Document:

Exhibit 10.56

 

EMPLOYEE

INCENTIVE STOCK OPTION

AGREEMENT

 

POORE
BROTHERS, INC., a Delaware corporation (the “Company”),
hereby grants effective                       
(the “Grant Date”) to                                          
(the “Optionee”) an option to purchase a
total of                           
shares of common stock, par value $.01 per share, of the Company (the “Common Stock”) at a price of $          
per share. The option granted to you is subject to the terms and conditions of
the Company’s 2005 Equity Incentive Plan (the “Plan”)
and such additional terms and conditions as are set forth in this Incentive
Stock Option Agreement (the “Agreement”). The terms of the Plan are
incorporated by reference in this Agreement and govern the granting, holding
and exercise of your option as though set forth in full in this Agreement. A
copy of the Plan is attached to the Prospectus delivered to you with this
Agreement. All capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings expressly assigned thereto in the Plan.

 

1.                                       Nature of the Option. This option is intended to be an “Incentive
Stock Option” as defined in and subject to the limitations of Section 422A
of the Internal Revenue Code of 1986.

 

2.                                       Exercise of Option.

 

a)                                      This
option may be exercised by delivery of written notice to the Company in
the form attached as Exhibit A stating the number of shares of
Common Stock with respect to which the option is being exercised, making such
representations, warranties and agreements with respect to such shares of
Common Stock as may be required by the Company, and accompanied by full
payment of the purchase price therefor. Payment may be made in cash, by
check, by delivery of shares of Common Stock or in such other form or
combination of forms as shall be acceptable to the Company. This option shall
not be exercisable as to fewer than 500 shares of Common Stock, or the
remaining shares of Common Stock covered by this option if fewer than 500.

 

b)                                     Provided
that the Optionee is then employed by the Company, this option shall vest and
become exercisable in installments on the following dates:

 

	
   

  	
   

  	
                         shares

  
	
   

  	
   

  	
                         shares

  
	
   

  	
   

  	
                         shares

  

 

(each of the above dates,
a “Vesting Date”).

 

3.                                       Termination. This option shall expire five (5) years
from the Grant Date above, (the “Expiration Date”)
unless earlier terminated in accordance with the provisions hereof.

 

 

4.                                       Early Termination.

 

a)                                      In
the event that Optionee ceases to be an employee of the Company for any reason
whatsoever (including by death, Retirement or Disability, or termination by
voluntary resignation or removal with or without Cause), this option shall
automatically terminate on the date Optionee ceases to be an employee to the
extent this option is unvested on such date.

 

b)                                     In
the event that Optionee is removed as an employee for Cause, this option shall
automatically terminate immediately upon the effective date of the notice of
such removal whether or not this option is vested or unvested on such date.

 

c)                                      In
the event that Optionee ceases to be an employee of the Company for any reason
other than death, Disability or removal for Cause (including by Retirement,
termination by voluntary resignation or removal without Cause), Optionee shall
have the right to exercise this option to the extent that Optionee was entitled
to exercise such option on the date Optionee ceased to be an employee; provided,
however, that such exercise must be made on or before the earlier of (i) the
60th day following the date Optionee ceases to be an employee or (ii) the
Expiration Date.

 

d)                                     In
the event of the Disability or death of Optionee, Optionee or Optionee’s estate
shall have the privilege of exercising this option to the extent that Optionee
was entitled to exercise such option on the date of Optionee’s Disability or death;
provided, however, that such exercise must be made on or before the earlier of (i) the
180th day following the date of Optionee’s Disability or death or (ii) the
Expiration Date.

 

5.                                       Assignment or Transfer. This option may not be assigned
or transferred and shall be exercisable only by the Optionee during the
Optionee’s lifetime.

 

6.                                       Governing Law. This Agreement shall be governed and
construed in accordance with the laws of the State of Arizona without giving
effect to the principles of conflicts of laws.

