Document:

Thirteenth Amendment to Loan Agreement

 Exhibit 10.1 
  
 THIRTEENTH AMENDMENT TO 
 LOAN AGREEMENT 
  
 THIS
THIRTEENTH AMENDMENT TO LOAN AGREEMENT (the “Amendment”) dated as of August 25, 2005 between NVR MORTGAGE FINANCE, INC., a Virginia corporation (“Borrower”), the Lenders party to the Loan Agreement referred to below (the
“Lenders”), and U.S. BANK NATIONAL ASSOCIATION, as agent (the “Agent”) for the Lenders. 
  
 WITNESSETH THAT: 
  
 WHEREAS, the Borrower, the Lenders and the Agent are parties to a Loan Agreement dated as of September 7, 1999, as amended by a Consent, Waiver and First
Amendment to Loan Agreement dated as of November 19, 1999, a Second Amendment to Loan Agreement and Second Amendment to Pledge and Security Agreement dated as of September 1, 2000, a Third Amendment to Loan Agreement dated as of February 16, 2001, a
Fourth Amendment to Loan Agreement dated as of August 31, 2001, a Fifth Amendment to Loan Agreement dated as of November 1, 2001, a Consent, Waiver and Sixth Amendment to Loan Agreement dated as of December 14, 2001, a Seventh Amendment to Loan
Agreement dated as of May 17, 2002, an Eighth Amendment to Loan Agreement dated as of August 15, 2002, a Ninth Amendment to Loan Agreement dated as of April 16, 2003, a Tenth Amendment to Loan Agreement dated as of August 28, 2003, an Eleventh
Amendment to Loan Agreement dated as of August 26, 2004 and a Twelfth Amendment to Loan Agreement dated as of October 22, 2004 (as so amended, the “Loan Agreement”), pursuant to which the Lenders provide the Borrower with a revolving
mortgage warehousing credit facility, 
  
 WHEREAS, the Borrower
and the Lenders have agreed to amend the Loan Agreement upon the terms and conditions herein set forth. 
  
 NOW, THEREFORE, for value received, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Lenders and the Agent agree as
follows: 
  
 1. Certain Defined Terms. Each capitalized
term used herein without being defined herein that is defined in the Loan Agreement shall have the meaning given to it therein. 
  
 2. Amendments to Loan Agreement. The Loan Agreement is hereby amended as follows: 
  
 (a) Subsections (ii) and (iv) of the definition of “Borrowing Base” in Section 1.1 of the
Loan Agreement are hereby amended in their entireties to read as follows: 

 (ii) Second Lien Loans shall be 10% of the then Total Commitment, 
  
 (iv) Jumbo Loans shall be 50% of the then Total Commitment,

  
 (b) The definition of “Scheduled
Termination Date” in Section 1.1 of the Loan Agreement is hereby amended in its entirety to read as follows: 
  
 “Scheduled Termination Date” means August 24, 2006. 
  
 (c) Section 2.1(g) of the Loan Agreement is amended by deleting therefrom the dollar amount
“$200,000,000” and inserting in its place the dollar amount “$300,000,000”. 
  
 (d) Sections 2.11(b) and 2.11 (c) of the Loan Agreement are hereby amended in their entireties to read as follows: 
  
 (b) Balance Funded Rate Segment. A Balance Funded
Rate Segment consisting of any portion of a Construction/LotLoan Tranche shall bear interest at the rate of 1.125% per annum. A Balance Funded Rate Segment consisting of any portion of a Gestation Loan Tranche shall bear interest at the rate of
0.65% per annum. A Balance Funded Rate Segment consisting of any portion of a Regular Tranche shall bear interest at the rate of 1.125% per annum. 
  
 (c) LIBOR Segments. A LIBOR Segment consisting of any portion of a Construction/Lot Loan Tranche shall bear interest at a rate per
annum equal to the sum of LIBOR plus 1.125% per annum. A LIBOR Segment consisting of any portion of a Gestation Loan Tranche shall bear interest at a rate per annum equal to the sum of LIBOR plus 0.65% per annum. A LIBOR Segment consisting of any
portion of a Regular Tranche shall bear interest at a rate per annum equal to the sum of LIBOR plus 1.125% per annum. 
  
