Document:

Exhibit 10.2

 

EXECUTION COPY

 

US GUARANTEE

 

US GUARANTEE (this “Guarantee”) dated as of October 4, 2004,
made among JOSTENS SECONDARY HOLDINGS CORP. (“Holdings”), each of the
subsidiaries of JOSTENS IH CORP., a Delaware corporation (the “Borrower”),
listed on Annex A hereto (each such subsidiary individually, a “Subsidiary
Guarantor” and, collectively, the “Subsidiary Guarantors”; the
Subsidiary Guarantors and Holdings are referred to collectively as “Guarantors”)
and CREDIT SUISSE FIRST BOSTON, as administrative agent (in such capacity, the “Administrative
Agent”) for the lenders (the “Lenders”) from time to time parties to
the CREDIT AGREEMENT dated as of October 4, 2004, among the Borrower, JOSTENS
CANADA LTD., a Manitoba corporation (the “Canadian Borrower” and,
together with the Borrower, the “Borrowers”), Holdings, the Lenders, the
Administrative Agent and CREDIT SUISSE FIRST BOSTON TORONTO BRANCH, as Canadian
administrative agent (in such capacity, the “Canadian Administrative Agent”).

 

W I T N E S S E T H:

 

WHEREAS,
(a) pursuant to the Credit Agreement, the Lenders have severally agreed to
make Loans to the Borrowers and the Letter of Credit Issuers have agreed to
issue Letters of Credit for the account of the Borrowers and their Subsidiaries
(collectively, the “Extensions of Credit”) upon the terms and subject to
the conditions set forth therein and (b) one or more Lenders or affiliates
of Lenders may from time to time enter into Hedge Agreements with the
Borrowers;

 

WHEREAS, each
Subsidiary Guarantor is a Domestic Subsidiary of the Borrower;

 

WHEREAS, the
proceeds of the Extensions of Credit will be used in part to enable the
Borrowers to make valuable transfers to the Subsidiary Guarantors in connection
with the operation of their respective businesses;

 

WHEREAS, each
Guarantor acknowledges that it will derive substantial direct and indirect
benefit from the making of the Extensions of Credit; and

 

WHEREAS, it is
a condition precedent to the obligation of the Lenders and the Letter of Credit
Issuers to make their respective Extensions of Credit to the Borrowers under
the Credit Agreement that the Guarantors shall have executed and delivered this
Guarantee to the Administrative Agent for the ratable benefit of the Secured
Parties;

 

NOW,
THEREFORE, in consideration of the premises and to induce the Administrative
Agent, the Canadian Administrative Agent, the Lenders and the Letter of Credit
Issuers to enter into the Credit Agreement and to induce the Lenders and the
Letter of Credit Issuers to make their respective Extensions of Credit to the
Borrowers under the Credit Agreement and to induce one or more Lenders or
affiliates of Lenders to enter into Hedge

 

 

Agreements with the Borrowers,
the Guarantors hereby agree with the Administrative Agent, for the ratable
benefit of the Secured Parties, as follows:

 

1.                                       Defined
Terms.

 

(a)                                  Unless otherwise
defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement.

 

(b)                                 As used herein, the
term “Obligations” shall mean the collective reference to (i) the
due and punctual payment of (x) the principal of and premium, if any, and
interest at the applicable rate provided in the Credit Agreement (including
interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (y) each payment required to be made by the Borrowers under the
Credit Agreement in respect of any Letter of Credit, when and as due, including
payments in respect of reimbursement of disbursements, interest thereon and
obligations to provide cash collateral, and (z) all other monetary
obligations, including fees, costs, expenses and indemnities, whether primary,
secondary, direct, contingent, fixed or otherwise (including monetary
obligations incurred during the pendency of any bankruptcy, insolvency, receivership
or other similar proceeding, regardless of whether allowed or allowable in such
proceeding), of the Borrowers or any other Credit Party to any of the Secured
Parties under the Credit Agreement and the other Credit Documents,
(ii) the due and punctual performance of all covenants, agreements,
obligations and liabilities of the Borrowers under or pursuant to the Credit
Agreement and the other Credit Documents, (iii) the due and punctual
payment and performance of all the covenants, agreements, obligations and
liabilities of each other Credit Party under or pursuant to this Guarantee or
the other Credit Documents, (iv) the due and punctual payment and
performance of all obligations of each Credit Party under each Hedge Agreement
that (x) is in effect on the Closing Date with a counterparty that is a
Lender or an affiliate of a Lender as of the Closing Date or (y) is
entered into after the Closing Date with any counterparty that is a Lender or
an affiliate of a Lender at the time such Hedge Agreement is entered into and
(v) the due and punctual payment and performance of all obligations in
respect of overdrafts and related liabilities owed to the Administrative Agent
or its affiliates arising from or in connection with treasury, depositary or
cash management services or in connection with any automated clearinghouse
transfer of funds.

 

(c)                                  As used herein, the
term “Secured Parties” shall mean (i) the Lenders, (ii) the
Letter of Credit Issuers, (iii) the Swingline Lender, (iv) the
Administrative Agent, (v) the Canadian Administrative Agent, (vi) the
other Agents, (vii) each counterparty to a Hedge Agreement the obligations
under which constitute Obligations, (viii) the beneficiaries of each
indemnification obligation undertaken by any Credit Party under any Credit
Document and (ix) any successors, indorsees, transferees and assigns of
each of the foregoing.

 

(d)                                 References to “Lenders”
in this Guarantee shall be deemed to include affiliates of Lenders that may
from time to time enter into Hedge Agreements with the Borrowers.

 

(e)                                  The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Guarantee shall
refer to this Guarantee as a whole and not to any

 

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particular provision of this Guarantee, and Section references are to
Sections of this Guarantee unless otherwise specified.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.

 

(f)                                    The meanings given
to terms defined herein shall be equally applicable to both the singular and
plural forms of such terms.

 

2.                                       Guarantee.

 

(a)                                  Subject to the
provisions of Section 2(b), each of the Guarantors hereby, jointly and
severally, unconditionally and irrevocably, guarantees, as primary obligor and
not merely as surety, to the Administrative Agent, for the ratable benefit of
the Secured Parties, the prompt and complete payment and performance when due
(whether at the stated maturity, by acceleration or otherwise) of the Obligations.

 

(b)                                 Anything herein or in
any other Credit Document to the contrary notwithstanding, the maximum
liability of each Guarantor hereunder and under the other Credit Documents
shall in no event exceed the amount that can be guaranteed by such Guarantor
under applicable laws relating to the insolvency of debtors.

 

(c)                                  Each Guarantor
further agrees to pay any and all expenses (including all fees and
disbursements of counsel) that may be paid or incurred by the Administrative
Agent or any other Secured Party in enforcing, or obtaining advice of counsel
in respect of, any rights with respect to, or collecting, any or all of the
Obligations and/or enforcing any rights with respect to, or collecting against,
such Guarantor under this Guarantee.

 

(d)                                 Each Guarantor agrees
that the Obligations may at any time and from time to time exceed the amount of
the liability of such Guarantor hereunder without impairing this Guarantee or
affecting the rights and remedies of the Administrative Agent or any other
Secured Party hereunder.

 

(e)                                  No payment or
payments made by the Borrowers, any of the Guarantors, any other guarantor or
any other Person or received or collected by the Administrative Agent or any
other Secured Party from the Borrowers, any of the Guarantors, any other guarantor
or any other Person by virtue of any action or proceeding or any set-off or
appropriation or application at any time or from time to time in reduction of
or in payment of the Obligations shall be deemed to modify, reduce, release or
otherwise affect the liability of any Guarantor hereunder, which shall,
notwithstanding any such payment or payments other than payments made by such
Guarantor in respect of the Obligations or payments received or collected from
such Guarantor in respect of the Obligations, remain liable for the Obligations
up to the maximum liability of such Guarantor hereunder until the Obligations
under the Credit Documents are paid in full, the Commitments are terminated and
no Letters of Credit shall be outstanding.

 

(f)                                    Each Guarantor
agrees that whenever, at any time, or from time to time, it shall make any
payment to the Administrative Agent or any other Secured Party on account of
its liability hereunder, it will notify the Administrative Agent in writing
that such payment is made under this Guarantee for such purpose.

 

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3.                                       Right of
Contribution.  Each Guarantor hereby
agrees that to the extent that a Guarantor shall have paid more than its
proportionate share of any payment made hereunder, such Guarantor shall be
entitled to seek and receive contribution from and against any other Guarantor
hereunder who has not paid its proportionate share of such payment.  Each Guarantor’s right of contribution shall
be subject to the terms and conditions of Section 5 hereof.  The provisions of this Section 3 shall
in no respect limit the obligations and liabilities of any Guarantor to the
Administrative Agent and the other Secured Parties, and each Guarantor shall
remain liable to the Administrative Agent and the other Secured Parties for the
full amount guaranteed by such Guarantor hereunder.

