person, unless otherwise specified by the Committee in the
agreement granting such Option or otherwise, to the extent not theretofore
exercised, shall terminate and become null and void; provided, however,
that:

 

(i)            if any Optionholder
shall die while in the employ or service of such corporation or during either
the ninety (90) day or thirty (30) day period, whichever is applicable,
specified in clauses (ii) and (iii) below, any Option granted hereunder, unless
otherwise specified by the Committee in the letter granting such Option, shall
be exercisable for any or all of such number of Shares that such Optionholder
is entitled to purchase at the time of death, by the legal representative of
such Optionholder or by such person who acquired such Option by bequest or
inheritance or by reason of the death of such Optionholder, at any time up to
and including ninety (90) days after the date of death;

 

(ii)           if the employment or
service of any Optionholder shall terminate by reason of such Optionholder’s
Disability (as defined below), any Option granted

 

6

 

hereunder, unless otherwise specified by the Committee
in the letter granting such Option, shall be exercisable for any or all of such
number of Shares that such Optionholder is entitled to purchase at the
effective date of termination of employment or service by reason of Disability,
at any time up to and including ninety (90) days after the effective date of
such termination of employment or service;

 

(iii)          (x) in the case of an
employee, if the employment of such employee shall terminate (i) by reason of
the employee’s retirement (at such age or upon such conditions as shall be
specified by the Committee in the letter granting such Option) or (ii) by the
Company or a subsidiary corporation or parent corporation of the Company other
than for Cause, and (y) in the case of a non-employee director or consultant,
if the service of such director or consultant shall terminate (i) by reason of
the non-employee director’s voluntary retirement from service as a director,
(ii) due to failure on the part of the Company or a subsidiary corporation or
parent corporation of the Company to retain or nominate for re-election such
director who is otherwise eligible, unless due to an act of (a) fraud or
intentional misrepresentation or (b) embezzlement, misappropriation or
conversion of assets or opportunities of the Company or any subsidiary
corporation or parent corporation of the Company, or (iii) by the Company or a
subsidiary corporation or parent corporation of the Company other than for
Cause, any Option granted hereunder, unless otherwise specified by the
Committee in the letter granting such Option, shall be exercisable for any or
all of such number of Shares that such Optionholder is entitled to exercise at
the effective date of termination of employment or service, at any time up to
and including thirty (30) days after the effective date of such termination of
employment or service; and

 

(iv)          if the employment or
service of any Optionholder shall terminate by any reason other than that
provided for in clauses (i), (ii) or (iii) above, any Option granted hereunder,
unless otherwise specified by the Committee in the letter granting such Option
shall, to the extent not theretofore exercised, become null and void.

 

None
of the events described in clauses (i), (ii) or (iii) above shall extend the
period of exercisability of the Option beyond the expiration date thereof.

 

If an
Option granted hereunder shall be exercised by the legal representative of a
deceased Optionholder or by a person who acquired an Option granted hereunder
by bequest or inheritance or by reason of the death of any current or former
employee, non-employee director or consultant, written notice of such exercise
shall be accompanied by a certified copy of letters testamentary or equivalent
proof of the right of such legal representative or other person to exercise
such Option.

 

For
purposes of the Plan, the term “for Cause” shall mean (a) with respect to an employee
who is a party to a written employment agreement with the Company or a
subsidiary corporation or parent corporation of the Company, which agreement
contains a definition of “for cause” or “cause” (or words of like import) for
purposes of termination of employment or services thereunder by the Company or
such subsidiary corporation or parent corporation of the Company, “for cause”
or “cause” as defined therein; or (b) in all other cases, as determined by the
Committee or the Board in its sole discretion, (i) the

 

7

 

intentional
or willful commission or failure due to bad faith by an Optionholder of an act
that causes or may cause substantial damage or significant injury to the
Company or a subsidiary corporation or parent corporation of the Company; (ii)
the commission by an Optionholder of an act of fraud or willful dishonesty in
the performance of such Optionholder’s duties on behalf of the Company or a
subsidiary corporation or parent corporation of the Company; (iii) conviction
of an Optionholder for commission of a felony or a plea of guilty or nolo
contendere to a felony; (iv) the breach by an Optionholder of any
non-competition, non-solicitation or confidentiality provision or agreement
entered into with the Company or a subsidiary corporation or parent corporation
of the Company; (v) the Optionholder’s being repeatedly under the influence of
illegal drugs and alcohol while performing his duties to the Company or a
subsidiary corporation or parent corporation of the Company, or (vi) the
continuing willful failure of an Optionholder to perform the duties of such
Optionholder to the Company or a subsidiary corporation or parent corporation
of the Company that has not been cured within fifteen (15) days after written
notice thereof has been given to the Optionholder by the Committee or its
designee.

 

For
purposes of the Plan, the term “Disability” means (i) with respect to an Optionholder
who is a party to a written employment agreement with the Company, which
agreement contains a definition for “disability” or “permanent disability” (or
words of like import) for purposes of termination of employment thereunder by
the Company, “disability” or “permanent disability” in the most recent
agreements, or (ii) in all other cases, means, as determined by the Committee
or the Board in its sole discretion, such Optionholder’s inability to perform
substantially his or her duties and responsibilities to the Company or any
subsidiary corporation or parent corporation any reason of physical or mental
illness, injury, infirmity or condition for a continuous period of six (6)
months or one or more periods aggregating twelve (12) months in any two-year
period.

 

For
purposes of the Plan, an employment relationship shall be deemed to exist
between an individual and a corporation if, at the time of determination, the
individual is an “employee” of such corporation for purposes of Section 422(a)
of the Code.  An employment relationship
shall be deemed to continue while an individual is on a bona fide leave of
absence if the period of such leave does not exceed ninety (90) days or, if
longer, if such individual’s right to reemployment is guaranteed by statute or
contract.

 

A
termination of employment shall not be deemed to occur by reason of (i) the
transfer of an employee from employment by the Company to employment by a
subsidiary corporation or a parent corporation of the Company or (ii) the
transfer of an employee from employment by a subsidiary corporation or a parent
corporation of the Company to employment by the Company or by another subsidiary
corporation or parent corporation of the Company.

 

8

 

D.    Exercise of Options

 

Subject
to the limitations on exercise referred to in Sections 5.B and 5.C hereof,
Options granted under the Plan shall be exercised by the Optionholder as to all
or part of the Shares covered thereby by giving written notice of exercise to
the Corporate Secretary of the Company at the principal business office of the
Company, specifying the number of Shares to be purchased (including the class
of such Shares), and specifying a business day not more than ten (10) days from
the date such notice is given for the payment of the purchase price against
delivery of the Shares being purchased. 
Subject to the terms of Sections 9, 10 and 11 hereof, the Company shall
cause certificates for the Shares so purchased to be delivered at the principal
business office of the Company, against payment of the full purchase price, on
the date specified in the notice of exercise.

 

E.     Non-Transferability
of Options

 

An
Option granted hereunder shall not be transferable, whether by operation of law
or otherwise, other than, in the case of Non-Qualified Options, to (a) any
spouse, lineal descendant, sibling, parent, heir, executor, administrator, testamentary
trustee, legatee or beneficiary of such Optionholder or (B) a trust that is for
the exclusive benefit of such Optionholder or the person set forth under clause
(a) above (each a “Permitted Transferee”),
and any Option granted hereunder shall be exercisable, during the lifetime of
the holder, only by such holder.  Except
to the extent provided above, Options may not be assigned, transferred,
pledged, hypothecated or disposed of in any way (whether by operation of law or
otherwise) and shall not be subject to execution, attachment or similar
proceeding.  Any attempted assignment,
transfer, pledge, hypothecation or other disposition of an Option granted
hereunder contrary to the provisions hereof, and the levy of any attachment or
similar proceeding upon such Option, shall be null and void and without effect.