 (e) Schedule 1.1(a) to the Loan Agreement is hereby amended and restated to read as set forth in Exhibit A attached hereto. 
  
 3. Conditions to Effectiveness of this Amendment. This Amendment shall
be effective as of the date first above written (the “Effective Date”), provided the Agent shall have received at least nine (9) counterparts of this Amendment, duly executed by the Borrower and all of the Lenders, and the following
conditions are satisfied: 
  
 (a) Before and
after giving effect to this Amendment, the representations and warranties of the Borrower in Section 5 of the Loan Agreement and Section 5 of the Security Agreement shall be true and correct as though made on the date hereof, except to the extent
such representations and warranties by their terms are made as of a specific date and except for changes that are permitted by the terms of the Loan Agreement. 
  

 2 

 (b) Before and after giving effect to this Amendment, no Event of Default and no Default
shall have occurred and be continuing. 
  
 (c) No
material adverse change in the business, assets, financial condition or prospects of the Borrower shall have occurred since June 30, 2005. 
  
 (d) The Agent shall have received the following, each duly executed or certified, as the case may be, and dated as of the date of delivery
thereof: 
  
 (i) a copy of resolutions of the
Board of Directors of the Borrower, certified by its respective Secretary or Assistant Secretary, authorizing or ratifying the execution, delivery and performance of this Amendment; 
  
 (ii) a certified copy of any amendment or restatement of the Articles of Incorporation or the Bylaws of the
Borrower made or entered following the date of the most recent certified copies thereof furnished to the Lenders; and 
  
 (iii) such other documents, instruments and approvals as the Agent may reasonably request. 
  
 4. Acknowledgments. The Borrower and each Lender acknowledges that, as
amended hereby, the Loan Agreement remains in full force and effect with respect to the Borrower and the Lenders, and that each reference to the Loan Agreement in the Loan Documents shall refer to the Loan Agreement, as amended hereby. The Borrower
confirms and acknowledges that it will continue to comply with the covenants set out in the Loan Agreement and the other Loan Documents, as amended hereby, and that its representations and warranties set out in the Loan Agreement and the other Loan
Documents, as amended hereby, are true and correct as of the date of this Amendment, except to the extent such representations and warranties by their terms are made as of a specific date and except for changes that are permitted by the terms of the
Loan Agreement. The Borrower represents and warrants that (i) the execution, delivery and performance of this Amendment is within its corporate powers and have been duly authorized by all necessary corporate action; (ii) this Amendment has been duly
executed and delivered by the Borrower and constitutes the legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with its terms (subject to limitations as to enforceability which might result from
bankruptcy, insolvency, or other similar laws affecting creditors’ rights generally and general principles of equity) and (iii) no Events of Default or Default exist. 
  
 5. General. 
  
 (a) The Borrower agrees to reimburse the Agent upon demand for all reasonable expenses (including filing and recording costs and fees,
charges and disbursements of outside counsel to the Agent (determined on the basis of such counsel’s generally applicable rates, which may be higher than the rates such counsel charges the Agent in certain matters) and/or the allocated costs of
in-house counsel incurred from time to time) incurred by the Agent in the preparation, negotiation and execution of this Amendment and any other document required to be furnished herewith, and to pay and save the Lenders harmless from all liability
for any stamp or other taxes which may be payable with respect to the execution or delivery of this Amendment, which obligations of the Borrower shall survive any termination of the Loan Agreement. 
  

 3 

 (b) This Amendment may be executed in several counterparts, each of which, when so
executed, shall be deemed an original but all such counterparts shall constitute but one and the same instrument. 
  
 (c) Any provision of this Amendment which 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 portions hereof or affecting the validity or enforceability of such provisions in any other jurisdiction. 
  
