Document:

Exhibit 10.38

 

THIRD AMENDED AND RESTATED 2004 STOCK OPTION PLAN

FOR KEY EMPLOYEES OF

VISANT HOLDING CORP. AND ITS SUBSIDIARIES

 

1.             Purpose
of Plan

 

The Third
Amended and Restated 2004 Stock Option Plan for Key Employees of Visant Holding
Corp. and Its Subsidiaries (the “Plan”) is designed:

 

(a)           to
promote the long term financial interests and growth of Visant Holding Corp.
(the “Company”) and its Subsidiaries by attracting and retaining management and
other personnel with the training, experience and ability to enable them to
make a substantial contribution to the success of the Company’s business;

 

(b)           to
motivate management personnel by means of growth-related incentives to achieve
long range goals; and

 

(c)           to
further the alignment of interests of participants with those of the
stockholders of the Company through opportunities for increased stock, or
stock-based ownership in the Company.

 

2.             Definitions

 

As used in the
Plan, the following words shall have the following meanings:

 

(a)           “Affiliate”
means with respect to any Person, any entity directly or indirectly
controlling, controlled by or under common control with such Person.

 

(b)           “Board”
means the Board of Directors of the Company.

 

(c)           “Change
in Control” means (i) the sale (in one transaction or a series of
transactions) of all or substantially all of the assets of the Company to an
Unaffiliated Person; (ii) a sale (in one transaction or a series of
transactions) resulting in more than 50% of the voting stock of the Company
being held by an Unaffiliated Person; (iii) a merger, consolidation,
recapitalization or reorganization of the Company with or into an Unaffiliated
Person; if and only if any such
event listed in clauses (i) through (iii) above results in the inability
of the Investors, or any member or members of the Investors, to designate or
elect a majority of the Board (or the board of directors of the resulting
entity or its parent company). For purposes of this definition, the term “Unaffiliated
Person” means any Person or Group who is not (x) an Investor or any member
of the Investors, (y) a Rule 405 Affiliate of any Investor or any
member of any Investor, or (z) an entity in which any Investor, or any
member of any Investor holds, directly or indirectly, a majority of the
economic interests in such entity.

 

(d)           “Committee”
means the Compensation Committee of the Board.

 

(e)           “Common
Stock” or “Share” means the Class A common stock, par value $0.01 per share, of
the Company, which may be authorized but unissued, or issued and reacquired.

 

 

(f)            “Employee”
means a person, including an officer, in the regular employment of the Company
or one of its Subsidiaries who, in the opinion of the Committee, is, or is
expected to have involvement in the management, growth or protection of some
part or all of the business of the Company.

 

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

 

(h)           “Fair
Market Value” means the price per share equal to (i) the average of the
last sale price of the Common Stock on the applicable date on each stock
exchange on which the Common Stock may at the time be listed or, (ii) if
there shall have been no sales on any such exchanges on the applicable date on
any given day, the average of the closing bid and asked prices of the Common
Stock on each such exchange on the applicable date or, (iii) if there is
no such bid and asked price on the applicable date, the average of the closing
bid and asked prices of the Common Stock on the next preceding date when such
bid and asked price occurred or, (iv) if the Common Stock shall not be so
listed, the closing sales price of the Common Stock as reported by NASDAQ on
the applicable date in the over-the-counter market, or, (v) if there has
been no Public Offering, the fair market value of the Common Stock as determined
(x) in the good faith discretion of the Board after consultation with
management of the Company and (y) without any premiums for control or
discounts for minority interests or restrictions on transfer.

 

(i)            “Grant”
means an award made to a Participant pursuant to the Plan and described in
Section 5, including, without limitation, an award of a Stock Option, Purchase
Stock, Restricted Stock, Stock Appreciation Right or Dividend Equivalent Right
(as such terms are defined in Section 5), or any combination of the foregoing.

 

(j)            “Grant
Agreement” means an agreement between the Company and a Participant that sets
forth the terms, conditions and limitations applicable to a Grant.

 

(k)           “Group”
means “group,” as such term is used for purposes of Section 13(d) or 14(d) of
the Exchange Act.

 

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

 

(m)          “Participant”
means an Employee, non-employee member of the Board, consultant or other person
having a relationship with the Company or one of its Subsidiaries, to whom one
or more Grants have been made and remain outstanding.

 

(n)           “Person”
means “person,” as such term is used for purposes of Section 13(d) or 14(d) of
the Exchange Act.

 

(o)           “Public
Offering” means the sale of shares of Common Stock to the public subsequent to
the date hereof pursuant to a registration statement under the Securities Act
of 1933, as amended, which has been declared effective by the Securities and
Exchange Commission (other than a registration statement on Form S-4, S-8
or any other similar form).

