Document:

Exhibit 10.3

 

STOCK PURCHASE AND STOCKHOLDERS’ AGREEMENT

 

DATED AS OF

 

September 3, 2003 

 

AMONG

 

JOSTENS HOLDING CORP.

 

JOSTENS IH CORP.

 

AND

 

THE STOCKHOLDERS PARTIES HERETO

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 1.01.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  PURCHASE AND SALE OF SHARES

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.01.

  	
  Sale

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 2.02.

  	
  Closing

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  REPRESENTATIONS AND
  WARRANTIES OF THE DLJMB FUNDS, THE COMPANY AND INTERMEDIATE HOLDINGS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.01.

  	
  DLJMB Funds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.02.

  	
  The Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 3.03.

  	
  Intermediate Holdings

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  REPRESENTATIONS, WARRANTIES
  AND AGREEMENTS OF THE SYNDICATE STOCKHOLDERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.01.

  	
  Organization

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.02.

  	
  Authorization

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.03.

  	
  No Prohibition

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.04.

  	
  No Brokers or Finders

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.05.

  	
  Investment
  Representations

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 4.06.

  	
  No Implied Warranties

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  CONDITIONS TO OBLIGATIONS OF
  EACH SYNDICATE STOCKHOLDER AT CLOSING

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.01.

  	
  Representations and
  Warranties

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.02.

  	
  Performance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 5.03.

  	
  Qualifications

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  CONDITIONS TO THE OBLIGATIONS
  OF THE DLJMB FUNDS AT CLOSING

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.01.

  	
  Representations and
  Warranties

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.02.

  	
  Performance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 6.03.

  	
  Qualifications

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  CORPORATE GOVERNANCE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.01.

  	
  Composition of the
  Board

  	
   

  

 

i

 

	
   

  	
  SECTION 7.02.

  	
  Removal

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.03.

  	
  Vacancies

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.04.

  	
  Charter or Bylaw
  Provisions

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.05.

  	
  Observation Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 7.06.

  	
  Conflicting Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  RESTRICTIONS ON TRANSFER

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.01.

  	
  General Restrictions
  on Transfer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.02.

  	
  Legends

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.03.

  	
  Permitted Transferees

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.04.

  	
  Restrictions on
  Transfers by Syndicate Stockholders

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 8.05.

  	
  Restrictions on
  Transfers by DLJMB Funds

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  TAG-ALONG RIGHTS; DRAG-ALONG
  RIGHTS; PREEMPTIVE RIGHTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.01.

  	
  Tag-Along Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.02.

  	
  Drag-Along Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.03.

  	
  Additional Conditions
  to Tag-Along Sales and Drag-Along Sales

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 9.04.

  	
  Preemptive Rights

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  REGISTRATION RIGHTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.01.

  	
  Piggyback
  Registration

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.02.

  	
  Lock-Up
  Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.03.

  	
  Participation
  in a Public Offering

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.04.

  	
  Indemnification
  by the Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  10.05.

  	
  Indemnification
  by the Participating Stockholders

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  10.06.

  	
  Conduct of
  Indemnification Proceedings

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.07.

  	
  Contribution

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 10.08.

  	
  Other
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  10.09.

  	
  Cooperation
  by the Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  10.10.

  	
  No Transfer
  of Registration Rights

  	
   

  

 

ii

 

	
  ARTICLE 11

  	
  CERTAIN COVENANTS AND
  AGREEMENTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.01.

  	
  Confidentiality

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  11.02.

  	
  Restrictive
  Covenants

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  11.03.

  	
  Monthly
  Reports

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 11.04.

  	
  Financial
  Statements

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  11.05.

  	
  Board
  Packages

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 12.01.

  	
  Stockholders
  Representative

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 12.02.

  	
  Binding Effect;
  Assignability; Benefit

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 12.03.

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 12.04.

  	
  Waiver;
  Amendment; Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  12.05.

  	
  Fees and
  Expenses

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 12.06.

  	
  Governing Law

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  12.07.

  	
  Jurisdiction

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  12.08.

  	
  Waiver of
  Jury Trial

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 12.09.

  	
  Specific
  Enforcement; Cumulative Remedies

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  12.10.

  	
  Attorneys’
  Fees

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION 12.11.

  	
  Entire
  Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  12.12.

  	
  Captions

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  12.13.

  	
  Severability

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SECTION
  12.14.

  	
  Counterparts;
  Effectiveness

  	
   

  

 

iii

 

STOCK PURCHASE AND
STOCKHOLDERS’ AGREEMENT

 

This Stock Purchase and
Stockholders’ Agreement (the “Agreement”) is entered into as of the 3rd day of
September, 2003, by and among:

 

(i)                                     Jostens Holding Corp., a Delaware
corporation (the “Company”);

 

(ii)                                  Jostens IH Corp., a Delaware corporation
(“Intermediate Holdings”);

 

(ii)                                  DLJ Merchant
Banking Partners III, L.P., DLJ Offshore Partners III-1, C.V., DLJ Offshore
Partners III-2, C.V., DLJ Offshore Partners III, C.V., DLJMB Partners III GmbH
& Co. KG, Millennium Partners II, L.P. and MBP III Plan Investors, L.P. (together, the “DLJMB Funds”); and

 

(iii)                               the Persons named as Syndicate
Stockholders on the signature pages hereof (collectively, the “Syndicate Stockholders”).

 

If any DLJMB Funds shall
hereafter Transfer any of their Company Securities to any of their respective
Permitted Transferees (as such terms are defined below), the term “DLJMB Funds” shall
mean the DLJMB Funds and such Permitted Transferees, taken together, and any
right, obligation or action that may be exercised or taken at the election of
the DLJMB Funds may be exercised or taken at the election of the DLJMB Funds
and such Permitted Transferees.

 

If any Syndicate
Stockholder shall hereafter Transfer any of its Company Securities to any of
its Permitted Transferees, the term “Syndicate Stockholder” as applied to such Syndicate
Stockholder shall mean such Syndicate Stockholder and its Permitted
Transferees, taken together, and any right, obligation or other action that may
be exercised or taken at the election of such Syndicate Stockholder may be
exercised or taken at the election of such Syndicate Stockholder and its
Permitted Transferees.  Syndicate
Stockholders shall not be deemed to be Permitted Transferees of the DLJMB Funds
as a result of the sale and purchase of the Shares contemplated by this
Agreement.

 

W I T N E S S E T H :

 

WHEREAS, the DLJMB Funds
have purchased from the Company: (i) 500,000 shares of Class A Voting Common
Stock, par value $0.01 per share (“Class A Common Stock”) and (ii) 2,700,000 shares of
Class B Non-Voting Common Stock, par value $0.01 per share (“Class B Common Stock”
and, together with the Class A Common Stock, the “Common Stock”); and

 

WHEREAS, the DLJMB Funds
have purchased from Intermediate Holdings 100,000 shares of 8% Senior
Redeemable Payment-In-Kind Preferred Stock, par value $0.01 per share (“Preferred Stock” and, together with the
Common Stock, the “Shares”);
and

 

 

WHEREAS, the Syndicate
Stockholders, severally and not jointly, wish to purchase pro rata from the
DLJMB Funds, and the DLJMB Funds wish to sell to the Syndicate Stockholders
shares of Class A Common Stock, Class B Common Stock and Preferred Stock
for an aggregate Purchase Price (as defined below) of up to $100,000,000 as
more fully set forth on Annex A hereto; and

 

WHEREAS, the parties
hereto desire to enter into this Agreement to effectuate the sale of the Shares
to the Syndicate Stockholders and to govern certain of their rights, duties and
obligations after consummation of the transactions contemplated hereby.

 

NOW, THEREFORE, in
consideration of the covenants and agreements contained herein, the parties
hereto agree as follows:

 

ARTICLE 1

DEFINITIONS

 

SECTION 1.01.                 Definitions. 
(a)  The following terms, as used
herein, have the following meanings:

 

“Adverse Person” means any Person who, either
directly or through an Affiliate, is a competitor of, or is otherwise
materially adverse to, the Company or any of its Subsidiaries as reasonably
determined by the Board in good faith.

 

“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 Intermediate Holdings shall be deemed an Affiliate of any other
securityholder solely by reason of an investment in the Company or Intermediate
Holdings.  For the purpose of this
definition, 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.

 

“Aggregate Ownership” means, with respect to
any Stockholder or group of Stockholders, the total number of the relevant
class of Company Securities owned (without duplication) by such Stockholder or
group of Stockholders as of the date of such calculation, calculated on a Fully-Diluted
basis.

 

“Block Sale” means a Transfer by the DLJMB
Funds, following the consummation of an Initial Public Offering, in a block
trade or other open market transaction of any class of Company Securities which
represents more than 10% of the DLJMB Funds’ Initial Ownership of that class of
Company Securities.

 

“Board” means the board of directors of the
Company.

 

2

 

“Business Day” means any day except a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized by law to close.

 

“Bylaws” means the bylaws of the Company, as
the same may be amended from time to time.

 

“Charter” means the Certificate of
Incorporation of the Company, as the same may be amended from time to time.

 

“Closing Date” means any date that a Closing
occurs under Article 2 of this Agreement.

 

“Common Shares” means shares of Common Stock.

 

“Common Stock” means the Company’s Class A
Voting Common Stock, par value $0.01 per share, and the Class B Non-Voting Common
Stock, par value $0.01 per share, collectively and any stock into which such
Common Stock may thereafter be converted, changed, reclassified or exchanged.

 

“Company Securities” means (i) the Common
Stock, (ii) the Preferred Stock, (iii) any other equity or equity-linked
security issued by the Company, Intermediate Holdings or Jostens and (iv) any
securities convertible into or exchangeable for, or options, warrants or other
rights to acquire, Common Stock, Preferred Stock or any other equity or equity-linked
security issued by the Company, Intermediate Holdings or Jostens.

 

“DLJMB” means DLJ Merchant Banking Partners
III, L.P.

 

“DLJMB Funds” means DLJ Merchant Banking
Partners III, L.P., DLJ Offshore Partners III, C.V., DLJ Offshore Partners
III-1, C.V., DLJ Offshore Partners III-2, C.V., DLJMB Partners III GmbH &
Co. KG, Millennium Partners II, L.P. and MBP III Plan Investors, L.P.

 

“Drag-Along Portion” means, with respect to
any Other Stockholder in a Drag-Along Sale (as defined in Section 9.02), the Aggregate
Ownership of the relevant class of Company Securities by such Other Stockholder
multiplied
by a fraction, the numerator of which is the aggregate number of
that class of Company Securities proposed to be sold by the Drag-Along Seller
(as defined in Section 9.02) in the applicable Drag-Along Sale and the
denominator of which is the Aggregate Ownership of that class of Company
Securities by the Drag-Along Seller at such time.

 

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

 

“Fully-Diluted” means, with respect to any
class of Company Securities, all outstanding shares and all shares issuable in
respect of securities convertible into or exchangeable for such shares, all
stock appreciation rights, options, warrants and other rights to purchase or
subscribe for such class of Company Securities or securities

 

3

 

convertible into or exchangeable for such class of
Company Securities; provided that if any of the foregoing
stock appreciation rights, options, warrants or other rights to purchase or
subscribe for such class of Company Securities are subject to vesting, the
Company Securities subject to vesting shall be included in the definition of
“Fully-Diluted” only upon and to the extent of such vesting.

 

“group of Stockholders” means a “group” of
Stockholders, as such term would be interpreted under Section 13(d) of the
Exchange Act.

 

“Initial Ownership” means, with respect to any
Stockholder or group of Stockholders, the Aggregate Ownership by such
Stockholder or group of Stockholders after giving effect to the transactions
contemplated by Article 2 (or, in the case of any Syndicate Stockholder who
becomes a party to this Agreement after the date hereof, as of the date of
joinder to or entry of such Syndicate Stockholder into this Agreement), in each
case taking into account any stock split, stock dividend, reverse stock split
or similar event.

 

“Initial Public Offering” means the first
Public Offering of Common Stock after the date hereof with aggregate gross
proceeds to the Company and all selling stockholders in an amount equal to or
greater than $100.0 million.

 

“Intermediate Holdings” means Jostens IH
Corp., a Delaware corporation, and a Subsidiary of the Company.

 

“Jostens” means Jostens, Inc., a Minnesota
corporation.

 

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

 

“Other Stockholders” means all Stockholders
other than the DLJMB Funds.

 

“Permitted Transferee” means:

 

(i)                                     in the case of any DLJMB Fund, (A) any
other DLJMB Fund, (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 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

 

4

 

which, include only such DLJMB Funds, DLJMB
Affiliates, DLJMB Associates, their spouses or other lineal descendants; and

 

(ii)                                  in the case of any Syndicate Stockholder,
any shareholder, partner, member, corporation, partnership, limited liability
company or other entity that is an Affiliate of such Syndicate Stockholder.

 

“Person” means an individual, corporation,
limited liability company, partnership, association, trust or other entity or
organization, including a government or political subdivision or an agency or
instrumentality thereof.

 

“Preferred Shares” means shares of Preferred
Stock.

 

“Preferred Stock” means Intermediate Holdings’
8% Senior Redeemable Preferred Stock, $0.01 par value per share, and stock into
which such Preferred Stock may be converted, changed, reclassified or
exchanged.

 

“Pro Rata Share” means, for each Syndicate
Stockholder and any proposed issuance of any class of Company Securities with
respect to which such Syndicate Stockholder shall be entitled to exercise its
rights under Section 9.04, (i) for Common Stock, Preferred Stock, or any
security convertible into or exchangeable for, or options, warrants or other
rights to acquire, Common Stock or Preferred Stock, the fraction that results
from dividing (A) such Syndicate Stockholder’s Aggregate Ownership of such
underlying class of Company Securities (immediately before giving effect to
such issuance), by (B) the total number of such underlying class of Company
Securities then outstanding and owned by the Stockholders (immediately before
giving effect to such issuance), calculated on a Fully-Diluted basis; and (ii)
for the issuance of any other equity or equity-linked security, the fraction
that results from dividing (A) such Syndicate Stockholder’s Aggregate Ownership
of the Common Stock by (B) the total number of shares of Common Stock then
outstanding and owned by the Stockholders (immediately before giving effect to
such issuance), calculated on a Fully-Diluted Basis.

 

“Public Offering” means a public offering of
Company Securities pursuant to an effective registration statement under the
Securities Act, other than pursuant to a registration statement on Form S-4 or
Form S-8 or any similar or successor form.

 

“Registrable Securities” means, at any time,
any Shares held by any Stockholder until (i) a registration statement covering
such Shares has been declared effective by the SEC and such Shares have been
disposed of pursuant to such effective registration statement, (ii) such Shares
are sold under circumstances in which all of the applicable conditions of Rule
144 (or any similar provisions then in force) under the Securities Act are met
or (iii) such Shares are otherwise Transferred, the Company or Intermediate
Holdings, as the case may be, has delivered a new certificate or other evidence
of ownership for such Shares not bearing the legend required pursuant to this

 

5

 

Agreement and such Shares may
be resold without subsequent registration under the Securities Act.

 

“Registration Expenses” means any and all
expenses incident to the performance of or compliance with any registration or
marketing of securities, including all (i) registration and filing fees, and all
other fees and expenses payable in connection with the listing of securities on
any securities exchange or automated interdealer quotation system, (ii) fees
and expenses of compliance with any securities or “blue sky” laws (including
reasonable fees and disbursements of counsel in connection with “blue sky”
qualifications of the securities registered), (iii) expenses in connection with
the preparation, printing, mailing and delivery of any registration statements,
prospectuses and other documents in connection therewith and any amendments or
supplements thereto, (iv) security engraving and printing expenses, (v)
internal expenses of the Company (including, without limitation, all salaries
and expenses of its officers and employees performing legal or accounting
duties), (vi) reasonable fees and disbursements of counsel for the Company and
customary fees and expenses for independent certified public accountants
retained by the Company (including the expenses relating to any comfort letters
or costs associated with the delivery by independent certified public
accountants of any comfort letters), (vii) reasonable fees and expenses of any
special experts retained by the Company in connection with such registration,
(viii) reasonable fees and out-of-pocket expenses of counsel to the
Stockholders participating in the offering selected (A) by the DLJMB Funds, in
the case of any offering in which any DLJMB Funds participate, or (B) in any
other case, by the Stockholders holding the majority of the Registrable Securities
to be sold for the account of all Stockholders in the offering, (ix) fees and
expenses in connection with any review by the NASD of the underwriting
arrangements or other terms of the offering, and all fees and expenses of any
“qualified independent underwriter,” including the fees and expenses of any
counsel thereto, (x) fees and disbursements of underwriters customarily paid by
issuers or sellers of securities, but excluding any underwriting fees,
discounts and commissions attributable to the sale of Registrable Securities,
(xi) costs of printing and producing any agreements among underwriters,
underwriting agreements, any “blue sky” or legal investment memoranda and any
selling agreements and other documents in connection with the offering, sale or
delivery of the Registrable Securities, (xii) transfer agents’ and registrars’
fees and expenses and the fees and expense of any other agent or trustee
appointed in connection with such offering, (xiii) expenses relating to any
analyst or investor presentations or any “road shows” undertaken in connection
with the registration, marketing or selling of the Registrable Securities and
(xiv) fees and expenses payable in connection with any ratings of the
Registrable Securities, including expenses relating to any presentations to
rating agencies.

 

“Remaining Initial Ownership” means, for any
Stockholder or group of Stockholders at any time, the percentage equal to a
fraction, the numerator of which is the Aggregate Ownership for such
Stockholder or group of Stockholders at such time, and the denominator of which
is the Initial Ownership for such Stockholder or group of Stockholders.

 

6

 

“Rule 144” means Rule 144 (or any successor
provisions) under the Securities Act.

 

“SEC” means the Securities and Exchange
Commission.

 

“Securities Act” means the Securities Act of
1933, as amended.

 

“Stockholder” means each Person (other than
the Company and Intermediate Holdings) who, at any relevant determination date,
shall be a party to or bound by: (i) this Agreement (as may be amended from
time to time) or (ii) that certain Stockholders’ Agreement dated as of July 29,
2003 (as may be amended from time to time) (the “Stockholders Agreement”), among the Company
and the stockholders party thereto, so long as such Person shall “beneficially
own” (as such term is defined in Rule 13d-3 of the Exchange Act) any Company
Securities.

 

“Subsidiary” means, with respect to any
Person, any entity of which securities or other ownership interests having
ordinary voting power to elect a majority of the board of directors or other
persons performing similar functions are at the time directly or indirectly
owned by such Person.

 

“Tag-Along Portion” means, for any Tagging
Person (as defined in Section 9.01) in a Tag-Along Sale (as defined in Section
9.01), the Aggregate Ownership of the relevant class of Company Securities by
the Tagging Person immediately prior to such Tag-Along Sale multiplied
by the Tag-Along Pro Rata Share.

 

“Tag-Along Pro Rata Share” means a fraction,
the numerator of which is the maximum number of that class of Company
Securities proposed to be sold by the applicable Tag-Along Seller (as defined
in Section 9.01) in such Tag-Along Sale and the denominator of which is the
Aggregate Ownership of that class of Company Securities by the Stockholders at
such time.

 

“Third Party” means a prospective purchaser of
Company Securities in a bona fide arm’s-length transaction from a Stockholder,
other than a Permitted Transferee or other Affiliate of such Stockholder.

 

“Transfer” means, with respect to any Company
Securities, (i) when used as a verb, to sell, assign, dispose of, exchange,
pledge, encumber, hypothecate or otherwise transfer such Company Securities or
any participation or interest therein, whether directly or indirectly, or agree
or commit to do any of the foregoing and (ii) when used as a noun, a direct or
indirect sale, assignment, disposition, exchange, pledge, encumbrance,
hypothecation, or other transfer of such Company Securities or any
participation or interest therein or any agreement or commitment to do any of
the foregoing.

 

7

 

(b)                                 Each
of the following terms is defined in the Section set forth opposite such term:

 

	
  TERM

  	
   

  	
  SECTION

  
	
   

  	
   

  	
   

  
	
  Additional
  Syndicate Stockholder

  	
   

  	
  2.01

  
	
  Closing

  	
   

  	
  2.02

  
	
  Confidential
  Information

  	
   

  	
  11.01(b)

  
	
  Damages

  	
   

  	
  10.04

  
	
  Drag-Along
  Rights

  	
   

  	
  9.02(a)

  
	
  Drag-Along
  Sale

  	
   

  	
  9.02(a)

  
	
  Drag-Along
  Sale Notice

  	
   

  	
  9.02(a)

  
	
  Drag-Along
  Sale Notice Period

  	
   

  	
  9.02(a)

  
	
  Drag-Along Sale
  Price

  	
   

  	
  9.02(a)

  
	
  Drag-Along
  Seller

  	
   

  	
  9.02(a)

  
	
  Drag-Along
  Transferee

  	
   

  	
  9.02(a)

  
	
  Excess
  Portion

  	
   

  	
  9.01(d)

  
	
  Excess
  Shares

  	
   

  	
  9.04(c)

  
	
  Full
  Participating Syndicate Stockholder

  	
   

  	
  9.04(c)

  
	
  Full
  Participating Tagging Person

  	
   

  	
  9.01(d)

  
	
  Indemnified
  Party

  	
   

  	
  10.06

  
	
  Indemnifying
  Party

  	
   

  	
  10.06

  
	
  Initial
  Basket

  	
   

  	
  9.01(a)

  
	
  Instrument
  of Accession

  	
   

  	
  2.01

  
	
  Lock-Up
  Period

  	
   

  	
  10.02

  
	
  Maximum
  Offering Size

  	
   

  	
  10.01(b)

  
	
  Observer

  	
   

  	
  7.05

  
	
  Piggyback
  Registration

  	
   

  	
  10.01(a)

  
	
  Purchase
  Price

  	
   

  	
  2.01

  
	
  Replacement
  Nominee

  	
   

  	
  7.03(a)

  
	
  Restricted
  Business

  	
   

  	
  11.02(a)

  
	
  Syndicate
  Group

  	
   

  	
  7.05

  
	
  Tag-Along
  Date

  	
   

  	
  9.01(e)

  
	
  Tag-Along
  Notice

  	
   

  	
  9.01(a)

  
	
  Tag-Along
  Notice Period

  	
   

  	
  9.01(a)

  
	
  Tag-Along
  Offer

  	
   

  	
  9.01(a)

  
	
  Tag-Along
  Response Notice

  	
   

  	
  9.01(a)

  
	
  Tag-Along
  Right

  	
   

  	
  9.01(a)

  
	
  Tag-Along
  Sale

  	
   

  	
  9.01(a)

  
	
  Tag-Along
  Seller

  	
   

  	
  9.01(a)

  
	
  Tagging
  Person

  	
   

  	
  9.01(a)

  
	
  Unwinding
  Event

  	
   

  	
  8.03(b)

  

 

8

 

(c)                                  Other
Definitional and Interpretive Matters. 
Unless otherwise expressly provided, for purposes of this Agreement, the
following rules of interpretation shall apply:

 

Calculation of Time
Period.  When calculating the period of time before
which, within which or following which any act is to be done or step taken
pursuant to this Agreement, the date that is the reference date in calculating
such period shall be excluded.  If the
last day of such period is a non-Business Day, the period in question shall end
on the next succeeding Business Day.