 

4.                                       Right of
Set-off.  In addition to any rights
and remedies of the Secured Parties provided by law, each Guarantor hereby
irrevocably authorizes each Secured Party at any time and from time to time
following the occurrence and during the continuance of an Event of Default
without notice to such Guarantor or any other Guarantor, any such notice being
expressly waived by each Guarantor, upon any amount becoming due and payable by
such Guarantor hereunder (whether at stated maturity, by acceleration or
otherwise), to set-off and appropriate and apply against such amount any and
all deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Secured Party to or for the credit
or the account of such Guarantor.  Each
Secured Party shall notify such Guarantor promptly of any such set-off and the
appropriation and application made by such Secured Party, provided that
the failure to give such notice shall not affect the validity of such set-off
and application.

 

5.                                       No
Subrogation.  Notwithstanding any
payment or payments made by any of the Guarantors hereunder or any set-off or
appropriation and application of funds of any of the Guarantors by the
Administrative Agent or any other Secured Party, no Guarantor shall be entitled
to be subrogated to any of the rights of the Administrative Agent or any other
Secured Party against the Borrowers or any other Guarantor or any collateral
security or guarantee or right of offset held by the Administrative Agent or
any other Secured Party for the payment of the Obligations, nor shall any
Guarantor seek or be entitled to seek any contribution or reimbursement from
the Borrowers or any other Guarantor in respect of payments made by such
Guarantor hereunder, until all amounts owing to the Administrative Agent and
the other Secured Parties by the Credit Parties on account of the Obligations
under the Credit Documents are paid in full, the Commitments are terminated and
no Letters of Credit shall be outstanding. 
If any amount shall be paid to any Guarantor on account of such
subrogation rights at any time when all the Obligations shall not have been
paid in full, such amount shall be held by such Guarantor in trust for the
Administrative Agent and the other Secured Parties, segregated from other funds
of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be
turned over to the Administrative Agent in the exact form received by such
Guarantor (duly indorsed by such Guarantor to the Administrative Agent, if
required), to be applied against the Obligations, whether due or to become due,
in such order as the Administrative Agent may determine.

 

6.                                       Amendments,
etc. with Respect to the Obligations; Waiver of Rights.  Each Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any
Guarantor and without notice to or further assent by any Guarantor,
(a) any demand for payment of any of the Obligations made by the
Administrative Agent or any other 

 

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Secured Party may be rescinded by such party and any of the Obligations
continued, (b) the Obligations, or the liability of any other party upon
or for any part thereof, or any collateral security or guarantee therefor or
right of offset with respect thereto, may, from time to time, in whole or in
part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Administrative Agent or any other
Secured Party, (c) the Credit Agreement, the other Credit Documents, the
Letters of Credit and any other documents executed and delivered in connection
therewith and the Hedge Agreements and any other documents executed and
delivered in connection therewith and any documents entered into with the Administrative
Agent or any of its affiliates in connection with treasury, depositary or cash
management services or in connection with any automated clearinghouse transfer
of funds may be amended, modified, supplemented or terminated, in whole or in
part, as the Administrative Agent (or the Required Lenders, as the case may be,
or, in the case of any Hedge Agreement or documents entered into with the
Administrative Agent or any of its affiliates in connection with treasury,
depositary or cash management services or in connection with any automated
clearinghouse transfer of funds, the party thereto) may deem advisable from
time to time, and (d) any collateral security, guarantee or right of offset at
any time held by the Administrative Agent or any other Secured Party for the
payment of the Obligations may be sold, exchanged, waived, surrendered or
released.  Neither the Administrative
Agent nor any other Secured Party shall have any obligation to protect, secure,
perfect or insure any Lien at any time held by it as security for the
Obligations or for this Guarantee or any property subject thereto.  When making any demand hereunder against any
Guarantor, the Administrative Agent or any other Secured Party may, but shall be
under no obligation to, make a similar demand on the Borrowers or any Guarantor
or guarantor, and any failure by the Administrative Agent or any other Secured
Party to make any such demand or to collect any payments from the Borrowers or
any Guarantor or guarantor or any release of the Borrowers or any Guarantor or
guarantor shall not relieve any Guarantor in respect of which a demand or
collection is not made or any Guarantor not so released of its several
obligations or liabilities hereunder, and shall not impair or affect the rights
and remedies, express or implied, or as a matter of law, of the Administrative
Agent or any other Secured Party against any Guarantor.  For the purposes hereof, “demand” shall
include the commencement and continuance of any legal proceedings.

 

7.                                       Guarantee
Absolute and Unconditional.  Each
Guarantor waives any and all notice of the creation, contraction, incurrence,
renewal, extension, amendment, waiver or accrual of any of the Obligations, and
notice of or proof of reliance by the Administrative Agent or any other Secured
Party upon this Guarantee or acceptance of this Guarantee, and the Obligations
or any of them, shall conclusively be deemed to have been created, contracted
or incurred, or renewed, extended, amended, waived or accrued, in reliance upon
this Guarantee; and all dealings between the Borrowers and any of the
Guarantors, on the one hand, and the Administrative Agent and the other Secured
Parties, on the other hand, likewise shall be conclusively presumed to have
been had or consummated in reliance upon this Guarantee.  Each Guarantor waives diligence, presentment,
protest, demand for payment and notice of default or nonpayment to or upon the
Borrowers or any of the Guarantors with respect to the Obligations.  Each Guarantor understands and agrees that this
Guarantee shall be construed as a continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity, regularity or
enforceability of the Credit Agreement, any other Credit Document, any Letter
of Credit or any Hedge Agreement, any of the Obligations or any other
collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Administrative

 

5

 

Agent or any other Secured Party, (b) any defense, set-off or
counterclaim (other than a defense of payment or performance) that may at any
time be available to or be asserted by the Borrowers against the Administrative
Agent or any other Secured Party or (c) any other circumstance whatsoever
(with or without notice to or knowledge of the Borrowers or such Guarantor)
that constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrowers for the Obligations, or of such Guarantor under this
Guarantee, in bankruptcy or in any other instance.  When pursuing its rights and remedies
hereunder against any Guarantor, the Administrative Agent and any other Secured
Party may, but shall be under no obligation to, pursue such rights and remedies
as it may have against the Borrowers or any other Person or against any
collateral security or guarantee for the Obligations or any right of offset
with respect thereto, and any failure by the Administrative Agent or any other
Secured Party to pursue such other rights or remedies or to collect any
payments from the Borrowers or any such other Person or to realize upon any
such collateral security or guarantee or to exercise any such right of offset,
or any release of the Borrowers or any such other Person or any such collateral
security, guarantee or right of offset, shall not relieve such Guarantor of any
liability hereunder, and shall not impair or affect the rights and remedies,
whether express, implied or available as a matter of law, of the Administrative
Agent and the other Secured Parties against such Guarantor.  This Guarantee shall remain in full force and
effect and be binding in accordance with and to the extent of its terms upon
each Guarantor and the successors and assigns thereof, and shall inure to the
benefit of the Administrative Agent and the other Secured Parties, and their
respective successors, indorsees, transferees and assigns, until all the
Obligations under the Credit Documents shall have been satisfied by payment in
full, the Commitments shall be terminated and no Letters of Credit shall be
outstanding, notwithstanding that from time to time during the term of the
Credit Agreement and any Hedge Agreement the Credit Parties may be free from
any Obligations.  A Guarantor shall
automatically be released from its obligations hereunder and the Guarantee of
such Guarantor shall be automatically released upon the consummation of any
transaction permitted by the Credit Agreement as a result of which such
Guarantor ceases to be a Domestic Subsidiary of the Borrower.  In connection with any such release, the
Administrative Agent shall execute and deliver to any Guarantor, at such
Guarantor’s expense, all documents that such Guarantor shall reasonably request
to evidence such termination or release. 
Any execution and delivery of documents pursuant to the preceding
sentence of this Section 7 shall be without recourse to or warranty by the
Administrative Agent.

 

8.                                       Reinstatement.  This Guarantee shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any of the Obligations is rescinded or must otherwise be
restored or returned by the Administrative Agent or any other Secured Party
upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
the Borrowers or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Borrowers or any Guarantor or any substantial part of its property, or
otherwise, all as though such payments had not been made.

 

9.                                       Payments.  Each Guarantor hereby guarantees that
payments hereunder will be paid to the Administrative Agent without set-off or
counterclaim in Dollars at the Administrative Agent’s Office.

 

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10.                                 Representations and
Warranties; Covenants.

 

(a)                                  Each Guarantor hereby
represents and warrants that the representations and warranties set forth in
Section 8 of the Credit Agreement as they relate to such Guarantor or in
the other Credit Documents to which such Guarantor is a party, each of which is
hereby incorporated herein by reference, are true and correct, and the
Administrative Agent and each other Secured Party shall be entitled to rely on
each of them as if they were fully set forth herein.

 

(b)                                 Each Guarantor hereby
covenants and agrees with the Administrative Agent and each other Secured Party
that, from and after the date of this Guarantee until the Obligations under the
Credit Documents are paid in full, the Commitments are terminated and no Letter
of Credit remains outstanding, such Guarantor shall take, or shall refrain from
taking, as the case may be, all actions that are necessary to be taken or not
taken so that no violation of any provision, covenant or agreement contained in
Section 9 or 10 of the Credit Agreement, and so that no Default or Event
of Default, is caused by any act or failure to act of such Guarantor or any of
its Subsidiaries.