 

7.                                       Tax Matters.

 

a)                                      Tax
Treatment. Section 422 of the Internal Revenue Code of 1986, as
amended, provides for advantageous tax treatment upon the disposition of shares
acquired pursuant to an incentive stock option such as you have been granted
herein. Such advantageous treatment is presently only available to the extent
that the value of shares exercisable for the first time by you pursuant to all
your outstanding incentive stock options in the Company does not exceed
$100,000 in any one year, based on the fair market value of the shares on the
date of grant. Accordingly, if the total value of shares vesting under this
stock option and any other incentive stock option granted to you by the Company
exceeds the maximum amount permissible under Section 422 or any successor
statute, this stock option will be treated as an incentive stock option with 

 

2

 

respect to the maximum
number of permissible shares and as a nonqualified stock option with respect to
the balance of shares. There is no assurance that your option will, in fact, be
treated as an incentive stock option.

 

In
addition, in order to qualify presently for incentive stock option treatment,
you must not make a “disqualifying disposition” of shares acquired pursuant to
this stock option within two (2) years from the Grant Date nor within
one (1) year after the shares are transferred to you. Although the
foregoing holding period requirements do not represent a term or condition of
this stock option, you may find that it is in your best interests to
comply with them.

 

Because
the tax effect may vary depending on your personal circumstances,
including any alternative minimum tax treatment, and the tax laws may change
from time to time, it is strongly recommended that you consult with tax counsel
or a tax advisor in order to realize any available tax benefits associated with
this stock option.

 

b)                                     Withholding.
If the exercise of any rights granted in this Agreement of the disposition of
shares following exercise of such rights results in the Optionee’s realization
of income which for federal, state or local income tax purposes is, in the
opinion of the Company, subject to withholding of tax, the Optionee will pay to
the Company an amount equal to such withholding tax (or the Company may withhold
such amount from any compensation due the Optionee) prior to delivery of
certificates evidencing the shares of Common Stock purchased.

 

8.                                       Not an Employment Agreement. This
Agreement is not an assurance of continued engagement as a director for any
period of time, including any period of time necessary to permit vesting of
your option under Paragraph 2(b) above.

 

 

IN
WITNESS WHEREOF, the Company and the Optionee have executed this Incentive
Stock Option Agreement effective on the first date mentioned above.

 

	
  THE COMPANY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  POORE BROTHERS, INC.

  	
   

  	
  OPTIONEE:

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
  Print Name:

  	
   

  	
   

  
									

 

3

 

EXHIBIT A

 

Form of Notice

 

POORE BROTHERS, INC.

 

NOTIFICATION OF EMPLOYEE

STOCK OPTION EXERCISE

 

I,                                     ,
hereby notify the Senior Vice President & Chief Financial Officer of
Poore Brothers, Inc. (the “Company”) of my request to exercise                 
(quantity) options granted on                         
at the option price of $           
per share under the terms and conditions of the Poore Brothers, Inc. 2005
Equity Incentive Plan.

 

A check in the amount of
$                       ,
payable to Poore Brothers, Inc., is attached.

 

Please register these
shares as follows and mail the certificate to the address below:

 

Name:

Address:

City/State/Zip:

 

I understand that the
Company may be entitled to a tax deduction in certain circumstances if I
decide to sell the underlying shares. I hereby agree to provide the Company
with information regarding the sale of these shares, including date of sale,
sales price per share, the number of shares sold and such other information
that they may reasonably require, or do hereby authorize my broker to
provide such information directly to the Company.