 

Dollars. 
Any reference in this Agreement to $ shall mean U.S. dollars.

 

Exhibits/Schedules. 
The Exhibits and Schedules to this Agreement are hereby incorporated and
made a part hereof and are an integral part of this Agreement.  All Exhibits, Annexes and Schedules annexed
hereto or referred to herein are hereby incorporated in and made a part of this
Agreement as if set forth in full herein. 
Any capitalized terms used in any Schedule, Annex or Exhibit but not
otherwise defined therein shall be defined as set forth in this Agreement.

 

Gender and Number. 
Any reference in this Agreement to gender shall include all genders, and
words imparting the singular number only shall include the plural and vice
versa.

 

Headings. 
The provision of a Table of Contents, the division of this Agreement
into Articles, Sections and other subdivisions and the insertion of headings
are for convenience of reference only and shall not affect or be utilized in
construing or interpreting this Agreement. 
All references in this Agreement to any “Section” are to the
corresponding Section of this Agreement unless otherwise specified.

 

Herein. 
The words such as “herein,” “hereinafter,” “hereof,” and “hereunder” refer to this Agreement as a whole and not
merely to a subdivision in which such words appear unless the context otherwise
requires.

 

ARTICLE 2

PURCHASE AND SALE OF SHARES

 

SECTION 2.01.                 Sale.  Subject to
the terms and conditions of this Agreement, the Syndicate Stockholders,
severally and not jointly, do hereby agree to purchase at the Closing (as
defined below), and the DLJMB Funds, severally and not jointly, hereby agree to
sell on a pro rata basis to the Syndicate Stockholders at the Closing, the
number of shares of Common Stock and Preferred Stock set forth opposite the
name of each Syndicate Stockholder and DLJMB Fund on Annex A hereto, at a
purchase price of (a) $100.62 per for each share of Common Stock and (b)
$1,008.22 for each share of Preferred Stock, for the total purchase price set
forth opposite the name of each Syndicate Stockholder on Annex A hereto (the “Purchase Price”).  At any time prior to September 12, 2003, the
DLJMB Funds may execute instruments of accession in

 

9

 

the form attached hereto as Exhibit B (an “Instrument of Accession”)
with additional Persons (collectively, the “Additional Syndicate Stockholders”), pursuant
to which such Additional Syndicate Stockholders agree to purchase at the
Closing, and the DLJMB Funds, severally and not jointly, agree to sell on a pro
rata basis to the Additional Syndicate Stockholders at the Closing, the number
of shares of Common Stock and Preferred Stock set forth therein on the same
terms and conditions set forth in this Agreement.  Upon execution by the DLJMB Funds, the Company, and Intermediate
Holdings and each such Additional Syndicate Stockholder of an Instrument of
Accession, such Additional Syndicate Stockholder shall be deemed a “Syndicate
Stockholder” under this Agreement. 
Annex A attached hereto shall be amended from time to time to add each
Additional Syndicate Stockholder and the shares of Common Stock and Preferred
Stock to be purchased by such Additional Syndicate Stockholder.  Notwithstanding the foregoing, the DLJMB
Funds (i) may not sell Shares with a Purchase Price in excess of $100,000,000
pursuant to this Article 2 and (ii) shall sell Shares to Additional Syndicate
Stockholders consisting of a number of shares of Class A Common Stock, Class B
Common Stock and Preferred Stock identically proportionate to those previously
sold to the then existing Syndicate Stockholders.

 

SECTION 2.02.                 Closing.  The sale and
purchase of the Shares shall occur at one or more closings (collectively, the “Closing”) at Weil,
Gotshal & Manges LLP, 767 Fifth Avenue, New York, New York 10153, to be
held on September 4, 2003 or on any subsequent date no later than September 12,
2003 designated by DLJMB.  Payment of
the Purchase Price shall be made by each Syndicate Stockholder (against receipt
of share certificates delivered by the DLJMB Funds) to the DLJMB Funds, in
respect of the shares of Common Stock and Preferred Stock, at the Closing by
wire transfer of immediately available funds denominated in U.S. dollars to the
account designated in writing to the Syndicate Stockholders in advance of the
Closing.  Other than the Purchase Price
of such Shares, which shall be subject to increase by an amount equal to 6% per
annum of interest with respect to Common Stock and 8% per annum of interest
with respect to Preferred Stock for the period from September 4, 2003 to the
date of such subsequent sale, the terms and conditions of the sale of such
Shares shall be the same as those set forth herein.

 

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE DLJMB FUNDS, THE COMPANY AND
INTERMEDIATE HOLDINGS

 

SECTION 3.01.                 DLJMB Funds.  Each of the DLJMB Funds severally represents
and warrants to each Syndicate Stockholder that:

 

(a)                                  Organization.  Each of the DLJMB Funds is duly formed,
validly existing and in good standing (to the extent applicable) under the laws
of its jurisdiction of formation and has all requisite authority to enter into
and perform its obligations under this Agreement.

 

10

 

(b)                                 Authorization. 
Each of the DLJMB Funds has full power and authority to execute and
deliver this Agreement.  All action on
the part of each of the DLJMB Funds necessary for the authorization, execution,
delivery and performance of this Agreement by each DLJMB Fund has been
taken.  This Agreement, when executed
and delivered by all parties hereto, shall constitute the valid and legally
binding obligation of the DLJMB Funds, enforceable in accordance with its
terms, except to the extent the enforceability thereof may be limited by
bankruptcy laws, insolvency laws, reorganization laws, moratorium laws or other
laws affecting creditors’ rights generally or by general equitable principles.

 

(c)                                  No Prohibition. 
No law or order of any governmental entity is in effect, or stayed
pending appeal, which restrains or prohibits, or renders unlawful, any of the
DLJMB Fund’s consummation of the transactions contemplated hereby.  No claim, action, suit investigation or
other proceeding is pending or, to the knowledge of the DLJMB Funds, threatened
before any governmental entity, which purports to enjoin or restrain any of the
DLJMB Funds or to seek relief from or against any of the DLJMB Funds, or which
could result in an order prohibiting any of the DLJMB Funds from, consummating
such transactions.

 

(d)                                 Capitalization. 
(i) The authorized capital stock of the Company consists of (i) 700,000
shares of Class A Common Stock, (ii) 4,050,000 shares of Class B Common Stock;
and (iii) 250,000 shares of undesignated preferred stock.  As of the date hereof, there are (i) 504,584
shares of Class A Common Stock issued and outstanding, of which 500,000 shares
are held by the DLJMB Funds, (ii) 2,724,759 shares of Class B Common Stock
issued and outstanding, of which 2,700,000 shares are held by the DLJMB Funds,
and (iii) no shares of undesignated preferred stock issued and outstanding.

 

(ii)                                  The authorized capital stock of
Intermediate Holdings consists of (i) 1,000 shares of common stock and (ii)
300,000 shares of preferred stock, 294,000 of which are designated as Preferred
Stock.  As of the date hereof, there are (i) 1,000
shares of common stock issued and outstanding, all of which are held by the Company,
and (ii) 100,000 shares of Preferred Stock issued and outstanding, all of which
are held by the DLJMB Funds.

 

(iii)                               As of the date hereof, there are 1,000
shares of common stock issued and outstanding of Jostens, all of which are held
by Intermediate Holdings.

 

(e)                                  Shares.  The DLJMB
Funds are the sole record and beneficial owners of the Common Stock and
Preferred Stock being purchased and sold pursuant to this Agreement, and the
shares of Common Stock and Preferred Stock, when delivered and paid for in
accordance with the terms of this Agreement, will be acquired by the Syndicate
Stockholders free and clear of all liens or encumbrances, except for such
restrictions on transfer generally arising under applicable federal and state
securities laws

 

11

 

or imposed by the terms
herein.  The Shares are duly authorized
for issuance and are validly issued, fully paid and non-assessable under the
applicable laws of the State of Delaware.

 

(f)                                    No Brokers or Finders. 
No agent, broker, finder or investment or commercial banker, or other
Person engaged by or acting on behalf of the DLJMB Funds or their Affiliates in
connection with the negotiation, execution or performance of this Agreement or
the transactions contemplated hereby, is or will be entitled to any brokerage
or finder’s or similar fee or other commission as a result of this Agreement or
the transactions contemplated hereby.

 

(g)                                 Securities Act. 
The sale of the Shares in accordance with the terms of this Agreement
(assuming the accuracy of the representations and warranties of each of the
Syndicate Stockholders contained in Article 4 hereof) is exempt from the
registration requirements of the Securities Act.

 

(h)                                 Affiliate Transactions. 
At the date hereof, except for (i) agreements providing for certain
monitoring fees of up to $1.0 million per year (plus reimbursement of
out-of-pocket expenses), (ii) the agreements evidencing certain loans and
commitments made available to the Company by certain Affiliates of the DLJMB
Funds and (iii) this Agreement and the Stockholders’ Agreement, no DLJMB Fund
or any Affiliate thereof is a party to any material agreement with the Company
or any of its Subsidiaries currently in effect.

 

(i)                                     No Other
Representations or Warranties.  Except for
the representations and warranties contained in this Article 3, neither
the DLJMB Funds nor any other Person makes any other express or implied
representation or warranty with respect to the Shares, the Company,
Intermediate Holdings, Jostens or the transactions contemplated by this
Agreement, and the DLJMB Funds disclaim any other representations or
warranties, whether made by the DLJMB Funds, the Company, Intermediate
Holdings, Jostens or any of their respective Affiliates, officers, directors,
employees, agents, consultants, attorneys or representatives.  Except for the
representations and warranties contained in Article 3 hereof, the DLJMB Funds
hereby disclaim all liability and responsibility for any representation,
warranty, projection, forecast, statement, or information made, communicated,
or furnished (orally or in writing) to any Syndicate Stockholder or its Affiliates, officers, directors,
employees, agents, consultants, attorneys or representatives (including any
opinion, information, projection, or advice that may have been or may be
provided to any Syndicate Stockholder by any Affiliates, officers, directors, employees, agents,
consultants, attorneys or representatives of the DLJMB Funds, the
Company, Intermediate Holdings or Jostens).

 

12

 

SECTION 3.02.                 The Company. 
The Company represents and warrants to each Syndicate Stockholder that:

 

(a)                                  Organization and Good Standing. 
The Company is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware.

 

(b)                                 Authorization of Agreement. 
The Company has all requisite power and authority to execute and deliver
this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby have been duly
authorized by all requisite corporate action on the part of the Company.

 

(c)                                  U.S. Real Property Holding Company. 
The Company is not a U.S. Real Property Holding Company, as defined in
Section 1.897-2(c) of the Treasury Regulations.

 

SECTION 3.03.                 Intermediate Holdings. 
Intermediate Holdings represents and warrants to each Syndicate
Stockholder that:

 

(a)                                  Organization and Good Standing. 
Intermediate Holdings is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware.

 

(b)                                 Authorization of Agreement. 
Intermediate Holdings has all requisite power and authority to execute
and deliver this Agreement and to consummate the transactions contemplated
hereby.  The execution and delivery of
this Agreement and the consummation of the transactions contemplated hereby
have been duly authorized by all requisite corporate action on the part of
Intermediate Holdings.

 

(c)                                  U.S. Real Property Holding Company. 
Intermediate Holdings is not a U.S. Real Property Holding Company, as
defined in Section 1.897-2(c) of the Treasury Regulations.

 

ARTICLE 4

REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF THE SYNDICATE STOCKHOLDERS

 

Each Syndicate Stockholder, severally and not jointly,
represents and warrants to the DLJMB Funds and each other Syndicate Stockholder
(as to itself) that:

 

SECTION 4.01.                 Organization. 
Such Syndicate Stockholder is duly formed, validly existing and in good
standing (to the extent applicable) under the laws of its jurisdiction of
formation and has all requisite authority to enter into and perform its
obligations under this Agreement.

 

13

 

SECTION 4.02.                 Authorization. 
All action on the part of such Syndicate Stockholder necessary for the
authorization, execution, delivery and performance of this Agreement by such
Syndicate Stockholder has been taken. 
This Agreement, when executed and delivered by all parties hereto, shall
constitute the valid and legally binding obligation of such Syndicate
Stockholder, enforceable against such Syndicate Stockholder in accordance with
its terms, except to the extent the enforceability thereof may be limited by bankruptcy
laws, insolvency laws, reorganization laws, moratorium laws or other laws
affecting creditors’ rights generally or by general equitable principles.

 

SECTION 4.03.                 No Prohibition. 
No law or order of any governmental entity is in effect, or stayed pending
appeal, which restrains or prohibits, or renders unlawful, such Syndicate
Stockholder’s consummation of the transactions contemplated hereby.  No claim, action, suit investigation or
other proceeding is pending or, to the knowledge of such Syndicate Stockholder,
threatened before any governmental entity, which purports to enjoin or restrain
such Syndicate Stockholder or to seek relief from or against such Syndicate
Stockholder, or which could result in an order prohibiting such Syndicate
Stockholder from, consummating such transactions.

 

SECTION 4.04.                 No Brokers or Finders. 
No agent, broker, finder, or investment or commercial banker, or other
Person or firm engaged by or acting on behalf of such Syndicate Stockholder or
its Affiliates in connection with the negotiation, execution or performance of
this Agreement or the transactions contemplated hereby, is or will be entitled
to any brokerage or finder’s or similar fee or other commission as a result of
this Agreement or the transactions contemplated hereby.

 

SECTION 4.05.                 Investment
Representations.

 

(a)                                  The Shares to be received by such
Syndicate Stockholder will be acquired by it for investment for its own
account, not as a nominee or agent, and not with a view to the sale or
distribution of any part thereof in violation of applicable federal and state
securities laws, and it has no current intention of selling, granting a
participation in or otherwise distributing the same, in each case, in violation
of applicable federal and state securities laws.  By executing this Agreement, such Syndicate Stockholder further
represents that it does not have any contract, undertaking, agreement or
arrangement with any Person to sell, transfer or grant a participation to such
Person, or to any third Person, with respect to any of the Shares, in each
case, in violation of applicable federal and state securities laws.

 

(b)                                 Such Syndicate Stockholder understands
that the Shares have not been registered under the Securities Act on the basis
that the sale provided for in this Agreement is exempt from the registration
requirements of the Securities Act.

 

(c)                                  Such Syndicate Stockholder is an
“accredited investor” as such term is defined in Rule 501 of Regulation D
promulgated under the Securities Act. 
Such Syndicate Stockholder has such knowledge and experience in
financial and business

 

14

 

matters as to be capable of
evaluating the merits and risks of its investment.  Such Syndicate Stockholder further represents that it has had,
during the course of the transactions contemplated hereby and prior to its
purchase of Shares, the opportunity to ask questions of, and receive answers
from, the DLJMB Funds, the Company, Intermediate Holdings and Jostens
concerning the terms and conditions of the sale.  Such Syndicate Stockholder understands that no federal or state
agency has passed upon this investment or upon the Company, Intermediate
Holdings or Jostens, nor has any such agency made any finding or determination
as to this investment.

 

(d)                                 Without limiting Section 4.05(c) above,
where such Syndicate Stockholder is a resident of the Province of Ontario, such
Syndicate Stockholder hereby certifies that such Syndicate Stockholder meets
one of the categories of “accredited investor” as such term is defined in Rule
45-501 – Exempt Distributions of the Ontario Securities Commission and has
completed and executed an Accredited Investor Certificate, the contents of
which are herby incorporated herein by reference as express representations and
warranties of such Syndicate Stockholder.

 

(e)                                  Such Syndicate Stockholder understands
that the Shares may not be sold, transferred or otherwise disposed of without
registration under the Securities Act or an exemption therefrom, and that in
the absence of an effective registration statement covering such Shares or an
available exemption from registration under the Securities Act, such Syndicate
Stockholder must be prepared to bear the economic risk of this investment for
an indefinite period of time.  Such
Syndicate Stockholder represents that, in the absence of an effective
registration statement covering the Shares, it will sell, transfer or otherwise
dispose of the Shares only pursuant to an applicable exemption from
registration under the Securities Act and otherwise in accordance with the
terms of this Agreement.

 

(f)                                    Such Syndicate Stockholder acknowledges
that this investment is not recommended for investors who have any need for a
current return on this investment or who cannot bear the risk of losing their
entire investment.  Such Syndicate
Stockholder acknowledges that: (i) it has adequate means of providing for its
current needs and possible contingencies and has no need for liquidity in this
investment; (ii) its commitment to investments which are not readily marketable
is not disproportionate to its net worth; and (iii) its investment in the
Shares will not cause its overall financial commitments to become excessive.

 

(g)                                 Such Syndicate Stockholder (i) has
performed its own due diligence and business investigations with respect to the
Company, Intermediate Holdings and Jostens; (ii) is fully familiar with the
nature of the investment in the Company and Intermediate Holdings, the
speculative and financial risks thereby assumed, and the uncertainty with
respect to the timing and amounts of distributions, if any, to be made by the
Company or Intermediate Holdings; (iii) has sufficient knowledge and experience
and has taken such professional advice as it thinks necessary to make its own
evaluation of the merits and risks involved in making the investment
contemplated by this Agreement; (iv) has been, and will at all times continue
to be, solely responsible

 

15

 

for making its own independent
appraisal of and investigation into the business, financial condition and
prospects of the Company, Intermediate Holdings and Jostens and will be solely
responsible for making its own investment decisions with respect to its
purchase, ownership and disposition of the Shares; and (v) will not rely on the
DLJMB Funds or any of their respective Affiliates, officers, directors,
employees, agents, consultants, attorneys or representatives to provide them
with any information relating to, or to keep under review on behalf of the
Syndicate Stockholders, the business, financial condition and prospects of the
Company, Intermediate Holdings and Jostens.

 

SECTION 4.06.                 No Implied Warranties. 
Notwithstanding anything contained in this Agreement to the contrary,
such Syndicate Stockholder acknowledges and agrees that the DLJMB Funds are not
making any representations or warranties whatsoever, express or implied, beyond
those expressly given by the DLJMB Funds, as the case may be, in Article
3.  Any claims such Syndicate Stockholder
may have for breach of representation or warranty by the DLJMB Funds shall be
based solely on the representations and warranties of the DLJMB Funds set forth
in Article 3.  Such Syndicate
Stockholder further represents that none of the Affiliates, officers,
directors, employees, agents, consultants, attorneys or representatives of the DLJMB
Funds, the Company, Intermediate Holdings or Jostens nor any other Person has made any representation or
warranty, express or implied, as to the accuracy or completeness of any
information regarding the Company, Intermediate Holdings, Jostens, the DLJMB
Funds, or the transactions contemplated by this Agreement not expressly set
forth in this Agreement, and none of the Affiliates, officers, directors,
employees, agents, consultants, attorneys or representatives of the DLJMB
Funds, the Company, Intermediate Holdings or Jostens or any other Person will have or be subject to any
liability to such Syndicate Stockholder or any other Person resulting from the
distribution to such Syndicate Stockholder or its Affiliates, officers,
directors, employees, agents, consultants, attorneys or representatives  or such Syndicate Stockholder’s use of,
any due diligence or other information, distributed on behalf of the Company,
Intermediate Holdings or Jostens relating to the Company, Intermediate Holdings
or Jostens provided to such Syndicate Stockholder or its Affiliates, officers,
directors, employees, agents, consultants, attorneys or representatives, or any
other document or information in any form provided to such Syndicate
Stockholder or its Affiliates, officers, directors, employees, agents,
consultants, attorneys or representatives  in connection with the transactions contemplated
hereby.  Such Syndicate Stockholder
acknowledges that it has conducted to its satisfaction, its own independent
investigation of the condition, operations and business of the Company,
Intermediate Holdings and Jostens and, in making its determination to proceed
with the transactions contemplated by this Agreement, such Syndicate
Stockholder has relied on the results of its own independent investigation.

 

16

 

ARTICLE 5

CONDITIONS TO OBLIGATIONS OF EACH SYNDICATE STOCKHOLDER AT CLOSING

 

The obligations of each
Syndicate Stockholder under Article 2 to purchase the Shares are subject to the
fulfillment on or before the applicable Closing Date of each of the following
conditions:

 

SECTION 5.01.                 Representations and Warranties. 
The representations and warranties of the DLJMB Funds contained in
Article 3 hereof shall be true and correct on and as of the Closing Date with
the same force and effect as if they had been made at the Closing.

 

SECTION 5.02.                 Performance. 
Each of the DLJMB Funds shall have performed and complied with all
agreements and conditions contained in this Agreement required to be performed
or complied with by it on or before the Closing.