 

F.     Transfer
Restrictions and Repurchase Rights

 

It
shall be a condition to the grant of any Option hereunder that the Optionholder
agrees to become bound by certain transfer restrictions and repurchase rights
set forth in the agreement granting such Option, which provisions may be
amended or modified from time to time as more fully specified by the Committee
in connection with the grant of the Option.

 

6.             Stock Awards

 

The
Committee may, in its discretion, grant Awards (which may include mandatory
payment of bonus incentive compensation in stock) consisting of Class B Common
Stock issued or transferred to participants with or without other payments
therefor.  Awards may be subject to such
terms and conditions as the Committee determines appropriate, including,
without limitation, restrictions on the sale or other disposition of such
Shares, and the right of the Company to reacquire such Shares for no
consideration upon termination of the participant’s employment or service
within specified periods.  The Committee
may require the participant to deliver a duly signed

 

9

 

stock
power, endorsed in blank, relating to the Class B Common Stock covered by such
an Award.  The Committee may also
require that the stock certificates evidencing such Shares be held in custody
or bear restrictive legends until the restrictions thereon shall have lapsed.  The Award shall specify whether the
participant shall have, with respect to the Shares subject to an Award, all of
the rights of a holder of Class B Common Stock, including the right to receive
dividends and to vote the Shares.  It
shall be a condition to the grant of any Award hereunder that the participant
agree to become bound by certain transfer restrictions and repurchase rights
set forth in the agreement granting such Award, which provisions may be amended
or modified from time to time as more fully specified by the Committee in
connection with the grant of the Award.

 

7.             Adjustment of Shares; Effect of Certain
Transactions

 

If by
reason of a corporate merger, consolidation, acquisition of property or stock,
separation, reorganization, recapitalization or liquidation the Board shall
authorize the issuance or assumption of a stock option in a transaction to
which Section 424(a) of the Code applies, then, notwithstanding any other
provision of this Plan, the Board may grant an option upon such terms and
conditions as it may deem appropriate for the purpose of assumption of old
option, or substitution of a new option for the old option, in conformity with
the provisions of said Section 424(a) of the Code and the Treasury Regulations
thereunder.

 

Notwithstanding
any other provision contained herein, in the event of any change in the Shares
subject to the Plan or to any Option or other right to acquire Shares granted
under the Plan (through merger, consolidation, reorganization,
recapitalization, stock dividend, stock split, split-up, split-off, spin-off,
combination of shares, exchange of shares, or other like change in the capital
structure of the Company), an adjustment shall be made to each outstanding
Option or other right to acquire Shares under the Plan such that each such
Option or right shall thereafter be exercisable for such securities, cash
and/or other property as would have been received in respect of the Shares
subject to such Option or right had such Option or right been exercised in full
immediately prior to such change, and such an adjustment shall be made
successively each time any such change shall occur.  The term “Shares” after any such change shall refer to the
securities, cash and/or property then receivable upon exercise of an Option or
other right to acquire Shares under the Plan. 
In addition, in the event of any such change, the Committee shall make
any further adjustment to the maximum number of Shares which may be acquired
under the Plan pursuant to the exercise of Options or other right to acquire
Shares, the maximum number of Shares for which Options or Awards may be granted
to any one participant and the number of Shares and exercise price per Share
subject to outstanding Options or other right to acquire Shares under the Plan
as shall be equitable to prevent dilution or enlargement of rights under such
Options or rights, and the determination of the Committee as to these matters
shall be conclusive and binding on the Optionholder; provided, however,
that (a) each such adjustment with respect to an Incentive Option shall comply
with the rules of Section 424(a) of the Code (or any successor provision) and
(b) in no event shall any adjustment be made which would render any Incentive
Option granted hereunder other than an “incentive stock option” as defined in
Section 422 of the Code.

 

10

 

Except
as specifically provided in the agreement granting the Option or Award, in the
event of a Change in Control (as defined below), and in anticipation thereof if
required by the circumstances, the Board, in its sole discretion may also (i)
accelerate the exercisability, prior to the effective date of such change in
control, of additional percentages of all outstanding Options granted under
this Plan (and redesignate as Non-Qualified Options any Options or portions
thereof that were originally designated as Incentive Options but that no longer
so qualify under Section 422 of the Code), (ii) arrange, if there is a
surviving or acquiring corporation, subject to the consummation of a change in
control, to have that corporation or an affiliate of that corporation grant to
employees and other optionholders replacement options with substantially
similar or, if not adverse to the optionholders, different provisions with
respect to exercisability (upon which grant the Options granted under this Plan
shall immediately terminate and be of no further force or effect) which,
however, in the case of Incentive Options, satisfy, in the determination of the
Board, the requirements of Section 424(a) of the Code, (iii) cancel all outstanding
Options in exchange for consideration in cash or in kind in an amount equal to
the value of the Shares, as determined by the Board in good faith, the
optionholder would have received had the Option been exercised (to the extent
then exercisable or to a greater extent, including in full, as the Board may
determine) less the option price therefor (upon which cancellation such Options
shall immediately terminate and be of no further force or effect), (iv) cancel
all outstanding options to the extent then exercisable for no consideration,
(v) permit the purchaser of the Company’s stock or assets to deliver to the
optionholders the same kind of consideration that is delivered to the
stockholders of the Company in cancellation of such Options in an amount equal
to the value of the Shares as determined by the Board in good faith, the
optionholder would have received had the Option been exercised (to the extent
then exercisable or to a greater extent, including in full, as the Board may
determine), less the option price therefor, or (vi) take any combination (or
none) of the foregoing actions.

 

For
purposes of the Plan, a “Change in Control” shall occur if (a) any person or
other entity (other than any of the Company’s subsidiaries), including any
person as defined in Section 13(d)(3) of the Exchange Act, other than (1) (A) 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., DLJMB Partners III GmbH & Co. KG, Millennium Partners
II, L.P. and MBP III Plan Investors, L.P. (the “DLJMB Funds”), (B) any shareholder,
member or general or limited partner of any DLJMB Fund (a “DLJMB  Partner”), and any corporation, partnership, limited
liability company, or other entity that is an Affiliate (as defined below) of
any DLJMB Partner (collectively, “DLJMB  Affiliates”), (C) any managing director, general
partner, director, limited partner, officer or employee of any DLJMB Fund or
any DLJMB Affiliate, or any spouse, lineal descendant, sibling, parent, heir,
executor, administrator, testamentary trustee, legatee or beneficiary of any of
the foregoing persons described in this clause (C) (collectively, “DLJMB  Associates”), or (D)
any trust the beneficiaries of which, or any corporation, limited liability
company or partnership the stockholders, members or general or limited partners
of which, include only such DLJMB Funds, DLJMB Affiliates, DLJMB Associates,
their spouses or other lineal descendants, or (2) any “group” (within the
meaning of Section 13(d)(3) of the Exchange Act) of which any DLJMB Fund is
part, becomes the beneficial owner, as defined in Rule 13d-3 of the

 

11

 

Exchange
Act, directly or indirectly, in a single transaction or a series of related
transactions, by way of merger, consolidation or other business combination,
securities of the Company representing more than fifty-one percent (51%) of the
total combined voting power of all classes of capital stock of the Company (or
its successor) normally entitled to vote for the election of directors of the
Company or (b) the sale of all or substantially all of the property or assets
of the Company to any unaffiliated person or entity other than one of the
Company’s subsidiaries is consummated. 
For purposes of this Plan, an “Affiliate” means, with respect to any person, any other
person directly or indirectly controlling, controlled by or under common
control with such person; provided that no securityholder of the Company or any
parent corporation or subsidiary corporation of the Company shall be deemed an
Affiliate of any person solely by reason of an investment in the Company or any
parent corporation or subsidiary corporation of the Company.  For the purposes of this Plan, the term “control” (including,
with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”), as used with respect to any
person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such person,
whether through the ownership of voting securities, by contract or otherwise.