 

11.                                 Authority of Agent.  Each Guarantor acknowledges that the rights and
responsibilities of the Administrative Agent under this Guarantee with respect
to any action taken by the Administrative Agent or the exercise or non-exercise
by the Administrative Agent of any option, right, request, judgment or other
right or remedy provided for herein or resulting or arising out of this
Guarantee shall, as between the Administrative Agent and the other Secured
Parties, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and such Guarantor, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Secured Parties with full
and valid authority so to act or refrain from acting, and no Guarantor shall be
under any obligation, or entitlement, to make any inquiry respecting such
authority.

 

12.                                 Notices.  All notices, requests and demands pursuant
hereto shall be made in accordance with Section 13.2 of the Credit
Agreement.  All communications and notices
hereunder to each Guarantor shall be given to it in care of the Borrower at the
Borrower’s address set forth in Section 13.2 of the Credit Agreement.

 

13.                                 Counterparts.  This Guarantee may be executed by one or more
of the parties to this Guarantee on any number of separate counterparts
(including by facsimile or other electronic transmission), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.  A set of the copies of this
Guarantee signed by all the parties shall be lodged with the Administrative
Agent and the Borrower.

 

14.                                 Severability.  Any provision of this Guarantee that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

 

15.                                 Integration.  This Guarantee represents the agreement of
each Guarantor and the Administrative Agent with respect to the subject matter
hereof, and there are no

 

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promises, undertakings, representations or warranties by the
Administrative Agent or any other Secured Party relative to the subject matter
hereof not expressly set forth or referred to herein or in the other Credit
Documents.

 

16.                                 Amendments in
Writing; No Waiver; Cumulative Remedies. 

 

(a)                                  None of the terms or
provisions of this Guarantee may be waived, amended, supplemented or otherwise
modified except by a written instrument executed by the affected Guarantor(s)
and the Administrative Agent in accordance with Section 13.1 of the Credit
Agreement.

 

(b)                                 Neither the
Administrative Agent nor any other Secured Party shall by any act (except by a
written instrument pursuant to Section 16(a) hereof), delay, indulgence,
omission or otherwise be deemed to have waived any right or remedy hereunder or
to have acquiesced in any Default or Event of Default or in any breach of any
of the terms and conditions hereof.  No
failure to exercise, nor any delay in exercising, on the part of the
Administrative Agent or any other Secured Party, any right, power or privilege
hereunder shall operate as a waiver thereof. 
No single or partial exercise of any right, power or privilege hereunder
shall preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.  A
waiver by the Administrative Agent or any other Secured Party of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy that the Administrative Agent or any Secured Party would
otherwise have on any future occasion.

 

(c)                                  The rights, remedies,
powers and privileges herein provided are cumulative, may be exercised singly
or concurrently and are not exclusive of any other rights or remedies provided
by law.

 

17.                                 Section Headings.  The Section headings used in this Guarantee
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

 

18.                                 Successors and
Assigns.  This Guarantee shall be
binding upon the successors and assigns of each Guarantor and shall inure to
the benefit of the Administrative Agent and the other Secured Parties and their
respective successors and assigns except that no Guarantor may assign, transfer
or delegate any of its rights or obligations under this Guarantee without the
prior written consent of the Administrative Agent or as otherwise permitted by
the Credit Agreement.

 

19.                                 Additional
Guarantors.  Each Subsidiary of the
Borrower that is required to become a party to this Guarantee pursuant to
Section 9.11 of the Credit Agreement shall become a Guarantor, with the same
force and effect as if originally named as a Guarantor herein, for all purposes
of this Guarantee upon execution and delivery by such Subsidiary of a
Supplement in the form of Annex B hereto. 
The execution and delivery of any instrument adding an additional
Guarantor as a party to this Guarantee shall not require the consent of any
other Guarantor hereunder.  The rights
and obligations of each Guarantor hereunder shall remain in full force and
effect notwithstanding the addition of any new Guarantor as a party to this
Guarantee.

 

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20.                                 WAIVER OF JURY TRIAL.  EACH GUARANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS GUARANTEE, ANY OTHER CREDIT DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

21.                                 Submission to
Jurisdiction; Waivers.  Each
Guarantor hereby irrevocably and unconditionally:

 

(a)                                  submits for itself
and its property in any legal action or proceeding relating to this Guarantee
and the other Credit Documents to which it is a party, or for recognition and
enforcement of any judgment in respect thereof, to the non-exclusive general
jurisdiction of the courts of the State of New York, the courts of the United States
of America for the Southern District of New York and appellate courts from
any thereof;

 

(b)                                 consents that any such
action or proceeding may be brought in such courts and waives any objection
that it may now or hereafter have to the venue of any such action or proceeding
in any such court or that such action or proceeding was brought in an
inconvenient court and agrees not to plead or claim the same;

 

(c)                                  agrees that service
of process in any such action or proceeding may be effected by mailing a copy thereof
by registered or certified mail (or any substantially similar form of mail),
postage prepaid, to such Guarantor at its address referred to in
Section 12 or at such other address of which the Administrative Agent
shall have been notified pursuant thereto;

 

(d)                                 agrees that nothing
herein shall affect the right of the Administrative Agent or any other Secured
Party to effect service of process in any other manner permitted by law or
shall limit the right of the Administrative Agent or any other Secured Party to
sue in any other jurisdiction; and

 

(e)                                  waives, to the
maximum extent not prohibited by law, any right it may have to claim or recover
in any legal action or proceeding referred to in this Section 21 any
special, exemplary, punitive or consequential damages.

 

22.                                 GOVERNING LAW.  THIS GUARANTEE AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

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IN WITNESS WHEREOF, each of the
undersigned has caused this Guarantee to be duly executed and delivered by its
duly authorized officer as of the day and year first above written.

 

 

	
   

  	
  JOSTENS
  SECONDARY HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marie
  Hlavaty

  
	
   

  	
   

  	
  Name:  Marie Hlavaty

  
	
   

  	
   

  	
  Title:    Secretary

  
				

 

 

SIGNATURE PAGE TO THE US GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG
JOSTENS SECONDARY HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP.
LISTED ON ANNEX A HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS
CAYMAN ISLANDS BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO
TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
   

  	
  CREDIT
  SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS BRANCH, AS
  ADMINISTRATIVE AGENT

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Robert
  Hetu

  
	
   

  	
   

  	
  Name:  Robert Hetu

  
	
   

  	
   

  	
  Title:    Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Vanessa
  Gomez

  
	
   

  	
   

  	
   Name:  Vanessa Gomez

  
	
   

  	
   

  	
   Title:    Associate

  
				

 

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  JOSTENS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A.
  Tayeh

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David A.
  Tayeh

  
	
   

  	
   

  	
  Title:

  	
  Chief
  Finanical Officer

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  AKI, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth
  A. Budde

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kenneth A.
  Budde

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  AKI HOLDING
  CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth
  A. Budde

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kenneth A.
  Budde

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  AHC I
  ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth
  A. Budde

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kenneth A.
  Budde

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  ANTHOLOGY,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert S. Mathews

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  IST, CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth
  A. Budde

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kenneth A.
  Budde

  
	
   

  	
   

  	
  Title:

  	
  Secretary

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  PRECISION
  OFFSET PRINTING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  THE LEHIGH
  PRESS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  VON HOFFMANN
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

SIGNATURE PAGE
TO THE U.S. GUARANTEE DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS SECONDARY
HOLDINGS CORP., EACH OF THE SUBSIDIARIES OF JOSTENS IH CORP. LISTED ON ANNEX A
HERETO, AND CREDIT SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS
BRANCH, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO TIME PARTIES TO
THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY
  GUARANTORS:

  
	
   

  	
  VON HOFFMANN
  HOLDINGS INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
  Title:

  	
  President

  
					

 

 

ANNEX A TO THE US

GUARANTEE

 

SUBSIDIARY GUARANTORS

 

 

ANNEX B TO THE US

GUARANTEE

 

 

SUPPLEMENT NO. [  ] dated as of
[            ],
200_ to the US GUARANTEE dated as of October 4, 2004 (the “Guarantee”),
among JOSTENS SECONDARY HOLDINGS CORP. (“Holdings”), each of the
subsidiaries of JOSTENS IH CORP., a Delaware corporation (“the Borrower”),
listed on Annex A to the Guarantee (each such subsidiary individually, a “Subsidiary
Guarantor” and, collectively, the “Subsidiary Guarantors”; the Subsidiary
Guarantors and Holdings are referred to collectively as the “Guarantors”)
and CREDIT SUISSE FIRST BOSTON, as administrative agent (in such capacity, the “Administrative
Agent”) for the lenders (the “Lenders”) from time to time parties to
the Credit Agreement referred to below.

 

A.  Reference is made to the CREDIT AGREEMENT
dated as of October 4, 2004, among the Borrower, JOSTENS CANADA LTD., a
Manitoba corporation (the “Canadian Borrower” and, together with the
Borrower, the “Borrowers”), Holdings, the lending institutions from time
to time parties thereto (each a “Lender” and, collectively, the “Lenders”),
the Administrative Agent and CREDIT SUISSE FIRST BOSTON TORONTO BRANCH, as
Canadian administrative agent (in such capacity, the “Canadian
Administrative Agent”).