 

SECTION 5.03.                 Qualifications. 
All authorizations, approvals or permits, if any, of any governmental
authority or regulatory body that are required in connection with the lawful
sale of the Shares pursuant to this Agreement shall have been duly obtained and
shall be effective on and as of the Closing.

 

ARTICLE 6

CONDITIONS TO THE OBLIGATIONS OF THE DLJMB FUNDS AT CLOSING

 

The obligations of each
of the DLJMB Funds under Article 2 to deliver the Shares are subject to the
fulfillment on or before the applicable Closing Date of each of the following
conditions:

 

SECTION 6.01.                 Representations and Warranties. 
The representations, warranties and agreements of each Syndicate
Stockholder contained in Article 4 hereof shall be true and correct on and as
of the Closing Date with the same force and effect as if they had been made at
the Closing.

 

SECTION 6.02.                 Performance. 
Each Syndicate Stockholder shall have performed in all material respects
all of its obligations and materially complied with all of its covenants
required to be performed or complied with on or prior to the Closing.

 

SECTION 6.03.                 Qualifications. 
All authorizations, approvals or permits, if any, of any governmental
authority or regulatory body that are required in connection with the lawful
sale of the Shares pursuant to this Agreement shall have been duly obtained and
shall be effective on and as of the Closing.

 

17

 

ARTICLE 7

CORPORATE GOVERNANCE

 

SECTION 7.01.                 Composition of the Board. 
(a)  The Board shall initially
consist of seven (7) directors, all of whom shall be designated by DLJMB.  DLJMB shall be permitted to increase or
decrease the number of directors who serve on the Board from time to time and
DLJMB shall be permitted to designate any such additional directors.

 

(b)                                 Each Stockholder agrees that, if at any
time it is then entitled to vote for the election of directors to the Board, it
shall vote all of its Company Securities that are entitled to vote or execute
proxies or written consents, as the case may be, and take all other necessary
action (including causing the Company to call a special meeting of
Stockholders) in order to ensure that the composition of the Board is as set
forth in this Section 7.01.

 

SECTION 7.02.                 Removal.  Each
Stockholder agrees that, if at any time it is then entitled to vote for the
removal of directors from the Board, it shall not vote any of its Company
Securities in favor of the removal of any director who shall have been
designated by DLJMB pursuant to Section 7.01, unless DLJMB shall have consented
to such removal in writing; provided that if DLJMB shall request in
writing the removal, with or without cause, of such director, such Stockholder
shall vote all its Company Securities that are entitled to vote in favor of
such removal.

 

SECTION 7.03.                 Vacancies.  If, as a
result of death, disability, retirement, resignation, removal or otherwise,
there shall exist or occur any vacancy on the Board:

 

(a)                                  DLJMB may designate another individual
(the “Replacement Nominee”)
to fill such vacancy and serve as a director on the Board; and

 

(b)                                 each Stockholder then entitled to vote
for the election of directors to the Board agrees that it shall vote all of its
Company Securities that are entitled to vote or execute proxies or written
consents, as the case may be, in order to ensure that the Replacement Nominee
be elected to the Board.

 

SECTION 7.04.                 Charter or Bylaw Provisions. 
Each Stockholder agrees to vote all of its Company Securities that are
entitled to vote or execute proxies or written consents, as the case may be,
and to take all other actions necessary, to ensure that the Company’s Charter
and Bylaws (a) facilitate, and do not at any time conflict with, any provision
of this Agreement and (b) permit each Stockholder to receive the benefits to
which each such Stockholder is entitled under this Agreement.

 

SECTION 7.05.                 Observation Rights.  Except for such Syndicate Stockholders who
have waived their rights under this Section 7.05, prior to an Initial Public
Offering, those Syndicate Stockholders individually purchasing Shares hereunder

 

18

 

for an aggregate Purchase
Price of at least $19.5 million (treating, for purposes hereof, NIB Capital
Private Equity Co-Investments 2000 C.V., NIB Capital Private Equity Later Stage
Co-Investments Custodian II B.V. and their Permitted Transferees as one
Syndicate Stockholder) and not otherwise waiving their rights under this
Section 7.05 (the “Syndicate Group”)
shall collectively be entitled to appoint at any one time one representative
(the “Observer”)
to the Board.  The Syndicate Group
agrees that the Observer shall be designated by members of the Syndicate Group
on a rotating basis for each regularly scheduled meeting of the Board.  The Syndicate Group shall notify the Company
as to the identity of the Observer from time to time and the Company shall be
entitled to rely on that notice until it receives another notice identifying a
new Observer.  The Observer shall (i)
receive all notices and information that the Company distributes to the Board
in connection with regularly scheduled meetings (but not special meetings) of
the Board at the same time and manner as given to the members of the Board and
(ii) have the right to attend and observe in a non-voting capacity all
regularly scheduled meetings (but not special meetings) of the Board; provided,
however, that the Company reserves the right to exclude the Observer from
access to any material or meeting or portion thereof if the Company believes on
the advice of counsel that such exclusion is reasonably necessary to preserve
the attorney-client privilege; and, provided further, that except for any such
information provided to Stockholders entitled to information distributed to the
Board pursuant to Section 11.05 hereof, the Observer shall agree to maintain
the confidentiality of all Company information and all proceedings of the Board
to the same extent as he would be required to do if he were a director of the
Company.  The right of any individual
Syndicate Stockholder to be a member of the Syndicate Group shall terminate on
the date on which the value of its Shares (calculated based upon the purchase
prices set forth in Section 2.01) that continue to be held by such Syndicate
Stockholder falls below 50% (as a result of Transfers, except for Transfers to
a Permitted Transferee) of the initial value of such Shares (calculated based
upon the purchase prices set forth in Section 2.01).

 

SECTION 7.06.                 Conflicting Agreements. 
Each Stockholder represents and agrees that it shall not (a) grant any
proxy or enter into or agree to be bound by any voting trust or agreement with
respect to the Company Securities, except as expressly contemplated by this
Agreement, (b) enter into any agreement or arrangement of any kind with any
Person with respect to its Company Securities inconsistent with the provisions
of this Agreement or for the purpose or with the effect of denying or reducing
the rights of any other Stockholder under this Agreement, including agreements
or arrangements with respect to the Transfer or voting of its Company
Securities or (c) act, for any reason, as a member of a group or in concert
with any other Person in connection with the Transfer or voting of its Company
Securities in any manner that is inconsistent with the provisions of this
Agreement.

 

ARTICLE 8

RESTRICTIONS ON TRANSFER

 

SECTION 8.01.                 General Restrictions on Transfer. 
(a) Each Stockholder understands and agrees that the Company Securities
held by it on the date

 

19

 

hereof have not been registered
under the Securities Act and are restricted securities under the Securities Act
and the rules and regulations promulgated thereunder.  Each Stockholder agrees that it shall not Transfer any Company
Securities (or solicit any offers in respect of any Transfer of any Company
Securities), except in compliance with the Securities Act, any other applicable
securities or “blue sky” laws and any restrictions on Transfer contained in
this Agreement.  Prior to an Initial
Public Offering, no Stockholder shall Transfer any Company Securities to any
Person if such Transfer would result in adverse regulatory consequences to the
Company or Intermediate Holdings, as the case may be, including, without
limitation, obligations of the Company or Intermediate Holdings, as the case
may be, to file periodic reports with the SEC under the Exchange Act.

 

(b)                                 Notwithstanding anything in this
Agreement to the contrary, no Stockholder shall Transfer any Company Securities
to an Adverse Person without the prior written consent of the Company;
provided, however, that following an Initial Public Offering, a Stockholder may
Transfer Company Securities to an Adverse Person in an open market transaction
so long as such Stockholder reasonably has no knowledge that a recipient of
such Company Securities is an Adverse Person.

 

(c)                                  Any attempt to Transfer any Company
Securities not in compliance with this Agreement shall be null and void, and
the Company or Intermediate Holdings, as the case may be, shall not, and shall
cause any transfer agent not to, give any effect in the Company’s or Intermediate
Holdings’, as the case may be, stock records to such attempted Transfer.

 

SECTION 8.02.                 Legends.  (a)  In addition to any other legend that may be
required, each certificate for Company Securities issued to any Stockholder
shall bear a legend in substantially the following form:

 

“THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY FOREIGN OR
STATE SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT IN COMPLIANCE
THEREWITH.  THIS SECURITY IS ALSO SUBJECT
TO ADDITIONAL RESTRICTIONS ON TRANSFER AS SET FORTH IN THE STOCK PURCHASE AND
STOCKHOLDERS’ AGREEMENT DATED AS OF SEPTEMBER 3, 2003, COPIES OF WHICH MAY BE
OBTAINED UPON REQUEST FROM [JOSTENS HOLDING CORP.] [JOSTENS IH CORP.] OR ANY
SUCCESSOR THERETO.”

 

(b)                                 If any Company Securities shall cease to
be Registrable Securities under clause (i) of the definition thereof, the
Company or Intermediate Holdings, as the case may be, upon the written request
of the holder thereof, shall issue to such holder a new certificate evidencing
such Company Securities without the first sentence of the legend required by
Section 8.02(a) endorsed thereon.  If
any Company Securities are sold under clause (ii) or clause (iii) of the
definition of Registrable Securities, the Company or

 

20

 

Intermediate Holdings, as the
case may be, may request that the holder provide an opinion of legal counsel
reasonably acceptable to the Company or Intermediate Holdings, as the case may
be, stating that such Company Securities are freely transferable under the
Securities Act, and if it requests and receives such opinion, the Company or
Intermediate Holdings, as the case may be, shall issue to such holder a new
certificate evidencing such Company Securities without the first sentence of
the legend required by Section 8.02(a) endorsed thereon.  If any Company Securities cease to be
subject to any and all restrictions on Transfer and all other obligations set
forth in this Agreement, the Company or Intermediate Holdings, as the case may
be, upon the written request of the holder thereof, shall issue to such holder
a new certificate evidencing such Company Securities without the second
sentence of the legend required by Section 8.02(a) endorsed thereon.

 

SECTION 8.03.                 Permitted Transferees.

 

(a)                                  Subject to Section 8.01, any Stockholder
may at any time Transfer any or all of its Company Securities to a Permitted
Transferee without the consent of any Person and without compliance with
Sections 8.04, 9.01 and 9.02, as the case may be, so long as (a) such Permitted
Transferee shall have agreed in writing to be bound by the terms of this
Agreement in the form of Exhibit A attached hereto and (b) the Transfer
is in compliance with the Securities Act, any other applicable securities or
“blue sky” laws and any other restrictions on Transfer contained in this
Agreement.  Such Stockholder must give
written prior notice to the Company or Intermediate Holdings, as the case may
be, of any proposed Transfer to a Permitted Transferee, including the identity
of such proposed Permitted Transferee and such other information reasonably
requested by the Company or Intermediate Holdings, as the case may be, to
ensure compliance with the terms of this Agreement and the Company or Intermediate
Holdings, as the case may be, shall be entitled to condition any such Transfer
on receipt of an opinion of counsel reasonably acceptable to the Company or
Intermediate Holdings, as the case may be, that such Transfer is exempt from
the registration requirements of the Securities Act.

 

(b)                                 If, while a Permitted Transferee holds
any Company Securities, a Permitted Transferee ceases to qualify as a Permitted
Transferee in relation to the initial transferring Stockholder from whom or
which such Permitted Transferee or any previous Permitted Transferee of such
initial transferring Stockholder received such shares or becomes an Adverse
Person (an “Unwinding Event”),
then:

 

(i)                                     the relevant initial transferor
Stockholder shall forthwith notify the other Stockholders, the Company and
Intermediate Holdings, as applicable, of the pending occurrence of such
Unwinding Event; and

 

(ii)                                  prior to such Unwinding Event, such
initial transferor Stockholder shall take all actions necessary to effect a
Transfer of all the Company Securities held by the relevant Permitted
Transferee either back to such Stockholder or, pursuant to this Section 8.03,
to another Person

 

21

 

which qualifies as a Permitted Transferee of such
initial transferring Stockholder.

 

SECTION 8.04.                 Restrictions on Transfers by Syndicate
Stockholders.  (a) 
Subject to Section 8.04(b), no Syndicate Stockholder may Transfer any of
its Company Securities except to a Permitted Transferee in accordance with
Section 8.03 or as follows (in each case in compliance with the Securities Act,
any other applicable securities or “blue sky” laws or any restrictions
contained in this Agreement):

 

(i)                                     in a Transfer of Company Securities in a
Tag-Along Sale or Drag-Along Sale pursuant to Section 9.01 or 9.02; or

 

(ii)                                  following the consummation of an Initial
Public Offering, in a Transfer of Company Securities to a Third Party following
a Transfer by the DLJMB Funds, subject to Section 10.02, provided that a
Syndicate Stockholder shall only be permitted to Transfer no more than that
number of any class of Company Securities equal to such Syndicate Stockholder’s
Aggregate Ownership of that class on the date of the Initial Public Offering
after giving effect thereto multiplied by an amount equal to one (1) minus a
fraction, the numerator of which is the DLJMB Funds’ Aggregate Ownership of
that class after giving effect to such Transfer and the denominator of which is
the DLJMB Funds’ Aggregate Ownership of that class on the date of the Initial
Public Offering after giving effect thereto. 
The DLJMB Funds will provide the Syndicate Stockholders with reasonably
prompt written notice of any such Transfers.

 

(b)                                 The restrictions on Transfers set forth
in Section 8.04(a) above shall terminate at the earlier to occur of (i) the
tenth anniversary of the first Closing Date hereunder and (ii) the date when
the Remaining Initial Ownership for the DLJMB Funds falls below 15%.

 

SECTION 8.05.                 Restrictions on Transfers by DLJMB Funds. 
Prior to the Initial Public Offering, any DLJMB Fund may at any time
Transfer any Company Securities (i) to a Permitted Transferee in compliance
with Section 8.03 or (ii) to any other Person so long as (A) such Transfer is
not to an Adverse Person without the prior written consent of the Company, (B)
the transferee agrees to be bound by this Agreement and (C) the transferor
complies with Section 9.01 hereof to the extent applicable to such
Transfer.  After the Initial Public
Offering, subject to Section 10.02, there shall be no restrictions on any DLJMB
Fund’s ability to Transfer any Company Securities.

 

ARTICLE 9

TAG-ALONG RIGHTS; DRAG-ALONG RIGHTS; PREEMPTIVE RIGHTS

 

SECTION 9.01.                 Tag-Along Rights. 
(a)  Excluding the sales to the
Syndicate Stockholders contemplated by Article 2 and Transfers to Permitted
Transferees in compliance with Section 8.03, the DLJMB Funds shall be permitted
to Transfer in the

 

22

 

aggregate
Company Securities representing up to 10% of the Initial Ownership of the DLJMB
Funds (after giving effect to the transactions contemplated by Article 2) of
each class without being subject to this Section 9.01 (the “Initial Basket”).  Subject to Sections 9.01(g) and 9.03, if any
DLJMB Funds (collectively, the “Tag-Along Seller”) propose to Transfer any class of
Company Securities to any Third Party or Third Parties in a single transaction
or in a series of related transactions involving the Transfer by the DLJMB
Funds of Company Securities which exceed the Initial Basket (a “Tag-Along Sale”),

 

(i)                                     the Tag-Along Seller shall provide each
Other Stockholder written notice of the terms and conditions of such proposed
Transfer (“Tag-Along Notice”)
and offer each Other Stockholder the opportunity to participate in such
Transfer in accordance with this Section 9.01, and

 

(ii)                                  each Other Stockholder may elect, at its
option, to participate in the proposed Transfer in accordance with this Section
9.01 (each such electing Other Stockholder, a “Tagging Person”).

 

The Tag-Along Notice
shall identify the number and class of Company Securities proposed to be sold
by the Tag-Along Seller and all other Company Securities subject to the offer
(“Tag-Along Offer”),
the consideration for which the Transfer is proposed to be made, and all other
material terms and conditions of the Tag-Along Offer, including the form of the
proposed agreement, if any, and a firm offer by the proposed Third Party
transferee to purchase Company Securities from the Stockholders in accordance
with this Section 9.01.

 

From the date of its
receipt of the Tag-Along Notice, each Tagging Person shall have the right (a “Tag-Along Right”),
exercisable by notice (“Tag-Along Response Notice”) given to the Tag-Along
Seller within ten (10) Business Days after its receipt of the Tag-Along Notice
(the “Tag-Along Notice
Period”), to request and require that the Tag-Along Seller
include in the proposed Transfer up to the number of Company Securities
constituting its Tag-Along Portion of Company Securities and the Tag-Along
Seller shall include the number of Company Securities proposed to be
Transferred by the Tag-Along Seller as set forth in the Tag-Along Notice,
reduced by the aggregate number of Company Securities to be sold by all Tagging
Persons.  Each Tag-Along Response Notice
shall include wire transfer instructions for payment of the purchase price for
the Company Securities to be sold in such Tag-Along Sale.  Each Tagging Person that exercises its
Tag-Along Rights hereunder shall deliver to the Tag-Along Seller, with its
Tag-Along Response Notice, the certificate or certificates representing the
Company Securities of such Tagging Person to be included in the Tag-Along Sale,
together with a limited power-of-attorney authorizing the Tag-Along Seller to
Transfer such Company Securities on the terms set forth in the Tag-Along
Notice.  Delivery of the Tag-Along
Response Notice with such certificate or certificates and limited
power-of-attorney shall constitute an irrevocable acceptance of the Tag-Along
Offer by such Tagging Persons.

 

23

 

If, at the end of a
120-day period after the Tag-Along Date (which 120-day period shall be extended
if any of the transactions contemplated by the Tag-Along Offer are subject to
regulatory approval until the expiration of five (5) Business Days after all
such approvals have been received, but in no event later than 180 days
following the Tag-Along Date by the Tag-Along Seller), the Tag-Along Seller has
not completed the Transfer of all such Company Securities on substantially the
same terms and conditions set forth in the Tag-Along Notice, the Tag-Along
Seller shall (i) promptly return to each Tagging Person the limited
power-of-attorney (and all copies thereof) together with all certificates
representing the Company Securities that such Tagging Person delivered for
Transfer pursuant to this Section 9.01(a) and any other documents in the
possession of the Tag-Along Seller executed by the Tagging Persons in
connection with the proposed Tag-Along Sale, and (ii) not conduct any Transfer
of Company Securities without again complying with this Section 9.01(a).

 

(b)                                 Concurrently with the consummation of the
Tag-Along Sale, the Tag-Along Seller shall (i) notify the Tagging Persons
thereof, (ii) remit or cause to be remitted to the Tagging Persons the total
consideration to be paid at the closing of the Tag-Along Sale for the Company
Securities of the Tagging Persons Transferred pursuant thereto, with the cash
portion of the purchase price paid by wire transfer of immediately available
funds in accordance with the wire transfer instructions in the applicable
Tag-Along Response Notices and (iii) promptly after the consummation of such
Tag-Along Sale, furnish such other evidence of the completion and the date of
completion of such Transfer and the terms thereof as may be reasonably
requested by the Tagging Persons.

 

(c)                                  If at the termination of the Tag-Along
Notice Period any Other Stockholder shall not have elected to participate in
the Tag-Along Sale, such Other Stockholder shall be deemed to have waived its
rights under Section 9.01(a) with respect to, and only with respect to, the
Transfer of its Company Securities pursuant to such Tag-Along Sale.

 

(d)                                 If (i) any Other Stockholder declines to
exercise its Tag-Along Rights or (ii) any Tagging Person elects to exercise its
Tag-Along Rights with respect to less than such Tagging Person’s Tag-Along
Portion (the “Excess Portion”),
the Tag-Along Seller shall notify the Tagging Persons who desire to sell their
Tag-Along Portion (but not less than such amount) (a “Fully Participating Tagging Person”) and the
Tag-Along Seller and any Fully Participating Tagging Person shall be entitled
to Transfer, pursuant to the Tag-Along Offer, in addition to any Company Securities
already being Transferred, a number of Company Securities held by it equal to
the product of (i) the Excess Portion and (ii) a fraction, the numerator of
which is the Aggregate Ownership of the class of Company Securities of the
Tag-Along Seller or Fully Participating Tagging Person, as the case may be, and
the denominator of which is equal to the sum of the Aggregate Ownership of the
class of Company Securities of the Tag-Along Seller and all Fully Participating
Tagging Persons.

 

(e)                                  The Tag-Along Seller shall Transfer, on
behalf of itself and any Tagging Person, the Company Securities subject to the
Tag-Along Offer and elected to be

 

24

 

Transferred on the terms and conditions set forth in
the Tag-Along Notice within 120 days (or such longer period as extended under
Section 9.01(a)) of the date on which all Tag-Along Rights shall have been
waived, exercised or expired (the “Tag-Along Date”).

 

(f)                                    Notwithstanding anything contained in
this Section 9.01, there shall be no liability on the part of the Tag-Along
Seller to the Tagging Persons (other than the obligation to return any
certificates evidencing Company Securities and limited powers- of-attorney
received by the Tag-Along Seller) if the Transfer of Company Securities
pursuant to Section 9.01 is not consummated for whatever reason.  The decision to effect a Transfer of Company
Securities pursuant to this Section 9.01 by the Tag-Along Seller is in the sole
and absolute discretion of the Tag-Along Seller.

 

(g)                                 The provisions of this Section 9.01 shall
not apply to any Transfer of Company Securities: (i) to any Permitted
Transferees of the Tag-Along Seller, (ii) in a Drag-Along Sale for which the
Drag-Along Seller shall have elected to exercise its rights under Section 9.02
or (iii) in the Initial Public Offering or at any time thereafter.  The provisions of this Section 9.01 shall
terminate upon the consummation of the Initial Public Offering.

