##### 



EXHIBIT 10.20
 CREDIT AGREEMENT
    AMERICAN COLOR GRAPHICS FINANCE, LLC,




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PageARTICLE I Definitions
    
    
    1Section 1.01 Defined Terms
    
    
    1Section 1.02 Accounting Terms; GAAP
    
    
    22Section 1.03 Computation of Time Periods
    
    
    22Section 1.04 Interpretation
    
    
    22ARTICLE II Amount and Terms of Credit
    
    
    24Section 2.01 Commitments of the Lenders
    
    
    24Section 2.02 [Intentionally Omitted]
    
    
    24Section 2.03 [Intentionally Omitted]
    
    
    24Section 2.04 Making of Revolving Loans
    
    
    24Section 2.05 Overadvances
    
    
    26Section 2.06 Swingline Loans
    
    
    26Section 2.07 Authorization to Debit; Overadvance
    
    
    26Section 2.08 Settlements Amongst Lenders
    
    
    26Section 2.09 Notes
    
    
    28Section 2.10 Interest on Loans
    
    
    28Section 2.11 Default Interest
    
    
    29Section 2.12 Certain Fees
    
    
    29Section 2.13 Unused Fee
    
    
    29Section 2.14 Reserved
    
    
    30Section 2.15 Nature of Fees
    
    
    30Section 2.16 Termination or Reduction of Commitments
    
    
    30Section 2.17 Alternate Rate of Interest
    
    
    30Section 2.18 Conversion and Continuation of Revolving Loans
    
    
    31Section 2.19 Mandatory Prepayment; Cash Collateral
    
    
    32Section 2.20 Optional Prepayment of Loans; Reimbursement of Lenders
    
    
    32Section 2.21 Maintenance of Loan Account; Statements of Account
    
    
    34Section 2.22 Cash Receipts
    
    
    34Section 2.23 Application of Payments
    
    
    35Section 2.24 Increased Costs
    
    
    38Section 2.25 Change in Legality
    
    
    39Section 2.26 Payments; Sharing of Setoff
    
    
    39Section 2.27 Taxes
    
    
    41Section 2.28 Security Interests in Collateral
    
    
    43Section 2.29 Mitigation Obligations; Replacement of Lenders
    
    
    43ARTICLE III Representations and Warranties
    
    
    43Section 3.01 Existence, Qualification and Power; Compliance with Laws
    
    
    44Section 3.02 Authorization; No Contravention
    
    
    44Section 3.03 Governmental Authorization; Other Consents
    
    
    44
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PageSection 3.04 Binding Effect
    
    
    44Section 3.05 Financial Condition
    
    
    44Section 3.06 Properties
    
    
    45Section 3.07 Litigation
    
    
    45Section 3.08 Investment Company Status
    
    
    45Section 3.09 Compliance with Laws
    
    
    45Section 3.10 Taxes
    
    
    45Section 3.11 ERISA
    
    
    46Section 3.12 Disclosure
    
    
    46Section 3.13 Capitalization; Joint Ventures, Subsidiaries
    
    
    46Section 3.14 Insurance
    
    
    46Section 3.15 Labor Matters
    
    
    47Section 3.16 Security Documents
    
    
    47Section 3.17 Federal Reserve Regulations
    
    
    47Section 3.18 Solvency
    
    
    47Section 3.19 Chief Executive Office; Books & Records; Legal Name; State of
Formation
    
    
    47ARTICLE IV Conditions
    
    
    47Section 4.01 Closing Date
    
    
    47Section 4.02 Conditions Precedent to Initial Loan
    
    
    51Section 4.03 Conditions Precedent to Each Loan
    
    
    52ARTICLE V Affirmative Covenants
    
    
    54Section 5.01 Financial Statements and Other Information
    
    
    54Section 5.02 Certificates; Other Information
    
    
    56Section 5.03 Notices of Material Events
    
    
    56Section 5.04 Information Regarding Collateral
    
    
    57Section 5.05 Existence; Conduct of Business
    
    
    57Section 5.06 Payment of Obligations
    
    
    57Section 5.07 Maintenance of Properties
    
    
    58Section 5.08 Insurance
    
    
    58Section 5.09 Bank Products
    
    
    58Section 5.10 Books and Records; Inspection and Audit Rights; Accountants
    
    
    58Section 5.11 Minimum Excess Availability/Cash Collateral
    
    
    59Section 5.12 Compliance with Laws
    
    
    59Section 5.13 Use of Proceeds
    
    
    59Section 5.14 Further Assurances
    
    
    60ARTICLE VI Negative Covenants
    
    
    60Section 6.01 Indebtedness and Other Obligations
    
    
    60Section 6.02 Liens
    
    
    60Section 6.03 Fundamental Changes
    
    
    61Section 6.04 Investments, Loans, Advances, Guarantees and Acquisitions
    
    
    61Section 6.05 Asset Sales
    
    
    61Section 6.06 Restricted Payments; Certain Payments of Indebtedness
    
    
    61Section 6.07 Transactions with Affiliates
    
    
    62
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PageSection 6.08 Restrictive Agreements
    
