Document:

Exhibit 10.32

 

FORM OF SALE PARTICIPATION AGREEMENT

 

                , 200   

 

	
  To:

  	
   

  	
  The Person whose name is

  
	
   

  	
   

  	
  set forth on the signature page hereof

  

 

 

Dear Sir or
Madam:

 

You have
entered into a Management Stockholder’s Agreement, dated as of the date hereof,
between Visant Holding Corp. (formally known as Jostens Holding Corp.), a
Delaware corporation (the “Company”), and you (the “Stockholder’s
Agreement”) relating to (i) the granting to you by the Company of an Option
(as defined in the Stockholder’s Agreement) to purchase shares of Class A
common stock, par value $0.01 per share, of the Company (the “Class A Common
Stock”) and (ii) the purchase by you of the Purchased Stock (as defined in
the Stockholder’s Agreement).  The
undersigned, Fusion Acquisition LLC, a Delaware limited liability company (“Fusion”)
and DLJ Merchant Banking Partners III, L.P., DLJ Offshore Partners III-1, C.V.,
DLJ Offshore Partners III-2, C.V., DLJ Offshore Partners III, C.V., DLJ MB
Partners III GmbH & Co. KG, Millennium Partners II, L.P. and MBP III Plan
Investors, L.P. (collectively, the “DLJMB Funds” and, Fusion and the
DLJMB Funds, each an “Investor” and together Fusion and the DLJMB Funds,
the “Investors”) hereby agrees with you as follows, effective upon such
grant of an Option:

 

1.                                       (a)                                  In
the event that at any time Fusion (together with any of its affiliates, to the
extent provided for in Paragraph 8 hereof, the “Selling Investors”)
proposes to sell for cash or any other consideration any shares of Class A
Common Stock or Class C common stock, par value $0.01 per share, of the Company
(the “Class C Common Stock” and, together with the Class A Common Stock,
the “Common Stock”) owned by it, in any transaction other than a Public
Offering (as defined in the Stockholder’s Agreement) or a sale to an affiliate
of the Selling Investors, the Selling Investors will notify you or your
Management Stockholder’s Estate or Management Stockholder’s Trust (as such
terms are defined in the Stockholder’s Agreement, and collectively with you,
the “Management Stockholder Entities”), as the case may be, in writing
(a “Notice”) of such proposed sale (a “Proposed Sale”) and the
material terms of the Proposed Sale as of the date of the Notice (the “Material
Terms”) promptly, and in any event not less than 15 days prior to the
consummation of the Proposed Sale and not more than five days after the
execution of the definitive agreement relating to the Proposed Sale, if any
(the “Sale Agreement”).

 

(b)                                 If
at any time Fusion and any of its affiliates no longer own any shares of Common
Stock, the term “Selling Investors” shall thereafter refer to the DLJMB Funds
and any of its affiliates, to the extent provided in Section 8 hereof.

 

(c)                                  If,
within 10 days after the Management Stockholder Entities’ receipt of
Notice under Section 1(a) or 1(b), the Selling Investors receive from the
Management Stockholder Entities a written request (a “Request”) to
include Common Stock held by the

 

 

Management
Stockholder Entities in the Proposed Sale (which Request shall be irrevocable
unless (a) there shall be a material adverse change in the Material Terms
or (b) if otherwise mutually agreed to in writing by the Management
Stockholder Entities, and the Selling Investor), the Common Stock held by you
will be so included as provided herein; provided that only one Request, which
shall be executed by the Management Stockholder Entities, may be delivered with
respect to any Proposed Sale for Common Stock held by the Management
Stockholder Entities.  Promptly after the
execution of the Sale Agreement, the Selling Investors will furnish the
Management Stockholder Entities with a copy of the Sale Agreement, if any.

 

2.                                       (a)                                  The
number of shares of Common Stock which the Management Stockholder Entities will
be permitted to include in a Proposed Sale pursuant to a Request will be the
product of (i) the sum of the number of shares of Common Stock then owned
by the Management Stockholder Entities (and held pursuant to the Stockholder’s
Agreement) plus all shares of Common Stock which you are then entitled
to acquire under any unexercised portion of the Option, to the extent such
Option is then exercisable or would become exercisable as a result of the
consummation of the Proposed Sale, multiplied by (ii) a fraction
(A) the numerator of which shall be the aggregate number of shares of
Common Stock proposed to be purchased by the buyer in the Proposed Sale and
(B) the denominator of which shall be the total number of shares of Common
Stock owned, or which would be owned upon exercise of any exercisable Options
(to the extent any such Options are then exercisable or would be exercisable as
a result of the consummation of the Proposed Sale), by the Selling Investors,
the Management Stockholder Entities and other holders of shares of Common Stock
who have been granted the same rights granted to the Management Stockholder
Entities to participate in the Proposed Sale (an “Eligible Holder”), as
the case may be.