 

SECTION 9.02.                 Drag-Along Rights. 
(a)  Subject to Sections 9.02(g)
and 9.03, if one or more of the DLJMB Funds (collectively, the “Drag-Along Seller”)
propose to Transfer any class of Company Securities to any Third Party or
Parties (the “Drag-Along Transferee”)
in a single transaction or in a series of related transactions, and

 

(i)                                     the Company Securities to be Transferred
by the Drag-Along Seller represent not less than 50% of the Initial Ownership
of that class of Company Securities owned by the DLJMB Funds (in which case the
provisions of Sections 9.02(b)-(e) and (g) shall apply),

 

(ii)                                  the Company Securities to be Transferred
by the Drag-Along Seller, together with the Company Securities to be
Transferred by the Other Stockholders pursuant to this Section 9.02(a),
constitute more than 50% of the Common Shares then outstanding (in which case
the provisions of Sections 9.02(b)-(e) and (g) shall apply), or

 

(iii)                               the Transfer is a Block Sale (in which
case the provisions of Sections 9.02(f)-(g) shall apply),

 

(any such Transfer, a “Drag-Along Sale”),
the Drag-Along Seller may at its option (in the case of (i) and (ii) above, and
shall, in the case of (iii) above) require each Other Stockholder to Transfer
the Drag-Along Portion of the class of Company Securities (“Drag-Along Rights”)
then held by such Other Stockholder for the same consideration per share or
unit of the relevant class of Company Securities and otherwise on the same
terms and conditions as the Drag-Along Seller.

 

25

 

(b)                                 The Drag-Along Seller shall provide
notice of such Drag-Along Sale to the Other Stockholders (a “Drag-Along Sale Notice”)
not later than five (5) Business Days prior to the proposed Drag-Along
Sale.  The Drag-Along Sale Notice shall
identify the Drag-Along Transferee, the number of Company Securities subject to
the Drag-Along Sale, the consideration for which a Transfer is proposed to be
made (the “Drag-Along Sale Price”)
and all other material terms and conditions of the Drag-Along Sale.  The number of Company Securities to be sold
by each Other Stockholder shall be the Drag-Along Portion of the class of
Company Securities that such Other Stockholder owns.  Each Other Stockholder shall be required to participate in the
Drag-Along Sale on the terms and conditions set forth in the Drag-Along Sale
Notice and to tender the Drag-Along Portion of its Company Securities as set
forth below.  The price payable in such
Transfer shall be the Drag-Along Sale Price. 
Not later than five (5) Business Days after the date of the Drag-Along
Sale Notice (the “Drag-Along Sale Notice
Period”), each of the Other Stockholders shall deliver to a
representative of the Drag-Along Seller designated in the Drag-Along Sale
Notice the certificate and other applicable instruments representing the
Company Securities of such Other Stockholder to be included in the Drag-Along
Sale, together with a limited power-of-attorney authorizing the Drag-Along
Seller or such representative to Transfer such Company Securities on the terms
set forth in the Drag-Along Notice and wire transfer instructions for payment
of the cash portion of the consideration to be received in such Drag-Along
Sale, or, if such delivery is not permitted by applicable law, an unconditional
agreement to deliver such Company Securities pursuant to this Section 9.02(b)
at the closing for such Drag-Along Sale against delivery to such Other
Stockholder of the consideration therefor. 
If an Other Stockholder should fail to deliver such certificates to the
Drag-Along Seller and the Drag-Along Sale is consummated, the Company shall
cause the books and records of the Company to show that such Company Securities
are bound by the provisions of this Section 9.02(b) and that such Company
Securities shall be Transferred to the Drag-Along Transferee immediately upon
surrender for Transfer by the holder thereof.

 

(c)                                  The Drag-Along Seller shall have a period
of 120 days from the date of receipt of the Drag-Along Sale Notice to
consummate the Drag-Along Sale on the terms and conditions set forth in such
Drag-Along Sale Notice, provided that, if such Drag-Along Sale is subject to
regulatory approval, such 120-day period shall be extended until the expiration
of five Business Days after all such approvals have been received, but in no
event later than 180 days following the date of receipt of the Drag-Along Sale
Notice.  If the Drag-Along Sale shall
not have been consummated during such period, the Drag-Along Seller shall
promptly return to each of the Other Stockholders the limited power-of-attorney
(and all copies thereof) and all certificates and other applicable instruments
representing Company Securities that such Other Stockholders delivered for
Transfer pursuant hereto, together with any other documents in the possession
of the Drag-Along Seller executed by the Other Stockholders in connection with
such proposed Transfer, and all the restrictions on Transfer contained in this
Agreement or otherwise applicable at such time with respect to such Company
Securities owned by the Other Stockholders shall again be in effect.

 

26

 

(d)                                 Concurrently with the consummation of the
Drag-Along Sale, the Drag-Along Seller shall give notice thereof to the Other
Stockholders, shall remit or cause to be remitted to each of the Other
Stockholders that have surrendered their certificates and other applicable
instruments the total consideration to be paid at the closing of the Drag-Along
Sale (the cash portion of which is to be paid by wire transfer of immediately
available funds in accordance with such Other Stockholder’s wire transfer
instructions) for the Company Securities Transferred pursuant hereto and shall
furnish such other evidence of the completion and time of completion of such
Transfer and the terms thereof as may be reasonably requested by such Other
Stockholders.

 

(e)                                  Notwithstanding anything contained in
this Section 9.02, there shall be no liability on the part of the Drag-Along
Seller to the Other Stockholders (other than the obligation to return the
limited power-of-attorney and the certificates and other applicable instruments
representing Company Securities received by the Drag-Along Seller) if the
Transfer of Company Securities pursuant to this Section 9.02 is not consummated
for whatever reason, regardless of whether the Drag-Along Seller has delivered
a Drag-Along Sale Notice.  The decision
to effect a Transfer of Company Securities pursuant to this Section 9.02 by the
Drag-Along Seller is in the sole and absolute discretion of the Drag-Along
Seller.

 

(f)                                    (i)                                     Following the consummation of the Initial Public
Offering, upon the request of DLJMB, each of the Other Stockholders shall
deliver to DLJMB and, at the option of each Other Stockholder, such Other
Stockholder may deliver to DLJMB (a) the stock certificates for and a limited
power-of-attorney relating to the Company Securities so specified, which such
power-of-attorney shall authorize the Drag-Along Seller to Transfer such
Company Securities in connection with any Block Sale, (b) transfer instructions
for payment of consideration to be received in any Block Sale and (c) such
other instruments and agreements as are reasonably requested by DLJMB in order
to effectuate the provisions of this Section 9.02(f).  If DLJMB has requested stock certificates and a limited
power-of-attorney to tender the Drag-Along Portion of the Other Stockholder’s
Company Securities, any Other Stockholder may, by written notice to DLJMB,
request, and DLJMB shall, promptly effect a Transfer of the Company Securities
described in such notice and otherwise permitted under this Agreement on its
behalf.

 

(ii)                                  The Drag-Along Seller shall have no
obligation to provide prior notice of any Block Sale to the Other
Stockholders.  The number of Company
Securities to be sold by each Other Stockholder in any Block Sale shall be its
Drag-Along Portion of the relevant class of Company Securities being sold.  Each Other Stockholder shall be required to
participate in the Drag-Along Sale and, to the extent DLJMB has not requested
stock certificates and a limited power-of-attorney to tender the Drag-Along
Portion of the Other Stockholder’s Company Securities, shall, upon the request
of DLJMB, be obligated to promptly tender their securities and power of
attorney as set forth in Section 9.02(b) above, in any event no later than the
end of the Business Day immediately preceding

 

27

 

settlement date for any Block Sale.  If an Other Stockholder fails to timely
deliver its stock certificates and/or power of attorney within one Business Day
of the request by DLJMB, whether requested pursuant to subsection (i) above or
this subsection (ii), then the Drag-Along Seller shall have no obligation to
include such Other Stockholder in the Drag-Along Sale.  The price per share of Company Securities payable
in such Block Sale shall be the price per share received by the DLJMB Funds in
such sale.

 

(iii)                               After the execution of any Block Sale,
the Drag-Along Seller shall provide prompt written notice to the Other
Stockholders of such trade, which notice shall identify the number of Company
Securities sold in connection with the Drag-Along Sale and the consideration
for which the Transfer was made and upon the settlement of any Block Sale, the
Drag-Along Seller shall remit or cause to be remitted to each of the Other
Stockholders the total consideration paid at the closing of the Drag-Along Sale
by wire transfer of immediately available funds and shall furnish such other
evidence of the completion and time of completion of such Transfer and the
terms thereof as may be reasonably requested by such Other Stockholders.

 

(iv)                              Notwithstanding anything contained in
this Section 9.02(f), there shall be no liability on the part of the Drag-Along
Seller to the Other Stockholders if the Transfer of Company Securities pursuant
to this Section 9.02(f) is not consummated for whatever reason, regardless of
whether the Drag-Along Seller has delivered any prior notice of a Block
Sale.  The decision to effect a Transfer
of Company Securities of a Block Sale by the Drag-Along Seller is in the sole
and absolute discretion of the Drag-Along Seller.

 

(g)                                 The provisions of this Section 9.02 shall
not apply to any Transfer of the Common Shares in a Public Offering; provided,
however, that the provisions of this Section 9.02 shall continue to apply in
connection with any Transfer of the Preferred Shares in a Public Offering.  The provisions of this Section 9.02 shall
continue in effect following the consummation of the Initial Public Offering.

 

SECTION 9.03.                 Additional Conditions to Tag-Along Sales
and Drag-Along Sales.  Notwithstanding anything contained in
Sections 9.01 or 9.02, in connection with a Tag-Along Sale under Section 9.01
or a Drag-Along Sale under Section 9.02:

 

(a)                                  the DLJMB Funds shall ensure that upon
the consummation of such Tag-Along Sale or Drag-Along Sale, all of the
Stockholders participating therein will receive the same form and amount of
consideration per share, or, if any Stockholders are given an option as to the
form and amount of consideration to be received, all Stockholders participating
therein will be given the same option; and

 

28

 

(b)                                 each Other Stockholder shall (i) make
such representations, warranties and covenants and enter into such definitive
agreements as are customary for transactions of the nature of the proposed
Transfer, (ii) benefit from and be subject to all of the same provisions of the
definitive agreements as the Tag-Along Seller or Drag-Along Seller, as the case
may be, and (iii) be required to bear their proportionate share of any escrows,
holdbacks or adjustments in respect of the purchase price or indemnification
obligations; provided that no Other Stockholder shall be obligated (A) to
indemnify, other than severally indemnify, any Person in connection with such
Tag-Along Sale or Drag-Along Sale, as the case may be, or (B) to incur
liability to any Person in connection with such Tag-Along Sale or Drag-Along
Sale, as the case may be, including without limitation under any indemnity, in
excess of the lesser of (1) its pro rata share of such liability and (2) the
proceeds realized by such Other Stockholder in such sale.

 

SECTION 9.04.                 Preemptive Rights. 
(a) The Company, Intermediate Holdings or Jostens, as the case may be,
shall give each Syndicate Stockholder written notice (an “Issuance Notice”) of any proposed issuance by
the Company, Intermediate Holdings or Jostens, as the case may be, of any
Company Securities to any DLJMB Funds or their successors at least ten (10)
Business Days prior to the proposed issuance date.  The Issuance Notice shall specify the number and class of such
Company Securities and the price at which such Company Securities are to be
issued to any DLJMB Fund or DLJMB Funds and the other material terms and
conditions of the issuance.  Subject to
Section 9.04(e) below, if any DLJMB Fund or DLJMB Funds will purchase any such
Company Securities from the Company, Intermediate Holdings or Jostens, as the
case may be, each Syndicate Stockholder shall be entitled to purchase such
Syndicate Stockholder’s Pro Rata Share of the Company Securities proposed to be
issued to the DLJMB Funds, at the price and on the other terms and conditions
specified in the Issuance Notice.

 

(b)                                 Each Syndicate Stockholder may exercise
its rights under this Section 9.04 by delivering notice of its election to
purchase such Company Securities to the Company, Intermediate Holdings or
Jostens, as the case may be, and the DLJMB Funds within ten (10) Business Days
of receipt of the Issuance Notice.  A
delivery of such notice (which notice shall specify the number (or amount) of
Company Securities to be purchased by the Syndicate Stockholder submitting such
notice) by such Syndicate Stockholder shall constitute a binding agreement of
such Syndicate Stockholder to purchase, at the price and on the terms and
conditions specified in the Issuance Notice, the number (or amount) of Company
Securities specified in such Syndicate Stockholder’s notice.  If, at the termination of such ten (10)
Business Day-period, any Syndicate Stockholder shall not have exercised its
rights to purchase any of such Syndicate Stockholder’s Pro Rata Share of such
Company Securities, such Syndicate Stockholder shall be deemed to have waived
all of its rights under this Section 9.04 with respect to, and only with
respect to, the purchase of such Company Securities.

 

(c)                                  If any Syndicate Stockholder declines to
exercise its preemptive rights under this Section 9.04 or elects to exercise
such rights with respect to less than such Syndicate Stockholder’s Pro Rata
Share (the “Excess Shares”),
the DLJMB Funds

 

29

 

and any participating Syndicate Stockholder electing
to exercise its rights with respect to its full Pro Rata Share (a “Fully Participating Syndicate
Stockholder”) shall be entitled to purchase from the Company,
Intermediate Holdings or Jostens, as the case may be, an additional number of
Company Securities equal to the product of (i) the Excess Shares and (ii) a
fraction, the numerator of which is the Aggregate Ownership of that class of
Company Securities of the DLJMB Funds or the Fully Participating Syndicate
Stockholder, as the case may be, and the denominator of which is equal to the
sum of the Aggregate Ownership of that class of Company Securities of the DLJMB
Funds and all Fully Participating Syndicate Stockholders.

 

(d)                                 The Company, Intermediate Holdings or
Jostens, as the case may be, shall have ninety (90) days from the date of the
Issuance Notice to consummate the proposed issuance of any or all of such
Company Securities that the DLJMB Funds and each Syndicate Stockholder have
elected not to purchase at the price and upon terms and conditions that are not
materially less favorable to the Company, Intermediate Holdings or Jostens, as
the case may be, than those specified in the Issuance Notice, provided
that, if such issuance is subject to regulatory approval, such 90-day period
shall be extended until the expiration of five (5) Business Days after all such
approvals have been received, but in no event later than 120 days from the date
of the Issuance Notice.  At the
consummation of such issuance, the Company, Intermediate Holdings or Jostens,
as the case may be, shall issue certificates representing the Company
Securities to be purchased by each Syndicate Stockholder exercising preemptive
rights pursuant to this Section 9.04 registered in the name of such Syndicate
Stockholder, against payment by such Syndicate Stockholder of the purchase
price for such Company Securities.  If
the Company, Intermediate Holdings or Jostens, as the case may be, proposes to
issue any class of Company Securities after such 90-day period or on other
terms materially less favorable to the issuer, it shall again comply with the
procedures set forth in this Section 9.04.

 

(e)                                  None of the Company, Intermediate
Holdings or Jostens shall be under any obligation to consummate any proposed
issuance of Company Securities, nor shall there be any liability on the part of
the Company, Intermediate Holdings or Jostens to any Syndicate Stockholder if
the proposed issuance of Company Securities pursuant to this Section 9.04 is
not consummated for whatever reason, regardless of whether it shall have
delivered an Issuance Notice in respect of such proposed issuance.

 

(f)                                    The Company, Intermediate Holdings or
Jostens may offer and sell Company Securities to the DLJMB Funds subject to the
preemptive rights under this Section 9.04 without first offering such Company
Securities to the Syndicate Stockholders or complying with the procedures of
this Section 9.04, so long as the Syndicate Stockholders receive prompt written
notice of such sales and thereafter are given the opportunity to purchase their
respective Pro Rata Shares of such Company Securities within forty-five (45)
days after the close of such sale and in any event no later than ten (10)
Business Days from receipt of the notice referred to herein on substantially
the same terms and conditions as such sale to the DLJMB Funds, however, the
price of such Company Securities shall be identical to the price paid by the
DLJMB Funds.

 

30

ARTICLE 10

REGISTRATION RIGHTS

 

SECTION 10.01.                                        Piggyback
Registration.  (a) If the Company
(for purposes of this Article 10, to the extent Company Securities
includes equity securities of Intermediate Holdings, “Company” shall refer to
the Company or Intermediate Holdings, as applicable) proposes to register any
Company Securities under the Securities Act (whether for itself or in
connection with a sale of securities by a Third Party, but other than a
registration on Form S-8 or S-4, or any successor or similar forms, relating to
Common Shares issuable upon exercise of employee stock options or in connection
with any employee benefit or similar plan of the Company or in connection with
a direct or indirect acquisition by the Company of another Person) and in such
registration shares of Registrable Securities owned by the DLJMB Funds will be
offered for sale, the Company shall each such time give prompt written notice
at least ten (10) Business Days prior to the anticipated filing date of the
registration statement relating to such registration to each Stockholder
hereunder, which notice shall set forth such Stockholder’s rights under this
Section 10.01 and shall offer such Stockholder the opportunity to include
in such registration statement up to a number of the same class or series of
Registrable Securities as proposed to be offered in such registration equal to
its total amount of such Registrable Securities multiplied by a fraction, the
numerator of which is the number of such Registrable Securities proposed to be
sold by the DLJMB Funds (for its own account) in such offering and the
denominator of which is the aggregate number of such Registrable Securities of
such class or series held by the DLJMB Funds at such time (a “Piggyback Registration”),
subject to the restrictions set forth herein. 
Upon the request of any such Stockholder made within five (5) Business
Days after the receipt of notice from the Company (which request shall specify
the number of Registrable Securities intended to be registered by such
Stockholder), the Company shall use its best efforts to effect the registration
under the Securities Act of all Registrable Securities that the Company has
been so requested to register by all such Stockholders with rights to require
registration of Company Securities hereunder, to the extent requisite to permit
the disposition of the Registrable Securities so to be registered, provided
that (i) if such registration involves a Public Offering, all such Stockholders
requesting to be included in the Company’s registration must sell their
Registrable Securities to the underwriters on the same terms and conditions as
apply to the Company or any other selling stockholders, and (ii) if, at any
time after giving notice of its intention to register any Company Securities
pursuant to this Section 10.01(a) and prior to the effective date of the
registration statement filed in connection with such registration, the Company
shall determine for any reason not to register such securities, the Company
shall give notice to all such Stockholders and, thereupon, shall be relieved of
its obligation to register any Registrable Securities in connection with such
registration.  The Company shall be
liable for and pay all Registration Expenses in connection with each Piggyback
Registration.

 

(b)                                 If
a Piggyback Registration involves a Public Offering and the managing
underwriter advises the Company that, in its view, the number of Company
Securities that the Company and such selling stockholders propose to include in
such

 

31

 

registration exceeds the
largest number of shares that can be sold without having an adverse effect on
such offering, including the price at which such shares can be sold (the “Maximum Offering Size”),
the Company shall include in such registration, in the following priority, up
to the Maximum Offering Size:

 

(i)                                     first,
so much of the Company Securities proposed to be registered for the account of
the Company, if any, as would not cause the offering to exceed the Maximum
Offering Size, and

 

(ii)                                  second,
all Registrable Securities requested to be included in such registration by any
Stockholders pursuant to Section 10.01 and similar registration rights
provided to Stockholders by the Company (allocated, if necessary for the
offering not to exceed the Maximum Offering Size, pro rata among such
Stockholders based on their relative ownership of Company Securities).

 

SECTION 10.02.                                        Lock-Up
Agreements.  If any registration of
Company Securities shall be effected in connection with a Public Offering and
provided that the DLJMB Funds are subject to the same restrictions set forth
herein, neither the Company nor any Other Stockholder shall effect any public
sale or distribution, including any sale pursuant to Rule 144, of any Company
Securities or other security of the Company (except as part of such Public
Offering) during the period (each such period, a “Lock-Up Period”) beginning five (5) days
prior to distribution of a preliminary prospectus until the earlier of (i) such
time as the Company and the lead managing underwriter shall agree and (ii) (A)
180 days after the effective date of the Initial Public Offering in the event
of an Initial Public Offering and (B) 90 days after the effective date of the
Public Offering for other Public Offerings; provided, however, that this
restriction shall not apply to any Company Securities or other securities of
the Company acquired in the Initial Public Offering, in any Public Offering or
in any open market transaction following the Initial Public Offering.

 

SECTION 10.03.                                        Participation
in a Public Offering.  Whenever any
Stockholders exercise their rights under this Section 10.01:

 

(a)                                  The
Company may require each such Stockholder registering Shares hereunder (each, a
“Registering Stockholder”)
to promptly furnish in writing to the Company such information regarding the
distribution of the Registrable Securities as the Company may from time to time
request and such other information as may be legally required in connection
with such registration.

 

(b)                                 Each
such Registering Stockholder agrees that, upon receipt of any written notice
from the Company of the occurrence of any event requiring the preparation of a
supplement or amendment of a prospectus relating to the Registrable Securities
covered by a registration statement that is required to be delivered under the
Securities Act so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain an untrue statement of
a material fact or omit to state any

 

32

 

material fact required to
be stated therein or to make the statements therein not misleading, such
Stockholder shall forthwith discontinue disposition of Registrable Securities
pursuant to the registration statement covering such Registrable Securities
until such Stockholder’s receipt of the copies of a supplemented or amended
prospectus, and, if so directed by the Company, such Stockholder shall deliver
to the Company all copies, other than any permanent file copies then in such
Stockholder’s possession, of the most recent prospectus covering such
Registrable Securities at the time of receipt of such notice.

 

(c)                                  No
Stockholder will be permitted to require registration of any Registrable Securities
in any Public Offering hereunder unless such Stockholder (a) agrees to sell
such Registrable Securities on the basis provided in any underwriting
arrangements approved by the Persons entitled to approve such arrangements and
(b) completes and executes all questionnaires, powers of attorney, indemnities,
underwriting agreements and other documents reasonably required under the terms
of such underwriting arrangements and the provisions of this Agreement in
respect of registration rights.

