Document:

Exhibit 4.2

 

EXECUTION COPY

 

Jostens IH Corp.

 

7 5/8 % Senior Subordinated Notes due 2012

 

Exchange and Registration Rights Agreement

 

October 4, 2004

 

Credit Suisse First Boston LLC

Deutsche Bank Securities Inc.

As
representatives of the several Purchasers

named in Schedule I to the Purchase Agreement

c/o Credit Suisse First Boston
LLC

Eleven
Madison Avenue

New York, New York 10010-3629

Ladies and Gentlemen:

 

Jostens IH Corp., a Delaware corporation
(the “Company”), proposes to issue and sell to the Purchasers (as defined
herein) upon the terms set forth in the Purchase Agreement (as defined herein)
an aggregate of $500,000,000 principal amount of its 7 5/8% Senior Subordinated Notes due 2012,  which are
guaranteed by the Guarantors identified in the Indenture (as defined
herein).  As an inducement to the
Purchasers to enter into the Purchase Agreement and in satisfaction of a
condition to the obligations of the Purchasers thereunder, the Company  and the Guarantors agree with the Purchasers for the
benefit of holders (as defined herein) from time to time of the Registrable
Securities (as defined herein) as follows:

 

1.             Certain Definitions.  For purposes of this Exchange and
Registration Rights Agreement, the following terms shall have the following
respective meanings:

 

“Affiliated
Market Maker” shall mean a
broker-dealer or one of its affiliates who is deemed to be an affiliate of the
Company and intends to make a market in the Exchange Securities.

 

“Base
Interest” shall mean the interest
that would otherwise accrue on the Securities under the terms thereof and the
Indenture, without giving effect to the provisions of this Agreement.

 

The
term “broker-dealer” shall mean any broker or
dealer registered with the Commission under the Exchange Act.

 

“Closing
Date” shall mean the date on
which the Securities are initially issued.

 

“Commission”
shall mean the United States Securities and Exchange Commission, or any other
federal agency at the time administering the Exchange Act or the Securities
Act, whichever is the relevant statute for the particular purpose.

 

“Effective
Time,” in the case of
(i) an Exchange Registration, shall mean the time and date as of which the
Commis­sion declares the Exchange Offer Registration Statement

 

 

effective
or as of which the Exchange Offer Registration Statement otherwise becomes
effective and (ii) a Shelf Registration, shall mean the time and date as
of which the Commission declares the Shelf Registration Statement effective or
as of which the Shelf Registration Statement otherwise becomes effective.

 

“Electing Holder” shall mean any holder of Registrable
Securities that has returned a completed and signed Notice and Questionnaire to
the Company in accordance with Section 3(d)(ii) or 3(d)(iii) hereof.

 

“Exchange
Act” shall mean the Securities
Exchange Act of 1934, or any successor thereto, as the same shall be amended
from time to time.

 

“Exchange
Offer” shall have the meaning
assigned thereto in Section 2(a) hereof.

 

“Exchange
Offer Registration Statement”
shall have the meaning assigned thereto in Section 2(a) hereof.

 

“Exchange
Registration” shall have the meaning
assigned thereto in Section 3(c) hereof.

 

“Exchange
Securities” shall have the meaning
assigned thereto in Section 2(a) hereof.

 

“Guarantors”
shall have the meaning assigned thereto in the Indenture.

 

The
term “holder” shall mean each of the
Purchasers and other persons who acquire Registrable Securities from time to
time (including any successors or assigns), in each case for so long as such
person owns any Registrable Securities.

 

“Indenture”
shall mean the Indenture, dated as of October 4, 2004, among the Company, the Guarantors and The Bank of New
York, as Trustee, as the same shall be amended from time to time.

 

“Notice and Questionnaire” means a Notice of Registration
Statement and Selling Securityholder Questionnaire substantially in the form of
Exhibit A hereto.

 

The
term “person” shall mean a corporation,
association, partnership, organization, busi­ness, individual, government or
political subdivision thereof or governmental agency.

 

“Purchase
Agreement” shall mean,
collectively, the Purchase Agreement, dated as of September 23, 2004 among the Purchasers, certain of the Guarantors and the
Company relating to the Securities, and the counterparts to such agreement executed
by certain of the Guarantors.

 

“Purchasers”
shall mean the Purchasers named in Schedule I to the Purchase Agreement.

 

“Registrable
Securities” shall mean the
Securities; provided, however, that a Security shall
cease to be a Registrable Security when (i) in the circumstances
contemplated by Section 2(a) hereof, the Security has been exchanged for
an Exchange Security in an Exchange Offer as contemplated in Section 2(a)
hereof (provided
that any Exchange Security that, pursuant to the last two sentences of Section
2(a), is included in a prospectus for use in connection with resales by
broker-dealers shall be deemed to be a Registrable Security with respect to
Sections 5, 6 and 9 until resale of such Registrable Security has been effected
within the 210-day period referred to in Section 2(a)) (ii) in the
circumstances contemplated by Section 2(b) hereof, a Shelf Registration
Statement registering such

 

2

 

Security
under the Securities Act has been declared or becomes effective and such
Security has been sold or otherwise transferred by the holder thereof pursuant
to and in a manner contemplated by such effective Shelf Regis­tra­tion
Statement; (iii) such Security is sold pursuant to Rule 144 under circumstances
in which any legend borne by such Security relating to restrictions on
transferability thereof, under the Securities Act or otherwise, is removed by
the Company or pursuant to the Indenture; (iv) such Security is eligible to be
sold pursuant to paragraph (k) of Rule 144; or (v) such Security
shall cease to be outstanding.

 

“Registration
Default” shall have the meaning
assigned thereto in Section 2(e) hereof.

 

“Registration
Expenses” shall have the meaning
assigned thereto in Section 4 hereof.

 

“Resale
Period” shall have the meaning
assigned thereto in Section 2(a) hereof.

 

“Restricted
Holder” shall mean (i) a
holder that is an affiliate of the Company within the meaning of Rule 405,
(ii) a holder who acquires Exchange Securities outside the ordinary course
of such holder’s business, (iii) a holder who has arrangements or
understandings with any person to participate in the Exchange Offer for the
purpose of distributing Exchange Securities and (iv) a holder that is a
broker-dealer, but only with respect to Exchange Securities received by such
broker-dealer pursuant to an Exchange Offer in exchange for Registrable
Securities acquired by the broker-dealer directly from the Company.

 

“Rule
144,” “Rule 405” and “Rule 415”
shall mean, in each case, such rule promulgated under the Securities Act (or
any successor provision), as the same shall be amended from time to time.

 

“Securities”
shall mean, collectively, the 7 5/8%
Senior Subordinated Notes due 2012 of the Company to be issued and sold
to the Purchasers, and securities issued in exchange therefor or in lieu
thereof pursuant to the Indenture.

 

“Securities
Act” shall mean the
Securities Act of 1933, or any successor thereto, as the same shall be amended
from time to time.

 

“Shelf
Registration” shall have the meaning
assigned thereto in Section 2(b) hereof.

 

“Shelf
Registration Statement” shall have the meaning
assigned thereto in Section 2(b) hereof.

 

“Special
Interest” shall have the meaning
assigned thereto in Section 2(e) hereof.

 

“Trust
Indenture Act” shall mean the Trust
Indenture Act of 1939, or any successor thereto, and the rules, regulations and
forms promulgated thereunder, all as the same shall be amended from time to
time.

 

Unless
the context otherwise requires, any reference herein to a “Section” or “clause”
refers to a Section or clause, as the case may be, of this Exchange and
Registration Rights Agreement, and the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Exchange and Registration
Rights Agreement as a whole and not to any particular Section or other
subdivision.

 

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2.             Registration Under the
Securities Act.

 

(a)           Except as set forth in Section 2(b)
below, the Company and the Guarantors agree to file under the Securities Act,
no later than 120 days after the Closing Date, a registration statement
relating to an offer to exchange (such registration statement, the “Exchange
Offer Registration Statement”, and such offer, the “Exchange Offer”) any and
all of the Securities for a like aggregate principal amount of debt securities
issued by the Company and guaranteed by the Guarantors, which debt securities and guarantees are substantially identical
to the Securities  and the related Guarantees,
respectively  (and are entitled to the benefits
of a trust inden­ture which is substantially identical to the Indenture or is
the Indenture and which has been quali­fied under the Trust Indenture Act),
except that they have been registered pursuant to an effective registration
statement under the Securities Act and do not contain provisions for the
Special Interest contemplated in Section 2(e) below (such new debt securities
hereinafter called “Exchange Securities”). 
The Company and the Guarantors agree to use all commercially reasonable
efforts to cause the Exchange Offer Registration Statement to become effective
under the Securities Act no later than 210 days after the Closing Date. The
Exchange Offer will be registered under the Securities Act on the appropriate
form and will comply with all applicable tender offer rules and regula­tions
under the Exchange Act. The Company and the Guarantors further agree to use all
commercially reasonable efforts to consummate the Exchange Offer no later than
30 business days after such registration statement has become effective, hold
the Exchange Offer open for at least 30 days, or longer, if required by the
federal securities laws, and  exchange
Exchange Securities for all Registrable Securities that have been properly
tendered and not withdrawn on or prior to the expiration of the Exchange Offer.
The Exchange Offer will be deemed to have been “completed” only if the debt
securities  and related guarantees received by holders other than Restricted
Holders in the Exchange Offer for Registrable Securities are, upon receipt,
transferable by each such holder without restriction under the Securities Act
and the Exchange Act and without material restrictions under the blue sky or
securities laws of a substan­tial majority of the States of the United States
of America. The Exchange Offer shall be deemed to have been completed upon the
earlier to occur of (i) the Company having exchanged the Exchange Securities
for all outstanding Registrable Securities pursuant to the Exchange Offer and
(ii) the Company having exchanged, pursuant to the Exchange Offer, Exchange
Securities for all Registrable Securities that have been properly tendered and
not withdrawn before the expiration of the Exchange Offer, which shall be on a
date that is at least 30 days following the com­mence­ment of the Exchange
Offer. The Company agrees (x) to
include in the Exchange Offer Registration Statement a prospectus for use in
any resales by any holder of Exchange Securities that is a broker-dealer
and (y) to keep such Exchange Offer Registration Statement effective for a
period (the “Resale Period”) beginning when Exchange Securities are first
issued in the Exchange Offer and ending upon the earlier of the expiration of
the 180th day after the Exchange Offer has been completed or such time as such
broker-dealers no longer own any Registrable Securities.  With respect to such Exchange Offer
Registration Statement, such holders shall have the benefit of the rights of
indemnification and contribution set forth in Sections 6(a), (c), (d) and
(e) hereof.

 

(b)
          If (i) the Company and the
Guarantors are not (A) required to file the Exchange Offer Registration
Statement or (B) permitted to consummate the Exchange Offer because the
Exchange Offer is not permitted by applicable law or Commission policy; or (ii)
any holder of Registrable Securities notifies the Company prior to the 20th
business day following consummation of the Exchange Offer that (A) such holder
was prohibited by law or Commission policy from participating in the Exchange Offer,
(B) such holder may not resell the Exchange Securities acquired by it in the
Exchange Offer to the public without delivering

 

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a
prospectus and the prospectus contained in the Exchange Offer Registration
Statement is not appropriate or available for such resales by such holder or
(C) such holder is a broker-dealer and holds Registrable Securities acquired
directly from the Company or an affiliate of the Company or is an Affiliated
Market Maker, then the Company and the Guarantors shall, in lieu of (or, in the
case of clause (ii), in addition to) conducting the Exchange Offer contemplated
by Section 2(a), use all commercially reasonable efforts to file under the
Securities Act no later than the later of 30 days after the time such
obligation to file arises (but no earlier than 120 days after the Closing
Date), a “shelf” registration statement providing for the registration of, and
the sale on a con­tinuous or delayed basis by the holders of, all of the Registrable
Securities, pursuant to Rule 415 or any similar rule that may be adopted by the
Commission (such filing, the “Shelf Registration” and such registration
statement, the “Shelf Registration Statement”). The Company and the Guarantors
agree to use all commercially reasonable efforts (x) to cause the Shelf
Registration Statement to be declared effective by the Commission on or prior
to 90 days after the filing of such Shelf Registration Statement (but no
earlier than 210 days following the Closing Date) and to keep such Shelf
Registration Statement continuously effective until the later of (A) the
date on which no broker-dealer making a market in the Exchange Securities is
deemed to be an affiliate of the Company and (B) the earlier of the second
anniversary of the Effective Time or such earlier time as there are no longer
any Registrable Securities outstanding, provided, however, that no holder shall be entitled to be named as a
selling securityholder in the Shelf Registration Statement or to use the prospectus
forming a part thereof for resales of Registrable Securities unless such holder
is an Electing Holder or an Affiliated Market Maker, and (y) after the
Effective Time of the Shelf Registration Statement, promptly upon the request
of any Affiliated Market Maker or holder of Registrable Securities that is not
then an Electing Holder, to take any action reasonably necessary to enable such
holder to use the prospectus forming a part thereof for resales of Registrable
Securities, including, without limitation, any action necessary to identify
such Affiliated Market Maker or holder as a selling securityholder in the Shelf
Registration Statement, provided, however,
that nothing in this Clause (y) shall (A) relieve any such holder of the
obligation to return a completed and signed Notice and Questionnaire to the
Company in accordance with Section 3(d)(iii) hereof or (B) require the Company
or the Guarantors to file more than one post-effective amendment to the Shelf
Registration Statement in any 45-day period. The Company and the Guarantors
further agree to supplement or make amendments to the Shelf Registration
Statement, as and when required by the rules, regulations or instructions
applicable to the registration form used by the Company and the Guarantors for
such Shelf Registration Statement or by the Securities Act or rules and
regulations thereunder for shelf registration, and the Company agrees to
furnish to each Electing Holder copies of any such supplement or amendment
prior to its being used or promptly following its filing with the Commission.
Notwithstanding the foregoing, no broker-dealer that is an affiliate of the
Company shall be required to give notice within the time period specified in
the first sentence of this Section 2(b) in order to maintain its registration
rights pursuant to this Section 2.

 

(c)           On the date of consummation of the
Exchange Offer, the Company shall provide notice to Credit Suisse First Boston
LLC, as representative of the several Purchasers, which notice shall state
(i) that the Exchange Offer has been consummated and the date of
consummation; (ii)  whether any holders of Registrable Securities did
not participate in the Exchange Offer; and (iii)  if any holders of
Registrable Securities did not participate in the Exchange Offer, to the extent
available to the Company, the name, address and telephone number of each such
holder who did not participate and the principal amount of Securities held by
each such holder.  Following the delivery
of such notice, Credit Suisse First Boston LLC shall be entitled, but in no way
obligated, to contact each holder of Registrable

 

5

 

Securities
who did not participate in the Exchange Offer and, among other things, provide
such holder with the information specified in clause (i) above.

 

(d)           Notwithstanding the foregoing, the
Company may issue a notice that the Shelf Registration Statement is no longer
effective or the prospectus included therein is no longer usable for offers and
sales of Registrable Securities covered by the Shelf Registration Statement for
a period not to exceed 60 days in the aggregate in any twelve-month period (a
“suspension period”) if (i) such action is required by applicable law; or (ii)
due to the existence of material non-public information, disclosure of such
material non-public information would be required to make the statements
contained in the applicable registration statement not misleading (including
for the avoidance of doubt, the pendancy of an acquisition, disposition or
public or private offering by the Company), and the Company has a bona fide
business purpose for preserving as confidential such material non-public
information (other than avoidance of its obligations hereunder); provided that (x) the Company promptly thereafter complies
with the requirements of Section 3(d) hereof and (y) the required period of
effectiveness for the Shelf Registration Period set forth in Section 2(b)
hereof shall be extended by the number of days during which such Shelf Registration
Statement was not effective or usable pursuant to the foregoing provisions.

 

(e)           In the event that (i) the Company and
the Guarantors have not filed the Exchange Offer Registration Statement or
Shelf Registration Statement on or before the date on which such registration
statement is required to be filed pursuant to Section 2(a) or 2(b),
respectively, or (ii) such Exchange Offer Registration Statement or Shelf
Registration Statement has not become effective or been declared effective by
the Commission on or before the date on which such registration statement is
required to become or be declared effective pursuant to Section 2(a) or 2(b),
respectively, or (iii) the Exchange Offer has not been consummated within 60
business days after the initial effective date of the Exchange Offer
Registration Statement relating to the Exchange Offer (if the Exchange Offer is
then required to be made) or (iv) any Exchange Offer Registration
Statement or Shelf Registration Statement required by Section 2(a) or 2(b)
hereof is filed and declared effective but shall thereafter either be withdrawn
by the Company or shall become subject to an effective stop order issued
pursuant to Section 8(d) of the Securities Act suspending the effectiveness of
such registration statement (except as specifically permitted herein) without
being succeeded immediately by an additional registration statement filed and
declared effective (each such event referred to in clauses (i) through (iv), a
“Registration Default” and each period during which a Registration Default has
occurred and is continuing, a “Registration Default Period”), then, as
liquidated damages for such Registration Default, subject to the provisions of
Section 9(b), special interest (“Special Interest”), in addition to the Base Interest,
shall accrue in an amount equal to $.05
per week per $1,000 principal amount of Registrable Securities held by such holder for the first
90 days of the Registration Default Period. The amount of Special Interest
shall increase by an additional $.05 per week per $1,000 principal amount of Registrable Securities with respect to each subsequent
90-day period until all Registration Defaults have been cured, up to a maximum
amount of Special Interest for all Registration Defaults of $.20 per week per
$1,000 principal amount of Registrable Securities.

 

(f)
           The Company shall take, and
shall cause the Guarantors to take, all
actions reasonably necessary or advisable to be taken by it to ensure that the
transactions contemplated herein are effected as so contemplated, including all
actions reasonably necessary or advisable to register the Guarantees under the
registration statement contemplated in Section 2(a) or 2(b) hereof, as
applicable.

 

6

 

(g)
          Any reference herein to a
registration statement as of any time shall be deemed to include any document
incorporated, or deemed to be incorporated, therein by reference as of such
time and any reference herein to any post-effective amendment to a registration
statement as of any time shall be deemed to include any document incorporated,
or deemed to be incorporated, therein by reference as of such time.

 

3.             Registration Procedures.

 

If the Company
and the Guarantors file a registration statement pursuant to Section 2(a)
or Section 2(b), the following provisions shall apply:

 

(a)           At or before the Effective Time of
the Exchange Registration or the Shelf Registration, as the case may be, the
Company shall qualify the Indenture under the Trust Indenture Act of 1939.

 

(b)           In the event that such qualification
would require the appointment of a new trustee under the Indenture, the Company
shall appoint a new trustee thereunder pursuant to the applicable provi­sions
of the Indenture.

 

(c)           In connection with the Company’s and
the Guarantor’s obligations with respect to the registration of Exchange
Securities as contemplated by Section 2(a) (the “Exchange Registration”), if
appli­cable, the Company and the Guarantors shall, as soon as practicable (or
as otherwise specified):

 

(i)            prepare and file with the Commission
no later than 120 days after the Closing Date, an Exchange Offer Registration
Statement on any form which may be utilized by the Company and which shall
permit the Exchange Offer and resales of Exchange Securities by broker-dealers
during the Resale Period to be effected as contemplated by Section 2(a), and
use all commercially reasonable efforts to have the Exchange Offer Registration
Statement declared effective no later than 210 days after the Closing Date;

 

(ii)           prepare and file with the Commission
such amendments and supplements to such Exchange Offer Registration Statement
and the prospectus included therein as may be necessary to effect and main­tain
the effectiveness of such Exchange Offer Registration Statement for the periods
and purposes contemplated in Section 2(a) hereof and as may be required by
the applicable rules and regulations of the Commission and the instructions
applicable to the form of such Exchange Offer Registration Statement, and
promptly provide each broker-dealer holding Exchange Securities with such
number of copies of the prospectus included therein (as then amended or
supplemented), in conformity in all material respects with the requirements of
the Securities Act and the Trust Indenture Act and the rules and regulations of
the Commission thereunder, as such broker-dealer reasonably may request prior
to the expiration of the Resale Period, for use in connection with resales of
Exchange Securities;

 

(iii)          promptly notify each broker-dealer
that has requested or received copies of the prospectus included in such
registration statement, and confirm such advice in writing, (A) when such
Exchange Offer Registration Statement or the prospec­tus included therein or
any prospectus amendment or supplement or post-effective amend­ment has
been filed, and, with respect to such Exchange Offer Registration Statement or
any post-effective amendment, when the same has become effective, (B) of
any comments by the Commission and by the blue sky or securities

 

7

 

commissioner
or regulator of any state with respect thereto on,  or any request by the Commission for
amendments or supplements to or additional information relating to, such
Exchange Offer Registration Statement or prospectus, (C) of the issuance by the
Commission of any stop order suspending the effective­ness of such Exchange
Offer Registration Statement or the initiation or threatening of any
proceedings for that purpose, (D) if at any time the repre­sen­tations and
warranties of the Company contemplated by Section 5 cease to be true and
correct in all material respects, (E) of the receipt by the Company of any
notifi­cation with respect to the suspension of the qualification of the
Exchange Securities for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, or (F) at any time during the
Resale Period when a prospectus is required to be delivered under the
Securities Act, that such Exchange Offer Registration Statement, prospectus,
prospectus amendment or supplement or post-effective amend­ment does not
conform in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder or contains an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading;

 

(iv)          in the event that the Company and the
Guarantors would be required, pursuant to Section 3(c)(iii)(F) above, to notify
any broker-dealers holding Exchange Securities, without delay prepare and
furnish to each such holder a reasonable number of copies of a prospectus
supplemented or amended so that, as thereafter delivered to purchasers of such
Exchange Securities during the Resale Period, such prospectus shall conform in
all material respects to the applicable requirements of the Securities Act and
the Trust Indenture Act and the rules and regulations of the Commission
thereunder and shall not contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading;

 

(v)           use all commercially reasonable
efforts to obtain the withdrawal of any order suspending the effec­tive­ness of
such Exchange Offer Registration Statement or any post-effective
amendment thereto at the earliest practicable date;

 

(vi)          use all commercially reasonable
efforts to (A) register or qualify the Exchange Securities under the securities
laws or blue sky laws of such jurisdictions as are contemplated by Section 2(a)
no later than the commencement of the Exchange Offer, (B) keep such
registrations or qualifications in effect and comply with such laws so as to
permit the continuance of offers, sales and dealings therein in such
jurisdictions until the expiration of the Resale Period and (C) take any and
all other actions as may be reason­ably necessary or advisable to enable each
broker-dealer holding Exchange Securities to consummate the disposition thereof
in such jurisdictions; provided, however,
that neither the Company nor any of the Guarantors shall be required for any
such purpose to (1) qualify as a foreign corporation in any jurisdiction
wherein it would not otherwise be required to qualify but for the requirements
of this Section 3(c)(vi), (2) consent to general service of process in any such
jurisdiction or (3) make any changes to its certificate of incorporation or by-laws
or any agreement between it and its stockholders;

 

(vii)         use all commercially reasonable efforts
to obtain the consent or approval of each governmental agency or authority,
whether federal, state or local, which may be

 

8

 

required
to effect the Exchange Registra­tion, the Exchange Offer and the offering and
sale of Exchange Securities by broker-dealers during the Resale Period;

 

(viii)        provide a CUSIP number for all Exchange
Securities, not later than the applicable Effective Time; and

 

(ix)           comply with all applicable rules and
regulations of the Commission, and make gener­ally available to its
securityholders as soon as practicable but no later than eighteen months after
the effective date of such Exchange Offer Registration Statement, an earning
statement of the Company and its subsidiaries complying with Section 11(a) of
the Securities Act (includ­ing, at the option of the Company, Rule 158
thereunder).