 

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(p)           “Subsidiary”
means any corporation in an unbroken chain of corporations beginning with the
Company if each of the corporations, or group of commonly controlled
corporations, other than the last corporation in the unbroken chain then owns
stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain.

 

3.             Administration
of Plan

 

(a)           The
Plan shall be administered by the Committee. The Committee may adopt its own
rules of procedure, and action of a majority of the members of the Committee
taken at a meeting, or action taken without a meeting by unanimous written
consent, shall constitute action by the Committee. The Committee shall have the
power and authority to administer, construe and interpret the Plan, to make
rules for carrying it out and to make changes in such rules. Any such
interpretations, rules, and administration shall be consistent with the basic
purposes of the Plan.

 

(b)           The
Committee may delegate to the Chief Executive Officer and to other senior
officers of the Company its duties under the Plan subject to such conditions
and limitations as the Committee shall prescribe except that only the Committee
may designate and make Grants to Participants who are subject to Section 16 of
the Exchange Act.

 

(c)           The
Committee may employ counsel, consultants, accountants, appraisers, brokers or
other persons. The Committee, the Company, and the officers and directors of
the Company shall be entitled to rely upon the advice, opinions or valuations
of any such persons. All actions taken and all interpretations and
determinations made by the Committee in good faith shall be final and binding
upon all Participants, the Company and all other interested persons. No member
of the Committee shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or the Grants, and
all members of the Committee shall be fully protected by the Company with
respect to any such action, determination or interpretation.

 

4.             Eligibility

 

The Committee
may from time to time make Grants under the Plan to such Employees, or other
persons having a relationship with Company or any of its Subsidiaries, and in
such form and having such terms, conditions and limitations as the Committee
may determine. The terms, conditions and limitations of each Grant under the
Plan shall be set forth in a Grant Agreement, in a form approved by the Committee,
consistent, however, with the terms of the Plan; provided, however,
that such Grant Agreement shall contain provisions dealing with the treatment
of Grants in the event of the termination of employment, death or disability of
a Participant, and may also include provisions concerning the treatment of
Grants in the event of a Change in Control of the Company.

 

5.             Grants

 

From time to
time, the Committee will determine the forms and amounts of Grants for
Participants. Such Grants may take the following forms in the Committee’s sole
discretion:

 

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(a)           Stock
Options - These are options to purchase Common Stock. At the time of Grant
the Committee shall determine, and shall include in the Grant Agreement or other
Plan rules, the option exercise period, the option exercise price, vesting
requirements, and such other terms, conditions or restrictions on the grant or
exercise of the option as the Committee deems appropriate including, without
limitation, the right to receive dividend equivalent payments on vested and/or
unvested options. In addition to other restrictions contained in the Plan, an
option granted under this Section 5(a) may not be exercised after the end of
the calendar year that is 10 years after the date it is granted. Payment of the
option exercise price shall be made in cash or in shares of Common Stock that
the Participant has held for at least six months, or a combination thereof, in
accordance with the terms of the Plan, the Grant Agreement and of any
applicable guidelines of the Committee in effect at the time.

 

(b)           Stock
Appreciation Rights - The Committee may grant Stock Appreciation Rights in
connection with, or independent of, the grant of a Stock Option. Each Stock
Appreciation Right shall be subject to such other terms as the Committee may
determine. A Stock Appreciation Right means the right to transfer and surrender
to the Company all or a portion of a Stock Option in exchange for a cash amount
equal to the excess of (i) the aggregate Fair Market Value, as of the date such
Option or portion thereof is transferred or surrendered, of the Common Stock
underlying by such Option or portion thereof, over (ii) the aggregate exercise
price of such Option or portion thereof, relating to such Common Stock.

 

(c)           Purchase
Stock - Purchase Stock are Shares offered to a Participant at such price as
determined by the Committee, the acquisition of which may make the Participant
eligible to receive Grants under the Plan, including, but not limited to, Stock
Options.

 

(d)           Restricted
Stock – Restricted Stock are Shares granted by the Committee to a
Participant, without charge to the Participant (other than as may be required
by applicable law). The Restricted Stock shall be subject to such other terms
as the Committee may determine.

 

(e)           Dividend
Equivalent Rights – The Committee may grant Dividend Equivalent Rights
either alone or in connection with the grant of a Stock Option. A Dividend
Equivalent Right means the right to receive a payment in respect of one share
of Common Stock (whether or not subject to a Stock Option) equal to the amount
of any dividend paid in respect of one share of Common Stock held by a
shareholder in the Company. Each Dividend Equivalent Right shall be subject to
such terms as the Committee may determine.