 

SECTION 10.04.                                        Indemnification
by the Company.  The Company agrees
to indemnify and hold harmless each Registering Stockholder holding Registrable
Securities covered by a registration statement, its officers, directors,
employees, managers, members, partners and agents, and each Person, if any, who
controls any such Persons within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and
all losses, claims, damages, liabilities and expenses (including reasonable
expenses of investigation and reasonable attorneys’ fees and expenses) (“Damages”) caused by
or relating to any untrue statement or alleged untrue statement of a material
fact contained in any registration statement or prospectus relating to the
Registrable Securities (as amended or supplemented if the Company shall have
furnished any amendments or supplements thereto) or any preliminary prospectus,
or caused by or relating to any omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as such Damages are caused by or related
to any such untrue statement or omission or alleged untrue statement or
omission so made based upon information furnished in writing to the Company by
such Stockholder or on such Stockholder’s behalf expressly for use therein, provided
that, with respect to any untrue statement or omission or alleged untrue
statement or omission made in any preliminary prospectus, or in any prospectus,
as the case may be, the indemnity agreement contained in this paragraph shall
not apply to the extent that any Damages result from the fact that a current
copy of the prospectus (or such amended or supplemented prospectus, as the case
may be) was not sent or given to the Person asserting any such Damages at or
prior to the written confirmation of the sale of the Registrable Securities
concerned to such Person if it is determined that the Company has provided such
prospectus to such Stockholder and it was the responsibility of such
Stockholder to provide such Person with a current copy of the prospectus (or
such amended or supplemented prospectus, as the case may be) and

 

33

 

such current copy of the
prospectus (or such amended or supplemented prospectus, as the case may be)
would have cured the defect giving rise to such Damages.

 

SECTION 10.05.                                        Indemnification
by the Participating Stockholders. 
Each Registering Stockholder holding Registrable Securities included in
any registration statement agrees, severally but not jointly, to indemnify and
hold harmless the Company, its officers, directors and agents and each Person,
if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act to the same extent
as the foregoing indemnity from the Company to such Stockholder, but only (i)
with respect to information furnished in writing to the Company by such
Stockholder or on such Stockholder’s behalf expressly for use in any
registration statement or prospectus relating to the Registrable Securities, or
any amendment or supplement thereto, or any preliminary prospectus or (ii) to
the extent that any Damages result from the fact that a current copy of the
prospectus (or such amended or supplemented prospectus, as the case may be) was
not sent or given to the Person asserting any such Damages at or prior to the
written confirmation of the sale of the Registrable Securities concerned to
such Person if it is determined that it was the responsibility of such
Stockholder to provide such Person with a current copy of the prospectus (or
such amended or supplemented prospectus, as the case may be) and such current
copy of the prospectus (or such amended or supplemented prospectus, as the case
may be) was available to such Stockholder and would have cured the defect
giving rise to such Damages.  Each such
Stockholder also agrees to indemnify and hold harmless underwriters of the
Registrable Securities, their officers and directors and each Person who
controls such underwriters within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act on substantially the same
basis as that of the indemnification of the Company provided in this Section 10.05.  No Registering Stockholder shall be liable
under this Section 10.05 for any Damages in excess of the net proceeds
realized by such Stockholder in the sale of Registrable Securities of such Stockholder
to which such Damages relate.

 

SECTION 10.06.                                        Conduct
of Indemnification Proceedings.  If
any proceeding (including any governmental investigation) shall be instituted
involving any Person in respect of which indemnity may be sought pursuant to
this Article 10, such Person (an “Indemnified Party”) shall promptly notify the Person
against whom such indemnity may be sought (the “Indemnifying Party”) in writing and the
Indemnifying Party shall assume the defense thereof, including the employment
of counsel reasonably satisfactory to such Indemnified Party, and shall assume
the payment of all fees and expenses, provided that the failure of any
Indemnified Party so to notify the Indemnifying Party shall not relieve the
Indemnifying Party of its obligations hereunder except to the extent that the
Indemnifying Party is materially prejudiced by such failure to notify.  In any such proceeding, any Indemnified
Party shall have the right to retain its own counsel, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party unless (i)
the Indemnifying Party and the Indemnified Party shall have mutually agreed to
the retention of such counsel or (ii) in the reasonable judgment of such
Indemnified Party representation of both parties by the same counsel would be

 

34

 

inappropriate due to
actual or potential differing interests between them.  It is understood that, in connection with any proceeding or
related proceedings in the same jurisdiction, the Indemnifying Party shall not be
liable for the reasonable fees and expenses of more than one separate firm of
attorneys (in addition to any local counsel) at any time for all such
Indemnified Parties, and that all such fees and expenses shall be reimbursed as
they are incurred.  In the case of any
such separate firm for the Indemnified Parties, such firm shall be designated
in writing by the Indemnified Parties. 
The Indemnifying Party shall not be liable for any settlement of any
proceeding effected without its written consent, but if settled with such
consent, or if there be a final judgment for the plaintiff, the Indemnifying
Party shall indemnify and hold harmless such Indemnified Parties from and
against any Damages (to the extent stated above) by reason of such settlement
or judgment.  Without the prior written
consent of the Indemnified Party, no Indemnifying Party shall effect any
settlement of any pending or threatened proceeding in respect of which any
Indemnified Party is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Party, unless such settlement includes an
unconditional release of such Indemnified Party from all liability arising out
of such proceeding.

 

SECTION 10.07.                                        Contribution.  If the indemnification provided for in this
Article 10 is unavailable to the Indemnified Parties in respect of any
Damages, then each such Indemnifying Party, in lieu of indemnifying such
Indemnified Party, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such Damages (i) as between the Company and
the Registering Stockholders holding Registrable Securities covered by a
registration statement on the one hand and the underwriters on the other, in
such proportion as is appropriate to reflect the relative benefits received by
the Company and such Stockholders on the one hand and the underwriters on the
other, from the offering of the Registrable Securities, or if such allocation
is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits but also the relative fault of the
Company and such Stockholders on the one hand and of such underwriters on the
other in connection with the statements or omissions that resulted in such
Damages, as well as any other relevant equitable considerations and (ii) as
between the Company on the one hand and each such Stockholder on the other, in
such proportion as is appropriate to reflect the relative fault of the Company
and of each such Stockholder in connection with such statements or omissions,
as well as any other relevant equitable considerations.  The relative benefits received by the
Company and such Stockholders on the one hand and such underwriters on the
other shall be deemed to be in the same proportion as the total proceeds from
the offering (net of underwriting discounts and commissions but before
deducting expenses) received by the Company and such Stockholders bear to the
total underwriting discounts and commissions received by such underwriters, in
each case as set forth in the table on the cover page of the prospectus.  The relative fault of the Company and such
Stockholders on the one hand and of such underwriters on the other shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company and such
Stockholders or by such underwriters.

 

35

 

The relative fault of the
Company on the one hand and of each such Stockholder on the other shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by such party, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.

 

The Company and
the Registering Stockholders agree that it would not be just and equitable if
contribution pursuant to this Section 10.07 were determined by pro rata
allocation (even if the underwriters were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the
equitable considerations referred to in the immediately preceding
paragraph.  The amount paid or payable
by an Indemnified Party as a result of the Damages referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by
such Indemnified Party in connection with investigating or defending any such
action or claim.  Notwithstanding the
provisions of this Section 10.07, no underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which
the Registrable Securities underwritten by it and distributed to the public
were offered to the public exceeds the amount of any Damages that such
underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission, and no Registering
Stockholder shall be required to contribute any amount in excess of the amount
by which the net proceeds realized by such Stockholder in the sale of
Registrable Securities of such Stockholder to which such Damages relate exceeds
the amount of any Damages that such Stockholder has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.  No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. 
Each Registering Stockholder’s obligation to contribute pursuant to this
Section 10.07 is several in the proportion that the proceeds of the
offering received by such Stockholder bears to the total proceeds of the
offering received by all such Registering Stockholders and not joint.

 

SECTION 10.08.                                        Other
Indemnification.  Indemnification
similar to that specified herein (with appropriate modifications) shall be
given by the Company and each Stockholder participating therein with respect to
any required registration or other qualification of securities under any
federal or state law or regulation or governmental authority other than the
Securities Act.

 

SECTION 10.09.                                        Cooperation
by the Company.  If any Stockholder
shall transfer any Registrable Securities pursuant to Rule 144, the Company
shall cooperate, to the extent commercially reasonable, with such Stockholder
and shall provide to such Stockholder such information as such Stockholder
shall reasonably request.

 

36

 

SECTION 10.10.                                        No
Transfer of Registration Rights. 
None of the rights of Stockholders under this Article 10 shall be
assignable by any Stockholder to any Person acquiring Securities in any Public
Offering or pursuant to Rule 144 but are assignable to other Persons to whom
Company Securities are Transferred in compliance with this Agreement.

 

ARTICLE 11

CERTAIN COVENANTS AND AGREEMENTS

 

SECTION 11.01.                                        Confidentiality.  (a) 
Each Syndicate Stockholder agrees that Confidential Information (as
defined below) furnished and to be furnished to it was and shall be made
available in connection with such Syndicate Stockholder’s investment in the
Company.  Such Syndicate Stockholder
acknowledges that the Confidential Information which such Syndicate Stockholder
has obtained or will obtain is the property of the Company and its
Subsidiaries.  Such Syndicate
Stockholder agrees that neither it nor its Representatives (as defined below)
shall use any Confidential Information other than in connection with its
investment in the Company, and not for any other purpose and each Syndicate
Stockholder agrees that neither it nor its Representatives shall, directly or
indirectly, disclose, reveal, divulge or communicate to any Person or use or
otherwise exploit for its or their own benefit or for the benefit of anyone
other than the Company and its Subsidiaries, any Confidential Information,
except that Confidential Information may be disclosed: (i) to such
Stockholder’s Representatives (as defined below) in the normal course of the
performance of their duties or to any financial institution providing credit to
such Syndicate Stockholder provided that (A) no such Person may be an Adverse
Person and (B) any such Person in receipt of Confidential Information advised
in writing of the confidential nature of the Confidential Information and the
Syndicate Stockholder’s obligations under this Agreement and such Syndicate
Stockholder shall be responsible for any breach by such Persons of the
obligations of such Syndicate Stockholder in this Section 11.01,
(ii) to the extent required by applicable law, rule or regulation
(including complying with any oral or written questions, interrogatories,
requests for information or documents, subpoena, civil investigative demand or
similar process to which a Syndicate Stockholder is subject; provided that such
Syndicate Stockholder give the Company prompt notice of such requests, to the
extent practicable, so that the Company may seek an appropriate protective
order or similar relief (and the Stockholder shall cooperate with such efforts
by the Company, and shall in any event make only the minimum disclosure
required by such law, rule or regulation)) or (iii) if the prior written
consent of the Company shall have been obtained. Notwithstanding anything to
the contrary set forth herein or in any other agreement to which the parties
hereto are parties or by which they are bound, the obligations of
confidentiality contained herein and therein, as they relate to the sale of the
Shares, shall not apply to the tax structure or tax treatment of the sale of
the Shares, and each party hereto (and any employee, representative, or agent
of any party hereto) may disclose to any and all Persons, without limitation of
any kind, the tax structure and tax treatment of the sale of the Shares;
provided, however, that such disclosure shall not include the name (or other
identifying information not relevant to the tax structure or tax

 

37

 

treatment) of any Person
and shall not include information for which nondisclosure is reasonably
necessary in order to comply with applicable securities laws.

 

(b)                                 “Confidential Information”
shall mean trade secrets, confidential or proprietary information and all other
knowledge, know-how, information, documents or materials owned, developed or
possessed by the Company or any Persons that are or become its Subsidiaries,
whether in tangible or intangible form, pertaining to the business of the
Company or its Subsidiaries or any customer, known or intended to be known only
to directors, officers or employees of the Company or its Subsidiaries or other
persons in a confidential relationship with the Company or its Subsidiaries or
the confidentiality of which the Company or its Subsidiaries takes reasonable
measures to protect, including, but not limited to, operating procedures,
knowledge of the organization, publications and events (including advertising
and exhibitor prices, costs, sales or content), processes, contracts, financial
information or measures, non-public financial information, business methods,
future business plans, customers (including identities of customers and
prospective customers, identities of individual contacts at business entities
which are customers or prospective customers, preferences, businesses or habits),
business relationships, board materials and other information owned, developed
or possessed by the Company or its Subsidiaries; provided that Confidential
Information shall not include information that (i) is or becomes generally
known to the public other than as a result of a disclosure by a Syndicate
Stockholder or its Affiliates, general partners, directors, officers, managers,
managing members, employees, agents, counsel, accountants, investment advisers
or representatives (all such Persons being collectively referred to as “Representatives”) who
need to have access to the Confidential Information for legitimate business
purposes not in violation of this Agreement, (ii) is or was available to such
Stockholder on a non-confidential basis prior to its disclosure to such
Stockholder or its Representatives, or (iii) was or becomes available to such
Stockholder on a non-confidential basis from a source other than the Company,
which source is or was (at the time of receipt of the relevant information)
not, to the best of such Stockholder’s knowledge, bound by a confidentiality
agreement with the Company or another Person.

 

SECTION 11.02.                                        Restrictive
Covenants.

 

(a)                                  Without
the prior written consent of the Company, no Restricted Person (as defined
below) shall, directly or indirectly, own, manage, operate, control or
participate in the ownership, management, operation or control of any business,
whether in corporate, proprietorship or partnership form or otherwise,
primarily engaged in the United States or Canada in school photography services
and school-related affinity products and services, including yearbooks, class
rings and graduation products (a “Restricted Business”); provided, however, that the
restrictions contained in this Section 11.02(a) shall not (i) restrict the
acquisition by such Restricted Person, directly or indirectly, of less than 2%
of the outstanding capital stock of any publicly traded company engaged in a
Restricted Business or (ii) restrict such Restricted Person from being the
beneficial owner of a limited partnership interest in a limited partnership
that holds an investment in a Restricted Businesses so long as such limited
partnership interest does not itself indirectly represent a controlling
interest in such Restricted

 

38

 

Business.  For purposes of the foregoing, with respect
to each Syndicate Stockholder, “Restricted Person” shall mean such Syndicate Stockholder
and its Affiliates, general partners, directors, officers, managers, managing
members, employees, investment advisors, representatives and agents who are in
receipt of Confidential Information.  A
Syndicate Stockholder shall be responsible for any breach by its Affiliates,
general partners, directors, officers, managers, managing members, employees
and agents of this Section 11.02.

 

(b)                                 The parties hereto agree that, if any court
of competent jurisdiction in a final nonappealable judgment determines that a
specified time period, a specified geographical area, a specified business
limitation or any other relevant feature of this Section 11.02 is
unreasonable, arbitrary or against public policy, then a lesser time period,
geographical area, business limitation or other relevant feature which is
determined to be reasonable, not arbitrary and not against public policy may be
enforced against the applicable party.

 

SECTION 11.03.                                        Monthly
Reports.  Within 15 days after the
end of each calendar month, the Company shall furnish to each Syndicate
Stockholder purchasing Shares hereunder for an aggregate Purchase Price of at
least $9.5 million (treating, for
purposes hereof, NIB Capital Private Equity Co-Investments 2000 C.V., NIB
Capital Private Equity Later Stage Co-Investments Custodian II B.V. and their
Permitted Transferees as one Syndicate Stockholder) an unaudited
management report prepared by the Company in the ordinary course of business
consistent with past practice. 
Following an Initial Public Offering, a Syndicate Stockholder shall not
be entitled to continue to receive such reports unless it executes and delivers
to the Company a confidentiality agreement in form and substance reasonably
satisfactory to the Company and such Syndicate Stockholder designed to ensure
compliance with the federal securities laws. 
The right of any individual Syndicate Stockholder to receive such
monthly reports shall terminate on the date on which the value of its Shares (calculated based upon
the purchase prices set forth in Section 2.01) that continue to be held by
such Syndicate Stockholder falls below 25% (as a result of Transfers, except
for Transfers to a Permitted Transferee) of the initial value of such Shares
(calculated based upon the purchase prices set forth in Section 2.01).

 

SECTION 11.04.                                        Financial
Statements.  If at any time the
Company is no longer required to file periodic reports pursuant to the Exchange
Act, it will prepare and furnish to the Syndicate Stockholders quarterly
unaudited consolidated financial statements (no later than sixty (60) days
after the end of each of the first three (3) quarters of each fiscal year of
the Company) and year-end audited consolidated financial statements (no later
than ninety (90) days after the end of the fiscal year of the Company).

 

SECTION 11.05.                                        Board
Packages.  Prior to the Initial
Public Offering, the Company shall provide each Syndicate Stockholder
purchasing Shares hereunder for an aggregate Purchase Price of at least $9.5
million (treating, for purposes hereof,
NIB Capital Private Equity Co-Investments 2000 C.V., NIB Capital Private

 

39

 

Equity
Later Stage Co-Investments Custodian II B.V. and their Permitted Transferees as
one Syndicate Stockholder) with a copy of all notices and information
that the Company distributes to the Board in connection with regularly
scheduled meetings (but not special meetings) of the Board at the same time and
in the same manner as given to the members of the Board.  The right of any individual Syndicate
Stockholder to receive such board packages shall terminate on the date on which
the value of its Shares
(calculated based upon the purchase prices set forth in Section 2.01) that
continue to be held by such Syndicate Stockholder falls below 50% (as a result
of Transfers, except for Transfers to a Permitted Transferee) of the initial
value of such Shares (calculated based upon the purchase prices set forth in
Section 2.01).

 

ARTICLE 12

MISCELLANEOUS

 

SECTION 12.01.                                        Stockholders
Representative.  For purposes of
this Agreement, the DLJMB Funds hereby consent to the appointment of DLJMB, as
representative (the “Stockholders Representative”) of the DLJMB Funds, and as
attorney-in-fact for and on behalf of the DLJMB Funds, and, subject to the
express limitations set forth below, the taking by the Stockholders
Representative of any and all actions and the making of any decisions required
or permitted to be taken by the DLJMB Funds under this Agreement.  The Stockholders Representative will have
unlimited authority and power to act on behalf of the DLJMB Funds with respect
to this Agreement and the disposition, settlement or other handling of all
claims, rights or obligations arising under this Agreement so long as all DLJMB
Funds are treated in the same manner. 
The DLJMB Funds will be bound by all actions taken by the Stockholders
Representative in connection with this Agreement.  In performing its functions hereunder, the Stockholders
Representative will not be liable to the DLJMB Funds in the absence of gross
negligence or willful misconduct.

 

SECTION 12.02.                                        Binding
Effect; Assignability; Benefit. 
(a)  This Agreement shall inure
to the benefit of and be binding upon the parties hereto and their respective
heirs, successors, legal representatives and permitted assigns.  Any Stockholder that ceases to own
beneficially any Company Securities shall cease to be bound by the terms hereof
(other than (i) the provisions of Sections 10.04, 10.05, 10.06, 10.07 and 10.08
applicable to such Stockholder with respect to any offering of Registrable
Securities completed before the date such Stockholder ceased to own any Company
Securities, (ii) Section 11.01 and (iii) Article 12).

 

(b)                                 Neither
this Agreement nor any right, remedy, obligation or liability arising hereunder
or by reason hereof shall be assignable by any party hereto pursuant to any
Transfer of Company Securities or otherwise, except that any Person acquiring
Company Securities that is required or permitted by the terms of this Agreement
to become a party hereto shall (unless already bound hereby) execute and
deliver to the Company an agreement to be bound by this Agreement in the form
of Exhibit A hereto and shall thenceforth be a “Stockholder”.

 

40

 

(c)                                  Nothing
in this Agreement, expressed or implied, is intended to confer on any Person
other than the parties hereto, and their respective heirs, successors, legal
representatives and permitted assigns, any rights, remedies, obligations or
liabilities under or by reason of this Agreement.

 

SECTION 12.03.                                        Notices.  All notices, requests and other
communications to any party shall be in writing and shall be delivered in
person, mailed by certified or registered mail, return receipt requested, or
sent by facsimile transmission,

 

If to the Company
or Intermediate Holdings, to:

 

Jostens
Holding Corp.

Jostens
IH Corp.

c/o
Jostens, Inc.

5501
Norman Center Drive

Minneapolis,
MN  55437

Attention: Paula Johnson

Facsimile:  (952) 830-8492

 

If to the DLJMB Funds, to:

 

c/o
DLJ Merchant Banking III, Inc.

Eleven
Madison Avenue

New
York, NY 10010

Attention:  David Wittels

Facsimile:
 (212) 538-0415

 

 

In
each case with a copy to:

 

Weil, Gotshal &
Manges LLP

767 Fifth Avenue

New York, New York 10153

Attention:  Douglas
P. Warner, Esq.

Facsimile:  (212) 310-8007

 

If to a Syndicate Stockholder, to the address set
forth below the name of such Syndicate Stockholder on Annex B hereto

 

or, in each case,
at such other address or fax number as such party may hereafter specify for the
purpose of notices hereunder by written notice to the other parties
hereto.  All notices, requests and other
communications shall be deemed received on the date of receipt by the recipient
thereof if received prior to 5:00 p.m. in the place of receipt and such day is
a Business Day in the place of receipt. 
Otherwise, any such notice, request or communication shall be deemed not
to have been received until the next succeeding

 

41

 

Business Day in
the place of receipt.  Any notice,
request or other written communication sent by facsimile transmission shall be
confirmed by certified or registered mail, return receipt requested, posted
within one (1) Business Day, or by personal delivery, whether courier or
otherwise, made within two (2) Business Days after the date of such facsimile
transmissions.

 

Any Person that
hereafter becomes a Stockholder shall provide its address and fax number to the
Company, which shall promptly provide such information to each other
Stockholder.