 

B.  Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Guarantee.

 

C.  The Guarantors have entered into the
Guarantee in order to induce the Administrative Agent, the Canadian
Administrative Agent, the Lenders and the Letter of Credit Issuers to enter
into the Credit Agreement and to induce the Lenders and the Letter of Credit
Issuers to make their respective Extensions of Credit to the Borrowers under
the Credit Agreement and to induce one or more Lenders or affiliates of Lenders
to enter into Hedge Agreements with the Borrowers.  Section 9.11 of the Credit Agreement and
Section 19 of the Guarantee provide that additional Subsidiaries may
become Guarantors under the Guarantee by execution and delivery of an
instrument in the form of this Supplement. 
Each undersigned Subsidiary (each a “New Guarantor”) is executing
this Supplement in accordance with the requirements of the Credit Agreement to
become a Guarantor under the Guarantee in order to induce the Lenders and the
Letter of Credit Issuers to make additional Extensions of Credit and as
consideration for Extensions of Credit previously made.

 

 

Accordingly,
the Administrative Agent and each New Guarantor agrees as follows:

 

SECTION
1.  In accordance with Section 19 of
the Guarantee, each New Guarantor by its signature below becomes a Guarantor
under the Guarantee with the same force and effect as if originally named
therein as a Guarantor and each New Guarantor hereby (a) agrees to all the
terms and provisions of the Guarantee applicable to it as a Guarantor
thereunder and (b) represents and warrants that the representations and
warranties made by it as a Guarantor thereunder are true and correct on and as
of the date hereof.  Each reference to a
Guarantor in the Guarantee shall be deemed to include each New Guarantor.  The Guarantee is hereby incorporated herein
by reference.

 

SECTION
2.  Each New Guarantor represents and
warrants to the Administrative Agent and the other Secured Parties that this
Supplement has been duly authorized, executed and delivered by it and
constitutes its legal, valid and binding obligation, enforceable against it in
accordance with its terms.

 

SECTION
3.  This Supplement may be executed by
one or more of the parties to this Supplement on any number of separate
counterparts (including by facsimile or other electronic transmission), and all
of said counterparts taken together shall be deemed to constitute one and the
same instrument.  A set of the copies of
this Supplement signed by all the parties shall be lodged with the Borrower and
the Administrative Agent.  This
Supplement shall become effective as to each New Guarantor when the
Administrative Agent shall have received counterparts of this Supplement that,
when taken together, bear the signatures of such New Guarantor and the
Administrative Agent.

 

SECTION
4.  Except as expressly supplemented
hereby, the Guarantee shall remain in full force and effect.

 

SECTION 5.  THIS SUPPLEMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

SECTION
6.  Any provision of this Supplement that
is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof and in
the Guarantee, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other
jurisdiction.  The parties hereto shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

 

 

SECTION
7.  All notices, requests and demands
pursuant hereto shall be made in accordance with Section 13.2 of the
Credit Agreement.  All communications and
notices hereunder to each New Guarantor shall be given to it in care of the
Borrower at the Borrower’s address set forth in Section 13.2 of the Credit
Agreement.

 

SECTION
8.  Each New Guarantor agrees to
reimburse the Administrative Agent for its out-of-pocket expenses in connection
with this Supplement, including the fees, disbursements and other charges of
counsel for the Administrative Agent.

 

 

IN WITNESS
WHEREOF, each New Guarantor and the Administrative Agent have duly executed
this Supplement to the Guarantee as of the day and year first above written.

 

	
   

  	
  [NAME OF NEW
  GUARANTOR]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

	
   

  	
  CREDIT
  SUISSE FIRST BOSTON, ACTING THROUGH ITS CAYMAN ISLANDS BRANCH, AS
  ADMINISTRATIVE AGENT

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

 

	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   Title:EXHIBIT 10.3

 

EXECUTION COPY

 

CANADIAN GUARANTEE

 

CANADIAN GUARANTEE (this “Guarantee”) dated as of October 4,
2004, made among JOSTENS IH Corp., a Delaware corporation, (the “Borrower”),
JOSTENS SECONDARY HOLDINGS CORP., a Delaware corporation (“Holdings”),
the subsidiaries of the Borrower listed on Schedule 1 hereto (the “US Subsidiary
Guarantors”, and together with the Borrower, Holdings and any other Person
that may become a party hereto by executing a Supplement to this Guarantee
substantially in the form of Annex A to this Guarantee, collectively, the “Canadian
Guarantors” and each a “Canadian Guarantor”) and CREDIT SUISSE FIRST
BOSTON TORONTO BRANCH, as Canadian administrative agent (in such capacity, the
“Canadian Administrative Agent”) for the lenders (the “Lenders”)
from time to time parties to the CREDIT AGREEMENT dated as of October 4, 2004,
among the Borrower, JOSTENS CANADA LTD., a Manitoba corporation (the “Canadian
Borrower” and, together with the Borrower, the “Borrowers”),
Holdings, the Lenders, CREDIT SUISSE FIRST BOSTON, as administrative agent and
the Canadian Administrative Agent.

 

W I T N E S S E T H:

 

WHEREAS,
(a) pursuant to the Credit Agreement, the Canadian Lenders have severally
agreed to make Loans to the Canadian Borrower and the Canadian Letter of Credit
Issuer has agreed to issue Letters of Credit for the account of the Canadian
Borrower (collectively, the “Extensions of Credit”) upon the terms and
subject to the conditions set forth therein and (b) one or more Lenders or
affiliates of Lenders may from time to time enter into Hedge Agreements with
the Canadian Borrower;

 

WHEREAS, each
Canadian Guarantor acknowledges that it will derive substantial direct and
indirect benefit from the making of the Extensions of Credit; and

 

WHEREAS, it is
a condition precedent to the obligation of the Canadian Lenders and the
Canadian Letter of Credit Issuer to make their respective Extensions of Credit
to the Canadian Borrower under the Credit Agreement that the Canadian
Guarantors shall have executed and delivered this Guarantee to the Canadian
Administrative Agent for the ratable benefit of the Secured Parties;

 

NOW,
THEREFORE, in consideration of the premises and to induce the Administrative
Agent, the Canadian Administrative Agent, the Lenders and the Letter of Credit
Issuers to enter into the Credit Agreement and to induce the Canadian Lenders
and the Canadian Letter of Credit Issuer to make their respective Extensions of
Credit to the Canadian Borrower under the Credit Agreement and to induce one or
more Lenders or affiliates of Lenders to enter into Hedge Agreements with the
Canadian Borrower, the

 

 

Canadian Guarantors hereby
agree with the Canadian Administrative Agent, for the ratable benefit of the
Secured Parties, as follows:

 

1.  Defined Terms.

 

(a) 
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

(b) 
As used herein, the term “Obligations” shall mean the collective
reference to (i) the due and punctual payment required to be made by the
Canadian Borrower of (x) the principal of and premium, if any, and
interest at the applicable rate provided in the Credit Agreement (including
interest accruing during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) on the Loans, when and as due, whether at
maturity, by acceleration, upon one or more dates set for prepayment or
otherwise, (y) each payment required to be made by the Canadian Borrower
under the Credit Agreement in respect of any Canadian Letter of Credit, when
and as due, including payments in respect of reimbursement of disbursements,
interest thereon and obligations to provide cash collateral, and (z) all
other monetary obligations, including fees, costs, expenses and indemnities,
whether primary, secondary, direct, contingent, fixed or otherwise (including
monetary obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding), of the Canadian Borrower under the Credit
Agreement and the other Credit Documents, (ii) the due and punctual
performance of all covenants, agreements, obligations and liabilities of the
Canadian Borrower under or pursuant to the Credit Agreement and the other
Credit Documents, (iii)  the due and punctual payment and performance of
all obligations of the Canadian Borrower under each Hedge Agreement that (x) is
in effect on the Closing Date with a counterparty that is a Lender or an
affiliate of a Lender as of the Closing Date or (y) is entered into after
the Closing Date with any counterparty that is a Lender or an affiliate of a
Lender at the time such Hedge Agreement is entered into and (iv) the due
and punctual payment and performance of all obligations in respect of
overdrafts and related liabilities owed by the Canadian Borrower to the
Canadian Administrative Agent or its affiliates arising from or in connection
with treasury, depositary or cash management services or in connection with any
automated clearinghouse transfer of funds.

 

(c) 
As used herein, the term “Secured Parties” means any of the
following to whom an Obligation is owing (i) the Lenders, (ii) the
Letter of Credit Issuers, (iii) the Swingline Lender, (iv) the
Administrative Agent, (v) the Canadian Administrative Agent, (vi) the
other Agents, (vii) each counterparty to a Hedge Agreement the obligations
under which constitute Obligations, (vii) the beneficiaries of each
indemnification obligation undertaken by the Canadian Borrower under any Credit
Document and (ix) any successors, indorsees, transferees and assigns of
each of the foregoing.

 

2

 

(d) 
References to “Lenders” in this Guarantee shall be deemed to include
affiliates of Lenders that may from time to time enter into Hedge Agreements
with the Canadian Borrower.

 

(e) 
The words “hereof,” “herein” and “hereunder” and words of similar import
when used in this Guarantee shall refer to this Guarantee as a whole and not to
any particular provision of this Guarantee, and Section references are to
Sections of this Guarantee unless otherwise specified.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.

 

(f) 
The meanings given to terms defined herein shall be equally applicable
to both the singular and plural forms of such terms.