 

6.             Limitations
and Conditions

 

(a)           The
number of Shares available for Grants under this Plan shall be 510,230 unless
restricted by applicable law. Shares related to Grants that are forfeited,
terminated, canceled or expire unexercised, shall immediately become available
for new Grants.

 

(b)           No
Grants shall be made under the Plan beyond ten years after the effective date
of the Plan, but the terms of Grants made on or before the expiration of the
Plan may extend beyond such expiration. At the time a Grant is made or amended
or the terms or conditions of a Grant are changed in accordance with the terms
of the Plan or the Grant Agreement, the Committee may provide for limitations
or conditions on such Grant.

 

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(c)           Nothing
contained herein shall affect the right of the Company or any of its
Subsidiaries to terminate any Participant’s employment at any time or for any
reason.

 

(d)           Other
than as specifically provided in the Form of Amended and Restated Management
Stockholder’s Agreement attached hereto as Exhibit A, no benefit under the Plan
shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void.
No such benefit shall, prior to receipt thereof by the Participant, be in any
manner liable for or subject to the debts, contracts, liabilities, engagements,
or torts of the Participant.

 

(e)           Participants
shall not be, and shall not have any of the rights or privileges of,
stockholders of the Company in respect of any Shares purchasable in connection
with any Grant unless and until certificates representing any such Shares have
been issued by the Company to such Participants (or book entry representing
such shares has been made and such Shares have been deposited with the
appropriate registered book-entry custodian).

 

(f)            No
election as to benefits or exercise of any Grant may be made during a
Participant’s lifetime by anyone other than the Participant except by a legal
representative appointed for or by the Participant.

 

(g)           Absent
express provisions to the contrary, any Grant under this Plan shall not be
deemed compensation for purposes of computing benefits or contributions under
any retirement plan of the Company or its Subsidiaries and shall not affect any
benefits under any other benefit plan of any kind now or subsequently in effect
under which the availability or amount of benefits is related to level of
compensation. This Plan is not a “Retirement Plan” or “Welfare Plan” under the
Employee Retirement Income Security Act of 1974, as amended.

 

(h)           Unless
the Committee determines otherwise, no benefit or promise under the Plan shall
be secured by any specific assets of the Company or any of its Subsidiaries,
nor shall any assets of the Company or any of its Subsidiaries be designated as
attributable or allocated to the satisfaction of the Company’s obligations
under the Plan.

 

7.             Transfers
and Leaves of Absence

 

For purposes
of the Plan, unless the Committee determines otherwise: (a) a transfer of a
Participant’s employment without an intervening period of separation among the
Company and any Subsidiary (or among any Subsidiaries) shall not be deemed a
termination of employment, and (b) a Participant who is granted in writing a
leave of absence or who is entitled to a statutory leave of absence shall be
deemed to have remained in the employ of the Company (and any Subsidiary)
during such leave of absence.

 

8.             Adjustments

 

In the event
of any change in the outstanding Common Stock by reason of a stock split,
spin-off, stock combination, reclassification, recapitalization, liquidation,
dissolution, reorganization, merger, Change in Control, or other event
affecting the capital stock of the Company, the Committee may adjust
appropriately (a) the number and kind of shares subject to

 

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the Plan and available for or
covered by Grants and (b) share prices related to outstanding Grants, and make
such other revisions to outstanding Grants as it deems, in good faith, are
equitably required (including, without limitation, to the exercise price of
Stock Options).

 

9.             Merger,
Consolidation, Exchange, Acquisition, Liquidation or Dissolution

 

In its
absolute discretion, acting in good faith, and on such terms and conditions as
it deems appropriate, coincident with or after the grant of any Grant, the
Committee may provide that such Grant cannot be exercised after the
amalgamation, merger or consolidation of the Company with or into another
corporation, the exchange of all or substantially all of the assets of the
Company for the securities of another corporation, the acquisition by another
corporation of 80% or more of the Company’s then outstanding shares of voting
stock or the recapitalization, reorganization, reclassification, liquidation,
dissolution, or other event affecting the capital stock of the Company, and the
Committee shall, on such terms and conditions as it deems appropriate, acting
in good faith, also provide, either by the terms of such Grant or by a
resolution adopted prior to the occurrence of such amalgamation, merger,
consolidation, exchange, acquisition, recapitalization, reorganization,
reclassification, liquidation, dissolution or other event affecting the capital
stock of the Company, that, after written notice to all affected Participants
and for a reasonable period of time prior to such event, such Grant shall be
exercisable as to any Shares subject thereto which is being made unexercisable
after any such event, notwithstanding anything to the contrary herein (but
subject to the provisions of Section 6(b)) and that, upon the occurrence of
such event, such Grant shall terminate and be of no further force or effect; provided,
however, that the Committee may also provide, in its absolute
discretion, that even if the Grant shall remain exercisable after any such
event, from and after such event, any such Grant shall be exercisable only for
the kind and amount of securities and/or other property, or the cash equivalent
thereof (as determined by the Committee in good faith), receivable as a result
of such event by the holder of a number of Shares for which such Grant could
have been exercised immediately prior to such event.