 

SECTION 12.04.                                        Waiver;
Amendment; Termination.  (a)  No provision of this Agreement may be waived
except by an instrument in writing executed by the party against whom the
waiver is to be effective.  No provision
of this Agreement may be amended or otherwise modified except by an instrument
in writing executed by (1) the Company; (2) Intermediate Holdings; (3) DLJMB;
and, if any such amendment adversely affects the rights or obligations of the
Syndicate Stockholders under this Agreement, the Syndicate Stockholders holding
at least 50% of the outstanding Common Shares held by all of the Syndicate
Stockholders at the time of such proposed amendment or modification.  Upon any amendment of this Agreement, prompt
written notice thereof shall be sent by the Company to each of the Stockholders.

 

(b)                                 This
Agreement shall terminate on the tenth anniversary of the Closing Date unless
earlier terminated, provided that such term may be extended by the Company and
Intermediate Holdings with the consent of the DLJMB Funds and the holders of at
least 50% of the outstanding Common Shares held by the Syndicate Stockholders
at the time of such extension.

 

SECTION 12.05.                                        Fees
and Expenses.  Each party shall pay
its own costs and expenses incurred in connection with the preparation and
execution of this Agreement, or any amendment or waiver hereof, and the
transactions contemplated hereby and all matters related hereto.

 

SECTION 12.06.                                        Governing
Law.  This Agreement shall be
governed by, and construed in accordance with, the laws of the State of
Delaware, without regard to the conflicts of laws rules of such state.

 

SECTION 12.07.                                        Jurisdiction.  The parties hereby agree that any suit,
action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions
contemplated hereby shall be brought in the United States District Court for
the Southern District of New York or any New York State court sitting in New
York City, so long as one of such courts shall have subject matter jurisdiction
over such suit, action or proceeding, and that any case of action arising out
of this Agreement shall be deemed to have arisen from a transaction of business
in the State of New York, and each of the parties hereby irrevocably consents
to the jurisdiction of such courts (and of the appropriate appellate courts
therefrom) in any such suit, action or proceeding and irrevocably waives, to
the fullest extent permitted by

 

42

 

law, any objection that
it may now or hereafter have to the laying of the venue of any such suit,
action or proceeding in any such court or that any such suit, action or
proceeding which is brought in any such court has been brought in an
inconvenient form.  Process in any such
suit, action or proceeding may be served on any party anywhere in the world,
whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party
agrees that service of process on such party as provided in Section 12.03
shall be deemed effective service of process on such party.

 

SECTION 12.08.                                        Waiver
of Jury Trial.  EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

SECTION 12.09.                                        Specific
Enforcement; Cumulative Remedies. 
The parties hereto acknowledge that money damages may not be an adequate
remedy for violations of this Agreement and that any party, in addition to any
other rights and remedies which the parties may have hereunder or at law or in
equity, may, in his or its sole discretion, apply to a court of competent
jurisdiction for specific performance or injunction or such other relief as
such court may deem just and proper in order to enforce this Agreement or prevent
any violation hereof and, to the extent permitted by applicable law, each party
waives any objection to the imposition of such relief.  All rights, powers and remedies provided
under this Agreement or otherwise available in respect hereof at law or in equity
shall be cumulative and not alternative, and the exercise or beginning of the
exercise of any thereof by any party shall not preclude the simultaneous or
later exercise of any other such rights, powers or remedies by such party.

 

SECTION 12.10.                                        Attorneys’
Fees.  In any action or proceeding
brought to enforce any provision of this Agreement, or where any provision
hereof or thereof is validly asserted as a defense, the successful party shall
be entitled to recover reasonable attorneys’ fees in addition to any other
available remedy.

 

SECTION 12.11.                                        Entire
Agreement.  This Agreement and any
exhibits and other documents referred to herein constitute the entire agreement
and understanding among the parties hereto in respect of the subject matter
hereof and thereof and supersede all prior and contemporaneous agreements and
understandings, both oral and written, among the parties hereto, or between any
of them, with respect to the subject matter hereof and thereof.

 

SECTION 12.12.                                        Captions.  The captions herein are included for
convenience of reference only and shall be ignored in the construction or
interpretation hereof.

 

SECTION 12.13.                                        Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void or unenforceable, the remainder of the
terms, provisions, covenants and restrictions of this Agreement shall remain in
full force and effect and

 

43

 

shall in no way be
affected, impaired or invalidated.  Upon
such a determination, the parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner so that the transactions contemplated hereby
be consummated as originally contemplated to the fullest extent possible.

 

SECTION 12.14.                                        Counterparts;
Effectiveness.  This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be
an original, with the same effect as if the signatures thereto and hereto were
upon the same instrument.

 

 

44

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

 

	
   

  	
  Jostens Holding Corp.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Robert C. Buhrmaster

  
	
   

  	
   

  	
  Name:  Robert
  C. Buhrmaster

  
	
   

  	
   

  	
  Title: 
  Chairman & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Jostens IH Corp.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Robert C. Buhrmaster

  
	
   

  	
   

  	
  Name:  Robert
  C. Buhrmaster

  
	
   

  	
   

  	
  Title: 
  Chairman & CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJMB
  FUNDS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ Merchant Banking
  Partners III, L.P.

  
	
   

  	
  By:

  	
  DLJ Merchant Banking III,
  Inc.

  
	
   

  	
   

  	
  Managing General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Mozingo

  
	
   

  	
   

  	
  Name:  Jason
  Mozingo

  
	
   

  	
   

  	
  Title: 
  Attorney-In-Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ Merchant Banking III, Inc., as Advisory

  General Partner on behalf of DLJ Offshore Partners

  III-1, C.V. and as attorney-in-fact for DLJ Merchant

  Banking III, L.P., as Associate General Partner of

  DLJ Offshore Partners III-1, C.V.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Mozingo

  
	
   

  	
   

  	
  Name:  Jason
  Mozingo

  
	
   

  	
   

  	
  Title: 
  Attorney-In-Fact

  

 

 

	
   

  	
  DLJ Merchant Banking III, Inc., as Advisory

  General Partner on behalf of DLJ Offshore Partners

  III-2, C.V. and as attorney-in-fact for DLJ Merchant

  Banking III, L.P., as Associate General Partner of

  DLJ Offshore Partners III-2, C.V.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Mozingo

  
	
   

  	
   

  	
  Name:  Jason
  Mozingo

  
	
   

  	
   

  	
  Title: 
  Attorney-In-Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ Merchant Banking III, Inc., as Advisory

  General Partner on behalf of DLJ Offshore Partners

  III, C.V.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Mozingo

  
	
   

  	
   

  	
  Name:  Jason
  Mozingo

  
	
   

  	
   

  	
  Title: 
  Attorney-In-Fact

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ MB Partners III GmbH
  & Co. KG

  
	
   

  	
  By:

  	
  DLJ Merchant Banking III,
  L.P.

  
	
   

  	
   

  	
  Managing Limited Partner

  
	
   

  	
  By:

  	
  DLJ Merchant Banking III,
  Inc.

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Mozingo

  
	
   

  	
   

  	
  Name:  Jason
  Mozingo

  
	
   

  	
   

  	
  Title: 
  Attorney-In-Fact

  
	
   

  	
   

  
	
   

  	
  Millennium Partners II,
  L.P.

  
	
   

  	
  By:

  	
  DLJ Merchant Banking III,
  Inc.

  
	
   

  	
   

  	
  Managing General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Mozingo

  
	
   

  	
   

  	
  Name:  Jason
  Mozingo

  
	
   

  	
   

  	
  Title: 
  Attorney-In-Fact

  

 

 

	
   

  	
  MBP III Plan Investors, L.P.

  
	
   

  	
  By:

  	
  DLJ LBO Plans Management Corporation

  
	
   

  	
   

  	
  Managing General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason Mozingo

  
	
   

  	
   

  	
  Name:  Jason
  Mozingo

  
	
   

  	
   

  	
  Title: 
  Attorney-In-Fact

  

 

 

	
   

  	
  SYNDICATE STOCKHOLDERS

  
	
   

  	
   

  
	
   

  	
  NIB CAPITAL PRIVATE EQUITY

  
	
   

  	
  CO-INVESTMENTS 2000 C.V.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  its general partner NIB Capital Private Equity

  Co-Investments B.V.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Represented by NIB Capital Private

  
	
   

  	
   

  	
  Equity N.V

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Willemijn Milders

  	
   

  
	
   

  	
   

  	
   

  	
  Willemijn Milders

  Legal Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Patrick F.F. de van der Schueren

  	
   

  
	
   

  	
   

  	
   

  	
  Patrick F.F. de van der
  Schueren

  Head of Legal Affairs

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NIB CAPITAL PRIVATE EQUITY

  
	
   

  	
  LATER STAGE CO-INVESTMENTS

  CUSTODIAN II B.V. (as custodian for NIB Capital

  Private Equity Later Stage Co-Investments II C.V.)

  
	
   

  	
   

  
	
   

  	
  By:

  	
  NIB Capital Private Equity N.V., its managing

  director

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Willemijn Milders

  
	
   

  	
   

  	
   

  	
  Willemijn Milders

  Legal Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Patrick F.F. de van der Schueren

  	
   

  
	
   

  	
   

  	
   

  	
  Patrick F.F. de van der
  Schueren

  Head of Legal Affairs

  
							

 

 

	
   

  	
  New York Life Capital
  Partners, L.P.

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  NYLCAP Manager, LLC,

  
	
   

  	
   

  	
   

  	
  its investment manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam G. Clemens

  
	
   

  	
   

  	
  Name:  Adam
  G. Clemens

  Title:  Executive VP and COO

  

 

 

	
   

  	
  The Northwestern Mutual
  Life Insurance Company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Barras

  
	
   

  	
   

  	
  Name:  David
  A. Barras

  Title:  Its Authorized Representative

  

 

 

	
   

  	
  C-SQUARED CDO LTD.

  
	
   

  	
   

  
	
   

  	
  By: TCW Advisors, Inc., as
  its

  Portfolio Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan Insull

  
	
   

  	
   

  	
  Name:  Jonathan Insull

  Title: 
  Managing Director

  

 

 

	
   

  	
  CCC/OMNI Investment
  Partners. L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Attanasio

  
	
   

  	
   

  	
   

  	
  Name:  Mark Attanasio

  Title: 
  General Partner

  

 

 

ANNEX A

 

Attached.

 

 

ANNEX B

 

SYNDICATE STOCKHOLDER NOTICE INFORMATION

 

NIB Capital Private Equity Co-Investments 2000 C.V.

NIB Capital Private Equity Later Stage
Co-Investments Custodian II B.V.

 

	
  Iain Leigh and Dennis Ever

  	
   

  	
   

  
	
  NIB Capital Private Equity Inc.

  	
   

  	
   

  
	
  600 5th Avenue, 17th Floor

  	
   

  	
   

  
	
  New York, N.Y. 10020

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  For legal materials, a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Patrick F.F. de van der
  Schueren

  	
   

  	
   

  
	
  NIB Capital Private Equity NV

  	
   

  	
   

  
	
  Head of Legal Affairs

  	
   

  	
   

  
	
  Jachthavenweg 118

  	
   

  	
   

  
	
  Amsterdam 1081 KJ

  	
   

  	
   

  
	
  The Netherlands

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Daniel Kolb

  	
   

  	
   

  
	
  Ropes and Gray

  	
   

  	
   

  
	
  45 Rockefeller Center

  	
   

  	
   

  
	
  New York, N.Y. 10111-0087

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Northwestern Mutual Life Insurance Company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The Northwestern Mutual
  Life Insurance Company

  	
   

  	
   

  
	
  720 East Wisconsin Avenue

  	
   

  	
   

  
	
  Milwaukee, Wisconsin 53202

  	
   

  	
   

  
	
  Attention:

  	
  Lisa Cadotte

  	
   

  	
   

  
	
  Facsimile:

  	
  (414) 665-7124

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New York Life Capital Partners, L.P.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New York Life Capital
  Partners, L.P.

  	
   

  	
   

  
	
  c/o NYLCAP Manager, LLC

  	
   

  	
   

  
	
  51 Madison Avenue, Suite
  3009

  	
   

  	
   

  
	
  New York, NY  10010

  	
   

  	
   

  
	
  Attention:

  	
  Adam Clemens

  	
   

  	
   

  
					

 

 

	
   

  	
  Amanda Parness

  	
   

  	
   

  
	
   

  	
  Matthew Cashion

  	
   

  	
   

  
	
   

  	
  Nancy Scotton

  	
   

  	
   

  
	
  Facsimile:

  	
  (212) 576-5591

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New York Life Investment
  Management LLC

  	
   

  	
   

  
	
  Office of the General
  Counsel

  	
   

  	
   

  
	
  51 Madison Avenue, Room
  1104

  	
   

  	
   

  
	
  New York, NY  10010

  	
   

  	
   

  
	
  Attention:

  	
  Donnamarie Cristina, Esq.

  	
   

  	
   

  
	
  Facsimile:

  	
  (212) 576-8340

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In each case with a copy,
  which shall not constitute notice, to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Akin
  Gump Strauss Hauer & Feld LLP

  	
   

  	
   

  
	
  590 Madison Avenue

  	
   

  	
   

  
	
  New York, NY  10022

  	
   

  	
   

  
	
  Attention:

  	
  James E. Kaye, Esq.

  	
   

  	
   

  
	
  Facsimile:

  	
  (212) 407-1002

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  C-Squared CDO Ltd

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  c/o JPMorgan Chase Bank –
  Texas

  	
   

  	
   

  
	
  Attn:  Melanie Ecter / Acct. 10202133.2

  	
   

  	
   

  
	
  600 Travis Street, 48th
  Floor

  	
   

  	
   

  
	
  Houston, TX 77002-8039

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With a copy, which shall
  not constitute notice, to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  C-SQUARED CDO LTD

  	
   

  	
   

  
	
  Trust Company of the West

  	
   

  	
   

  
	
  200 Park Avenue, Suite
  2200

  	
   

  	
   

  
	
  New York, NY 10166

  	
   

  	
   

  
	
  Attn:

  	
  Steven Kalin

  	
   

  	
   

  
	
   

  	
  Matthew Miller

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  CCC/OMNI Investment Partners, L.P.

  	
   

  	
   

  
	
  11100 Santa Monica Blvd.

  	
   

  	
   

  
	
  Suite 2000

  	
   

  	
   

  
	
  Los Angeles, CA 90025

  	
   

  	
   

  
					

 

 

EXHIBIT A

 

JOINDER TO SYNDICATE
STOCKHOLDERS’ AGREEMENT

 

This Joinder Agreement
(this “Joinder Agreement”)
is made as of the date written below by the undersigned (the “Joining Party”) in
accordance with the Stock Purchase and Stockholders’ Agreement dated as of
September 3, 2003 (the “Syndicate Stockholders’ Agreement”) among JOSTENS
HOLDING CORP., JOSTENS IH CORP. and certain other persons named therein, as the
same may be amended from time to time. 
Capitalized terms used, but not defined, herein shall have the meaning
ascribed to such terms in the Syndicate Stockholders’ Agreement.

 

The Joining Party hereby
acknowledges, agrees and confirms that, by its execution of this Joinder
Agreement, the Joining Party shall be deemed to be a party to and “Stockholder”
under the Syndicate Stockholders’ Agreement as of the date hereof and shall
have all of the rights and obligations of the Stockholder from whom it has
acquired Company Securities (to the extent permitted by the Syndicate
Stockholders’ Agreement) as if it had executed the Syndicate Stockholders’
Agreement.  The Joining Party hereby
ratifies, as of the date hereof, and agrees to be bound by, all of the terms,
provisions and conditions contained in the Syndicate Stockholders’ Agreement.

 

IN WITNESS WHEREOF, the
undersigned has executed this Joinder Agreement as of the date written below.

 

	
  Date:

  	
   

  	
   

  	
   

  	
  ,

  	
   

  	
   

  	 

	
   

  	
   

  
	
   

  	
  [NAME OF JOINING PARTY]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
  Address for Notices:

  
										

 

AGREED ON THIS [     ] day of
[      ], 200[  ]:

 

	
  JOSTENS HOLDING CORP.

  
	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
  JOSTENS IH CORP.

  
	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT B

 

INSTRUMENT OF ACCESSION

 

This Instrument of
Accession (this “Instrument of
Accession”) is made as of the date written below by the
undersigned (the “Additional Syndicate
Stockholder”) in accordance with the Stock Purchase and
Stockholders’ Agreement dated as of September 3, 2003 (the “Syndicate Stockholders’ Agreement”)
among JOSTENS HOLDING CORP., JOSTENS IH CORP. and certain other persons named
therein, as the same may be amended from time to time.  Capitalized terms used, but not defined,
herein shall have the meaning ascribed to such terms in the Syndicate Stockholders’
Agreement.

 

By execution of this
Instrument of Accession, the Additional Syndicate Stockholder shall be deemed
to be a party to and “Syndicate Stockholder” under the Syndicate Stockholders’
Agreement as of the date hereof and shall have all of the rights and
obligations of a Syndicate Stockholder, including the obligation to purchase
the number of shares of Common Stock and Preferred Stock set forth opposite the
signature of the Additional Syndicate Stockholder below for the Purchase Price
set forth below.  The Additional
Syndicate Stockholder hereby ratifies, as of the date hereof, and agrees to be
bound by, all of the terms, provisions and conditions contained in the
Syndicate Stockholders’ Agreement.

 

This Instrument of
Accession shall take effect and shall become an integral part of the Syndicate
Stockholders’ Agreement immediately upon (i) execution and delivery by the
Additional Syndicate Stockholder to the DLJMB Funds and (ii) execution on
behalf of the DLJMB Funds, Jostens Holding Corp. and Jostens IH Corp. of this
Instrument of Accession.

 

IN WITNESS WHEREOF, the
undersigned has executed this Joinder Agreement as of the date written below.

 

	
  Date:

  	
   

  	
   

  	
   

  	
  ,

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [NAME OF ADDITIONAL SYNDICATE

  STOCKHOLDER]

  
	
  Number of shares of Class A Common

  Stock: 

  	
   

  
	
  Number of shares of Class B Common

  Stock: 

  	
   

  
	
  Number of shares of Preferred Stock:

  	
  By:

  	
   

  	
   

  
	
  Aggregate Purchase Price: 

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
  Address for Notices:

  

 

 

AGREED ON THIS [     ] day of
[       ], 200[  ]:

 

	
   

  	
  JOSTENS HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JOSTENS IH CORP.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DLJMB
  FUNDS:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DLJ Merchant Banking
  Partners III, L.P.  

  
	
   

  	
  By:

  	
  DLJ Merchant Banking III,
  Inc.

  
	
   

  	
   

  	
  Managing General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DLJ Merchant Banking III, Inc., as Advisory

  General Partner on behalf of DLJ Offshore Partners

  III-1, C.V. and as attorney-in-fact for DLJ Merchant

  Banking III, L.P., as Associate General Partner of

  DLJ Offshore Partners III-1, C.V.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  DLJ Merchant Banking III, Inc., as Advisory

  General Partner on behalf of DLJ Offshore Partners

  III-2, C.V. and as attorney-in-fact for DLJ Merchant

  Banking III, L.P., as Associate General Partner of

  DLJ Offshore Partners III-2, C.V.  

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DLJ Merchant Banking III, Inc., as Advisory

  General Partner on behalf of DLJ Offshore Partners

  III, C.V.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DLJ MB Partners III GmbH
  & Co. KG

  
	
   

  	
  By:

  	
  DLJ Merchant Banking III,
  L.P.

  
	
   

  	
   

  	
  Managing Limited Partner

  	
   

  
	
   

  	
  By:

  	
  DLJ Merchant Banking III,
  Inc.

  
	
   

  	
   

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Millennium Partners II,
  L.P.

  	
   

  
	
   

  	
  By:

  	
  DLJ Merchant Banking III,
  Inc.

  
	
   

  	
   

  	
  Managing General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
   

  	
  MBP III Plan Investors,
  L.P.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  DLJ LBO Plans Management Corporation

  
	
   

  	
   

  	
  Managing General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

Number of Shares Owned by DLJMB

 

	
   

  	
   

  	
   

  	
   

  	
  Class A

  	
   

  	
  Class B

  	
   

  
	
   

  	
   

  	
  % Total

  Owned

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DLJ Merchant
  Banking Partners III, L.P.

  	
   

  	
  79.22

  	
  %

  	
  396,110

  	
   

  	
  $

  	
  100.00

  	
   

  	
  $

  	
  39,611,000.00

  	
   

  	
  2,138,996

  	
   

  	
  $

  	
  100.00

  	
   

  	
  $

  	
  213,899,600.00

  	
   

  
	
  DLJ Offshore
  Partners III, C.V.

  	
   

  	
  5.45

  	
  %

  	
  27,267

  	
   

  	
  100.00

  	
   

  	
  2,726,700.00

  	
   

  	
  147,243

  	
   

  	
  100.00

  	
   

  	
  14,724,300.00

  	
   

  
	
  DLJ Offshore
  Partners III-1, C.V.

  	
   

  	
  1.40

  	
  %

  	
  6,998

  	
   

  	
  100.00

  	
   

  	
  699,800.00

  	
   

  	
  37,788

  	
   

  	
  100.00

  	
   

  	
  3,778,800.00

  	
   

  
	
  DLJ Offshore
  Partners III-2, C.V.

  	
   

  	
  1.00

  	
  %

  	
  4,985

  	
   

  	
  100.00

  	
   

  	
  498,500.00

  	
   

  	
  26,917

  	
   

  	
  100.00

  	
   

  	
  2,691,700.00

  	
   

  
	
  DLJ MB Partners
  III GmbH & Co. KG

  	
   

  	
  0.66

  	
  %

  	
  3,307

  	
   

  	
  100.00

  	
   

  	
  330,700.00

  	
   

  	
  17,859

  	
   

  	
  100.00

  	
   

  	
  1,785,900.00

  	
   

  
	
  Millenium
  Partners II, L.P.