    
    62Section 6.09 Amendment of Material Documents
    
    
    62Section 6.10 Subsidiaries
    
    
    62Section 6.11 Capital Expenditures
    
    
    62Section 6.12 Fiscal Year; Accounting Policies
    
    
    63ARTICLE VII Events of Default
    
    
    63Section 7.01 Events of Default
    
    
    63Section 7.02 Remedies on Default
    
    
    66Section 7.03 Application of Proceeds
    
    
    66ARTICLE VIII The Agents
    
    
    66Section 8.01 Administration by Administrative Agent
    
    
    66Section 8.02 The Collateral Agent
    
    
    67Section 8.03 Agreement of Required Lenders
    
    
    67Section 8.04 Liability of Agents
    
    
    67Section 8.05 Notice of Default; Actions on Default
    
    
    68Section 8.06 Lenders Credit Decisions
    
    
    69Section 8.07 Reimbursement and Indemnification
    
    
    69Section 8.08 Rights of Agents
    
    
    69Section 8.09 Notice of Transfer
    
    
    70Section 8.10 Successor Agent
    
    
    70Section 8.11 Reports and Financial Statements
    
    
    70Section 8.12 Delinquent Lender
    
    
    70Section 8.13 Intercreditor Agreement
    
    
    71ARTICLE IX Miscellaneous
    
    
    72Section 9.01 Notices
    
    
    72Section 9.02 Waivers; Amendments
    
    
    74Section 9.03 Expenses; Indemnity; Damage Waiver
    
    
    75Section 9.04 Reserved
    
    
    77Section 9.05 Successors and Assigns
    
    
    77Section 9.06 Survival
    
    
    79Section 9.07 Counterparts; Integration; Effectiveness
    
    
    79Section 9.08 Severability
    
    
    80Section 9.09 Right of Setoff
    
    
    80Section 9.10 Governing Law; Jurisdiction; Consent to Service of Process
    
    
    80Section 9.11 WAIVER OF JURY TRIAL
    
    
    81Section 9.12 Headings
    
    
    81Section 9.13 Interest Rate Limitation
    
    
    81Section 9.14 Additional Waivers
    
    
    81Section 9.15 Confidentiality
    
    
    82Section 9.16 Publicity
    
    
    83Section 9.17 USA Patriot Act
    
    
    83Section 9.18 Replacement of Lenders
    
    
    83
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A.
    
    Assignment and AcceptanceB.
    
    Revolving NotesC.
    
    Swingline NoteD-1.
    
    Form of Compliance Certificate  ACGD-2.
    
    Form of Compliance Certificate  BorrowerE.
    
    Borrowing Base CertificateF.
    
    Form of Control AgreementG.
    
    Form of Intercreditor AgreementH-1.
    
    Form of Borrower Officers CertificateH-2.
    
    Form of Servicer Officers CertificateI
    
    Form of Notice of Borrowing/ConversionJ
    
    Form of OpinionK
    
    Form of True Sale OpinionL
    
    Form of ACG Control AgreementM
    
    Form of ACG Intercreditor AgreementSCHEDULES1.1(a)
    
    Lenders and Commitments2.22(c)
    
    Disbursement Account3.13
    
    Capitalization; Joint Ventures; Subsidiaries3.14
    
    Insurance3.19
    
    Legal Name; State of Organization5.01
    
    Permitted Deviations from GAAP for Borrowers Unconsolidated Financial Statements and
Additional Unconsolidated Unaudited Financial Information5.02(c)
    
    Financial and Collateral Reporting Requirements
 iv




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CREDIT AGREEMENT
 AMERICAN COLOR GRAPHICS FINANCE, LLC, Borrower
 Lenders
 BANK OF AMERICA, N.A. Administrative
Agent Collateral Agent
 PRELIMINARY STATEMENT
 WHEREAS
 WHEREAS
 WHEREAS
 WHEREAS
 NOW THEREFORE
 ARTICLE I
 Definitions
 Section 1.01 Defined Terms .




