Document:

Exhibit
10.12

 

TIME-SHARING
AGREEMENT

(N219FL)

 

This Time-Sharing Agreement (the “Agreement’) is made
effective as of March 15, 2004 (the “Effective Date”), by and between JOSTENS,
INC., a Minnesota corporation (“Sublessor”) and ROBERT C. BURHMASTER (“Sublessee”).

 

RECITALS

 

WHEREAS, Sublessor is the lessee of that certain
aircraft identified as a Citation Jet CJ2, bearing serial number 111and FAA
registration number N219FL, including two (2) Williams/Rolls Royce FJ44-2C
aircraft engines, bearing manufacturer’s serial numbers 126090 and 126091
installed thereon, together with the auxiliary power unit, avionics, equipment,
components, accessories, instruments and other items installed in or attached
to the airframe, all spare parts, any replacement part(s) or engine(s) which
may be installed on the aircraft from time to time, and all logs, manuals and
other records relating to such aircraft (collectively, the “Aircraft”); and

 

WHEREAS, Sublessor employs a fully qualified flight
crew to operate the Aircraft; and

 

WHEREAS, Sublessee desires to lease the Aircraft and
flight crew from Sublessor on a time-sharing basis, as defined in Section
91.501(c)(1)of the Federal Aviation Regulations (“FARs”).

 

NOW, THEREFORE, for and in consideration of the mutual
promises, covenants and conditions herein set forth, Sublessor and Sublessee
agree as follows:

 

1.                                       Lease
of Aircraft.  Sublessor agrees to
lease the Aircraft to Sublessee pursuant to the provisions of FAR 91.501(c)(1)
and to provide a fully qualified flight crew for all operations for the period
commencing on the Effective Date of this Agreement and terminating on March 15,
2009 or sooner pursuant to Section 18. 
Nothing contained in this Agreement shall be deemed to prohibit Sublessor,
in its discretion, from substituting for the Aircraft any different aircraft of
any type or model.

 

2.                                       Sublessee’s
Payment Obligations. Sublessee shall pay Sublessor for each flight
conducted under this Agreement an amount equal to the sum of each category of
expense set forth below, provided  however, such amount shall in
no event exceed the sum of the following expenses authorized by FAR Section
91.501(d):

 

(a)                                  Fuel,
oil, lubricants, and other additives;

 

(b)                                 Travel
expenses of the crew, including food, lodging and ground transportation;

 

(c)                                  Hangar
and tie down costs away from the Aircraft’s base of operation;

 

 

(d)                                 Insurance
obtained for the specific flight;

 

(e)                                  Landing
fees, airport taxes and similar assessments;

 

(f)                                    Customs,
foreign permit, and similar fees directly related to the flight;

 

(g)                                 In-flight
food and beverages;

 

(h)                                 Passenger
ground transportation;

 

(i)                                     Flight
planning and weather contract services; and

 

(j)                                     An
additional charge equal to 100% of the expenses listed in subparagraph (a) of
this Section 2.

 

3.                                       Invoicing
for Flights.  Sublessor shall pay
all expenses related to the operation of the Aircraft when incurred and will
provide, or contract with third parties to provide, a monthly invoice to
Sublessee setting forth the expenses of each specific flight through the last
day of the month in which any flight or flights for the account of Sublessee
occur, which expenses shall not exceed the amount permitted under FAR Section
91.501(d). Sublessee shall pay Sublessor for the total amount set forth on each
such invoice within thirty (30) days of receipt of such invoice. Should
Sublessor receive from Sublessee any amounts under this Agreement not otherwise
allowed under the applicable FAR provisions, Sublessor shall refund such
amounts to Sublessee or apply such amounts to the account of Sublessee promptly
after discovering such unauthorized payments.

 

4.                                       Taxes.  The parties acknowledge that, with the
exception of 2.(g) and (h), the payments specified in Section 2 from Sublessee
to Sublessor are subject to the federal excise tax imposed under Section 4261
of the Internal Revenue Code of 1986, as amended (the “Commercial
Transportation Tax”). Sublessee shall pay to Sublessor (for remittance to the
appropriate governmental agency) all Commercial Transportation Tax applicable to
flights of the Aircraft conducted hereunder.

