Document:

Exhibit 10.6

 

EXECUTION COPY

 

PLEDGE AGREEMENT

 

PLEDGE AGREEMENT dated as
of  October 4, 2004, made among JOSTENS
IH CORP., a Delaware corporation (the “Borrower”), JOSTENS SECONDARY
HOLDINGS CORP., a Delaware corporation (“Holdings”), each of the
subsidiaries of the Borrower listed on Schedule 1 hereto (each such
subsidiary individually, a “Subsidiary Pledgor” and, collectively, the “Subsidiary
Pledgors”; the Subsidiary Pledgors, Borrower and Holdings are referred to
collectively as the “Pledgors”) 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 (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, pursuant to the US Guarantee and the
dated as of the date hereof (the “Guarantee”), Holdings and each
Subsidiary Pledgor has unconditionally and irrevocably guaranteed, 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 (as defined below), and, pursuant to the Canadian Guarantee dated
as of the date hereof, the Borrower, Holdings and each Subsidiary Pledgor has
so guaranteed the Obligations of the Canadian Borrower;

 

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

 

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

 

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

 

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 Borrower, Holdings and the Subsidiary Pledgors shall have executed

 

 

and delivered this Pledge
Agreement to the Administrative Agent for the ratable benefit of the Secured
Parties; and

 

WHEREAS, (a) Holdings is the legal and
beneficial owner of all the issued and outstanding shares of capital stock of
the Borrower, (b) the Borrower and the Subsidiary Pledgors are the legal and
beneficial owners of the Equity Interests described under Schedule 2 hereto and
issued by the entities named therein (the pledged Equity Interests described under
(a) and (b) are, together with any Equity Interests obtained in the future of
the issuer of such Pledged Shares (the “After-acquired Shares”),
referred to collectively herein as the “Pledged Shares”) and
(c) each of the Pledgors is the legal and beneficial owner of the
Indebtedness (the “Pledged Debt”) described under Schedule 2 hereto;

 

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 Pledgors 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 and all terms defined
in the Uniform Commercial Code from time to time in effect in the State of New
York (the “NY UCC”) and not defined herein shall have the meanings
specified therein; the term “instrument” shall have the meaning specified in
Article 9 of the NY UCC.

 

(b)                                 As used herein, the
term “Equity Interests” means shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial interests
in a trust or other equity ownership interests in a Person of whatever nature,
and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any of the foregoing.

 

(c)                                  As used herein, the
term “Obligations” means 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

 

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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 Pledge Agreement 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.

 

Notwithstanding the foregoing, no more than
65% of the issued and outstanding capital stock in any Foreign Subsidiary in
the aggregate shall be pledged under the Security Documents.

 

(d)                                 As used herein, the
term “Secured Parties” means (i) the Lenders, (ii) the Letter of Credit
Issuers, (iii) the Swingline Lender, (iv) the Administrative Agent,
(v) 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.

 

(e)                                  “Unfunded
Advances/Participations” shall mean (a) with respect to the Administrative
Agent or the Canadian Administrative Agent, the aggregate amount, if any (i)
made available to the Borrower or the Canadian Borrower, as the case may be, on
the assumption that each Lender has made its pro
rata share of the applicable Borrowing available to the
Administrative Agent or the Canadian Administrative Agent, as the case may be,
as contemplated by Section 2.4(b) of the Credit Agreement and (ii) with respect
to which a corresponding amount shall not in fact have been made available to
the Administrative Agent or the Canadian Administrative Agent, as the case may
be, by any such Lender, (b) with respect to the Swingline Lender, the aggregate
amount, if any, of participations in respect of any outstanding Swingline Loan
that shall not have been funded by the applicable Lenders in accordance with
Section 2.1(d) of the Credit Agreement and (c) with respect to any Letter of
Credit Issuer, the aggregate amount, if any, of unreimbursed payments under any
Letter of Credit made by such Letter of Credit Issuer that shall not have been
reimbursed by the Borrower or the Canadian Borrower, as applicable, pursuant to
Section 3.4(a) of the Credit Agreement, or repaid for the account of such
Letter of Credit Issuer by the applicable L/C Participants pursuant to Section
3.3(e) of the Credit Agreement.

 

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

 

(g)                                 The words “hereof,”
“herein” and “hereunder” and words of similar import when used in this Pledge
Agreement shall refer to this Pledge Agreement as a whole and not to any
particular provision of this Pledge Agreement, and Section references are to
Sections

 

3

 

of this Pledge Agreement unless otherwise specified.  The words “include”, “includes” and “including”
shall be deemed to be followed by the phrase “without limitation”.

 

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

 

2.                                       Grant
of Security.  Each
Pledgor hereby transfers, assigns and pledges to the Administrative Agent for
the ratable benefit of the Secured Parties, and hereby grants to the
Administrative Agent for the ratable benefit of the Secured Parties, a security
interest (“Security  Interest”) in all of
such Pledgor’s right, title and interest in the following, whether now owned or
existing or hereafter acquired or existing (collectively, the “Collateral”):

 

(a)                                  the Pledged Shares
held by such Pledgor and the certificates representing such Pledged Shares and
any interest of such Pledgor in the entries on the books of the issuer of the
Pledged Shares or any financial intermediary pertaining to the Pledged Shares
and all dividends, cash, warrants, rights, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the Pledged Shares, provided
that the Pledged Shares under this Pledge Agreement shall not include more
than 65 percent of the issued and outstanding Equity Interests in any Foreign
Subsidiary;

 

(b)                                 the Pledged Debt and
the instruments evidencing the Pledged Debt owed to such Pledgor, and all
interest, cash, instruments and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of such Pledged Debt; and

 

(c)                                  to the extent not
covered by clauses (a) and (b) above, respectively, all proceeds of any or all
of the foregoing Collateral.  For
purposes of this Pledge Agreement, the term “proceeds” includes whatever is
receivable or received when Collateral or proceeds are sold, exchanged,
collected or otherwise disposed of, whether such disposition is voluntary or
involuntary, and includes proceeds of any indemnity or guarantee payable to any
Pledgor or the Administrative Agent from time to time with respect to any of
the Collateral.

 

3.                                       Security
for Obligations.  This
Pledge Agreement secures the payment of all Obligations of each Credit
Party.  Without limiting the generality
of the foregoing, this Pledge Agreement secures the payment of all amounts that
constitute part of the Obligations and would be owed by any of the Credit
Parties to the Administrative Agent, the Canadian Administrative Agent or the
Lenders under the Credit Documents but for the fact that they are unenforceable
or not allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving any Credit Party.

 

4.                                       Delivery
of the Collateral.  All certificates or
instruments, if any, representing or evidencing the Collateral shall be
promptly delivered to and held by or on behalf of the Administrative Agent
pursuant hereto and shall be in suitable form for transfer by delivery, or
shall be accompanied by duly executed instruments of transfer or assignment in
blank, all in form and substance reasonably satisfactory to the Administrative
Agent.  The Administrative Agent shall
have the right, at any time after the occurrence and during the continuance of
an Event of Default and without notice to any Pledgor, to transfer to or to
register

 

4

 

in the name of the Administrative Agent or any of its nominees any or
all of the Pledged Shares.  Each
delivery of Collateral (including any After-acquired Shares) shall be
accompanied by a schedule describing the securities theretofore and then being
pledged hereunder, which shall be attached hereto as Schedule 2 and made a part
hereof, provided that the failure to attach any such schedule hereto shall not
affect the validity of such pledge of such securities.  Each schedule so delivered shall supersede
any prior schedules so delivered.

 

5.                                       Representations
and Warranties.  Each
Pledgor represents and warrants as follows:

 

(a)                                  Schedule 2 hereto (i)
correctly represents as of the date hereof (A) the issuer, the certificate
number, the Pledgor and the record and beneficial owner, the number and class
and the percentage of the issued and outstanding Equity Interests of such class
of all Pledged Shares and (B) the issuer, the initial principal amount, the
Pledgor and holder, date of and maturity date of all Pledged Debt and (ii)
together with the comparable schedule to each supplement hereto, includes all
Equity Interests, debt securities and promissory notes required to be pledged
hereunder.  Except as set forth on
Schedule 2, the Pledged Shares represent all (or 65 percent in the case of
pledges of Foreign Subsidiaries) of the issued and outstanding Equity Interests
of each class of Equity Interests in the issuer on the date hereof.

 

(b)                                 Such Pledgor is the
legal and beneficial owner of the Collateral pledged or assigned by such
Pledgor hereunder free and clear of any Lien, except for the Lien created by
this Pledge Agreement.

 

(c)                                  As of the date of
this Pledge Agreement, the Pledged Shares pledged by such Pledgor hereunder
have been duly authorized and validly issued and, in the case of Pledged Shares
issued by a corporation, are fully paid and non-assessable.

 

(d)                                 The execution and
delivery by such Pledgor of this Pledge Agreement and the pledge of the
Collateral pledged by such Pledgor hereunder pursuant hereto create a valid and
perfected first-priority security interest in the Collateral, securing the
payment of the Obligations, in favor of the Administrative Agent for the
ratable benefit of the Secured Parties.

 

(e)                                  Such Pledgor has full
power, authority and legal right to pledge all the Collateral pledged by such
Pledgor pursuant to this Pledge Agreement and this Pledge Agreement constitutes
a legal, valid and binding obligation of each Pledgor, enforceable in
accordance with its terms, except as enforceability thereof may be limited by
bankruptcy, insolvency or other similar laws affecting creditors’ rights
generally and subject to general principles of equity.

 

6.                                       Certification
of Limited Liability Company, Limited Partnership Interests and Pledged Debt.  (a) The Equity Interests in any Domestic
Subsidiary that is organized as a limited liability company or limited
partnership and pledged hereunder shall be represented by a certificate and in
the organizational documents of such Domestic Subsidiary, the applicable
Pledgor shall cause the issuer of such interests to elect to treat such
interests as a “security” within the meaning of Article 8 of the Uniform
Commercial Code of its jurisdiction of organization or formation, as
applicable, by including in its organizational documents language

 

5

 

substantially similar to the following and, accordingly, such interests
shall be governed by Article 8 of the Uniform Commercial Code:

 

“The
Partnership/Company hereby irrevocably elects that all membership interests in
the Partnership/Company shall be securities governed by Article 8 of the
Uniform Commercial Code of [jurisdiction of organization or formation, as
applicable].  Each certificate
evidencing partnership/membership interests in the Partnership/Company shall
bear the following legend:  “This
certificate evidences an interest in [name of Partnership/LLC] and shall be a
security for purposes of Article 8 of the Uniform Commercial Code.”  No change to this provision shall be
effective until all outstanding certificates have been surrendered for
cancelation and any new certificates thereafter issued shall not bear the
foregoing legend.”