 

(d)           In connection with the Company’s and
the Guarantors’ obligations with respect to the Shelf Registration, if
applicable, the Company and the Guarantors shall:

 

(i)            use all commercially reasonable
efforts to prepare and file with the Commission, within the time periods
specified in Section 2(b), a Shelf Registration Statement on any form which may
be utilized by the Company and which shall register all of the Registrable
Securities for resale by Affiliated Market Makers and holders thereof in
accordance with such method or methods of disposition as may be specified by
such Affiliated Market Makers and such of the holders as, from time to time,
may be Electing Holders and to cause such Shelf Registration Statement to become
effective within the time periods specified in Section 2(b);

 

(ii)           not
less than 30 calendar days prior to the Effective Time of the Shelf
Registration Statement, mail the Notice and Questionnaire to the holders of
Registrable Securities; no holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement as of the Effective Time,
and no holder shall be entitled to use the prospectus forming a part thereof
for resales of Registrable Securities at any time, unless such holder has
returned a completed and signed Notice and Questionnaire to the Company by the
deadline for response set forth therein; provided, however,
holders of Registrable Securities shall have at least 28 calendar days from the
date on which the Notice and Questionnaire is first mailed to such holders to
return a completed and signed Notice and Questionnaire to the Company;

 

(iii)          after the Effective Time of the Shelf
Registration Statement, upon the request of any holder of Registrable
Securities that is not then an Electing Holder, promptly send a Notice and
Questionnaire to such holder; provided that
the Company shall not be required (A) to take any action to name such holder as
a selling securityholder in the Shelf Registration Statement or to enable such
holder to use the prospectus forming a part thereof for resales of Registrable
Securities until such holder has returned a completed and signed Notice and
Questionnaire to the Company and (B) nothing in this clause (iii) shall require
the Company or the Guarantors to file more than one post-effective amendment to
the Shelf Registration Statement in any 45-day period;

 

(iv)          as soon as practicable prepare and
file with the Commission such amendments and supplements to such Shelf
Registration Statement and the prospectus included therein as may be necessary
to effect and main­tain the effectiveness of such Shelf Registration Statement
for the period specified in Section 2(b) hereof and as may be required by
the applicable rules and regulations

 

9

 

of
the Commission and the instructions applicable to the form of such Shelf
Registration Statement, and furnish to the Electing Holders and any Affiliated
Market Makers copies of any such supplement or amendment simultaneously with or
prior to its being used or filed with the Commission;

 

(v)           comply with the provisions of the
Securities Act with respect to the disposition of all of the Registrable
Securities covered by such Shelf Registration Statement in accordance with the
intended methods of disposition by the Electing Holders and any Affiliated
Market Makers provided for in such Shelf Registration Statement;

 

(vi)          provide (A) the Electing Holders,
(B) the Affiliated Market Makers, (C) the underwriters (which term,
for purposes of this Exchange and Registration Rights Agreement, shall include
a person deemed to be an underwriter within the meaning of Section 2(a)(11) of
the Securities Act), if any, thereof, (D) any sales or placement agent
therefor, (E) counsel for any such underwriter or agent and (F) not more than
one counsel for all the Electing Holders the opportunity to review and comment
on such Shelf Registration Statement, each prospectus included therein or filed
with the Commission and each amendment or supplement thereto prior to the
filing thereof with the Commission;

 

(vii)         for a reasonable period prior to the
filing of such Shelf Registration Statement, and throughout the period
specified in Section 2(b), make available at reasonable times at the Company’s principal
place of business or such other reasonable place for inspection by the persons
referred to in Section 3(d)(vi) who shall certify to the Company that they have
a current intention to sell the Registrable Securities pursuant to the Shelf
Registration such financial and other information and books and records of the
Company, and cause the officers, employees, counsel and independent certified
public accountants of the Company to respond to such inquiries, as shall be
reasonably necessary, in the judgment of the respective counsel referred to in
such Section, to conduct a reasonable investigation within the meaning of
Section 11 of the Securities Act; provided, however,
that each such party shall be required to maintain in confi­dence and not to
disclose to any other person any information or records reasonably desig­nated
by the Company as being confidential, until such time as (A) such informa­tion
becomes a matter of public record (whether by virtue of its inclusion in such
registra­tion statement or otherwise), or (B) such person shall be required so
to disclose such informa­tion pursuant to a subpoena or order of any court or
other governmental agency or body having jurisdiction over the matter (subject
to the requirements of such order, and only after such person shall have given
the Company prompt prior written notice of such require­ment), or (C) such
information is required to be set forth in such Shelf Registration Statement or
the prospectus included therein or in an amendment to such Shelf Registration
Statement or an amend­ment or supplement to such prospectus in order that such
Shelf Registration Statement, prospec­tus, amendment or supplement, as the case
may be, complies with applicable requirements of the federal securities laws
and the rules and regulations of the Commission and does not contain an untrue
state­ment of a material fact or omit to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading
in light of the circumstances then exist­ing;

 

(viii)        promptly notify each of the Electing
Holders, any Affiliated Market Makers, any sales or placement agent therefor
and any underwriter thereof (which notification may be made through any
managing underwriter that is a representative of such

 

10

 

underwriter
for such purpose) and confirm such advice in writing, (A) when such Shelf
Registration Statement or the prospec­tus included therein or any prospectus
amendment or supplement or post-effective amend­ment has been filed, and,
with respect to such Shelf Registration Statement or any post-effective
amendment, when the same has become effective, (B) of any comments by the
Commission and by the blue sky or securities commissioner or regulator of any
state with respect thereto, or any request by the Commission for amendments or
supplements to or additional information relating to, such Shelf­ Registration
Statement or prospectus, (C) of the issuance by the Commission of any stop
order suspending the effective­ness of such Shelf Registration Statement or the
initiation or threatening of any proceedings for that purpose, (D) if at any
time the repre­sen­tations and warranties of the Company contemplated by
Section 3(d)(xvii) or Section 5 cease to be true and correct in all material
respects, (E) of the receipt by the Company of any notifi­cation with respect
to the suspension of the qualification of the Registrable Securities for sale
in any jurisdiction or the initiation or threatening of any proceeding for such
purpose, or (F) if at any time when a prospectus is required to be delivered
under the Securities Act, that such Shelf Registration Statement, prospectus,
prospectus amendment or supplement or post-effective amend­ment does not
conform in all material respects to the applicable requirements of the
Securities Act and the Trust Indenture Act and the rules and regulations of the
Commission thereunder or contains an untrue statement of a material fact or
omits to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading;

 

(ix)           use all commercially reasonable
efforts to obtain the withdrawal of any order suspending the effec­tive­ness of
such registration statement or any post-effective amendment thereto at
the earliest practicable date;

 

(x)            if requested by any managing
underwriter or underwriters, any placement or sales agent, any Affiliated
Market Maker or any Electing Holder, promptly incorporate in a prospectus
supple­ment or post-effective amendment such information as is required
by the applicable rules and regula­tions of the Commission and as such managing
underwriter or underwriters, such agent, such Affiliated Market Maker or such
Electing Holder specifies should be included therein relating to the terms of
the sale of such Regis­trable Securities, including information with respect to
the principal amount of Registrable Securities being sold by such Electing
Holder, such Affiliated Market Maker or agent or to any underwriters, the name
and description of such Electing Holder, such Affiliated Market Maker, agent or
underwriter, the offering price of such Regis­trable Securities and any
discount, commission or other compensation payable in respect thereof, the
purchase price being paid therefor by such underwriters and with respect to any
other terms of the offering of the Registrable Securities to be sold by such
Electing Holder or agent or to such underwriters; and make all required filings
of such prospectus supplement or post-effective amendment promptly after
notification of the matters to be incorporated in such prospectus supplement or
post-effective amendment;

 

(xi)           furnish upon request to each Electing
Holder, each Affiliated Market Maker, each placement or sales agent, if any,
therefor, each underwriter, if any, thereof and the respective counsel referred
to in Section 3(d)(vi) such number of conformed copies of such Shelf
Registration Statement, each such amendment and supple­ment thereto (in each
case including all exhibits thereto and documents incorporated by reference
therein) and of the prospectus included in such Shelf Registration Statement
(including each preliminary prospectus and any summary prospectus), in

 

11

 

conformity
in all material respects with the applicable requirements of the Securities Act
and the Trust Indenture Act and the rules and regulations of the Commission
thereunder, and such other documents, as such Electing Holder, Affiliated
Market Maker, agent, if any, and underwriter, if any, may reasonably request in
order to facilitate the offering and disposition of the Registrable Securities
owned by such Electing Holder, market-making by such Affiliated Market Maker,
offered or sold by such agent or underwritten by such underwriter and to permit
such Electing Holder, Affiliated Market Maker, agent and underwriter to satisfy
the prospectus delivery requirements of the Securities Act; and the Company hereby
consents to the use of such prospectus (including such preliminary and summary
prospectus) and any amend­ment or supplement thereto by each such Electing
Holder and by any such agent, Affiliated Market Maker and underwriter, in each
case in the form most recently provided to such person by the Company, in
connection with the offering and sale of the Registrable Securities covered by
the prospectus (including such prelimi­nary and summary prospec­tus) or any
supplement or amendment thereto;

 

(xii)          use all commercially reasonable
efforts to (A) register or qualify the Registrable Securities to be included in
such Shelf Registration Statement under such securities laws or blue sky laws
of such jurisdictions as any Electing Holder, Affiliated Market Maker and each
placement or sales agent, if any, therefor and underwriter, if any, thereof
shall reasonably request, (B) keep such registrations or qualifications in
effect and comply with such laws so as to permit the continuance of offers,
sales and dealings therein in such jurisdictions during the period the Shelf
Registration is required to remain effective under Section 2(b) above and (C)
take any and all other actions as may be reason­ably necessary or advisable to
enable each such Electing Holder, Affiliated Market Maker, agent, if any, and
underwriter, if any, to consummate the disposition in such jurisdictions of
such Registrable Securities; provided, however,
that neither the Company nor any of the Guarantors shall be required for any
such purpose to (1) qualify as a foreign corporation in any jurisdiction
wherein it would not otherwise be required to qualify but for the requirements
of this Section 3(d)(xii), (2) consent to general service of process in any
such jurisdiction or (3) make any changes to its certificate of incorporation
or by-laws or any agreement between it and its stockholders;

 

(xiii)         use all commercially reasonable efforts
to obtain the consent or approval of each governmental agency or authority,
whether federal, state or local, which may be required to effect the Shelf
Registra­tion or the offering or sale in connection therewith or to enable the
selling holder or holders or Affiliated Market Makers to offer, or to
consummate the disposition of, their Registrable Securities;

 

(xiv)        unless any Registrable Securities shall
be in book-entry only form, cooperate with the Electing Holders, the Affiliated
Market Makers and the managing underwriters, if any, to facilitate the timely
preparation and delivery of certificates representing Regis­trable Securities
to be sold, which certificates, if so required by any securities exchange upon
which any Registrable Securities are listed, shall be penned, lithographed or
engraved, or produced by any combination of such methods, on steel engraved
borders, and which certificates shall not bear any restric­tive legends; and,
in the case of an underwritten offering, enable such Registrable Securities to
be in such denominations and registered in such names as the managing under­writers
may request at least two business days prior to any sale of the Registrable
Securities;

 

12

 

(xv)         provide a CUSIP number for all
Registrable Securities, not later than the applicable Effective Time;

 

(xvi)        enter into one or more underwriting
agreements, engagement letters, agency agreements, “best efforts” underwriting
agreements or similar agreements, as appropriate, including customary
provisions relating to indemnification and con­tri­bu­tion, and take such other
actions in connection therewith as any Affiliated Market Maker or Electing
Holders aggregating at least a majority
in aggregate principal amount of the Registrable Securities at the time
outstanding shall request in order to expedite or facilitate the disposition of
such Registrable Securities;

 

(xvii)       whether or not an agreement of the type
referred to in Section 3(d)(xvi) hereof is entered into and whether or not any
portion of the offering contemplated by the Shelf Registration is an
underwritten offering or is made through a placement or sales agent or any
other entity, (A) make such representations and warranties to the Electing
Holders, the Affiliated Market Makers and the placement or sales agent, if any,
therefor and the underwriters, if any, thereof in form, substance and scope as
are customarily made in connection with an offering of debt securities pursuant
to any appropriate agreement applicable to the Shelf Registration; (B) obtain
an opinion of counsel to the Company in customary form and covering such matters,
of the type customarily covered by such an opinion, as the managing
underwriters, if any, or as any Affiliated Market Maker or Electing Holders of
at least a majority in aggre­gate
principal amount of the Registrable Securities at the time outstanding may
reasonably request, addressed to such Electing Holder or Electing Holders, such
Affiliated Market Maker or Affiliated Market Makers and the placement or sales
agent, if any, therefor and the under­writers, if any, thereof and dated the
effective date of such Shelf Registration Statement (and if such Shelf
Registration Statement contemplates an underwritten offering of a part or all
of the Regis­trable Securities, dated the date of the closing under the
underwriting agreement relating thereto) (it being agreed that the matters to
be covered by such opinion shall include the due incorporation and good
standing of the Company and its subsidiaries; the qualifi­cation of the Company
and its subsidiaries to transact business as foreign corporations; the due authorization,
execution and delivery of the relevant agreement of the type referred to in
Section 3(d)(xvi) hereof; the due authorization, execution, authentication and
issuance, and the validity and enforceability, of the Securities; the absence
of material legal or govern­mental proceedings involving the Company; the
absence of a breach by the Company or any of its subsidiaries of, or a default
under, material agreements binding upon the Company or any subsidiary of the
Company; the absence of governmental approvals required to be obtained in
connection with the Shelf Registration, the offering and sale of the Regis­trable
Securities, this Exchange and Registration Rights Agreement or any agreement of
the type referred to in Section 3(d)(xvi) hereof, except such approvals as may
be required under state securities or blue sky laws; the material compli­ance
as to form of such Shelf Registration Statement and any documents incorporated
by refer­ence therein and of the Indenture with the requirements of the Securities
Act and the Trust Indenture Act and the rules and regulations of the Commission
thereunder, respectively; and, as of the date of the opinion and of the Shelf
Registration­ Statement or most recent post-effective amendment thereto,
as the case may be, the absence from such Shelf Registration Statement and the
prospectus included therein, as then amended or supple­mented, and from the
documents incorporated by reference therein (in each case other than the
financial statements and other financial information contained therein) of an
untrue statement of a material fact or the omission to state therein a

 

13

 

material
fact necessary to make the statements therein not misleading (in the case of
such documents, in the light of the circum­stances under which they were
made)); (C) obtain a “cold comfort” letter or letters from the independent
certified public accountants of the Company and its subsidiaries addressed to
the selling Electing Holders, the Affiliated Market Makers, the place­ment or
sales agent, if any, therefor or the underwriters, if any, thereof, dated (i)
the effec­tive date of such Shelf Registration Statement and (ii) the effective
date of any prospectus supple­ment to the prospectus included in such Shelf
Registration Statement or post-effective amend­ment to such Shelf
Registration Statement which includes unaudited or audited financial state­ments
as of a date or for a period subsequent to that of the latest such statements
included in such prospectus (and, if such Shelf Registration Statement
contemplates an underwritten offering pursuant to any prospectus supplement to
the prospectus included in such Shelf Registration Statement or post-effective
amendment to such Shelf Registration Statement which includes unaudited or
audited finan­cial statements as of a date or for a period subsequent to that
of the latest such state­ments included in such prospectus, dated the date of
the closing under the underwriting agree­ment relating thereto), such letter or
letters to be in customary form and covering such matters of the type
customarily covered by letters of such type; (D) deliver such documents and
certificates, including officers’ certificates, as may be reasonably requested
by any Affiliated Market Makers or Electing Holders of at least a majority in aggregate principal
amount of the Registrable Securities at the time outstanding or the placement
or sales agent, if any, therefor and the managing underwriters, if any, thereof
to evidence the accuracy of the representations and warranties made pursuant to
clause (A) above or those contained in Section 5(a) hereof and the compliance
with or satis­faction of any agreements or conditions contained in the
underwriting agreement or other agree­ment entered into by the Company or the
Guarantors; and (E) undertake such obligations relating to expense
reimbursement, indemnifica­tion and contribution as are provided in Section 6
hereof;

 

(xviii)      notify in writing each Affiliated Market
Maker and holder of Registrable Securities of any proposal by the Company to
amend or waive any provision of this Exchange and Registration Rights Agreement
pursu­ant to Section 9(h) hereof and of any amendment or waiver effected
pursuant thereto, each of which notices shall contain the text of the amendment
or waiver proposed or effected, as the case may be;

 

(xix)         in the event that any broker-dealer
registered under the Exchange Act shall underwrite any Registrable Securities
or participate as a member of an underwriting syndicate or selling group or
“assist in the distribution” (within the meaning of the Conduct Rules (the
“Conduct Rules) of the National Association of Securities Dealers, Inc.
(“NASD”) or any successor thereto, as amended from time to time) thereof,
whether as a holder of such Registrable Securities or as an underwriter, a
placement or sales agent or a broker or dealer in respect thereof, or
otherwise, assist such broker-dealer in comply­ing with the requirements
of such Conduct Rules, including by (A) if such Conduct Rules shall so require,
engaging a “qualified independent underwriter” (as defined in such Conduct
Rules) to participate in the prepara­tion of the Shelf Registration Statement
relating to such Registrable Securities, to exercise usual standards of due
diligence in respect thereto and, if any portion of the offering contem­plated
by such Shelf Registration Statement is an underwritten offering or is made
through a place­ment or sales agent, to recommend the yield of such Registrable
Securities, (B) indemnifying any such qualified

 

14

 

independent
underwriter to the extent of the indemnification of underwriters provided in
Section 6 hereof (or to such other customary extent as may be requested by such
underwriter), and (C) providing such information to such broker-dealer as
may be required in order for such broker-dealer to comply with the
requirements of the Conduct Rules; and

 

(xx)          comply with all applicable rules and
regulations of the Commission, and make gener­ally available to its
securityholders as soon as practicable but in any event not later than eighteen
months after the effective date of such Shelf Registration Statement, an
earning statement of the Company and its subsidiaries complying with Section
11(a) of the Securities Act (includ­ing, at the option of the Company, Rule 158
thereunder).

 

(e)           In the event that the Company would
be required, pursuant to Section 3(d)(viii)(F) above, to notify the Electing
Holders, the Affiliated Market Makers, the placement or sales agent, if any,
therefor and the managing underwriters, if any, thereof, the Company shall
without delay prepare and furnish to each of the Electing Holders, to each of
the Affiliated Market Makers, to each placement or sales agent, if any, and to
each such under­writer, if any, a reasonable number of copies of a prospectus
supplemented or amended so that, as thereafter delivered to purchasers of
Registrable Securities, such prospectus shall conform in all material respects
to the applicable requirements of the Securities Act and the Trust Indenture
Act and the rules and regulations of the Commission thereunder and shall not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading. Each
Electing Holder and Affiliated Market Maker agrees that upon receipt of any
notice from the Company pursuant to Section 3(d)(viii)(F) hereof, such
Electing Holder and Affiliated Market Maker shall forthwith discontinue the
disposition of Registrable Securities pursuant to the Shelf Registration
Statement applicable to such Registrable Securities until such Electing Holder
shall have received copies of such amended or supplemented prospectus, and if
so directed by the Company, such Electing Holder and Affiliated Market Maker
shall deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies, then in such Electing Holder’s and Affiliated Market
Maker’s respective possession of the prospectus covering such Registra­ble
Securities at the time of receipt of such notice.

 

(f)            In the event of a Shelf
Registration, in addition to the information required to be provided by each
Electing Holder in its Notice Questionnaire, the Company may require such
Electing Holder to furnish to the Company such additional information regarding
such Electing Holder and such Electing Holder’s intended method of distribution
of Registrable Securities as may be required in order to comply with the
Securities Act. Each such Electing Holder agrees to notify the Company as
promptly as practicable of any inaccuracy or change in information previously
furnished by such Electing Holder to the Company or of the occurrence of any
event in either case as a result of which any prospectus relating to such Shelf
Registration contains or would contain an untrue statement of a material fact
regarding such Electing Holder or such Electing Holder’s intended method of
disposition of such Regis­trable Securities or omits or would omit to state any
material fact regarding such Electing Holder or such Electing Holder’s intended
method of disposition of such Registrable Securities required to be stated
therein or necessary to

 

15

 

make
the statements therein, in light of the circumstances under which they were
made, not misleading, and promptly to furnish to the Company any additional
information required to correct and update any previously furnished information
or required so that such prospectus shall not contain, with respect to such
Electing Holder or the disposition of such Registrable Securities, an untrue
state­ment of a material fact or omit to state a material fact required to be
stated therein or neces­sary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

(g)           Until the expiration of two years
after the Closing Date, the Company will not, and will not permit any of its
“affiliates” (as defined in Rule 144) to, resell any of the Securities
that have been reacquired by any of them except pursuant to an effective
registration statement under the Securities Act.