 

(b)                              If
one or more Eligible Holders elect not to include the maximum number of shares
of Common Stock which such holders would have been permitted to include in a
Proposed Sale pursuant to Paragraph 2(a) (such non-included shares, the “Eligible
Shares”), then each of the Selling Investors, or the remaining Eligible
Holders, or any of them, will have the right to sell in the Proposed Sale a
number of additional shares of their Common Stock equal to their pro rata
portion of the number of Eligible Shares, based on the relative number of
shares of Common Stock then held by each such holder plus all shares of
Common Stock which each such holder would then be entitled to acquire under any
unexercised portion of the Option, to the extent such Option is then
exercisable or would become exercisable as a result of the consummation of the
Proposed Sale, and such additional shares of Common Stock which any such holder
or holders propose to sell shall not be included in any calculation made
pursuant to Paragraph 2(a) for the purpose of determining the number of
shares of Common Stock which the Management Stockholder Entities will be
permitted to include in a Proposed Sale. 
The Selling Investors, or any of them, will have the right to sell in
the Proposed Sale additional shares of Common Stock owned by them equal to the
number, if any, of remaining Eligible Shares which will not be included in the
Proposed Sale pursuant to the foregoing.

 

3.                                       Except
as may otherwise be provided herein, shares of Common Stock subject to a
Request will be included in a Proposed Sale pursuant hereto and in any
agreements with purchasers relating thereto on the same terms and subject to
the same conditions applicable to the shares of Common Stock which the Selling
Investors propose to sell in the Proposed Sale. 
Such terms and conditions shall include, without limitation:  the pro rata reduction of the number of

 

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shares of Common Stock to be sold by the Selling
Investors, the Management Stockholder Entities and any Eligible Holders to be
included in the Proposed Sale if required by the party proposing such Sale; the
sale price; the payment of fees, commissions and expenses; the provision of,
and representation and warranty as to, information reasonably requested by the
Selling Investors covering matters regarding the Management Stockholder
Entities’ ownership of shares; and the provision of requisite indemnification; provided
that any indemnification provided by the Management Stockholder Entities shall
be pro rata in proportion with the number of shares of Common Stock to be sold.

 

4.                                       Upon
delivering a Request, the Management Stockholder Entities will, if requested by
the Selling Investors, execute and deliver a custody agreement and power of
attorney in form and substance reasonably satisfactory to the Selling Investors
with respect to the shares of Common Stock which are to be sold by the
Management Stockholder Entities pursuant hereto (a “Custody Agreement and
Power of Attorney”).  The Custody
Agreement and Power of Attorney will contain customary provisions and will
provide, among other things, that the Management Stockholder Entities will
deliver to and deposit in custody with the custodian and attorney-in-fact named
therein a certificate or certificates (if such shares are certificated)
representing such shares of Common Stock (duly endorsed in blank by the
registered owner or owners thereof) and irrevocably appoint said custodian and
attorney-in-fact as the Management Stockholder Entities’ agent and
attorney-in-fact with full power and authority to act under the Custody Agreement
and Power of Attorney on the Management Stockholder Entities’ behalf with
respect to the matters specified therein.

 

5.                                       The
Management Stockholder Entities’ right pursuant hereto to participate in a
Proposed Sale shall be contingent on the Management Stockholder Entities’
strict compliance with each of the provisions hereof and the Management
Stockholder Entities’ respective willingness to execute such documents in
connection therewith as may be reasonably requested by the Selling Investors.

 

6.                                       (a)  If (i) an Investor owns shares of Common
Stock in an amount that is equal to or exceeds 65% of the then issued and
outstanding (after taking into account any options that will be accelerated as
a result of the transaction) Common Stock (such Investor the “Lead Investor”),
(ii) the Lead Investor proposes to transfer at least 50.1% of the issued and
outstanding Common Stock (after taking into account any options that will be
accelerated as a result of the transaction) in a bona fide arm’s length
transaction to a person not Affiliated (as defined in the Stockholders
Agreement, dated as of October 4, 2004, among the Company, Fusion and the
DLJMB Funds (the “Investor Stockholders Agreement”) with the Lead
Investor and (iii) if at such time the other Investor or its affiliates own
shares of Common Stock, the Lead Investor also exercises its “drag along” right
under Section 3.5 of the Investor Stockholders Agreement with respect to
shares of Common Stock owned by the other Investor or its affiliates, then if
requested by the Lead Investor, the Management Stockholder Entities shall be
required to sell the same percentage of their shares of Common Stock as the
Lead Investor is selling in the transaction (such transaction, a “Drag
Transaction”); provided, however, that in such event, the
order in which the shares of Common Stock held by the Management Stockholder
Entities shall be required to be sold shall be: first, any shares of Common
Stock then held by the Management Stockholder Entities that constitutes
Purchased Stock (as defined in the Stockholder’s

 

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Agreement); and second, any shares of Common Stock
acquired pursuant to the exercise of any exercisable Options.

 

(b)                                 Shares
of Common Stock held by the Management Stockholder Entities included in a Drag
Transaction will be included in any agreements with purchasers relating thereto
on the same terms and subject to the same conditions applicable to the shares
of Common Stock which the Lead Investor propose to sell in the Dragged
Transaction.  Such terms and conditions
shall include, without limitation:  the
pro rata reduction of the number of shares of Common Stock to be sold by the
Lead Investor, the other Investor and the Management Stockholder Entities to be
included in the Drag Transaction if required by the party proposing such Drag
Transaction; the sale price; the payment of fees, commissions and expenses; the
provision of, and representation and warranty as to, information reasonably
requested by the Lead Investor covering matters regarding the Management
Stockholder Entities’ ownership of shares; and the provision of requisite
indemnification; provided that any indemnification provided by the
Management Stockholder Entities shall be pro rata in proportion with the number
of shares of Common Stock to be sold.