 

(b)                                 Each Pledgor will
cause any Indebtedness for borrowed money in an aggregate principal amount
exceeding $1,000,000 owed to such Pledgor and required to be pledged hereunder
to be evidenced by a duly executed promissory note that is pledged and
delivered to the Administrative Agent pursuant to the terms hereof.

 

7.                                       Further
Assurances.  Each
Pledgor agrees that at any time and from time to time, at the expense of such
Pledgor, it will execute any and all further documents, financing statements,
agreements and instruments, and take all such further actions (including the
filing and recording of financing statements, fixture filings, mortgages, deeds
of trust and other documents), which may be required under any applicable law,
or which the Administrative Agent or the Required Lenders may reasonably
request, in order (x) to perfect and protect any pledge, assignment or
security interest granted or purported to be granted hereby  (including the priority thereof) or
(y) to enable the Administrative Agent to exercise and enforce its rights
and remedies hereunder with respect to any Collateral.

 

8.                                       Voting
Rights; Dividends and Distributions; Etc.  (a) So long as no Event of Default
shall have occurred and be continuing:

 

(i)                                     Each
Pledgor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Collateral or any part thereof for any purpose not
prohibited by the terms of this Pledge Agreement or the other Credit Documents.

 

(ii)                                  The
Administrative Agent shall execute and deliver (or cause to be executed and
delivered) to each Pledgor all such proxies and other instruments as such
Pledgor may reasonably request for the purpose of enabling such Pledgor to
exercise the voting and other rights that it is entitled to exercise pursuant
to paragraph (i) above.

 

(iii)                               Subject
to paragraph (c) below, each Pledgor shall be entitled to receive and retain
and use, free and clear of the Lien of this Pledge Agreement, any and all
dividends, distributions, principal and interest made or paid in respect of the
Collateral to the extent permitted by the Credit Agreement; provided, however,
that any and all noncash dividends, interest, principal or other distributions
that would constitute Pledged

 

6

 

Shares or
Pledged Debt, whether resulting from a subdivision, combination or
reclassification of the outstanding Equity Interests of the issuer of any
Pledged Shares or received in exchange for Pledged Shares or Pledged Debt or
any part thereof, or in redemption thereof, or as a result of any merger,
consolidation, acquisition or other exchange of assets to which such issuer may
be a party or otherwise, shall be, and shall be forthwith delivered to the
Administrative Agent to hold as, Collateral and shall, if received by such
Pledgor, be received in trust for the benefit of the Administrative Agent, be
segregated from the other property or funds of such Pledgor and be forthwith
delivered to the Administrative Agent as Collateral in the same form as so
received (with any necessary indorsement).

 

(b)                                 Upon written notice to
each Pledgor by the Administrative Agent following the occurrence and during
the continuance of an Event of Default,

 

(i)                                     all
rights of such Pledgor to exercise or refrain from exercising the voting and
other consensual rights that it would otherwise be entitled to exercise
pursuant to Section 8(a)(i) shall cease, and all such rights shall
thereupon become vested in the Administrative Agent, which shall thereupon have
the sole right to exercise or refrain from exercising such voting and other
consensual rights during the continuance of such Event of Default, provided
that, unless otherwise directed by the Required Lenders, the Administrative
Agent shall have the right from time to time following the occurrence and
during the continuance of an Event of Default to permit the Pledgors to
exercise such rights.  After all Events
of Default have been cured or waived and the Borrower has delivered to the
Administrative Agent a certificate to that effect, each Pledgor will have the
right to exercise the voting and consensual rights that such Pledgor would
otherwise be entitled to exercise pursuant to the terms of Section 8(a)(i) (and
the obligations of the Administrative Agent under Section 8(a)(ii) shall be
reinstated);

 

(ii)                                  all
rights of such Pledgor to receive the dividends, distributions and principal
and interest payments that such Pledgor would otherwise be authorized to
receive and retain pursuant to Section 8(b) shall cease, and all such
rights shall thereupon become vested in the Administrative Agent, which shall
thereupon have the sole right to receive and hold as Collateral such dividends,
distributions and principal and interest payments during the continuance of
such Event of Default.  After all Events
of Default have been cured or waived and the Borrower has delivered to the
Administrative Agent a certificate to that effect, the Administrative Agent
shall repay to each Pledgor (without interest) all dividends, distributions and
principal and interest payments that such Pledgor would otherwise be permitted
to receive, retain and use pursuant to the terms of Section 8(b);

 

(iii)                               all
dividends, distributions and principal and interest payments that are received
by such Pledgor contrary to the provisions of Section 8(b) shall be
received in trust for the benefit of the Administrative Agent, shall be
segregated from other property or funds of such Pledgor and shall forthwith be
delivered to the Administrative Agent as Collateral in the same form as so
received (with any necessary indorsements); and

 

(iv)                              in
order to permit the Administrative Agent to receive all dividends,
distributions and principal and interest payments to which it may be entitled
under

 

7

 

Section 8(b)
above, to exercise the voting and other consensual rights that it may be
entitled to exercise pursuant to Section 8(c)(i) above, and to receive all
dividends, distributions and principal and interest payments that it may be
entitled to under Sections 8(c)(ii) and (c)(iii) above, such Pledgor
shall, if necessary, upon written notice from the Administrative Agent, from
time to time execute and deliver to the Administrative Agent, appropriate
proxies, dividend payment orders and other instruments as the Administrative
Agent may reasonably request.

 

9.                                       Transfers and
Other Liens; Additional Collateral; Etc. 
Each Pledgor shall (a) not (i) except as permitted by the Credit
Agreement, sell or otherwise dispose of, or grant any option or warrant with
respect to, any of the Collateral or (ii) create or suffer to exist any
consensual Lien upon or with respect to any of the Collateral, except for the
Lien under this Pledge Agreement, provided that in the event such
Pledgor sells or otherwise disposes of assets permitted by the Credit Agreement
and such assets are or include any of the Collateral, the Administrative Agent
shall release such Collateral to such Pledgor free and clear of the Lien under
this Pledge Agreement concurrently with the consummation of such sale;

 

(b)                                 pledge and, if
applicable, cause each Domestic Subsidiary to pledge, to the Administrative
Agent for the benefit of the Secured Parties, immediately upon acquisition
thereof, all the capital stock and all evidence of Indebtedness held or
received by such Pledgor or Domestic Subsidiary required to be pledged
hereunder pursuant to Section 9.12 of the Credit Agreement, in each case
pursuant to a supplement to this Pledge Agreement substantially in the form of
Annex A hereto (it being understood that the execution and delivery of such a
supplement shall not require the consent of any Pledgor hereunder and that the
rights and obligations of each Pledgor hereunder shall remain in full force and
effect notwithstanding the addition of any new Subsidiary Pledgor as a party to
this Pledge Agreement); and

 

(c)                                  defend its and the
Administrative Agent’s title or interest in and to all the Collateral (and in
the Proceeds thereof) against any and all Liens (other than the Lien of this
Pledge Agreement), however arising, and any and all Persons whomsoever.

 

10.                                 Administrative
Agent Appointed Attorney-in-Fact. 
Each Pledgor hereby appoints, which appointment is irrevocable and
coupled with an interest, the Administrative Agent as such Pledgor’s
attorney-in-fact, with full authority in the place and stead of such Pledgor
and in the name of such Pledgor or otherwise, to take any action and to execute
any instrument, in each case after the occurrence and during the continuance of
an Event of Default, that the Administrative Agent may deem reasonably
necessary or advisable to accomplish the purposes of this Pledge Agreement,
including to receive, indorse and collect all instruments made payable to such
Pledgor representing any dividend, distribution or principal or interest payment
in respect of the Collateral or any part thereof and to give full discharge for
the same.

 

11.                                 The Administrative
Agent’s Duties.  The powers
conferred on the Administrative Agent hereunder are solely to protect its
interest in the Collateral and shall not impose any duty upon it to exercise
any such powers.  Except for the safe
custody of any Collateral in its possession and the accounting for moneys
actually received by it hereunder, the Administrative Agent shall have no duty
as to any Collateral, as to ascertaining or taking action with respect to
calls, conversions, exchanges, maturities, tenders or other matters relative to
any Pledged Shares or Pledged Debt, whether or not the Administrative Agent or
any other Secured

 

8

 

Party has or is deemed to have knowledge of such matters, or as to the
taking of any necessary steps to preserve rights against any parties or any
other rights pertaining to any Collateral. 
The Administrative Agent shall be deemed to have exercised reasonable
care in the custody and preservation of any Collateral in its possession if
such Collateral is accorded treatment substantially equal to that which the
Administrative Agent accords its own property.

 

12.                                 Remedies.  If any Event of Default shall have occurred
and be continuing:

 

(a)                                  The Administrative
Agent may exercise in respect of the Collateral, in addition to other rights
and remedies provided for herein or otherwise available to it, all the rights
and remedies of a secured party upon default under the NY UCC or any other
applicable law and also may without notice except as specified below, sell the
Collateral or any part thereof in one or more parcels at public or private
sale, at any exchange broker’s board or at any of the Administrative Agent’s
offices or elsewhere, for cash, on credit or for future delivery, at such price
or prices and upon such other terms as are commercially reasonable irrespective
of the impact of any such sales on the market price of the Collateral.  The Administrative Agent shall be authorized
at any such sale (if it deems it advisable to do so) to restrict the
prospective bidders or purchasers of Collateral to Persons who will represent
and agree that they are purchasing the Collateral for their own account for
investment and not with a view to the distribution or sale thereof, and, upon
consummation of any such sale, the Administrative Agent shall have the right to
assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold.  Each purchaser at
any such sale shall hold the property sold absolutely free from any claim or
right on the part of any Pledgor, and each Pledgor hereby waives (to the extent
permitted by law) all rights of redemption, stay and/or appraisal that it now
has or may at any time in the future have under any rule of law or statute now
existing or hereafter enacted.  The
Administrative Agent or any Secured Party shall have the right upon any such
public sale, and, to the extent permitted by law, upon any such private sale,
to purchase the whole or any part of the Collateral so sold, and the
Administrative Agent or such Secured Party may subject to (x) the satisfaction
in full in cash of all payments due pursuant to Section 12(b)(i), and (y) the
ratable satisfaction of the Obligations in accordance with Section 12(b)(ii)
pay the purchase price by crediting the amount thereof against the
Obligations.  Each Pledgor agrees that,
to the extent notice of sale shall be required by law, at least ten days’
notice to such Pledgor of the time and place of any public sale or the time
after which any private sale is to be made shall constitute reasonable
notification.  The Administrative Agent
shall not be obligated to make any sale of Collateral regardless of notice of sale
having been given.  The Administrative
Agent may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further
notice, be made at the time and place to which it was so adjourned.  To the extent permitted by law, each Pledgor
hereby waives any claim against the Administrative Agent arising by reason of
the fact that the price at which any Collateral may have been sold at such a
private sale was less than the price that might have been obtained at a public
sale, even if the Administrative Agent accepts the first offer received and
does not offer such Collateral to more than one offeree.