 

5.                                       Request
for Flights by Sublessee.  Sublessee
shall provide Sublessor with requests for flight time and proposed flight
schedules as far in advance of any given flight as is reasonably possible and
in any event at least forty-eight (48) hours in advance of any requested
departure time. Requests for flight time shall be in a form, whether written or
oral, mutually convenient to, and agreed upon by the parties. In addition to
the proposed schedules and flight times, Sublessee shall provide at least the
following information for each proposed flight at least twenty-four (24) hours
in advance of the scheduled departure as required by Sublessor or Sublessor’s
flight crew:

 

(a)                                  proposed
departure point;

 

(b)                                 destination;

 

(c)                                  date
and time of flight;

 

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(d)                                 number
of anticipated passengers;

 

(e)                                  nature
and extent of luggage and/or cargo to be carried;

 

(f)                                    date
and time of return flight, if any; and

 

(g)                                 any
other information concerning the proposed flight that may be pertinent or
required by Sublessor or Sublessor’s flight crew.

 

6.                                       Scheduling Flights.  Sublessor shall have final authority over
the scheduling of the Aircraft; provided, however, that Sublessor shall use
reasonable efforts to accommodate Sublessee’s needs and to avoid conflicts in
scheduling.  Sublessee acknowledges that
maintenance and inspection of the Aircraft shall take precedence over
scheduling of the Aircraft.

 

7.                                       Maintenance
of Aircraft.  Sublessor shall be
solely responsible for securing maintenance, preventive maintenance and all
required or otherwise necessary inspections of the Aircraft and shall take such
requirements into account in scheduling the Aircraft. No period of maintenance,
preventive maintenance or inspection shall be delayed or postponed for the
purpose of scheduling the Aircraft, unless such maintenance or inspection can
be safely conducted at a later time in compliance with all applicable laws and
regulations, and within the discretion of the pilot-in-command. The
pilot-in-command shall have final and complete authority to cancel or terminate
any flight for any reason or condition which in his or her judgment would
compromise the safety of the flight.

 

8.                                       Operational
Control.  “Operational control” as
defined in the FARs and for the purposes of this Agreement, with respect to a
flight, means the exercise of authority over initiating, conducting, or
terminating a flight. Sublessor shall have operational control of the Aircraft,
which shall include, without limitation, providing the flight crew, selecting
the pilot-in-command and all other physical and technical operations of the
Aircraft.

 

9.                                       Flight
Crew.  Sublessor shall employ, or
contract with others to employ, pay for and provide to Sublessee, a qualified
flight crew for each flight undertaken under this Agreement.

 

10.                                 Safety
of Flights.  In accordance with
applicable FARs, the qualified flight crew provided by Sublessor shall exercise
all of its duties and responsibilities in regard to the safety of each flight
conducted hereunder. Sublessee specifically agrees that the flight crew, in its
sole and absolute discretion, may terminate any flight, refuse to commence any
flight, or take other action which in the judgment of the pilot-in-command is
necessitated by considerations of safety. No such action of the
pilot-in-command shall create any liability for loss, injury, damage or delay
to Sublessee or any other person. The parties further agree that Sublessor
shall not be liable for delay or failure to furnish the Aircraft and crew
pursuant to this Agreement when such failure is caused by government regulation
or authority, mechanical difficulty, war, civil commotion, strikes or labor
disputes, weather conditions, acts of God or other reasons beyond Sublessor’s
reasonable control.

 

3

 

11.                                 Title.  Sublessee acknowledges that Sublessor has
leased the Aircraft from Jostens Holdings, Inc. (“Lessor”) which is also the
owner of the Aircraft (“Owner”).

 

12.                                 Hull
and Liability Insurance.  Lessor
shall arrange for and maintain at all times during the term of this Agreement
at its expense (a) aircraft liability insurance for the Aircraft in the form
and substance and with such insurers as is customary for large corporate
aircraft of the type similar to the Aircraft, but in any event with limits of
not less than $100,000,000.00 single limit and shall cause Sublessee to be
named as an additional insured thereunder and (b) aircraft hull insurance for
the Aircraft in an amount to be determined by Lessor.  A certificate of insurance (and, upon request, a copy of the
insurance policy(ies)) shall be furnished to Sublessee after the execution of
this Agreement and prior to flights being conducted under this Agreement. In
addition, Lessor shall provide Sublessee with advance written notice prior to
amending or terminating any insurance on the Aircraft and shall provide
Sublessee with a certificate of insurance promptly after entering into any
amended or newly issued insurance policy.