 

(c)                                  In
the event of a transaction which results in a Change in Control (as defined in
the Stockholder’s Agreement) but is not a Drag Transaction in which the Lead
Investor has exercised its rights pursuant to Section 6(a) or the
Management Stockholder Entities have exercised their rights pursuant to Section 1
(a “Proposed Transaction”), you agree on behalf of the Management
Stockholder Entities, to bear your pro rata share of any fees, commissions,
adjustments to purchase price, expenses or indemnities borne by the Selling
Investors.

 

(d)                                 Your
pro rata share of any amount to be paid pursuant to Section 3 or paragraph
6(b) or 6(c) shall be based upon the number of shares of Common Stock intended
to be transferred by the Management Stockholder Entities plus the number of
shares of Common Stock you would have the right to acquire under any
unexercised portion of the Option which is then vested or would become vested
as a result of the Proposed Sale or Proposed Transaction, assuming that you
receive a payment in respect of such Option.

 

7.                                       The
obligations of the Selling Investors hereunder shall extend only to the
Management Stockholder Entities, and none of the Management Stockholder
Entities’ successors or assigns shall have any rights pursuant hereto.

 

8.                                       If
the Selling Investors or any of them transfer any of their interests in the
Company to an affiliate of any of the Selling Investors, such affiliate shall
assume the obligations hereunder of the Selling Investors.

 

9.                                       This
Agreement shall terminate and be of no further force and effect on the fifth
anniversary of the first occurrence of a Public Offering (as defined in the
Stockholder’s Agreement).

 

10.                                 All
notices and other communications required or permitted hereunder shall be in
writing and shall be deemed effectively given: (a) upon personal delivery to
the party to be notified, (b) when sent by confirmed facsimile if sent during
normal business hours of the recipient, if not, then on the next business day, provided
that a copy of such notice is also sent

 

4

 

via nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt, (c) five
(5) days after having been sent by registered or certified mail, return receipt
requested, postage prepaid or (d) one (1) business day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt.  All
communications shall be sent to such party’s address as set forth below or at
such other address or to such other person as the party shall have furnished to
each other party in writing in accordance with this provision:

 

If to Fusion, to them at the following address:

 

Fusion Acquisition
LLC

c/o Kohlberg
Kravis Roberts & Co. L.P.

9 West 57th
Street

New York, New
York  10019

Attn:  Alexander Navab

 

with a copy to:

 

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York  10017

Attn: 
Gary Horowitz, Esq.

 

If to the DLJMB Funds, to them at the following
address:

 

c/o
DLJ Merchant Banking III, Inc.

Eleven Madison Avenue

New York, NY 10010

Attention:  Thompson Dean

 

with a
copy to:

 

Weil,
Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153

Attention:  Douglas P. Warner, Esq.

 

If to the Company, to the Company at the following
address:

 

Visant Holding Corp.

One Byram Brook Place, Suite 202

Armonk, NY  10504

Attention:  General Counsel

 

with a copy to:

 

Simpson Thacher & Bartlett LLP

 

5

 

425 Lexington Avenue

New York, New York  10017

Attn: 
Gary Horowitz, Esq.

 

with a
copy to:

 

Weil,
Gotshal & Manges LLP

767 Fifth Avenue

New York, New York 10153

Attention:  Douglas P. Warner, Esq.

 

If to you, to
you at the address first set forth above herein;

 

If to your
Management Stockholder’s Estate or Management Stockholder’s Trust, to the
address provided to the Company by such entity.

 

11.                                 The
laws of the State of Delaware shall govern the interpretation, validity and
performance of the terms of this Agreement. 
In the event of any controversy among the parties hereto arising out of,
or relating to, this Agreement which cannot be settled amicably by the parties,
such controversy shall be finally, exclusively and conclusively settled by
mandatory arbitration conducted expeditiously in accordance with the American
Arbitration Association rules, by a single independent arbitrator.  Such arbitration process shall take place
within 100 miles of the New York City metropolitan area.  The decision of the arbitrator shall be final
and binding upon all parties hereto and shall be rendered pursuant to a written
decision, which contains a detailed recital of the arbitrator’s reasoning.  Judgment upon the award rendered may be
entered in any court having jurisdiction thereof.  Each party shall bear its own legal fees and
expenses, unless otherwise determined by the arbitrator.  Each party hereto hereby irrevocably waives
any right that it may have had to bring an action in any court, domestic or
foreign, or before any similar domestic or foreign authority with respect to
this Agreement.

 

12.                                 This
Agreement may be executed in counterparts, and by different parties on separate
counterparts, each of which shall be deemed an original, but all such counterparts
shall together constitute one and the same instrument.

 

13.                                 It
is the understanding of the undersigned that you are aware that no Proposed
Sale is contemplated and that such a sale may never occur.

 

[Signatures
on next page]

 

6

 

If the foregoing accurately sets forth our agreement, please
acknowledge your acceptance thereof in the space provided below for that
purpose.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  FUSION ACQUISITION LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ MERCHANT BANKING PARTNERS III,

  L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III-1, C.V.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III-2, C.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III, C.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  DLJ MB PARTNERS III GmbH & Co. KG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MILLENNIUM PARTNERS II, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MBP III PLAN INVESTORS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and agreed this        
  day of

  	
   

  
	
   

  	
   

  
	
                         
  200  .