 (d) This Amendment shall be governed by, and construed in
accordance with, the internal law, and not the law of conflicts, of the State of Minnesota, but giving effect to federal laws applicable to national banks. 
  
 (e) This Amendment shall be binding upon the Borrower, the Lenders, the Agent and their respective successors and assigns, and shall inure
to the benefit of the Borrower, the Lenders, the Agent and the successors and assigns of the Lenders and the Agent. 
  
 [Remainder of page intentionally left blank.] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the day and year
first above written. 
  

			
	NVR MORTGAGE FINANCE, INC.
		
	By:	 	 William J. Inman

	Its:	 	President
	
	U.S. BANK NATIONAL ASSOCIATION, as
	Agent and Lender
		
	By:	 	 Kathleen M. Connor

	Its:	 	Vice President

  

 S-1 

			
	GUARANTY BANK
		
	By:	 	 Jenny Ray Stilwell

	Its:	 	Vice President

  

 S-2 

			
	NATIONAL CITY BANK OF KENTUCKY
		
	By:	 	 Jerry Johnston

	Its:	 	Executive Vice President

  

 S-3 

			
	COMERICA BANK
		
	By:	 	 Steve D. Clear

	Its:	 	Officer

  

 S-4 

			
	JPMORGAN CHASE BANK
		
	By:	 	 Cynthia E. Crites

	Its:	 	Senior Vice President

 S-5 

 EXHIBIT A TO 
 THIRTEENTH AMENDMENT 
 TO CREDIT AGREEMENT 
  
 Schedule 1.1(a) to Loan Agreement 
  
 Commitment Schedule 
  

				
	 Lender

	  	 Commitment
 Amount

	 U.S. Bank National Association
 Mortgage Banking Services
 U.S. Bank Place
 800 Nicollet Mall
 Mail Station BC-MN-H03B
 Minneapolis, Minnesota 55402
 Attention: Kathleen Connor
 Telephone: 612-973-0306
 Telecopy: 612-973-0826
	  	$	50,667,500
		
	 Guaranty Bank
 8333 Douglas, 11th Floor
 Dallas, Texas 75225
 Attention: Jenny Stilwell
 Telephone: 214-360-2837
 Telecopy: 214-360-1660
	  	$	35,000,000
		
	 Comerica Bank
 Comerica Tower at Detroit Center
 500 Woodward Avenue
 Detroit, MI 48226
 Attention: Steve D. Clear
 Telephone: 313-222-3042
 Telecopy: 313-222-9295
	  	$	25,000,000
		
	 National City Bank of Kentucky
 101 South 5th Street
 Louisville, KY 40202
 Attention: Mary Jo Reiss
 Telephone: 502-581-4197
 Telecopy: 502-581-4154
	  	$	24,332,500
		
	 JPMorgan Chase Bank
 707 Travis – 6 CBBN 91
 Houston, TX 77002-8091
 Attention: Ms. Cynthia E. Crites
 Telephone: 713-216-4425
 Telecopy: 713-216-1567
	  	$	40,000,000
	 	  	
	

	 TOTAL
	  	$	175,000,000
	 	  	
	

  

 Ex A-1Employment Agreement

 Exhibit 10.14 
  
 EMPLOYMENT AGREEMENT 
  
 This Employment Agreement (“Agreement”) is entered into as of this 10th day of August, 2005, by and between AMERICAN ACHIEVEMENT CORPORATION and
any successors thereto (collectively referred to as the “Company”) and DONALD J. PERCENTI (“Executive”). 
  
 The parties hereby agree as follows: 
  
 1.  EMPLOYMENT.  Executive will serve the Company in an executive capacity as Chief Executive Officer and shall report to the Board of Directors of
the Company and will perform, faithfully and diligently, the services and functions performed and will carry out the functions of his office and furnish his best advice, information, judgment and knowledge with respect to the business of the Company
and its subsidiaries, if any. If Executive is elected to the Board of Directors of the Company, Executive agrees to serve on the Board of Directors of the Company during the term of this Agreement. Executive agrees to perform such duties as
hereinabove described and to devote full-time attention and energy to the business of the Company. Executive will not, during the term of employment under this Agreement, engage in any other business activity if such business activity would
materially impair Executive’s ability to carry out his duties under this Agreement. 
  