 

8.             Right to Terminate Employment or
Service

 

The
Plan shall not impose any obligation on the Company or on any subsidiary
corporation or parent corporation thereof to continue the employment or service
of any Optionholder and it shall not impose any obligation on the part of any
Optionholder to remain in the employ or service of the Company or any
subsidiary corporation or parent corporation thereof.

 

9.             Compliance with Legal Requirements

 

The
Committee may refuse to issue or transfer any Shares or other consideration
under an Option if, acting in its sole discretion, it determines that the
issuance or transfer of such Shares or such other consideration might violate
any applicable law or regulation or entitle the Company to recover the same
under Section 16(b) of the Exchange Act, and any payment tendered to the
Company by an Optionholder in connection therewith shall be promptly refunded
to the relevant Optionholder.  Without
limiting the generality of the foregoing, no Option granted hereunder shall be
construed as an offer to sell securities of the Company, unless and until the
Committee in its sole discretion has determined that any such offer, if made,
would be in compliance with all applicable requirements of the federal and
state securities laws and any other laws to which such offer, if made, would be
subject.

 

10.          Issuance of Stock Certificates;
Legends; Payment of Expenses

 

Upon
any exercise of an Option or acquisition of Shares granted hereunder and
payment of the purchase price therefor, a certificate or certificates
representing the Shares shall be issued by the Company in the name of the
person exercising the Option and shall be delivered to or upon the order of
such person.

 

12

 

The
Company may endorse such legend or legends upon the certificates for Shares
issued pursuant to the Plan and may issue such “stop transfer” instructions to
its transfer agent in respect of such Shares as the Committee, in its sole
discretion, determines to be necessary or appropriate to (a) prevent a
violation of, or to comply with the procedures for an exemption from, the
registration requirements of the Securities Act, (b) implement the provisions
of the Plan and any agreement between the Company and the Optionholder with
respect to such Shares or (c) permit the Company to determine the occurrence of
a disqualifying disposition, as described in Section 421(b) of the Code, of
Shares transferred upon exercise of an Incentive Option granted under the Plan.

 

The
Company shall pay all issue or transfer taxes with respect to the issuance or
transfer of Shares, as well as all fees and expenses necessarily incurred by
the Company in connection with such issuance or transfer, except fees and
expenses which may be necessitated by the filing or amending of a registration
statement under the Securities Act, which fees and expenses shall be borne by
the recipient of the Shares unless such registration statement has been filed
by the Company for its own corporate purposes (and the Company so states).

 

All
Shares issued as provided herein shall be fully paid and nonassessable to the
extent permitted by law.

 

11.          Withholding Taxes

 

All
payments or distributions of Options or Awards made pursuant to the Plan shall
be net of any amounts required to be withheld pursuant to applicable federal,
state and local tax withholding requirements. 
If the Company proposes or is required to distribute Class B Common
Stock pursuant to the Plan, it may require the recipient to remit to it or to
the corporation that employs such recipient an amount sufficient to satisfy
such tax withholding requirements prior to the delivery of any certificates for
such Class B Common Stock.  In lieu
thereof, the Company or the employing corporation shall have the right to
withhold the amount of such taxes from any other sums due or to become due from
such corporation to the recipient as the Committee shall prescribe.  The Committee may, in its discretion and
subject to such rules as it may adopt (including any as may be required to
satisfy applicable tax and/or non-tax regulatory requirements), permit an
optionee or award or right holder to pay all or a portion of the federal, state
and local withholding taxes arising in connection with any Option or Award
consisting of shares of Class B Common Stock by electing to have the Company
withhold shares of Class B Common Stock having a Fair Market Value equal to the
amount of tax to be withheld, such tax calculated at rates required by statute
or regulation; provided that any such shares withheld shall have been owned by
the optionee or award or right holder for at least six (6) months.

 

12.          Listing of Shares and Related Matters

 

If at
any time the Committee shall determine that the listing, registration or
qualification of the Shares subject to an Option or other right to acquire
Shares on any securities exchange or under any applicable law, or the consent
or approval of any

 

13

 

governmental
regulatory authority, is necessary or desirable as a condition of, or in
connection with, the granting of an Option or Award, or the issuance of Shares
thereunder, such Option or Award may not be exercised in whole or in part
unless such listing, registration, qualification, consent or approval shall
have been effected or obtained free of any conditions not acceptable to the
Committee.

 

13.          Amendment of the Plan

 

The
Board may, from time to time, amend the Plan, provided that no amendment shall
be made, without the approval of the stockholders of the Company, that will (a)
increase the total number of Shares issuable under the Plan or the maximum
number of Shares for which Options and Awards may be granted to any one
Optionholder (other than an increase resulting from an adjustment provided for
in Section 7 hereof), (b) reduce the exercise price of any Incentive Option
granted hereunder or (c) modify the provisions of the Plan relating to
eligibility.  The Committee shall be
authorized to amend the Plan and the Options granted thereunder to permit the
Incentive Options granted thereunder to qualify as “incentive stock options”
within the meaning of Section 422 of the Code and the Treasury Regulations
promulgated thereunder.  The rights and
obligations under any Option or Award granted before amendment of the Plan or
any unexercised portion of such Option or Award shall not be adversely affected
by amendment of the Plan or the Option or Award without the consent of the
holder of such Option or Award.

 

14.          Termination or Suspension of the Plan

 

The
Board may at any time suspend or terminate the Plan.  The Plan, unless sooner terminated under Section 17 or by action
of the Board, shall terminate at the close of business on the Termination
Date.  Options or Awards may not be
granted while the Plan is suspended or after it is terminated.  Rights and obligations under any Option or
Award granted while the Plan is in effect shall not be altered or impaired by
suspension or termination of the Plan, except upon the consent of the person to
whom the Option or other right was granted. 
The power of the Committee to construe and administer any Options or Awards
under Section 3 that are granted prior to the termination or suspension of the
Plan shall continue after such termination or during such suspension.

 

15.          Governing Law

 

The
Plan, the Options and Awards granted hereunder and all related matters shall be
governed by, and construed and enforced in accordance with, the laws of the
State of Delaware from time to time obtaining.

 

16.          Partial Invalidity

 

The
invalidity or illegality of any provision herein shall not be deemed to affect
the validity of any other provision.

 

14

 

17.          Effective Date

 

The
Plan shall become effective at 5:00 P.M., New York City time, on the Effective
Date; provided, however, that if the Plan is not approved by a vote of the
stockholders of the Company at an annual meeting or any special meeting, or by
unanimous written consent of the stockholders, within (12) months after the
Effective Date, the Plan and any Options and Awards granted thereunder shall
terminate.

 

15Exhibit
10.9

 

JOSTENS,
INC.

EXECUTIVE
SEVERANCE PAY PLAN

(2003 REVISION)

 

 

As Adopted
Effective February 26, 2003

 

 

JOSTENS,
INC.

EXECUTIVE
SEVERANCE PAY PLAN (2003 REVISION)

 

TABLE
OF CONTENTS

 

	
  ARTICLE
  1 INTRODUCTION.

  	
   

  
	
  1.1.

  	
  Plan
  Name.

  	
   

  
	
  1.2.

  	
  Plan
  Type.

  	
   

  
	
  1.3.

  	
  Plan Purpose.

  	
   

  
	
  1.4.

  	
  Plan Background.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 CONSTRUCTION, INTERPRETATIONS AND
  DEFINITIONS.

  	
   

  
	
  2.1.

  	
  Governing Law.

  	
   

  
	
  2.2.

  	
  Headings.

  	
   

  
	
  2.3.

  	
  Number and Gender.

  	
   

  
	
  2.4.

  	
  Officers.

  	
   

  
	
  2.5.

  	
  Definitions.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  3 ELIGIBILITY FOR BENEFITS.

  	
   

  
	
  3.1.

  	
  Eligibility Requirements.

  	
   

  
	
  3.2.