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:Exhibit 10.33

 

FORM OF STOCK OPTION AGREEMENT

 

THIS
AGREEMENT, dated as of                            ,
200   (the “Grant Date”) is made by and between Visant Holding
Corp. (formerly known as Jostens Holding Corp.), a Delaware corporation
(hereinafter referred to as the “Company”), and the individual whose
name is set forth on the signature page hereof, who is an employee of the Company or a Subsidiary
or Affiliate of the Company, hereinafter referred to as the “Optionee”.  Any capitalized terms herein not otherwise
defined in Article I shall have the meaning set forth in the Plan (as
hereinafter defined).

 

WHEREAS, the
Company wishes to carry out the Plan, the terms of which are hereby
incorporated by reference and made a part of this Agreement; and

 

WHEREAS, the
Committee, appointed to administer the Plan, has determined that it would be to
the advantage and best interest of the Company and its shareholders to grant
the Option provided for herein to the Optionee as an incentive for increased
efforts during his term of office with the Company or its Subsidiaries or
Affiliates, and has advised the Company thereof and instructed the undersigned
officers to issue said Option;

 

NOW,
THEREFORE, in consideration of the mutual covenants herein contained and other
good and valuable consideration, receipt of which is hereby acknowledged, the
parties hereto do hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Whenever the
following terms are used in this Agreement, they shall have the meaning
specified below unless the context clearly indicates to the contrary.

 

Section 1.1.                                   Cause

 

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

 

 

Section 1.2.                                   - Change in
Control

 

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

 

Section 1.3.                                   - Committee

 

“Committee”
shall mean the
Compensation Committee of the Board of Directors of the Company.

 

Section 1.4.                                   – EBITDA

 

“EBITDA” for
any period shall mean the consolidated net income of Visant Corporation
(formerly known as Jostens IH Corp.), a Delaware corporation and wholly owned
Subsidiary of the Company, for such period, adjusted, as applicable, by the
following items (without duplication, to the extent deducted or added in
calculating consolidated net income):

 

(a)          provision for income
taxes (or income tax benefit),

 

(b)         net interest expense
(including the cost of any surety bonds and net of any net gain or loss
resulting from hedging obligations),

 

(c)          depreciation and
amortization expense,

 

(d)         expenses or charges
related to any equity or debt offering, recapitalization, acquisition, or
disposition,

 

(e)          restructuring charges,
including any one-time costs related to the closure and/or consolidation of
facilities,

 

(f)            other non-cash and/or
one-time charges (or credits), excluding any such charge or credit that
represents an accrual or reserve (or reversal of an accrual or reserve) for a
cash expenditure for a future period,

 

(g)         expenses related to
management, monitoring, consulting and advisory fees and related expenses paid
to either Fusion and its Affiliates or the DLJMB Funds, and

 

2

 

(h)         an adjustment to record
inventory of Von Hoffmann Holdings Inc., a Delaware corporation and wholly
owned Subsidiary of the Company, on the last-in, first-out method.

 

The Board of Directors may adjust the
calculation of EBITDA above to reflect acquisitions, divestitures, unexpected
large capital expenditures or other unanticipated occurrences or conditions
which they in good faith determine require adjustment of EBITDA in order to be
consistent with the financial case used to establish the performance targets.

 

Section 1.5.                                   - Fiscal Year

 

“Fiscal Year”
shall mean each fiscal year of the Company.

 

Section 1.6.                                   – Good Reason

 

“Good
Reason” shall mean “Good Reason” as such term is defined in the Employment
Agreement, or if there is no such Employment Agreement, “Good Reason” shall
mean (i) a reduction in the Optionee’s base salary or annual incentive
compensation (other than a general reduction in base salary that affects all
members of senior management in substantially the same proportions, provided
that the Optionee’s base salary is not reduced by more than 10%); (ii) a
substantial reduction in the Optionee’s duties and responsibilities; or (iii) a
transfer of the Optionee’s primary workplace by more than fifty miles from the
current workplace, and provided, further, that “Good Reason”
shall cease to exist for any such event on the 60th day following
the later of its occurrence or the Optionee’s knowledge thereof, unless the
Optionee has given the Company written notice thereof prior to such date.

 

Section 1.7.                                   - Investors

 

“Investors”
means Fusion Acquisition LLC, a Delaware limited liability company (“Fusion”),
and DLJ Merchant Banking Partners III, L.P., DLJ Offshore Partners III-1,
C.V., DLJ Offshore Partners III-2, C.V., DLJ Offshore Partners III, C.V.,
DLJ MB Partners III GmbH & Co. KG, Millennium Partners II, L.P. and
MBP III Plan Investors, L.P (collectively, the “DLJMB Funds”).

 

Section 1.8.                                   - Management
Stockholder’s Agreement

 

“Management
Stockholder’s Agreement” shall mean that certain Management Stockholder’s
Agreement dated as of                     
      , 2005 between the Optionee and the
Company.

 

Section 1.9.                                   - Option

 

“Option” shall
mean the aggregate of the Time Option and the Performance Option granted under Section 2.1
of this Agreement.