 

10.           Amendment
and Termination

 

(a)           The
Committee shall have the authority to make such amendments to any terms and
conditions applicable to outstanding Grants as are consistent with this Plan
provided that no such action shall modify any Grant in a manner adverse to the
Participant without the Participant’s consent except as such modification is
provided for or contemplated in the terms of the Grant or this Plan (except
that any adjustment that is made pursuant to Section 8 or 9 hereof shall be
made by the Committee reasonably and in good faith).

 

(b)           The
Board of Directors may amend, suspend or terminate the Plan except that no such
action, other than an action under Section 8 or 9 hereof, may be taken which
would, without stockholder approval, increase the aggregate number of Shares
available for Grants under the Plan, decrease the price of outstanding Grants,
change the requirements relating to the Committee, extend the term of the Plan
or be materially adverse to all Participants with respect to any outstanding
Grants.

 

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11.           Governing
Law; International Participants

 

(a)           This
Plan shall be governed by and construed in accordance with the laws of Delaware
applicable therein.

 

(b)           With
respect to Participants who reside or work outside the United States of America
and who are not (and who are not expected to be) “covered employees” within the
meaning of Section 162(m) of the Code, the Committee may, in its sole
discretion, amend the terms of the Plan or Awards with respect to such
Participants in order to conform such terms with the requirements of local law
or to obtain more favorable tax or other treatment for a Participant, the
Company or an Affiliate.

 

12.           Withholding
Taxes

 

The Company
shall have the right to deduct from any cash payment made under the Plan any
minimum federal, state or local income or other taxes required by law to be
withheld with respect to such payment. It shall be a condition to the
obligation of the Company to deliver Shares upon the exercise of a Stock Option
that the Participant pay to the Company such amount as may be requested by the
Company for the purpose of satisfying any liability for such minimum
withholding taxes.

 

13.           Effective
Date and Termination Dates

 

The Plan shall be effective on and as of the date of its approval by
the stockholders of the Company and shall terminate ten years later, subject to
earlier termination by the Board pursuant to Section 10.

 

Original Plan approved by stockholders on
October 4, 2004.

 

Amended and Restated Plan approved by stockholders
on January 6, 2005.

 

Second Amended and Restated Plan approved by
stockholders on March 14, 2005.

 

Third Amended and Restated Plan approved by
stockholders on March 22, 2006.

 

7Exhibit 10.39

 

FORM

 

EXECUTIVE
SUPPLEMENTAL RETIREMENT AGREEMENT

 

THIS AGREEMENT
is effective as of this      day of                       ,
           (the “Effective
Date”) by and between                           ,
a             
corporation, a wholly owned subsidiary of                       ,
a             
corporation (“[Employer]”), and, and                     
(hereinafter “Employee”).

 

WHEREAS, Employee
was employed by and appointed an Executive Officer of                       
effective as of the          day of                   ,
      , and the Employee continues to be employed
by           ;

 

WHEREAS,                       
desired to encourage the Employee to continue his or her employment with the
Employer, and continues to encourage the Employee to continue his or her
employment; and

 

WHEREAS,                       
and Employee intend that this Agreement comply with the requirements of section
409A of the Code.

 

NOW,
THEREFORE, it was agreed and continues to be agreed as follows:

 

1.             Definitions.
For all purposes of this Agreement, except as otherwise expressly provided, or
unless the context otherwise requires, the terms defined in this section have
the meanings assigned to them and include the plural as well as the singular. Certain
terms defining the parties hereto are defined in the first paragraph of this
instrument.

 

A.            “Employer” means                       
and all of its direct or indirect subsidiaries in which it directly or
indirectly has at least an eighty percent (80%) ownership interest, and any
other trade or business with whom which                       
would be considered a single employer under Code section 414(b) or 414(c).

 

B.            “Executive Officer” means all
corporate officers approved by the board of directors of                       .

 

C.            “Supplemental Retirement Benefit”
means the benefit to be paid as described and pursuant to the calculations set
out in Section 2 herein.

 

D.            “Full-time Employment” means a year
during which the Employee has actively worked for the Employer for at least one
thousand (1,000) hours as an Executive Officer. A year shall be defined as a
period of one year beginning on the first day of employment, or the effective
date of this Agreement if later, and on each anniversary of that date.