 

4.             Registration Expenses.

 

The Company
agrees to bear and to pay or cause to be paid promptly all expenses incident to
the Company’s performance of or compliance with this Exchange and Registration
Rights Agreement, including (a) all Commission and any NASD registra­tion,
filing and review fees and expenses including reasonable fees and disbursements
of counsel for the placement or sales agent or underwriters in connection with
such registration, filing and review, (b) all fees and expenses in connection
with the quali­fi­cation of the Securities for offering and sale under the
State securities and blue sky laws referred to in Sec­tion 3(d)(xii) hereof and
determination of their eligibility for investment under the laws of such
jurisdictions as any managing underwriters or the Electing Holders may designate,
including any  reasonable fees and
disbursements of counsel for the Electing Holders or underwriters in connection
with such qualification and determination, (c) all expenses relating to the
prepara­tion, printing, production, distribution and reproduction (whether for
exchanges, sales, market-making or otherwise) of each registration state­ment
required to be filed hereunder, each prospectus included therein or prepared
for distri­bu­tion pursuant hereto, each amendment or supplement to the foregoing,
the expenses of preparing the Securities for delivery and the expenses of
printing or reproducing any underwriting agreements, agreements among
underwriters, selling agreements and blue sky or legal investment memoranda and
all other documents in connection with the offering, sale or delivery of
Securities to be disposed of (including certificates representing the
Securities), (d) messenger, telephone and delivery expenses relating to the
offering, sale or delivery of Securities and the preparation of documents
referred in clause (c) above, (e) fees and expenses of the Trustee under the
Indenture, any agent of the Trustee and any counsel for the Trustee and of any
collateral agent or custodian, (f) internal expenses (including all salaries
and expenses of the Company’s officers and employees performing legal or
account­ing duties), (g) fees, disbursements and expenses of counsel and
independent certified public accountants of the Company and its subsidiaries
(including the expenses of any opinions or “cold comfort” letters required by
or incident to such performance and compliance), (h) fees, disbursements and
expenses of any “qualified independent underwriter” engaged pursuant to Section
3(d)(xix) hereof, (i) reasonable fees, disbursements and expenses of one
counsel for the Electing Holders retained in connection with a Shelf
Registration, as selected by the Electing Holders of at least a majority in
aggregate principal amount of the Registrable Securities held by Electing
Holders (which counsel shall be reasonably satisfactory to the Company), (j)
any fees charged by securities rating services for rating the Securities, and
(k) fees, expenses and disbursements of any other persons, including special
experts, retained by the Company in connection with such registration
(collectively, the “Registration Expenses”). To the extent that any
Registration Expenses are incurred, assumed or paid by any holder of
Registrable Securities or any placement or sales agent therefor or underwriter
thereof, the Company shall reimburse such person for the full amount of the
Registration Expenses so incurred, assumed or paid promptly after receipt of a
request therefor. Notwithstanding the foregoing, the holders of the Registrable
Securities being registered shall pay all agency fees and commissions and under­writing
discounts and commissions attributable to the sale of such Registrable
Securities and the fees and disbursements of any counsel or other advisors or
experts retained by such holders (severally or jointly), other than the counsel
and experts specifically referred to above.

 

16

 

5.             Representations and
Warranties.

 

Each of the
Company and the Guarantors, jointly and severally, represents and warrants to,
and agree with, each Purchaser and each of the holders from time to time of
Registrable Securities that:

 

(a)           Each registration statement covering
Registrable Securities and each prospectus (includ­ing any preliminary or
summary prospectus) contained therein or furnished pursuant to Section 3(d) or
Section 3(c) hereof and any further amendments or supplements to any such
registration state­ment or prospectus, when it becomes effective or is filed
with the Commission, as the case may be, and, in the case of an underwritten offering
of Registrable Securities, at the time of the closing under the underwriting
agreement relating thereto, will conform in all material respects to the
requirements of the Securities Act and the Trust Indenture Act and the rules
and regulations of the Commission thereunder and will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; and
at all times subsequent to the Effective Time when a prospectus would be
required to be delivered under the Securities Act, other than (A) from (i) such
time as a condition or event of the type described in Section 3(d)(viii)(F) or
Section 3(c)(iii)(F) hereof is discovered by the Company and notice thereof
is given to holders of Registrable Securities as contemplated by Section
3(d)(viii) and 3(c)(iii) until (ii) such time as the Company furnishes an
amended or supplemented prospectus pursuant to Section 3(e) or Section 3(c)(iv)
hereof and (B) during the pendancy of any suspension period described in
Section 2(d) hereof, each such registration statement, and each prospectus
(including any summary prospectus) con­tained therein or furnished pursu­ant to
Section 3(d) or Section 3(c) hereof, as then amended or supple­mented, will
conform in all material respects to the requirements of the Securities Act and
the Trust Indenture Act and the rules and regulations of the Commission
thereunder and will not contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing; provided, however, that this
representation and warranty shall not apply to any statements or omissions made
in reli­ance upon and in conformity with information furnished in writing to
the Company by a holder of Registrable Securities expressly for use therein.

 

(b)           Any documents incorporated by
reference in any prospectus referred to in Section 5(a) hereof, when they
become or became effective or are or were filed with the Commission, as the
case may be, will conform or conformed in all material respects to the
requirements of the Securities Act or the Exchange Act, as applicable, and none
of such documents will contain or contained an untrue statement of a material
fact or will omit or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not mis­leading; provided, however, that this representation and warranty
shall not apply to any state­ments or omissions made in reliance upon and in
conformity with information furnished in writing to the Company by a holder of
Registrable Securities expressly for use therein.

 

(c)           The compliance by the Company and the
Guarantors with all of the provisions of this Exchange and Regis­tra­tion
Rights Agreement and the consummation of the transactions herein contemplated
will not, except as could not reasonably be expected to have a Material Adverse
Effect (as defined in the Purchase Agreement) 
con­flict with or result in a breach of any of the terms or provisions
of, or constitute a default under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company, the Guarantors
or any of their respective subsidiaries is a party or by which the Company, the
Guarantors or any of their respective subsidiaries is bound or to which any of
the property or

 

17

 

assets
of the Company, the Guarantors or any of their respective subsidiaries is
subject, nor will such action result in any violation of the provisions of the
certificate of incorporation, certificate of formation or certificate of
limited partnership, as amended, or the by-laws or organization
documents, as applicable, of the Company  or any
Guarantor or except as could not reasonably be expected to have a Material
Adverse Effect (as defined in the Purchase Agreement) any statute or any order,
rule or regulation of any court or governmental agency or body having
jurisdiction over the Company, the Guarantors or any of their respective
subsidiaries or any of their properties; and no consent, approval, authori­za­tion,
order, registration or qualifica­tion of or with any such court or governmental
agency or body is required for the consummation by the Company and the
Guarantors of the transactions contemplated by this Exchange and Registration
Rights Agreement, except the registration under the Securities Act of the
Securities, qualification of the Indenture under the Trust Indenture Act and
such consents, approvals, authorizations, registra­tions or qualifications as
may be required under State securities or blue sky laws in connection with the
offering and distribution of the Securities.

 

(d)           This Exchange and Registration Rights
Agreement has been duly authorized, executed and delivered by the Company and
the Guarantors.

 

6.             Indemnification.

 

(a)           Indemnification by the
Company and the Guarantors. The Company and the Guarantors, jointly
and severally, will indemnify
and hold harmless each of the holders of Registrable Securities included in an
Exchange Offer Registration Statement, each of the Electing Holders of
Registrable Securities included in a Shelf Registration Statement and each
person who participates as a placement or sales agent or as an underwriter in
any offering or sale of such Registrable Securities against any losses, claims,
damages or liabilities, joint or several, to which such holder, agent or
underwriter may become subject under the Securities Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an untrue statement or alleged untrue statement
of a material fact contained in any Exchange Offer Registration Statement or
Shelf Registration Statement, as the case may be, under which such Registrable
Securities were registered under the Securities Act, or any preliminary, final
or sum­mary prospectus contained therein or furnished by the Company to any
such holder, Electing Holder, agent or underwriter, or any amendment or
supplement thereto, or arise out of or are based upon the omis­sion or alleged
omission to state therein a material fact required to be stated therein or
neces­sary to make the statements therein not misleading, and will reimburse
such holder, such Electing Holder, such agent and such underwriter for any
legal or other expenses reason­ably incurred by them in connection with
investigating or defending any such action or claim as such expenses are
incurred; provided, however, that neither the Company nor any of the Guarantors
shall be liable to any such person in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
such registration statement, or preliminary, final or summary prospectus, or
amendment or supplement thereto, in reliance upon and in conformity with
written information furnished to the Company by such person expressly for use
therein and provided, further,
that the Company and the Guarantors shall not be liable to any holder, Electing
Holder, agent or underwriter under this subsection (a) with respect to any
Preliminary Offering Circular (as defined in the Purchase Agreement) to the
extent that such loss, claim, damage or liability of such holder, Electing
Holder, agent or underwriter results from the fact that such holder, Electing
Holder, agent or underwriter sold Securities to a person to whom it shall be
established that there was not sent or given, at or prior to the written
confirmation of such sale, a copy of the Offering Circular (as defined in the
Purchase Agreement) as then

 

18

 

amended
or supplemented if the Company has previously furnished copies thereof in
sufficient quantity to such Purchaser and sufficiently in advance of the
Closing Date to allow for distribution by the Closing Date and the loss, claim,
damage or liability of such holder, Electing Holder, agent or underwriter
results from an untrue statement or omission of a material fact contained in or
omitted from the Preliminary Offering Circular which was corrected in the
Offering Circular or in the Offering Circular as then amended or supplemented
and such correction would have cured the defect giving rise to such loss,
claim, damage or liability.

 

(b)           Indemnification by the
Holders and any Agents and Underwriters. The Company may require, as
a condition to including any Registrable Securities in any registration
statement filed pursu­ant to Section 2(b) hereof and to entering into any
underwriting agreement with respect thereto, that the Company shall have
received an undertaking reasonably satisfactory to it from the Electing Holder
of such Registrable Securities and from each underwriter named in any such
underwriting agree­ment, severally and not jointly, to (i) indemnify and hold
harmless the Company, the Guarantors, and
all other holders of Registrable Securities, against any losses, claims,
damages or liabilities to which the Company, the Guarantors or such other holders of Registrable
Securities may become subject, under the Securi­ties Act or otherwise, insofar
as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an untrue statement or alleged untrue statement
of a material fact contained in such registration statement, or any
preliminary, final or summary prospec­tus contained therein or furnished by the
Company to any such Electing Holder, agent or under­writer, or any amendment or
supple­ment thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, in each case to the
extent, but only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in reli­ance upon and in
conformity with written information furnished to the Company by such Electing
Holder or underwriter expressly for use therein, and (ii) reimburse the Company
and the Guarantors for any legal or other
expenses reasonably incurred by the Company in connection with investigating or
defending any such action or claim as such expenses are incurred; provided, however, that no such Electing Holder shall be
required to undertake liability to any person under this Section 6(b) for any
amounts in excess of the dollar amount of the proceeds to be received by such
Electing Holder from the sale of such Electing Holder’s Registrable Securities
pursuant to such registration.

 

(c)           Notices of Claims, Etc.
Promptly after receipt by an indemnified party under subsection (a) or (b)
above of written notice of the commencement of any action, such indemnified
party shall, if a claim in respect thereof is to be made against an
indemnifying party pursuant to the indemnification provisions of or
contemplated by this Section 6, notify such indemnifying party in writing of the
commencement of such action; but the omission so to notify the indemnifying
party shall not relieve it from any liability which it may have to any
indemnified party otherwise than under the indemnification provisions of or
contemplated by Section 6(a) or 6(b) hereof. In case any such action shall be
brought against any indemnified party and it shall notify an indemnifying party
of the commencement thereof, such indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish, jointly with any
other indemnifying party similarly noti­fied, to assume the defense thereof,
with counsel reasonably satisfactory to such indemnified party (who shall not,
except with the consent of the indemnified party, be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, such indemnifying party shall
not be liable to such indemnified party for any legal expenses of other counsel
or any other expenses, in each case

 

19

 

subsequently
incurred by such indemnified party, in connection with the defense thereof
other than reasonable costs of investi­gation. 
No indemnifying party shall, without the written consent of the
indemnified party, effect the settlement or compromise of, or consent to the
entry of any judgment with respect to, any pending or threatened action or
claim in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified party is an actual or potential party
to such action or claim) unless such settlement, compromise or judgment
(i) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (ii) does not include a
statement as to or an admission of fault, culpability or a failure to act by or
on behalf of any indemnified party.

 

(d)           Contribution.
If for any reason the indemnification provisions contemplated by Section 6(a)
or Section 6(b) are unavailable to or insufficient to hold harm­less an
indemnified party in respect of any losses, claims, damages or liabilities (or
actions in respect thereof) referred to therein, then each indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities (or actions in respect
thereof) in such proportion as is appropriate to reflect the relative fault of
the indemni­fy­ing party and the indemnified party in connection with the
statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof), as well as any other relevant
equitable considerations. The relative fault of such indemnifying party and
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by
such indemnifying party or by such indemnified party, and the parties’ rela­tive
intent, knowledge, access to information and opportunity to correct or prevent
such state­ment or omission. The parties hereto agree that it would not be just
and equitable if contributions pursu­ant to this Section 6(d) were determined
by pro rata allocation (even if the holders or any agents or underwriters or
all of them were treated as one entity for such purpose) or by any other method
of allocation which does not take account of the equitable considerations referred
to in this Section 6(d). The amount paid or payable by an indemnified party as
a result of the losses, claims, damages, or liabilities (or actions in respect
thereof) referred to above shall be deemed to include any legal or other fees
or expenses reasonably incurred by such indemnified party in connec­tion with
investigating or defending any such action or claim. Notwithstanding the provi­sions
of this Section 6(d), no holder shall be required to contribute any amount in
excess of the amount by which the dollar amount of the proceeds received by
such holder from the sale of any Regis­trable Securities (after deducting any
fees, discounts and commis­sions applicable thereto) exceeds the amount of any
damages which such holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission, and no
under­writer shall be required to contribute any amount in excess of the amount
by which the total price at which the Registrable Securities underwritten by it
and distributed to the public were offered to the public exceeds the amount of
any damages which such underwriter has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged omission. No
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any person
who was not guilty of such fraudu­lent misrepresentation. The holders’ and any
underwriters’ obligations in this Section 6(d) to contribute shall be several
in proportion to the principal amount of Registrable Securities regis­tered or
under­written, as the case may be, by them and not joint.

 

(e)           The obligations of the Company and
the Guarantors under this Section 6 shall be in addition to any liability which
the Company or the Guarantors may otherwise have and shall

 

20

 

extend,
upon the same terms and conditions, to each officer, director and partner of
each holder, agent and underwriter and each person, if any, who controls any
holder, agent or underwriter within the meaning of the Securities Act; and the
obliga­tions of the holders and any agents or underwriters contemplated by this
Section 6 shall be in addi­tion to any liability which the respective holder,
agent or underwriter may otherwise have and shall extend, upon the same terms
and conditions, to each officer and director of the Company or the Guarantors (including any person who, with his consent,
is named in any registration statement as about to become a director of the
Company or the Guarantor) and to each person, if any, who controls the
Company within the meaning of the Securities Act.

 

(f)            The Company and the Guarantors agree
that the indemnity and contribution provisions of this Section 6 shall
apply to the Affiliated Market Makers to the same extent and on the same
conditions as they apply to holders of the Securities.

 

7.             Underwritten Offerings.

 

(a)           Selection of Underwriters.
If any of the Registrable Securities covered by the Shelf Registra­tion are to
be sold pursuant to an underwritten offering, the managing underwriter or
underwriters thereof shall be designated by Electing Holders holding at least a
majority in aggregate prin­ci­pal amount of the Registrable Securities to be
included in such offering, provided that
such designated managing underwriter or underwriters is or are reasonably
acceptable to the Company.

 

(b)           Participation by Holders.
Each holder of Registrable Securities hereby agrees with each other such holder
that no such holder may participate in any underwritten offering hereunder
unless such holder (i) agrees to sell such holder’s Registrable Securities on
the basis provided in any underwriting arrangements approved by the persons entitled
hereunder to approve such arrange­­ments and (ii) completes and executes all
questionnaires, powers of attorney, indemnities, under­writ­ing agreements and
other documents reasonably required under the terms of such under­writ­ing
arrangements.

 

8.             Rule 144.

 

The Company
covenants to the holders of Registrable Securities that to the extent it shall
be required to do so under the Exchange Act, the Company shall timely file the
reports required to be filed by it under the Exchange Act or the Securities Act
(including the reports under Section 13 and 15(d) of the Exchange Act referred
to in subparagraph (c)(1) of Rule 144 adopted by the Commission under the
Securities Act) and the rules and regulations adopted by the Commission
thereunder, and shall take such further action as any holder of Registrable
Securities may reasonably request, all to the extent required from time to time
to enable such holder to sell Registrable Securities without registration under
the Securities Act within the limita­tions of the exemption provided by Rule
144 under the Securities Act, as such Rule may be amended from time to time, or
any similar or successor rule or regulation hereafter adopted by the Commis­sion.
Upon the request of any holder of Registrable Securities in connection with
that holder’s sale pursuant to Rule 144, the Company shall deliver to such
holder a written statement as to whether it has complied with such
requirements.

 

9.             Miscellaneous.

 

(a)           No Inconsistent
Agreements.  The Company
represents, warrants, covenants and agrees that it has not granted, and shall
not grant, registration rights with respect to Registrable Securities or any
other securities which would be inconsistent with the terms contained in this
Exchange and Registration Rights Agreement.

 

21

 

(b)           Specific Performance.  The parties hereto acknowledge that there
would be no adequate remedy at law if the Company fails to perform any of its
obligations hereunder and that the Purchasers, the Affiliated Market Makers and
the holders from time to time of the Registrable Securities may be irreparably
harmed by any such failure, and accordingly agree that the Purchasers and such
holders, in addition to any other remedy to which they may be entitled at law
or in equity, shall be entitled to compel specific performance of the
obligations of the Company under this Exchange and Registration Rights
Agreement in accordance with the terms and conditions of this Exchange and
Registration Rights Agreement, in any court of the United States or any State
thereof having jurisdiction.

 

(c)           Notices.  All notices, requests, claims, demands,
waivers and other communications hereunder shall be in writing and shall be
deemed to have been duly given when delivered by hand, if delivered personally
or by courier, or three days after being deposited in the mail (registered or
certified mail, postage prepaid, return receipt requested) as follows: If to
the Company, to it at Jostens IH Corp., 5501 American Boulevard West, Minneapolis,
MN 55437 Attention:  General Counsel, and
if to a holder, to the address of such holder set forth in the security
register or other records of the Company, or to such other address as the
Company or any such holder may have furnished to the other in writing in
accordance herewith, except that notices of change of address shall be effec­tive
only upon receipt.

 

(d)           Parties in Interest.  All the terms and provisions of this Exchange
and Registration Rights Agreement shall be binding upon, shall inure to the
benefit of and shall be enforceable by the parties hereto, the Affiliated
Market Makers and the holders from time to time of the Registrable Securities
and the respective succes­sors and assigns of the parties hereto and such
holders. In the event that any transferee of any holder of Regis­trable
Securities shall acquire Registrable Securities, in any manner, whether by
gift, bequest, purchase, operation of law or otherwise, such transferee shall,
without any further writ­ing or action of any kind, be deemed a beneficiary
hereof for all purposes and such Registrable Securi­ties shall be held subject
to all of the terms of this Exchange and Registration Rights Agreement, and by
taking and holding such Registrable Securities such transferee shall be entitled
to receive the bene­fits of, and be conclusively deemed to have agreed to be
bound by all of the applicable terms and provisions of this Exchange and
Registration Rights Agreement. If the Company shall so request, any such
successor, assign or transferee shall agree in writing to acquire and hold the
Registrable Securities subject to all of the applicable terms hereof.

 

(e)           Survival.  The respective indemnities, agreements,
representations, warranties and each other provision set forth in this Exchange
and Registration Rights Agreement or made pursuant hereto shall remain in full
force and effect regardless of any investigation (or statement as to the
results thereof) made by or on behalf of any holder of Registrable Securities,
any Affiliated Market Maker, any director, officer or part­ner of such holder,
any agent or underwriter or any director, officer or partner thereof, or any
controlling person of any of the foregoing, and shall survive delivery of and
payment for the Regis­trable Securities pursuant to the Purchase Agreement and
the transfer and registration of Regis­trable Securities by such holder and the
consummation of an Exchange Offer.

 

(f)            Governing Law.  This Exchange and Registration Rights
Agreement shall be governed by and con­strued in accordance with the laws of
the State of New York.

 

(g)           Headings.  The descriptive headings of the several
Sections and paragraphs of this Exchange and Registration Rights Agreement are
inserted for convenience only, do not constitute a part of this Exchange and
Registration Rights Agreement and shall not affect in any way the meaning or
inter­pre­ta­tion of this Exchange and Registration Rights Agreement.

 

22

 

(h)           Entire Agreement;
Amendments.  This Exchange and
Registration Rights Agreement and the other writ­ings referred to herein
(including the Indenture and the form of Securities) or delivered pursu­ant
hereto which form a part hereof contain the entire understanding of the parties
with respect to its subject matter. This Exchange and Registration Rights
Agreement supersedes all prior agreements and under­standings between the
parties with respect to its subject matter. This Exchange and Regist­rat­ion
Rights Agreement may be amended and the observance of any term of this Exchange
and Regist­rat­ion Rights Agreement may be waived (either generally or in a
particular instance and either retroactively or prospectively) only by a
written instrument duly executed by the Company and the holders of at least a majority in aggregate principal
amount of the Registrable Securities at the time out­stand­ing. Each holder of
any Registrable Securities at the time or thereafter outstanding shall be bound
by any amendment or waiver effected pursuant to this Section 9(h), whether or
not any notice, writing or marking indicating such amendment or waiver appears
on such Registrable Securities or is delivered to such holder.

 

(i)            Inspection.  For so long as this Exchange and Registration
Rights Agreement shall be in effect, this Exchange and Registration Rights
Agreement and a complete list of the names and addresses of all the registered
holders of Registrable Securities shall be made available for inspection and
copying on any business day by any Affiliated Market Maker and holder of
Registrable Securities for proper purposes only (which shall include any
purpose related to the rights of the holders of Registrable Securities under
the Securities, the Indenture and this Agreement) at the offices of the Company
at the address thereof set forth in Section 9(c) above and at the office of the
Trustee under the Indenture.

 

(j)            Counterparts.  This agreement may be executed by the parties
in counterparts, each of which shall be deemed to be an original, but all such
respective counterparts shall together consti­tute one and the same instrument.

 

(k)           Compliance with Form S-3.
The Company agrees for the benefit of any Affiliated Market Makers that for so
long as any of the Registrable Securities remain outstanding, if at any time
sales by the Affiliated Market Makers of the Registrable Securities will
satisfy clauses 1 or 3 of the “Transaction Requirements” specified in
Form S-3 (or any comparable provision of any successor form to
Form S-3), the Company will use its reasonable best efforts to comply
with, and maintain its compliance with, the “Registrant Requirements” of
Form S-3 (or any comparable provision of any successor form to
Form S-3).

 

23

 

If the foregoing is in accordance with your understanding,
please sign and return to us seven
counterparts hereof, and upon the acceptance hereof by you, on behalf of each
of the Purchasers, this letter and such acceptance hereof shall constitute a
binding agreement between each of the Purchasers and the Company.  It is
understood that your acceptance of this letter on behalf of each of the
Purchasers is pursuant to the authority set forth in a form of Agreement among
Purchasers, the form of which shall be submitted to the Company for examination
upon request, but without warranty on your part as to the authority of the
signers thereof.