 

3

 

Section 1.10.                             - Permanent Disability

 

“Permanent
Disability” shall mean “Disability” as such term is defined in the Employment
Agreement, or if there is no such Employment Agreement, “Permanent Disability”
shall mean the Optionee becoming physically or mentally incapacitated and is
therefore unable for a period of six (6) consecutive months or for an
aggregate of nine (9) months in any eighteen (18) consecutive month period
to perform substantially all of the material elements of the Optionee’s duties
with the Company or any Subsidiary or Affiliate thereof.  Any question as to the existence of the
Permanent Disability of the Optionee as to which the Optionee and the Company
cannot agree shall be determined in writing by a qualified independent
physician mutually acceptable to the Optionee and the Company.  If the Optionee and the Company cannot agree
as to a qualified independent physician, each shall appoint such a physician and
those two physicians shall select a third who shall make such determination in
writing.  The determination of Permanent
Disability made in writing to the Company and the Optionee shall be final and
conclusive for all purposes of this Agreement (such inability is hereinafter
referred to as “Permanent Disability” or being “Permanently Disabled”).

 

Section 1.11.                             - Performance Option

 

“Performance
Option” shall mean the right and option to purchase, on the terms and
conditions set forth herein, all or any part of an aggregate of the number of
shares of Common Stock set forth on the signature page hereof opposite the
term Performance Option.

 

Section 1.12.                             - Plan

 

“Plan” shall
mean the Amended and Restated 2004 Stock Option Plan for Key Employees of
Visant Holding Corp. and Its Subsidiaries, as amended and in effect from time
to time.

 

Section 1.13.                             - Secretary

 

“Secretary”
shall mean the Secretary of the Company.

 

Section 1.14.                             - Time Option

 

“Time Option”
shall mean the right and option to purchase, on the terms and conditions set
forth herein, all or any part of an aggregate of the number of shares of Common
Stock set forth on the signature page hereof opposite the term Time
Option.

 

ARTICLE II

GRANT OF OPTIONS

 

Section 2.1.                                   - Grant of
Options

 

For good and
valuable consideration, on and as of the date hereof the Company irrevocably
grants to the Optionee (i) a Time Option to purchase any part or all of an
aggregate

 

4

 

of the number
of shares set forth on the signature page hereof of its Common Stock upon
the terms and conditions set forth in this Agreement and (ii) a
Performance Option to purchase any part or all of an aggregate of the number of
shares set forth on the signature page hereof of its Common Stock upon the
terms and conditions set forth in this Agreement.  The Option shall consist of a Time Option and
a Performance Option.

 

Section 2.2.                                   - Exercise Price

 

Subject to Section 2.4,
the exercise price of the shares of Common Stock covered by the Option shall be
$            per share
(the “Base Price”) without commission or other charge (which is the Fair
Market Value per share of the Common Stock on the Grant Date).

 

Section 2.3.                                   - No Guarantee of
Employment

 

Nothing in
this Agreement or in the Plan shall confer upon the Optionee any right to continue
in the employ of the Company or any Subsidiary or Affiliate or shall interfere
with or restrict in any way the rights of the Company and its Subsidiaries or
Affiliates, which are hereby expressly reserved, to terminate the employment of
the Optionee at any time for any reason whatsoever, with or without cause,
subject to the applicable provisions of, if any, the Optionee’s employment
agreement with the Company or offer letter provided by the Company to the
Optionee.

 

Section 2.4.                                   - Adjustments to
Option

 

Subject to
Sections 8 and 9 of the Plan, in the event that the outstanding shares of the
stock subject to the Option, are, from time to time, changed into or exchanged
for a different number or kind of shares of the Company or other securities by
reason of a merger, consolidation, recapitalization, reclassification, stock
split, spin-off, stock dividend, combination of shares, or other corporate
event, the Committee shall make, as appropriate and equitable, an adjustment in
the number and kind of shares and/or the amount of consideration as to which or
for which, as the case may be, such Option, or portions thereof then
unexercised, shall be exercisable, and the Committee may, as it deems in good
faith appropriate and equitable, pay to the Optionee an amount in respect of
the shares of Common Stock subject to the Option, with such conditions or
limitations as the Committee may deem in good faith to be reasonable and
necessary to preserve the economic value of the Option.  Any such adjustment made by the Committee
shall be final and binding upon the Optionee, the Company and all other
interested persons.

 

ARTICLE III

PERIOD OF EXERCISABILITY

 

Section 3.1.                                   - Commencement of
Exercisability

 

(a)                                  Option Vesting
Schedules.  So long as the Optionee continues to be
employed by the Company or any of its Subsidiaries or Affiliates, the Option
shall become exercisable pursuant to the following schedules:

 

5

 

(i)                                     Time Option.  The Time Option shall become vested and exercisable
with respect to 100% of the shares subject to the Time Option pursuant to the
following schedule: 

 

	
  Date Scheduled Vesting

  Time Option becomes

  Vested and Exercisable

  	
   

  	
  Cumulative Percentage of

  Scheduled Vesting Time Option that

  is Vested and Exercisable

  
	
  Last Day of
  Fiscal Year 200

  	
   

  	
  25%

  
	
  Last Day of
  Fiscal Year 200

  	
   

  	
  50%

  
	
  Last Day of
  Fiscal Year 200

  	
   

  	
  75%

  
	
  Last Day of
  Fiscal Year 200

  	
   

  	
  90%

  
	
  Last Day of
  Fiscal Year 200

  	
   

  	
  100%

  

 

(ii)                                  Performance Option.