 

E.             “Time of Service” means the number
of years spent by the Employee in Full-Time Employment beginning on or after
the Effective Date of this Agreement; provided that no credit will be allowed
for Full-Time Employment or service which occurred prior to Employee’s
attainment of the age of thirty (30). The occurrence of a

 

 

Change of
Control does not affect the Time of Service that is credited to the Employee.

 

F.             “Base Salary” means the Employee’s
base salary from                       ,
exclusive of any and all other compensation paid or to be paid by an Employer
including, but not limited to, bonuses, performance awards, vehicle allowances
and financial services, and without regard to any elective deferral thereof
pursuant to any benefit plan maintained by an Employer. In the event of a Change
of Control, Base Salary shall be the greater of the Employee’s Base Salary from
                      
immediately prior to the Change of Control or the Employee’s Base Salary paid
by                       
or any successor in interest to                       
at the time in question.

 

G.            “Named Beneficiary” means the
beneficiary or beneficiaries specifically named and identified on the Employee’s
group life insurance policies with                       .
In the event of multiple life insurance policies, the beneficiary
designation(s) on the policy with the greatest dollar value will govern.

 

H.            “Early Vested Retirement Benefit”
means that benefit specifically defined in Section 6 (B) herein.

 

I.              “Total Disability” means total
disability as determined under                       ’s
Long-Term Disability Insurance Program, provided the Employee is “disabled”
within the meaning of Code section 409A(a)(2)(C).

 

J.             “Change of Control”

 

(a)                                  “Change
of Control” is the occurrence of any of the following on or after               :

 

(i)                                     the
sale, lease, exchange or other transfer, directly or indirectly, of all or
substantially all of the assets of           ,
in one transaction or in a series of related transactions, to any Person;

 

(ii)                                  the
approval by the stockholders of           
of any plan or proposal for the liquidation or dissolution of       ;

 

(iii)                               any
Person, other than a “bona fide underwriter,” is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of (1) 20 percent or more, but not more than 50 percent, of the
combined voting power of           ’s
outstanding securities ordinarily having the right to vote at elections of
directors, unless the transaction resulting in such ownership has been approved
in advance by the “continuity directors,” as defined at Subsection (b), or (2)
more than 50 percent of the combined voting power of       ’s
outstanding securities ordinarily having the right to vote at elections of
directors (regardless of any approval by the continuity directors);

 

(iv)                              a
merger or consolidation to which         
is a party if the

 

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stockholders of       
immediately prior to the effective date of such merger or consolidation have,
solely on account of ownership of securities of       
at such time, “beneficial ownership” (as defined in Rule 13d-3 under the
Exchange Act) immediately following the effective date of such merger or
consolidation of securities of the surviving corporation representing (1) 50
percent or more, but not more than 80 percent, of the combined voting power of
the surviving corporation’s then outstanding securities ordinarily having the
right to vote at elections of directors, unless such merger or consolidation
has been approved in advance by the continuity directors, or (2) less than 50
percent of the combined voting power of the surviving corporation’s then
outstanding securities ordinarily having the right to vote at elections of directors
(regardless of any approval by the continuity directors); or

 

(v)                                 the
Continuity directors cease for any reason to constitute at least a majority of
the Board.

 

(vi)                              For
purposes of this section-

 

(1)                      “Continuity
director” means any individual who was a member of the Board of       
on                   ,
while he or she is a member of the Board, and any individual who subsequently
becomes a member of the Board whose election, or nomination for election by         ’s
stockholders, was approved by a vote of at least a majority of the directors
who are Continuity directors (either by a specific vote or by approval of the
proxy statement of        in which such
individual is named as a nominee for director without objection to such
nomination). For example:

 

(A)                  If a majority of
the nine individuals constituting the Board on                     ,
approved a proxy statement in which two different individuals were nominated to
replace two of the individuals who were members of the Board on             ,
the two newly elected directors would join the seven remaining directors who
were members of the Board on             ,
as Continuity directors.

 

(B)                    If a majority
of the directors in clause (A) above approved a proxy statement in which three
different individuals were nominated to replace three other directors who were
members of the Board on                     ,
the three newly elected directors would also become, along with the other six
directors, Continuity directors. Individuals subsequently joining the Board
could become Continuity directors under the principles reflected in this
example.

 

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(2)                      “Bona fide
underwriter” means a Person engaged in business as an underwriter of securities
that acquires securities of        or                       
from            or                       
through such Person’s participation in good faith in a firm commitment
underwriting until the expiration of 40 days after the date of such
acquisition.

 

(3)                      “Exchange
Act” is the Securities Exchange Act of 1934, as amended. Any reference to a
specific provision of the Exchange Act or to any rule or regulation thereunder
includes a reference to such provision as it may be amended from time to time
to any successor provision.