 

24

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  Jostens IH Corp.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Michael Bailey

  
	
   

  	
   

  	
   

  	
  Name:Michael Bailey

  
	
   

  	
   

  	
   

  	
  Title:Chief Executive
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Jostens, Inc.,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Michael Bailey

  
	
   

  	
   

  	
   

  	
  Name:Michael Bailey

  
	
   

  	
   

  	
   

  	
  Title:Chief Executive
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Von Hoffmann Holdings
  Inc.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Name:Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Von Hoffmann Corporation,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Name:Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  The Lehigh Press, Inc.,

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Name:Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Precision Offset Printing
  Company, Inc.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Name:Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  

 

25

 

	
   

  	
  Anthology, Inc.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Name:Gary C. Wetzel

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AHC I Acquisition Corp.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Kenneth A. Budde

  
	
   

  	
   

  	
   

  	
  Name:Kenneth A. Budde

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AKI Holding Corp.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Kenneth A. Budde

  
	
   

  	
   

  	
   

  	
  Name:Kenneth A. Budde

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AKI, Inc.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Kenneth A. Budde

  
	
   

  	
   

  	
   

  	
  Name:Kenneth A. Budde

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  IST Corp.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  by:

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ Kenneth A. Budde

  
	
   

  	
   

  	
   

  	
  Name:Kenneth A. Budde

  
	
   

  	
   

  	
   

  	
  Title:Chief Financial
  Officer

  

 

26

 

Accepted
as of the date hereof:

 

Credit Suisse First Boston LLC

Deutsche Bank Securities Inc.

Banc of America Securities LLC

ING Financial Markets LLC

Calyon Securities (USA) Inc.

CIT Capital Securities LLC

Greenwich Capital Markets, Inc.

NatCity Investments, Inc.

 

 

	
  By: Credit Suisse First
  Boston LLC

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Clarke Adams

  	
   

  
	
   

  	
  Name:
  Clarke Adams

  
	
   

  	
  Title:
  Director

  
	
   

  	
   

  
	
  By: Deutsche Bank
  Securities Inc.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ John Eyderberg

  	
   

  
	
   

  	
  Name:
  John Eyderberg

  
	
   

  	
  Title:
  Managing Director

  
	
   

  	
   

  
	
  By:

  	
  /s/ Stephanie L. Perry

  	
   

  
	
   

  	
  Name:
  Stephanie L. Perry

  
	
   

  	
  Title:
  Vice President

  
	
   

  
	
   

  	
  Acting
  on behalf of themselves

  
	
   

  	
  and
  as representatives of the

  
	
   

  	
  several
  Purchasers

  
				

 

27

 

Exhibit A

 

Jostens IH Corp.

 

INSTRUCTION TO DTC
PARTICIPANTS

 

(Date of Mailing)

 

URGENT - IMMEDIATE ATTENTION
REQUESTED

 

DEADLINE FOR RESPONSE:  [DATE] *

 

The Depository Trust Company (“DTC”) has
identified you as a DTC Participant through which beneficial interests in
Jostens IH Corp. (the “Company”) 7 5/8%
Senior Subordinated Notes due 2012 (the “Securities”) are held.

 

The Company is in the process of
registering the Securities under the Securities Act of 1933 for resale by the
beneficial owners thereof.  In order to
have their Securities included in the registration statement, beneficial owners
must complete and return the enclosed Notice of Registration Statement and Selling
Securityholder Questionnaire.

 

It is important that beneficial owners of
the Securities receive a copy of the enclosed materials as soon as possible
as their rights to have the Securities included in the registration statement
depend upon their returning the Notice and Questionnaire by [Deadline For Response]. 
Please forward a copy of the enclosed documents to each beneficial owner
that holds interests in the Securities through you.  If you require more copies of the enclosed
materials or have any questions pertaining to this matter, please contact
Jostens IH Corp., 5501 American Boulevard West, Minneapolis, Minnesota
55437.

 

*Not less than 28 calendar days
from date of mailing.

 

A-1

 

Jostens IH Corp.

 

Notice of Registration Statement

and

Selling Securityholder Questionnaire

 

(Date)

 

Reference is hereby made to the Exchange
and Registration Rights Agreement (the “Exchange and Registration Rights
Agreement”) among Jostens IH Corp. (the “Company”) and the Purchasers named
therein.  Pursuant to the Exchange and
Registration Rights Agreement, the Company has filed with the United States
Securities and Exchange Commission (the “Commission”) a registration statement
on Form [    ]
(the “Shelf Registration Statement”) for the registration and resale under
Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”),
of the Company’s 7 5/8% Senior
Subordinated Notes due 2012 (the “Securities”).  A copy of the Exchange and Registration
Rights Agreement is attached hereto.  All
capitalized terms not otherwise defined herein shall have the meanings ascribed
thereto in the Exchange and Registration Rights Agreement.

 

Each beneficial owner of Registrable
Securities (as defined below) is entitled to have the Registrable Securities
beneficially owned by it included in the Shelf Registration Statement.  In order to have Registrable Securities
included in the Shelf Registration Statement, this Notice of Registration
Statement and Selling Securityholder Questionnaire (“Notice and Questionnaire”)
must be completed, executed and delivered to the Company’s counsel at the
address set forth herein for receipt ON OR BEFORE [Deadline
for Response].  Beneficial
owners of Registrable Securities who do not complete, execute and return this
Notice and Questionnaire by such date (i) will not be named as selling
securityholders in the Shelf Registration Statement and (ii) may not use
the Prospectus forming a part thereof for resales of Registrable Securities.

 

Certain legal consequences arise from
being named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.  Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their
own securities law counsel regarding the consequences of being named or not
being named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.

 

The term “Registrable Securities”
is defined in the Exchange and Registration Rights Agreement.

 

A-2

 

ELECTION

 

The undersigned holder (the “Selling
Securityholder”) of Registrable Securities hereby elects to include in the
Shelf Registration Statement the Registrable Securities beneficially owned by
it and listed below in Item (3). 
The undersigned, by signing and returning this Notice and Questionnaire,
agrees to be bound with respect to such Registrable Securities by the terms and
conditions of this Notice and Questionnaire and the Exchange and Registration
Rights Agreement, including, without limitation, Section 6 of the Exchange and
Registration Rights Agreement, as if the undersigned Selling Securityholder
were an original party thereto.

 

Upon any sale of Registrable Securities
pursuant to the Shelf Registration Statement, the Selling Securityholder will
be required to deliver to the Company and Trustee the Notice of Transfer set
forth in Appendix A to the Prospectus and as Exhibit B to the Exchange and
Registration Rights Agreement.

 

The Selling Securityholder hereby
provides the following information to the Company and represents and warrants
that such information is accurate and complete:

 

A-3

 

QUESTIONNAIRE

 

	
  (1)

  	
  (a)

  	
  Full Legal Name of Selling
  Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Full Legal Name of Registered Holder
  (if not the same as in (a) above) of Registrable Securities Listed in Item
  (3) below:

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Full Legal Name of DTC Participant (if
  applicable and if not the same as (b) above) Through Which Registrable
  Securities Listed in Item (3) below are Held:

  
	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Address for Notices to Selling
  Securityholder:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Telephone:

  
	
   

  	
   

  	
  Fax:

  
	
   

  	
   

  	
  Contact
  Person:

  
	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Beneficial
  Ownership of Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except as
  set forth below in this Item (3), the undersigned does not beneficially
  own any Securities.

  
	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Principal amount of Registrable
  Securities beneficially owned:

  
	
   

  	
   

  	
  CUSIP No(s). of such Registrable
  Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
  (b)

  	
  Principal amount of Securities other
  than Registrable Securities beneficially owned:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CUSIP No(s). of such other Securities:

  
	
   

  	
   

  	
   

  
	
   

  	
  (c)

  	
  Principal amount of Registrable
  Securities which the undersigned wishes to be included in the Shelf
  Registration Statement:

  
	
   

  	
   

  	
  CUSIP No(s). of such Registrable
  Securities to be included in the Shelf Registration Statement:

  
	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Beneficial Ownership of Other
  Securities of the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Except as set forth below in
  this Item (4), the undersigned Selling Securityholder is not the
  beneficial or registered owner of any other securities of the Company, other
  than the Securities listed above in Item (3).

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  State any exceptions here:

  
	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Relationships with the Company:

  

 

A-4

 

Except as set forth below, neither the Selling
Securityholder nor any of its affiliates, officers, directors or principal
equity holders (5% or more) has held any position or office or has had any
other material relationship with the Company (or its predecessors or
affiliates) during the past three years.

 

State
any exceptions here:

 

(6)                                  Plan
of Distribution:

 

Except as set forth below, the undersigned Selling
Securityholder intends to distribute the Registrable Securities listed above in
Item (3) only as follows (if at all): 
Such Registrable Securities may be sold from time to time directly by
the undersigned Selling Securityholder or, alternatively, through underwriters,
broker-dealers or agents.  Such
Registrable Securities may be sold in one or more transactions at fixed prices,
at prevailing market prices at the time of sale, at varying prices determined
at the time of sale, or at negotiated prices. 
Such sales may be effected in transactions (which may involve crosses or
block transactions) (i) on any national securities exchange or quotation
service on which the Registered Securities may be listed or quoted at the time
of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise
than on such exchanges or services or in the over-the-counter market, or (iv)
through the writing of options.  In connection
with sales of the Registrable Securities or otherwise, the Selling
Securityholder may enter into hedging transactions with broker-dealers, which
may in turn engage in short sales of the Registrable Securities in the course
of hedging the positions they assume. 
The Selling Securityholder may also sell Registrable Securities short
and deliver Registrable Securities to close out such short positions, or loan
or pledge Registrable Securities to broker-dealers that in turn may sell such
securities.

 

State
any exceptions here:

 

 

By signing below, the Selling
Securityholder acknowledges that it understands its obligation to comply, and
agrees that it will comply, with the provisions of the Exchange Act and the
rules and regulations thereunder, particularly Regulation M.

 

In the event that the Selling
Securityholder transfers all or any portion of the Registrable Securities
listed in Item (3) above after the date on which such information is
provided to the Company, the Selling Securityholder agrees to notify the
transferee(s) at the time of the transfer of its rights and obligations under
this Notice and Questionnaire and the Exchange and Registration Rights
Agreement.

 

By signing below, the Selling
Securityholder consents to the disclosure of the information contained herein
in its answers to Items (1) through (6) above and the inclusion of such
information in the Shelf Registration Statement and related Prospectus.  The Selling Securityholder understands that
such information will be relied upon by the Company in connection with the
preparation of the Shelf Registration Statement and related Prospectus.

 

In accordance with the Selling
Securityholder’s obligation under Section 3(d) of the Exchange and
Registration Rights Agreement to provide such information as may be required by
law for inclusion in the Shelf Registration Statement, the Selling
Securityholder agrees to promptly

 

A-5

 

notify the Company of any inaccuracies or
changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect.  All notices hereunder and
pursuant to the Exchange and Registration Rights Agreement shall be made in
writing, by hand-delivery, first-class mail, or air courier guaranteeing
overnight delivery as follows:

 

	
  (i)

  	
   To the Company:

  
	
   

  	
   

  
	
   

  	
  Jostens IH Corp.

  
	
   

  	
  5501 American Boulevard West

  
	
   

  	
  Minneapolis, Minnesota 55437

  
	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  
	
  (ii)

  	
   With a copy to:

  
	
   

  	
   

  
	
   

  	
  Simpson Thacher & Bartlett LLP

  
	
   

  	
  425 Lexington Avenue

  
	
   

  	
  New York, New York 10017

  
	
   

  	
  Attention: Risë Norman

  
			

 

Once this Notice and Questionnaire is
executed by the Selling Securityholder and received by the Company’s counsel,
the terms of this Notice and Questionnaire, and the representations and
warranties contained herein, shall be binding on, shall inure to the benefit of
and shall be enforceable by the respective successors, heirs, personal
representatives, and assigns of the Company and the Selling Securityholder
(with respect to the Registrable Securities beneficially owned by such Selling
Securityholder and listed in Item (3) above). 
This Agreement shall be governed in all respects by the laws of the
State of New York.

 

A-6

 

IN WITNESS WHEREOF, the undersigned,
by authority duly given, has caused this Notice and Questionnaire to be
executed and delivered either in person or by its duly authorized agent.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Selling Securityholder

  
	
   

  	
  (Print/type full legal name of
  beneficial owner of Registrable Securities)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

PLEASE RETURN THE
COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY’S COUNSEL AT:

 

Simpson
Thacher & Bartlett LLP

425 Lexington Avenue

New York, New York  10017

Attention:  Risë Norman

 

A-7

 

Exhibit B

 

NOTICE OF TRANSFER PURSUANT TO
REGISTRATION STATEMENT

 

The Bank of New York 
Jostens IH Corp.

c/o The Bank of New York

101 Barclay Street, 8W

New York, New York 10286

 

Attention:  Trust Officer

 

Re:                               Jostens
IH Corp. (the “Company”)
7 5/8% Senior Subordinated Notes due
2012

 

 

Dear Sirs:

 

Please be advised that                                        
has transferred $                                        
aggregate principal amount of the above-referenced Notes pursuant to an
effective Registration Statement on Form [     ] (File No. 333-       )
filed by the Company.

 

We hereby certify that the prospectus
delivery requirements, if any, of the Securities Act of 1933, as amended, have
been satisfied and that the above-named beneficial owner of the Notes is named
as a “Selling Holder” in the Prospectus dated [date] or in supplements thereto, and that the aggregate principal
amount of the Notes transferred are the Notes listed in such Prospectus
opposite such owner’s name.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Name)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Authorized
  Signature)

  

 

B-1Exhibit 10.1

 

 

$1,270,000,000

 

CREDIT AGREEMENT

 

Dated as of October 4, 2004,

 

among

 

JOSTENS IH CORP., 

as Borrower

 

JOSTENS CANADA LTD.,

as Canadian Borrower

 

JOSTENS SECONDARY HOLDINGS CORP.,

as Guarantor

 

The Several Lenders

from Time to Time Parties Hereto

 

CREDIT SUISSE FIRST BOSTON,

as Administrative Agent

 

and

 

CREDIT SUISSE FIRST BOSTON
TORONTO BRANCH,

as Canadian Administrative Agent

 

 

CREDIT SUISSE FIRST BOSTON,

as Sole Lead Arranger and Sole Bookrunner

 

DEUTSCHE BANK SECURITIES INC. 

BANC OF AMERICA SECURITIES LLC,

as Co-Arrangers and Co-Syndication Agents

 

and

 

GENERAL ELECTRIC CAPITAL
CORPORATION,

as Documentation Agent

 

 

 

TABLE OF CONTENTS

 

	
  SECTION 1. DEFINITIONS

  	
   

  
	
  1.1.

  	
  Defined
  Terms

  	
   

  
	
   

  	
   

  
	
  SECTION 2. AMOUNT AND TERMS OF CREDIT

  	
   

  
	
  2.1.

  	
  Commitments

  	
   

  
	
  2.2.

  	
  Minimum Amount of Each Borrowing; Maximum
  Number of Borrowings

  	
   

  
	
  2.3.

  	
  Notice of Borrowing

  	
   

  
	
  2.4.

  	
  Disbursement of Funds

  	
   

  
	
  2.5.

  	
  Repayment of Loans; Evidence of Debt

  	
   

  
	
  2.6.

  	
  Conversions and Continuations

  	
   

  
	
  2.7.

  	
  Pro Rata Borrowings

  	
   

  
	
  2.8.

  	
  Interest

  	
   

  
	
  2.9.

  	
  Interest Periods

  	
   

  
	
  2.10.

  	
  Increased Costs, Illegality, etc

  	
   

  
	
  2.11.

  	
  Compensation

  	
   

  
	
  2.12.

  	
  Change of Lending Office

  	
   

  
	
  2.13.

  	
  Notice of Certain Costs

  	
   

  
	
  2.14.

  	
  Bankers’ Acceptances

  	
   

  
	
  2.15.

  	
  Incremental Term Loans

  	
   

  
	
   

  	
   

  
	
  SECTION 3. LETTERS OF CREDIT

  	
   

  
	
  3.1.

  	
  Letters of Credit

  	
   

  
	
  3.2.

  	
  Letter of Credit Requests

  	
   

  
	
  3.3.

  	
  Letter of Credit Participations

  	
   

  
	
  3.4.

  	
  Agreement to Repay Letter of Credit
  Drawings

  	
   

  
	
  3.5.

  	
  Increased
  Costs

  	
   

  
	
  3.6.

  	
  Successor Letter of Credit Issuer

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4. FEES; COMMITMENTS

  	
   

  
	
  4.1.

  	
  Fees

  	
   

  
	
  4.2.

  	
  Voluntary Reduction of Revolving Credit
  Commitments

  	
   

  
	
  4.3.

  	
  Mandatory Termination of Commitments

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5. PAYMENTS

  	
   

  
	
  5.1.

  	
  Voluntary Prepayments

  	
   

  
	
  5.2.

  	
  Mandatory Prepayments

  	
   

  
	
  5.3.

  	
  Method and Place of Payment

  	
   

  
	
  5.4.

  	
  Net
  Payments

  	
   

  
	
  5.5.

  	
  Computations of Interest and Fees

  	
   

  
	
  5.6.

  	
  Limit on Rate of Interest.

  	
   

  

 

i

 

	
  SECTION 6A. CONDITIONS PRECEDENT TO INITIAL
  BORROWING

  	
   

  
	
  6.1.

  	
  Credit Documents

  	
   

  
	
  6.2.

  	
  Collateral

  	
   

  
	
  6.3.

  	
  Legal Opinions

  	
   

  
	
  6.4.

  	
  Representations and Warranties; No Default

  	
   

  
	
  6.5.

  	
  Senior Subordinated Notes

  	
   

  
	
  6.6.

  	
  Equity Contributions

  	
   

  
	
  6.7.

  	
  Closing Certificates

  	
   

  
	
  6.8.

  	
  Corporate Proceedings of Each Credit Party

  	
   

  
	
  6.9.

  	
  Corporate Documents

  	
   

  
	
  6.10.

  	
  Other Documents

  	
   

  
	
  6.11.

  	
  Fees

  	
   

  
	
  6.12.

  	
  Related Agreements

  	
   

  
	
  6.13.

  	
  Solvency Certificate

  	
   

  
	
  6.14.

  	
  Governmental Authorizations and Consents

  	
   

  
	
  6.15.

  	
  Historical Financial Statements

  	
   

  
	
  6.16.

  	
  Pro Forma Financial Statements

  	
   

  
	
  6.17.

  	
  Acquisition

  	
   

  
	
  6.18.

  	
  Insurance

  	
   

  
	
  6.19.

  	
  Existing Indebtedness

  	
   

  
	
  6.20.

  	
  No Material Adverse Change

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6B. CONDITIONS TO DELAYED DRAW
  BORROWING

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7. CONDITIONS PRECEDENT TO ALL
  CREDIT EVENTS

  	
   

  
	
  7.1.

  	
  No Default;
  Representations and Warranties

  	
   

  
	
  7.2.

  	
  Notice of Borrowing; Letter of Credit Request

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8. REPRESENTATIONS, WARRANTIES AND
  AGREEMENTS

  	
   

  
	
  8.1.

  	
  Corporate Status

  	
   

  
	
  8.2.

  	
  Corporate Power and Authority

  	
   

  
	
  8.3.

  	
  Authorization; No Violation

  	
   

  
	
  8.4.

  	
  Litigation

  	
   

  
	
  8.5.

  	
  Margin Regulations

  	
   

  
	
  8.6.

  	
  Governmental Approvals

  	
   

  
	
  8.7.

  	
  Investment Company Act

  	
   

  
	
  8.8.

  	
  True and Complete Disclosure

  	
   

  
	
  8.9.

  	
  Financial Statements; Financial Condition

  	
   

  
	
  8.10.

  	
  Tax Returns and Payments

  	
   

  
	
  8.11.

  	
  Compliance with ERISA

  	
   

  
	
  8.12.

  	
  Subsidiaries

  	
   

  
	
  8.13.

  	
  Patents,
  etc

  	
   

  
	
  8.14.

  	
  Environmental Laws

  	
   

  
	
  8.15.

  	
  Properties

  	
   

  
	
  8.16.

  	
  Solvency

  	
   

  
	
  8.17.

  	
  Public Utility Holding Company Act

  	
   

  

 

ii

 

	
  SECTION 9. AFFIRMATIVE COVENANTS

  	
   

  
	
  9.1.

  	
  Information Covenants

  	
   

  
	
  9.2.

  	
  Books,
  Records and Inspections

  	
   

  
	
  9.3.

  	
  Maintenance of Insurance

  	
   

  
	
  9.4.

  	
  Payment of Taxes

  	
   

  
	
  9.5.

  	
  Consolidated Corporate Franchises

  	
   

  
	
  9.6.

  	
  Compliance with Statutes, Regulations, etc

  	
   

  
	
  9.7.

  	
  ERISA;
  Canadian Benefit Matters

  	
   

  
	
  9.8.

  	
  Good
  Repair

  	
   

  
	
  9.9.

  	
  Transactions with Affiliates

  	
   

  
	
  9.10.

  	
  End of Fiscal Years; Fiscal Quarters

  	
   

  
	
  9.11.

  	
  Additional Guarantors and Grantors

  	
   

  
	
  9.12.

  	
  Pledges of Additional Stock and Evidence of
  Indebtedness

  	
   

  
	
  9.13.

  	
  Use of Proceeds

  	
   

  
	
  9.14.

  	
  Changes in Business

  	
   

  
	
  9.15.

  	
  Further Assurances

  	
   

  
	
  9.16.

  	
  Maintenance of Rating of Facilities

  	
   

  
	
  9.17.

  	
  Canadian Borrower

  	
   

  
	
  9.18.

  	
  Tender Payments; Post-Closing Other Tender
  Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10. NEGATIVE COVENANTS

  	
   

  
	
  10.1.

  	
  Limitation on Indebtedness

  	
   

  
	
  10.2.

  	
  Limitation on Liens

  	
   

  
	
  10.3.

  	
  Limitation on Fundamental Changes

  	
   

  
	
  10.4.

  	
  Limitation on Sale of Assets

  	
   

  
	
  10.5.

  	
  Limitation on Investments

  	
   

  
	
  10.6.

  	
  Limitation on Dividends

  	
   

  
	
  10.7.

  	
  Limitations on Debt Payments and
  Amendments; Unpaid Refinancing Amount

  	
   

  
	
  10.8.

  	
  Limitations on Sale Leasebacks

  	
   

  
	
  10.9.

  	
  Consolidated Total Debt to Consolidated
  EBITDA Ratio

  	
   

  
	
  10.10.

  	
  Consolidated EBITDA to Consolidated
  Interest Expense Ratio

  	
   

  
	
  10.11.

  	
  Capital Expenditures

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11. EVENTS OF DEFAULT.

  	
   

  
	
  11.1.

  	
  Payments

  	
   

  
	
  11.2.

  	
  Representations, etc

  	
   

  
	
  11.3.

  	
  Covenants

  	
   

  
	
  11.4.

  	
  Default Under Other Agreements

  	
   

  
	
  11.5.

  	
  Bankruptcy,
  etc

  	
   

  
	
  11.6.

  	
  ERISA

  	
   

  
	
  11.7.

  	
  Guarantee

  	
   

  
	
  11.8.

  	
  Security Agreements

  	
   

  
	
  11.9.

  	
  Mortgages

  	
   

  
	
  11.10.

  	
  Canadian Security Documents

  	
   

  
	
  11.11.

  	
  Judgments

  	
   

  
	
  11.12.

  	
  Change of Control

  	
   

  

 

iii

 

	
  SECTION 12. THE ADMINISTRATIVE AGENT

  	
   

  
	
  12.1.

  	
  Appointment

  	
   

  
	
  12.2.