  	
  Other Special Benefits.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  4 BENEFITS.

  	
   

  
	
  4.1.

  	
  Compensation
  and Benefits Through Termination Date.

  	
   

  
	
  4.2.

  	
  Cash Payment.

  	
   

  
	
  4.3.

  	
  COBRA Premiums.

  	
   

  
	
  4.4.

  	
  Continuation of
  Perquisites.

  	
   

  
	
  4.5.

  	
  Limitation on Benefits.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  5 SOURCE OF PAYMENTS; NATURE OF INTEREST.

  	
   

  
	
  5.1.

  	
  Establishment of Trust.

  	
   

  
	
  5.2.

  	
  Source of Payments.

  	
   

  
	
  5.3.

  	
  Status of Plan.

  	
   

  
	
  5.4.

  	
  Non-assignability of
  Benefits.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  6 ADMINISTRATION.

  	
   

  
	
  6.1.

  	
  Administrator.

  	
   

  
	
  6.2.

  	
  Plan Rules.

  	
   

  
	
  6.3.

  	
  Administrator’s Discretion.

  	
   

  
	
  6.4.

  	
  Specialist’s Assistance.

  	
   

  
	
  6.5.

  	
  Indemnification.

  	
   

  
	
  6.6.

  	
  Benefit Claim Procedure.

  	
   

  
	
  6.7.

  	
  Disputes.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  7 MISCELLANEOUS.

  	
   

  
	
  7.1.

  	
  Amendment and Termination.

  	
   

  
	
  7.2.

  	
  Withholding and Offsets.

  	
   

  
	
  7.3.

  	
  Other Benefits.

  	
   

  

 

i

 

	
  7.4.

  	
  No Employment Rights
  Created.

  	
   

  
	
  7.5.

  	
  Successors.

  	
   

  
	
  7.6.

  	
  Nature of Company Action.

  	
   

  
	
  7.7.

  	
  Delegation by
  Chief Executive Officer.

  	
   

  
	
  7.8.

  	
  Waiver.

  	
   

  
	
  7.9.

  	
  Effect
  of Plan Benefits on Other Severance Plans.

  	
   

  
	
  7.10.

  	
  Related Plans.

  	
   

  
	
  7.11.

  	
  Survival.

  	
   

  

 

ii

 

JOSTENS,
INC.

EXECUTIVE
SEVERANCE PAY PLAN (2003 REVISION)

 

ARTICLE 1.

 

INTRODUCTION

1.1.                              Plan Name.

 

The
name of the Plan is the “Jostens, Inc. Executive Severance Pay Plan (2003
Revision).”

 

1.2.                              Plan Type.

 

The Plan is an unfunded plan maintained by the Company
primarily for the purpose of providing benefits for a select group of
management or highly compensated employees. 
The Plan is also intended to be unfunded for tax purposes.  The Plan will be construed in a manner that
gives effect to such intent.

 

1.3.                              Plan Purpose.

 

The purpose of the Plan is to provide severance
benefits to Eligible Employees who experience a Qualifying Termination.

 

1.4.                              Plan Background.

 

The Plan is an amendment and restatement of the
Jostens, Inc. Executive Severance Pay Plan as originally adopted effective July
1, 1999.

 

1

 

ARTICLE 2.

 

CONSTRUCTION,
INTERPRETATIONS AND DEFINITIONS

 

2.1.                              Governing Law.

 

To the extent that state law is not preempted by
provisions of ERISA or any other laws of the United States, all questions
pertaining to the construction, validity, effect and enforcement of this Plan
will be determined in accordance with the internal, substantive laws of the
State of Minnesota, without regard to the conflict of laws principles of the
State of Minnesota or of any other jurisdiction.

 

2.2.                              Headings.

 

The headings of articles and sections are included
solely for convenience.  If there is a
conflict between a heading and the text of the Plan, the text will control.

 

2.3.                              Number and Gender.

 

Whenever appropriate, the singular number may be read
as the plural, the plural may be read as the singular and a reference to one
gender may be read as a reference to the other.

 

2.4.                              Officers.

 

Any reference in this Plan to a particular officer of
the Company also refers to the functional equivalent of such officer if the
title or responsibilities of that office change.

 

2.5.                              Definitions.

 

The definitions set forth in this Section 2.5 apply in construing the
Plan unless the context otherwise indicates.

 

Administrator.  The “Administrator” of the Plan is the
Compensation Committee of the Board or the person to whom administrative
responsibilities are delegated pursuant to Section 6.1, as the context
requires.

 

Affiliate.  An “Affiliate” is:

 

(a)                                  any
corporation at least a majority of whose outstanding securities ordinarily
having the right to vote at elections of directors is owned directly or
indirectly by the Company; or

 

(b)                                 any
other form of business entity in which the Company, by virtue of a direct or
indirect ownership interest, has the right to elect a majority of the members
of such entity’s governing body.

 

Base Pay.  The “Base Pay” of an Eligible Employee is
his or her monthly base salary from the Company at the rate in effect
immediately before his or her Termination Date.  Base Pay includes only regular cash salary and is determined
before any reduction or deduction of any kind.

 

Board.  The “Board” is the board of directors of the
Company.  When the Plan provides for an
action to be taken by the Board, the action may be taken by any committee or
individual authorized to take such action pursuant to a proper delegation by
the board of directors of the Company.

 

2

 

Code.  The “Code” is the Internal Revenue Code of 1986, as amended, any
successor provisions thereto, any regulations promulgated thereunder, and any
other binding pronouncements of any agency of the federal government that has
jurisdiction with respect thereto.

 

Company.  The “Company” is Jostens, Inc., and any Successor.

 

Continuation Period.  The “Continuation Period” with respect to an
Eligible Employee who has experienced a Qualifying Termination is the period
that begins on the Eligible Employee’s Termination Date and ends on the last
day of the

 

(a)                                  thirtieth
month that begins after the Eligible Employee’s Termination Date if,
immediately prior to the Termination Date, the Eligible Employee was the Chief
Executive Officer of the Company, or

 

(b)                                 eighteenth
month that begins after the Eligible Employee’s Termination Date if,
immediately prior to the Termination Date, the Eligible Employee was a member
of the Company’s Executive Team as selected by the Board, or

 

(c)                                  twelfth
month that begins after the Eligible Employee’s Termination Date if,
immediately prior to the Termination Date, the Eligible Employee was the
Company’s Treasurer, or

 

(d)                                 ninth
month that begins after the Eligible Employee’s Termination Date in the case of
any other Eligible Employee.

 

Effective Date.  The “Effective Date” of this restated Plan
is January    , 2003.

 

Eligible Employee.

 

(a)                                  An
“Eligible Employee” is an individual who, immediately prior to his or her
Termination Date, is (i) employed by the Company as either (1) the chief
executive officer of the Company elected by the Board, (2) a member of the
Executive Team, (3) the Treasurer of the Company, or (4) a management or highly
compensated employee, as determined by the Company’s Chief Executive Officer,
selected as an Eligible Employee by the Company’s Chief Executive Officer and
(ii) not a party to a separate written agreement with the Company which
provides for severance benefits, unless the agreement expressly provides that
such severance benefits are in addition to the benefits provided pursuant to
the Plan.  An individual will become an
Eligible Employee pursuant to clause (i)(4) only if he or she receives a
written notice signed by the Company’s Chief Executive Officer indicating that
the individual has been selected as an Eligible Employee for purposes of the
Plan, effective as of the date specified in the written notice.

 

(b)                                 In
the case of an individual who is selected as an Eligible Employee pursuant to
Subsection (a)(i)(4), the Company’s Chief Executive Officer may at any time
prior to the individual’s Termination Date, but not thereafter, determine that
the individual is no longer an Eligible Employee, in which case the individual
will not have any rights arising under or in connection with the Plan on and
after the date of the Chief Executive Officer’s determination or, if later, the
effective date of the determination.