 

(4)                      “Person”
includes any individual, corporation, partnership, group, association or other “person,”
as such term is used in Section 13(d) or Section 14(d) of the Exchange Act,
other than       , any affiliate or any benefit
plan sponsored by          or an
affiliate. For this purpose an affiliate is (A) any corporation at least a
majority of whose outstanding securities ordinarily having the right to vote at
elections of directors is owned directly or indirectly by       
or (B) any other form of business entity in which           ,
by virtue of a direct or indirect ownership interest, has the right to elect a
majority of the members of such entity’s governing body.

 

K.            “Code” means the Internal Revenue
Code of 1986, as amended (including, when the context requires, all
regulations, interpretations and rulings issued thereunder).

 

L.             “Termination of Employment” means a
severance of an Employee’s employment relationship with all Employers for any
reason, other than on account of death, provided such termination constitutes a
“separation from service” within the meaning of Code section 409A, and any
change in employment that is deemed to constitute a “separation from service”
under Code section 409A.

 

2.             Supplemental
Retirement Benefit. If the Employee continues in Full-Time Employment
without interruption until he or she attains the age of sixty (60) years and
has at least seven (7) years of service as an Executive Officer upon his or her
Termination of Employment then, commencing as of the first day of the second
calendar month immediately following the Termination of Employment,                       
shall pay a Supplemental Retirement Benefit, in equal monthly installments, to
the Employee during his or her remaining lifetime. A monthly payment shall be due
to the Employee only if he or she is living on the payment date. The
Supplemental Retirement Benefit to be paid hereunder shall be equal to one
percent (1%) of the Employee’s Base Salary at the annual rate in effect when he
or she turned age sixty (60), multiplied by the Employee’s Time of Service with
the Employer, not to exceed thirty (30) years. The result of this calculation
shall be divided by twelve (12) to arrive at the monthly benefit payment.

 

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3.             Survivor Benefit.
If, at the time of the Employee’s death, the Employee has satisfied the age and
service requirements for receiving a benefit under Section 2, Section 5 or
Section 6(B), whether or not the benefit had commenced, and the Employee had a
Termination of Employment before the Employee’s death,                       
shall pay to the Employee’s surviving spouse, if any, monthly payments equal to
fifty percent (50%) of the monthly benefit that the Employee was receiving or
would have received had the Employee’s benefit pursuant to the applicable
Section commenced prior to the Employee’s death. Assuming Employer receives
timely notice of Employee’s death, the first payment shall be due as of the
later of (a) the month during which the Employee died and (b) the date as of
which payments would have commenced to the Employee if the Employee had experienced
a Termination of Employment immediately prior to the Employee’s death and
survived until benefits commenced pursuant to Section 2, 5, or 6(B). Payments
to the Employee’s surviving spouse shall cease in the month during which the
Employee, if living, would have attained age 80 or the month in which the
spouse dies, whichever comes earlier.

 

For purposes
of the survivor benefit to be paid under this Section 3, the only person
eligible for this benefit shall be the then living current spouse of the
Employee. No survivor benefit payments shall be paid under this Section 3 to
any other heirs or beneficiaries of the Employee or to any heirs or
beneficiaries of the Employee’s spouse upon the spouse’s death.

 

If payments
are being paid under this Section 3, no payments are owed by Employer under any
other Section of this Agreement, specifically including but not limited to
Section 4.

 

4.             Pre-retirement
Death Benefit. If the Employee either:

 

1)                                      has
experienced a Termination of Employment as a result of Total Disability (and
has not recovered from such Total Disability), or

 

2)             is in Full-Time Employment,

 

and dies at
any time before he or she has satisfied the age and service requirements for
receiving a benefit pursuant to Section 2, Section 5, or Section 6(B),                       
shall pay a pre-retirement death benefit to the Employee’s Named Beneficiary in
a single lump sum amount equal to twice the Employee’s Base Salary at the
annual rate in effect at the time of his or her death or twice the Employee’s
Base Salary at the annual rate in effect at the termination of his or her Termination
of Employment due to Total Disability. Such payment shall be made as soon as
administratively practical after                       
receives written notice of the Employee’s death.

 

If payments
are being paid under this Section 4, then no payments are owed by the Employer
under any other Section of this Agreement, specifically including but not
limited to Section 3.

 

5.             Disability. If
the Employee has completed seven (7) years of service as an Executive Officer
and experiences a Termination of Employment by reason of his or her Total
Disability prior to his or her attaining age fifty-five (55), the period of the
Employee’s Total Disability will count as Time of Service until he or she
attains the age of fifty-five (55) provided he or she has not recovered from
such Total Disability.

 

5

 

If the
Employee’s Termination of Employment occurs by reason of his or her Total
Disability before he or she has completed at least seven (7) years of service
as an Executive Officer, the period of his or her Total Disability will count
as both Time of Service and service as an Executive Officer until he or she has
been credited with seven (7) years of service as an Executive Officer.