 

(b)                                 The Administrative
Agent shall apply the proceeds of any collection or sale of the Collateral at
any time after receipt as follows:

 

(i)                                     first,
to the payment of all reasonable and documented costs and expenses incurred by
the Administrative Agent in connection with such collection or sale or

 

9

 

otherwise in
connection with this Pledge Agreement, the other Credit Documents or any of the
Obligations, including all court costs and the reasonable fees and expenses of
its agents and legal counsel, the repayment of all advances made by the
Administrative Agent hereunder or under any other Credit Document on behalf of
any Pledgor and any other reasonable and documented costs or expenses incurred
in connection with the exercise of any right or remedy hereunder or under any
other Credit Document;

 

(ii)                                  second,
to the payment in full of the Unfunded Advances/Participations (the amounts so
applied to be distributed between or among the Administrative Agent, the
Canadian Administrative Agent, the Swingline Lender and any Letter of Credit
Issuer pro
rata in accordance with the amounts of Unfunded
Advances/Participations owed to them on the date of any distribution);

 

(iii)                               third,
to the Secured Parties, an amount equal to all Obligations owing to them on the
date of any such distribution, and, if such moneys shall be insufficient to pay
such amounts in full, then ratably (without priority of any one over any other)
to such Secured Parties in proportion to the unpaid amounts thereof; and

 

(iv)                              fourth,
any surplus then remaining shall be paid to the Pledgors or their successors or
assigns or to whomsoever may be lawfully entitled to receive the same or as a
court of competent jurisdiction may direct.

 

Upon any sale of the Collateral by the
Administrative Agent (including pursuant to a power of sale granted by statute
or under a judicial proceeding), the receipt of the Administrative Agent or of
the officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral so sold and such purchaser or purchasers shall not
be obligated to see to the application of any part of the purchase money paid
over to the Administrative Agent or such officer or be answerable in any way
for the misapplication thereof.

 

(c)                                  The Administrative
Agent may exercise any and all rights and remedies of each Pledgor in respect
of the Collateral.

 

(d)                                 All payments received
by any Pledgor after the occurrence and during the continuance of an Event of
Default in respect of the Collateral shall be received in trust for the benefit
of the Administrative Agent, shall be segregated from other property or funds
of such Pledgor and shall be forthwith delivered to the Administrative Agent as
Collateral in the same form as so received (with any necessary indorsement).

 

(e)                                  Notwithstanding any
other provision of this Pledge Agreement, none of the rights and remedies
granted to the Administrative Agent herein in respect of any Nova Scotia
unlimited liability company (“NSULC”), now owned or hereafter acquired
by a Pledgor (other than the grant of the security interest) shall be
exercisable or otherwise vest in the Administrative Agent, the Lenders or any
of the other Secured Parties and the applicable Pledgor shall remain the legal
and beneficial owner of any pledged NSULC stock and shall retain all of the
incidents of such ownership until (i) an Event of Default has occurred, and
(ii) the Administrative Agent has given notice to the applicable Pledgor of
such Event of Default and its intention to exercise such rights and remedies in
respect of such NSULC stock.  Nothing
contained herein shall be

 

10

 

construed to subject the Administrative Agent, the Lenders or any of
the other Secured Parties to liability as a member or owner of shares of a
NSULC.

 

13.                                 Amendments, etc.
with Respect to the Obligations; Waiver of Rights.  Each Pledgor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against any
Pledgor and without notice to or further assent by any Pledgor, (a) any demand
for payment of any of the Obligations made by the 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 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 Pledge Agreement or any property subject thereto.  When making any demand hereunder against any
Pledgor, the Administrative Agent or any other Secured Party may, but shall be
under no obligation to, make a similar demand on the Borrower or any Pledgor or
pledgor, and any failure by the Administrative Agent or any other Secured Party
to make any such demand or to collect any payments from the Borrower or any
Pledgor or pledgor or any release of the Borrower or any Pledgor or pledgor
shall not relieve any Pledgor in respect of which a demand or collection is not
made or any Pledgor 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 Pledgor.  For
the purposes hereof “demand” shall include the commencement and continuance of
any legal proceedings.

 

14.                                 Continuing Security
Interest; Assignments Under the Credit Agreement; Release.  (a)This Pledge Agreement shall remain in
full force and effect and be binding in accordance with and to the extent of
its terms upon each Pledgor 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 (other than contingent indemnity obligations not then due)
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.

 

11

 

(b)                                 A Subsidiary Pledgor
shall automatically be released from its obligations hereunder and the Pledge
of such Subsidiary Pledgor shall be automatically released upon the
consummation of any transaction permitted by the Credit Agreement as a result
of which such Subsidiary Pledgor ceases to be a Domestic Subsidiary of the
Borrower.

 

(c)                                  Upon any sale or
other transfer by any Pledgor of any Collateral that is permitted under the
Credit Agreement, or upon the effectiveness of any written consent to the
release of the security interest granted hereby in any Collateral pursuant to
Section 13.1 of the Credit Agreement, the obligations of such Pledgor with
respect to such Collateral shall be automatically released and such Collateral
sold free and clear of the Lien and Security Interests created hereby.

 

(d)                                 In connection with any
termination or release pursuant to paragraph (a), (b) or (c), the Administrative
Agent shall execute and deliver to any Pledgor, at such Pledgor’s expense, all
documents that such Pledgor shall reasonably request to evidence such
termination or release.  Any execution
and delivery of documents pursuant to this Section 14 shall be without recourse
to or warranty by the Administrative Agent.

 

15.                                 Reinstatement.  This Pledge Agreement 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
any Pledgor, or upon or as a result of the appointment of a receiver, intervenor
or conservator of, or trustee or similar officer for, the Borrower or any other
Pledgor or any substantial part of its property, or otherwise, all as though
such payments had not been made.

 

16.                                 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 any Subsidiary Pledgor 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.

 

17.                                 Counterparts.  This Pledge Agreement may be executed by one
or more of the parties to this Pledge Agreement 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 Pledge Agreement signed by all the parties shall be lodged with the
Administrative Agent and the Borrower.

 

18.                                 Severability.  Any provision of this Pledge Agreement 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.

 

19.                                 Integration.  This Pledge Agreement represents the
agreement of each of the Pledgors with respect to the subject matter hereof and
there are no promises, undertakings,

 

12

 

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.

 

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

 

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

 

(b)                                 Neither the
Administrative Agent nor any Secured Party shall by any act (except by a
written instrument pursuant to Section 20(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 such other 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.

 

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

 

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

 

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

 

24.                                 Submission
to Jurisdiction; Waivers.  Each of
the Pledgors hereby irrevocably and unconditionally:

 

(a)                                  submits for itself
and its property in any legal action or proceeding relating to this Pledge
Agreement, 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

 

13

 

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 Pledgor at its address referred to in
Section 16 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 24 any
special, exemplary, punitive or consequential damages.

 

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

 

14

 

IN WITNESS WHEREOF, each of the undersigned
has caused this Pledge Agreement 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, Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  JOSTENS IH
  CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ David A.
  Tayeh

  
	
   

  	
   

  	
   

  	
  Name:  David Tayeh

  
	
   

  	
   

  	
   

  	
  Title:    Secretary

  

 

 

SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS
CORP., EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO,
AND CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM
TIME TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

 

 

	
  SUBSIDIARY PLEDGORS:

  
	
  JOSTENS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A. Tayeh

  	
   

  
	
   

  	
   

  	
  Name:  David Tayeh

  
	
   

  	
   

  	
  Title:    Chief Financial Officer

  

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND CREDIT
  SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME TO
  TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  AHC I ACQUISITION CORP.

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Name:  Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Title:    Secretary

  	
   

  
					

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND
  CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME
  TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  AKI, INC.

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Name:  Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Title:    Secretary

  	
   

  
					

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND
  CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME
  TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  AKI HOLDING CORP.

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Name:  Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Title:    Secretary

  	
   

  
					

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND
  CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME
  TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  ANTHOLOGY, INC.

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Title:    President

  	
   

  
					

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND
  CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME
  TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  IST, CORP.

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Name:  Kenneth A. Budde

  	
   

  
	
   

  	
   

  	
  Title:    Secretary

  	
   

  
					

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND
  CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME
  TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  PRECISION OFFSET PRINTING COMPANY.

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Title:    President

  	
   

  
					

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND
  CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME
  TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  THE LEHIGH PRESS, INC.

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Title:    President

  	
   

  
					

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND
  CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME
  TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  VON HOFFMANN CORPORATION

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Title:    President

  	
   

  
					

 

 

	
   

  	
  SIGNATURE PAGE TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004,
  AMONG JOSTENS IH CORP. (THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP.,
  EACH OF THE SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND
  CREDIT SUISSE FIRST BOSTON, AS ADMINISTRATIVE AGENT FOR THE LENDERS FROM TIME
  TO TIME PARTIES TO THE CREDIT AGREEMENT REFERRED TO THEREIN.

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBSIDIARY PLEDGORS:

  	
   

  
	
   

  	
  VON HOFFMANN HOLDINGS INC.