 

(A)                                                      The
Performance Option shall become vested and exercisable as to 100% of the shares
subject to such Option on ____________ __ , 20__ provided, however,
that the vesting and exercisability of the Performance Option will be
accelerated pursuant to the following schedule, if and only
to the extent that the Company achieves the applicable annual
performance targets for each of the Company’s Fiscal Years ______ through _____
set forth in the schedule attached hereto as Schedule A in
respect of which the applicable percentage of the Performance Option may become
vested and exercisable (each, an “Annual Performance Target”):

 

	
  Date Performance Option

  becomes Vested and Exercisable

  	
   

  	
  Cumulative
  Percentage of

  Performance Option that

  is Vested and Exercisable

  
	
  Last Day of Fiscal Year 200

  	
   

  	
  25%

  
	
  Last Day of Fiscal Year 200

  	
   

  	
  50%

  
	
  Last Day of Fiscal Year 200

  	
   

  	
  75%

  
	
  Last Day of Fiscal Year 200

  	
   

  	
  90%

  
	
  Last Day of Fiscal Year 200

  	
   

  	
  100%

  

 

In the event that an Annual
Performance Target is not achieved in a particular Fiscal Year (any such year,
a “Missed Year”), if and only to the extent
that performance of the Company in any subsequent Fiscal Year
satisfies the Cumulative Performance Targets (as set forth in Schedule A)
applicable to any such subsequent Fiscal Year, then the applicable percentage
of the Performance Option that was scheduled to become vested and exercisable
in respect of such Missed Year shall become vested and exercisable as of the
end of the Fiscal Year in respect of which the Cumulative Performance Targets
are achieved.

 

(B)                                                        In
the event that the Optionee’s employment with the Company terminates for any
reason (other than for Cause by the Company) after the end of a particular
Fiscal Year but before the Determination Date (as defined below) in respect of
such

 

6

 

year, if the
Annual Performance Targets applicable to such Fiscal Year are determined to
have been achieved upon the Determination Date, then the percentage of the
Performance Option that would otherwise be vested and exercisable in respect of
such prior Fiscal Year in accordance with the schedule set forth in Section 3.1(a)(ii)(A) above
shall be deemed to have been vested and exercisable immediately prior to the
date of termination of the Optionee’s employment with the Company.

 

(b)                                 Effect of
Change in Control on Option Vesting Schedules.

 

(i)                                     Notwithstanding
the provisions of Section 3.1(a)(i), any unvested portion of the Time
Option shall become immediately exercisable as to 100% of the shares of Common
Stock subject to such Option immediately prior to a Change in Control (but only
to the extent such Option has not otherwise terminated or become exercisable).

 

(ii)                                  Notwithstanding
the provisions of Section 3.1(a)(ii), any unvested portion of the
Performance Option shall become immediately exercisable as to 100% of the
shares of Common Stock subject to such Option immediately prior to a Change in
Control (but only to the extent such Option has not otherwise terminated or
become exercisable), if  either (x) the applicable Annual
Performance Targets have been achieved for each of the Fiscal Years occurring
prior to the Fiscal Year in which the Change in Control occurs (either at such
time(s) as determined pursuant to Section 3.1(a)(ii) above or on a “catch-up”
basis or (y) as a result of the
Change in Control, (A) Fusion or its Affiliates achieves a gross internal
rate of return on its equity investment in the Company of not less than 25% (on
a fully diluted basis, assuming the inclusion of all shares of Common Stock
underlying all Performance Options), as determined in good faith by Kohlberg
Kravis Roberts & Co. L.P. (“KKR”) or its Affiliates, as applicable,
and consistent with the past practice of KKR or its Affiliates, as applicable, and
(B) Fusion or its Affiliates earns at least 3.0 times the Base Price for each
share of Common Stock held by it immediately prior to the Change in Control (as
determined in good faith by KKR or its Affiliates, as applicable, and
consistent with the past practice of KKR or its Affiliates, as applicable).   In connection with the determination under Section 3.1(b)(ii)(x),
above, if a Change in Control occurs during a Fiscal Year, the Board shall
determine in good faith what percentage of the Performance Option will become
vested and exercisable in connection with the Change in Control based upon
quarterly performance targets measuring EBITDA over the trailing twelve month
period.  Further, in connection with the
determination under Section 3.1(b)(ii)(y), above, in the event that Fusion
or its Affiliates disposes of all Common Stock held (directly or indirectly) by
it prior to the occurrence of a Change in Control, all references to “Fusion”
or “KKR” set forth in clause (y) above shall instead refer to the DLJMB Funds.

 

(c)                                  Determination
Date.  The determination of whether and to what
extent any Annual Performance Target(s) and/or Cumulative Performance Target(s)
is/are achieved shall be made by the Board (or a designated committee thereof)
at such time as the financial statements in respect of the applicable Fiscal
Year are completed (the date on which such determination is made, the “Determination
Date”).

 

(d)                                 Effect of
Termination of Employment on Option Vesting Schedule.  Notwithstanding the foregoing, no Option
shall become exercisable as to any additional shares of Common Stock (which
does not otherwise become exercisable in accordance with Section 3.1(a)

 

7

 

or (b) above) following the termination of employment of the
Optionee for any reason and any Option, which is unexercisable as of the
Optionee’s termination of employment, shall be immediately cancelled without
payment therefor.