 

Notwithstanding
the benefit calculations set out for the Early Vested Retirement Benefit under
Section 6(B), the monthly benefit payable to an Employee who experiences a
Termination of Employment by reason of Total Disability shall commence at the
later of age fifty-five (55) or the date which is seven (7) years after                       
required to achieve at least seven (7) years of service as an Executive Officer
pursuant to this Section 5, and shall be equal to one percent (1%) of the
Employee’s Base Salary at the annual rate in effect at the time of commencement
of Total Disability, multiplied by the Employee’s Time of Service, including
those years granted pursuant to the above accrual provisions, divided by twelve
(12).

 

6.             Termination of
Employment.

 

A.            If the Employee’s Termination of Employment
occurs for any reason, except due to the Employee’s death or Total Disability
as provided above, before the Employee has attained age fifty-five (55) and completed
at least seven (7) years as an Executive Officer, no benefits whatsoever shall
be due Employee under the terms of this Agreement.

 

B.            If the Employee’s Termination of Employment
occurs for any reason, except due to the Employee’s death or Total Disability,
after the Employee has attained the age of fifty-five (55) years and completed
at least seven (7) years of service as an Executive Officer but before the
Employee has attained the age of sixty (60) years, then, commencing as of the
first day of the second calendar month immediately following the Termination of
Employment,                       
shall pay an Early Vested Retirement benefit in equal monthly installments to
the Employee during his or her remaining lifetime. A monthly payment shall be
due to the Employee only if he or she is living on the payment date. The
monthly payment under the Early Vested Retirement Benefit shall be one percent
(1%) of the Employee’s Base Salary at the annual rate in effect at the time of
termination of employment, multiplied by his or her Time of Service accrued
through the date of termination of employment, divided by twelve (12).

 

C.            If the Employer determines that the
Employee is a “key employee” of a publicly traded corporation within the
meaning of Code section 409A(a)(2)(B)(i), then any distributions to the
Employee arising on account of the Employee’s Termination of Employment (other
than on account of death) shall be suspended for six months following such
Termination of Employment. Any payments that were otherwise payable during the
six-month suspension period referred to in the preceding sentence, will be paid
as soon as administratively practicable after the end of such six-month
suspension period.

 

7.             Small Benefit.
If, at the time benefit payments are scheduled to commence under this Agreement
to the Employee or the Employee’s surviving spouse, the lump sum present value
of such benefit is less than $100,000, then such benefit will be paid in a
single lump sum.

 

6

 

The present value of such
benefit will be determined using a reasonable life expectancy table used under
the Jostens Pension Plan D (or any such successor or replacement plan) and a
discount equal to the prime rate in use by the Wells Fargo Bank, Minneapolis,
Minnesota, or any successor organization, at the time of the Employee’s
termination or death. A payment pursuant to this Section 7 shall be in lieu of
all other benefits otherwise due or payable under this Agreement.

 

8.             No Acceleration.
Except as provided in Section 7, neither the time nor schedule of any benefit
payment under this Agreement may be accelerated, except as follows:

 

A.            The payment of a small benefit under
Section 7.

 

B.            To the extent the Employer
determines it necessary to withhold for the payment of FICA taxes imposed under
Code section 3101, 3121(a) or 3121(v)(2) and to pay the additional federal
income tax under Code section 3401 or the corresponding withholding provisions
of applicable state, local or foreign tax laws as a result of the payment of
the FICA taxes, as permitted under Code section 409A.

 

C.            Upon a termination of this
Agreement, if and only to the extent and at the time permitted under Code section
409A and only if the Employer agrees to comply with the requirements of such
termination imposed by Code section 409A

 

9.             Continuation of
Employment. If the Employee continues in the employ of the Employer after
attaining the age of sixty (60) years, any Supplemental Retirement Benefits
otherwise payable hereunder shall be deferred to the time of Termination of Employment.
In such event, there shall be no increases in any benefits hereunder on account
of any Time of Service or increases to Base Salary after the age of sixty (60)
years. Service as an Executive Officer after age sixty (60) shall be recognized
for purposes of vesting for an Employee’s Supplement Retirement Benefit or
Early Vested Retirement Benefit.

 

10.           Life Insurance
Contract. Employer has the right to elect to purchase a life insurance
contract or contracts on the life of the Employee, for the purpose of providing
Employer with cash funds to meet and discharge the payments to be made by it
under this Agreement. In such event, Employer shall at all times be the sole
and absolute owner of any such life insurance contract or contracts and the
sole beneficiary thereof, and shall have the full and unrestricted right to use
or exercise all values, privileges and options available thereunder as it may
desire, without the knowledge or consent of any other person or persons. It is
expressly understood and agreed that notwithstanding any of the terms,
provisions or conditions of this Agreement, neither the Employee nor his or her
beneficiary, his or her estate, or any other person, persons, or their
executors or administrators shall have any right, title or interest whatsoever
in or to any such life insurance contract or contracts.