  	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Name:  Robert S. Mathews

  	
   

  
	
   

  	
   

  	
  Title:    President

  	
   

  
					

 

 

SIGNATURE PAGE
TO THE PLEDGE AGREEMENT DATED AS OF OCTOBER 4, 2004, AMONG JOSTENS IH CORP.
(THE “BORROWER”), JOSTENS SECONDARY HOLDINGS CORP., EACH OF THE
SUBSIDIARIES OF THE BORROWER LISTED ON SCHEDULE 1 HERETO, AND CREDIT SUISSE
FIRST BOSTON, 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

  

 

 

SCHEDULE 1

TO THE PLEDGE AGREEMENT

 

SUBSIDIARY PLEDGORS

 

 

SCHEDULE 2

TO THE PLEDGE AGREEMENT

 

Pledged Shares

 

[Schedule To Come]

 

 

Pledged Debt

 

 

[Schedule To Come]

 

 

ANNEX A 

TO THE PLEDGE AGREEMENT

 

SUPPLEMENT NO. [  ] dated
as of
[            ],
200_ to the PLEDGE AGREEMENT dated as of October 4, 2004, made among JOSTENS IH
CORP., a Delaware corporation (the “Borrower”), JOSTENS SECONDARY
HOLDINGS CORP., a Delaware corporation (“Holdings”), each of the
subsidiaries of the Borrower listed on Schedule 1 to the Pledge Agreement (each
such subsidiary individually, a “Subsidiary Pledgor” and, collectively,
the “Subsidiary Pledgors”; the Borrower, Subsidiary Pledgors and
Holdings are referred to collectively as the “Pledgors”), 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 (a) the Credit Agreement (the “Credit Agreement”)
dated as of October 4, 2004, among JOSTENS IH CORP., a Delaware corporation
(the “Borrower”), JOSTENS CANADA LTD., a company organized under the
laws of Canada (the “Canadian Borrower”), certain subsidiaries of the
Borrower (each a “Subsidiary” and, collectively,  the “Subsidiaries”), and 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”), and (b) the US Guarantee dated as of the date
hereof and made in favor of the Administrative Agent and the Canadian Guarantee
dated as of the date hereof and made in favor of the Canadian Administrative
Agent.

 

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

 

C. 
The Pledgors have entered into the Pledge Agreement in order to induce
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.

 

D. 
The undersigned [Pledgors] [Domestic Subsidiaries] (each a “Additional
Pledgor”) are (a) the legal and beneficial owners of the Equity Interests
described under Schedule 1 hereto and issued by the entities named therein
(such pledged Equity Interests, together with any Equity Interests obtained in
the future of the issuer of such Pledged Shares (the “After-acquired Additional
Pledged Shares”), referred to collectively herein as the “Additional
Pledged Shares”) and (b) the legal and beneficial owners of the
Indebtedness (the “Additional Pledged Debt”) described under Schedule 1
hereto.

 

E. 
Section 9.12 of the Credit Agreement and Section 9(b) of the Pledge
Agreement provide that additional Subsidiaries may become Subsidiary Pledgors
under the Pledge Agreement by execution and delivery of an instrument in the
form of this Supplement.  Each
undersigned Additional Pledgor is executing this Supplement in accordance with
the requirements of Section 9(b) of the Pledge Agreement to pledge to the
Administrative Agent for the benefit of the Secured Parties the Additional
Pledged Shares and the Additional Pledged Debt

 

 

[and to become a Subsidiary
Pledgor under the Pledge Agreement] 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 undersigned Additional Pledgor agree as follows:

 

SECTION 1.  In accordance with Section 9(b) of the Pledge Agreement, each
Additional Pledgor by its signature hereby transfers, assigns and pledges to
the Administrative Agent for the ratable benefit of the Secured Parties, and
hereby grants to the Administrative Agent for the ratable benefit of the
Secured Parties, a security interest in all of such Additional Pledgor’s right,
title and interest in the following, whether now owned or existing or hereafter
acquired or existing (collectively, the “Additional Collateral”):

 

(a)                                  the Additional
Pledged Shares held by such Additional Pledgor and the certificates
representing such Additional Pledged Shares and any interest of such Additional
Pledgor in the entries on the books of the issuer of the Additional Pledged
Shares or any financial intermediary pertaining to the Additional Pledged
Shares and all dividends, cash, warrants, rights, instruments and other
property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Additional
Pledged Shares, provided that the Additional Pledged Shares under this
Supplement shall not include more than 65 percent of the issued and
outstanding Equity Interests in any Foreign Subsidiary;

 

(b)                                 the Additional Pledged
Debt and the instruments evidencing the Additional Pledged Debt owed to such
Additional Pledgor, and all interest, cash, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such Additional Pledged Debt; and

 

(c)                                  to the extent not
covered by clauses (a) and (b) above, respectively, all proceeds of any or all
of the foregoing Additional Collateral. 
For purposes of this Supplement, the term “proceeds” includes whatever
is receivable or received when Additional Collateral or proceeds are sold,
exchanged, collected or otherwise disposed of, whether such disposition is
voluntary or involuntary, and includes proceeds of any indemnity or guarantee
payable to any Additional Pledgor or the Administrative Agent from time to time
with respect to any of the Additional Collateral.

 

For purposes of the Pledge Agreement,
(x) the Collateral shall be deemed to include the Additional Collateral
and (y) the After-acquired Pledged Shares shall be deemed to include the
Additional After-acquired Pledge Shares.

 

[SECTION 2. 
Each Additional Pledgor by its signature below becomes a Pledgor under
the Pledge Agreement with the same force and effect as if originally named
therein as a Pledgor and each Additional Pledgor hereby agrees to all the terms
and provisions of the Pledge Agreement applicable to it as a Pledgor
thereunder.  Each reference to a
“Subsidiary Pledgor” or

 

 

a “Pledgor” in the Pledge
Agreement shall be deemed to include each Additional Pledgor.  The Pledge Agreement is hereby incorporated
herein by reference.] (1)

 

SECTION [2][3].  Each Additional Pledgor represents and warrants as follows:

 

(a)                                  Schedule 1 hereto (i)
correctly represents as of the date hereof (A) the issuer, the certificate
number, the Pledgor and registered owner, the number and class and the
percentage of the issued and outstanding Equity Interests of such class of all
Additional Pledged Shares and (B) the issuer, the initial principal amount, the
Pledgor and holder, date of and maturity date of all Additional Pledged Debt
and (ii) together with Schedule 2 to the Pledge Agreement, the comparable
schedules to each other Supplement to the Pledge Agreement, includes all Equity
Interests, debt securities and promissory notes required to be pledged
hereunder.  Except as set forth on
Schedule 1, the Pledged Shares represent all (or 65 percent in the case of
pledges of Foreign Subsidiaries) of the issued and outstanding Equity Interests
of each class of Equity Interests of the issuer on the date hereof.

 

(b)                                 Such Additional
Pledgor is the legal and beneficial owner of the Additional Collateral pledged
or assigned by such Additional Pledgor hereunder free and clear of any Lien,
except for the Lien created by this Supplement to the Pledge Agreement.

 

(c)                                  As of the date of
this Supplement, the Additional Pledged Shares pledged by such Additional
Pledgor hereunder have been duly authorized and validly issued and, in the case
of Additional Pledged Shares issued by a corporation, are fully paid and
non-assessable.

 

(d)                                 The execution and
delivery by such Additional Pledgor of this Supplement and the pledge of the
Additional Collateral pledged by such Additional Pledgor hereunder pursuant
hereto create a valid and perfected first-priority security interest in the
Additional Collateral, securing the payment of the Obligations, in favor of the
Administrative Agent for the ratable benefit of the Secured Parties.

 

(e)                                  Such Additional
Pledgor has full power, authority and legal right to pledge all the Additional
Collateral pledged by such Additional Pledgor pursuant to this Supplement and
this Supplement constitutes a legal, valid and binding obligation of each Additional
Pledgor, enforceable in accordance with its terms, except as enforceability
thereof may be limited by bankruptcy, insolvency or other similar laws
affecting creditors’ rights generally and subject to general principles of
equity.

 

SECTION [3][4].  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 Administrative Agent and the
Borrower.  This Supplement shall become
effective as to each Additional Pledgor when the Administrative Agent shall
have received counterparts of this Supplement that, when taken together, bear
the signatures of such Additional Pledgor and the Administrative Agent.

 

(1) Include only for Additional
Pledgors that are not already signatories to the Pledge Agreement.

 

 

SECTION [4][5].  Except as expressly supplemented hereby, the Pledge Agreement
shall remain in full force and effect.

 

SECTION
[5][6].  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][7].  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 Pledge Agreement, 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][8].  All notices, requests and demands pursuant hereto shall be made
in accordance with Section 16 of the Pledge Agreement.  All communications and notices hereunder to
each Additional Pledgor 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][9].  Each Additional Pledgor agrees to reimburse the Administrative
Agent for its reasonable out-of-pocket expenses in connection with this
Supplement, including the reasonable fees, other charges and disbursements of
counsel for the Administrative Agent.

 

 

IN WITNESS WHEREOF, each Additional Pledgor
and the Administrative Agent have duly executed this Supplement to the Pledge
Agreement as of the day and year first above written.