 

2.  Guarantee.

 

(a) 
Subject to the provisions of Section 2(b), each of the Canadian
Guarantors hereby, jointly and severally, unconditionally and irrevocably,
guarantees, as a primary obligor and not merely as surety, to the Canadian
Administrative Agent, for the ratable benefit of the Secured Parties, the
prompt and complete payment and performance when due (whether at the stated
maturity, by acceleration or otherwise) of the Obligations.

 

(b) 
Anything herein or in any other Credit Document to the contrary
notwithstanding, the maximum liability of each Canadian Guarantor hereunder and
under any other Credit Documents shall in no event exceed the amount that can
be guaranteed by such Canadian Guarantor under applicable laws relating to the
insolvency of debtors.

 

(c) 
Each Canadian Guarantor further agrees to pay any and all expenses
(including all fees and disbursements of counsel) that may be paid or incurred
by the Canadian Administrative Agent or any other Secured Party in enforcing,
or obtaining advice of counsel in respect of, any rights with respect to, or
collecting, any or all of the Obligations and/or enforcing any rights with
respect to, or collecting against, such Canadian Guarantor under this
Guarantee.

 

(d) 
Each Canadian Guarantor agrees that the Obligations may at any time and
from time to time exceed the amount of the liability of such Canadian Guarantor
hereunder without impairing this Guarantee or affecting the rights and remedies
of the Canadian Administrative Agent or any other Secured Party hereunder.

 

(e) 
No payment or payments made by any of the Borrowers, any of the Canadian
Guarantors, any other guarantor or any other Person or received or collected by
the Canadian Administrative Agents or any other Secured Party from any of the
Borrowers, any of the Canadian Guarantors, any other guarantor or any other
Person by virtue of any action or proceeding or any set-off or appropriation or
application at any time or from time to time in reduction of or in payment of
the Obligations shall be deemed to modify, reduce, release or otherwise affect
the liability of any Canadian Guarantor hereunder, which shall, notwithstanding
any such payment or payments other than payments made by such Canadian
Guarantor in respect of the Obligations or

 

3

 

payments received or collected from such Canadian Guarantor in respect
of the Obligations, remain liable for the Obligations up to the maximum
liability of such Canadian Guarantor hereunder until the Obligations under the
Credit Documents are paid in full, the Commitments are terminated and no
Letters of Credit shall be outstanding.

 

(f) 
As an original and independent obligation under this Guarantee, each
Canadian Guarantor shall:  (a) indemnify
the Canadian Administrative Agent and each of the other Secured Parties and
keep the Canadian Administrative Agent and each of the other Secured Parties
indemnified against any cost, loss, expense or liability of whatever kind
resulting from the failure by the Canadian Borrower to make due and punctual
payment of any of the Obligations or resulting from any of the Obligations
being or becoming void, voidable, unenforceable or ineffective against the
Canadian Borrower (including, but without limitation, all legal and other
costs, charges and expenses incurred by the Canadian Administrative Agent or
any of the other Secured Parties, in connection with preserving or enforcing,
or attempting to preserve or enforce, its rights under this Guarantee and any
cost or expense which is of the nature of extra-judicial professional fees payable
by the Canadian Administrative Agent or any of the other Secured Parties in
order to recover the capital and interest secured by any of the Canadian
Security Documents even if such cost or expense cannot be secured by such
Canadian Security Document); and (b) pay on demand the amount of such cost,
loss, expense or liability whether or not the Canadian Administrative Agent or
any of the other Secured Parties has attempted to enforce any rights against
the Canadian Borrower or any other Person or otherwise.

 

(g) 
The obligations of each Canadian Guarantor hereunder are independent of
the Obligations and a separate action or actions may be brought and prosecuted
against such Canadian Guarantor to enforce this Guarantee, irrespective of
whether any action is brought against the Canadian Borrower or whether the
Canadian Borrower is joined in any such actions or actions.

 

(h) 
Each Canadian Guarantor agrees that whenever, at any time, or from time
to time, it shall make any payment to the Canadian Administrative Agent or any
other Secured Party on account of its liability hereunder, it will notify the
Canadian Administrative Agent in writing that such payment is made under this
Guarantee for such purpose.

 

3.  Right of Contribution.  Each Canadian Guarantor hereby agrees that
to the extent that a Canadian Guarantor shall have paid more than its
proportionate share of any payment made hereunder, such Canadian Guarantor
shall be entitled to seek and receive contribution from and against any other
Canadian Guarantor hereunder who has not paid its proportionate share of such
payment.  Each Canadian Guarantor’s
right of contribution shall be subject to the terms and conditions of
Section 5 hereof.  The provisions
of this Section 3 shall in no respect limit the obligations and
liabilities of any Canadian Guarantor to the Canadian Administrative Agent and
the other Secured Parties, and each Canadian Guarantor shall remain liable to
the Canadian Administrative Agent and the other Secured Parties for the full
amount guaranteed by such Canadian Guarantor hereunder.

 

4

 

4.  Right of Set-off.  In addition to any rights and remedies of
the Secured Parties provided by law, each Canadian Guarantor hereby irrevocably
authorizes each Secured Party at any time and from time to time following the
occurrence and during the continuance of an Event of Default without notice to
such Canadian Guarantor or any other Canadian Guarantor, any such notice being
expressly waived by each Canadian Guarantor, upon any amount becoming due and
payable by such Canadian Guarantor hereunder (whether at stated maturity, by
acceleration or otherwise), to set-off and appropriate and apply against such
amount any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Secured Party to or for
the credit or the account of such Canadian Guarantor.  Each Secured Party shall notify such Canadian Guarantor promptly
of any such set-off and the appropriation and application made by such Secured
Party, provided that the failure to give such notice shall not affect
the validity of such set-off and application.

 

5.  No Subrogation.  Notwithstanding any payment or payments made
by any of the Canadian Guarantors hereunder or any set-off or appropriation and
application of funds of any of the Canadian Guarantors by the Canadian
Administrative Agent or any other Secured Party, no Canadian Guarantor shall be
entitled to be subrogated to any of the rights of the Canadian Administrative
Agent or any other Secured Party against the Canadian Borrower or any other
Canadian Guarantor or any collateral security or guarantee or right of offset
held by the Canadian Administrative Agent or any other Secured Party for the
payment of the Obligations, nor shall any Canadian Guarantor seek or be
entitled to seek any contribution or reimbursement from the Canadian Borrower
or any other Canadian Guarantor in respect of payments made by such Guarantor
hereunder, until all amounts owing to the Canadian Administrative Agent and the
other Secured Parties by the Credit Parties on account of the Obligations under
the Credit Documents are paid in full, the Commitments are terminated and no
Letters of Credit shall be outstanding. 
If any amount shall be paid to any Canadian Guarantor on account of such
subrogation rights at any time when all the Obligations shall not have been
paid in full, such amount shall be held by such Canadian Guarantor in trust for
the Canadian Administrative Agent and the other Secured Parties, segregated
from other funds of such Canadian Guarantor, and shall, forthwith upon receipt
by such Canadian Guarantor, be turned over to the Canadian Administrative Agent
in the exact form received by such Canadian Guarantor (duly indorsed by such
Guarantor to the Canadian Administrative Agent, if required), to be applied against
the Obligations, whether due or to become due, in such order as the Canadian
Administrative Agent may determine.

 

6.  Amendments, etc. with Respect to the
Obligations; Waiver of Rights.  Each
Canadian Guarantor shall remain obligated hereunder notwithstanding that,
without any reservation of rights against any Canadian Guarantor and without
notice to or further assent by any Canadian Guarantor, (a) any demand for
payment of any of the Obligations made by the Canadian Administrative Agent or
any other Secured Party may be rescinded by such party and any of the
Obligations continued, (b) the Obligations, or the liability of any other
party upon or for any part thereof, or any collateral security or guarantee
therefor or right of offset with respect thereto, may, from time to time, in
whole

 

5

 

or in part, be renewed, extended, amended,
modified, accelerated, compromised, waived, surrendered or released by the
Canadian Administrative Agent or any other Secured Party, (c) the Credit
Agreement, the other Credit Documents, the Letters of Credit and any other
documents executed and delivered in connection therewith and the Hedge
Agreements and any other documents executed and delivered in connection therewith
and any documents entered into with the Canadian Administrative Agent or any of
its affiliates in connection with treasury, depositary or cash management
services or in connection with any automated clearinghouse transfer of funds
may be amended, modified, supplemented or terminated, in whole or in part, as
the Canadian Administrative Agent (or the Required Lenders, as the case may be,
or, in the case of any Hedge Agreement or documents entered into with the
Canadian Administrative Agent or any of its affiliates in connection with
treasury, depositary or cash management services or in connection with any
automated clearinghouse transfer of funds, the party thereto) may deem
advisable from time to time, and (d) any collateral security, guarantee or
right of offset at any time held by the Canadian Administrative Agent or any
other Secured Party for the payment of the Obligations may be sold, exchanged,
waived, surrendered or released. 
Neither the Canadian Administrative Agent nor any other Secured Party
shall have any obligation to protect, secure, perfect or insure any Lien at any
time held by it as security for the Obligations or for this Guarantee or any
property subject thereto.  When making
any demand hereunder against any Canadian Guarantor, the Canadian Administrative
Agent or any other Secured Party may, but shall be under no obligation to, make
a similar demand on the Canadian Borrower or any Canadian Guarantor or other
guarantor of the Obligations, and any failure by the Canadian Administrative
Agent or any other Secured Party to make any such demand or to collect any
payments from the Canadian Borrower or any Canadian Guarantor or other
guarantor of the Obligations or any release of the Canadian Borrower or any
Canadian Guarantor or other guarantor of the Obligations shall not relieve any
Canadian Guarantor in respect of which a demand or collection is not made or
any Canadian Guarantor not so released of its several obligations or
liabilities hereunder, and shall not impair or affect the rights and remedies,
express or implied, or as a matter of law, of the Canadian Administrative Agent
or any other Secured Party against any Canadian Guarantor.  For the purposes hereof, “demand” shall
include the commencement and continuance of any legal proceedings.