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Account accounts
 ACG
 ACG Control Agreement
 ACG Intercreditor Agreement
 ACG Remittances
 ACG Senior Facility
 Adjusted LIBO Rate
 Administrative Agent
 Affiliate
 Agents
 Agreement
 Applicable Law
 Applicable Margin
 2




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Approved Fund
 Assignment and Acceptance Exhibit A
 Availability
  minus
   minus
  Bank of America
 Bankruptcy Code
 Borrower
 Borrowing
 Borrowing Base
 minus
  Borrowing Base Certificate
 3




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Borrowing Request
 Breakage Costs
 Business Day
 Capital Lease Obligations
 Capital Stock
 Cash Collateral Account
 CERCLA
 Change in Control
 Change in Law
 4




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Charges
 Closing Date
 Code
 Collateral
 Collateral Agent
 Collections
 Commitment
 Commitment Percentage
 Concentration Account
 Confidential Information
 Consent
 Consolidated
 5




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Contractual Obligation
 Contribution Agreement
 Control
 Control Agreement
 Credit Extensions
 Credit Policies
 Default
 Defaulted Receivable
 Delinquent Lender
 Delinquent Lenders Future Commitment
 Depository Bank
 Disbursement Account
 dollars $
 6




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Eligible Assignee provided
 Eligible Obligor
 Eligible Receivables
          7




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Environmental Laws
 Environmental Liability
 ERISA
 ERISA Affiliate
 ERISA Event
 8




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Event of Default
 Excess Availability less
 Excluded Taxes Section 9.05 Section 2.27(e) Section 2.27(a)
 Federal Funds Effective Rate
 Financial Officer
 Fiscal Quarter
 Fiscal Year
 Foreign Lender
 9




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FRB
 Fund
 GAAP
 Governmental Authority
 Guarantee
 Hazardous Materials
 Hedging Agreement
 10




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Holdings
 Indebtedness
 Indemnified Taxes
 Indemnitee
 Insolvency Proceeding
 Intercreditor Agreement
 Interest Payment Date
 11




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Interest Period
 Investment
 Lenders
 Lending Office
 LIBO Borrowing
 LIBO Loan
 LIBO Rate
 12




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Lien
 Loan Account
 Loan Documents
 Loans
 Lockbox
 Margin Stock
 Material Adverse Effect
 Material Contract
 13




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Maturity Date
 Maximum Rate
 Minimum Excess Availability Reserve less
 Minority Lenders
 Monthly Reporting Date
 Moodys
 Multiemployer Plan
 Multiple Employer Plan
 Notes
 Obligations
 14




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Organizational Documents
 Other Taxes
 Overadvance
 Parent
 Participation Register
 Participant
 Payment Date nd
 PBGC
 Permitted Encumbrances
  15




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provided that
 Permitted Investments
       16




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provided that
 Person
 Plan
 Prime Rate 1 2
 Prime Rate Loan
 Purchase Date
 17




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Purchaser
 Receivables Advance Rate
 Refinancing
 Register
 Regulation T
 Regulation U
 Regulation X
 Related Parties
 Release
 Required Lenders
 Reserves
 18




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Restricted Payment
 Revolving Loans
 S&P
 SEC
 Second Lien Indenture
 Secured Parties
 Securities Laws
 Security Agreement
 Security Documents
 Seller
 19




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Senior Amendment
 Servicer
 Servicer Default
 Servicing Agreement
 Servicing Fee
 Settlement Date
 Single Employer Plan
 Solvent
 Statutory Reserve Rate
 20




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Subsidiary
 Swingline Lender
 Swingline Loan
 Synthetic Lease
 Taxes
 Termination Date
 Total Commitments
 Transferred Receivable Representations and Warranties
 Type
 21




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UCC
 Unused Commitment minus
 Unused Fee
 Voting Stock
 Withdrawal Liability
 Section 1.02 Accounting Terms; GAAP .
  Section 1.03 Computation of Time Periods .
  Section 1.04 Interpretation.
   22




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23




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ARTICLE II
 Amount and Terms of Credit
 Section 2.01 Commitments of the Lenders .
     Section 2.02 [Intentionally Omitted]
 Section 2.03 [Intentionally Omitted].
 Section 2.04 Making of Revolving Loans.
   24




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Exhibit
I th
  25




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Section 2.05 Overadvances .
  Section 2.06 Swingline Loans .
   Section 2.07 Authorization to Debit; Overadvance .
  Section 2.08 Settlements Amongst Lenders .
 26




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Settlement Date
  27




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Section 2.09 Notes .
     Section 2.10 Interest on Loans.
    28