 

 

	
   

  	
   

  	
  ______-______-_______

  	
   

  
	
  Employee Name
  (please print)

  	
  Social Security
  Number

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Employee
  Signature

  	
   

  	
  Date

  	
   

  

 

 

 

Stock Option exercise
request received and accepted on behalf of Poore Brothers, Inc.:

 

 

 

	
  By:

  	
   

  	
  Date

  	
   

  

 

A-1Exhibit 10.37

 

Execution Copy

 

Amendment No. 1 to Executive Employment
Agreement

 

WHEREAS, John R. DePaul (“Executive”) entered into that certain
Executive Employment Agreement with Von Hoffmann Corporation, a Delaware
corporation (the “Company”), dated as of September 5, 2003 (the “Original
Agreement” and as amended hereby, the “Agreement”); and

 

WHEREAS, the Company and Executive desire to amend the Agreement to extend
the term, and in consideration make certain other modifications to reflect
changes in Executive’s role with and compensation by the Company; and

 

WHEREAS, the Company is an indirect wholly owned subsidiary of Visant
Corporation, a Delaware corporation (formerly, Jostens IH Corp., “Visant”).

 

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

 

1.             Capitalized
terms used herein without definition shall have the meaning ascribed to such
terms in the Agreement.

 

2.             The
modifications in this Amendment No. 1 shall be effective as of March 1, 2005, subject
to the execution of this Amendment No. 1 by both parties.

 

3.             Section
2.2(a) is hereby deleted in its entirety and replaced with the following:

 

“Commencing as of March 1, 2005 and continuing through the Employment
Period, Executive shall serve as an Executive Vice President of the Company.
Executive will be primarily responsible for all sales activity for the Company,
including its Lehigh Lithographers division, but excluding the Lehigh Direct
division. Executive shall report to the Chief Executive Officer of Visant or to
such other person as he shall designate from time to time. Executive shall
perform such other duties as may be requested from time to time by the Chief
Executive Officer of Visant (or such other person as Executive shall report to
from time to time).”

 

All references in the Agreement to “the Chief Executive Officer of the
Company” shall be to the “Chief Executive Officer of Visant” or to such other
person as the Chief Executive Officer of Visant shall designate from time to
time.

 

Section 2.2(c) is amended to acknowledge that the Executive’s duties
will require substantial travel. Such Section is amended to apply during the
Employment Period as extended by this Amendment No. 1.

 

4.             Effective
as of March 1, 2005: Section 2.3(a) is amended to reflect that Executive’s base
salary shall be $330,000 per annum. Section 2.3(b) is deleted in its entirety
and the reference “[Intentionally Deleted.]” is added in lieu thereof.

 

 

All references in the Original Agreement to the “Bonus” are hereby
deleted. Section 2.3(c) is deleted in its entirety and replaced with the
following:

 

“Commencing with the 2005 fiscal year, Executive shall be eligible to
participate in the Company’s annual management bonus plan at a target level of
50% of Executive’s Base Salary (with maximum opportunity equal to 75%
(increasing in linear progression for performance above 100% up to 150%) of Executive’s
Base Salary based on the achievement of certain stretch targets established by
the Board of Directors of Visant) (the “Performance Bonus”). The Performance
Bonus shall be paid only if certain financial and performance targets, to be
established by the Chief Executive Officer of Visant and the Board of Directors
of Visant from time to time, are met. The Performance Bonus shall be payable
following the availability of audited financial statements for the consolidated
Visant group of companies. Executive’s participation will be subject to and in
accordance with the terms of the Company’s annual management bonus plan,
including the requirement for the Company to meet its consolidated EBITDA goal
and any requirement that Executive remain employed to receive any amount
payable under the bonus plan.”

 

5.             Section
2.3(d)(ii)(B) is deleted in its entirety. Executive acknowledges that he has
been provided the opportunity to invest in Visant Holding Corp. and received
certain options to purchase the Class A Common Stock of Visant Holding Corp.
The terms of such investment and the stock options are governed by such
documents as separately entered into by Executive and Visant Holding Corp.

 

6.             Section
2.4(a) is deleted in its entirety and replaced with the following:

 

“The Employment Period shall end on 11:59 p.m. on December 31, 2008,
subject to earlier termination (i) by reason of Executive’s death, (ii) by
action of the Company or Holdings, with or without Cause, or (iii) upon
Executive’s voluntary resignation or for any other reason not set forth above.”