  	
  Delegation of Duties

  	
   

  
	
  12.3.

  	
  Exculpatory Provisions

  	
   

  
	
  12.4.

  	
  Reliance by Administrative Agent

  	
   

  
	
  12.5.

  	
  Notice of Default

  	
   

  
	
  12.6.

  	
  Non-Reliance on Administrative Agent and
  Other Lenders

  	
   

  
	
  12.7.

  	
  Indemnification

  	
   

  
	
  12.8.

  	
  Administrative Agent in its Individual
  Capacity

  	
   

  
	
  12.9.

  	
  Successor Agent

  	
   

  
	
  12.10.

  	
  Withholding Tax

  	
   

  
	
  12.11.

  	
  Canadian Administrative Agent

  	
   

  
	
  12.12.

  	
  Other
  Agents; Arrangers and Bookrunners

  	
   

  
	
   

  	
   

  
	
  SECTION 13. MISCELLANEOUS

  	
   

  
	
  13.1.

  	
  Amendments and Waivers

  	
   

  
	
  13.2.

  	
  Notices

  	
   

  
	
  13.3.

  	
  No
  Waiver; Cumulative Remedies

  	
   

  
	
  13.4.

  	
  Survival of Representations and Warranties

  	
   

  
	
  13.5.

  	
  Payment of Expenses and Taxes

  	
   

  
	
  13.6.

  	
  Successors and Assigns; Participations and Assignments

  	
   

  
	
  13.7.

  	
  Replacements of Lenders under Certain Circumstances

  	
   

  
	
  13.8.

  	
  Adjustments;
  Set-off

  	
   

  
	
  13.9.

  	
  Counterparts

  	
   

  
	
  13.10.

  	
  Severability

  	
   

  
	
  13.11.

  	
  Integration

  	
   

  
	
  13.12.

  	
  GOVERNING
  LAW

  	
   

  
	
  13.13.

  	
  Submission to Jurisdiction; Waivers

  	
   

  
	
  13.14.

  	
  Acknowledgments

  	
   

  
	
  13.15.

  	
  WAIVERS OF JURY TRIAL

  	
   

  
	
  13.16.

  	
  Confidentiality

  	
   

  
	
  13.17.

  	
  Judgment Currency

  	
   

  
	
  13.18.

  	
  USA PATRIOT Act

  	
   

  

 

iv

 

SCHEDULES

 

	
  Schedule 1.1(a)

  	
  Existing Letters of Credit

  
	
  Schedule 1.1 (b)

  	
  Mortgaged Properties

  
	
  Schedule 1.1 (c)

  	
  Commitments and Addresses of Lenders

  
	
  Schedule 1.1 (d)

  	
  Excluded Subsidiaries

  
	
  Schedule 8.11(b)

  	
  Canadian Pension Plan Matters

  
	
  Schedule 8.12

  	
  Subsidiaries

  
	
  Schedule 10.1

  	
  Closing Date Indebtedness

  
	
  Schedule 10.2

  	
  Closing Date Liens

  
	
  Schedule 10.5

  	
  Closing Date Investments

  

 

EXHIBITS

 

	
  Exhibit A

  	
  Form of Assignment and Acceptance

  
	
  Exhibit B-1

  	
  Form of US Guarantee

  
	
  Exhibit B-2

  	
  Form of Canadian Guarantee

  
	
  Exhibit C-1

  	
  Form of Security Agreement

  
	
  Exhibit C-2

  	
  Form of Canadian Security Agreement

  
	
  Exhibit C-3

  	
  Form of Pledge Agreement

  
	
  Exhibit C-4

  	
  Form of Canadian Pledge Agreement

  
	
  Exhibit D

  	
  Form of Joinder Agreement

  
	
  Exhibit E

  	
  Form of Mortgage (Real Property)

  
	
  Exhibit F

  	
  Form of Perfection Certificate

  
	
  Exhibit G-1

  	
  Form of US Letter of Credit Request

  
	
  Exhibit G-2

  	
  Form of Canadian Letter of Credit Request

  
	
  Exhibit H

  	
  [Reserved]

  
	
  Exhibit I-1

  	
  Form of Legal Opinion of Simpson Thacher
  & Bartlett LLP

  
	
  Exhibit I-2

  	
  Form of Legal Opinion of General Counsel

  
	
  Exhibit I-3

  	
  Form of Legal Opinion of Canadian Counsel

  
	
  Exhibit I-4

  	
  Form of Legal Opinions of Local Counsel

  
	
  Exhibit J-1

  	
  Form of Borrower Closing Certificate

  
	
  Exhibit J-2

  	
  Form of Credit Party Closing Certificate

  
	
  Exhibit K-1

  	
  Form of Promissory Note (Tranche A Term
  Loans)

  
	
  Exhibit K-2

  	
  Form of Promissory Note (Tranche B Term
  Loans and New Tranche B Term Loans)

  
	
  Exhibit K-3

  	
  Form of Promissory Note (Revolving Credit
  and Swingline Loans)

  
	
  Exhibit L

  	
  Form of Scotiabank Intercreditor Agreement

  
	
  Exhibit M-1

  	
  Form of Borrowing Request

  
	
  Exhibit M-2

  	
  Form of Canadian Borrowing Request

  

 

 

CREDIT
AGREEMENT dated as of October 4, 2004, among JOSTENS IH CORP., a
Delaware corporation (the “Borrower”), 
JOSTENS CANADA LTD., a Manitoba corporation (the “Canadian Borrower”),
JOSTENS SECONDARY HOLDINGS CORP., a Delaware corporation (“Holdings”),
the lending institutions from time to time parties hereto (each a “Lender”
and, collectively, the “Lenders”), CREDIT SUISSE FIRST BOSTON, as
Administrative Agent, and CREDIT
SUISSE FIRST BOSTON TORONTO BRANCH, as Canadian Administrative Agent.

 

Pursuant to or
in connection with the Acquisition Agreements (such term and each other
capitalized term used but not defined in this introductory statement having the
meaning provided in Section 1), (a) the Merger will be consummated and the
Merger Consideration will be paid to the Persons entitled thereto, (b) KKR will
make the KKR Equity Contribution, (c) immediately following the consummation of
the Merger, Fusion will contribute 100% of the issued and outstanding equity
interests of each of Von Hoffmann Holdings and Arcade Holdings to Parent in
exchange for equity interests in Parent representing not less than 40% of the
economic interests in Parent represented by all issued and outstanding equity
interests in Parent (with the per share value implied by the number of shares
of equity interests in Parent so received by KKR being referred to as the “KKR
Valuation Amount”), (d) on the Closing Date, DLJMB and the Management
Investors will continue to own equity interests in Parent in an aggregate
amount (valued at the KKR Valuation Amount) that, when combined with the KKR
Equity Amount, equals not less than 22.5% of the total capitalization of Parent
on the Closing Date (not including the aggregate principal amount of Revolving
Credit Loans made on the Closing Date) after giving pro forma effect to the
consummation of the Transactions (such equity interests so owned, the “Rollover
Equity Contribution” and, together with the KKR Equity Contribution, the “Equity
Contribution”), (e) the Borrower will issue senior subordinated notes (the “Senior
Subordinated Notes”) in a Rule 144A or other private placement (the “Senior
Subordinated Notes Offering”) generating, collectively, aggregate gross
cash proceeds of not less than $500,000,000 (or such lesser amount sufficient,
together with the KKR Equity Contribution and the proceeds from the credit
facilities hereunder, to consummate the Transactions), (f) Parent will
contribute the equity interests received by Parent as described in clause (c)
above to Holdings, (g) Jostens, Von Hoffmann and Arcade, as applicable, will
purchase each of its Existing Opco Notes validly tendered (and not withdrawn)
pursuant to the Tenders Offers (and will effect the Other Tender Procedures in
respect of all Existing Opco Notes not so purchased), (h) the Other Refinancing
Transactions will be effected and (i) immediately following the Jostens
Preferred Repurchase, Holdings will contribute the equity interests received by
Holdings as described in clause (f) above to the Borrower, as a result of which
each of Jostens, Von Hoffmann and Arcade will be direct, wholly owned
subsidiaries of the Borrower.  The Merger
and the equity contributions described in clauses (c), (f) and (i) of the
preceding sentence are collectively referred to herein as the “Acquisition”.

 

In connection with the
foregoing, the Borrower has requested the Lenders to extend credit in the form
of (a) Term Loans, in an aggregate principal amount of $1,020,000,000, (b) US
Revolving Credit Loans made available to the Borrower at any time and from time
to time prior to the Revolving Credit Maturity Date, in an aggregate principal
amount at any time outstanding not in excess of $230,000,000 less the sum of
(i) the aggregate US Letters of Credit Outstanding at such time and (ii) the
aggregate principal amount of all Swingline Loans outstanding at such time and
(c) Canadian Revolving Credit Loans made available to the Canadian
Borrower and the Borrower at any time and from time to time prior to the
Revolving Credit Maturity Date, in an aggregate principal amount at any time
outstanding not in excess of $20,000,000 less the sum of the aggregate Canadian
Letters of Credit Outstanding at such time. 
The Borrower has requested (a) the Letter of Credit Issuers to issue
Letters of Credit at any time and from time to time prior to the L/C Maturity
Date, in an aggregate face amount at any time outstanding not in excess of
$100,000,000 and (b) that the letters of credit issued by the US Letter of
Credit Issuer pursuant to the Existing Jostens Credit Agreement (the “Existing
Letters of Credit”) and identified on Schedule 1.1(a) hereto be
deemed to be Letters of Credit for all purposes under this Agreement.  The Borrower has requested the Swingline
Lender to extend credit in the form of Swingline Loans at any time and from
time to time prior to the Swingline Maturity Date, in an aggregate principal
amount at any time outstanding not in excess of $30,000,000.

 

The proceeds
of the Term Loans and any Revolving Credit Loans made on the Closing Date will be
used by the Borrower, together with (a) the net proceeds of the Senior
Subordinated Notes Offering and (b) the proceeds of the KKR Equity
Contribution, on the Closing Date solely to effect the Acquisition and the
other Transactions and to pay Transaction Expenses (and the proceeds of any
Term Loans made on the Delayed Draw Date will be used solely to redeem the
Existing Opco Notes comprising the Unpaid Refinancing Amount).  Proceeds of Revolving Credit Loans and Swingline
Loans will be used by the Borrower and the Canadian Borrower after the Closing
Date for general corporate purposes (including Permitted Acquisitions).  Letters of Credit will be used by the
Borrower and the Canadian Borrower for general corporate purposes.

 

The parties
hereto hereby agree as follows:

 

SECTION 1.  Definitions

 

1.1.          Defined Terms.  (a)  As used herein, the following
terms shall have the meanings specified in this Section 1.1 (it being
understood that defined terms in this Agreement shall include in the singular
number the plural and in the plural the singular):

 

“ABR”
shall mean, for any day, a rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of
(a) the Prime Rate in effect on such day and (b) the Federal Funds
Effective Rate in effect on such day plus 1⁄2 of 1%.  If the Administrative Agent shall have
determined (which determination shall be conclusive absent manifest error) that
it is unable to ascertain the Federal Funds Effective Rate for any reason,
including the inability or failure of the Administrative Agent to obtain
sufficient quotations in accordance with the terms of the definition thereof,
the ABR shall be determined without regard to clause (b) of the preceding
sentence until the circumstances giving rise to such inability no longer
exist.  Any change in the ABR due to a
change in the Prime Rate or the Federal Funds Effective Rate shall

 

2

 

be effective
as of the opening of business on the effective day of such change in the Prime
Rate or the Federal Funds Effective Rate, respectively.

 

“ABR Loan”
shall mean any Loan bearing at a rate determined by reference to the ABR and,
in any event, shall include all Swingline Loans.

 

“Acquired
EBITDA” shall mean, with respect to any Acquired Entity or Business or any
Converted Restricted Subsidiary (any of the foregoing, a “Pro Forma Acquired
Entity”), for any period, the amount for such period of Consolidated EBITDA
of such Pro Forma Acquired Entity (determined using such definitions as if
references to the Borrower and its Subsidiaries therein were to such Pro Forma
Acquired Entity and its Subsidiaries), all as determined on a consolidated
basis for such Pro Forma Acquired Entity in accordance with GAAP.

 

“Acquired
Entity or Business” shall have the meaning provided in the definition of
the term “Consolidated EBITDA”.

 

“Acquired
Permitted Capital Expenditure Amount” shall have the meaning provided in
Section 10.11.

 

“Acquisition”
shall have the meaning provided in the preamble to this Agreement.

 

“Acquisition
Agreements” shall mean, collectively, the Merger Agreements, the
Contribution Agreement and all other material documents and instruments entered
into in connection therewith.

 

“Adjusted
Canadian Total Revolving Credit Commitment” shall mean at any time the
Canadian Total Revolving Credit Commitment less the aggregate Canadian
Revolving Credit Commitments of all Defaulting Lenders.

 

“Adjusted
US Total Revolving Credit Commitment” shall mean at any time the US Total
Revolving Credit Commitment less the aggregate US Revolving Credit Commitments
of all Defaulting Lenders.

 

“Adjusted
Total Term Loan Commitment” shall mean at any time the Total Term Loan
Commitment less the Term Loan Commitments of all Defaulting Lenders.

 

“Administrative
Agent” shall mean Credit Suisse First Boston, as the administrative agent
for the Lenders under this Agreement and the other Credit Documents.  All references herein to the term “Administrative
Agents” shall be deemed to refer to both the Administrative Agent and the
Canadian Administrative Agent, as the context requires.

 

“Administrative
Agent’s Office” shall mean (a) in respect of all Credit Events for the
account of the Borrower, the office of the Administrative Agent located at
Eleven Madison Avenue, New York, New York 10010, or such other office as the
Administrative Agent may hereafter designate in writing as such to the other
parties hereto and (b) in respect of all Credit

 

3

 

Events for the
account of the Canadian Borrower, the office of the Canadian Administrative
Agent located at One First Canadian Place, Suite 3000, P.O. Box 301, Toronto,
Ontario, Canada M5X 1C9, or such other office in Canada as the Canadian
Administrative Agent may hereafter designate in writing as such to the other
parties hereto and all references to the term “Canadian Administrative Agent’s
Office” shall mean the office referred to in this clause (b).

 

“Administrative
Questionnaire” shall have the meaning provided in Section 13.6(b).

 

“Affiliate”
shall mean, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with
such Person.  A Person shall be deemed to
control another Person (other than an individual) if the first Person
possesses, directly or indirectly, the power (a) to vote 10% or more of
the equity interests having ordinary voting power for the election of directors
(or comparable governing body) of such other Person or (b) to direct or
cause the direction of the management and policies of such other Person,
whether through the ownership of voting securities, by contract or otherwise.

 

“Agents”
shall mean the Administrative Agent, the Canadian Administrative Agent, the
Sole Lead Arranger and Sole Bookrunner, the Co-Arrangers, the Co-Syndication
Agents and the Documentation Agent.

 

“Aggregate
Canadian Revolving Credit Outstandings” shall have the meaning provided in
Section 5.2(b)(ii).

 

“Aggregate
US Revolving Credit Outstandings” shall have the meaning provided in
Section 5.2(b)(i).

 

“Agreement”
shall mean this Credit Agreement, as the same may be amended, supplemented or
otherwise modified from time to time.

 

“Amortization
Amount” shall have the meaning provided in Section 5.2(c).

 

“Applicable
ABR Margin” shall mean at any date, with respect to each ABR Loan, Cdn ABR
Loan and Canadian Prime Loan that is a Tranche A Term Loan, Tranche B Term
Loan, Revolving Credit Loan or Swingline Loan, the applicable percentage per annum set forth below based upon the Status in effect on
such date:

 

4

 

	
  Status

  	
   

  	
  Applicable ABR Margin for 

  Tranche A Term Loans,

  Revolving Credit and Swingline Loans

  (including ABR Loans, Cdn ABR

  Loans and Canadian Prime Loans)

  	
   

  	
  Applicable ABR Margin for

  Tranche B Term Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level I
  Status

  	
   

  	
  1.50

  	
  %

  	
  1.50

  	
  %

  
	
  Level II
  Status

  	
   

  	
  1.25

  	
  %

  	
  1.25

  	
  %

  
	
  Level III
  Status

  	
   

  	
  1.00

  	
  %

  	
  1.25

  	
  %

  
	
  Level IV
  Status

  	
   

  	
  0.75

  	
  %

  	
  1.25

  	
  %

  

 

Notwithstanding
the foregoing, the term “Applicable ABR Margin” shall mean, with respect to
each ABR Loan, Cdn ABR Loan and Canadian Prime Loan that is a Tranche A Term
Loan, Tranche B Term Loan, Revolving Credit Loan or Swingline Loan, 1.50% per annum, during the period from and including the Closing
Date to but excluding the Initial Financial Statement Delivery Date.

 

“Applicable
Amount” shall mean on any date (the “Reference Date”) (A) the
sum of, without duplication, (i) (x) for purposes of Sections 10.5(g), (h)
and (i), $100,000,000 and (y) for purposes of Section 10.6(c) and Section
10.7(a), $50,000,000 and (ii) 50% of Cumulative Consolidated Net Income
Available to Stockholders (calculated after giving pro forma effect to any
Investment or dividend or prepayment, repurchase or redemption actually made pursuant
to Section 10.5(g), 10.5(h), 10.5(i), 10.6(c) or 10.7(a)), provided
that, in the case of Section 10.6(c) and 10.7(a) only, the amount in clause
(ii) shall only be available if the Consolidated Total Debt to Consolidated
EBITDA Ratio of Borrower for the Test Period most recently ended is less than
4.50:1.00, determined on a pro forma basis after giving effect to any dividend
or prepayment, repurchase or redemption actually made pursuant to
Sections 10.6(c) or 10.7(a), plus (B) the amount of any capital
contributions (for greater certainty, other than the Equity Contribution) made
in cash to the Borrower from and including the Business Day immediately following
the Closing Date through and including the Reference Date, including
contributions with proceeds from the issuance of equity securities of Holdings
or Parent, in each case to the extent such proceeds shall have been actually
received by the Borrower through the capital contribution of such proceeds to
the Borrower, minus (C) the sum at the time of determination of
(i) the aggregate amount of Investments made since the Closing Date
pursuant to Section 10.5(g), 10.5(h) or 10.5(i), (ii) the aggregate
amount of dividends made since the Closing Date pursuant to Section 10.6(c) and
(iii) the aggregate amount of prepayments, repurchases and redemptions made
since the Closing Date pursuant to Section 10.7(a).

 

“Applicable
LIBOR Margin” shall mean at any date, with respect to each LIBOR Loan that
is a Tranche A Term Loan, a Tranche B Term Loan or a Revolving Credit
Loan, the applicable percentage per annum set
forth below based upon the Status in effect on such date:

 

5

 

	
  Status

  	
   

  	
  Applicable LIBOR Margin for

  Tranche A Term Loans

  and Revolving Credit Loans

  	
   

  	
  Applicable LIBOR Margin

  for Tranche B Term Loans

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level I
  Status

  	
   

  	
  2.50

  	
  %

  	
  2.50

  	
  %

  
	
  Level II
  Status

  	
   

  	
  2.25

  	
  %

  	
  2.25

  	
  %

  
	
  Level III
  Status

  	
   

  	
  2.00

  	
  %

  	
  2.25

  	
  %

  
	
  Level IV
  Status

  	
   

  	
  1.75

  	
  %

  	
  2.25

  	
  %

  

 

Notwithstanding
the foregoing, the term “Applicable LIBOR Margin” shall mean, with respect to
each LIBOR Loan that is a Tranche A Term Loan, a Tranche B Term Loan or a
Revolving Credit Loan, 2.50% per annum,
during the period from and including the Closing Date to but excluding the
Initial Financial Statement Delivery Date.

 

“Applicable Stamping Fee” shall
mean, with respect to each accepted or advanced BA Loan by a Lender on any
date, the applicable percentage per annum set forth below based on the Status
in effect on such date:

 

	
  Status

  	
   

  	
  Applicable Stamping Fee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Level I
  Status

  	
   

  	
  2.50

  	
  %

  
	
  Level II Status

  	
   

  	
  2.25

  	
  %

  
	
  Level III
  Status

  	
   

  	
  2.00

  	
  %

  
	
  Level IV
  Status

  	
   

  	
  1.75

  	
  %

  

 

Notwithstanding
the foregoing, the term “Applicable Stamping Fee” shall mean 2.50% per annum
during the period from and including the Closing Date to but excluding the
Initial Financial Statement Delivery Date.

 

“Approved
Fund” shall have the meaning provided in Section 13.6.

 

“Arcade”
shall mean AKI, Inc., a Delaware corporation and a wholly owned subsidiary of
Arcade Holdings.

 

“Arcade
Holdings” shall mean AHC I Acquisition Corp., a Delaware corporation.

 

“Arcade
Holdings Note Repayment” shall mean the repayment by Arcade Holdings on the
Closing Date of all outstanding principal of, and accrued and unpaid interest
to the date of such repayment on, the Existing Arcade Holdings PIK Notes.

 

“Arcade
Merger” shall mean the merger pursuant to and in accordance with the Arcade
Merger Agreement of Arcade Merger Sub with and into Arcade Holdings, with
Arcade Holdings continuing as the surviving corporation, each share of common
stock of Arcade Holdings being canceled with no consideration being issued therefor
and the outstanding shares

 

6

 

of preferred
stock of Arcade Holdings being converted into the right to receive the Arcade
Merger Consideration.

 

“Arcade
Merger Agreement” shall mean the Agreement and Plan of Merger dated as of
July 21, 2004, among Fusion, Arcade Merger Sub and Arcade Holdings.

 

“Arcade
Merger Consideration” shall mean $250,000,000 in cash.

 

“Arcade
Merger Sub” shall mean AHC Merger, Inc., a Delaware corporation and a
wholly owned subsidiary of Fusion.

 

“Arcade
Perfection Certificate” shall mean a certificate of Arcade in the form of Exhibit
F or any other form approved by the Administrative Agent.

 

“Asset Sale
Prepayment Event” shall mean any sale, transfer or other disposition of any
business unit, asset or other property of the Borrower or any of the Restricted
Subsidiaries not in the ordinary course of business (including any sale,
transfer or other disposition of any capital stock of any Subsidiary of the
Borrower owned by the Borrower or a Restricted Subsidiary, including any sale
or issuance of any capital stock of any Restricted Subsidiary).  Notwithstanding the foregoing, the term “Asset
Sale Prepayment Event” shall not include any transaction permitted by
Section 10.4, other than transactions permitted by Sections 10.4(b) and
(e).

 

“Assignment
and Acceptance” shall mean an assignment and acceptance substantially in
the form of Exhibit A.

 

“Authorized
Officer” shall mean the Chairman of the Board, the President, the Chief
Financial Officer, the Treasurer or any other senior officer of the Borrower
designated as such in writing to the Administrative Agent by the Borrower.