 

13.                                 Additional
Insurance.  Sublessor shall provide
such additional insurance coverage as Sublessee may reasonably request or
require; provided, however, that the cost of such additional insurance, if any,
shall be borne by Sublessee as set forth in Section 2(d) hereof.

 

14.                                 Representations
of Sublessor.  Sublessor represents
and warrants that:

 

(a)                                  It
has the right, power and authority to enter into and perform its obligations
under this Agreement, and the execution and delivery of this Agreement by
Sublessor have been duly authorized by all necessary action on the part of
Sublessor. This Agreement constitutes a legal, valid and binding obligation of
Sublessor, enforceable in accordance with its terms.

 

(b)                                 It
is a corporation duly organized, existing and in good standing under the laws
of the State of Minnesota and has all necessary power and authority under
applicable law and its organizational documents to own or lease its properties
and to carry on its business as presently conducted.

 

(c)                                  It
is a “citizen of the “United States” as defined in Section 40102(a)(15) of
Title 49, United States Code.

 

15.                                 Representations
of Sublessee.  Sublessee represents
and warrants that:

 

(a)                                  It
will use the Aircraft for and on account of its own business only in strict
accordance with the provisions of this Agreement and will neither sell seats to
passengers nor sell space for cargo or otherwise use the Aircraft for the
purpose of providing transportation of passengers or cargo in air commerce for
compensation or hire.

 

(b)                                 It
shall refrain from incurring any mechanics or other lien in connection with
inspection, preventive maintenance, maintenance or storage of the Aircraft or
otherwise, whether permissible or impermissible under this Agreement, and that
it shall refrain from attempting to convey, mortgage, assign, lease or any way

 

4

 

alienate the Aircraft or from creating any
kind of lien or security interest involving the Aircraft, or do anything or
take any action that might mature through notice or the passage of time into
such a lien.

 

(c)                                  During
the term of this Agreement, it will abide by and conform to all such laws,
governmental and airport orders, rules and regulations, as shall from time to
time be in effect relating in any way to the operation and use of the Aircraft
by a time-sharing Sublessee, including, without limitation, Part 91 of the
FARs.

 

16.                                 Aircraft
Base.  For purposes of this
Agreement, the permanent base of operation of the Aircraft shall be Holman
Field in Saint Paul, Minnesota.

 

17.                                 Limitation
of Liability; Indemnification.  Each
party to this Agreement agrees to indemnify and hold harmless the other party
and its respective officers, directors, partners, employees, shareholders, and
affiliates from any claim, damage, loss, or expense, including reasonable
attorney’s fees, resulting from the bodily injury or property damage caused by
an occurrence and arising out of the leasing, maintenance, or use of the
Aircraft which results from the gross negligence or willful misconduct of such
party; provided however that neither party shall be liable for any such loss to
the extent such loss: (a) is covered by the insurance policies described in
Sections 12 and 13; (b) is covered by such policies but the amount of such loss
exceeds the policy limits; or (c) consists of expense incurred in connection
with any loss covered, in whole or in part, by such policies but such expenses
are not payable under such policies.

 

EACH PARTY AGREES THAT (A) THE PROCEEDS OF INSURANCE
TO WHICH IT IS ENTITLED, (B) ITS RIGHTS TO INDEMNIFICATION FROM THE OTHER PARTY
UNDER THIS SECTION, AND (C) ITS RIGHT TO DIRECT DAMAGES ARISING IN CONTRACT
FROM A MATERIAL BREACH OF THE OTHER PARTY’S OBLIGATIONS UNDER THIS AGREEMENT
ARE THE SOLE REMEDIES FOR ANY DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS
AGREEMENT OR THE SERVICES PROVIDED HEREUNDER OR CONTEMPLATED HEREBY. EXCEPT AS
SET FORTH IN THIS SECTION 17, EACH PARTY WAIVES ANY RIGHT TO RECOVER ANY
DAMAGE, LOSS, OR EXPENSE ARISING OUT OF THIS AGREEMENT OR THE SERVICES PROVIDED
HEREUNDER OR CONTEMPLATED HEREBY. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR
OR HAVE ANY DUTY FOR INDEMNIFICATION OR CONTRIBUTION TO THE OTHER PARTY FOR ANY
CLAIMED INDIRECT, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR ANY
DAMAGES CONSISTING OF DAMAGES FOR LOSS OF USE OR DEPRECIATION OF VALUE OF THE
AIRCRAFT, LOSS OF PROFITS OR INSURANCE DEDUCTIBLE.