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Section 2.11 Default Interest .
  Section 2.12 Certain Fees .
 Closing Fee
 Administrative Agency Fee
 Collateral Monitoring Fee
 Section 2.13 Unused Fee .
 Unused Fee
 29




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Section 2.14 Reserved.
 Section 2.15 Nature of Fees.
  Section 2.16 Termination or Reduction of Commitments .
  Section 2.17 Alternate Rate of Interest .
     30




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Section 2.18 Conversion and Continuation of Revolving Loans .
   pro rata
        31




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Section 2.19 Mandatory Prepayment; Cash Collateral .
       Section 2.20 Optional Prepayment of Loans; Reimbursement of Lenders .
  second
 32




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33




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Section 2.21 Maintenance of Loan Account; Statements of Account .
 Loan Account
  Section 2.22 Cash Receipts .
 Depository Bank Exhibit F Control Agreement Exhibit
G Intercreditor Agreement
  34




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Disbursement Account
  Section 2.23 Application of Payments .
           35




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nd
         36




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provided however
   37




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Section 2.24 Increased Costs.
       38




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Section 2.25 Change in Legality .
   Section 2.26 Payments; Sharing of Setoff .
 th
 39




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provided that
  40




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Section 2.27 Taxes .
 Payments Free of Taxes provided
 Payment of Other Taxes by the Borrower
 Indemnification by the Borrower
 Evidence of Payments
 Status of Lenders
 41




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Treatment of Certain Refunds provided
 42




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Section 2.28 Security Interests in Collateral .
  Section 2.29 Mitigation Obligations; Replacement of Lenders .
 provided however
  ARTICLE III
 Representations and Warranties
  43




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Section 3.01 Existence, Qualification and Power; Compliance with Laws .
  Section 3.02 Authorization; No Contravention .
  Section 3.03 Governmental Authorization; Other Consents .
  Section 3.04 Binding Effect .
  Section 3.05 Financial Condition .
  44




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Section 3.06 Properties .
    Section 3.07 Litigation .
  Section 3.08 Investment Company Status .
  Section 3.09 Compliance with Laws .
  Section 3.10 Taxes .
  45




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Section 3.11 ERISA .
  Section 3.12 Disclosure .
  Section 3.13 Capitalization; Joint Ventures, Subsidiaries .
  Section 3.14 Insurance .
  46




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Section 3.15 Labor Matters .
  Section 3.16 Security Documents .
  Section 3.17 Federal Reserve Regulations .
   Section 3.18 Solvency .
  Section 3.19 Chief Executive Office; Books & Records; Legal Name; State of Formation .
  ARTICLE IV
 Conditions
 Section 4.01 Closing Date .
  47




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Execution of Documents
 Legal Opinion
 Corporate Matters
 Cash Balance
 Officers Certificate
 Reserved
 48




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Financial Statements
 Solvency
 Material Adverse Change
 No Proceedings
 No Investigation
 Material Adverse Effect
 Payment of Obligations
 Lien Search Results
 Filing Documents
 49




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Insurance
 Payment of Fees and Expenses
 No Conflict
 No Change in Laws
 Due Diligence
 Corporate and Capital Structure
 Contribution Agreement
 Servicing Agreement
 Consents and Approvals
 50




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Amendment to ACG Senior Facility
 Other Documentation
 Section 4.02 Conditions Precedent to Initial Loan .
  Control Agreement; Control
 Loan Documents
 Legal Opinion Exhibit J Exhibit K
 Third Party Fairness Opinion
 Take Down Borrowing Base Certificate; Establishing Operating Procedures
 51




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Cash Management
 Borrowing Base Certificate
 Intercreditor Arrangement Exhibit L ACG Control
Agreement Exhibit M ACG Intercreditor
Agreement
 Endorsement
 Section 4.03 Conditions Precedent to Each Loan .
  Notice
 Officers Certificate
 52




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Borrowing Base Certificate
 Payment Instructions to Account Debtors
 Material Adverse Change
 No Proceedings
 No Investigation
 Material Adverse Effect
 Other Documentation
  53




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ARTICLE V
 Affirmative Covenants
  Section 5.01 Financial Statements and Other Information .
    54




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Section 5.01
 55




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Section 5.02 Certificates; Other Information .
   Exhibit E Borrowing Base Certificate
   Section 5.03 Notices of Material Events .
      56




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Section 5.04 Information Regarding Collateral .
  Section 5.05 Existence; Conduct of Business .
  Section 5.06 Payment of Obligations
  57




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Section 5.07 Maintenance of Properties
  Section 5.08 Insurance .
  Section 5.09 Bank Products
  Section 5.10 Books and Records; Inspection and Audit Rights; Accountants .
   58