 

Section 3.2.                                   – Expiration of
Option

 

Except as
otherwise provided in Section 5 or 6 of the Management Stockholder’s
Agreement, the Optionee may not exercise the Option to any extent after the
first to occur of the following events:

 

(a)                                  The tenth anniversary of the
Grant Date;

 

(b)                                 The first anniversary of the
date of the Optionee’s termination of employment, if the Optionee’s employment
is terminated by reason of death or Permanent Disability;

 

(c)                                  Immediately upon the date of the
Optionee’s termination of employment by the Company or its Subsidiaries or
Affiliates for Cause;

 

(d)                                 Ninety (90) days after the date
of an Optionee’s termination of employment by the Company or any of its
Subsidiaries or Affiliates without Cause (for any reason other than as set
forth in Section 3.2(b));

 

(e)                                  Ninety (90) days after the date
of an Optionee’s termination of employment with the Company or any of its
subsidiaries or affiliates by the Optionee with Good Reason;

 

(f)                                    Immediately upon the date of an
Optionee’s termination of employment with the Company or any of its
subsidiaries or affiliates by the Optionee without Good Reason;

 

(g)                                 The date the Option is
terminated pursuant to Section 5 or 6 of the Management Stockholder’s
Agreement; or

 

(h)                                 At the discretion of the
Company, if the Committee so determines pursuant to Section 9 of the Plan,
the effective date of either the merger or consolidation of the Company into
another Person, or the exchange or acquisition by another Person of all or
substantially all of the Company’s assets or 80% or more of its then
outstanding voting stock, or the recapitalization, reclassification,
liquidation, dissolution or other corporate event of the Company after (x) ten (10) days
prior written notice to the Optionee that the Company intends to exercise such
discretion and an opportunity for the Optionee to exercise his Options (whether
or not then otherwise vested and exercisable), (y) payment to the Optionee in
respect of the termination of his Options, or (z) an opportunity for the
Executive to convert his Options into new options to purchase voting securities
of the surviving or parent entity, in connection with such transaction.

 

8

 

ARTICLE IV

EXERCISE OF OPTION

 

Section 4.1.                                   – Person Eligible
to Exercise

 

Except as
otherwise provided in the Management Stockholder’s Agreement, during the
lifetime of the Optionee, only he may exercise an Option or any portion
thereof.  After the death of the
Optionee, any exercisable portion of an Option may, prior to the time when an
Option becomes unexercisable under Section 3.2, be exercised by his
personal representative or by any person empowered to do so under the Optionee’s
will or under the then applicable laws of descent and distribution.

 

Section 4.2.                                   – Partial
Exercise

 

Any
exercisable portion of an Option or the entire Option, if then wholly
exercisable, may be exercised in whole or in part at any time prior to the time
when the Option or portion thereof becomes unexercisable under Section 3.2;
provided, however, that any partial exercise shall be for whole
shares of Common Stock only.

 

Section 4.3.                                   – Manner of
Exercise

 

An Option, or
any exercisable portion thereof, may be exercised solely by delivering to the
Secretary or his office all of the following prior to the time when the Option
or such portion becomes unexercisable under Section 3.2:

 

(a)                                  Notice in writing signed by the
Optionee or the other person then entitled to exercise the Option or portion
thereof, stating that the Option or portion thereof is thereby exercised, such
notice complying with all applicable rules established by the Committee;

 

(b)                                 Full payment (in cash or by
check or by a combination thereof) for the shares with respect to which such
Option or portion thereof is exercised;

 

(c)                                  A bona fide written
representation and agreement, in a form satisfactory to the Committee, signed
by the Optionee or other person then entitled to exercise such Option or
portion thereof, stating that the shares of Common Stock are being acquired for
his own account, for investment and without any present intention of
distributing or reselling said shares or any of them except as may be permitted
under the Securities Act of 1933, as amended (the “Act”), and then
applicable rules and regulations thereunder, and that the Optionee or
other person then entitled to exercise such Option or portion thereof will
indemnify the Company against and hold it free and harmless from any loss,
damage, expense or liability resulting to the Company if any sale or
distribution of the shares by such person is contrary to the representation and
agreement referred to above; provided, however, that the
Committee may, in its reasonable discretion, take whatever additional actions
it deems reasonably necessary to ensure the observance and performance of such
representation and agreement and to effect compliance with the Act and any
other federal or state securities laws or regulations;

 

9

 

(d)                                 Full payment to the Company of
all amounts which, under federal, state or local law, it is required to
withhold upon exercise of the Option; and

 

(e)                                  In the event the Option or
portion thereof shall be exercised pursuant to Section 4.1 by any person
or persons other than the Optionee, appropriate proof of the right of such
person or persons to exercise the option.

 

Without
limiting the generality of the foregoing, the Committee may require an opinion
of counsel acceptable to it to the effect that any subsequent transfer of
shares acquired on exercise of an Option does not violate the Act, and may
issue stop-transfer orders covering such shares.  Share certificates evidencing stock issued on
exercise of this Option shall bear an appropriate legend referring to the
provisions of subsection (c) above and the agreements herein. The
written representation and agreement referred to in subsection (c) above
shall, however, not be required if the shares to be issued pursuant to such
exercise have been registered under the Act, and such registration is then
effective in respect of such shares.