 

The provisions of this Section 17 shall survive the
termination or expiration of this Agreement.

 

18.                                 Termination.  Either party may terminate this Agreement
upon five (5) business days’ prior written notice to the other party.

 

19.                                 Notices.  All notices and other communications under
this Agreement shall be in writing (except as permitted in Section 5) and shall
be given (and shall be deemed to

 

5

 

have been duly given upon receipt or refusal
to accept receipt) by personal delivery, the next business day if given by
facsimile (with a simultaneous confirmation copy sent by first class mail
properly addressed and postage prepaid) or by a reputable overnight courier
service, addressed as follows:

 

If to
Sublessor:                                                               Jostens,
Inc.

Attn:  Chief Financial Officer

5501 Norman Center Drive

Minnesota, MN  55437

(952) 830-3293

 

With a copy to:                                                             General
Counsel

 

If to
Sublessee:                                                              Robert
C. Burhmaster

4808
Rolling Green Parkway

Edina,
MN  55436

 

or to such other person or address as either party
shall from time to time designate by writing to the other party.

 

20.                                 Successors
and Assigns.  Neither this Agreement
nor any party’s interest herein shall be assignable without the other party’s
written consent thereto. This Agreement shall inure to the benefit of and be
binding upon the parties hereto, their heirs, representatives, successors and
permitted assigns.

 

21.                                 Governing
Law and Consent to Jurisdiction. 
This Agreement is entered into under and is to be construed in
accordance with the laws of the State of Minnesota.  The parties hereby consent and agree to submit to the exclusive
jurisdiction and venue of any state or federal court in the State of Minnesota
in any proceedings hereunder, and each hereby waives any objection to any such
proceedings based on improper venue or forum nonconveniens or similar principles.  The parties hereto hereby further consent
and agree to the exercise of such personal jurisdiction over them by such
courts with respect to any such proceedings, waive any objection to the
assertion or exercise of such jurisdiction and consent to process being served
in any such proceedings in the manner provided for the giving of notices
hereunder.

 

22.                                 Recitals.  The Recitals preceding this Agreement are
hereby incorporated by reference in their entirety and made a part hereof.

 

23.                                 Further
Acts.  Sublessor and Sublessee shall
each from time to time perform such other and further acts and execute such
other and further instruments as may be required by law or which may be
reasonably necessary to carry out the intents and purposes of this Agreement.

 

24.                                 Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original, and all of which
shall constitute one and the same Agreement, binding on all the parties
notwithstanding that all the parties are not signatories to the same
counterpart.

 

6

 

25.                                 TRUTH
IN LEASING STATEMENT.

 

THE AIRCRAFT, AS EQUIPMENT, BECAME SUBJECT TO THE
MAINTENANCE REQUIREMENTS OF PART 91 OF THE FEDERAL AVIATION REGULATION (“FARS”)
UPON THE REGISTRATION OF THE AIRCRAFT WITH THE FEDERAL AVIATION
ADMINISTRATION.  PRIOR TO EXECUTING THIS
AGREEMENT, SUBLESSOR REVIEWED THE AIRCRAFT’S MAINTENANCE AND OPERATING LOGS AND
FOUND THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER PART 91 OF THE
FARS, AS APPLICABLE, DURING THE LAST 12 MONTHS.  SUBLESSOR CERTIFIES, AND SUBLESSEE ACKNOWLEDGES THAT THE AIRCRAFT
WILL BE MAINTAINED AND INSPECTED UNDER PART 91 OF THE FARS FOR OPERATIONS TO BE
CONDUCTED UNDER THIS LEASE. UPON EXECUTION OF THIS LEASE, AND DURING THE TERM
HEREOF, SUBLESSOR, WHOSE NAME AND ADDRESS ARE JOSTENS, INC., 5501 NORMAN CENTER
DRIVE, MINNEAPOLIS, MINNESOTA, 55437, ACTING BY AND THROUGH DAVID TAYEH
(SIGNATURE: s/s David A. Tayeh), WHO EXECUTES THIS SECTION SOLELY IN HIS
CAPACITY AS CHIEF FINANCIAL OFFICER OF SUBLESSOR, CERTIFIES THAT SUBLESSOR AND
NOT SUBLESSEE SHALL BE RESPONSIBLE FOR THE OPERATIONAL CONTROL OF THE AIRCRAFT
UNDER THIS AGREEMENT. SUBLESSOR FURTHER CERTIFIES THAT IT UNDERSTANDS ITS
RESPONSIBILITIES FOR COMPLIANCE WITH APPLICABLE FARS. THE PARTIES HERETO
ACKNOWLEDGE THAT AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND
PERTINENT FARS MAY BE OBTAINED FROM THE NEAREST FEDERAL AVIATION ADMINISTRATION
FLIGHT STANDARD DISTRICT OFFICE, GENERAL AVIATION DISTRICT OFFICE OR AIR
CARRIER DISTRICT OFFICE.  THE
“INSTRUCTIONS FOR COMPLIANCE WITH TRUTH IN LEASING REQUIREMENTS” ATTACHED
HERETO ARE INCORPORATED HEREIN BY REFERENCE.