 

11.           Discharge for
Cause. Notwithstanding any other provisions of this Agreement to the
contrary, in the event the Employee’s employment is terminated for cause, he or
she shall forfeit all amounts otherwise due or payable to him or her hereunder.
For purposes of this Agreement, “terminated for cause” shall mean a Termination
of Employment on account of the

 

7

 

Employee’s poor or
unsatisfactory performance or misconduct, which has or may result in
significant injury to the Employer, its business reputation or financial
structure.

 

12.           Noncompete. In
consideration for the benefits to be paid to the Employee hereunder, the
Employee agrees that from the date of his or her Termination of Employment and
during the entire term he or she is receiving any payments under this Agreement
he or she will refrain from performing services of any kind, as an employee or
otherwise, whether directly or indirectly, to or for the benefit of any person,
firm or corporation whose business the board of directors of                       
shall in good faith determine to be competitive with any of the businesses that
the Employer was involved in at the time of the Employee’s retirement. Notice
of such determination shall be mailed to the Employee at his or her last known
mailing address; in the event that the Employee fails to discontinue such
activities, all amounts then remaining unpaid under this Agreement shall be
automatically forfeited, and the Employee agrees that the Employer shall have
no past or future liability to him or her or to any other person hereunder.

 

13.           Change of Control.
In the event there is a Change of Control of                       ,
the Employee shall, at all times on and after the date of the Change of
Control, be deemed to have completed at least seven (7) years of service as an
Executive Officer. If the Employee’s Termination of Employment, other than by
reason of the Employee’s Total Disability, occurs on or after the date of the
Change of Control but before the Employee attains age fifty-five (55), the
Employee will nevertheless be entitled to receive a benefit pursuant to Section
6(B) upon attaining age fifty-five (55), provided, first, that the Employee’s
actual Time of Service shall be used in calculating such benefit; and, second,
that if the Employee dies before attaining age fifty-five (55), the Employee’s
Named Beneficiary shall receive a death benefit pursuant to Sections 3 or 4
herein.

 

14.           Employment at
Will. The Employee hereby acknowledges that he or she is an Employee at
will and that nothing contained herein constitutes any obligation or commitment
by the Employer to continue the Employee in the Employer’s employment.

 

15.           Release. As a
condition to qualifying for any of the benefit payments provided for hereunder,
the Employee at the termination of his or her employment and prior to receiving
any payments under this Agreement, agrees to execute a general release
agreement releasing the Employer and its directors, officers, employees and
agents from any and all claims or actions of any kind he or she may have
against it and them arising out of the Employee’s employment with the Employer.

 

16.           Additional
Considerations.

 

A.            Neither the Employee, his or her
beneficiary, nor any other person claiming through or under him or her shall
have any right to commute, encumber, or dispose of the right to receive
payments hereunder, all of which payments and the right thereto are expressly
declared to be nonassignable. In the event of any attempted assignment or other
disposition, all benefits hereunder are forfeited and Employer shall have no
further liability to Employee hereunder. This paragraph shall not, however,
restrict a beneficiary’s exercise of a power of appointment conferred upon such
beneficiary by the Employee’s beneficiary designation.

 

8

 

B.            This Agreement shall be binding upon
and inure to the benefit of any successor of                       ,
including, but not limited to, any person, firm, corporation or other business
entity which at any time, whether by merger, purchase, or otherwise acquires
all or substantially all of the assets or business of                       ,
and upon the Employee and any other person claiming through or under the
Employee.

 

C.                                  
shall have the discretionary authority and power to make all determinations as
to the rights to benefits under this Agreement. Any decision by                       
denying a claim by the Employee and any other person claiming through or under
the Employee for benefits under this Agreement shall be stated in writing and
delivered or mailed to the Employee or such other person. Such decision shall
set forth the specific reasons for the denial, written to the best of                       ’s
ability in a manner that may be understood without legal or actuarial counsel. In
addition,                       
shall afford a reasonable opportunity to the Employee or such other person for
a full and fair review of the decision denying such claim.

 

D.            This Agreement may not be amended,
altered or modified, except by a written instrument signed by the parties
hereto, or their respective successors or assigns, and may not be otherwise
terminated except as provided herein.

 

IN WITNESS
WHEREOF, the parties have executed this Agreement in                         ,
                    ,
in duplicate, to be effective on the date first written above.

 

 

	
   

  	
   

  	
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