 

7.             The
exception clause in Section 2.4(d) is deleted and replaced with the following: “except
that Executive shall be entitled as severance consideration in exchange for the
execution of a severance agreement and release of claims as provided below, to
(i) an amount in cash equivalent to $330,000 (gross) as salary continuation,
which shall be payable as the Company shall determine in up to twelve (12)
equal monthly payments of $27,500 (gross) each, less applicable withholding,
and (ii) the Executive (and those of his dependents enrolled at the time of his
separation) will have the right to continue health and dental care coverage subject
to and in accordance with the terms and conditions of COBRA (as may be amended
from time to time), and during the period that Executive is receiving salary
continuation under (i) the Company will pay the premiums for such coverage over
and above the then active employee contribution amount for such coverage, provided
that in any event the Company’s payment for such health and dental benefits
will cease on the date Executive otherwise becomes eligible to

 

 

obtain substantially comparable health benefits elsewhere (the “Benefits
Period”). Such continued coverage will be subject to the terms and conditions
of such benefit plans as apply to active employees generally, including the
Company’s right to amend and terminate such plans. Following the Benefits
Period Executive and his dependents, to the extent they are enrolled in the
plans at the conclusion of the Benefits Period, will have the right to
continued coverage pursuant to and in accordance with COBRA for the remainder
of the applicable COBRA period (the COBRA period will begin upon the qualifying
event of Executive’s loss of employment with the Company), subject to, among
other things, the payment of premiums by Executive or the covered dependents.” In
addition, the last sentence of Section 2.4(d) is revised to read as
follows:  “Any payments to be made to
Executive pursuant to this Section 2.4(d) shall be made in monthly installments
on the payment dates on which Executive’s Base Salary would have otherwise been
paid if the Employment Period had continued, and as of the date of the final
such payment none of the Company, Holding, or any other member of the Company
Group shall have any further obligation to Executive pursuant to this Section
2.4 or otherwise.”

 

8.             Except
as amended above, Section 2.4(d) remains as written in the Original Agreement.

 

9.             The
following is added as a new Section 2.4(h): “The severance and other
consideration given pursuant to Section 2.4(d), shall be given in consideration
for the execution and delivery by the Executive of a severance agreement and release
in form and substance reasonably satisfactory to the Company and pursuant to
which the Executive releases the Company, the Company Group and each affiliate and
agent of the Company Group, and each stockholder, officer, director and
employee thereof, from any and all claims the Executive may have against any of
them by reason of his employment or termination of such employment.”

 

10.           References
to “Company Group” shall mean, collectively, Visant Corporation, Holdings, the
Company and the respective Subsidiaries, successors and assigns, excluding for
all purposes, the Lehigh Direct operations. Section 2.7(a) is amended by adding
the following in the second sentence thereof directly before “as such
businesses exist”: “with respect to which Executive has been primarily involved”.

 

11.           Section
3.3 of the Original Agreement is hereby amended to provide that notices to the
Company or Holding shall be sent to:

 

Visant Corporation

One Byram Brook Place,  Suite 202

Armonk, New York 10504

Attention: General Counsel

Facsimile: 914-595-8237

 

 

Notices to the Executive shall be sent to:

 

John R. DePaul

 

12.           Each
party hereby acknowledges and agrees that except as expressly amended hereby
the terms and conditions of the Original Agreement are ratified and confirmed
and remain in full force and effect. The Agreement supersedes all prior
discussions or writings on the express subject matter hereof (the employment of
Executive).

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment No.
1 to Executive Employment Agreement as of this 1st day of April,
2005.

 

VON HOFFMANN CORPORATION

 

	
  By:

  	
  /s/ Marc L. Reisch

  	
   

  
	
   

  
	
   

  
	
   

  	
  /s/ John R. DePaul

  	
   

  
	
   

  	
   John
  R. DePaul

  	
   

  

 

ACKNOWLEDGED:

 

VON HOFFMANN HOLDINGS INC.

 

	
  By:

  	
  /s/ Marie D. Hlavaty

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]