  	
   

  	
  0.27

  	
  %

  	
  1,338

  	
   

  	
  100.00

  	
   

  	
  133,800.00

  	
   

  	
  7,223

  	
   

  	
  100.00

  	
   

  	
  722,300.00

  	
   

  
	
  MBP III Plan
  Investors, L.P.

  	
   

  	
  12.00

  	
  %

  	
  59,995

  	
   

  	
  100.00

  	
   

  	
  5,999,500.00

  	
   

  	
  323,974

  	
   

  	
  100.00

  	
   

  	
  32,397,400.00

  	
   

  
	
  Total

  	
   

  	
  100.00

  	
  %

  	
  500,000

  	
   

  	
   

  	
   

  	
  $

  	
  50,000,000.0

  	
   

  	
  2,700,000

  	
   

  	
   

  	
   

  	
  $

  	
  270,000,000.00

  	
   

  
	
  %
  Total  Value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11.90

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
  64.29

  	
  %

  
																				

 

	
   

  	
   

  	
  Preferred
  Stock

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  	
  Total
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DLJ Merchant
  Banking Partners III, L.P.

  	
   

  	
  79,222

  	
   

  	
  $

  	
  1,000.00

  	
   

  	
  $

  	
  79,222,000.00

  	
   

  	
  $

  	
  332,732,600.00

  	
   

  
	
  DLJ Offshore
  Partners III, C.V.

  	
   

  	
  5,453

  	
   

  	
  1,000.00

  	
   

  	
  5,453,000.00

  	
   

  	
  22,904,000.00

  	
   

  
	
  DLJ Offshore
  Partners III-1, C.V.

  	
   

  	
  1,400

  	
   

  	
  1,000.00

  	
   

  	
  1,400,000.00

  	
   

  	
  5,878,600.00

  	
   

  
	
  DLJ Offshore
  Partners III-2, C.V.

  	
   

  	
  997

  	
   

  	
  1,000.00

  	
   

  	
  997,000.00

  	
   

  	
  4,187,200.00

  	
   

  
	
  DLJ MB Partners
  III GmbH & Co. KG

  	
   

  	
  661

  	
   

  	
  1,000.00

  	
   

  	
  661,000.00

  	
   

  	
  2,777,600.00

  	
   

  
	
  Millenium
  Partners II, L.P.

  	
   

  	
  268

  	
   

  	
  1,000.00

  	
   

  	
  268,000.00

  	
   

  	
  1,124,100.00

  	
   

  
	
  MBP III Plan
  Investors, L.P.

  	
   

  	
  11,999

  	
   

  	
  1,000.00

  	
   

  	
  11,999,000.00

  	
   

  	
  50,395,900.00

  	
   

  
	
  Total

  	
   

  	
  100,000

  	
   

  	
   

  	
   

  	
  $

  	
  100,000,000.00

  	
   

  	
  $

  	
  420,000,000.00

  	
   

  
	
  %
  Total Value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  23.81

  	
  %

  	
  100.00

  	
  %

  
													

 

Number of
Shares Sold by Each DLJMB Fund

 

	
   

  	
   

  	
   

  	
   

  	
  Class A

  	
   

  	
  Class B

  	
   

  
	
   

  	
   

  	
  % Total

  Owned

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DLJ Merchant
  Banking Partners III, L.P.

  	
   

  	
  79.22

  	
  %

  	
  56,944

  	
   

  	
  $

  	
  100.62

  	
   

  	
  $

  	
  5,729,516.05

  	
   

  	
  307,493

  	
   

  	
  $

  	
  100.62

  	
   

  	
  $

  	
  30,938,923.85

  	
   

  
	
  DLJ Offshore
  Partners III, C.V.

  	
   

  	
  5.45

  	
  %

  	
  3,920

  	
   

  	
  100.62

  	
   

  	
  394,417.37

  	
   

  	
  21,167

  	
   

  	
  100.62

  	
   

  	
  2,129,753.20

  	
   

  
	
  DLJ Offshore
  Partners III-1, C.V.

  	
   

  	
  1.40

  	
  %

  	
  1,006

  	
   

  	
  100.62

  	
   

  	
  101,220.38

  	
   

  	
  5,432

  	
   

  	
  100.62

  	
   

  	
  546,549.79

  	
   

  
	
  DLJ Offshore
  Partners III-2, C.V.

  	
   

  	
  1.00

  	
  %

  	
  717

  	
   

  	
  100.62

  	
   

  	
  72,142.16

  	
   

  	
  3,870

  	
   

  	
  100.62

  	
   

  	
  389,386.54

  	
   

  
	
  DLJ MB Partners
  III GmbH & Co. KG

  	
   

  	
  0.66

  	
  %

  	
  475

  	
   

  	
  100.62

  	
   

  	
  47,792.92

  	
   

  	
  2,567

  	
   

  	
  100.62

  	
   

  	
  258,283.01

  	
   

  
	
  Millenium
  Partners II, L.P.

  	
   

  	
  0.27

  	
  %

  	
  192

  	
   

  	
  100.62

  	
   

  	
  19,318.40

  	
   

  	
  1,038

  	
   

  	
  100.62

  	
   

  	
  104,440.11

  	
   

  
	
  MBP III Plan
  Investors, L.P.

  	
   

  	
  12.00

  	
  %

  	
  8,625

  	
   

  	
  100.62

  	
   

  	
  867,818.84

  	
   

  	
  46,574

  	
   

  	
  100.62

  	
   

  	
  4,686,121.11

  	
   

  
	
  Total

  	
   

  	
  100.00

  	
  %

  	
  71,879

  	
   

  	
   

  	
   

  	
  $

  	
  7,232,226.12

  	
   

  	
  388,141

  	
   

  	
   

  	
   

  	
  $

  	
  39,053,457.62

  	
   

  
																				

 

	
   

  	
   

  	
  Preferred
  Stock

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  	
  Total
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DLJ Merchant
  Banking Partners III, L.P.

  	
   

  	
  11,366

  	
   

  	
  $

  	
  1,008.22

  	
   

  	
  $

  	
  11,459,455.36

  	
   

  	
  $

  	
  48,127,895.26

  	
   

  
	
  DLJ Offshore
  Partners III, C.V.

  	
   

  	
  782

  	
   

  	
  1,008.22

  	
   

  	
  788,429.89

  	
   

  	
  3,312,600.46

  	
   

  
	
  DLJ Offshore
  Partners III-1, C.V.

  	
   

  	
  201

  	
   

  	
  1,008.22

  	
   

  	
  202,652.69

  	
   

  	
  850,422.86

  	
   

  
	
  DLJ Offshore
  Partners III-2, C.V.

  	
   

  	
  143

  	
   

  	
  1,008.22

  	
   

  	
  144,175.80

  	
   

  	
  605,704.49

  	
   

  
	
  DLJ MB Partners
  III GmbH & Co. KG

  	
   

  	
  95

  	
   

  	
  1,008.22

  	
   

  	
  95,781.12

  	
   

  	
  401,857.06

  	
   

  
	
  Millenium
  Partners II, L.P.

  	
   

  	
  38

  	
   

  	
  1,008.22

  	
   

  	
  38,312.45

  	
   

  	
  162,070.96

  	
   

  
	
  MBP III Plan
  Investors, L.P.

  	
   

  	
  1,722

  	
   

  	
  1,008.22

  	
   

  	
  1,736,158.91

  	
   

  	
  7,290,098.86

  	
   

  
	
  Total

  	
   

  	
  14,347

  	
   

  	
   

  	
   

  	
  $

  	
  14,464,966.22

  	
   

  	
  $

  	
  60,750,649.96

  	
   

  
													

 

Number of
Shares Purchased by Each Syndicate Shareholder

 

	
   

  	
   

  	
   

  	
   

  	
  Class A

  	
   

  	
  Class B

  	
   

  
	
   

  	
   

  	
  Syndication

  Date

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NIB Capital
  Private Equity Co-Investments 2000 CV

  	
   

  	
  9/4/03

  	
   

  	
  21,276

  	
   

  	
  $

  	
  100.62

  	
   

  	
  $

  	
  2,140,720.20

  	
   

  	
  114,890

  	
   

  	
  $

  	
  100.62

  	
   

  	
  $

  	
  11,559,848.83

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NIB Capital
  Private Equity Later Stage Co-Investments II CV

  	
   

  	
  9/4/03

  	
   

  	
  2,388

  	
   

  	
  100.62

  	
   

  	
  240,272.60

  	
   

  	
  12,893

  	
   

  	
  100.62

  	
   

  	
  1,297,250.68

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Northwestern

  	
   

  	
  9/4/03

  	
   

  	
  23,664

  	
   

  	
  100.62

  	
   

  	
  2,380,992.80

  	
   

  	
  127,783

  	
   

  	
  100.62

  	
   

  	
  12,857,099.52

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New York Life
  Capital Partners, LP

  	
   

  	
  9/4/03

  	
   

  	
  23,664

  	
   

  	
  100.62

  	
   

  	
  2,380,992.80

  	
   

  	
  127,783

  	
   

  	
  100.62

  	
   

  	
  12,857,099.52

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Omni

  	
   

  	
  9/5/03

  	
   

  	
  44

  	
   

  	
  100.63

  	
   

  	
  4,427.87

  	
   

  	
  240

  	
   

  	
  100.63

  	
   

  	
  24,152.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C-Squared CDO
  Ltd.

  	
   

  	
  9/4/03

  	
   

  	
  843

  	
   

  	
  100.62

  	
   

  	
  84,819.85

  	
   

  	
  4,552

  	
   

  	
  100.62

  	
   

  	
  458,007.07

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  71,879

  	
   

  	
   

  	
   

  	
  $

  	
  7,232,226.12

  	
   

  	
  388,141

  	
   

  	
   

  	
   

  	
  $

  	
  39,053,457.62

  	
   

  
	
  %
  Total  Value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  11.90

  	
  %

  	
   

  	
   

  	
   

  	
   

  	
  64.28

  	
  %

  
																				

 

	
   

  	
   

  	
  Preferred
  Stock

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Shares

  	
   

  	
  Price

  per Share

  	
   

  	
  Value

  	
   

  	
  Total
  Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NIB Capital
  Private Equity Co-Investments 2000 CV

  	
   

  	
  4,247

  	
   

  	
  $

  	
  1,008.22

  	
   

  	
  $

  	
  4,281,919.78

  	
   

  	
  $

  	
  17,982,488.81

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NIB Capital
  Private Equity Later Stage Co-Investments II CV

  	
   

  	
  477

  	
   

  	
  1,008.22

  	
   

  	
  480,922.00

  	
   

  	
  2,018,445.28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Northwestern

  	
   

  	
  4,723

  	
   

  	
  1,008.22

  	
   

  	
  4,761,833.56

  	
   

  	
  19,999,925.87

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New York Life
  Capital Partners, LP

  	
   

  	
  4,723

  	
   

  	
  1,008.22

  	
   

  	
  4,761,833.56

  	
   

  	
  19,999,925.87

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Omni

  	
   

  	
  9

  	
   

  	
  1,008.44

  	
   

  	
  9,076.00

  	
   

  	
  37,655.87

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C-Squared CDO
  Ltd.

  	
   

  	
  168

  	
   

  	
  1,008.22

  	
   

  	
  169,381.33

  	
   

  	
  712,208.25

  	
   

  
	
  Total

  	
   

  	
  14,347

  	
   

  	
   

  	
   

  	
  $

  	
  14,464,966.22

  	
   

  	
  $

  	
  60,750,649.96

  	
   

  
	
  %
  Total  Value

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  23.81

  	
  %

  	
  100.00

  	
  %

  
																

 

	
  Class A Value

  	
   

  	
  Class B
  Value

  	
   

  	
  Preferred
  Value

  	
   

  	
  Total
  Value

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  $

  	
  2,140,716.43

  	
   

  	
  $

  	
  11,559,868.70

  	
   

  	
  $

  	
  4,281,432.85

  	
   

  	
  $

  	
  17,982,017.98

  	
   

  	
  89.91

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  240,235.95

  	
   

  	
  1,297,274.16

  	
   

  	
  480,471.91

  	
   

  	
  $

  	
  2,017,982.02

  	
   

  	
  10.09

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  2,380,952.38

  	
   

  	
  12,857,142.86

  	
   

  	
  4,761,904.76

  	
   

  	
  20,000,000.00

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  2,380,952.38

  	
   

  	
  12,857,142.86

  	
   

  	
  4,761,904.76

  	
   

  	
  20,000,000.00

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  4,464.29

  	
   

  	
  24,107.14

  	
   

  	
  8,928.57

  	
   

  	
  37,500.00

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  84,821.43

  	
   

  	
  458,035.71

  	
   

  	
  169,642.86

  	
   

  	
  712,500.00

  	
   

  	
   

  	
   

  	 

	
  $

  	
  7,232,142.86

  	
   

  	
  $

  	
  39,053,571.43

  	
   

  	
  $

  	
  14,464,285.71

  	
   

  	
  $

  	
  60,750,000.00

  	
   

  	
   

  	
   

  
	
  11.90%

  	
   

  	
  64.29

  	
  %

  	
  23.81

  	
  %

  	
  100.00

  	
  %

  	
   

  	
   

  
																

 

	
  Purchase

  Date

  	
   

  	
  Days

  Elapsed

  	
   

  	
  Prime

  + 2%

  	
   

  	
  Preferred

  	
   

  	
  Interest

  Common

  	
   

  	
  Interest

  Preferred

  	
   

  	
  Common

  	
   

  	
  Preferred

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7/29/03

  	
   

  	
  37

  	
   

  	
  6.00

  	
  %

  	
  8.00

  	
  %

  	
  0.62

  	
   

  	
  8.22

  	
   

  	
  100.62

  	
   

  	
  1,008.22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7/29/03

  	
   

  	
  37

  	
   

  	
  6.00

  	
  %

  	
  8.00

  	
  %

  	
  0.62

  	
   

  	
  8.22

  	
   

  	
  100.62

  	
   

  	
  1,008.22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7/29/03

  	
   

  	
  37

  	
   

  	
  6.00

  	
  %

  	
  8.00

  	
  %

  	
  0.62

  	
   

  	
  8.22

  	
   

  	
  100.62

  	
   

  	
  1,008.22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7/29/03

  	
   

  	
  37

  	
   

  	
  6.00

  	
  %

  	
  8.00

  	
  %

  	
  0.62

  	
   

  	
  8.22

  	
   

  	
  100.62

  	
   

  	
  1,008.22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7/29/03

  	
   

  	
  38

  	
   

  	
  6.00

  	
  %

  	
  8.00

  	
  %

  	
  0.63

  	
   

  	
  8.44

  	
   

  	
  100.63

  	
   

  	
  1,008.44

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7/29/03

  	
   

  	
  37

  	
   

  	
  6.00

  	
  %

  	
  8.00

  	
  %

  	
  0.62

  	
   

  	
  8.22

  	
   

  	
  100.62

  	
   

  	
  1,008.22Exhibit 10.36

 

*** indicates a
portion of this exhibit that has been omitted based on a request for
confidential treatment submitted to the Securities And Exchange
Commission.  The omitted portion has
been filed separately with the Commission.

 

AGREEMENT

 

This AGREEMENT (this “Agreement”), dated as of July 1, 2003, is entered
into by and between Alcide Corporation, a Delaware corporation (“Alcide”), and
Ferdinand Eimermacher GmbH whose offices are located at Norwalde, Germany
(Eimermacher).

 

RECITALS

 

A.                                   Alcide
has certain valuable patent rights, trademark rights, technical data and
information relating to products intended for use in the prevention of mastitis
in dairy cattle.

 

B.                                     Eimermacher
has experience in manufacturing and selling products to the dairy industry and
desires a license to Alcide’s products, upon the terms set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, the parties agree as follows:

 

1.                                      DEFINITIONS

 

As used herein:

 

1.1                                 “Contract
Term” shall be a ten (10) year period starting ninety (90) to one hundred
twenty (120) days after this Agreement is signed by both parties dependent on
when Eimermacher completes the first qualified product batch.

 

1.2                                 “Product”
shall refer to Alcide® external udder care products, listed on Exhibit A,
including, without limitation, UDDERgold® Platinum Germicidal Barrier Teat Dip,
4XLA® Pre- and Post-Milking Teat Dip, DIPPINGOLD® Pre- and Post- Milking Teat
Dip Product and shall include any refinements or improvements to the existing
udder care product line.

 

1.3                                 “Territory”
shall be defined as Austria, Germany, Poland and Switzerland.  Additional countries can be added to this
agreement in the future by mutual agreement of both parties.

 

1.4                                 “Affiliate”
shall mean any company or other business entity controlled by, controlling or
under common control with a party, control being presumed if there is direct or
indirect ownership of at least fifty percent (50%) (or, if less, the maximum

 

 

permitted by
applicable law) of the voting stock, equity or income interest in the other
corporation or business entity.

 

1.5                                 “Patent
Rights” shall mean the rights of Alcide in any patent applications filed on the
technology within the Territory, including, without limitation, all the U.S.
and International patents of Alcide set forth in Exhibit A together with any
divisions, continuations, continuations-in-part, and any patents or reissued
patents therein.

 

1.6                                 “Trademark
Rights” shall mean all the Alcide trademarks registered or otherwise in
Germany.

 

1.7                                 “Technical
Information” shall mean all trade secrets, technical reports, information and
data provided by Alcide, including, without limitation, formulations, test
results and know-how for manufacturing.

 

1.8                                 “Private
Label” shall mean any label for the Products that incorporates trademarks,
logos, symbols or trade dress other than the trademarks, logos, symbols and
trade dress owned by Alcide and used to identify Products.”

 

2.A                             GRANT
OF RIGHTS

 

2.A.1                    Subject
to the terms of this Agreement, Alcide hereby grants to Eimermacher a non-exclusive
license under the Patent Rights and Technical Information to make, have made,
use, sell and import the Product in the Territory for the Contract Term.  Eimermacher shall not use the Patent Rights,
Trademark Rights or Technical Information for any other purpose.  Eimermacher shall not manufacture the
Product for a third party unless approved in writing by Alcide.  Eimermacher shall have no right to make
improvements or continuations or continuations-in-part.

 

2.A.2                    Eimermacher
may not sublicense its rights granted pursuant to Paragraph 2.A.1 without prior
written permission from Alcide in its sole discretion; provided, however, that
Eimermacher may sublicense its rights with respect to selling the Product in
the Territory as provided in Paragraph 2.A.4.

 

2.A.3                    Eimermacher
shall have a non-exclusive license under the Trademark Rights to use the
Trademark Rights for the purposes of manufacturing, packaging, marketing and
distributing the Product.  Eimermacher
shall not register or use any mark that is confusingly similar to the marks
listed on Exhibit D (the “Marks”). 
Eimermacher shall not challenge or attempt to prevent the use or
registration of Alcide’s Marks. 
Eimermacher shall use the Marks only in the exact form provided to it by
Alcide.  In any of Eimermacher’s
activities relating to the labeling, promotion and

 

2

 

sale of the
Product, the Alcide Marks shall always be prominently displayed in order to
protect Alcide’s rights and goodwill in the same.  Whenever Alcide’s Marks are used in advertising and promotional
programs, Alcide retains the right to review and approve the same.  All goodwill in and to the Marks shall inure
to the benefit of Alcide.  Eimermacher
shall include the statement “[Product Name] and Alcide are registered
trademarks of Alcide Corporation” on all promotional materials and all
packaging.

 

2.A.4                    Eimermacher
may appoint agents, dealers or sales representatives to act on Eimermacher’s
behalf for sales of the Product in the Territory, provided that any
compensation, benefits and taxes related to such agents, dealers or
representatives shall be solely Eimermacher’s responsibility, and Eimermacher
shall remain responsible for any agents’, dealer’s or sales representative’s
performance and adherence to the terms of this Agreement.

 

2.A.5                    Eimermacher
covenants that it will maintain this Agreement for the ten (10) year Contract
Term and will not manufacture or market an acidified sodium chlorite teat dip
product other than the Product during the Contract Term.  Eimermacher also covenants that it will
advise Alcide one year in advance of the set termination date of this Agreement
of its intention to market an acidified sodium chlorite teat dip product.

 

2.A.6                    Subject
to the terms and conditions of this Agreement, Eimermacher is authorized to
sell the Product in such manner, at such prices and upon such terms as
Eimermacher shall determine. 
Eimermacher is an independent contractor, not an agent or employee of
Alcide.

 

2.A.7                    Labeling
of the Product shall be mutually determined in advance by Alcide and
Eimermacher.  Any changes to Product
labels shall be mutually agreed upon by Alcide and Eimermacher in advance.

 

Any approvals required under this Agreement shall not be unreasonably
withheld by either Alcide or Eimermacher.

 

2.A.8                    All
trade names, trademarks and product names under which the Product is sold
except the Private Label shall be the property of Alcide.  Alcide shall maintain the patents and
trademarks under which the product is manufactured and sold for the term of
this Agreement and shall pay any maintenance fees.

 

2.A.9                    As
part of the transfer of Technical Information, Alcide will provide one visit
within the first twelve (12) months of the contract at Alcide’s expense to the

 

3

 

manufacturing
site.  Any travel expenses for further
visits requested by Eimermacher will be at Eimermacher’s expense.

 

2.A.10              Alcide
reserves the right to review raw material specifications and batch records on
the first six (6) batches of Product produced under this Agreement during
initial start up at each new manufacturing site and an annual basis from then
on for the Contract Term.  Alcide
further reserves the right to run quality tests in a laboratory of its choosing
on the first six (6) batches of finished Product produced under this Agreement
during initial start up at each new manufacturing site and on an annual basis
from then on for the Contract Term to verify the Product meets Alcide’s
specifications.  Any batch produced by
Eimermacher that does not meet Alcide’s specifications as dictated in the
Technical Information will be disposed of at Eimermacher’s expense and shall
not be sold or otherwise distributed. 
However, Eimermacher reserves the right to run checking over quality
tests in a laboratory of its choosing on any such batch.  In case of the contrary result to the
statement of the laboratory chosen by Alcide and Eimermacher shall reach an
amicable settlement.