 

[Signature Page
Follows]

 

7

 

IN WITNESS WHEREOF, the parties have executed this
Agreement.

 

 

	
  JOSTENS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/  Marjorie
  J. Brown

  	
   

  	
  March 11, 2004 
  4:00 p.m.

  	
   

  
	
   

  	
  Name: Marjorie J. Brown

  	
  Date and Time of
  Execution

  
	
   

  	
  Title: Vice President
  and Treasurer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ROBERT C. BURHMASTER

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert C.
  Buhrmaster

  	
   

  	
  March 11, 2004 
  4:00 p.m.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date and Time of
  Execution

  
							

 

8

 

INSTRUCTIONS FOR
COMPLIANCE WITH “TRUTH IN LEASING”

 

REQUIREMENTS

 

1.                                       Mail
a copy of the lease to the following address via certified mail, return receipt
requested, immediately upon execution of the lease (14 C.F.R. 91.23 requires
that the copy be sent within twenty-four hours after it is signed):

 

Federal Aviation
Administration

Aircraft Registration
Branch

ATTN: Technical Section

P. O. Box 25724

Oklahoma City, Oklahoma
73125

 

2.                                       Telephone
the nearest Flight Standards District Office at least forty-eight hours prior
to the first flight under this lease.

 

3.                                       Carry
a copy of the lease in the aircraft at all times.

 

9Exhibit
10.13

 

DLJ Merchant Banking III,
Inc.

Eleven Madison Avenue

New York, NY  10010

 

	
   

  	
  March 24, 2004

  

 

PRIVATE AND CONFIDENTIAL

 

Jostens, Inc.

5501 American Boulevard

Minneapolis, Minnesota 55437

Attention:  Robert Buhrmaster

 

Ladies and Gentlemen:

 

This letter agreement (as amended from time to time,
this “Agreement”), by and among Jostens, Inc. (the “Company”),
and DLJ Merchant Banking III, Inc. (“DLJMB”; and the Company and DLJMB
are collectively referred to as the “Parties”), amends and restates in its
entirety that certain letter agreement dated as of July 29, 2003 between the
Parties, pursuant to which the Company engaged DLJMB to undertake certain
monitoring services (the “Services”) on the Company’s behalf.

 

As
compensation for the Services, the Company agrees:

 

(i)
to pay DLJMB an annual financial advisory retainer of $1,000,000, payable in
equal quarterly installments on the first business day of each calendar quarter
beginning on the date hereof (for a pro rated amount in respect of the period from
the date hereof through March 31, 2004) and continuing through the date of
termination or expiration of this Agreement (if payable upon termination of
this Agreement, such final installment to be paid on the effective date of such
termination and prorated for any final period consisting of less than ninety
(90) days);

 

(ii)
to provide DLJMB with a credit beginning on the date hereof and continuing
through the date of termination or expiration of this Agreement in an annual
amount equal to $500,000 (the “Credit”), which Credit shall be applied
solely to offset DLJMB’s payment obligations under that certain Time-Sharing
Agreement, dated as of March 15, 2004, by and among the Parties, and which
unused portion of such Credit shall expire on December 31 of each year and
shall not be carried forward; and