 

Section 4.4.                                   – Conditions to
Issuance of Stock Certificates

 

The shares of
stock deliverable upon the exercise of an Option, or any portion thereof, may
be either previously authorized but unissued shares or issued shares, which
have then been reacquired by the Company. 
Such shares shall be fully paid and nonassessable.  The Company shall not be required to issue or
deliver any certificate or certificates for shares of stock purchased upon the
exercise of an Option or portion thereof prior to fulfillment of all of the
following conditions:

 

(a)                                  The obtaining of approval or
other clearance from any state or federal governmental agency which the
Committee shall, in its reasonable and good faith discretion, determine to be
necessary or advisable; and

 

The lapse of such reasonable period of time following
the exercise of the Option as the Committee may from time to time establish for
reasons of administrative convenience or as may otherwise be required by
applicable law.

 

Section 4.5.                                   – Rights as
Stockholder

 

Except as
otherwise provided in Section 2.4 of this Agreement, the holder of an
Option shall not be, nor have any of the rights or privileges of, a stockholder
of the Company in respect of any shares purchasable upon the exercise of the
Option or any portion thereof unless and until certificates representing such
shares shall have been issued by the Company to such holder.

 

10

 

ARTICLE V

MISCELLANEOUS

 

Section 5.1.                                   – Administration

 

The Committee
shall have the power to interpret the Plan and this Agreement and to adopt such
rules for the administration, interpretation and application of the Plan
as are consistent therewith and to interpret or revoke any such rules.  All actions taken and all interpretations and
determinations made by the Committee shall be final and binding upon the
Optionee, the Company and all other interested persons.  No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or the Option. 
In its absolute discretion, the Board may at any time and from time to
time exercise any and all rights and duties of the Committee under the Plan and
this Agreement.

 

Section 5.2.                                   – Option Not
Transferable

 

Neither the
Option nor any interest or right therein or part thereof shall be liable for
the debts, contracts or engagements of the Optionee or his successors in
interest or shall be subject to disposition by transfer, alienation,
anticipation, pledge, encumbrance, assignment or any other means whether such
disposition be voluntary or involuntary or by operation of law by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings
(including bankruptcy), and any attempted disposition thereof shall be null and
void and of no effect; provided, however, that this Section 5.2 shall not
prevent transfers by will or by the applicable laws of descent and
distribution.

 

Section 5.3.                                   – Notices

 

Any notice to
be given under the terms of this Agreement to the Company shall be addressed to
the Company in care of its Secretary, and any notice to be given to the Optionee
shall be addressed to him at the address given beneath his signature
hereto.  By a notice given pursuant to
this Section 5.3, either party may hereafter designate a different address
for notices to be given to him.  Any
notice, which is required to be given to the Optionee, shall, if the Optionee
is then deceased, be given to the Optionee’s personal representative if such
representative has previously informed the Company of his status and address by
written notice under this Section 5.3. 
Any notice shall have been deemed duly given when enclosed in a properly
sealed envelope or wrapper addressed as aforesaid, deposited (with postage
prepaid) in a post office or branch post office regularly maintained by the
United States Postal Service.

 

Section 5.4.                                   – Titles;
Pronouns

 

Titles are
provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.  The masculine pronoun shall include the
feminine and neuter, and the singular the plural, where the context so
indicates.

 

11

 

Section 5.5.                                   – Applicability
of Plan and Management Stockholder’s Agreement

 

The Option and
the shares of Common Stock issued to the Optionee upon exercise of the Option
shall be subject to all of the terms and provisions of the Plan and the
Management Stockholder’s Agreement, to the extent applicable to the Option and
such shares.  In the event of any
conflict between this Agreement and the Plan, the terms of the Plan shall
control.  In the event of any conflict
between this Agreement or the Plan and the Management Stockholder’s Agreement,
the terms of the Management Stockholder’s Agreement shall control.

 

Section 5.6.                                   – Amendment

 

This Agreement
may be amended only by a writing executed by the parties hereto, which
specifically states that it is amending this Agreement.

 

Section 5.7.                                   – Governing Law

 

The laws of the State of Delaware shall govern the interpretation,
validity and performance of the terms of this Agreement regardless of the law
that might be applied under principles of conflicts of laws.

 

Section 5.8.                                   – Arbitration

 

In the event of any controversy among the
parties hereto arising out of, or relating to, this Agreement which cannot be
settled amicably by the parties, such controversy shall be finally, exclusively
and conclusively settled by mandatory arbitration conducted expeditiously in
accordance with the American Arbitration Association rules, by a single
independent arbitrator.  Such arbitration
process shall take place within 100 miles of the New York City metropolitan
area.  The decision of the arbitrator
shall be final and binding upon all parties hereto and shall be rendered
pursuant to a written decision, which contains a detailed recital of the
arbitrator’s reasoning.  Judgment upon
the award rendered may be entered in any court having jurisdiction
thereof.  Each party shall bear its own
legal fees and expenses, unless otherwise determined by the arbitrator.  Notwithstanding anything herein to the
contrary, if the Employment Agreement contains a similar provision relating to
arbitration and/or dispute resolution, such provision in the Employment
Agreement shall govern any controversy hereunder.

 

[Signatures on next page.]

 

12

 

IN WITNESS
WHEREOF, this Agreement has been executed and delivered by the parties hereto.

 

	
   

  	
  VISANT HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

	
   

  	
  OPTIONEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADDRESS:

  

 

 

	
  Aggregate
  number of shares of Common Stock for which the Time Option granted hereunder is exercisable (100% of
  number of shares):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Aggregate
  number of shares of Common Stock for which the Performance Option granted hereunder is exercisable
  (100% of number of shares):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Base Price:

  	
   

  	
  $               per share

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
                             ,
  200

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