 

	
   

  	
  [NAME OF ADDITIONAL PLEDGOR]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE FIRST BOSTON, ACTING

  THROUGH ITS CAYMAN ISLANDS BRANCH,

  AS ADMINISTRATIVE AGENT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

SCHEDULE 1 

TO SUPPLEMENT
NO. [  ]

TO THE PLEDGE AGREEMENT

 

Pledged Shares

 

	
  Pledgor

  	
   

  	
  Issuer

  	
   

  	
  Class of
  Stock

  	
   

  	
  Stock

  Certificate

  No(s)

  	
   

  	
  Number of

  Shares

  	
   

  	
  Percentage
  of

  Issued and

  Outstanding

  Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Pledged Debt

 

	
  Pledgor

  	
   

  	
  Issuer

  	
   

  	
  Initial
  Principal Amount

  	
   

  	
  Date of
  Note

  	
   

  	
  Maturity
  DateExhibit 10.7

 

EXECUTION COPY

 

CANADIAN PLEDGE
AGREEMENT

 

PLEDGE AGREEMENT (this “Pledge Agreement”)
dated as of October 4, 2004, made among JOSTENS CANADA LTD., a Manitoba
corporation (the “Canadian Borrower”), any other person that may become
a party by executing a supplement to this Pledge Agreement substantially in the
form of Annex A to this Pledge Agreement (the “Canadian Subsidiary Pledgors”,
each a “Canadian Subsidiary Pledgor”; together with the Canadian
Borrower, the “Canadian Pledgors” and each a “Canadian Pledgor”)
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 JOSTENS IH CORP., a Delaware Corporation (the “Borrower”),
the Canadian Borrower, JOSTENS SECONDARY HOLDINGS CORP., a Delaware
Corporation, 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 Canadian 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, pursuant to the
Canadian Guarantee (the “Canadian Guarantee”)  dated as of the date hereof, the Borrower and each Canadian
Subsidiary Pledgor has unconditionally and irrevocably guaranteed 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 (as defined below);

 

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

 

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 Pledgors shall have
executed and delivered this Pledge Agreement to the Canadian Administrative
Agent for the ratable benefit of the Secured Parties; and

 

WHEREAS, (a) Canadian
Borrower is the legal and beneficial owner of all the issued and outstanding
shares of capital stock of the Canadian Subsidiary Pledgors, (b) the Parent is
the legal and beneficial owner of all the issued and outstanding shares of
capital stock

 

 

of the Canadian Borrower, and (c) the
Canadian Pledgors are the legal and beneficial owners of the Equity Interests
described under Schedule 1 hereto and issued by the entities named therein (the
pledged Equity Interests described under (a), (b) and (c) are, together with
any Equity Interests obtained in the future of the issuer of such Pledged
Shares (the “After-acquired Shares”), referred to collectively herein as
the “Pledged Shares”) and (d) each of the Canadian Pledgors is the
legal and beneficial owner of the Indebtedness (the “Pledged Debt”)
described under Schedule 1 hereto;

 

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 Pledgors 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 and all terms defined in the Personal Property Security Act (Ontario),
as amended from time to time (the “PPSA”) and not defined herein shall
have the meanings specified therein.

 

(b)  As used herein, the term “Equity
Interests” means shares of capital stock, partnership interests, beneficial
interests in a trust or other equity ownership interests in a Person of
whatever nature, and any warrants, options or other rights entitling the holder
thereof to purchase or acquire any of the foregoing.

 

(c)  As used herein, the term “Obligations”
means 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 or any other Canadian
Pledgor to any of the Secured Parties under the Credit Agreement and the other
Credit Documents, including, without limitation,

 

2

 

the
Canadian Guarantee, (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 the covenants, agreements,
obligations and liabilities of each other Canadian Pledgor under or pursuant to
this Pledge Agreement or the other Credit Documents, including, without
limitation the Canadian Guarantee, (iv) the due and punctual payment and
performance of all obligations of each Canadian Pledgor 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 of the Canadian
Borrower or any Canadian Pledgor in respect of overdrafts and related
liabilities owed 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.

 

(d)  As used herein, the term “Secured
Parties” means any of the following to whom an Obligation is outstanding
(i) the Lenders, (ii) the Letter of Credit Issuer, (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 Canadian Pledgor under any Credit
Document, including, without limitation, the Canadian Guarantee and (ix) any
successors, indorsees, transferees and assigns of each of the foregoing.

 

(e)  “Unfunded
Advances/Participations” shall mean (a) with respect to the Canadian
Administrative Agent, the aggregate amount, if any (i) made available to the
Canadian Borrower on the assumption that each Lender has made its pro rata share of the applicable Borrowing
available to the Canadian Administrative Agent as contemplated by Section
2.4(b) of the Credit Agreement and (ii) with respect to which a corresponding
amount shall not in fact have been made available to the Canadian
Administrative Agent, by any such Lender and (b) with respect to the Canadian
Letter of Credit Issuer, the aggregate amount, if any, of unreimbursed payments
under any Letter of Credit made by such Letter of Credit Issuer that shall not
have been reimbursed by the Canadian Borrower pursuant to Section 3.4(a) of the
Credit Agreement, or repaid for the account of such Letter of Credit Issuer by
the applicable L/C Participants pursuant to Section 3.3(e) of the Credit
Agreement.

 

(f)  References to “Lenders” in
this Pledge Agreement shall be deemed to include affiliates of Lenders that may
from time to time enter into Hedge Agreements with any Canadian Pledgor.

 

3

 

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

 

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

 

2.  Grant of Security.  Each Canadian Pledgor hereby transfers,
assigns and pledges to the Canadian Administrative Agent for the ratable
benefit of the Secured Parties, and hereby grants to the Canadian
Administrative Agent for the ratable benefit of the Secured Parties, a security
interest (“Security Interest”) in all of such Canadian Pledgor’s right,
title and interest in the following, whether now owned or existing or hereafter
acquired or existing (collectively, the “Collateral”):

 

(a)  the Pledged Shares held by
such Canadian Pledgor and the certificates representing such Pledged Shares and
any interest of such Pledgor in the entries on the books of the issuer of the
Pledged Shares or any financial intermediary pertaining to the Pledged Shares
and all dividends, cash, warrants, rights, instruments and other property or
proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the Pledged Shares;

 

(b)  the Pledged Debt and the
instruments evidencing the Pledged Debt owed to such Canadian Pledgor, and all
interest, cash, instruments and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of such Pledged Debt; and

 

(c)  to the extent not covered
by clauses (a) and (b) above, respectively, all proceeds of any or all of the
foregoing Collateral.  For purposes of
this Pledge Agreement, the term “proceeds” includes whatever is receivable or
received when Collateral or proceeds are sold, exchanged, collected or
otherwise disposed of, whether such disposition is voluntary or involuntary,
and includes proceeds of any indemnity or guarantee payable to any Canadian
Pledgor or the Canadian Administrative Agent from time to time with respect to
any of the Collateral.

 

3.  Security for Obligations.  This Pledge Agreement secures the payment of
all Obligations of the Canadian Pledgors. 
Without limiting the generality of the foregoing, this Pledge Agreement
secures the payment of all amounts that constitute part of the Obligations and
would be owed by any of the Canadian Pledgors to the Canadian Administrative Agent
or the Lenders under the Credit Documents but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving any Credit Party.

 

4

 

4.  Delivery of the
Collateral.  All certificates or instruments, if any,
representing or evidencing the Collateral shall be promptly delivered to and
held by or on behalf of the Canadian Administrative Agent pursuant hereto and
shall be in suitable form for transfer by delivery, or shall be accompanied by
duly executed instruments of transfer or assignment in blank, all in form and
substance reasonably satisfactory to the Canadian Administrative Agent.  Subject to Section 16(b), the Canadian Administrative
Agent shall have the right, at any time after the occurrence and during the
continuance of an Event of Default and without notice to any Canadian Pledgor,
to transfer to or to register in the name of the Canadian Administrative Agent
or any of its nominees any or all of the Pledged Shares or Pledged Debt.  Each delivery of Collateral (including any
After-acquired Shares) shall be accompanied by a schedule describing the
securities theretofore and then being pledged hereunder, which shall be attached
hereto as Schedule 1 and made a part hereof, provided that the failure to
attach any such schedule hereto shall not affect the validity of such pledge of
such securities.  Each schedule so
delivered shall supersede any prior schedules so delivered.

 

5.  Representations and
Warranties.  Each Canadian Pledgor
represents and warrants as follows:

 

(a)  Schedule 1 hereto (i)
correctly represents as of the date hereof (A) the issuer, the certificate
number, the Canadian Pledgor and the record and beneficial owner, the number
and class and the percentage of the issued and outstanding Equity Interests of
such class of all Pledged Shares and (B) the issuer, the initial principal
amount, the Pledgor and holder, date of and maturity date of all Pledged Debt and
(ii) together with the comparable schedule to each supplement hereto, includes
all Equity Interests, debt securities and promissory notes required to be
pledged hereunder.  Except as set forth
on Schedule 1, the Pledged Shares represent all of the issued and outstanding
Equity Interests of each class of Equity Interests in the issuer on the date
hereof.

 

(b)  Except as expressly
annotated in bold and set forth on Schedule 1, the Pledged Shares do not
constitute shares of capital stock in an unlimited liability company.

 

(c)  Such Canadian Pledgor is
the legal and beneficial owner of the Collateral pledged or assigned by such
Canadian Pledgor hereunder free and clear of any Lien, except for the Lien
created by this Pledge Agreement and Permitted Liens under the Credit
Agreement.

 

(d)  As of the date of this
Pledge Agreement, the Pledged Shares pledged by such Canadian Pledgor hereunder
have been duly authorized and validly issued and, in the case of Pledged Shares
issued by a corporation, are fully paid and non-assessable.

 

(e)  The execution and delivery
by such Canadian Pledgor of this Pledge Agreement and the possession by the
Canadian Administrative Agent of the Collateral pledged by such Canadian
Pledgor hereunder pursuant hereto create a valid and perfected first-priority
security interest in the

 

5

 

Collateral,
securing the payment of the Obligations, in favor of the Canadian
Administrative Agent for the ratable benefit of the Secured Parties.

 

(f)  Such Canadian Pledgor has
full power, authority and legal right to pledge all the Collateral pledged by
such Canadian Pledgor pursuant to this Pledge Agreement and this Pledge
Agreement constitutes a legal, valid and binding obligation of each Canadian
Pledgor, enforceable in accordance with its terms, except as enforceability
thereof may be limited by bankruptcy, insolvency or other similar laws
affecting creditors’ rights generally and subject to general principles of
equity.

 

6.  Pledged Debt.  Each Canadian Pledgor will cause any
Indebtedness for borrowed money owed to such Canadian Pledgor and required to
be pledged hereunder to be evidenced by a duly executed promissory note that is
pledged and delivered to the Canadian Administrative Agent pursuant to the
terms hereof.

 

7.  Voting Rights; Dividends
and Distributions; Etc.

 

(a)  So long as no Event of
Default shall have occurred and be continuing:

 

(i)  Each Canadian Pledgor shall
be entitled to exercise any and all voting and other consensual rights
pertaining to the Collateral or any part thereof for any purpose not prohibited
by the terms of this Pledge Agreement or the other Credit Documents.