 

(iii) to pay and reimburse DLJMB for the reasonable out-of-pocket costs and
expenses, reasonably incurred by DLJMB or its affiliates in connection with (x)
the Services and (y) any services provided at the request of the Company by
DLJMB or members of the Company’s Board of Directors designated by DLJMB, and
including, without limitation, attendance at meetings of the Company’s Board of
Directors, and the other rights and obligations arising out of the ownership of
shares of capital stock of the Company by DLJMB and its affiliates, including,

 

 

without
limitation, in each case, (A) fees and disbursements of any independent
professionals and organizations, including independent accountants, outside
legal counsel or consultants, (B) costs of any outside services or independent
contractors such as financial printers, couriers, business publications,
on-line financial services or similar services, (C) transportation, per diem
costs, word processing expenses or any similar expense not associated with its
ordinary operations, and (D) expenses incurred in complying with legal
requirements resulting from the ownership of shares in the Company by its
affiliates (collectively, the “Out-of-Pocket Expenses”).

 

As
DLJMB has acted and will be acting on your behalf, it is our practice to
receive indemnification and the Company agrees to the indemnification and other
obligations set forth in Annex A attached hereto, which Annex A
is incorporated herein by reference and an integral part hereof.

 

The
Company acknowledges and agrees that DLJMB has been retained hereunder solely
to provide the Services set forth in this Agreement.  In such capacity, DLJMB shall act as an independent contractor,
and any duties of DLJMB arising out of its engagement hereunder shall be owed
solely to the Company.  Subject to
applicable law, nothing in this Agreement shall in any way preclude us or our
affiliates or their respective partners (both general and limited), officers,
directors, employees, agents or representatives from engaging in any business
activities or from performing services for our or their own account or for the
account of others, including for companies that may be in competition with the
business conducted by the Company.

 

The
Company shall make available to DLJMB all available financial and other
information concerning its business and operations which DLJMB reasonably
requests and will provide DLJMB with access to the Company’s officers,
directors, employees, independent accountants and legal counsel.  In performing its Services, DLJMB shall be
entitled to rely without investigation upon all information that is available
from public sources as well as all other information supplied to it by or on
behalf of the Company or its advisors and, except as otherwise specifically
agreed to in a writing signed by both parties, shall not in any respect be
responsible for the accuracy or completeness of, or have any obligation to
verify, the same or to conduct any appraisal of assets.

 

No
advice rendered by DLJMB, whether formal or informal, may be disclosed, in
whole or in part, or summarized, excerpted from or otherwise referred to
without DLJMB’s prior written consent. 
To the extent consistent with legal requirements, all information given
to one party of this Agreement (such party the “Recipient Party”) by the
other party (the “Providing Party”), including, without limitation, this
Agreement, unless publicly available or otherwise available to the Recipient
Party without restriction or breach of any confidentiality agreement, will be
held by the Recipient Party in confidence and will not, without the Providing
Party’s prior approval, be disclosed to anyone other than the Recipient’s
agents and advisors who require such information to perform services for the
Providing Party as contemplated by this Agreement (and who agree to use such
information only in connection with such services) or used by such person for
any purpose other than those contemplated by this Agreement.  Each party

 

2

 

hereto
shall be responsible for violations of its respective agents and advisors of
the obligations set forth herein.

 

This
Agreement shall be assignable by DLJMB in its sole discretion and shall be
binding on successors and assigns.  This
Agreement shall be terminable (i) by DLJMB at any time upon thirty (30) days’
prior written notice to the Company and (ii) by the Company at any time
following the date that DLJMB (together with any investment funds or accounts
managed or arranged by it) directly or indirectly owns less than 10% of its
initial common equity investment in the Company; provided, however, that the
Company may not terminate this Agreement prior to July 29, 2008.  Upon any termination of this Agreement,
DLJMB will be entitled to prompt reimbursement of all Out-of-Pocket
Expenses.  The indemnity and other
provisions contained in Annex A will also remain operative and in full
force and effect regardless of any termination of this Agreement.