 

7.  Guarantee Absolute and Unconditional.  Each Canadian Guarantor waives any and all
notice of the creation, contraction, incurrence, renewal, extension, amendment,
waiver or accrual of any of the Obligations, and notice of or proof of reliance
by the Canadian Administrative Agent or any other Secured Party upon this
Guarantee or acceptance of this Guarantee, and the Obligations or any of them,
shall conclusively be deemed to have been created, contracted or incurred, or
renewed, extended, amended, waived or accrued, in reliance upon this Guarantee;
and all dealings between the Canadian Borrower and any of the Canadian
Guarantors, on the one hand, and the Canadian Administrative Agent and the
other Secured Parties, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon this Guarantee.  Each Canadian Guarantor waives diligence,
presentment, protest, demand for payment and notice of default or nonpayment to
or upon the Canadian Borrower or any of the Canadian Guarantors with respect to
the Obligations.  Each Canadian
Guarantor understands and agrees that this Guarantee shall be construed as a

 

6

 

continuing, absolute and unconditional
guarantee of payment without regard to (a) the validity, regularity or
enforceability of the Credit Agreement, any other Credit Document, any Letter
of Credit or any Hedge Agreement, any of the Obligations or any other
collateral security therefor or guarantee or right of offset with respect
thereto at any time or from time to time held by the Canadian Administrative
Agent or any other Secured Party, (b) any defense, set-off or counterclaim
(other than a defense of payment or performance) that may at any time be
available to or be asserted by Canadian Borrower against the Canadian
Administrative Agent or any other Secured Party or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the Canadian
Borrower or such Canadian Guarantor) that constitutes, or might be construed to
constitute, an equitable or legal discharge of the Canadian Borrower for the
Obligations, or of such Canadian Guarantor under this Guarantee, in bankruptcy
or in any other instance.  When pursuing
its rights and remedies hereunder against any Canadian Guarantor, the Canadian
Administrative Agent and any other Secured Party may, but shall be under no
obligation to, pursue such rights and remedies as it may have against the
Canadian Borrower or any other Person or against any collateral security or
guarantee for the Obligations or any right of offset with respect thereto, and
any failure by the Canadian Administrative Agent or any other Secured Party to
pursue such other rights or remedies or to collect any payments from the
Canadian Borrower or any such other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or
any release of the Canadian Borrower or any such other Person or any such
collateral security, guarantee or right of offset, shall not relieve such
Canadian Guarantor of any liability hereunder, and shall not impair or affect
the rights and remedies, whether express, implied or available as a matter of
law, of the Canadian Administrative Agent and the other Secured Parties against
such Canadian Guarantor.  This Guarantee
shall remain in full force and effect and be binding in accordance with and to
the extent of its terms upon each Canadian Guarantor and the successors and
assigns thereof, and shall inure to the benefit of the Canadian Administrative
Agent and the other Secured Parties, and their respective successors,
indorsees, transferees and assigns, until all the Obligations under the Credit
Documents shall have been satisfied by payment in full, the Commitments shall
be terminated and no Letters of Credit shall be outstanding, notwithstanding
that from time to time during the term of the Credit Agreement and any Hedge
Agreement the Credit Parties may be free from any Obligations.

 

8.  Reinstatement.  This Guarantee shall continue to be
effective, or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any of the Obligations is rescinded or must otherwise be
restored or returned by the Canadian Administrative Agent or any other Secured
Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Canadian Borrower or any Canadian Guarantor, or upon or
as a result of the appointment of a receiver, interim receiver, receiver and
manager, intervenor or conservator of, or trustee or similar officer for, the
Canadian Borrower or any Canadian Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made.

 

7

 

9.  Payments.

 

(a) 
Each Canadian Guarantor hereby guarantees that payments hereunder will
be paid to the Canadian Administrative Agent without set-off or counterclaim in
the currency in which the underlying Obligation is owed at the Canadian
Administrative Agent’s Office.

 

(b) 
Subject to the following sentence, all payments made by or on behalf of
any Canadian Guarantor under this Guarantee or any other Credit Document shall
be made free and clear of, and without deduction or withholding for or on
account of, any current or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter
imposed, levied, collected, withheld or assessed by any Governmental Authority,
excluding (i) net income taxes, franchise taxes (imposed in lieu of net
income taxes) and capital taxes imposed on the Canadian Administrative Agent or
any Canadian Lender and (ii) any taxes imposed on the Canadian
Administrative Agent or any Canadian Lender as a result of a current or former
connection between the Canadian Administrative Agent or such Canadian Lender
and the jurisdiction of the Governmental Authority imposing such tax or any
political subdivision or taxing authority thereof or therein (other than any
such connection arising solely from the Canadian Administrative Agent or such
Canadian Lender having executed, delivered or performed its obligations or
received a payment under, or enforced, this Guarantee).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) are required to be withheld from any amounts payable under this
Guarantee, the Canadian Guarantors shall increase the amounts payable to the
Canadian Administrative Agent or such Canadian Lender to the extent necessary
to yield to the Canadian Administrative Agent or such Canadian Lender (after
payment of all Non-Excluded Taxes) interest or any such other amounts payable
hereunder at the rates or in the amounts specified in this Guarantee.  Whenever any Non-Excluded Taxes are payable
by any Canadian Guarantor, as promptly as possible thereafter such Canadian
Guarantor shall send to the Canadian Administrative Agent for its own account
or for the account of such Canadian Lender, as the case may be, a certified
copy of an original official receipt (or other evidence acceptable to such
Canadian Lender, acting reasonably) received by such Canadian Guarantor showing
payment thereof.  If any Canadian
Guarantor fails to pay any Non-Excluded Taxes when due to the appropriate
taxing authority or fails to remit to the Canadian Administrative Agent the
required receipts or other required documentary evidence, such Canadian
Guarantor shall indemnify the Canadian Administrative Agent and the Canadian
Lenders for any incremental taxes, interest, costs or penalties that may become
payable by the Canadian Administrative Agent or any Canadian Lender as a result
of any such failure.  The agreements in
this Section 9(b) shall survive the termination of this Guarantee and the
payment of the Obligations and all other amounts payable hereunder.  The Canadian Guarantors shall not be
required to indemnify or pay any additional amounts to any Lender or
Administrative Agent in respect of Canadian withholding tax pursuant to
paragraph (a) above to the extent that such Non-Excluded Taxes result from a
failure by the Lender or Administrative Agent to comply with any certification,
identification, information, documentation or other reporting requirement
(collectively referred to in this Section 9(b) as a “Reporting Requirement”) if
(i) compliance is required by law,

 

8

 

regulation, administrative practice or any applicable tax treaty as a
precondition to exemption from or a reduction in the rate of deduction or
withholding of Non-Excluded Taxes, and (ii) the Canadian Guarantor has first
made written request to the Canadian Administrative Agent that the Lender or
Administrative Agent comply with the particular Reporting Requirement
(identified specifically in such request) and the Lender or Administrative
Agent, as applicable, has not complied with such Reporting Requirement within
30 Business Days of such written request; provided however that no
Canadian Guarantor shall be relieved of its obligation to indemnify or pay additional
amounts to a Lender or Administrative Agent (x) where such obligation arose
prior to Canadian Guarantor’s written request to Canadian Administrative Agent
respecting such Reporting Requirement, (y) if, by reason of any change in any
law, regulation, administrative practice or applicable tax treaty occurring
after the date hereof, the Lender or Administrative Agent, as applicable, is
unable to duly comply with such Reporting Requirement, or (z) to the extent
that the additional payment or indemnity compensates the Lender or
Administrative Agent for an amount to which the Lender or Administrative Agent
would have been entitled to receive under paragraph (a) had the Lender or
Administrative Agent, as applicable complied with the Reporting Requirement.

 

(c) 
The obligations of the Canadian Guarantors hereunder and under the other
Credit Documents to make payments in Dollars or in Canadian Dollars, as the
case may be (the “Obligation Currency”), shall not be discharged or
satisfied by any tender or recovery pursuant to any judgment expressed in or
converted into any currency other than the Obligation Currency, except to the
extent that such tender or recovery results in the effective receipt by the
Administrative Agent, the Canadian Administrative Agent or a Lender of the full
amount of the Obligation Currency expressed to be payable to the Administrative
Agent, the Canadian Administrative Agent or Lender under this Guarantee or the
other Credit Documents.  If, for the
purpose of obtaining or enforcing judgment against any Canadian Guarantor in
any court or in any jurisdiction, it becomes necessary to convert into or from
any currency other than the Obligation Currency (such other currency being
hereinafter referred to as the “Judgment Currency”) an amount due in the
Obligation Currency, the conversion shall be made, at the rate of exchange
prevailing, in each case, as of the date immediately preceding the day on which
the judgment is given (such Business Day being hereinafter referred to as the “Judgment
Currency Conversion Date”).