 

(ii)  The Canadian
Administrative Agent shall execute and deliver (or cause to be executed and
delivered) to each Canadian Pledgor all such proxies and other instruments as
such Canadian Pledgor may reasonably request for the purpose of enabling such
Canadian Pledgor to exercise the voting and other rights that it is entitled to
exercise pursuant to paragraph (i) above.

 

(b)  Subject to paragraph (c)
below, each Canadian Pledgor shall be entitled to receive and retain and use,
free and clear of the Lien of this Pledge Agreement, any and all dividends,
distributions, principal and interest made or paid in respect of the Collateral
to the extent permitted by the Credit Agreement; provided, however,
that any and all noncash dividends, interest, principal or other distributions
that would constitute Pledged Shares or Pledged Debt, whether resulting from a
subdivision, combination or reclassification of the outstanding Equity
Interests of the issuer of any Pledged Shares or received in exchange for
Pledged Shares or Pledged Debt or any part thereof, or in redemption thereof,
or as a result of any merger, amalgamation, consolidation, acquisition or other
exchange of assets to which such issuer may be a party or otherwise, shall be,
and shall be forthwith delivered to the Canadian Administrative Agent to hold
as, Collateral and shall, if received by such Canadian Pledgor, be received in
trust for the benefit of the Canadian Administrative Agent, be segregated from
the other property or funds of such Canadian Pledgor and be forthwith

 

6

 

delivered
to the Canadian Administrative Agent as Collateral in the same form as so
received (with any necessary indorsement).

 

(c)  Upon written notice to each
Canadian Pledgor by the Canadian Administrative Agent following the occurrence
and during the continuance of an Event of Default,

 

(i)  all rights of such Canadian
Pledgor to exercise or refrain from exercising the voting and other consensual
rights that it would otherwise be entitled to exercise pursuant to
Section 8(a)(i) shall cease, and all such rights shall thereupon become
vested in the Canadian Administrative Agent, which shall thereupon have the
sole right to exercise or refrain from exercising such voting and other
consensual rights during the continuance of such Event of Default, provided
that, unless otherwise directed by the Required Canadian Revolving Credit
Lenders, the Canadian Administrative Agent shall have the right from time to
time following the occurrence and during the continuance of an Event of Default
to permit the Canadian Pledgors to exercise such rights.  After all Events of Default have been cured
or waived and the Canadian Borrower has delivered to the Canadian
Administrative Agent a certificate to that effect, each Canadian Pledgor will
have the right to exercise the voting and consensual rights that such Canadian
Pledgor would otherwise be entitled to exercise pursuant to the terms of
Section 8(a)(i) (and the obligations of the Canadian Administrative Agent under
Section 8(a)(ii) shall be reinstated);

 

(ii)  all rights of such
Canadian Pledgor to receive the dividends, distributions and principal and
interest payments that such Canadian Pledgor would otherwise be authorized to
receive and retain pursuant to Section 8(b) shall cease, and all such
rights shall thereupon become vested in the Canadian Administrative Agent,
which shall thereupon have the sole right to receive and hold as Collateral
such dividends, distributions and principal and interest payments during the
continuance of such Event of Default. 
After all Events of Default have been cured or waived and the Canadian
Borrower has delivered to the Canadian Administrative Agent a certificate to
that effect, the Canadian Administrative Agent shall repay to each Canadian
Pledgor (without interest) all dividends, distributions and principal and
interest payments that such Canadian Pledgor would otherwise be permitted to
receive, retain and use pursuant to the terms of Section 8(b);

 

(iii)  all dividends,
distributions and principal and interest payments that are received by such
Canadian Pledgor contrary to the provisions of Section 8(b) shall be
received in trust for the benefit of the Canadian Administrative Agent, shall
be segregated from other property or funds of such Canadian Pledgor and shall
forthwith be delivered to the Canadian Administrative Agent as Collateral in
the same form as so received (with any necessary indorsements); and

 

7

 

(iv)  in order to permit the
Canadian Administrative Agent to receive all dividends, distributions and
principal and interest payments to which it may be entitled under Section 8(b)
above, to exercise the voting and other consensual rights that it may be
entitled to exercise pursuant to Section 8(c)(i) above, and to receive all
dividends, distributions and principal and interest payments that it may be
entitled to under Sections 8(c)(ii) and (c)(iii) above, such Canadian
Pledgor shall, upon written notice from the Canadian Administrative Agent, from
time to time execute and deliver to the Canadian Administrative Agent,
appropriate proxies, dividend payment orders and other instruments as the
Canadian Administrative Agent may reasonably request.

 

8.  Further Assurances.  Each Canadian Pledgor agrees that at any
time and from time to time, at the expense of such Canadian Pledgor, it will
execute any and all further documents, financing statements, financing change
statements, agreements and instruments, and take all such further actions
(including the filing and recording of financing statements, financing change
statements, fixture filings, mortgages, deeds of trust and other documents),
which may be required under any applicable law, or which the Canadian
Administrative Agent or the Required Canadian Revolving Credit Lenders may
reasonably request, in order (x) to perfect and protect any pledge,
assignment or security interest granted or purported to be granted hereby  (including the priority thereof) or
(y) to enable the Canadian Administrative Agent to exercise and enforce
its rights and remedies hereunder with respect to any Collateral.

 

9.  Transfers and Other
Liens; Additional Collateral; Etc. 
Each Canadian Pledgor shall:

 

(a)  not (i) except as permitted
by the Credit Agreement, sell or otherwise dispose of, or grant any option or
warrant with respect to, any of the Collateral or (ii) create or suffer to
exist any consensual Lien upon or with respect to any of the Collateral, except
for the Lien under this Pledge Agreement and Permitted Liens under the Credit
Agreement, provided that in the event such Canadian Pledgor sells or
otherwise disposes of assets permitted by the Credit Agreement and such assets
are or include any of the Collateral, the Canadian Administrative Agent shall
release such Collateral to such Canadian Pledgor free and clear of the Lien
under this Pledge Agreement concurrently with the consummation of such sale;

 

(b)  pledge and, if applicable,
cause each of its Subsidiaries to pledge, to the Canadian Administrative Agent
for the benefit of the Secured Parties, immediately upon acquisition thereof,
all the capital stock and all evidence of Indebtedness held or received by such
Canadian Pledgor or Canadian Subsidiary required to be pledged hereunder
pursuant to Section 9.12 of the Credit Agreement, in each case pursuant to a
supplement to this Pledge Agreement substantially in the form of Annex A hereto
(it being understood that the execution and delivery of such a supplement shall
not require the consent of any Canadian Pledgor hereunder and that the rights
and obligations of each Canadian Pledgor hereunder shall remain in full force

 

8

 

and
effect notwithstanding the addition of any new Canadian Subsidiary Pledgor as a
party to this Pledge Agreement); and

 

(c)  defend its and the Canadian
Administrative Agent’s title or interest in and to all the Collateral (and in
the Proceeds thereof) against any and all Liens (other than the Lien of this
Pledge Agreement), however arising, and any and all Persons whomsoever.

 

10.  Canadian Administrative
Agent Appointed Attorney-in-Fact.  Each
Canadian Pledgor hereby appoints, which appointment is irrevocable and coupled
with an interest, the Canadian Administrative Agent as such Canadian Pledgor’s
attorney-in-fact, with full authority in the place and stead of such Canadian
Pledgor and in the name of such Canadian Pledgor or otherwise, to take any
action and to execute any instrument, in each case after the occurrence and
during the continuance of an Event of Default, that the Canadian Administrative
Agent may deem reasonably necessary or advisable to accomplish the purposes of
this Pledge Agreement, including to receive, indorse and collect all
instruments made payable to such Canadian Pledgor representing any dividend,
distribution or principal or interest payment in respect of the Collateral or
any part thereof and to give full discharge for the same.

 

11.  The Canadian
Administrative Agent’s Duties.  The
powers conferred on the Canadian Administrative Agent hereunder are solely to
protect its interest in the Collateral and shall not impose any duty upon it to
exercise any such powers.  Except for
the safe custody of any Collateral in its possession and the accounting for
moneys actually received by it hereunder, the Canadian Administrative Agent
shall have no duty as to any Collateral, as to ascertaining or taking action
with respect to calls, conversions, exchanges, maturities, tenders or other
matters relative to any Pledged Shares or Pledged Debt, whether or not the
Canadian Administrative Agent or any other Secured Party has or is deemed to
have knowledge of such matters, or as to the taking of any necessary steps to
preserve rights against any parties or any other rights pertaining to any
Collateral.  The Canadian Administrative
Agent shall be deemed to have exercised reasonable care in the custody and
preservation of any Collateral in its possession if such Collateral is accorded
treatment substantially equal to that which the Canadian Administrative Agent
accords its own property.

 

12.  Remedies.  Subject to Section 16(b), if any Event of
Default shall have occurred and be continuing:

 

(a)  The Canadian Administrative
Agent may exercise in respect of the Collateral, in addition to other rights
and remedies provided for herein or otherwise available to it, all the rights
and remedies of a secured party upon default under the PPSA or any other
applicable law and also may without notice except as specified below, sell the
Collateral or any part thereof in one or more parcels at public or private
sale, at any exchange broker’s board or at any of the Canadian Administrative
Agent’s offices or elsewhere, for cash, on credit or for future delivery, at
such price or prices and upon such other terms as are commercially reasonable
irrespective of the impact of any such sales on the market price of the
Collateral.  The Canadian Administrative
Agent shall be authorized at any such sale (if it deems it advisable to do so)

 

9

 

to
restrict the prospective bidders or purchasers of Collateral to Persons who will
represent and agree that they are purchasing the Collateral for their own
account for investment and not with a view to the distribution or sale thereof,
and, upon consummation of any such sale, the Canadian Administrative Agent
shall have the right to assign, transfer and deliver to the purchaser or
purchasers thereof the Collateral so sold. 
Each purchaser at any such sale shall hold the property sold absolutely
free from any claim or right on the part of any Canadian Pledgor, and each
Canadian Pledgor hereby waives (to the extent permitted by law) all rights of
redemption, stay and/or appraisal that it now has or may at any time in the
future have under any rule of law or statute now existing or hereafter
enacted.  The Canadian Administrative
Agent or any Secured Party shall have the right upon any such public sale, and,
to the extent permitted by law, upon any such private sale, to purchase the
whole or any part of the Collateral so sold, and the Canadian Administrative
Agent or such Secured Party may subject to (x) the satisfaction in full in cash
of all payments due pursuant to Section 12(b)(i), and (y) the ratable
satisfaction of the Obligations in accordance with Section 12(b)(ii) pay the
purchase price by crediting the amount thereof against the Obligations.  Each Canadian Pledgor agrees that, to the
extent notice of sale shall be required by law, at least ten days’ notice to
such Canadian Pledgor of the time and place of any public sale or the time
after which any private sale is to be made shall constitute reasonable
notification, to the extent that a longer notice period is not required by
applicable law.  The Canadian
Administrative Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given.  The Canadian Administrative Agent may adjourn any public or
private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.  To
the extent permitted by law, each Canadian Pledgor hereby waives any claim
against the Canadian Administrative Agent arising by reason of the fact that
the price at which any Collateral may have been sold at such a private sale was
less than the price that might have been obtained at a public sale, even if the
Canadian Administrative Agent accepts the first offer received and does not
offer such Collateral to more than one offeree.