 

(c)                                  For
purposes of those provisions of the Plan relating to the period after his or
her Termination Date, an Eligible Employee who has a Qualifying Termination
will continue

 

3

 

to be an Eligible
Employee until he or she ceases to be entitled to benefits under the Plan in
connection with the Qualifying Termination.

 

ERISA.  “ERISA” is the Employee Retirement Income
Security Act of 1974, as amended.  Any
reference to a specific provision of ERISA includes a reference to such
provision as it may be amended from time to time and to any successor
provision.

 

Executive Team.  The “Executive Team” is the group of
officers of the Company who are elected by the Board and designated to report
directly to the Chief Executive Officer of the Company.

 

Other Arrangement.  An “Other Arrangement” is an
employee benefit plan or other plan, policy or practice of the Company or any
other agreement between the Eligible Employee and the Company, other than the
Plan.

 

Plan.   The “Plan” is the Jostens, Inc. Executive
Severance Pay Plan (2003 Revision), as amended from time to time.

 

Qualifying Termination.

 

(a)                                  Subject
to Subsection (b), a “Qualifying Termination” with respect to an Eligible
Employee is a complete termination of his or her employment relationship with
the Company and all Affiliates on or after the Effective Date:

 

(i)                                     by
the Company for any reason other than the Eligible Employee’s poor or
unsatisfactory job performance or misconduct;

 

(ii)                                  by
the Eligible Employee due to:

 

(1)                                  a
material reduction in the Eligible Employee’s title(s), status, position(s),
authority, duties or responsibilities as an executive of the Company other than
such a reduction caused by an insubstantial and inadvertent action that is
remedied by the Company promptly after the Chief Executive Officer of the
Company (or the Chair of the Compensation Committee of the Board if the
Eligible Employee in question is the Chief Executive Officer of the Company)
becomes aware of the reduction;

 

(2)                                  a
reduction by the Company in the Eligible Employee’s Base Pay, or an adverse
change in the form or timing of the payment thereof; or

 

(3)                                  the
Company’s requiring the Eligible Employee to be based more than 30 miles from
where his or her office is located immediately prior to the change, except for
required travel on the Company’s business; or

 

(4)                                  the
failure of the Company to obtain from any Successor the assent to this Plan
contemplated by Section 7.5.

 

(b)                                 An
Eligible Employee will not be considered to have experienced a Qualifying
Termination if:

 

4

 

(i)                                     the
Eligible Employee dies, resigns, retires or otherwise voluntarily terminates
employment under any circumstance not described in Subsection (a)(ii);

 

(ii)                                  the
Eligible Employee accepts another position with the Company;

 

(iii)                               in
connection with the sale, transfer or other disposition by the Company of some
or all of its assets, the Eligible Employee becomes an employee of the acquirer
or an entity that controls, is controlled by or is under common control with
the acquirer; or

 

(iv)                              in
connection with the sale, transfer or other disposition by the Company of some
or all of its interest in an Affiliate pursuant to which the entity ceases to
be an Affiliate, the Eligible Employee becomes an employee of the former
Affiliate or an entity that controls, is controlled by or is under common
control with the former Affiliate or any successor to the former Affiliate.

 

(c)                                  An
Eligible Employee’s continued employment does not constitute consent to, or
waiver of any rights arising in connection with, any circumstance in Subsection
(a)(ii).

 

Release.  A “Release” is a written instrument, in form
prescribed by the Company and signed by the Eligible Employee, under which the
Eligible Employee releases the Company, each Affiliate and their respective
predecessors and successors, and the directors, officers, employees and agents
of each of them, from any and all claims the Eligible Employee may have against
any of them by reason of his or her employment or the termination of such
employment.  The Release will waive all
claims the Eligible Employee may have under the Age Discrimination in
Employment Act, the Older Workers Benefit Protection Act, the Americans with
Disabilities Act, the Employee Retirement Income Security Act of 1974, and such
other statutes and rules of law as the Company may deem advisable.

 

Successor.  A “Successor” is any entity that succeeds
to, or has the practical ability to control (either immediately or solely with
the passage of time), the Company’s business directly, by merger, consolidation
or other form of business combination, or indirectly, by purchase of the
Company’s outstanding securities ordinarily having the right to vote at the
election of directors, all or substantially all of its assets or otherwise.

 

Termination Date.  The “Termination Date” of an Eligible
Employee is his or her last day of employment in connection with a Qualifying
Termination, without regard to any payments or benefits provided pursuant to
the Plan.

 

Trust.  The “Trust” is the trust or
trusts, if any, established by the Company pursuant to Section 5.1.

 

Trustee.  The “Trustee” is the one or more
banks or trust companies that at the relevant time has or have been appointed
by the Company to act as Trustee of the Trust.

 

5

 

ARTICLE 3.

 

ELIGIBILITY
FOR BENEFITS

 

3.1.                              Eligibility Requirements.

 

An Eligible Employee is entitled to the benefits
provided in Article 4 upon his or her Qualifying Termination only if he or
she signs and delivers to the Company a Release and does not rescind the
Release within any applicable rescission period.  The Company may, on a case-by-case basis, elect not to require a
Release.  Any such election by the Company
with respect to a particular Eligible Employee applies only to that Eligible
Employee and does not in any way limit the Company’s right to require any other
Eligible Employee to provide the Release.

 

3.2.                              Other Special Benefits.

 

The Company may (a) provide severance benefits to
any Eligible Employee who is not otherwise entitled to such benefits and
(b) provide severance benefits in excess of the amount provided by the
Plan to any Eligible Employee who is entitled to benefits under the Plan.  In either case, the amount and type of such
benefits must be set forth in a written instrument signed on behalf of the
Company by its Chief Executive Officer (or the Chair of the Compensation
Committee of the Board if the Eligible Employee in question is the Company’s
Chief Executive Officer) but will be deemed to be provided pursuant to the
Plan.  Any special benefit provided to
an Eligible Employee pursuant to this Section 3.2 applies only to that Eligible
Employee and does not in any way obligate the Company to provide any special
benefit to any other Eligible Employee.

 

6

 

ARTICLE 4.

 

BENEFITS

 

4.1.                              Compensation and Benefits Through
Termination Date.

 

An Eligible Employee who has a Qualifying Termination
will continue to receive his or her compensation, continue to be eligible for
perquisites for which he or she is otherwise eligible and continue to
participate in Company benefit plans, programs and arrangements in accordance
with their terms through his or her Termination Date.  As of the Termination Date, the Eligible Employee will cease to
earn any additional compensation, cease to be eligible for perquisites and
cease to participate in Company benefit plans, programs and arrangements except
as otherwise provided by the terms of such plans, programs and arrangements
with respect to former employees.