 

If there is a
change in the rate of exchange prevailing between the Judgment Currency
Conversion Date and the date of actual payment of the amount due, the Canadian
Guarantors each covenant and agree to pay, or cause to be paid, such additional
amounts, if any (but in any event not a lesser amount), as may be necessary to
ensure that the amount paid in the Judgment Currency, when converted at the
rate of exchange prevailing on the date of payment, will produce the amount of
the Obligation Currency which could have been purchased with the amount of
Judgment Currency stipulated in the judgment or judicial award at the rate of
exchange prevailing on the Judgment Currency Conversion Date.

 

9

 

For purposes
of determining the prevailing rate of exchange, such amounts shall include any
premium and costs payable in connection with the purchase of the Obligation
Currency.

 

(d) 
If any Canadian Guarantor determines in good faith that a reasonable basis
exists for contesting any taxes for which indemnification has been demanded
hereunder, the relevant Canadian Lender or the Canadian Administrative Agent,
as applicable, shall cooperate with such Canadian Guarantor in challenging such
taxes at such Canadian Guarantor’s expense if so requested by such Canadian
Guarantor.  If any Canadian Lender or
the Canadian Administrative Agent receives a refund of a tax for which a
payment has been made by any Canadian Guarantor pursuant to this Guarantee,
which refund in the good faith judgment of such Canadian Lender or Canadian
Administrative Agent, as the case may be, is attributable to such payment by
any Canadian Guarantor, then the Canadian Lender or the Canadian Administrative
Agent, as the case may be, shall reimburse the Canadian Guarantor for such
amount (together with any interest received thereon) as the Canadian Lender or
Canadian Administrative Agent, as the case may be, determines to be the
proportion of the refund as will leave it, after such reimbursement, in no
better or worse position than it would have been in if the payment had not been
required.  A Canadian Lender or the
Canadian Administrative Agent shall claim any refund that it determines is
available to it, unless it concludes in its reasonable discretion that it would
be adversely affected by making such a claim. 
Neither any Canadian Lender, nor the Canadian Administrative Agent shall
be obliged to disclose any information regarding its tax affairs or
computations to the Canadian Guarantor in connection with this paragraph (d) or
any other provision of this Section 9.

 

(e) 
Notwithstanding paragraph (b) of this section 9, no Canadian Guarantor
shall be required to indemnify or pay any additional amounts in respect of
Canadian withholding tax imposed under Part XIII of the Tax Act applicable to
any amount payable under this Guarantee to any Lender that is not a resident of
Canada for the purposes of the Tax Act, except if any such Loans were assigned,
participated or transferred to such Lender at the request of the Canadian
Borrower or were assigned, participated or transferred to such Lender following
the occurrence of an during the continuance of an Event of Default pursuant to
Section 11.1 or 11.5 of the Credit Agreement.

 

10.  Representations and Warranties; Covenants.

 

(a) 
Each Canadian Guarantor hereby represents and warrants that the
representations and warranties set forth in Section 8 of the Credit
Agreement as they relate to such Canadian Guarantor or in the other Credit
Documents to which such Canadian Guarantor is a party, each of which is hereby
incorporated herein by reference, are true and correct, and the Canadian
Administrative Agent and each other Secured Party shall be entitled to rely on
each of them as if they were fully set forth herein.

 

(b) 
Each Canadian Guarantor hereby covenants and agrees with the Canadian
Administrative Agent and each other Secured Party that, from and after the date
of this Guarantee until the Obligations under the Credit Documents are paid in
full, the 

 

10

 

Commitments are terminated and no Letter of Credit remains outstanding,
such Canadian Guarantor shall take, or shall refrain from taking, as the case
may be, all actions that are necessary to be taken or not taken so that no
violation of any provision, covenant or agreement contained in Section 9
or 10 of the Credit Agreement, and so that no Default or Event of Default, is
caused by any act or failure to act of such Canadian Guarantor or any of its Subsidiaries.

 

(c) 
Each Canadian Guarantor organized under the laws of any Province of
Canada represents and warrants that there is no reasonable ground to believe
that as a consequence of the giving of this Guarantee, (i) it could not
discharge its liabilities when due, or (ii) the book value of its assets would
be less than the sum of its liabilities and its issued and paid-up share
capital account.

 

11.  Authority of Agent.  Each Canadian Guarantor acknowledges that
the rights and responsibilities of the Canadian Administrative Agent under this
Guarantee with respect to any action taken by the Canadian Administrative Agent
or the exercise or non-exercise by the Canadian Administrative Agent of any
option, right, request, judgment or other right or remedy provided for herein
or resulting or arising out of this Guarantee shall, as between the Canadian
Administrative Agent and the other Secured Parties, be governed by the Credit
Agreement and by such other agreements with respect thereto as may exist from
time to time among them, but, as between the Canadian Administrative Agent and
such Canadian Guarantor, the Canadian Administrative Agent shall be
conclusively presumed to be acting as agent for the Secured Parties with full
and valid authority so to act or refrain from acting, and no Canadian Guarantor
shall be under any obligation, or entitlement, to make any inquiry respecting
such authority.

 

12.  Notices.  All notices, requests and demands pursuant hereto shall be made
in accordance with Section 13.2 of the Credit Agreement.  All communications and notices hereunder to
each Canadian Guarantor shall be given to it in care of the Canadian Borrower
at the Canadian Borrower’s address set forth in Section 13.2 of the Credit
Agreement.

 

13.  Counterparts.  This Guarantee may be executed by one or
more of the parties to this Guarantee on any number of separate counterparts
(including by facsimile or other electronic transmission), and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.  A set of the copies of this
Guarantee signed by all the parties shall be lodged with the Canadian
Administrative Agent and the Canadian Borrower.

 

14.  Severability.  Any provision of this Guarantee that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  The parties hereto shall endeavor in
good-faith negotiations to replace the invalid, illegal or unenforceable
provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

 

11

 

15.  Integration.  This Guarantee represents the agreement of
each Canadian Guarantor and the Canadian Administrative Agent with respect to
the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Canadian Administrative Agent or any other
Secured Party relative to the subject matter hereof not expressly set forth or
referred to herein or in the other Credit Documents.

 

16.  Amendments in Writing; No Waiver;
Cumulative Remedies.

 

(a) 
None of the terms or provisions of this Guarantee may be waived,
amended, supplemented or otherwise modified except by a written instrument
executed by the affected Canadian Guarantor(s) and the Canadian Administrative
Agent in accordance with Section 13.1 of the Credit Agreement.

 

(b) 
Neither the Canadian Administrative Agent nor any other Secured Party
shall by any act (except by a written instrument pursuant to Section 16(a)
hereof), delay, indulgence, omission or otherwise be deemed to have waived any
right or remedy hereunder or to have acquiesced in any Default or Event of
Default or in any breach of any of the terms and conditions hereof.  No failure to exercise, nor any delay in
exercising, on the part of the Canadian Administrative Agent or any other
Secured Party, any right, power or privilege hereunder shall operate as a
waiver thereof.  No single or partial
exercise of any right, power or privilege hereunder shall preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege.  A waiver by the Canadian
Administrative Agent or any other Secured Party of any right or remedy
hereunder on any one occasion shall not be construed as a bar to any right or
remedy that the Canadian Administrative Agent or any Secured Party would
otherwise have on any future occasion.

 

(c) 
The rights, remedies, powers and privileges herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

 

17.  Section Headings.  The Section headings used in this Guarantee
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.

 

18.  Successors and Assigns.  This Guarantee shall be binding upon the
successors and assigns of each Canadian Guarantor and shall inure to the
benefit of the Canadian Administrative Agent and the other Secured Parties and
their respective successors and assigns except that no Canadian Guarantor may
assign, transfer or delegate any of its rights or obligations under this
Guarantee without the prior written consent of the Canadian Administrative
Agent or as otherwise permitted under the Credit Agreement.

 

19.  Additional Guarantors.  Each Person that is required to become a
party to this Guarantee pursuant to Section 9.11 of the Credit Agreement shall
become a Canadian Guarantor, with the same force and effect as if originally
named as a Canadian 

 

12

 

Guarantor herein, for all purposes of this
Guarantee upon execution and delivery by such Person of a Supplement in the
form of Annex A hereto.  The execution
and delivery of any instrument adding an additional Canadian Guarantor as a
party to this Guarantee shall not require the consent of any other Canadian
Guarantor hereunder.  The rights and
obligations of each Canadian Guarantor hereunder shall remain in full force and
effect notwithstanding the addition of any new Canadian Guarantor as a party to
this Guarantee.