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provided however
 Section 5.11 Minimum Excess Availability/Cash Collateral .
    Section 5.12 Compliance with Laws .
  Section 5.13 Use of Proceeds .
   59




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Section 5.14 Further Assurances .
   ARTICLE VI
 Negative Covenants
  Section 6.01 Indebtedness and Other Obligations .
   Section 6.02 Liens .
   60




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Section 6.03 Fundamental Changes.
   Section 6.04 Investments, Loans, Advances, Guarantees and Acquisitions .
     Section 6.05 Asset Sales .
  Section 6.06 Restricted Payments; Certain Payments of Indebtedness .
   61




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Section 6.07 Transactions with Affiliates .
  Section 6.08 Restrictive Agreements .
 provided however
 Section 6.09 Amendment of Material Documents
  Section 6.10 Subsidiaries .
  Section 6.11 Capital Expenditures .
  62




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Section 6.12 Fiscal Year; Accounting Policies .
 Section 5.01(d)
 ARTICLE VII
 Events of Default
 Section 7.01 Events of Default .
 Events of Default
       63




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64




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provided however
  65




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Section 7.02 Remedies on Default .
  Section 7.03 Application of Proceeds .
  ARTICLE VIII
 The Agents
 Section 8.01 Administration by Administrative Agent .
  66




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Section 8.02 The Collateral Agent
  Section 8.03 Agreement of Required Lenders .
  Section 8.04 Liability of Agents .
  67




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Section 8.05 Notice of Default; Actions on Default .
   68




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Section 8.06 Lenders Credit Decisions
  Section 8.07 Reimbursement and Indemnification .
  Section 8.08 Rights of Agents
  69




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Section 8.09 Notice of Transfer .
  Section 8.10 Successor Agent .
  Section 8.11 Reports and Financial Statements .
  Section 8.12 Delinquent Lender .
 Delinquent
 70




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Lender
 pro rata Delinquent Lenders Future
Commitment
 Section 8.13 Intercreditor Agreement .
  71




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ARTICLE IX
 Miscellaneous
 Section 9.01 Notices .
   
  For Loan Requests, Borrowing Base Certificates, Other Collateral Reporting
and Financial Reporting:
 th
 
 
 72




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For All Other Notices:
 th
  
  
 
 
  73




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Section 9.02 Waivers; Amendments .
  provided that provided that
 74




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provided further that
 Minority
Lenders
  Section 9.03 Expenses; Indemnity; Damage Waiver .
  75




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Indemnitee provided that
    76




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Section 9.04 Reserved.
 Section 9.05 Successors and Assigns.
  provided that
 th
 77




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Register
  Participant provided that provided Participation Register
 78




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provided that
 Section 9.06 Survival .
  Section 9.07 Counterparts; Integration; Effectiveness .
  79




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Section 9.08 Severability .
  Section 9.09 Right of Setoff .
  Section 9.10 Governing Law; Jurisdiction; Consent to Service of Process .
 THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO
THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION,
INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE RIGHTS OF THE PARTIES HERETO AND
THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO
SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW BUT OTHERWISE WITHOUT
REGARD TO CONFLICT OF LAW PRINCIPLES).
  80




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Section 9.11 WAIVER OF JURY TRIAL .
 THE PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS
CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS. THE PARTIES HERETO REPRESENT THAT EACH HAS REVIEWED THIS WAIVER
AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO
A TRIAL BY THE COURT.
 Section 9.12 Headings .
  Section 9.13 Interest Rate Limitation .
 Charges Maximum Rate
 Section 9.14 Additional Waivers .
  81




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Section 9.15 Confidentiality
 Confidential Information provided that
 82




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Section 9.16 Publicity .
  Section 9.17 USA Patriot Act .
  Section 9.18 Replacement of Lenders .
  83




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provided
       [SIGNATURE PAGES FOLLOW]
 84




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AMERICAN COLOR GRAPHICS FINANCE, LLC,as BorrowerBy:
    /s/Patrick W. KellickName:
    Patrick W. KellickTitle:
    President and Chief Executive OfficerBANK OF AMERICA, N.A.,
as Administrative AgentBy:
    /s/Peter ShermanName:
    Peter ShermanTitle:
    Managing DirectorBANK OF AMERICA, N.A.,
as Collateral AgentBy:
    /s/Peter ShermanName:
    Peter ShermanTitle:
    Managing DirectorBANK OF AMERICA, N.A.,
as a Lender and the Swingline LenderBy:
    /s/Peter ShermanName:
    Peter ShermanTitle:
    Managing Director 85