 2.  TERM.  The period of the Executive’s employment under this Agreement (the “Employment Term”) shall commence on the date hereof and shall terminate on the second anniversary of
the date of this Agreement; provided, however, that the term of this Agreement may be automatically extended for an additional year at the end of such term (and at the end of each subsequent term), unless at least 60 days prior to any
such anniversary date, the Company shall give notice to Executive that the termination date shall not be so extended. 
  
  
 3.  COMPENSATION AND OTHER BENEFITS. 

 
 3.1.  SALARY.  The salary
compensation to be paid by the Company to Executive and which Executive agrees to accept from the Company for services performed and to be performed by Executive hereunder shall be an annual gross amount, before applicable withholding and other
payroll deductions, of $325,000, payable in equal bi-weekly installments of $12,500, subject to such changes as the Board of Directors of the Company may, in its sole discretion, from time to time determine. 
  
 3.2.  BONUS.  For each full or partial
fiscal year of the Company during the Employment Term, the Company shall pay to the Executive a bonus (“Bonus”) in an amount of up to 70% of Executive’s salary based upon targets or standards (e.g. EBITDA, sales) as shall be
determined by the Board of Directors with respect to each fiscal year (for example, if Executive’s base salary is $325,000 and 100% of the targets and/or standards are achieved in such fiscal year, the bonus payment would be $227,500). All
Bonuses actually earned by the Executive and payable to the Executive (or his estate or other legal representative) for any full or partial fiscal year pursuant to this Section 3.2 shall be paid by the Company within 120 days following the end
of such fiscal year. 
  

 -1- 

 3.3.  INCENTIVE PLAN UNITS.  Upon the execution of this Agreement,
Executive shall be granted additional units under the American Achievement Corporation Executive Cash Incentive Plan (the “CIP”) and the American Achievement Corporation Supplemental Incentive Plan (the “SIP”) in such number as
set forth on Exhibit A hereto, and such new units, together with the existing units held by Executive under such plans, shall have the vesting schedules set forth on Exhibit A. 
  
 3.4.  BENEFITS.  Executive shall be
entitled to participate in such employee benefit programs, plans and policies as are maintained by the Company and as may be established for the employees of the Company from time to time on the same basis as other executive employees are entitled
thereto. In addition, the Company shall pay the Executive a car allowance of up to $750 a month. 
  
 It is understood that the establishment, termination or change in any such Executive employee benefit programs, plans or policies shall be
at the instance of the Company in the exercise of its sole discretion, from time to time, and any such termination or change in such program, plan or policy will not affect this Agreement so long as Executive is treated on the same basis as other
executive employees participating in such program, plan or policy, as the case may be. Upon termination of employment under this Agreement, without regard to the manner in which the termination was brought about, Executive’s rights in such
employee benefit programs, plans or policies shall be governed solely by the terms of the program, plan or policy itself and not this Agreement. Executive shall be entitled to an annual paid vacation in accordance with the Company’s personnel
policy for his years of service completed as an employee of the Company (and, if applicable, the Company’s predecessors). 
  
 4.  WORKING FACILITIES.  During the term of his employment under this Agreement, Executive shall be furnished with a private office, stenographic
services and such other facilities and services as are commensurate with his position with the Company and adequate for the performance of his duties under this Agreement. 
  
 5.  EXPENSES.  During the term of his employment under this Agreement, Executive is authorized to incur reasonable
out-of-pocket expenses for the discharge of his duties hereunder and the promotion of business of the Company, including expenses for entertainment, travel and related items. The Company shall reimburse Executive for all such expenses upon
presentation by Executive from time to time of itemized accounts of expenditures incurred in accordance with customary Company policies. 
  