 

This
Agreement including Annex A attached hereto, incorporates the entire
understanding of the parties and supersedes all previous agreements with
respect to the subject matter hereof and shall be governed by, and construed
and enforced in accordance with, the laws of the State of New York.  This Agreement shall be binding upon and
inure to the benefit of the Company, DLJMB, each Indemnified Person (as defined
in Annex A attached hereto) and their respective successors and assigns.

 

The
prevailing party in any suit, action or proceeding arising out of or relating
to this Agreement shall be entitled to recover from the non-prevailing party
all of the attorney fees and other expenses the prevailing party may incur in
such suit, action or proceeding and in any subsequent suit to enforce a
judgment.

 

If
any term, provision, covenant or restriction contained in this Agreement,
including Annex A attached hereto, is held by a court of competent
jurisdiction or other authority to be invalid, void, unenforceable or against
its regulatory policy, the remainder of the terms, provisions, covenants and
restrictions contained in this Agreement shall remain in full force and effect
and shall in no way be affected, impaired or invalidated.

 

This
Agreement may be executed by one or more parties to this Agreement or any
number of separate counterparts, and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

 

3

 

After reviewing this letter,
please confirm that the foregoing is in accordance with your understanding by
signing and returning to me the duplicate of this Agreement attached hereto,
whereupon it shall be our binding Agreement.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  DLJ MERCHANT BANKING
  III, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Wittels

  	
   

  
	
   

  	
   

  	
  Name: David Wittels

  
	
   

  	
   

  	
  Title:  Managing Director

  

 

 

ACCEPTED AND
AGREED TO AS OF THE DATE FIRST WRITTEN ABOVE

 

 

	
  JOSTENS, INC.

  
	
   

  
	
  By:

  	
  /s/ Robert C.
  Buhrmaster

  	
   

  
	
   

  	
  Name:  Robert C. Buhrmaster

  
	
   

  	
  Title:  Chairman of the Board and CEO

  

 

4

 

ANNEX A

 

This Annex A is a
part of and is incorporated into that certain letter agreement (together, the “Agreement”)
dated March 24, 2004 by and between Jostens, Inc. (the “Company”) and
DLJ Merchant Banking III, Inc. (“DLJMB”).

 

The Company will indemnify
and hold harmless DLJMB and its affiliates, and the respective directors,
officers, agents and employees of DLJMB and its affiliates (other than the
Company)  (DLJMB and each such entity or
person, an “Indemnified Person”), from and against any losses, claims,
damages, judgments, assessments, costs and other liabilities  (collectively “Liabilities”), and
will reimburse each Indemnified Person for all fees and expenses (including the
reasonable fees and expenses of counsel) (collectively, “Expenses”) as
they are incurred in investigating, preparing, 
pursuing or defending any claim, action, proceeding or investigation,
whether or not in connection with pending or 
threatened litigation and whether or not any Indemnified Person  is a party (collectively, “Actions”),
arising out of or in connection with advice or services rendered or to be
rendered by any Indemnified Person pursuant to this Agreement, the transactions
contemplated hereby or any Indemnified Person’s actions or inactions in
connection with any such advice, services or transactions; provided that
the Company will not be responsible for any Liabilities or Expenses of any
Indemnified Person that are determined by a judgment of a court of competent
jurisdiction which is no longer subject to appeal or further review to have
resulted solely from such Indemnified Person’s gross negligence or willful
misconduct in connection with any of the advice, actions, inactions or services
referred to above.  The Company also
agrees to reimburse each Indemnified Person for all Expenses as they are
incurred in connection with enforcing such Indemnified Person’s rights under
this Agreement (including, without limitation, its rights under this Annex A).

 

Upon receipt by an
Indemnified Person of actual notice of an Action against such Indemnified
Person with respect to which indemnity may be sought under this Agreement, such
Indemnified Person shall promptly notify the Company in writing; provided
that failure so to notify the Company shall not relieve the Company from any
liability which the Company may have on account of this indemnity or otherwise,
except to the extent the Company shall have been materially prejudiced by such
failure.  The Company shall, if
requested by DLJMB, assume the defense of any such Action including the
employment of counsel reasonably satisfactory to DLJMB.  Any Indemnified Person shall have the right
to employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of
such Indemnified Person, unless:  (i)
the Company has failed promptly to assume the defense and employ counsel or
(ii) the named parties to any such Action (including any impleaded parties) include
such Indemnified Person and the Company, and such Indemnified Person shall have
been advised by counsel that there may be one or more legal defenses available
to it which are different from or in addition to those available to the
Company; provided that the Company shall not in such event be
responsible hereunder for the fees and expenses of more than one firm of
separate counsel in connection with any Action in the same jurisdiction, in
addition to any local counsel.  The
Company shall not be liable for any settlement of any Action effected without
its written consent.  In addition, the
Company will not, without prior written