 

(b)  The Canadian Administrative
Agent shall apply the proceeds of any collection or sale of the Collateral at
any time after receipt as follows:

 

(i)  first, to the payment of
all reasonable and documented costs and expenses incurred by the Canadian
Administrative Agent in connection with such collection or sale or otherwise in
connection with this Pledge Agreement, the other Credit Documents or any of the
Obligations, including all court costs and the reasonable fees and expenses of
its agents and legal counsel, the repayment of all advances made by the
Canadian Administrative Agent hereunder or under any other Credit Document on
behalf of any Canadian Pledgor and any other reasonable and documented costs or
expenses incurred in connection with the

 

10

 

exercise
of any right or remedy hereunder or under any other Credit Document;

 

(ii)  second, to the payment in
full of the Unfunded Advances/Participations (the amounts so applied to be
distributed between or among the Canadian Administrative Agent and the Canadian
Letter of Credit Issuer pro rata in accordance with the amounts of
Unfunded Advances/Participations owed to them on the date of any distribution);

 

(iii)  third, to the Secured
Parties, an amount equal to all Obligations owing to them on the date of any
such distribution, and, if such moneys shall be insufficient to pay such
amounts in full, then ratably (without priority of any one over any other) to
such Secured Parties in proportion to the unpaid amounts thereof; and

 

(iv)  fourth, any surplus then
remaining shall be paid to the Canadian Pledgors or their successors or assigns
or to whomsoever may be lawfully entitled to receive the same or as a court of
competent jurisdiction may direct.

 

Upon any sale of the
Collateral by the Canadian Administrative Agent (including pursuant to a power
of sale granted by statute or under a judicial proceeding), the receipt for
payment of the Canadian Administrative Agent or of the officer making the sale
shall be a sufficient discharge to the purchaser or purchasers of the
Collateral so sold and such purchaser or purchasers shall not be obligated to
see to the application of any part of the purchase money paid over to the
Canadian Administrative Agent or such officer or be answerable in any way for
the misapplication thereof.

 

(c)  The Canadian Administrative
Agent may exercise any and all rights and remedies of each Canadian Pledgor in
respect of the Collateral.

 

(d)  The Canadian Administrative
Agent may appoint, remove and reappoint any Person or Persons, including an
employee or agent of the Canadian Administrative Agent to be a receiver (the “Receiver”)
which term shall include a receiver and manager or, or agent for, all or any
part of the Collateral.  Any such
Receiver shall, as far as concerns responsibility for its acts, be deemed to be
the agent of the Canadian Pledgors and not of the Canadian Administrative Agent
or any other Secured Party, and the Canadian Administrative Agent and other
Secured Parties shall not in any way be responsible for any misconduct,
negligence or nonfeasance of such Receiver, its employees or agents.  Except as otherwise directed by the Canadian
Administrative Agent, all money received by such Receiver shall be received in
trust for and paid to the Canadian Administrative Agent.  Such Receiver shall have all of the powers
and rights of the Canadian Administrative Agent described in this Section 12(d)
or as otherwise provided under the PPSA or the Bankruptcy
and Insolvency Act (Canada) (“BIA”).  The Canadian Administrative Agent may,
either directly or through its agents or nominees, exercise any or all powers
and rights of a Receiver.

 

11

 

The Canadian Pledgors shall
pay all costs, charges and expenses incurred by the Canadian Administrative
Agent or any Receiver or any nominee or agent of the Canadian Administrative
Agent, whether directly or for services rendered (including, without
limitation, solicitor’s costs on a solicitor and its own client basis,
auditor’s costs, other legal expenses and Receiver remuneration) in enforcing
this Pledge Agreement or any of the other Credit Documents and in enforcing the
Obligations and all such expenses together with any money owing as a result of
any borrowing permitted hereby or pursuant to any applicable law shall be a
charge on the proceeds of realization and shall be secured hereby.

 

(e)  All payments received by
any Canadian Pledgor after the occurrence and during the continuance of an
Event of Default in respect of the Collateral shall be received in trust for
the benefit of the Canadian Administrative Agent, shall be segregated from
other property or funds of such Canadian Pledgor and shall be forthwith
delivered to the Canadian Administrative Agent as Collateral in the same form
as so received (with any necessary indorsement).

 

13.  Amendments, etc. with
Respect to the Obligations; Waiver of Rights.  Each Canadian Pledgor shall remain obligated hereunder
notwithstanding that, without any reservation of rights against any Canadian
Pledgor and without notice to or further assent by any Canadian Pledgor, (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 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 or the Required Canadian
Revolving Credit 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 Pledge Agreement or any property subject thereto.  When making any demand hereunder against any
Canadian Pledgor, 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 other Credit Party or pledgor, and any failure by the Canadian

 

12

 

Administrative
Agent or any other Secured Party to make any such demand or to collect any
payments from the Canadian Borrower, other Credit Party or pledgor or any
release of any Canadian Pledgor or pledgor shall not relieve any Canadian
Pledgor in respect of which a demand or collection is not made or any Canadian
Pledgor 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 Pledgor.  For
the purposes hereof “demand” shall include the commencement and continuance of
any legal proceedings.

 

14.  Continuing Security
Interest; Assignments Under the Credit Agreement; Release.  (a)  This Pledge Agreement shall remain in full
force and effect and be binding in accordance with and to the extent of its
terms upon each Canadian Pledgor 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, permitted
transferees and assigns in accordance with the terms of the Credit Agreement
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.

 

(b)  Upon any sale or other
transfer by any Canadian Pledgor of any Collateral that is permitted under the
Credit Agreement, or upon the effectiveness of any written consent to the
release of the security interest granted hereby in any Collateral pursuant to
Section 13.1 of the Credit Agreement, the obligations of such Canadian Pledgor
with respect to such Collateral shall be automatically released and such
Collateral sold free and clear of the Lien and Security Interests created
hereby.

 

(c)  In connection with any
termination or release pursuant to paragraph (a) or (b), the Canadian
Administrative Agent shall execute and deliver to any Canadian Pledgor, at such
Canadian Pledgor’s expense, all documents that such Canadian Pledgor shall
reasonably request to evidence such termination or release.  Any execution and delivery of documents
pursuant to this Section 14 shall be without recourse to or warranty by the
Canadian Administrative Agent.

 

15.  Reinstatement.  This Pledge Agreement 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 any Canadian Pledgor, 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
other Canadian Pledgor or any substantial part of its property, or otherwise,
all as though such payments had not been made.

 

16.  Notices.  (a) 
All notices, requests and demands pursuant hereto shall be made in
accordance with Section 13.2 of the Credit Agreement.  All communications and

 

13

 

notices
hereunder to any Canadian Pledgor 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.

 

(b)  Notwithstanding anything
contained herein or in any other agreement or document:

 

(i)  Pledged Shares which
constitute shares of capital stock in an unlimited liability company shall not
be transferred to or registered in the name of the Canadian Administrative
Agent or any of its nominees; and

 

(ii)  none of the rights and
remedies referred to in the second sentence of Section 4, Section 7(c) or
Section 12 hereof shall be exercised (or deemed exercised) in relation to any
Pledged Shares which constitute shares of capital stock in an unlimited
liability company

 

except upon prior written notice in accordance with Section 16(a) which
expressly states that such notice is delivered pursuant to this Section 16(b).

 

17.  Counterparts.  This Pledge Agreement may be executed by one
or more of the parties to this Pledge Agreement 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 Pledge Agreement signed by all the parties shall be lodged with the
Canadian Administrative Agent and the Canadian Borrower.

 

18.  Severability.  Any provision of this Pledge Agreement 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.

 

19.  Integration.  This Pledge Agreement represents the
agreement of each of the Canadian Pledgors 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.

 

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

 

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

 

14

 

(b)  Neither the Canadian
Administrative Agent nor any Secured Party shall by any act (except by a
written instrument pursuant to Section 20(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 such other 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.

 

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

 

22.  Successors and Assigns.  This Pledge Agreement shall be binding upon
the successors and assigns of each Canadian Pledgor 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 Pledgor may
assign, transfer or delegate any of its rights or obligations under this Pledge
Agreement without the prior written consent of the Canadian Administrative
Agent or as otherwise permitted under the Credit Agreement.

 

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

 

24.  Submission to
Jurisdiction; Waivers.  Each of the
Canadian Pledgors hereby irrevocably and unconditionally:

 

(a)  submits for itself and its
property in any legal action or proceeding relating to this Pledge Agreement,
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 the courts of the
Province of Ontario and the appellate courts from any thereof;

 

15

 

(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 Pledgor at its address referred to in
Section 16 or at such other address of which the Canadian 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 24 any special,
exemplary, punitive or consequential damages.

 

25.  GOVERNING LAW.  THIS PLEDGE AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH, THE LAWS OF THE PROVINCE OF ONTARIO AND THE LAWS OF CANADA
APPLICABLE IN THE PROVINCE OF ONTARIO.