 6.  TERMINATION.  Executive’s employment under this Agreement may be terminated with or without cause or reason by either Company or Executive
upon the following terms and conditions. 
  
 6.1.  TERMINATION BY COMPANY FOR CAUSE.  If any of the following events or circumstances occur, the Company may terminate Executive’s employment under this Agreement at any time during or at the end of the initial
or any extended term of this Agreement for any of the following causes (each a “Cause”): 
  

	 	(i)	conviction of a felony; 

  

 -2- 

	 	(ii)	willful failure to perform the Executive’s material duties and responsibilities to the Company and any individual, corporation, limited liability company, association,
partnership, estate, trust or any other entity or organization, other than the Company or any of its Affiliates (“Person”) directly or indirectly controlling, controlled by or under common control with the Company, where control may be by
management authority, equity interest or otherwise (“Affiliates”) which remains uncured after 30 days’ notice from the Company specifying in reasonable detail the nature of the willful failure or negligence; 

 

	 	(iii)	fraud or embezzlement with respect to the Company or any of its Affiliates; 

  

	 	(iv)	willful failure or refusal to carry out a lawful and proper directive of the Board; or 

  

	 	(v)	willful, material breach of contractual obligations to the Company with respect to confidentiality, non-competition or non-solicitation. 

  
 Upon payment by the Company to Executive of all salary earned but unpaid,
accrued and unused vacation and any accrued and unpaid bonus, to the date of such termination, the Company shall have no further obligation or liability to Executive and Executive will not be entitled to receive the Termination Payments or
Termination Benefits (as such terms are defined below) except aforesaid vacation and any accrued bonus. 
  
 6.2.  TERMINATION BY COMPANY WITHOUT CAUSE.  In the event of the termination of Executive’s employment under this
Agreement by the Company at any time during or at the end of the initial or any extended term of this Agreement without Cause as defined in Paragraph 6.1 above, Executive will be entitled to receive bi-weekly payments equal to the average of his
bi-weekly compensation in effect within the two years preceding the termination (including, for these purposes, average bi-weekly compensation of Executive from the Company’s predecessors) (“Termination Payments”), less legally
required withholdings, for a period of the greater of 18 months or the remaining term of this Agreement; provided, however, that at the option of Executive, Executive may elect at any time not to be bound by the provisions of
Section 8.1 below, in which event Executive shall not be entitled to any of the foregoing Termination Payments or the Termination Benefits referred to below. In addition to the Termination Payments, Executive will be entitled to elect the
continuation of health benefits under COBRA and the Company will pay the COBRA premiums for an 18-month period, beginning on the date that Executive’s health coverage ceases due to his termination, accrued but unused vacation, and any accrued
bonus (“Termination Benefits”). If Executive obtains employment while he is entitled to receive the Termination Benefits, the payment of the Termination Benefits shall cease upon Executive becoming covered under the new employer’s
health coverage plan at no cost to Executive. The combination of the Termination Payments and the Termination Benefits constitute the sole amount to which Executive is entitled if termination is without Cause. 
  
 6.3.  TERMINATION BY EXECUTIVE WITHOUT GOOD
REASON.  Executive may terminate his employment under this Agreement without Good Reason as defined in Paragraph 6.4 below upon the giving of 90 days written notice of termination. In the event of such 
  

 -3- 

 termination, the Company may elect to pay Executive six months of compensation including unused accrued
vacation and any accrued bonus in lieu of 90 days notice, in which event Executive’s services to the Company will be terminated immediately. No Termination Payments or Termination Benefits other than as set forth in Section 6.3 shall be
payable upon Executive’s termination of this Agreement without Good Reason. 
  
 6.4.  TERMINATION BY EXECUTIVE WITH GOOD REASON.  Executive may terminate his employment under this Agreement for Good
Reason. For purposes of this Agreement, “Good Reason” shall mean: 
  

	 	(i)	failure of the Company to continue the Executive in his/her current position and title; 

  

	 	(ii)	material diminution in the nature or scope of the Executive’s responsibilities, duties or authority; 

  

	 	(iii)	relocation of the Executive’s office anywhere other than Austin, Texas without his/her consent; or 

  

	 	(iv)	failure of the Company to provide the Executive base salary, incentive compensation and other benefits in accordance with the terms of this Agreement, excluding an inadvertent
failure which is cured within ten business days following notice from the Executive specifying in reasonable detail the nature of such failure. 

