Document:

Exhibit 10.21

 

EXECUTION COPY

 

SALE PARTICIPATION AGREEMENT

 

October 4,
2004

 

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 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 (x) 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 (y) Restricted Stock (as
defined in the Stockholder’s Agreement) 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.  If the number of shares of Common
Stock that the Management Stockholder is permitted to include in a Request
pursuant to this Section 2(a) is limited by the fact that the Options are
not exercisable at the time of such Proposed Sale, then at such time as the
Options become exercisable (in whole or in part) and at any time thereafter,
the Management Stockholder shall be entitled to either (x) include in a
subsequent Proposed Sale or (y) immediately and at any time after such Options
become so exercisable, sell to any person or entity (subject to all applicable
securities laws), such additional number of shares of Common Stock as the
Management Stockholder could have otherwise sold at the time of the prior
Proposed Sale.

 

(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

 

2

 

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
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

 

3

 

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 Restricted Stock (as defined in the Stockholder’s Agreement);
second, any shares of Common Stock then held by the Management Stockholder
Entities that constitutes Purchased Stock (as defined in the Stockholder’s
Agreement); and third, 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 Paragraph 3 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.

 

4

 

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 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.

 

5

 

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:

 

Jostens Holding Corp.

c/o Jostens, Inc.

5501 Norman Center Drive

Minneapolis, MN 55437

Attention:  General Counsel

 

with a copy to:

 

Simpson Thacher & Bartlett LLP

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

 

6

 

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]

 

7

 

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:

  	
  /s/ Joseph Bae

  
	
   

  	
   

  	
  Name: Joseph Bae

  
	
   

  	
   

  	
  Title: Vice President and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ MERCHANT BANKING PARTNERS III, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  
	
   

  	
   

  	
  Name: George R. Hornig

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III-1, C.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  
	
   

  	
   

  	
  Name: George R. Hornig

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III-2, C.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  
	
   

  	
   

  	
  Name: George R. Hornig

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DLJ OFFSHORE PARTNERS III, C.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  
	
   

  	
   

  	
  Name: George R. Hornig

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 

	
   

  	
  DLJ MB PARTNERS III GmbH & Co. KG

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  
	
   

  	
   

  	
  Name: George R. Hornig

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MILLENNIUM PARTNERS II, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  
	
   

  	
   

  	
  Name: George R. Hornig

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MBP III PLAN INVESTORS, L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George R. Hornig

  
	
   

  	
   

  	
  Name: George R. Hornig

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted and agreed
  this        day of

  

                2004.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ 
  Marc Reisch

  	
   

  	
   

  
	
  Marc ReischExhibit
10.22

 

EXECUTION COPY

 

STOCK OPTION
AGREEMENT

(Marc Reisch)

 

THIS AGREEMENT, dated as of October 4, 2004
(the “Grant Date”) is made by and between 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 another Unaffiliated Person; if and
only if any such event listed in clauses (i) through (iii)
above results in the inability of the Investors, or any member or members of
the Investors, to designate or elect a majority of the Board (or the board of
directors of the resulting entity or its parent company).  For purposes of this definition, the term
“Unaffiliated Person” means any Person or Group who is not (x) an Investor
or any member of the Investors, (y) 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 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,

 

2

 

(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

 

(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. 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 October 4,
2004 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 2004 Stock Option Plan
for Key Employees of Jostens 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 of the number of shares set
forth on the signature page hereof of its Common Stock upon the

 

4

 

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 $96.10401 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 9,104 of the shares subject to the Time Option on December 31,
2004.  The Time Option shall become
vested and exercisable with respect to the remaining 47,345 shares subject to
the Time Option (the “Scheduled Vesting 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

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2005

  	
   

  	
  25

  	
  %

  
	
  December 31, 2006

  	
   

  	
  50

  	
  %

  
	
  December 31, 2007

  	
   

  	
  75

  	
  %

  
	
  December 31, 2008

  	
   

  	
  90

  	
  %

  
	
  December 31, 2009

  	
   

  	
  100

  	
  %

  

 

(ii)           Performance
Option.

 

(A)                  The Performance Option shall
become vested and exercisable as to 100% of the shares subject to such Option
on December 31, 2012; 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 2005 through 2009 set forth in the
KKR/Reisch Financial Plan attached hereto as Schedule A (the “KKR/R
Plan”) 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

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2005

  	
   

  	
  25

  	
  %

  
	
  December 31, 2006

  	
   

  	
  50

  	
  %

  
	
  December 31, 2007

  	
   

  	
  75

  	
  %

  
	
  December 31, 2008

  	
   

  	
  90

  	
  %

  
	
  December 31, 2009

  	
   

  	
  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.

 

6

 

(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 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)(A) above or on a “catch-up” basis subsequently as provided in
Section 3.1(a)(ii)(B) above) 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 is 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”).

 

7

 

(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) 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

 

Notwithstanding
anything set forth in this Section 3.2 to the contrary, in the event that the
Performance Option becomes vested and exercisable in accordance with Section
3.1(a)(ii)(B), the Option shall not be deemed to have expired until the later
of (i) the date on which the Option would otherwise expire pursuant to Section
3.2(b), (d) or (e), as applicable, or (ii) the tenth (10th) business
day immediately following the applicable Determination Date.

 

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

 

9

 

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;

 

(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.

 

	
   

  	
  JOSTENS HOLDING CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Tayeh

  	
   

  
	
   

  	
   

  	
  David A. Tayeh

  
	
   

  	
  Its:

  	
  Chief Financial Officer

  	
   

  

 

 

	
   

  	
   

  	
  OPTIONEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Marc Reisch

  	
   

  
	
   

  	
   

  	
  Marc Reisch

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  21 Trails
  End

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Chappaqua,
  NY 10514

  	
   

  
	
   

  	
   

  	
  Address

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

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

  	
   

  	
  56,449

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

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

  	
   

  	
  71,017

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base Price:

  	
   

  	
  $

  	
  96.10401

  	
  per share

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
  October 4, 2004

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