 

4.2.                              Cash Payment.

 

(a)                                  Subject
to Sections 4.5 and 7.3(b), an Eligible Employee who has a Qualifying
Termination and who satisfies the eligibility requirements described in Section
3.1 will receive a cash payment in an amount equal to the sum of

 

(i)                                     the
Eligible Employee’s monthly Base Pay multiplied by

 

(1)                                  30
if, immediately prior to his or her Termination Date, the Eligible Employee was
the Chief Executive Officer of the Company, or

 

(2)                                  18
if, immediately prior to his or her Termination Date, the Eligible Employee was
a member of the Company’s Executive Team, or

 

(3)                                  12
if, immediately prior to his or her Termination Date, the Eligible Employee was
the Company’s Treasurer, or

 

(4)                                  9
in the case of any other Eligible Employee; plus

 

(ii)                                  if,
and only if, the Eligible Employee’s Termination Date is after the end of the
fourth month of the Company’s fiscal year that includes the Termination Date,
the annual incentive award, if any, that the Eligible Employee would have
earned for the Company’s fiscal year that includes the Termination Date had he
or she remained employed through the last day of the fiscal year, based on his
or her base salary at the annual rate in effect immediately prior to his or her
Termination Date, multiplied by a fraction, the numerator of which is the
number of calendar months that have commenced during the fiscal year on or
before the Termination Date and the denominator of which is 12.  The payment pursuant to this clause is in
lieu of any cash bonus payment to which the Eligible Employee may otherwise be
entitled under the management incentive plan or any other annual bonus plan
maintained by the Company or an Affiliate for the period that includes the
Termination Date;

 

(b)                                 The
amount determined under Subsection (a)(i) will be paid in periodic payments
made on the same basis as the Eligible Employee’s Base Pay and the amount
determined pursuant to Subsection (a)(ii) will be paid on the date on which the
annual incentive award would have been paid had the Eligible Employee remained
an Eligible Employee,

 

7

 

subject to the Company’s retained right to at any time
cause any remaining payments to be paid in a single lump sum payment; provided,
that in no case will payments be made before the end of any rescission period
arising under applicable law or Plan rule in connection with the Eligible
Employee’s Release.  As a condition to
making a lump sum payment to an Eligible Employee, the Company may require the
Eligible Employee to enter into a written agreement, in form specified by the
Company, pursuant to which the Eligible Employee is required to repay to the
Company any portion of the payment that he or she was not entitled to receive
or is not entitled to retain.

 

(c)                                  The
cash payments pursuant to Subsection (a) are allocable to the Release and the
covenants in Section 4.5(d) as follows:

 

(i)                                     30%
of the cash payments is allocable to the Release; and

 

(ii)                                  70%
of the cash payments is allocable to the covenants in Section 4.5(d).

 

4.3.                              COBRA Premiums.

 

(a)                                  Subject
to Sections 4.5 and 7.3(b), if an Eligible Employee has a Qualifying
Termination and satisfies the eligibility requirements described in Section
3.1, then, through the end of the Eligible Employee’s Continuation Period or,
if earlier, through the last day of the Eligible Employee’s continuation
coverage pursuant to Code Section 4980B and Part 6 of Subtitle B of Title I of
ERISA or in the case of group life insurance, comparable provisions of
applicable state law (“COBRA”), the Company will reimburse the Eligible
Employee for a portion of his or her COBRA premiums under the Company’s group
medical, dental, vision and life plans. 
The amount of the reimbursement pursuant to this section for any period
is an amount which, prior to any income or other taxes applicable to the
reimbursement, equals the amount by which the COBRA premium for the period
exceeds the premium paid for the period for the coverage in question by
similarly situated active employees of the Company.  In order to receive reimbursements pursuant to this section, an
Eligible Employee must comply with any reimbursement policies and procedures specified
by the Company.

 

(b)                                 To
the extent an Eligible Employee incurs a tax liability (including federal,
state and local taxes and any interest and penalties with respect thereto) in
connection with a benefit provided pursuant to Subsection (a) which he or she
would not have incurred had he or she been an active employee of the Company
participating in the Company’s benefit plans, the Company will make a payment
to the Eligible Employee in an amount equal to such tax liability plus an
additional amount sufficient to permit the Eligible Employee to retain a net
amount after all taxes (including penalties and interest) equal to the initial
tax liability in connection with the benefit. 
For purposes of applying the foregoing, an Eligible Employee’s tax rate will
be deemed to be the highest statutory marginal state and federal tax rate (on a
combined basis) then in effect.  The
payment pursuant to this subsection will be made within ten business days after
the Eligible Employee’s remittal of a written request therefor accompanied by a
statement indicating the basis for an amount of the liability.

 

4.4.                              Continuation of Perquisites.

 

Subject to Sections 4.5 and 7.3(b), if an Eligible
Employee has a Qualifying Termination and satisfies the eligibility
requirements described in Section 3.1, then, through the end of the Eligible

 

8

 

Employee’s Continuation Period, the Company will provide the Eligible
Employee with the same perquisites he or she was entitled to receive
immediately prior to his or her Termination Date, subject to any reductions
applicable to similarly situated active employees of the Company.

 

4.5.                              Limitation on Benefits.

 

(a)                                  If,
during an Eligible Employee’s Continuation Period, the Eligible Employee again
becomes an employee of the Company or any Affiliate, the Eligible Employee will
not be entitled to any further benefits pursuant to the Plan.  If the Eligible Employee subsequently has
another Qualifying Termination and is eligible to receive benefits pursuant to
the Plan in connection with the Qualifying Termination, the amount of the
benefit will be reduced by the amount or value of any benefits he or she
received pursuant to the Plan in connection with any previous Qualifying
Termination.  The Administrator will
determine how the reduction will be made.

 

(b)                                 If,
during an Eligible Employee’s Continuation Period, the Eligible Employee
performs any services for which he or she receives, directly or indirectly,
remuneration as an employee, consultant, sole proprietor, partner, member,
owner or otherwise, other than the services provided as an employee of the
Company or an Affiliate, then: (i) the amount of his or her cash payment
pursuant to Section 4.2(a)(i) for any period will be reduced by the rate of his
or her base salary or the equivalent of base salary, as determined by the
Administrator, for the period; (ii) the Eligible Employee will continue to be
entitled to receive the amount, if any, described in Section 4.2(a)(ii) and
(iii) reimbursements pursuant to Section 4.3 and perquisites pursuant to
Section 4.4 will immediately cease.  The
Eligible Employee must promptly notify the Administrator of any such subsequent
services, the rate of his or her base salary or remuneration and any changes in
the rate of his or her base salary or remuneration.

 

(c)                                  If
the Company notifies the Administrator that an Eligible Employee who has had a
Qualifying Termination and would otherwise be entitled to receive benefits in
connection with the Qualifying Termination is either competing with the Company
or disclosing confidential information -

 

(i)                                     The
Administrator will temporarily suspend any payments pursuant to Section 4.2
allocable to the covenants in this section pursuant to Section 4.2(c)(ii) and
all reimbursements pursuant to Section 4.3 and perquisites pursuant to Section
4.4 to which the Eligible Employee would otherwise be entitled pursuant to the
Plan.  The Administrator will promptly
inform the Eligible Employee of the suspension and provide the Eligible Employee
with a reasonable opportunity to establish to the Administrator’s reasonable
satisfaction that he or she is not competing with the Company or disclosing
confidential information.  The
Administrator may, but is not required to, seek additional information from the
Company, the Eligible Employee or any other person.  Within a reasonable period of time after the Administrator
receives a response from the Eligible Employee, the Administrator will make a
final determination as to whether the Participant is competing with the Company
or disclosing confidential information based on the information then available
to the Administrator and will communicate the final determination to the
Eligible Employee and the Company.

 

(ii)                                  If
the Administrator’s final determination is that the Eligible Employee is not
competing with the Company or disclosing confidential information, the

 

9

 

Administrator will lift the suspension on benefits and
the Company will promptly provide any benefit that would have been provided
during the suspension period but for the suspension, with no adjustment for
lost interest or earnings.  Thereafter,
any remaining benefits will be provided as if the suspension had not occurred.

 

(iii)                               If
the Administrator’s final determination is that the Eligible Employee is
competing with the Company or disclosing confidential information, then the
Eligible Employee is not entitled to any further payments pursuant to Section
4.2 allocable to the covenants in this section pursuant to Section 4.2(c)(ii)
or any further reimbursements pursuant to Section 4.3 or perquisites pursuant
to Section 4.4 or to retain any prior payments pursuant to Section 4.2
allocable to the covenants in this section pursuant to Section 4.2(c)(ii) or
reimbursements previously provided pursuant to Section 4.3 or perquisites (or
the value of perquisites) previously provided pursuant to Section 4.4.