  
 In the event of termination under this Section 6.4, the Company shall pay to Executive the same Termination Payments and Termination Benefits to
which Executive would have been entitled had he been terminated by the Company without Cause.” 
  
 6.5.  DEATH OR PERMANENT DISABILITY.  Executive’s employment under this Agreement shall terminate upon
Executive’s death or permanent disability (as defined in the Company’s or Executive’s disability insurance policies). Other than accrued but unused vacation and any accrued but unpaid bonus, no Termination Payments or Termination
Benefits shall be payable upon Executive’s death or permanent disability. 
  
 6.6.  RELEASE AGREEMENT.  The Termination Payments and Termination Benefits pursuant to Section 6 are contingent upon Executive executing a Release Agreement after termination in a form to be
provided by the Company. It is understood that Executive may preserve all rights and causes of action in the event of termination by the Company and evidence of release of same will only be by execution of said Release Agreement after termination.

  
 7.  CONFIDENTIALITY.  During and after the term of
employment under this Agreement, Executive agrees that he shall not, without the express written consent of Company, directly or indirectly communicate or divulge to, or use for his own benefit or for the benefit of any other Person, any of
Company’s trade secrets, proprietary data or other confidential information, which trade secrets, proprietary data or other confidential information were communicated to or otherwise learned or acquired by Executive during his employment
relationship with Company 
  

 -4- 

 (“Confidential Information”), except that Executive may disclose such matters to the extent that disclosure is
required (a) at Company’s direction or (b) by a court or other governmental agency of competent jurisdiction. As long as such matters remain trade secrets, proprietary data or other confidential information, Executive shall not use
such trade secrets, proprietary data or other confidential information in any way or in any capacity other than as expressly consented to by Company. 
  
 8.  COVENANT NOT TO COMPETE OR SOLICIT. 
  
 8.1.  The provisions of Section 8.1 of Executive’s original employment agreement dated
as of December 16, 1996 are hereby preserved in their entirety and incorporated herein by reference. 
  
 8.2.  Executive also agrees to refrain during his employment under this Agreement, and in the event of the termination of his
employment under this Agreement for any reason, for one year thereafter, without written permission from the Company, from diverting, taking, soliciting and/or accepting on his own behalf or on the behalf of another Person, the scholastic, licensed
sports, insignia, recognition or affinity business of any customer of the Company or its Affiliates or any potential customer of the Company or its Affiliates whose identity became known to Executive through his employment by the Company and to
which the Company has made a written business proposal or provided written pricing information before the termination of Executive’s employment under this Agreement. 
  
 8.3.  Executive agrees to refrain during his employment under this Agreement, and in the event of
the termination of his employment under this Agreement for any reason for a period of one year thereafter, from inducing or attempting to influence any employee or independent representative of the Company or its Affiliates to terminate his or her
employment or association with the Company or such other entity. 
  
 8.4.  Executive further agrees that the covenants in Sections 8.1 and 8.2 are made to protect the legitimate business interests of the Company, including interests in the Company’s “Confidential
Information,” as defined in Section 7 of this Agreement, and not to restrict his mobility or to prevent him from utilizing his skills. Executive understands as a part of these covenants that the Company intends to exercise whatever legal
recourse against him for any breach of this Agreement and in particular for breach of these covenants. Executive and the Company further agree that, in the event that any provision of this Section 8 is determined by any court of competent
jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, that provision shall be deemed to be modified to permit its enforcement to the maximum extent
permitted by law. It is also agreed that each of the Company’s Affiliates shall have the right to enforce all of your obligations to that Affiliate under this Agreement, including without limitation pursuant to this Section 8. 