 

20.  WAIVER
OF JURY TRIAL.  EACH CANADIAN
GUARANTOR HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY
LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE, ANY OTHER CREDIT
DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

21.  Submission to Jurisdiction; Waivers.  Each Canadian Guarantor hereby irrevocably
and unconditionally:

 

(a) 
submits for itself and its property in any legal action or proceeding
relating to this Guarantee and the other Credit Documents to which it is a
party, or for recognition and enforcement of any judgment in respect thereof,
to the non-exclusive general jurisdiction of the courts of the State of New
York, the courts of the United States of America for the Southern District
of New York and appellate courts from any thereof;

 

(b) 
consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue
of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or
claim the same;

 

(c) 
agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Canadian
Guarantor at its address referred to in Section 12 or at such other
address of which the Administrative Agent shall have been notified pursuant
thereto;

 

(d) 
agrees that nothing herein shall affect the right of the Canadian
Administrative Agent or any other Secured Party to effect service of process in
any other manner permitted by law or shall limit the right of the Canadian
Administrative Agent or any other Secured Party to sue in any other
jurisdiction; and

 

(e) 
waives, to the maximum extent not prohibited by law, any right it may
have to claim or recover in any legal action or proceeding referred to in this
Section 21 any special, exemplary, punitive or consequential damages.

 

22.  GOVERNING LAW.  THIS GUARANTEE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

 

13

 

IN WITNESS WHEREOF, each of the undersigned
has caused this Guarantee to be duly executed and delivered by its duly
authorized officer as of the day and year first above written.

 

 

	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ David A.
  Tayeh

  
	
   

  	
   

  	
   

  	
  Name:  David A. Tayeh

  
	
   

  	
   

  	
   

  	
  Title:    Secretary

  

 

 

	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Marie
  Hlavaty

  
	
   

  	
   

  	
   

  	
  Name:  Marie Hlavaty

  
	
   

  	
   

  	
   

  	
  Title:    Secretary, Treasurer

  

 

 

	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ David A.
  Tayeh

  
	
   

  	
   

  	
   

  	
  Name:  David A. Tayeh

  
	
   

  	
   

  	
   

  	
  Title:    Secretary

  

 

 

	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Peter
  Chauvin

  
	
   

  	
   

  	
   

  	
  Name:  Peter Chauvin

  
	
   

  	
   

  	
   

  	
  Title:    Vice President

  

 

 

	
   

  	
   

  	
  By

  	
  /s/ Alain
  Daoust

  
	
   

  	
   

  	
   

  	
  Name:  Alain Daoust

  
	
   

  	
   

  	
   

  	
  Title:    Director

  

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  IST, Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Kenneth A.
  Budde

  
	
   

  	
   

  	
   

  	
   Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  AHC I
  ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Kenneth A.
  Budde

  
	
   

  	
   

  	
   

  	
   Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  AKI HOLDING
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Kenneth A.
  Budde

  
	
   

  	
   

  	
   

  	
   Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  AKI, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Kenneth A.
  Budde

  
	
   

  	
   

  	
   

  	
   Title:

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  ANTHOLOGY,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
   

  	
   Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  VON HOFFMANN
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
   

  	
   Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  VON HOFFMANN
  HOLDINGS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
   

  	
   Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  THE LEHIGH
  PRESS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
   

  	
   Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

	
   

  	
  IN WITNESS
  WHEREOF, each of the undersigned has caused this Guarantee to be duly
  executed and delivered by its duly authorized officer as of the day and year
  first above written.

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  
	
   

  	
   

  	
  JOSTENS
  SECONDARY

  HOLDINGS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Each of the
  US Subsidiary Guarantors listed

  on Schedule I

  
	
   

  	
   

  	
   

  	
  PRECISION
  OFFSET PRINTING

  COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   /s/
  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  	
  Robert S.
  Mathews

  
	
   

  	
   

  	
   

  	
   Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS CANADIAN

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   Name:

  
	
   

  	
   

  	
   

  	
   Title:

  
						

 

 

ANNEX A TO THE 

CANADIAN GUARANTEE

 

SUPPLEMENT NO. [  ] dated as of
[            ],
200_ to the CANADIAN GUARANTEE (the “Canadian
Guarantee”) dated as of October 4, 2004, made among JOSTENS IH CORP.
(the “Borrower”), JOSTENS SECONDARY HOLDINGS CORP. (“Holdings”), the
US Subsidiary Guarantors party thereto (the “U.S. Subsidiary Guarantors”
and, together with the Borrower and Holdings, the “Canadian Guarantors”)
and CREDIT SUISSE FIRST BOSTON TORONTO BRANCH, as Canadian administrative agent
(in such capacity, the “Canadian Administrative Agent”) for the Lenders
from time to time parties to the Credit Agreement referred to below.

 

A.  Reference is made to the Credit Agreement
dated as of October 4, 2004, among the Borrower, JOSTENS CANADA LTD., a
Manitoba corporation (the “Canadian Borrower” and, together with the
Borrower, the “Borrowers”), the lending institutions from time to time
parties thereto (each a “Lender” and, collectively, the “Lenders”),
CREDIT SUISSE FIRST BOSTON, as administrative agent (in such capacity,
the “Administrative Agent”) and the Canadian Administrative Agent.

 

B.  Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned to such terms in the
Canadian Guarantee.

 

C.  The Canadian Guarantors have entered into
the Canadian Guarantee in order to induce the Canadian Administrative Agent,
the Canadian Lenders and the Canadian Letter of Credit Issuer to enter into the
Credit Agreement and to induce the Canadian Lenders and the Canadian Letter of
Credit Issuer to make their respective Extensions of Credit to the Canadian
Borrower under the Credit Agreement and to induce one or more Lenders or
affiliates of Lenders to enter into Hedge Agreements with the Canadian
Borrower.  Section 9.11 of the Credit
Agreement and Section 19 of the Canadian Guarantee provide that additional
Subsidiaries of the Borrower or the Canadian Borrower may become Canadian
Guarantors under the Canadian Guarantee by execution and delivery of an
instrument in the form of this Supplement. 
Each undersigned Subsidiary of the Borrower or the Canadian Borrower, as
applicable (each a “New Canadian Guarantor” and, collectively, the “New
Canadian Guarantors”), is executing this Supplement in accordance with the
requirements of the Credit Agreement to become a Canadian Guarantor under the
Canadian Guarantee in order to induce the Canadian Lenders and the Canadian
Letter of Credit Issuer to make additional Extensions of Credit and as
consideration for Extensions of Credit previously made.

 

 

Accordingly,
the Canadian Administrative Agent and each New Canadian Guarantor agrees as
follows:

 

SECTION
1.  In accordance with Section 19
of the Canadian Guarantee, each New Canadian Guarantor by its signature below
becomes a Canadian Guarantor under the Canadian Guarantee with the same force
and effect as if originally named therein as a Canadian Guarantor and each New
Canadian Guarantor hereby (a) agrees to all the terms and provisions of
the Canadian Guarantee applicable to it as a Canadian Guarantor thereunder and
(b) represents and warrants that the representations and warranties made
by it as a Canadian Guarantor thereunder are true and correct on and as of the
date hereof. Each reference to a Canadian Guarantor in the Canadian Guarantee
shall be deemed to include each New Canadian Guarantor.  The Canadian Guarantee is hereby
incorporated herein by reference.

 

SECTION
2.  Each New Canadian Guarantor
represents and warrants to the Canadian Administrative Agent and the other
Secured Parties that this Supplement has been duly authorized, executed and
delivered by it and constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms.

 

SECTION
3.  This Supplement may be executed by
one or more of the parties to this Supplement on any number of separate
counterparts (including by facsimile or other electronic transmission), and all
of said counterparts taken together shall be deemed to constitute one and the
same instrument.  A set of the copies of
this Supplement signed by all the parties shall be lodged with the Canadian
Borrower and the Canadian Administrative Agent.  This Supplement shall become effective as to each New Canadian
Guarantor when the Canadian Administrative Agent shall have received
counterparts of this Supplement that, when taken together, bear the signatures
of such New Canadian Guarantor and the Canadian Administrative Agent.

 

SECTION
4.  Except as expressly supplemented
hereby, the Canadian Guarantee shall remain in full force and effect.

 

SECTION 5.  THIS SUPPLEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

SECTION
6.  Any provision of this Supplement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof and in
the Canadian Guarantee, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.  The parties hereto
shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

 

2

 

SECTION
7.  All notices, requests and demands
pursuant hereto shall be made in accordance with Section 13.2 of the Credit
Agreement.  All communications and
notices hereunder to each New Canadian Guarantor shall be given to it in care
of the Canadian Borrower at the Canadian Borrower’s address set forth in Section
13.2 of the Credit Agreement.

 

SECTION
8.  Each New Canadian Guarantor agrees
to reimburse the Canadian Administrative Agent for its out-of-pocket expenses
in connection with this Supplement, including the fees, disbursements and other
charges of counsel for the Canadian Administrative Agent.

 

IN WITNESS
WHEREOF, each New Canadian Guarantor and the Administrative Agent have duly
executed this Supplement to the Canadian Guarantee as of the day and year first
above written.

 

	
   

  	
  [NAME OF NEW
  CANADIAN

  GUARANTOR]

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

 

	
   

  	
  CREDIT
  SUISSE FIRST BOSTON

  TORONTO BRANCH, AS

  ADMINISTRATIVE AGENT

  
	
   

  	
   

  
	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

	
   

  	
  by

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]