 

“Available
Canadian Commitment” shall mean an amount equal to the excess, if any, of
(a) the Dollar Equivalent of the amount of the Canadian Total Revolving
Credit Commitment over (b) the Dollar Equivalent of the sum of
(i) the aggregate principal amount of all Canadian Revolving Credit Loans
then outstanding and (ii) the aggregate Canadian Letters of Credit
Outstanding at such time.

 

“Available
Tranche B Term Loan Commitment” shall mean an amount equal to the excess,
if any, of (a) the aggregate amount of the Tranche B Term Loan Commitments over
(b) the aggregate principal amount of all Tranche B Term Loans then
outstanding.

 

“Available
US Commitment” shall mean an amount equal to the excess, if any, of
(a) the amount of the US Total Revolving Credit Commitment over
(b) the sum of (i) the aggregate principal amount of all US Revolving
Credit Loans (but not Swingline Loans) then outstanding and (ii) the
aggregate US Letters of Credit Outstanding at such time.

 

7

 

“BA
Discount Proceeds” shall mean, with respect to any BA Loan, an amount
calculated on the date of acceptance and purchase or advance of such BA Loan by
multiplying (a) the face or principal amount of such BA Loan by (b) the
quotient of one divided by the sum of one plus the product of (i) the BA
Discount Rate applicable to such BA Loan multiplied by (ii) a fraction, the
numerator of which is the term of such BA Loan measured in days (commencing on
the date of acceptance and purchase or advance and ending on, but excluding,
the maturity date thereof) and the denominator of which is 365; with such
quotient being rounded up or down to the nearest fifth decimal place, with
..000005 being rounded up.

 

“BA
Discount Rate” shall mean:

 

(a) with
respect to an issue of Bankers’ Acceptances to be accepted by a Schedule I Lender
hereunder, the CDOR Rate at or about 10:00 a.m. (Toronto time) on the date
of issuance and acceptance of such Bankers’ Acceptances for bankers’
acceptances having a comparable face value and an identical maturity date to
the face value and maturity date of such Bankers’ Acceptances; and

 

(b) with
respect to an issue of Bankers’ Acceptances or a BA Equivalent Loan to be
accepted or advanced by another Canadian Lender hereunder, the lesser of:

 

(i) the
rate determined by the Canadian Administrative Agent as being the arithmetic
average (rounded upwards to the nearest multiple of 0.01%) of the discount
rates, calculated on the basis of a year of 365 days, of the Schedule II/III
Reference Lenders determined in accordance with their normal practices at or about
10:00 a.m. (Toronto time) on the date of issue and acceptance of such
Bankers’ Acceptances or advance of such BA Equivalent Loan for bankers’
acceptances having a comparable face amount and an identical maturity date to
the face or principal amount and maturity date of such Bankers’ Acceptances or
BA Equivalent Loan; and

 

(ii) the
rate established in (a) above plus 0.10% per annum.

 

“BA Equivalent Loans” shall
mean, in relation to a Loan by way of BA Loans, an advance in Canadian Dollars
made by a Non-Acceptance Lender pursuant to Section 2.14(i).

 

“BA Loans” shall mean the
acceptance and purchase of Bankers’ Acceptances and BA Equivalent Loans; provided
that reference to the amount or principal amount of a BA Loan shall mean the
full face amount of the applicable Bankers’ Acceptances or Discount Notes
issued in connection therewith.

 

“Bankers’ Acceptance” shall mean a
Draft denominated in Canadian Dollars drawn by the Canadian Borrower and
accepted and purchased by a Canadian Lender as provided in Section 2.14
and includes a depository bill issued in accordance with the Depository Bills and Notes Act (Canada).

 

“Bankruptcy
Code” shall have the meaning provided in Section 11.5.

 

8

 

“Board”
shall mean the Board of Governors of the Federal Reserve System of the United
States (or any successor).

 

“Borrower”
shall have the meaning provided in the preamble to this Agreement.

 

“Borrowing”
shall mean and include (a) the incurrence of Swingline Loans from the Swingline
Lender on a given date, (b) the incurrence of one Type of Term Loan on the
Closing Date or the Delayed Draw Date (or resulting from conversions on a given
date after the Closing Date or the Delayed Draw Date) having, in the case of
LIBOR Term Loans, the same Interest Period (provided that ABR Loans
incurred pursuant to Section 2.10(b) shall be considered part of any
related Borrowing of LIBOR Term Loans) and (c) the incurrence of one Type
of Revolving Credit Loan on a given date (or resulting from conversions on a
given date) having, in the case of LIBOR Revolving Credit Loans or BA Loans,
the same Interest Period (provided that ABR Loans, Cdn ABR Loans or
Canadian Prime Loans incurred pursuant to Section 2.10(b) or 2.10(c) shall
be considered part of any related Borrowing of LIBOR Revolving Credit Loans or
BA Loans, as the case may be).

 

“Business
Day” shall mean any day excluding Saturday, Sunday and any day that shall
be in The City of New York or Toronto, Canada a legal holiday or a day on which
banking institutions are authorized by law or other governmental actions to
close; provided, however, that when used in connection with a
LIBOR Loan, the term “Business Day” shall also exclude any day on which banks
are not open for dealings in dollar deposits in the London interbank market.

 

“Canadian
Administrative Agent” shall mean Credit Suisse First Boston Toronto Branch,
an authorized foreign bank under the Bank
Act (Canada), as the Canadian administrative agent for the Lenders
under this Agreement and the other Credit Documents, together with any of its
permitted successors appointed pursuant to Section 12.

 

“Canadian
Benefit Plans” shall mean all material employee benefit plans, programs,
policies, practices or other arrangements of any nature or kind whatsoever that
are not Canadian Pension Plans and are maintained or contributed to by any
Credit Party, or under which any Credit Party has any liability or contingent
liability, in relation to employees or former employees that it may have in
Canada.

 

“Canadian
Borrower” shall have the meaning provided in the preamble to this Agreement.

 

“Canadian
Borrowing” shall mean a Borrowing by the Canadian Borrower.

 

“Canadian
Dollar Borrowing” shall mean a Borrowing denominated in Canadian Dollars.

 

“Canadian
Dollars” and “C$” shall mean the lawful money of Canada.

 

“Canadian
Guarantee” shall mean the Canadian Guarantee, made by the Borrower,
Holdings, the US Subsidiary Guarantors and the Canadian Subsidiary Guarantors

 

9

 

party thereto
in favor of the Canadian Administrative Agent for the ratable benefit of the
Canadian Lenders, substantially in the form of Exhibit B-2, as the same
may be amended, supplemented or otherwise modified from time to time.

 

“Canadian
L/C Fronting Fee” shall have the meaning provided in Section 4.1(e).

 

“Canadian
Lenders” shall mean each Lender that has a Canadian Revolving Credit Commitment
or that holds Canadian Revolving Credit Loans; provided that (a) as of
the Closing Date, any such Lender shall be a Canadian Resident and (b) as of
the Closing Date, the relevant Canadian Lender or its Related Affiliate, if
any, shall also be a “United States person” as contemplated by Section
2.1(b)(ii).

 

“Canadian
Letter of Credit” shall have the meaning provided in Section 3.1(a).

 

“Canadian
Letter of Credit Commitment” shall mean $20,000,000, as the same may be reduced
from time to time pursuant to Section 3.1(c).

 

“Canadian
Letter of Credit Exposure” shall mean, with respect to any Canadian Lender,
at any time, the sum of (a) the Dollar Equivalent of the amount of any Unpaid
Drawings in respect of which such Canadian Lender has made (or is required to
have made) payments to the Canadian Letter of Credit Issuer pursuant to Section
3.4(a) at such time and (b) the Dollar Equivalent of such Canadian Lender’s
Canadian Revolving Credit Commitment Percentage of the Canadian Letters of
Credit Outstanding at such time (excluding the portion thereof consisting of
Unpaid Drawings in respect of which the Canadian Lenders have made (or are
required to have made) payments to the Canadian Letter of Credit Issuer
pursuant to Section 3.4(a)).

 

“Canadian
Letter of Credit Fee” shall have the meaning provided in Section 4.1(d).

 

“Canadian
Letter of Credit Issuer” shall mean Credit Suisse First Boston Toronto
Branch or any successor pursuant to Section 3.6.  The Canadian Letter of Credit Issuer may, in
its discretion, arrange for one or more Canadian Letters of Credit to be issued
by one or more Affiliates of the Canadian Letter of Credit Issuer each of which
is a Canadian Resident, and in each such case the term “Canadian Letter of
Credit Issuer” shall include any such Affiliate with respect to Canadian
Letters of Credit issued by such Affiliate. 
In the event that there is more than one Canadian Letter of Credit
Issuer at any time, references herein and in the other Credit Documents to the
Canadian Letter of Credit Issuer shall be deemed to refer to the Canadian
Letter of Credit Issuer in respect of the applicable Canadian Letter of Credit
or to all Canadian Letter of Credit Issuers, as the context requires.

 

“Canadian
Letters of Credit Outstanding” shall mean, at any time, the sum of, without
duplication, (a) the aggregate Stated Amount of outstanding Canadian Letters of
Credit and (b) the aggregate amount of all Unpaid Drawings in respect all
Canadian Letters of Credit.

 

“Canadian
Letter of Credit Request” shall have the meaning provided in
Section 3.2.

 

10

 

“Canadian
Obligations” shall have the meaning assigned to such term in the Canadian
Security Agreement.

 

“Canadian
Pension Plans” shall mean each plan which is a registered pension plan for
the purposes of the Tax Act established, maintained or contributed to by any
Credit Party, or under which any Credit Party has any liability or contingent
liability, in relation to any employees or former employees that it may have in
Canada.

 

“Canadian
Pledge Agreement” shall mean the Canadian Pledge Agreement entered into by
the Canadian Borrower, certain Subsidiaries of the Canadian Borrower and the
Canadian Administrative Agent, for the ratable benefit of the Canadian Lenders,
substantially in the form of Exhibit C-4, as the same may be amended,
supplemented or otherwise modified from time to time.

 

“Canadian
Prime Loan” shall mean any Loan bearing interest at a rate determined by
reference to the Canadian Prime Rate.

 

“Canadian
Prime Rate” shall mean the higher of (a) the rate of interest per annum determined from time to time by the Canadian Administrative
Agent as being its reference rate then in effect for determining interest rates
on C$ denominated commercial loans made in Canada, and (b) the one-month CDOR
Rate plus 1% per annum.

 

“Canadian
Resident” shall mean, at any time, a Person who at that time is (a) not a
non-resident of Canada for purposes of the Tax Act or (b) an authorized foreign
bank deemed to be resident in Canada for purposes of the Tax Act in respect of
all amounts paid or credited to such Person under the Canadian Revolving Credit
Commitment or Canadian Letter of Credit Commitment pursuant to this Agreement.

 

“Canadian
Revolving Credit Commitment” shall mean, (a) with respect to each Lender
that is a Lender on the date hereof, the amount set forth opposite such Lender’s
name on Schedule 1.1(c) as such Lender’s “Canadian Revolving Credit
Commitment” and (b) in the case of any Lender that becomes a Lender after
the date hereof, the amount specified as such Lender’s “Canadian Revolving
Credit Commitment” in the Assignment and Acceptance pursuant to which such
Lender assumed a portion of the Canadian Total Revolving Credit Commitment, in
each case as the same may be changed from time to time pursuant to the terms
hereof.  The Canadian Total Revolving
Credit Commitment as of the Closing Date is $20,000,000.

 

“Canadian
Revolving Credit Commitment Percentage” shall mean at any time, for each
Canadian Lender, the percentage obtained by dividing (a) such Lender’s
Canadian Revolving Credit Commitment by (b) the Canadian Total Revolving Credit
Commitment, provided that at any time when the Canadian Total Revolving
Credit Commitment shall have been terminated, each Canadian Lender’s Canadian Revolving
Credit Commitment Percentage shall be its Canadian Revolving Credit Commitment
Percentage as in effect immediately prior to such termination.

 

11

 

“Canadian
Revolving Credit Exposure” shall mean, with respect to any Canadian Lender
at any time, the sum of (a) the aggregate principal amount of the Dollar
Equivalent of the Canadian Revolving Credit Loans of such Lender then
outstanding, and (b) such Lender’s Canadian Letter of Credit Exposure at such
time.

 

“Canadian
Revolving Credit Loan” shall have the meaning provided in Section 2.1(b)(ii).

 

“Canadian
Security Agreement” shall mean the Canadian Security Agreement entered into
by the Canadian Borrower and the Canadian Administrative Agent for the ratable
benefit of the Canadian Lenders and the other Canadian Secured Parties (as
defined therein), substantially in the form of Exhibit C-2, as the
same may be amended, supplemented or otherwise modified from time to time.

 

“Canadian
Security Documents” shall mean, collectively, (a) the Canadian
Guarantee, (b) the Canadian Security Agreement, (c) the Canadian Pledge
Agreement (if entered into as contemplated hereby), (d) any Mortgage over
Mortgaged Property of the Canadian Borrower and (e) any security document
entered into by the Canadian Borrower or a Subsidiary of the Canadian Borrower
pursuant to Section 9.11, 9.12 or 9.15.

 

“Canadian
Subsidiary Guarantors” shall mean each Subsidiary of the Canadian Borrower
that becomes a party to the Canadian Guarantee after the Closing Date pursuant
to Section 9.11 or otherwise.

 

“Canadian
Total Revolving Credit Commitment” shall mean the sum of the Canadian Revolving
Credit Commitments of all the Lenders.

 

“Capital
Expenditures” shall mean, for any period, the aggregate of all expenditures
(whether paid in cash or accrued as liabilities and including in all events all
amounts expended or capitalized under Capital Leases, but excluding any amount
representing capitalized interest) by the Borrower and the Restricted
Subsidiaries during such period that, in conformity with GAAP, are or are
required to be included as additions during such period to property, plant or
equipment reflected in the consolidated balance sheet of the Borrower and its
Subsidiaries, provided that the term “Capital Expenditures” shall not
include (a) expenditures made in connection with the replacement,
substitution, restoration or repair of assets (i) to the extent financed
from insurance proceeds paid on account of the loss of or damage to the assets
being replaced, restored or repaired or (ii) with awards of compensation
arising from the taking by eminent domain or condemnation of the assets being
replaced, (b) the purchase price of equipment that is purchased simultaneously
with the trade-in of existing equipment to the extent that the gross amount of
such purchase price is reduced by the credit granted by the seller of such
equipment for the equipment being traded in at such time, (c) the purchase
of plant, property or equipment made within two years of the sale of any asset
to the extent purchased with the proceeds of such sale or (d) expenditures
that constitute any part of Consolidated Lease Expense.

 

12

 

“Capital
Lease” shall mean, as applied to any Person, any lease of any property
(whether real, personal or mixed) by that Person as lessee that, in conformity
with GAAP, is, or is required to be, accounted for as a capital lease on the
balance sheet of that Person.

 

“Capitalized
Lease Obligations” shall mean, as applied to any Person, all obligations
under Capital Leases of such Person or any of its Subsidiaries, in each case
taken at the amount thereof accounted for as liabilities in accordance with
GAAP.

 

“Casualty
Event” shall mean, with respect to any property of any Person, any loss of
or damage to, or any condemnation or other taking by a Governmental Authority
of, such property for which such Person or any of its Restricted Subsidiaries
receives insurance proceeds, or proceeds of a condemnation award or other
compensation.

 

“Cdn ABR”
shall mean, for any day, a rate per annum equal
to the higher of (a) the rate of interest per annum determined from time to
time by the Canadian Administrative Agent as its reference rate of interest
then in effect for determining interest rates on commercial loans denominated
in Dollars made by it in Canada and (b) the Federal Funds Effective Rate in
effect on such day plus 1⁄2 of 1%.

 

“Cdn ABR
Loans” shall mean any Loan bearing interest at a rate determined by
reference to the Cdn ABR.

 

“Cdn L/C Participants”
shall have the meaning provided in Section 3.3(b).

 

“Cdn L/C
Participation” shall have the meaning provided in Section 3.3(b).

 

“CDOR Rate” shall mean, as of any
day with respect to a BA Loan and the Interest Period selected by the
Canadian Borrower for such BA Loan, or otherwise as applicable, the
average interest rate equal to:

 

(a) the
average of the annual rates for Canadian Dollar bankers acceptances for a term
equal to such Interest Period (or a term as closely possible comparable to such
Interest Period) or such other specified period quoted (at approximately
10:00 a.m. Toronto time on such day) on the Reuters Monitor Money Rates
Service, CDOR page “Canadian Interbank Bid BA Rates”; and

 

(b) if
such rate is not available on such day, the rate for such date will be the
annual discount rate (rounded upward to the nearest whole multiple of 1/100 of
1%) as of 10:00 a.m. (Toronto time) on such day at which the Canadian
Administrative Agent is then offering to purchase Canadian Dollar bankers
acceptances for a term approximately equal to such Interest Period (or a term
as closely possible comparable to such Interest Period), or such other
specified period, accepted by it.

 

“Change in
Law” shall mean (a) the adoption of any law, treaty, order, policy,
rule or regulation after the date of this Agreement, (b) any change in any
law, treaty, order, policy, rule or regulation or in the interpretation or
application thereof by any Governmental

 

13

 

Authority
after the date of this Agreement or (c) compliance by the Lender with any
guideline, request or directive issued or made after the date hereof by any
central bank or other governmental or quasi-governmental authority (whether or
not having the force of law).

 

“Change of
Control” shall mean and be deemed to have occurred if (a) (i) the
Sponsor and the Management Investors shall at any time not own, in the
aggregate, directly or indirectly, beneficially and of record, at least 35% of
the voting power of the outstanding Voting Stock of the Borrower (other than as
the result of one or more widely distributed offerings of Holdings’ or Parent’s
common stock, in each case whether by Parent, Holdings, the Sponsor or
Management Investors) and/or (ii) any person, entity or “group” (within
the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934,
as amended) shall at any time have acquired direct or indirect beneficial
ownership of a percentage of the voting power of the outstanding Voting Stock
of the Borrower that exceeds the percentage of the voting power of such Voting
Stock then beneficially owned, in the aggregate, by the Sponsor and the
Management Investors, unless, in the case of either clause (i) or (ii)
above, the Sponsor and the Management Investors have, at such time, the right
or the ability by voting power, contract or otherwise to elect or designate for
election at least a majority of the Board of Directors of the Borrower; and/or
(b) at any time Continuing Directors shall not constitute at least a
majority of the Board of Directors of the Borrower; and/or (c) at any time,
Holdings shall cease to directly own, beneficially and of record, 100% of the
issued and outstanding equity interests of the Borrower; and/or (d) a Change of
Control (as defined in the Senior Subordinated Notes Indenture) shall have occurred.

 

“Class”,
when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are US Revolving Credit Loans, Canadian
Revolving Credit Loans, Tranche A Term Loans, Tranche B Term Loans, New Tranche
B Term Loans (of each Series) or Swingline Loans and, when used in reference to
any Commitment, refers to whether such Commitment is a US Revolving Credit
Commitment, a Canadian Revolving Credit Commitment, a Tranche A Term Loan
Commitment, a Tranche B Term Loan Commitment or a New Tranche B Term Loan Commitment.

 

“Closing
Date” shall mean the date of the initial Borrowing hereunder.

 

“Closing
Date Other Tender Procedures” shall mean (a) with respect to all Existing
Opco Notes validly tendered (and not withdrawn) pursuant to the Tender Offers
as of the Closing Date, each of Jostens, Von Hoffmann, Von Hoffmann Holdings
and Arcade, as applicable, shall have issued an irrevocable notice of
acceptance for purchase of all such Existing Opco Notes at a price reasonably
satisfactory to the Administrative Agent, and (b) with respect to all Existing
Opco Notes (other than the Specified Existing Opco Notes) not so tendered
pursuant to the Tender Offers, each of Jostens, Von Hoffmann, Von Hoffman
Holdings and Arcade, as applicable, shall have issued an irrevocable notice of
redemption of such Existing Opco Notes in accordance with the terms of the
applicable indenture governing such Existing Opco Notes and applicable law.

 

14

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated and rulings issued thereunder.  Section references to the Code are to the
Code, as in effect at the date of this Agreement, and any subsequent provisions
of the Code, amendatory thereof, supplemental thereto or substituted therefor.

 

“Collateral”
shall have the meaning provided in the Security Agreements or any Mortgage, as
applicable.

 

“Collateral
Agent” shall have the meaning provided in the Security Agreements or any
Mortgage, as applicable.

 

“Color
Prelude Acquisition” shall mean the acquisition of Color Prelude, Inc. by
IST, Corp. on December 18, 2001.

 

“Commitment
Fee Rate” shall mean, with respect to the Available US Commitment, the Available
Canadian Commitment and the Available Tranche B Term Loan Commitment on any
day, the rate per annum set forth below
opposite the Status in effect on such day:

 

	
  Status

  	
   

  	
  Commitment Fee Rate

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Level I
  Status

  	
   

  	
  0.50

  	
  %

  
	
  Level II
  Status

  	
   

  	
  0.50

  	
  %

  
	
  Level III
  Status

  	
   

  	
  0.375

  	
  %

  
	
  Level IV
  Status

  	
   

  	
  0.375

  	
  %

  

 

Notwithstanding
the foregoing, the term “Commitment Fee Rate” shall mean 0.50%, during the
period from and including the Closing Date to but excluding the Initial
Financial Statement Delivery Date.

 

“Commitments”
shall mean, with respect to each Lender, such Lender’s Term Loan Commitment, US
Revolving Credit Commitment, Canadian Revolving Credit Commitment or New
Tranche B Term Loan Commitment.

 

“Confidential
Information” shall have the meaning provided in Section 13.16.

 

“Confidential
Information Memorandum” shall mean the Confidential Information Memorandum
of the Borrower dated September 2004, delivered to the Lenders in connection
with this Agreement.

 

“Consent
Solicitations” shall mean the solicitation of consents from the holders of
the Existing Opco Notes to amend the respective indentures governing the
Existing Opco Notes to eliminate the significant restrictive covenants and
certain default provisions contained therein, to be effected by each of Jostens,
Von Hoffmann and Arcade, as applicable, concurrently with the Tender Offers.

 

15

 

“Consolidated
Earnings” shall mean, for any period, “income (loss) before the deduction
of income taxes” of the Borrower and the Restricted Subsidiaries, excluding (a)
extraordinary items for such period, determined in a manner consistent with the
manner in which such amount was determined in accordance with the audited
financial statements referred to in Section 9.1(a) and (b) the cumulative
effect of a change in accounting principles during such period.