 

2.A.11              It
is Eimermacher’s responsibility to adhere to relevant local regulations
regarding GMPs, product quality and reporting requirements.

 

2.B                             Sales
under Private Label

 

2.B.1                      The
provisions set forth in this Section 2B shall apply to the distribution of
Products under one or more Private Labels. 
All other provisions of the Agreement shall apply equally whether the
Products are sold under a Private Label or a proprietary label of Supplier.

 

2.B.2                      Eimermacher
is authorized to sell Products under the terms of this Agreement under one or more
Private Labels.  Alcide will have the
right to review and approve all Private Labels prior to their use in connection
with the sale of Product.

 

2.B.3                      During
and after the term of this Agreement, Eimermacher shall not sell any product
under the Private Label other than the Product for which Alcide approved the
Private Label’s use under Section 2.B.2. 
Upon termination of this Agreement, Eimermacher shall destroy all unused
Private Labels.

 

2.B.4                      All
registrations under which the Products are sold using a Private Label shall be
the property of Alcide.  In the event
any registrations (e.g., Product registrations) are taken or issued in the name
of Eimermacher, Eimermacher shall, upon request, but in any event no later than
upon termination of this Agreement, transfer such registrations to Alcide or
Alcide’s designee and provide any documents and assistance reasonably required
in connection therewith.

 

4

 

2.B.5                      Eimermacher
shall defend, hold harmless and indemnify Alcide, its affiliates, employees,
officers and agents from and against any and all claims, actions, liabilities,
losses, fines, costs and expenses (including reasonable attorneys’ fees)
arising out of or relating to:

 

(a)                                  any
actual or alleged infringement of any rights of any third parties by any
Private Label; or

 

(b)                                 any
failure to provide adequate warnings, labeling or instructions in connection
with the sale of a Product under a Private Label.

 

3.                                      LICENSING
FEES - TERMS AND CONDITIONS

 

3.1                                 In
consideration of the license granted herein, Eimermacher shall pay Alcide a
licensing fee (collectively, “Licensing Fees”) for each liter sold by
Eimermacher as set forth in Exhibit B. 
Fees for additional products sold under this Agreement will be set at the
time the new Product’s formulation is provided to Eimermacher.  All Licensing Fees shall be subject to the
terms and conditions set forth in this Paragraph 3 and in the attached Exhibit
B.  No additional or different terms set
forth in Eimermacher’s or Alcide’s purchase order, acknowledgment or other
forms or correspondence (other than an amendment to this Agreement pursuant to
Paragraph 10.2 hereof) shall govern any activities related to sales of the
Product by Eimermacher.

 

3.2                                 Licensing
Fees shown in Exhibit B may be reviewed annually on a mutually agreed basis by
Alcide and Eimermacher.

 

3.3                                 Licensing
Fees shall be paid to Alcide in Euros [***]. 
On the tenth (10th) day of the month following the month of
sale Eimermacher shall account for the sales of this calendar month in writing
to Alcide.  All Licensing Fees not
received by Alcide by the due date as stated before will incur interest at the
rate of two percent (2%) above the discount rate of the European Federal
Reserve Bank.

 

3.4                                 Eimermacher
shall keep, or cause to be kept, accurate books and records in sufficient
detail to verify the calculation of license fees and the reports given
hereunder and shall retain such books and records at its principal place of
business for at least five (5) years after the end of the fiscal year to which
they pertain.  Alcide shall have the
right, at its expense and not more frequently than once per calendar year, to
have designated certified public accountants (who shall be bound to
confidentiality) examine, during normal business hours, the books and records
of Eimermacher and its Affiliates relating to the calculation of license fees
and reports and given hereunder for any period during which Eimermacher is to
keep the books

 

5

 

and records.  If any audit reveals underpayment greater
than five percent (5%), Eimermacher shall pay the underpayment plus interest in
the rate as specified in [Paragraph] 3.3, from the date accrued to the date
of payment, and shall reimburse Alcide for costs of the audit.  Further, Alcide shall be permitted to do
another audit within the next twelve (12) month period.

 

3.5                                 Alcide
and Eimermacher have agreed to minimum annual commitment amounts of liters sold
by Eimermacher (as set forth in Exhibit C attached) during the first five years
of the Contract Term.  These commitments
will be reviewed annually at least sixty (60) days prior to the anniversary
date of the Agreement and can be amended by mutual agreement of Alcide and
Eimermacher.  Notwithstanding the
foregoing, with respect to any new Products or improvement or refinements
provided to Eimermacher after commencement of the Contract Term, Alcide and
Eimermacher shall mutually agree to the Licensing Fees and annual minimum
commitments for such products at the time such products, improvements or
refinements are initially provided to Eimermacher.  Thereafter, the commitments shall be reviewed annually at the
time frame set forth in the second sentence of this Paragraph 3.5.  Sixty (60) days prior to the five (5) year
anniversary date minimum annual commitment amounts will be mutually agreed to
by both parties for years six (6) through ten (10) of the Agreement.

 

In the event that Eimermacher does not sell the yearly commitment,
Alcide shall have the right to terminate the contract with six (6) months
notice, and/or add additional distributors in the Territory.

 

3.6                                 Alcide
warrants that Alcide is authorized to enter into this Agreement and to grant to
Eimermacher the rights provided for in Paragraph 2.1.  Alcide also warrants that patents and trademarks relating to the
Product are owned by Alcide and that the Product is the result of original
research of Alcide.  Alcide declares
that Alcide is not aware of any legal deficiencies of the patent rights,
trademark rights and technical information.

 

3.7                                 Eimermacher
warrants that all advertising and promotional materials developed by
Eimermacher shall be in accordance with descriptions of Product provided by
Alcide and, to the best of Eimermacher’s knowledge, shall be accurate in all
material respects.  Eimermacher warrants
that Eimermacher is authorized to enter into this Agreement and the same does
not and shall not infringe upon any other agreements it may have.

 

3.8                                 Eimermacher
shall indemnify, defend and hold harmless Alcide, its officers, directors,
employees, agents, consultants and contractors (the “Indemnified

 

6

 

Parties”)
successors and assigns from and against any claim, action (including regulatory
action by relevant authorities), liability, damage, loss, cost or expense
(including, without limitation, reasonable attorneys’ fees) (collectively,
“Losses”) arising from or related to the exercise of the license granted
herein, including the testing, manufacturing and/or sale of Product, by
Eimermacher and its Affiliates or the breach of any obligation of Eimermacher
under this Agreement.  Alcide shall
promptly notify Eimermacher of any such claim or action, allow Eimermacher to
control the defense of such claim or action and render all reasonable
assistance to Eimermacher in connection with defending such claim or action;
provided, however, that Eimermacher shall not enter into any settlement
agreement that requires an admission of wrong doing or fault by Alcide without
Alcide’s prior written consent. 
Notwithstanding the foregoing, Alcide shall have the right to
participate with its own counsel, at its expense.

 

Provided that the Product has been manufactured, tested and distributed
by Eimermacher and its Affiliates in accordance with this Agreement, Alcide
shall indemnify and hold harmless Eimermacher and Eimermacher’s officers,
directors, employees, agents, dealers and sales representatives against any
claims by third parties which may arise due to Product defects or defects in
manufacturing instructions as provided by Alcide or which may arise due to any
other breach by Alcide of its warranties set forth in Paragraph 3.6
hereof.  Eimermacher shall give prompt notice
of any claim, threatened claim or litigation, which in any way relates to the
exercise of the license granted under this Agreement.

 

3.9                                 Eimermacher
shall secure and maintain product liability insurance in the amount of two
million six hundred thousand (2.600.000) Euro per Product with a ten million
(10.000.000) Euro umbrella with respect to the Product.  Upon request, Eimermacher shall provide
Alcide with evidence of such insurance coverage.  Eimermacher will issue Alcide a Certificate of Insurance listing
Alcide as an additional insured on Eimermacher’s liability insurance policy and
such Certificate of Insurance shall be in force during the entire Contract
Term.

 

3.10                           EXCEPT
FOR THE WARRANTIES SET FORTH IN PARAGRAPHS 3.6 and 3.8, ALCIDE MAKES NO OTHER
REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE PATENT RIGHTS, TRADEMARK
RIGHTS AND TECHNICAL INFORMATION AND EXPRESSLY DISCLAIMS ANY OTHER WARRANTIES,
EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, PATENTABILITY AND NONINFRINGEMENT
OF INTELLECTUAL PROPERTY RIGHTS OF OTHER PARTIES.

 

7

 

3.11                           Eimermacher
is solely liable for implementing and solely responsible for all costs
associated with any recall from the field of Product produced under this
Agreement, provided that Alcide bares no fault in the reason for the recall.

 

3.12                           Except
for Alcide’s obligations for the maintenance of patents and trademarks as
provided for in Paragraph 2.8, Eimermacher shall secure and maintain, in the
name of Alcide, any and all registrations, permits, licenses, approvals, and
other governmental actions required to manufacture, import, handle, market,
sell, demonstrate, use and distribute the Product in the Territory, provide to
Alcide quarterly progress reports on any such action, and provide to Alcide
copies of all registrations, permits, licenses, approvals, certificates,
correspondence and other documentation related to any such action.  Upon termination of this Agreement,
Eimermacher shall transfer to Alcide any and all such licenses, permits and
registrations within thirty (30) days of contract termination.

 

3.13                           Eimermacher
shall keep a log of and customer complaints regarding the Product and shall
promptly notify Alcide in writing of each complaint that Eimermacher may
receive or become aware of concerning the Product.

 

4.                                      PROMOTIONAL
ACTIVITIES

 

4.1                                 Alcide
shall regularly advise Eimermacher of any information concerning Product
availability and formulation.

 

4.2                                 Eimermacher
shall undertake such advertising and promotional activity relating to Product
as is deemed appropriate by Eimermacher and Alcide to actively promote sales.

 

4.3                                 Eimermacher’s
marketing plan for the following year shall be provided to Alcide annually
sixty (60) days prior to the anniversary date of this Agreement.  Alcide shall have the right to comment on
and approve Eimermacher’s marketing plan. 
A list of major meetings, annual shows, seminars and training programs
at which Alcide’s participation is desired shall be submitted ninety (90) days
in advance of the anniversary date by Eimermacher.

 

4.4                                 A
tabulation of Eimermacher sales by Product and Eimermacher Sales Regions shall
be provided by Eimermacher to Alcide within thirty (30) days of the end of each
fiscal year.

 

8

 

5.                                      TERM
AND TERMINATION

 

5.1                                 One
hundred and eighty (180) days prior to expiration of this Agreement,
Eimermacher and Alcide shall meet to determine their intentions regarding a new
or extended agreement.

 

5.2                                 Either
Party may terminate this Agreement effective immediately upon notice to the
other, in the event that the party to which such notice is sent becomes the
subject of any bankruptcy or insolvency proceedings.  Alcide may also terminate this Agreement with sixty (60) days
notice as defined in Paragraph 10.3 in the event Eimermacher is delinquent
in payment of invoices, as defined by Paragraph 3.3, by more than thirty
(30) days in spite of a reminder by Alcide or if Alcide repeatedly must require
the destruction of batches of the Product pursuant to Paragraph 2.10.

 

5.3                                 Either
Party may terminate this Agreement in the event there is a material breach of
the contract by the other party and such breach is not cured within sixty (60)
days of the date of the notice of breach.

 

5.4                                 Eimermacher
shall have a period of six (6) months following termination of this Agreement
to sell or dispose of any inventory of Product (other than that which is
required to be destroyed pursuant to Paragraph 2.10) remaining at the date
of termination; provided, however, that, Licensing Fees shall continue to be
due in accordance with Paragraph 3.

 

5.5                                 Upon
termination of this Agreement, Eimermacher shall (a) cause all materials
containing any Technical Information to be promptly returned to Alcide,
(b) at Alcide’s election, assign to Alcide rights in any regulatory
applications or approvals (e.g., investigational new drug applications) (to the
extent assignable) requested by Alcide and (c) during the nine
(9) months following termination, discuss with Alcide information and data
that exists with respect to Product and provide to Alcide such relevant
information and data requested by Alcide, provided however that all costs for
Eimermacher’s actions as set forth in sub-paragraphs (b) and (c) shall be borne
by Alcide.

 

The rights and obligations of Paragraphs 2.8, 3.3, 3.4, 3.6, 3.8, 3.9,
3.11, 3.13, 5.4, 5.5, 6, 7, 9 and 10 and any accrued obligations shall survive
termination or expiration of this Agreement. 
All other rights and obligations shall not survive termination or
expiration.

 

9

 

6.                                      ALCIDE
PATENTS, TRADEMARKS AND TECHNICAL INFORMATION

 

Each party shall promptly notify the other party in writing of any
alleged or threatened infringement of a patent or trademark included in the
Patent/Trademark Rights.  Alcide will
have the sole right and discretion to bring and maintain actions against any
infringer in, to or under the Patent Rights, Trademark Rights or Technical
Information in the Field and Territory that is or could be adversely impacting
its rights hereunder.  Eimermacher
agrees, without charge, to render such reasonable assistance, execute any
documents and do such other acts as may be reasonably necessary in such legal
action as Alcide may reasonably request.

 

7.                                      CONFIDENTIAL
INFORMATION

 

7.1                                 “Confidential
Information” means confidential information of a party, and marked confidential
if disclosed in writing or if orally disclosed, identified as confidential
information at the time of disclosure and confirmed in writing within ten (10)
days after disclosure, and shall include without limitation the Patents,
Technical Information and licensing fees as presented in Exhibit B.  Alcide and Eimermacher agree, with respect
to any confidential information received from the other and identified as
Confidential Information, that:

 

(a)                                  The
receiving party shall prevent disclosure in any manner of the Confidential
Information to any third party without prior written consent of the disclosing
party, and the degree of care taken by the receiving party shall be at least as
great as the degree of care which the receiving party takes in protecting its
own Confidential Information of like kind and importance, but in no event less
than a reasonable degree of care; and

 

(b)                                 The
receiving party shall not use Confidential Information disclosed by the other
party for any commercial purpose other than pursuant to this Agreement without
the prior written consent of the disclosing party; and

 

(c)                                  The
receiving party shall only disclose the Confidential Information to those of
its employees who have a need to know in order to perform their job
responsibilities.

 

7.2                                 Neither
party shall have any obligation with respect to any information disclosed by
the other party:

 

(a)                                  which
is already in the possession of the receiving party at the time of its receipt
from the disclosing party;

 

10

 

(b)                                 which
the receiving party lawfully receives from another person whose disclosure
thereof to the receiving party does not violate any rights of the disclosing
party;

 

(c)                                  which
is or becomes published or otherwise publicly available through no act or
omission of the receiving party.

 

7.3                                 Neither
party shall have any obligation to keep Confidential Information confidential
if requested by a governmental or court order and the disclosing party is given
a reasonable opportunity to prevent such disclosure or obtain a protective
order.

 

7.4                                 Upon
termination of this Agreement, as provided for in Section 5, Eimermacher and
Alcide shall each, upon the written request of the other, return or destroy all
materials, copies thereof and extracts there from which include any information
designated as confidential by the other pursuant to Paragraph 7.1.  Each may, however, retain for legal archival
purposes only, one (1) copy of all such material.

 

7.5                                 The
provisions of this Paragraph 7 shall survive termination of this Agreement
indefinitely.

 

8.                                      MOST
FAVORED LICENSEE

 

Alcide shall be obliged to grant Eimermacher the same favorable terms
as licensor grants to other of its licensees after the signature date of this
Agreement, provided, that the rights and obligations of such licensees under
their respective license agreements are substantially comparable to the rights
and obligations of Eimermacher under this Agreement.

 

9.                                      LIMITATION
OF LIABILITY

 

IN NO EVENT SHALL ALCIDE’S LIABILITY UNDER THIS AGREEMENT EXCEED THE
AMOUNTS PAID BY EIMERMACHER AS LICENSING FEES UNDER THIS AGREEMENT.  EXCEPT FOR EIMERMACHER’S INDEMNIFICATION
OBLIGATIONS UNDER THIS AGREEMENT, NEITHER PARTY SHALL BE LIABLE FOR ANY
INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING
WITHOUT LIMITATION REASONABLE ATTORNEYS’ FEES), EVEN IF THE PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

11

 

10.                               MISCELLANEOUS

 

10.1                           Eimermacher
may not assign or delegate in whole or in part this Agreement or any right or
obligation arising hereunder without the prior written consent of Alcide,
subject to Paragraph 2.4.  Any
assignment or delegation that is not exempted and that is attempted without
such consent shall be of no force or effect. 
This Agreement shall be binding on and inure to the benefit of the
successors and permitted assigns of the parties.

 

10.2                           This
Agreement constitutes the entire understanding between the parties hereto with
respect to the subject matter hereof and supersedes and cancels all prior
understandings, promises and agreements. 
No modification or amendment hereof shall be valid or binding on the
parties unless made in writing and duly executed by the parties.

 

10.3                           Any
notice or any other communication required or permitted to be given to a party
pursuant hereto shall be sufficiently given if delivered personally or by
facsimile or express courier service (expenses prepaid) to the address set
forth below:

 

	
  Alcide:

  	
  Alcide Corporation

  8561 154th Avenue N.E.

  Redmond, WA  98052

  Attn:  President

  FAX:  (425) 861-0173

  
	
   

  
	
  Ferdinand Eimermacher GmbH.

  
	
   

  	
  Westring 24, D-48356 Nordwalde

  Attn:  President

  FAX:  49 25 73/20 53

  

 

or to such other
address as the party shall designate by written notice given to the other
party.  All notices, information,
reports and other communications in connection with this Agreement shall be in
English.

 

10.4                           If
any provision of this Agreement shall be held to any extent invalid or
unenforceable, such provision shall be deemed amended to conform to applicable
laws and to accomplish the intentions of the parties.  The headings in this Agreement are for convenience only and shall
not be used in the interpretation of this Agreement.

 

10.5                           No
waivers of any right under this Agreement shall be deemed effective unless
contained in a writing signed by the party charged with such waiver, and no

 

12

 

waiver of any
right arising from any breach or failure to perform shall be deemed to be a
waiver of any future right or of any other right arising under this Agreement.

 

10.6                           This
Agreement may be executed in one (1) or more counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.  This Agreement may be
executed by facsimile, which shall be deemed an original.

 

10.7                           This
Agreement has been submitted to the scrutiny of both parties and their counsel
and shall be given a fair and reasonable interpretation in accordance with the
words hereof, without consideration or weight being given to its being drafted
by or for one of the parties.

 

10.8                           In
the performance of this Agreement, each party shall comply with all laws,
regulations, rules, orders and other requirements, now or hereafter in effect,
of governmental authorities having jurisdiction.

 

10.9                           The
parties are and shall be independent contractors.  The relationship between the parties created by this Agreement
shall not constitute a partnership, joint venture, employment or agency.  Neither party shall have the authority to
make any statements, representations or commitments of any kind, or to take any
action, that shall be binding on the other party.

 

10.10                     Any
dispute, controversy or difference arising out of or with respect to this
Agreement or the breach of this Agreement, other than applications for
injunctive relief, shall be resolved by binding arbitration.  The arbitration shall be held in London, UK
and conducted in English in accordance with the rules of the International
chamber of Commerce before one arbitrator. 
The arbitrator shall apply the substantive law of the UK and shall not
be bound by the rules of evidence.  Full
judicial review shall be available to either party as to matters of law, but
not matters of fact, and to such matters as to which arbitration awards are
otherwise subject to judicial review under English law.  Judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction.  The prevailing party, as determined by the
arbitrator, shall be entitled to be fully reimbursed by the other party for all
costs in connection with the arbitration, including reasonable attorney fees.

 

13

 

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

 

	
   

  	
  ALCIDE
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Corporate
  President

  
	
   

  	
   

  
	
   

  	
  Ferdinand
  Eimermacher GmbH.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

14

 

EXHIBIT A

 

PATENT RIGHTS

 

Issued Patents

 

	
  Territory

  	
   

  	
  No.

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United States

  	
   

  	
  Re. 36,064

  	
   

  	
  Disinfection Method and Composition Therefore

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United States

  	
   

  	
  4,891,216

  	
   

  	
  Disinfecting Compositions and Methods Therefore

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  United States

  	
   

  	
  4,986,990

  	
   

  	
  Disinfecting Method and Composition Therefore

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  EP 176558

  	
   

  	
  Disinfecting Method and Composition Therefore

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  EP 287074

  	
   

  	
  Disinfecting Composition

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Germany

  	
   

  	
  EP 565134

  	
   

  	
  Disinfecting Method and Composition Therefore

  	
   

  

 

(Listing
of relevant Patents)

 

 

EXHIBIT B

 

LICENSING
FEES

 

(Based
an volume sold)

 

Licensing fees will be based on the following percentage of the
Eimermacher dealer price list with a floor price as listed:

 

	
   

  	
   

  	
  Per Liter
  sold

  	
   

  	
  Floor
  Price per liter*

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  UDDERgold
  Platinum

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4XLA

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DIPPINgold

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Private
  Label/eimügold

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

[***]

 

[***]

 

Licensing fees are confidential per section 7 of the Agreement.

 

 

EXHIBIT C

 

ANNUAL
COMMITMENTS

 

	
  Year 1

  	
   

  	
  [***]

  	
   

  
	
  Year 2

  	
   

  	
  [***]

  	
   

  
	
  Year 3

  	
   

  	
  [***]

  	
   

  
	
  Year 4

  	
   

  	
  [***]

  	
   

  
	
  Year 5

  	
   

  	
  [***]

  	
   

  

 

[***]

 

•                                          Annual
commitments for years 6 through 10 will set by mutual agreement 90 days prior
to the end of year 5.

 

 

EXHIBIT
D

 

ALCIDE
MARKS

 

UDDERgold®

 

UDDERgold®
Platinum

 

DIPPINGOLD®

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