 

 

consent of DLJMB, settle, compromise or
consent to the entry of any judgment in or otherwise seek to terminate any
pending or threatened Action in respect of which indemnification or
contribution may be sought hereunder (whether or not any Indemnified Person is
a party thereto) unless such settlement, compromise, consent or termination
includes an unconditional release of each Indemnified Person from all
Liabilities arising out of such Action.

 

In the event the foregoing
indemnity is unavailable to an Indemnified Person other than in accordance with
this Agreement, the Company shall contribute to the Liabilities and Expenses paid
or payable by such Indemnified Person in such proportion as is appropriate to
reflect (i) the relative benefits to the Company and its shareholders, on the
one hand, and to DLJMB, on the other hand, of the matters contemplated by this
Agreement or (ii) if the allocation provided by the immediately preceding
clause is not permitted by the applicable law, not only such relative benefits
but also the relative fault of the Company, on the one hand, and DLJMB, on the
other hand, in connection with the matters as to which such Liabilities or
Expenses relate, as well as any other relevant equitable considerations; provided
that in no event shall the Company contribute less than the amount necessary to
ensure that all Indemnified Persons, in the aggregate, are not liable for any
Liabilities and Expenses in excess of the amount of fees actually received by
DLJMB pursuant to the Agreement.  For
purposes of this paragraph, the relative benefits to the Company and its
shareholders, on the one hand, and to DLJMB, on the other hand, of the matters
contemplated by the Agreement shall be deemed to be in the same proportion as
(a) the total value paid or contemplated to be paid or received or contemplated
to be received by the Company or the Company’s shareholders, as the case may
be, in the transaction or transactions that are within the scope of the
Agreement, whether or not any such transaction is consummated, bears to (b) the
fees paid or to be paid to DLJMB under the Agreement.

 

The Company also agrees that
no Indemnified Person shall have any liability (whether direct or indirect, in
contract or tort or otherwise) to the Company for or in connection with advice
or services rendered or to be rendered by any Indemnified Person pursuant to
this Agreement, the transactions contemplated hereby or any Indemnified
Person’s actions or inactions in connection with any such advice, services or
transactions except for Liabilities (and related Expenses) of the Company that
are determined by a judgment of a court of competent jurisdiction which is no
longer subject to appeal or further review to have resulted solely from such
Indemnified Person’s gross negligence or willful misconduct in connection with
any such advice, actions, inactions or services.

 

The Company’s obligations
hereunder shall be in addition to any rights that any Indemnified Person may
have at common law or otherwise. The Company acknowledges that in connection
with the services provided under the Agreement, DLJMB has acted and will be
acting as an independent contractor and not in any other capacity with duties
owing solely to the Company.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, applicable to contracts made and to be performed therein
and, in connection therewith, the parties hereto consent to the exclusive
jurisdiction of the Supreme Court of the State of New York sitting in New

 

6

 

York County or the United States District
Court for the Southern District of New York and the respective appellate courts
thereof.  Notwithstanding the foregoing,
solely for the purpose of enforcing the Company’s obligations hereunder, the
Company consents to personal jurisdiction, service and venue in any court
proceeding in which any claim subject to this Agreement is brought by or
against any Indemnified Person.  DLJMB
HEREBY AGREES, AND THE COMPANY HEREBY AGREES ON ITS OWN BEHALF AND, TO THE
EXTENT PERMITTED BY APPLICABLE LAW, ON BEHALF OF ITS SECURITY HOLDERS, TO WAIVE
ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM, COUNTER-CLAIM OR ACTION
ARISING OUT OF THE ENGAGEMENT, DLJMB’S PERFORMANCE THEREOF OR THIS AGREEMENT.

 

The reimbursement, indemnity
and contribution obligations of the Company set forth herein shall apply to any
modification of this Agreement and shall remain in full force and effect
regardless of any termination of, or the completion of any Indemnified Person’s
services under or in connection with, this Agreement.

 

7

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