 

“Consolidated
EBITDA” shall mean, for any period, the sum, without duplication, of the
amounts for such period of:

 

(a) Consolidated
Earnings plus

 

(b) to the
extent (and in the same proportion after giving effect to the exclusion in
clause (ii) in the proviso to this definition) already deducted in arriving at
Consolidated Earnings, the following:

 

(i)                                     interest
expense as used in determining such Consolidated Earnings,

 

(ii)                                  depreciation
expense,

 

(iii)                               amortization
expense,

 

(iv)                              extraordinary
losses and unusual or non-recurring charges (including severance, relocation
costs and one-time compensation charges),

 

(v)                                 non-cash
charges (provided that if any such non-cash charges represent an accrual or
reserve for potential cash items in any future period, the cash payment in
respect thereof in such future period shall be subtracted from Consolidated
EBITDA to such extent, and excluding amortization of a prepaid cash item that was
paid in a prior period),

 

(vi)                              losses
on asset sales,

 

(vii)                           restructuring
charges or reserves (including costs related to acquisitions after the date
hereof and to closure/consolidation of facilities),

 

(viii)                        in the
case of any period that includes a period ending prior to or during the fiscal
year ending December 31, 2005, Transaction Expenses,

 

(ix)                                any
expenses or charges incurred in connection with any issuance of debt, equity
securities or any refinancing transaction or any amendment or other modification
of any debt instrument,

 

16

 

(x)                                   any
fees and expenses related to Permitted Acquisitions,

 

(xi)                                any
deductions attributable to minority interests,

 

(xii)                             the
amount of management, monitoring, consulting and advisory fees and related
expenses paid to the Sponsors,

 

(xiii)                          any
impairment charge or asset write-off pursuant to Financial Accounting Standards
Board Statement No. 142 or No. 144 and the amortization of intangibles arising
pursuant to No. 141,

 

(xiv)                         other
unusual gains or expenses (as determined by management of the Borrower)
incurred prior to the Closing Date consisting of (w) Transaction Expenses
(including management retention bonuses and fees and expenses relating to such
Transactions), (x) fees and expenses associated with acquisitions not
consummated, (y) non-cash charges associated with stock-based compensation and
(z) write-off of other property and equipment,

 

(xv)                            foreign
withholding taxes paid or accrued in such period,

 

(xvi)                         non-cash
charges related to stock compensation expense,

 

(xvii)                      expenses
consisting of internal software development costs that are expensed during the
period but could have been capitalized under alternative accounting policies in
accordance with GAAP,

 

(xviii)                   costs of surety
bonds incurred during such period in connection with financing activities, and

 

(xix)                           loss
from the early extinguishment of Indebtedness or hedging obligations or other
derivative instruments;

 

less to the extent included in arriving at Consolidated
Earnings, the sum of the following amounts for such period of:

 

(a) extraordinary
gains and non-recurring gains,

 

(b) non-cash
gains (excluding any such non-cash gain to the extent it represents the
reversal of an accrual or reserve for potential cash item in any prior period),

 

(c) gains
on asset sales, and

 

(d) any net
after-tax income from the early extinguishment of Indebtedness or hedging obligations
on other derivative instruments,

 

17

 

in each case,
as determined on a consolidated basis for the Borrower and the Restricted
Subsidiaries in accordance with GAAP, provided that

 

(i) except
as provided in clause (iv) below, there shall be excluded from Consolidated
Earnings for any period the income from continuing operations before income
taxes and extraordinary items of all Unrestricted Subsidiaries for such period
to the extent otherwise included in Consolidated Earnings, except to the extent
actually received in cash by the Borrower or its Restricted Subsidiaries during
such period through dividends or other distributions,

 

(ii) there
shall be excluded from Consolidated Earnings for any period the income from
continuing operations before income taxes and extraordinary items of each Joint
Venture for such period corresponding to the percentage of capital stock or
other equity interests in such Joint Venture not owned by the Borrower or its
Restricted Subsidiaries,

 

(iii) there
shall be excluded in determining Consolidated EBITDA non-operating currency
transaction gains and losses (including the net loss or gain resulting from
Hedge Agreements for currency exchange risk),

 

(iv) (x) there shall be included in determining
Consolidated EBITDA for any period (A) the Acquired EBITDA of any Person,
property, business or asset (other than an Unrestricted Subsidiary) acquired to
the extent not subsequently sold, transferred or otherwise disposed of (but not
including the Acquired EBITDA of any related Person, property, business or
assets to the extent not so acquired) by the Borrower or any Restricted
Subsidiary during such period (each such Person, property, business or asset acquired
and not subsequently so disposed of, an “Acquired Entity or Business”),
and the Acquired EBITDA of any Unrestricted Subsidiary that is converted into a
Restricted Subsidiary during such period (each, a “Converted Restricted
Subsidiary”), in each case based on the actual Acquired EBITDA of such
Acquired Entity or Business or Converted Restricted Subsidiary for such period
(including the portion thereof occurring prior to such acquisition or
conversion) and (B) for the purposes of the definition of the term “Permitted
Acquisition” and Sections 10.3, 10.9 and 10.10, an adjustment in respect
of each Acquired Entity or Business equal to the amount of the Pro Forma
Adjustment with respect to such Acquired Entity or Business for such period (including
the portion thereof occurring prior to such acquisition or conversion) as
specified in the Pro Forma Adjustment Certificate delivered to the Lenders and
the Administrative Agent and (y) for purposes of determining the Consolidated
Total Debt to Consolidated EBITDA Ratio only, there shall be excluded in
determining Consolidated EBITDA for any period the Disposed EBITDA of any
Person, property, business or asset (other than an Unrestricted Subsidiary)
sold, transferred or otherwise disposed of, closed or classified as discontinued
operations by the Borrower or any Restricted Subsidiary during such period
(each such Person, property, business or asset so sold or disposed of, a “Sold
Entity or Business”), and the Disposed EBITDA of any Restricted Subsidiary
that is converted into an Unrestricted Subsidiary during such period (each, a “Converted
Unrestricted Subsidiary”), in each case based on the actual Disposed EBITDA
of such Sold Entity or Business or Converted Unrestricted Subsidiary for such
period (including the portion thereof occurring prior to such sale, transfer,
disposition or conversion) and

 

18

 

(v) there
shall be excluded from Consolidated Earnings and the determination of
Consolidated EBITDA for any period the effects of adjustments in component
amounts required or permitted by the Financial Accounting Standards Board
Statements of Financial Accounting Standards Nos. 141 and 142 and related
authoritative pronouncements, as a result of the Transactions, any acquisition
consummated prior to the Closing Date or Permitted Acquisitions or the amortization
or write-off of any amounts in connection with any thereof and related
financings of any thereof.

 

Notwithstanding anything to the contrary contained
herein, (a) Consolidated EBITDA shall be deemed to be $148,200,000 for the
second fiscal quarter of the 2004 fiscal year (which amount gives effect to the
Historical Adjustments) and (b) for any period ending prior to one year after
the end of the first fiscal quarter ending after the Closing Date, pro forma
adjustments may be made to Consolidated EBITDA to give effect to the
Transactions and related projected net cost savings or additional net costs
consistent with the provisions set forth in the definition of the term “Pro
Forma Adjustment” as if such provisions were applicable thereto (provided
that any such pro forma increase to Consolidated EBITDA shall be without
duplication for net cost savings or additional net costs actually realized
during such period and already included in Consolidated EBITDA for any Test
Period during such period).

 

“Consolidated
EBITDA to Consolidated Interest Expense Ratio” shall mean, as of any date
of determination, the ratio of (a) Consolidated EBITDA for the relevant
Test Period to (b) Consolidated Interest Expense for such Test Period.

 

“Consolidated
Interest Expense” shall mean, for any period, the sum of (a) the cash
interest expense (including that attributable to Capital Leases in accordance
with GAAP), net of cash interest income, of the Borrower and the Restricted
Subsidiaries on a consolidated basis with respect to all outstanding
Indebtedness of the Borrower and the Restricted Subsidiaries, including all
commissions, discounts and other fees and charges owed with respect to letters
of credit and bankers’ acceptance financing and net costs under Hedge
Agreements (other than currency swap agreements, currency future or option
contracts and other similar agreements), but excluding, however, amortization
of deferred financing costs and any other amounts of non-cash interest, all as
calculated on a consolidated basis in accordance with GAAP, and (b) the
aggregate amount of all dividends or distributions made during such period
pursuant to Section 10.6(e), provided that (i) except as provided
in clause (ii) below, there shall be excluded from Consolidated Interest
Expense for any period the cash interest expense (or cash interest income) of
all Unrestricted Subsidiaries for such period to the extent otherwise included
in Consolidated Interest Expense and (ii) for purposes of the definition
of the term “Permitted Acquisition” and Sections 10.3, 10.9 and 10.10,
there shall be included in determining Consolidated Interest Expense for any
period the cash interest expense (or income) of any Acquired Entity or Business
acquired during such period and of any Converted Restricted Subsidiary
converted during such period, in each case based on the cash interest expense
(or income) of such Acquired Entity or Business or Converted Restricted
Subsidiary for such period (including the portion thereof occurring prior to
such acquisition or conversion) assuming any Indebtedness incurred or repaid in
connection with any such acquisition or conversion had been incurred or prepaid
on the first day of such period. Notwithstanding anything to the

 

19

 

contrary contained
herein, for purposes of determining Consolidated Interest Expense for any
period ending prior to the first anniversary of the Closing Date, Consolidated
Interest Expense shall be an amount equal to actual Consolidated Interest
Expense from the Closing Date through the date of determination multiplied by a
fraction the numerator of which is 365 and the denominator of which is the
number of days from the Closing Date through the date of determination.

 

“Consolidated
Lease Expense” shall mean, for any period, all rental expenses of the
Borrower and the Restricted Subsidiaries during such period under operating
leases for real or personal property (including in connection with Permitted
Sale Leasebacks), excluding real estate taxes, insurance costs and common area
maintenance charges and net of sublease income, other than (a) obligations
under vehicle leases entered into in the ordinary course of business, (b) all
such rental expenses associated with assets acquired pursuant to a Permitted Acquisition
to the extent that such rental expenses relate to operating leases in effect at
the time of (and immediately prior to) such acquisition and
(c) Capitalized Lease Obligations, all as determined on a consolidated
basis in accordance with GAAP, provided that there shall be excluded
from Consolidated Lease Expense for any period the rental expenses of all
Unrestricted Subsidiaries for such period to the extent otherwise included in
Consolidated Lease Expense.

 

“Consolidated
Net Income” shall mean, for any period, the consolidated net income (or loss)
after the deduction of income taxes of the Borrower and the Restricted Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

 

“Consolidated
Total Debt” shall mean, as of any date of determination, (a) the sum of (i)
all Indebtedness of the Borrower and the Restricted Subsidiaries for borrowed
money outstanding on such date and (ii) all Capitalized Lease Obligations
of the Borrower and the Restricted Subsidiaries outstanding on such date, all
calculated on a consolidated basis in accordance with GAAP, minus (b)
the aggregate amount of cash included in the cash accounts listed on the
consolidated balance sheet of the Borrower and the Restricted Subsidiaries as
at such date to the extent the use thereof for application to payment of Indebtedness
is not prohibited by law or any contract to which the Borrower or any of the Restricted
Subsidiaries is a party.

 

“Consolidated
Total Debt to Consolidated EBITDA Ratio” shall mean, as of any date of
determination, the ratio of (a) Consolidated Total Debt as of the last day
of the relevant Test Period to (b) Consolidated EBITDA for such Test
Period.

 

“Consolidated
Working Capital” shall mean, at any date, the excess of (a) the sum of all
amounts (other than cash, cash equivalents and bank overdrafts) that would, in
conformity with GAAP, be set forth opposite the caption “total current assets”
(or any like caption) on a consolidated balance sheet of the Borrower and the Restricted
Subsidiaries at such date over (b) the sum of all amounts that would, in
conformity with GAAP, be set forth opposite the caption “total current
liabilities” (or any like caption) on a consolidated balance sheet of the Borrower
and the Restricted Subsidiaries on such date, but excluding (i) the current
portion of any Funded Debt, (ii) without duplication of clause (i) above, all
Indebtedness consisting of Loans and Letter

 

20

 

of Credit
Exposure to the extent otherwise included therein and (iii) the current
portion of deferred income taxes.

 

“Continuing
Director” shall mean, at any date, an individual (a) who is a member
of the Board of Directors of the Borrower on the date hereof, (b) who, as
at such date, has been a member of such Board of Directors for at least the 12
preceding months, (c) who has been nominated to be a member of such Board
of Directors, directly or indirectly, by a Sponsor or Persons nominated by a
Sponsor or (d) who has been nominated to be a member of such Board of Directors
by a majority of the other Continuing Directors then in office.

 

“Contribution
Agreement” shall mean the Contribution Agreement dated as of July 21, 2004,
between Fusion and Parent, pursuant to which Fusion agreed to contribute all
the equity interests of each of Von Hoffmann Holdings and Arcade Holdings to
Parent immediately following consummation of the Merger in exchange for equity
interests in Parent.

 

“Converted
Restricted Subsidiary” shall have the meaning provided in the definition of
the term “Consolidated EBITDA”.

 

“Converted
Unrestricted Subsidiary” shall have the meaning provided in the definition
of the term “Consolidated EBITDA”.

 

“Co-Syndication
Agents” shall mean Deutsche Bank Securities Inc. and Banc of America
Securities LLC, together with their affiliates, as co-syndication agents under
this Agreement and the other Credit Documents.

 

“Credit
Documents” shall mean this Agreement, the Security Documents each Letter of
Credit, each Joinder Agreement and any promissory notes issued by the Borrower
hereunder.

 

“Credit
Event” shall mean and include the making (but not the conversion or continuation)
of a Loan and the issuance of a Letter of Credit.

 

“Credit
Party” shall mean each of Holdings, the Borrower, the Canadian Borrower,
the US Subsidiary Guarantors, the Canadian Subsidiary Guarantors, if any, and
each other Subsidiary of the Borrower that is a party to a Credit Document.

 

“Cumulative
Consolidated Net Income Available to Stockholders” shall mean, as of any
date of determination, Consolidated Net Income less cash dividends paid by the
Borrower with respect to its capital stock for the period (taken as one
accounting period) commencing on the Closing Date and ending on the last day of
the most recent fiscal quarter for which Section 9.1 Financials have been
delivered to the Lenders under Section 9.1.

 

“Debt
Incurrence Prepayment Event” shall mean any issuance or incurrence by
Holdings, the Borrower or any of the Restricted Subsidiaries of any
Indebtedness (including any issuance by the Borrower of Permitted Additional
Notes to the extent the Net Cash Proceeds are

 

21

 

not used to
finance a Permitted Acquisition but excluding any other Indebtedness permitted
to be issued or incurred under Section 10.1 other than Section
10.1(a)(xiv)).

 

“Default”
shall mean any event, act or condition that with notice or lapse of time, or
both, would constitute an Event of Default.

 

“Defaulting
Lender” shall mean any Lender with respect to which a Lender Default is in
effect.

 

“Delayed
Draw Date” shall mean a single date selected by the Borrower occurring
within 35 days after the Closing Date.

 

“Discount
Note” shall mean a non-interest-bearing promissory note or depository note
(within the meaning of the Depository Bills  and  Notes Act (Canada)) denominated in Canadian Dollars issued
by the Canadian Borrower to a Non-Acceptance Lender to evidence a
BA Equivalent Loan.

 

“Disposed
EBITDA” shall mean, with respect to any Sold Entity or Business or any
Converted Unrestricted Subsidiary (any of the foregoing, a “Pro Forma
Disposed Entity”) for any period, the amount for such period of
Consolidated EBITDA of such Pro Forma Disposed Entity (determined using such
definitions as if references to the Borrower and its Subsidiaries therein were
to such Pro Forma Disposed Entity and its Subsidiaries), all as determined on a
consolidated basis for such Pro Forma Disposed Entity in accordance with GAAP.

 

“dividends”
shall have the meaning provided in Section 10.6.

 

“DLJMB”
shall mean DLJ Merchant Banking Partners III, L.P., a Delaware limited
partnership.

 

“Documentation
Agent” shall mean General Electric Capital Corporation, together with its affiliates,
as the documentation agent for the Lenders under this Agreement and the other
Credit Documents.

 

“Dollar
Borrowing” shall mean a Borrowing denominated in Dollars.

 

“Dollars”
and “$” shall mean dollars in lawful currency of the United States of
America.

 

“Dollar
Equivalent” shall mean, on any date of determination, (a) with respect to
any amount denominated in Dollars, such amount, and (b) with respect to any
amount denominated in Canadian Dollars, the equivalent in Dollars of such
amount, determined by the Administrative Agent using the Exchange Rate.

 

22

 

“Domestic
Subsidiary” shall mean each Subsidiary of the Borrower that is organized
under the laws of the United States, any state or territory thereof, or
the District of Columbia.

 

“Draft”
shall have the meaning provided in Section 2.14(f).

 

“Drawing”
shall have the meaning provided in Section 3.4(b).

 

“Environmental
Claims” shall mean any and all actions, suits, orders, decrees, demands,
demand letters, claims, liens, notices of noncompliance, violation or potential
responsibility or investigation (other than internal reports prepared by the
Borrower or any of the Subsidiaries (a) in the ordinary course of such Person’s
business or (b) as required in connection with a financing transaction or an
acquisition or disposition of real estate) or proceedings relating in any way
to any Environmental Law or any permit issued, or any approval given, under any
such Environmental Law (hereinafter, “Claims”), including, without
limitation, (i) any and all Claims by governmental or regulatory authorities
for enforcement, cleanup, removal, response, remedial or other actions or
damages pursuant to any applicable Environmental Law and (ii) any and all
Claims by any third party seeking damages, contribution, indemnification, cost
recovery, compensation or injunctive relief relating to the presence, release
or threatened release of Hazardous Materials or arising from alleged injury or
threat of injury to health or safety (to the extent relating to human exposure
to Hazardous Materials), or the environment including, without limitation,
ambient air, surface water, groundwater, land surface and subsurface strata and
natural resources such as wetlands.

 

“Environmental
Law” shall mean any applicable Federal, state, foreign or local statute,
law, rule, regulation, ordinance, code and rule of common law now or hereafter
in effect and in each case as amended, and any binding judicial or
administrative interpretation thereof, including any binding judicial or
administrative order, consent decree or judgment relating to the protection of
environment, including, without limitation, ambient air, surface water, groundwater,
land surface and subsurface strata and natural resources such as wetlands, or
human health or safety (to the extent relating to human exposure to Hazardous
Materials), or Hazardous Materials.

 

“Equity
Contribution” shall have the meaning provided in the preamble to this
Agreement.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from
time to time.  Section references to
ERISA are to ERISA as in effect at the date of this Agreement and any
subsequent provisions of ERISA amendatory thereof, supplemental thereto or
substituted therefor.

 

“ERISA
Affiliate” shall mean each person (as defined in Section 3(9) of ERISA)
that together with the Borrower or a Subsidiary would be deemed to be a “single
employer” within the meaning of Section 414(b) or (c) of the Code or, solely
for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as
a single employer under Section 414 of the Code.

 

23

 

“Event of
Default” shall have the meaning provided in Section 11.

 

“Excess
Cash Flow” shall mean, for any period, an amount equal to the excess of (a)
the sum, without duplication, of (i) Consolidated Net Income for such period,
(ii) an amount equal to the amount of all non-cash charges to the extent
deducted in arriving at such Consolidated Net Income, (iii) decreases in
Consolidated Working Capital for such period and (iv) an amount equal to the
aggregate net non-cash loss on the sale, lease, transfer or other disposition
of assets by the Borrower and the Restricted Subsidiaries during such period
(other than sales in the ordinary course of business) to the extent deducted in
arriving at such Consolidated Net Income over (b) the sum, without
duplication, of (i) an amount equal to the amount of all non-cash credits
included in arriving at such Consolidated Net Income, (ii) the amount of
Capital Expenditures made in cash during such period pursuant to Section 10.11,
except to the extent that such Capital Expenditures were financed with the
proceeds of Indebtedness of the Borrower or its Restricted Subsidiaries, (iii)
the aggregate amount of all prepayments of Revolving Credit Loans and Swingline
Loans made during such period to the extent accompanying reductions of the US Total
Revolving Credit Commitments, except to the extent financed with the proceeds
of other Indebtedness of the Borrower or its Restricted Subsidiaries,
(iv) the aggregate amount of all principal payments of Indebtedness of the
Borrower or the Restricted Subsidiaries (including any Term Loans and the
principal component of payments in respect of Capitalized Lease Obligations but
excluding Revolving Credit Loans, Swingline Loans and voluntary prepayments of
Term Loans pursuant to Section 5.1) made during such period (other than in
respect of any revolving credit facility to the extent there is not an
equivalent permanent reduction in commitments thereunder), except to the extent
financed with the proceeds of other Indebtedness of the Borrower or its
Restricted Subsidiaries, (v) an amount equal to the aggregate net non-cash gain
on the sale, lease, transfer or other disposition of assets by the Borrower and
the Restricted Subsidiaries during such period (other than sales in the
ordinary course of business) to the extent included in arriving at such
Consolidated Net Income, (vi) increases in Consolidated Working Capital
for such period, (vii) payments by the Borrower and the Restricted Subsidiaries
during such period in respect of long-term liabilities of the Borrower and the
Restricted Subsidiaries other than Indebtedness, (viii) the amount of
Investments made during such period pursuant to Section 10.5 to the extent
that such Investments were financed with internally generated cash flow of the
Borrower and the Restricted Subsidiaries, (ix) the amount of dividends
paid during such period pursuant to clause (b) or (d) of the proviso to
Section 10.6 to the extent such dividends were financed with internally
generated cash flow of the Borrower and the Restricted Subsidiaries,
(x) the aggregate amount of expenditures actually made by the Borrower and
the Restricted Subsidiaries in cash during such period (including expenditures
for the payment of financing fees) to the extent that such expenditures are not
expensed during such period and (xi) the aggregate amount of any premium,
make-whole or penalty payments actually paid in cash by the Borrower and the
Restricted Subsidiaries during such period that are required to be made in
connection with any prepayment of Indebtedness and that are accounted for as
extraordinary items.

 

“Exchange
Rate” shall mean on any day the rate at which Canadian Dollars may be
exchanged into Dollars, computed by the Canadian Administrative Agent at the
Bank of Canada noon spot rate, after 12:00 noon (Toronto time) on such day, provided
that if at the time

 

24

 

of any such
determination, for any reason, no such spot rate is being quoted, the Canadian
Administrative Agent, after consultation with the Borrower, may use any
reasonable method it deems appropriate to determine such rate, and such
determination shall be conclusive absent manifest error.

 

“Existing
Arcade Holdings PIK Notes” shall mean the floating rate exchangeable
payment-in-kind notes of Arcade Holdings in an aggregate principal amount of
approximately $76,900,000 as of the date hereof.

 

“Existing
Arcade Notes” shall mean the 10-1/2% Senior Notes due 2008 of Arcade,
issued pursuant to an indenture dated as of June 25, 1998, with IBJ Schroder
Bank & Trust Company, as trustee.

 

“Existing
Credit Agreements” shall mean each of (a) the Existing Jostens Credit
Agreement, (b) the Credit Agreement dated as of March 26, 2002, as amended,
among Von Hoffmann Holdings, Von Hoffman, certain subsidiaries of Von Hoffman,
CIT Group/Business Credit, Inc., as administrative agent, and the lenders from
time to time party thereto and (c) the Amended and Restated Credit Agreement
dated as of December 18, 2001, as amended, among Arcade, Heller Financial,
Inc., as administrative agent, and the lenders from time to time party thereto.