 
 9.  CONTROLLING LAW AND PERFORMABILITY.  The execution, validity,
interpretation and performance of this Agreement will be governed by the law of the State of Texas. 
  

 -5- 

 10.  SEPARABILITY.  If any provision of this Agreement is rendered or declared illegal or
unenforceable, all other provisions of this Agreement will remain in full force and effect. 
  
 11.  NOTICES.  All notices, requests, demands, claims and other communications required or permitted to be delivered, given or otherwise provided under this Agreement must be in writing and must be
delivered, given or otherwise provided (a) by hand (in which case, it will be effective upon delivery), (b) by facsimile (in which case, it will be effective upon receipt of confirmation of good transmission) or (c) by overnight
delivery by a nationally recognized courier service (in which case, it will be effective on the Business Day after being deposited with such courier service) in each case, to the address (or facsimile number) listed below: 
  
  

			
	 If to Executive:
	 	Donald J. Percenti
	 	 	c/o American Achievement Corporation
	 	 	7211 Circle S Road
	 	 	Austin, TX 78745
	 	 	Fax: [____________]
		
	 If to the Company:
	 	Chairman of the Board
	 	 	American Achievement Corporation
	 	 	7211 Circle S Road
	 	 	Austin, TX 78745
	 	 	Fax:[____________]

  
  
 12.  ASSIGNMENT.  The rights and obligations of the Company under this Agreement shall inure to the benefit of and be binding upon its successors and
assigns. The rights and obligations of Executive under this Agreement are of a personal nature and shall neither be transferred or assigned in whole or in part by Executive. 
  
 13.  NON-WAIVER.  No waiver of or failure to assert any claim, right, benefit or remedy hereunder shall operate as a
waiver of any other claim, right, benefit or remedy of the Company or Executive. 
  
 14.  REVIEW AND CONSULTATION.  Executive acknowledges that he has had a reasonable time to review and consider this Agreement and has been given the opportunity to consult with an attorney. 
  
 15.  ENTIRE AGREEMENT AND AMENDMENTS.  This Agreement between the Company
and Executive contain the entire agreement of Executive and the Company relating to the matters contained in this Agreement and supersedes all prior agreements and understandings, oral or written, between Executive and the Company with respect to
the subject matter herein. This Agreement may be changed only by an agreement in writing by Executive and the Company. 
  

 -6- 

 IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

  
  

			
	AMERICAN ACHIEVEMENT CORPORATION
		
	By:	 	/s/ Mac LaFollette
	 	 	 
		
	  	 	/s/ Donald J. Percenti
	 	 	Donald J. Percenti

  

 -7- 

 Exhibit A 
  

1.  Cash Incentive Plan 
  

			
	 Existing Time Based Units
	  	6,583.5
	 New Time-Based Units
	  	1,803.6
	 New Total Time-Based Units*
	  	8,387.1

  

	*	New vesting schedule for Total Time-Based Units set forth below. 

  

							
	 	  	Existing
Time-
Based
Units	  	New
Time-
Based
Units	  	New
Total
Time-
Based
Units
	 3/25/2004
	  	0	  	0	  	0
	 3/25/2005
	  	1316.7	  	0	  	1316.7
	 9/25/2005
	  	658.4	  	0	  	658.4
	 3/25/2006
	  	658.4	  	257.7	  	916
	 3/25/2007
	  	1316.7	  	515.3	  	1832
	 3/25/2008
	  	1316.7	  	515.3	  	1832
	 3/25/2009
	  	1316.7	  	515.3	  	1832
	 	  	6583.5	  	1803.6	  	8387.1

  
  

			
	 Existing Liquidity Event Units
	  	6,583.5
	 New Liquidity Event Units
	  	2,576.6
	 New Total Liquidity Event Units
	  	9,160.1

  
  
 2.  Supplemental Incentive Plan 
  

			
	 Existing Units
	  	150
	 New Units
	  	53.1
	 New Total Units
	  	203.1

  

 -8-

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