 

(iv)                              For
purposes of applying this Subsection (c) -

 

(1)                                  An
Eligible Employee will be deemed to be competing with the Company if the Administrator
determines that the Eligible Employee, directly or indirectly, alone or as a
partner, officer, director, shareholder, sole proprietor, employee or
consultant of any other firm or entity (A) has engaged, is engaging or intends
to engage in any commercial activity in competition with any part of the
business of the Company or any Affiliate as conducted at the time in question
or (B) has solicited or interfered, is soliciting or interfering or intends to
solicit or interfere with the relationship of the Company or any Affiliate with
any customers, suppliers, employees or sales representatives of the Company or
any Affiliate.  For purposes of applying
the foregoing, “shareholder” does not include beneficial ownership of less than
one percent of the combined voting power of all issued and outstanding voting
securities of a publicly held corporation the stock of which is traded on a
major stock exchange or quoted on NASDAQ.

 

(2)                                  An
Eligible Employee will be deemed to be disclosing confidential information if
the Administrator determines that the Eligible Employee has disclosed, is
disclosing or intends to disclose any confidential information.  Confidential information means any
information relating to the business or affairs of the Company or any Affiliate,
including but not limited to information relating to financial statements,
customer identities, potential customers, employees, sales representatives,
suppliers, servicing methods, equipment, programs, strategies and information,
analyses, profit margins or other proprietary information used by the Company
or Affiliate; provided, however, that confidential information does not include
any information which is in the public domain or becomes known in the industry
through no wrongful act on the part of an Eligible Employee.

 

(d)                                 If
an Eligible Employee’s Release is at any time determined to be partially or
wholly unenforceable or ineffective in any respect for any reason, then the
Eligible Employee is not entitled to any further payments pursuant to Section
4.2 allocable to the Release

 

10

 

pursuant
to Section 4.2(c)(i) or any further reimbursements pursuant to Section 4.3 or
perquisites pursuant to Section 4.4 or to retain any prior payments pursuant to
Section 4.2 allocable to the Release pursuant to Section 4.2(c)(i) or
reimbursements previously provided pursuant to Section 4.3 or perquisites (or
the value of perquisites) previously provided pursuant to Section 4.4.

 

11

 

ARTICLE 5.

 

SOURCE
OF PAYMENTS; NATURE OF INTEREST

 

5.1.                              Establishment of Trust.

 

The Company may establish a Trust.  The Trust must (a) be a grantor trust with
respect to which the Company is treated as grantor for purposes of Code Section
677, (b) not cause the Plan to be funded for purposes of Title I of ERISA and
(c) provide that Trust assets will, upon the insolvency of the Company, be used
to satisfy claims of the Company’s general creditors.  The Company may from time to time transfer to the Trust cash,
marketable securities or other property acceptable to the Trustee.

 

5.2.                              Source of Payments.

 

The Trustee will make payments from the Trust in
satisfaction of the Company’s obligations under the Plan in accordance with the
terms of the Trust.  The Company is
responsible for paying any benefits that are not paid from the Trust.

 

5.3.                              Status of Plan.

 

Nothing contained in the Plan or Trust is to be
construed as providing for assets to be held for the benefit of any Eligible
Employee, the Eligible Employee’s only interest under the Plan being the right
to receive the benefits as provided in the Plan.  The Trust is established only for the convenience of the Company
and no Eligible Employee has any interest in the assets of the Trust.  To the extent an Eligible Employee acquires
a right to receive benefits under the Plan, such right is no greater than the
right of any unsecured general creditor of the Company.

 

5.4.                              Non-assignability of Benefits.

 

The benefits payable under the Plan and the right to
receive future benefits under the Plan may not be anticipated, alienated, sold,
transferred, assigned, pledged, encumbered or subjected to any charge or legal
process.

 

12

 

ARTICLE 6.

 

ADMINISTRATION

 

6.1.                              Administrator.

 

Except as otherwise expressly provided in the Plan,
the general administration of the Plan and the duty to carry out its provisions
is vested in the Compensation Committee of the Board.  The Compensation Committee of the Board may delegate such duty or
any portion thereof to any person and may from time to time revoke such
authority and delegate it to another person. 
Any such delegation to any employee or officer of the Company will
automatically terminate when he or she ceases to be an employee or
officer.  No person may act as the
Administrator in connection with any decision that directly affects his or her
own benefit under the Plan.

 

6.2.                              Plan Rules.

 

The Administrator has the discretionary power and
authority to make such rules as the Administrator determines to be consistent
with the terms, and necessary or advisable in connection with the
administration, of the Plan and to modify or rescind any such rules.  A rule includes any rule, policy, procedure
or practice adopted by the Administrator.

 

6.3.                              Administrator’s Discretion.

 

The Administrator has the discretionary power and
authority to make all determinations necessary for administration of the Plan,
except those determinations that the Plan requires others to make, and to
construe, interpret, apply and enforce the provisions of the Plan and Plan
rules whenever necessary to carry out its intent and purpose and to facilitate
its administration, including, without limitation, the discretionary power and
authority to remedy ambiguities, inconsistencies, omissions and erroneous
benefit calculations.  In the exercise
of its discretionary power and authority, the Administrator will treat all
persons determined by the Administrator to be similarly situated in a uniform
manner.  All acts and decisions of the
Administrator made in good faith are binding on all interested persons.

 

6.4.                              Specialist’s Assistance.

 

The Administrator may retain such actuarial,
accounting, legal, clerical and other services as may reasonably be required in
the administration of the Plan, and may pay reasonable compensation for such
services.  All costs of administering
the Plan will be paid by the Company.

 

6.5.                              Indemnification.

 

The Company will indemnify and hold harmless, to the
extent permitted by law, each director, officer and employee of the Company
against any and all liabilities, losses, costs and expenses (including legal
fees) of every kind and nature that may be imposed on, incurred by or asserted
against such person at any time by reason of such person’s services in
connection with the Plan, but only if such person did not act dishonestly or in
bad faith or in willful violation of the law or regulation under which such
liability, loss, cost or expense arises. 
The Company has the right, but not the obligation, to select counsel and
control the defense and settlement of any action for which a person may be
entitled to indemnification under this provision.

 

13

 

6.6.                              Benefit Claim Procedure.

 

(a)                                  Any
claim by an individual of entitlement to benefits under the Plan in connection
with a particular termination of employment must be filed in writing with the
Administrator not later than 60 days after the individual’s termination of
employment.  Any objection by an Eligible
Employee to any benefit or action under the Plan must be filed in writing with
the Administrator not later than 60 days after the Eligible Employee first
receives the objectionable benefit or first knows or should have known of the
objectionable action.

 

(b)                                 The
Administrator, not later than 90 days after receipt of such claim, will render
a written decision to the claimant on the claim.  If the claim is denied, in whole or in part, such decision will
include the reason or reasons for the denial; a reference to the Plan
provisions on which the denial is based; a description of any additional
material or information, if any, necessary for the claimant to perfect his or
her claim; an explanation as to why such information or material is necessary;
and an explanation of the Plan’s claim procedure.

 

(c)                                  The
claimant may file with the Administrator, not later than 60 days after
receiving the Administrator’s written decision, a written notice of request for
review of the Administrator’s decision, and the claimant or his or her
representative may thereafter review relevant Plan documents which relate to
the claim and may submit written comments to the Administrator.

 

(d)                                 Not
later than 60 days after receipt of such review request, the Administrator will
render a written decision on the claim, which decision will include the
specific reasons for the decision, including a reference to the Plan’s specific
provisions where appropriate.

 

(e)                                  The
foregoing 90 and 60-day periods during which the Administrator must respond to
the claimant may be extended by up to an additional 90 or 60 days,
respectively, if special circumstances beyond the Administrator’s control so
require and notice of such extension is given to the claimant prior to the
expiration of such initial 90 or 60-day period, as the case may be.

 

(f)                                    An
individual must exhaust the procedure described in this section before making
any claim of entitlement to benefits pursuant to the Plan in an arbitration
pursuant to Section 6.7.  If an
individual is barred from pursuing a claim pursuant to this section by reason
of the lapse of time or otherwise, he or she is not entitled to commence an
arbitration pursuant to Section 6.7 and he or she no longer has any rights to
pursue the claim in any proceeding.