 

16

 

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

 

	
   

  	
  JOSTENS CANADA LTD.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Michael
  Bailey

  
	
   

  	
   

  	
   

  	
  Name:  Michael Bailey

  
	
   

  	
   

  	
   

  	
  Title:    Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE FIRST BOSTON TORONTO

  BRANCH, AS CANADIAN ADMINISTRATIVE

  AGENT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by

  	
  /s/ Peter
  Chauvin

  
	
   

  	
   

  	
   

  	
  Name:  Peter Chauvin

  
	
   

  	
   

  	
   

  	
  Title:    Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ Bruce F.
  Wetherly

  
	
   

  	
   

  	
   

  	
  Name:  Bruce F. Wetherly

  
	
   

  	
   

  	
   

  	
  Title:    Director, Controllers Department

  

 

 

SCHEDULE 1

TO THE PLEDGE AGREEMENT

 

Pledged Shares

 

 

 

 

Pledged Debt

 

 

 

 

 

ANNEX A

TO THE CANADIAN PLEDGE AGREEMENT

 

SUPPLEMENT NO. [  ]
dated as of
[            ],
200_ to the CANADIAN PLEDGE AGREEMENT (the “Canadian Pledge Agreement”)
dated as of October 4, 2004, made among JOSTENS CANADA LTD., a Manitoba corporation
(the “Canadian Borrower” and together with the Canadian Subsidiary
Pledgors, the “Canadian Pledgors”) 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 referred to below.

 

A.  Reference is made to (a) the
Credit Agreement (the “Credit Agreement”) dated as of October 4, 2004,
among JOSTENS IH CORP., a Delaware corporation (the “Borrower”), the
Canadian Borrower, JOSTENS SECONDARY HOLDINGS CORP., a Delaware corporation (“Holdings”),
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, and (b) the Canadian Guarantee dated as of
October 4, 2004 (as amended, supplemented or otherwise modified from time to
time, the “Canadian Guarantee”), among the Borrower, the Canadian
Guarantors party thereto 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 Pledge Agreement.

 

C.  The Canadian Pledgors have
entered into the Canadian Pledge Agreement in order to induce 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.

 

D.  The undersigned Canadian
[Pledgors] (each a “Additional Canadian Pledgor”) are (a) the legal and
beneficial owners of the Equity Interests described under Schedule 1 hereto and
issued by the entities named therein (such pledged Equity Interests, together
with any Equity Interests obtained in the future of the issuer of such Pledged
Shares (the “After-acquired Additional Pledged Shares”), referred to
collectively herein as the “Additional Pledged Shares”) and (b) the
legal and beneficial owners of the Indebtedness (the “Additional Pledged
Debt”) described under Schedule 1 hereto.

 

E.  Section 9.12 of the Credit
Agreement and Section 9(b) of the Canadian Pledge Agreement provide that
additional Canadian Subsidiaries may become Canadian Subsidiary Pledgors under
the Canadian Pledge Agreement by execution and delivery of an instrument in the
form of this Supplement.  Each
undersigned Additional Canadian Pledgor is executing this Supplement in
accordance with the requirements of Section 9(b)

 

 

of
the Canadian Pledge Agreement to pledge to the Canadian Administrative Agent
for the benefit of the Secured Parties the Additional Pledged Shares and the
Additional Pledged Debt [and to become a Canadian Subsidiary Pledgor under the
Canadian Pledge Agreement] 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 undersigned Additional Pledgor agree as follows:

 

SECTION 1.  In
accordance with Section 9(b) of the Canadian Pledge Agreement, each Additional
Canadian Pledgor by its signature hereby transfers, assigns and pledges to the
Canadian Administrative Agent for the ratable benefit of the Secured Parties,
and hereby grants to the Canadian Administrative Agent for the ratable benefit
of the Secured Parties, a security interest in all of such Additional Canadian
Pledgor’s right, title and interest in the following, whether now owned or
existing or hereafter acquired or existing (collectively, the “Additional
Collateral”):

 

(a)           the Additional Pledged Shares held by such Additional
Canadian Pledgor and the certificates representing such Additional Pledged
Shares and any interest of such Additional Canadian Pledgor in the entries on
the books of the issuer of the Additional Pledged Shares or any financial
intermediary pertaining to the Additional Pledged Shares and all dividends,
cash, warrants, rights, instruments and other property or proceeds from time to
time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the Additional Pledged Shares;

 

(b)           the Additional Pledged Debt and the instruments evidencing
the Additional Pledged Debt owed to such Additional Canadian Pledgor, and all
interest, cash, instruments and other property or proceeds from time to time
received, receivable or otherwise distributed in respect of or in exchange for
any or all of such Additional Pledged Debt; and

 

(c)           to the extent not covered by clauses (a) and (b) above,
respectively, all proceeds of any or all of the foregoing Additional
Collateral.  For purposes of this
Supplement, the term “proceeds” includes whatever is receivable or received
when Additional Collateral or proceeds are sold, exchanged, collected or
otherwise disposed of, whether such disposition is voluntary or involuntary,
and includes proceeds of any indemnity or guarantee payable to any Additional
Canadian Pledgor or the Canadian Administrative Agent from time to time with
respect to any of the Additional Collateral.

 

For purposes of the Canadian
Pledge Agreement, (x) the Collateral shall be deemed to include the
Additional Collateral and (y) the After-acquired Pledged Shares shall be deemed
to include the Additional After-acquired Pledged Shares.

 

[SECTION 2.  Each Additional Canadian Pledgor by its
signature below becomes a Canadian Pledgor under the Canadian Pledge Agreement
with the same force and effect as if originally named therein as a Canadian
Pledgor and each Additional Canadian Pledgor hereby agrees to all the terms and
provisions of the Canadian Pledge Agreement applicable to it as a Canadian
Pledgor thereunder.  Each reference to a
“Canadian Subsidiary Pledgor” or a “Canadian Pledgor” in the Pledge Agreement shall
be deemed to include each Additional

 

2

 

Canadian Pledgor.  The Canadian Pledge Agreement is hereby
incorporated herein by reference.](1)

 

SECTION [2][3].  Each Additional Canadian Pledgor represents and
warrants as follows:

 

(a)           Schedule 1 hereto (i) correctly represents as of the date
hereof (A) the issuer, the certificate number, the [Additional] Canadian Pledgor and registered owner, the number
and class and the percentage of the issued and outstanding Equity Interests of
such class of all Additional Pledged Shares and (B) the issuer, the initial
principal amount, the [Additional]
Canadian Pledgor and holder, date of and maturity date of all Additional
Pledged Debt and (ii) together with Schedule 1 to the Canadian Pledge
Agreement, the comparable schedules to each other Supplement to the Canadian
Pledge Agreement, includes all Equity Interests, debt securities and promissory
notes required to be pledged hereunder. 
Except as set forth on Schedule 1, the Pledged Shares represent all of
the issued and outstanding Equity Interests of each class of Equity Interests
of the issuer on the date hereof.

 

(b)           Except as expressly annotated in bold and set forth on
Schedule 1, the Pledged Shares do not constitute shares of capital stock in an
unlimited liability company.

 

(c)           Such Additional Canadian Pledgor is the legal and
beneficial owner of the Additional Collateral pledged or assigned by such
Additional Canadian Pledgor hereunder free and clear of any Lien, except for
the Lien created by this Supplement to the Canadian Pledge Agreement.

 

(d)           As of the date of this Supplement, the Additional Pledged
Shares pledged by such Additional Canadian Pledgor hereunder have been duly
authorized and validly issued and, in the case of Additional Pledged Shares
issued by a corporation, are fully paid and non-assessable.

 

(e)           The execution and delivery by such Additional Canadian
Pledgor of this Supplement and the pledge of the Additional Collateral pledged
by such Additional Canadian Pledgor hereunder pursuant hereto create a valid
and perfected first-priority security interest in the Additional Collateral,
securing the payment of the Obligations, in favor of the Canadian
Administrative Agent for the ratable benefit of the Secured Parties.

 

(f)            Such
Additional Canadian Pledgor has full power, authority and legal right to pledge
all the Additional Collateral pledged by such Additional Canadian Pledgor
pursuant to this Supplement and this Supplement constitutes a legal, valid and
binding obligation of each Additional Canadian Pledgor, enforceable in
accordance with its terms, except as enforceability thereof may be limited by
bankruptcy, insolvency or other similar laws affecting creditors’ rights
generally and subject to general principles of equity.

 

SECTION [3][4]. 
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 Administrative
Agent and the Canadian Borrower.

 

(1)  Include only for Additional Pledgors that
are not already signatories to the Pledge Agreement.

 

3

 

This Supplement shall become effective as to
each Additional Canadian Pledgor when the Canadian Administrative Agent shall
have received counterparts of this Supplement that, when taken together, bear
the signatures of such Additional Canadian Pledgor and the Canadian
Administrative Agent.

 

SECTION [4][5]. 
Except as expressly supplemented hereby, the Canadian Pledge Agreement
shall remain in full force and effect.

 

SECTION [5][6].  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 PROVINCE OF ONTARIO AND THE LAWS OF CANADA APPLICABLE IN THE
PROVINCE OF ONTARIO.

 

SECTION [6][7]. 
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 Pledge Agreement, 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][8]. 
All notices, requests and demands pursuant hereto shall be made in
accordance with Section 16 of the Pledge Agreement.  All communications and notices hereunder to each Additional
Canadian Pledgor 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][9]. 
Each Additional Canadian Pledgor agrees to reimburse the Canadian
Administrative Agent for its reasonable out-of-pocket expenses in connection
with this Supplement, including the reasonable fees, other charges and
disbursements of counsel for the Canadian Administrative Agent.

 

4

 

IN WITNESS WHEREOF, each Additional Canadian Pledgor
and the Canadian Administrative Agent have duly executed this Supplement to the
Canadian Pledge Agreement as of the day and year first above written.

 

 

	
   

  	
  [NAME OF ADDITIONAL CANADIAN

  PLEDGOR]

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CREDIT
  SUISSE FIRST BOSTON TORONTO

  BRANCH, AS CANADIAN ADMINISTRATIVE

  AGENT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

5

 

SCHEDULE 1

TO SUPPLEMENT NO. [  ]

TO THE CANADIAN PLEDGE AGREEMENT

 

Pledged Shares

 

	
  Pledgor

  	
   

  	
  Issuer

  	
   

  	
  Class of
  Stock

  	
   

  	
  Stock

  Certificate

  No(s)

  	
   

  	
  Number of

  Shares

  	
   

  	
  Percentage
  of

  Issued and

  Outstanding

  Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Pledged Debt

 

	
  Pledgor

  	
   

  	
  Issuer

  	
   

  	
  Initial
  Principal Amount

  	
   

  	
  Date of
  Note

  	
   

  	
  Maturity
  Date

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"}]]