 

6.7.                              Disputes.

 

Any controversy or claim arising out of or relating to
a claim for benefits payable pursuant to the Plan will be settled exclusively
by arbitration in accordance with the Employee Benefit Plan Claims Arbitration
Rules of the American Arbitration Association, incorporated by reference
herein.  The decision of the arbitrator
will be final and binding and judgment on the award may be entered in any court
having jurisdiction.  The arbitration
must be commenced within 180 days after the date of the Administrator’s final
determination pursuant to Section 6.6(d).

 

14

 

ARTICLE 7.

 

MISCELLANEOUS

 

7.1.                              Amendment and Termination.

 

(a)                                  The
Company reserves the right to amend or terminate the Plan at any time.  To be effective an amendment must be stated
in a written instrument approved in advance or ratified by the Board and
executed in the name of the Company by two officers.  Notwithstanding the foregoing, a Successor may not terminate the
Plan or amend the Plan to significantly reduce the benefits payable under the
Plan within the two year period beginning on the date it became a Successor.

 

(b)                                 An
instrument amending or terminating the Plan is binding on all interested
persons as of the later of the date on which the instrument is adopted and the
date on which the instrument is effective.

 

(c)                                  No
person has any right to benefits under the Plan until he or she incurs a
Qualifying Termination as an Eligible Employee and is otherwise entitled to
benefits pursuant to Section 3.1.  An
Eligible Employee’s right to benefits under the Plan, if any, will be
determined solely under the provisions of the Plan in effect on his or her
Termination Date and such terms may be changed or the Plan may be terminated at
any time and to any extent before then.

 

(d)                                 The
Company may, at any time, prospectively change the form of the Release or any
other instrument or agreement used in connection with the Plan and no such
change is a Plan amendment.

 

7.2.                              Withholding and Offsets.

 

The Company and the Trustee retain the right to
withhold from any compensation or benefit payment pursuant to the Plan any and
all income, employment, excise and other tax as the Company or Trustee
determines, in its sole discretion, is necessary or advisable in connection
with any benefits earned or paid pursuant to the Plan and the Company may
offset against amounts otherwise then distributable to any person under the
Plan any amounts then owing to the Company or any Affiliate by such persons.

 

7.3.                              Other Benefits.

 

(a)                                  No
amounts paid pursuant to the Plan constitute salary or compensation for the
purpose of computing benefits under any other benefit plan, practice, policy or
procedure of the Company unless otherwise expressly provided thereunder.

 

(b)                                 If
an Eligible Employee is entitled to benefits under the Jostens, Inc. Executive
Change in Control Severance Pay Plan in connection with his or her termination
of employment, the Eligible Employee is not entitled to receive any benefits
under this Plan in connection with such termination of employment.

 

7.4.                              No Employment Rights Created.

 

Neither the establishment of or participation in the
Plan gives any employee a right to continued employment or limits the right of
the Company to discharge, transfer, demote or modify the terms and

 

15

 

conditions of employment or otherwise deal with any employee without
regard to the effect such action might have on him or her with respect to the
Plan.

 

7.5.                              Successors.

 

Except as otherwise expressly provided in the Plan,
all obligations of the Company under the Plan are binding on any Successor to
the Company whether the existence of such Successor is the result of a direct
or indirect purchase, merger, consolidation or otherwise of all or
substantially all of the business and/or assets of the Company.  The Company will require any Successor to
expressly assume and agree to perform the obligations of this Plan in the same
manner and to the same extent that the Company would be required to perform if
no such succession had taken place.

 

7.6.                              Nature of Company Action.

 

The decisions of the Company or any officer of the
Company on the Company’s behalf pursuant to the Plan (other than those
decisions which the Plan requires to be made by the Administrator when the
Company is acting in that capacity) will be made in the Company’s own interest
and the Company is not required to consider the interest of an Eligible
Employee, it being intended that any such decision will be made by the Company
in its settlor capacity rather than in a fiduciary capacity.

 

7.7.                              Delegation by Chief Executive
Officer.

 

When the Plan provides for an action to be taken by
the Company’s Chief Executive Officer, the action may be taken by any
individual authorized to take such action pursuant to a written delegation
signed in advance of the action by the Company’s Chief Executive Officer.  The Company’s Chief Executive Officer may
revoke any such delegation at any time and any such delegation to an employee
or officer of the Company will automatically terminate when he or she ceases to
be an employee or officer.  In no event
may an individual to whom a delegation has been made pursuant to this section
take any action that directly affects his or her own benefit under the Plan.

 

7.8.                              Waiver.

 

No waiver by the Company of any breach of any
obligation of an Eligible Employee arising under or in connection with the Plan
or of any condition or requirement which may be imposed on an Eligible Employee
under or in connection with the Plan constitutes a waiver of similar or
dissimilar obligations, conditions or requirements at the same time or at any
prior or subsequent time with respect to the Eligible Employee or any other
Eligible Employee.

 

7.9.                              Effect of Plan Benefits on Other Severance
Plans.

 

An Eligible Employee who receives any payment under
the terms of this Plan will not be eligible to receive benefits under any other
severance pay plan sponsored or maintained by the Company.

 

7.10.                        Related Plans.

 

To the extent that any provision of any Other
Arrangement limits, qualifies or is inconsistent with any provision of this
Plan, then for purposes of this Plan, while such Other Arrangement remains in
force, the provision of this Plan will control and such provision of such Other
Arrangement will be deemed to have been superseded, and to be of no force or
effect, as if such Other Arrangement had been formally amended to the extent
necessary to accomplish such purpose. 
Nothing in this Plan prevents or limits an Eligible Employee’s continuing
or future participation in any Other Arrangement, and nothing in this Plan

 

16

 

limits or otherwise affects the rights Eligible Employees may have
under any Other Arrangement.  Amounts
which are vested benefits or which Eligible Employees are otherwise entitled to
receive under any Other Arrangement at or subsequent to the Date of Termination
will be payable in accordance with such Other Arrangement.

 

7.11.                        Survival.

 

The respective obligations of, and benefits afforded
to, the Company and the Eligible Employees which by their express terms or
clear intent survive termination of an Eligible Employee’s employment with the
Company or termination of this Plan, as the case may be, will remain in full force
and effect according to their terms notwithstanding the termination of an
Eligible Employee’s employment with the Company or termination of this Plan, as
the case may be.

 

17

 

JOSTENS,
INC.

EXECUTIVE
SEVERANCE PAY PLAN

 

Declaration of Amendment

 

Pursuant to the retained power of amendment contained
in Section 7.1 of the “Jostens, Inc. Executive Severance Pay Plan,” the
undersigned hereby amends the Plan by way of restatement in the manner set
forth in the instrument entitled “Jostens, Inc. Executive Severance Pay Plan –
2003 Revision” attached hereto.

 

The foregoing amendment is effective as of February
26, 2003.

 

IN WITNESS WHEREOF, the undersigned has caused this
instrument to be executed by its duly authorized officers this 22nd
day of April 2003.

 

	
   

  	
  JOSTENS,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  	
  /s/  Paula R.
  Johnson

  	
   

  	
  By:

  	
   

  	
  /s/  Steven
  A. Tighe

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Paula R. Johnson

  	
   

  	
  Steven A. Tighe

  
	
   

  	
  Secretary

  	
   

  	
  Vice-President – Human Resouces

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  
	
   

  
	
  Attest:

  	
   

  	
  /s/  Paula R.
  Johnson

  	
   

  	
  By:

  	
   

  	
  /s/  Robert
  C. Buhrmaster

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Paula R. Johnson

  	
   

  	
  Robert C. Buhrmaster

  
	
   

  	
  Secretary

  	
   

  	
  Chairman of the Board and Chief

  Executive Officer

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