 

“Existing
Jostens Credit Agreement” shall mean the Credit Agreement dated as of July
29, 2003, among Jostens, the Canadian Borrower, Credit Suisse First Boston, as
administrative agent, Credit Suisse First Boston Toronto Branch, as Canadian
administrative agent, and the lenders from time to time party thereto.

 

“Existing
Jostens Notes” shall mean the 12-3/4% Senior Subordinated Notes due 2010 of
Jostens, issued pursuant to an indenture dated as of May 10, 2000, with The
Bank of New York, as trustee.

 

“Existing
Jostens Preferred Stock” shall mean the 14% Senior Redeemable
Payment-In-Kind Preferred Stock of Jostens, issued pursuant to a certificate of
designations dated and effective on May 10, 2000.

 

“Existing
Letters of Credit” shall have the meaning provided in the preamble to this
Agreement.

 

“Existing
Opco Notes” shall mean the Existing Jostens Notes, the Existing Von
Hoffmann Notes and the Existing Arcade Notes.

 

“Existing
Von Hoffmann Notes” shall mean (a) the 10-3/8% Senior Subordinated Notes
due 2007 of Von Hoffman, issued pursuant to an indenture dated as of May 22,
1997, with Marine Midland Bank, as trustee, (b) the 13.5% Subordinated Exchange
Debentures due 2009 of Von Hoffmann Holdings, issued pursuant to an indenture
dated as of October 16, 1998, with Marine Midland Bank, as trustee, and (c) the
10-1/4% Senior Notes due 2009 of Von Hoffman,

 

25

 

issued
pursuant to an indenture dated as of March 26, 2002, with U.S. Bank National
Association, as trustee.

 

“Federal
Funds Effective Rate” shall mean, for any day, the weighted average of the per annum rates on overnight federal funds transactions with
members of the Federal Reserve System arranged by federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a Business
Day, the average of the quotations for the day of such transactions received by
the Administrative Agent from three federal funds brokers of recognized
standing selected by it.

 

“Fees”
shall mean all amounts payable pursuant to, or referred to in,
Section 4.1.

 

“Final Date”
shall mean (a) for purposes of Section 4.1(a)(i), the date on which the US
Revolving Credit Commitments shall have terminated, no US Revolving Credit
Loans shall be outstanding and the US Letters of Credit Outstanding shall have
been reduced to zero and (b) for purposes of Section 4.1(a)(ii), the date on
which the Canadian Revolving Credit Commitments shall have terminated, no
Canadian Revolving Credit Loans shall be outstanding and the Canadian Letters
of Credit Outstanding shall have been reduced to zero.

 

“Foreign
Asset Sale” shall have the meaning provided in Section 5.2(h).

 

“Foreign
Plan” shall mean any employee benefit plan, program, policy, arrangement or
agreement maintained or contributed to by the Borrower or any of its
Subsidiaries with respect to employees employed outside the United States.

 

“Foreign
Subsidiary” shall mean each Subsidiary of the Borrower that is not a
Domestic Subsidiary, including the Canadian Borrower.

 

“Funded
Debt” shall mean all indebtedness of the Borrower and the Restricted Subsidiaries
for borrowed money that matures more than one year from the date of its
creation or matures within one year from such date that is renewable or
extendable, at the option of the Borrower or any Restricted Subsidiary, to a
date more than one year from such date or arises under a revolving credit or
similar agreement that obligates the lender or lenders to extend credit during
a period of more than one year from such date, including all amounts of Funded
Debt required to be paid or prepaid within one year from the date of its
creation and, in the case of the Borrower, Indebtedness in respect of the
Loans.

 

“Fusion”
shall mean Fusion Acquisition LLC, a Delaware limited liability company.

 

“GAAP”
shall mean generally accepted accounting principles in the United States of
America or Canada, as applicable, as in effect from time to time; provided,
however, that if there occurs after the date hereof any change in GAAP
that affects in any respect the calculation of any covenant contained in
Section 10, the Lenders and the Borrower shall negotiate in good faith
amendments to the provisions of this Agreement that relate to the calculation
of such covenant with the intent of having the respective positions of the
Lenders and the Borrower after

 

26

 

such change in
GAAP conform as nearly as possible to their respective positions as of the date
of this Agreement and, until any such amendments have been agreed upon, the
covenants in Section 10 shall be calculated as if no such change in GAAP
has occurred.

 

“Governmental
Authority” shall mean any nation or government, any state, province,
territory or other political subdivision thereof, and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

 

“Guarantee
Agreements” shall mean, collectively, the US Guarantee and the Canadian
Guarantee.

 

“Guarantee
and Collateral Exception Amount” shall mean, at any time, $125,000,000 minus
(b) the sum of (i) the aggregate amount of Indebtedness incurred or
assumed prior to such time pursuant to Section 10.1(a)(x) or (a)(xi) that
is outstanding at such time and that was used to acquire, or was assumed in
connection with the acquisition of, capital stock and/or assets in respect of
which guarantees, pledges and security have not been given pursuant to
Sections 9.11 and 9.12, (ii) the sum of (A) the aggregate New Tranche
B Term Loan Commitments at such time and (B) the aggregate principal amount of
New Term Loans outstanding at such time and (iii) any Indebtedness
incurred by any Restricted Subsidiary that is not a Guarantor, provided
that if such amount is a negative number, the Guarantee and Collateral
Exception Amount shall be zero.

 

“Guarantee
Obligations” shall mean, as to any Person, any obligation of such Person
guaranteeing or intended to guarantee any Indebtedness of any other Person (the
“primary obligor”) in any manner, whether directly or indirectly,
including any obligation of such Person, whether or not contingent, (a) to
purchase any such Indebtedness or any property constituting direct or indirect
security therefor (b) to advance or supply funds (i) for the purchase or
payment of any such Indebtedness or any such property or (ii) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor, (c) to purchase
property, securities or services primarily for the purpose of assuring the
owner of any such Indebtedness of the ability of the primary obligor to make
payment of such Indebtedness or (d) otherwise to assure or hold harmless the
owner of such Indebtedness against loss in respect thereof; provided, however,
that the term “Guarantee Obligations” shall not include endorsements of
instruments for deposit or collection in the ordinary course of business.  The amount of any Guarantee Obligation shall
be deemed to be an amount equal to the stated or determinable amount of the
Indebtedness in respect of which such Guarantee Obligation is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect
thereof (assuming such Person is required to perform thereunder) as determined
by such Person in good faith.  The term “Guarantee”
when used as a verb shall mean to provide or incur a Guarantee Obligation and
when used as a noun shall have a correlative meaning.

 

“Guarantors”
shall mean (a) Holdings, the US Subsidiary Guarantors and the Canadian
Subsidiary Guarantors (if any), other than the immaterial Subsidiaries listed
on Schedule 1.1(d), and (b) in respect of the Canadian Obligations, the
Borrower.

 

27

 

“Hazardous
Materials” shall mean (a) any petroleum or petroleum products, radioactive
materials, friable asbestos, urea formaldehyde foam insulation, transformers or
other equipment that contain dielectric fluid containing regulated levels of
polychlorinated biphenyls, and radon gas; (b) any chemicals, materials or
substances defined as or included in the definition of “hazardous substances”, “hazardous
waste”, “hazardous materials”, “extremely hazardous waste”, “restricted
hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”, or “pollutants”,
or words of similar import, under any applicable Environmental Law; and (c) any
other chemical, material or substance, which is prohibited, limited or
regulated by any Environmental Law.

 

“Hedge
Agreements” shall mean interest rate swap, cap or collar agreements, interest
rate future or option contracts, currency swap agreements, currency future or
option contracts, commodity price protection agreements or other commodity
price hedging agreements, and other similar agreements entered into by the
Borrower or the Canadian Borrower in the ordinary course of business (and not
for speculative purposes) in order to protect the Borrower, the Canadian
Borrower or any of the Restricted Subsidiaries against fluctuations in interest
rates, currency exchange rates or commodity prices.

 

“Historical
Adjustments” shall mean with respect to any Person, without duplication,
the following items to the extent incurred prior to the Closing Date and, in
each case, during the applicable period:

 

(a)  fees for management advisory services
paid by the Borrower or any of its Subsidiaries to DLJ Merchant Banking
Partners III, L.P. and DLJ Merchant Banking Partners II, L.P. or any of their
respective financial services Affiliates;

 

(b)  adjustments in any line item in such
Person’s consolidated financial statements required or permitted by the
Financial Accounting Standards board Statement Nos. 141 and 142 resulting from
the application of purchase accounting in relation to the Jostens Acquisition,
the Color Prelude Acquisition and the Lehigh Press Acquisition;

 

(c)  gains (or losses) from the early
extinguishment of Indebtedness;

 

(d)  transaction expenses incurred in
connection with the Jostens Acquisition and the merger and recapitalization of
Jostens in 2000 and the Lehigh Press Acquisition;

 

(e)  the cumulative effect of a change in
accounting principles;

 

(f)  gains (or losses), net of tax from
disposed or discontinued operations, including the discontinuance of Jostens’
Recognition business;

 

(g)  non-cash adjustments to LIFO reserves;

 

(h)  gain (or loss) attributable to the disposition
of fixed assets; and

 

28

 

(i)  other costs consisting of
(i) one-time restructuring charges, (ii) one-time severance costs in
connection with former employees, (iii) debt financing costs,
(iv) unusual litigation expenses, (v) fees and expenses related to
acquisitions and (vi) consulting services in connection with acquisitions.

 

“Historical
Audited Financial Statements” shall mean as of the Closing Date, the
audited financial statements of each Predecessor Company and its consolidated
subsidiaries, in each case for the immediately preceding three fiscal years,
consisting of balance sheets and the related consolidated statements of income,
stockholders’ equity and cash flows for such fiscal years.

 

“Historical
Unaudited Financial Statements” shall mean as of the Closing Date, the
unaudited financial statements of each Predecessor Company and its consolidated
subsidiaries, in each case for each fiscal quarter of the applicable
Predecessor Company subsequent to the most recent Historical Audited Financial
Statement of such Predecessor Company and ended 45 days before the Closing
Date.

 

“Holdings”
shall have the meaning provided in the preamble to this Agreement.

 

“Increased
Amount Date” shall have the meaning provided in Section 2.15.

 

“Indebtedness”
of any Person shall mean (a) all indebtedness of such Person for borrowed
money, (b) the deferred purchase price of assets or services that in accordance
with GAAP would be included as liabilities in the balance sheet of such Person,
(c) the face amount of all letters of credit issued for the account of
such Person and, without duplication, all drafts drawn thereunder, (d) all
Indebtedness of a second Person secured by any Lien on any property owned by such
first Person, whether or not such Indebtedness has been assumed, (e) all Capitalized
Lease Obligations of such Person, (f) all obligations of such Person under
interest rate swap, cap or collar agreements, interest rate future or option
contracts, currency swap agreements, currency future or option contracts and
other similar agreements and (g) without duplication, all Guarantee Obligations
of such Person, provided that Indebtedness shall not include
(i) trade payables and accrued expenses, in each case payable directly or
through a bank clearing arrangement and arising in the ordinary course of
business, (ii) precious metal leases, whether capital or operating and (iii)
obligations in respect of commodity price protection agreements or other
commodity price hedging agreements.

 

“Initial
Financial Statement Delivery Date” shall mean the date on which Section 9.1
Financials are delivered to the Lenders under Section 9.1 for the first full fiscal
quarter ending at least six months after the Closing Date.

 

“Interest
Period” shall mean, with respect to any Term Loan or Revolving Credit Loan,
the interest period applicable thereto, as determined pursuant to Section 2.9.

 

“Investment”
shall mean, for any Person:  (a) the
acquisition (whether for cash, property, services or securities or otherwise)
of capital stock, bonds, notes, debentures, partnership or other ownership
interests or other securities of any other Person (including any

 

29

 

“short sale”
or any sale of any securities at a time when such securities are not owned by
the Person entering into such sale); (b) the making of any deposit with,
or advance, loan or other extension of credit to, any other Person (including
the purchase of property from another Person subject to an understanding or
agreement, contingent or otherwise, to resell such property to such Person),
but excluding any such advance, loan or extension of credit having a term not
exceeding 364 days arising in the ordinary course of business and excluding
also any Investment in leases entered into in the ordinary course of business;
or (c) the entering into of any guarantee of, or other contingent obligation
with respect to, Indebtedness or other monetary liability of any other Person.

 

“Joinder
Agreement” shall mean an agreement substantially in the form of Exhibit D.

 

“Joint
Ventures” shall mean any Person in which the Borrower or a Restricted
Subsidiary maintains an equity investment, but which is not a Subsidiary of the
Borrower.

 

“Jostens”
shall mean Jostens, Inc., a Minnesota corporation and a wholly owned subsidiary
of the Borrower.

 

“Jostens
Acquisition” shall mean the acquisition of Jostens by affiliates of DLJ
Merchant Banking Partners III L.P. on July 29, 2003.

 

“Jostens
Perfection Certificate” shall mean a certificate of the Borrower and the
Canadian Borrower in the form of Exhibit F or any other form approved by
the Administrative Agent.

 

“Jostens
Preferred Repurchase” shall mean the repurchase by Jostens on the Closing
Date of all the issued and outstanding Existing Jostens Preferred Stock for an
aggregate purchase price of approximately $109,800,000.

 

“Judgment
Currency” shall have the meaning set forth in Section 13.17.

 

“Judgment
Currency Conversion Date” shall have the meaning set forth in Section
13.17.

 

“KKR”
shall mean each of Kohlberg Kravis Roberts & Co., L.P. and KKR Associates, L.P.

 

“KKR Equity
Amount” shall mean an amount equal to not less than 40% of the Equity
Contribution.

 

“KKR Equity
Contribution” shall mean, collectively, (a) the contribution by KKR of an
amount of cash equal to not less than the KKR Equity Amount to Fusion, in
exchange for the issuance to KKR of 100% of the issued and outstanding equity
interests of Fusion and (b) the further contribution by Fusion of all such cash
contribution proceeds to the Merger Subs, in

 

30

 

exchange for
the issuance to Fusion of 100% of this issued and outstanding equity interests
in each of the Merger Subs.

 

“L/C
Maturity Date” shall mean the date that is five Business Days prior to the
Revolving Credit Maturity Date.

 

“L/C
Participants” shall mean the Cdn L/C Participants or the US L/C
Participants and each is an “L/C Participant”.

 

“L/C
Participation” shall mean a US L/C Participation or a Cdn L/C
Participation.

 

“Lehigh
Press Acquisition” shall mean the acquisition of Lehigh Press, Inc. by a
subsidiary of Von Hoffmann on October 22, 2003.

 

“Lender”
shall have the meaning provided in the preamble to this Agreement.

 

“Lender
Default” shall mean (a) the failure (which has not been cured) of a Lender
to make available its portion of any Borrowing or to fund its portion of any
unreimbursed payment under Section 3.3 required to be made available or funded
by it hereunder or (b) a Lender having notified the Administrative Agent and/or
the Borrower that it does not intend to comply with the obligations under
Section 2.1(b), 2.1(d) or 3.3, in the case of either clause (a) or
clause (b) above, as a result of the appointment of a receiver or
conservator with respect to such Lender at the direction or request of any
regulatory agency or authority.

 

“Letter of
Credit” shall have the meaning provided in Section 3.1(a).

 

“Letter of
Credit Exposures” shall mean US Letter of Credit Exposures and Canadian Letter
of Credit Exposures, as applicable.

 

“Letter of
Credit Issuers” shall mean a collective reference to the US Letter of
Credit Issuer and the Canadian Letter of Credit Issuer and each is a “Letter
of Credit Issuer.”

 

“Letter of
Credit Request” shall mean a US Letter of Credit Request and a Canadian
Letter of Credit Request, as applicable.

 

“Level I
Status” shall mean, on any date, the Consolidated Total Debt to Consolidated
EBITDA Ratio is greater than or equal to 4.75 to 1.00 as of such date.

 

“Level II
Status” shall mean, on any date, the circumstance that Level I Status
does not exist and the Consolidated Total Debt to Consolidated EBITDA Ratio is
greater than or equal to 4.25 to 1.00 as of such date.

 

“Level III
Status” shall mean, on any date, the circumstance that neither Level I
Status nor Level II Status exists and the Consolidated Total Debt to
Consolidated EBITDA Ratio is greater than or equal to 3.75 to 1.00 as of such
date.

 

31

 

“Level IV
Status” shall mean, on any date, the circumstance that the Consolidated
Total Debt to Consolidated EBITDA Ratio is less than 3.75 to 1.00 as of such
date.

 

“LIBOR Loan”
shall mean any LIBOR Term Loan or LIBOR Revolving Credit Loan.

 

“LIBOR Rate”
shall mean, in the case of any LIBOR Term Loan or LIBOR Revolving Credit Loan,
with respect to each day during each Interest Period pertaining to such LIBOR
Loan, (a) the rate per annum
determined by the Administrative Agent at approximately 11:00 a.m. (London
time), on the date that is two Business Days prior to the commencement of such
Interest Period by reference to the British Bankers’ Association Interest
Settlement Rates for deposits in dollars (as set forth by any service selected
by the Administrative Agent that has been nominated by the British Bankers’
Association as an authorized information vendor for the purpose of displaying
such rates) for a period equal to such Interest Period (or, to the extent that
an interest rate is not so ascertainable, the rate per annum
determined by the Administrative Agent to be the average of the rates per annum at which deposits in dollars are offered for such
Interest Period to major banks in the London interbank market in London,
England by the Administrative Agent at approximately 11:00 a.m. (London time)
on the date that is two Business Days prior to the beginning of such Interest
Period) multiplied by (b) the Statutory Reserve Rate.

 

“LIBOR
Revolving Credit Loan” shall mean any Revolving Credit Loan bearing
interest at a rate determined by reference to the LIBOR Rate.

 

“LIBOR Term
Loan” shall mean any Term Loan bearing interest at a rate determined by
reference to the LIBOR Rate.

 

“Lien”
shall mean any mortgage, pledge, security interest, hypothecation, assignment,
lien (statutory or other) or similar encumbrance (including any agreement to
give any of the foregoing, any conditional sale or other title retention
agreement or any lease in the nature thereof).

 

“Loan”
shall mean any Revolving Credit Loan, Swingline Loan, Term Loan or New Tranche
B Term Loan made by any Lender hereunder.

 

“Management
Investors” shall mean the management officers and employees of the Borrower
and its Subsidiaries who are investors in the Borrower on the Closing Date.

 

“Mandatory
Borrowing” shall have the meaning provided in Section 2.1(d).

 

“Material
Adverse Change” shall mean any event or circumstance which has resulted or
is reasonably likely to result in a material adverse change in the business,
assets, operations, properties or financial condition of Holdings, the Borrower
and its Subsidiaries, taken as a whole, or that would materially adversely
affect the ability of Holdings, the Borrower and the other Credit Parties,
taken as a whole, to perform their obligations under this Agreement or any of
the other Credit Documents.

 

32

 

“Material
Adverse Effect” shall mean a circumstance or condition affecting the
business, assets, operations, properties or financial condition of Holdings,
the Borrower and the Subsidiaries, taken as a whole, that would materially
adversely affect (a) the ability of the Borrower and the other Credit Parties,
taken as a whole, to perform their obligations under this Agreement or any of
the other Credit Documents or (b) the rights and remedies of the Administrative
Agent and the Lenders under this Agreement or any of the other Credit
Documents.

 

“Material
Subsidiary” shall mean, at any date of determination, each Restricted
Subsidiary of the Borrower (a) whose total assets at the last day of the
Test Period ending on the last day of the most recent fiscal period for which
Section 9.1 Financials have been delivered were equal to or greater than
5% of the consolidated total assets of the Borrower and the Restricted
Subsidiaries at such date or (b) whose gross revenues for such Test Period
were equal to or greater than 5% of the consolidated gross revenues of the
Borrower and the Restricted Subsidiaries for such period, in each case
determined in accordance with GAAP.

 

“Maturity
Date” shall mean the Tranche A Term Loan Maturity Date, the Tranche B Term
Loan Maturity Date, the New Tranche B Term Loan Maturity Date or the Revolving
Credit Maturity Date.

 

“Merger”
shall mean, collectively, the Von Hoffmann Merger and the Arcade Merger.

 

“Merger
Agreements” shall mean the Von Hoffmann Merger Agreement and the Arcade
Merger Agreement.

 

“Merger
Consideration” shall mean, collectively, the aggregate amount of the Von
Hoffmann Merger Consideration payable in connection with the Von Hoffmann
Merger and the aggregate amount of the Arcade Merger Consideration payable in
connection with the Arcade Merger.

 

“Merger
Subs” shall mean Von Hoffmann Merger Sub and Arcade Merger Sub.

 

“Minimum
Borrowing Amount” shall mean (a) with respect to a Dollar Borrowing of Term
Loans or Revolving Credit Loans, $1,000,000, (b) with respect to a Canadian
Dollar Borrowing of Canadian Revolving Credit Loans, C$1,000,000 and (c) with
respect to a Borrowing of Swingline Loans, $100,000.

 

“Minority
Investment” shall mean any Person (other than a Subsidiary) in which the
Borrower or any Restricted Subsidiary owns capital stock or other equity
interests.

 

“Moody’s”
shall mean Moody’s Investors Service, Inc. or any successor by merger or
consolidation to its business.

 

“Mortgage”
shall mean a Mortgage, Assignment of Leases and Rents, Security Agreement and Financing
Statement or other security document entered into by the owner of a

 

33

 

Mortgaged
Property and the Collateral Agent for the ratable benefit of the Lenders in
respect of that Mortgaged Property, substantially in the form of Exhibit E,
or, in the case of Mortgaged Properties located outside the United States of
America, in such form as agreed between the Borrower and the Administrative
Agent or the Canadian Administrative Agent, as applicable, as the same may be
amended, supplemented or otherwise modified from time to time.

 

“Mortgaged
Property” shall mean, initially, each parcel of real estate and the improvements
thereto owned by a Credit Party and identified on Schedule 1.1(b),
and includes each other parcel of real property and improvements thereto with
respect to which a Mortgage is granted pursuant to Section 9.15.

 

“Net Cash
Proceeds” shall mean, with respect to any Prepayment Event, (a) the
gross cash proceeds (including payments from time to time in respect of
installment obligations, if applicable) received by or on behalf of Holdings,
the Borrower or any of the Restricted Subsidiaries in respect of such
Prepayment Event, less (b) the sum of:

 

(i)            in the case of any Prepayment Event,
the amount, if any, of all taxes paid or estimated to be payable by Holdings,
the Borrower or any of the Restricted Subsidiaries in connection with such Prepayment
Event,

 

(ii)           in the case of any Prepayment Event,
the amount of any reasonable reserve established in accordance with GAAP
against any liabilities (other than any taxes deducted pursuant to clause
(i) above) (x) associated with the assets that are the subject of
such Prepayment Event and (y) retained by Holdings, the Borrower or any of
the Restricted Subsidiaries, provided that the amount of any subsequent reduction
of such reserve (other than in connection with a payment in respect of any such
liability) shall be deemed to be Net Cash Proceeds of such Prepayment Event
occurring on the date of such reduction,

 

(iii)          in the case of any Prepayment Event,
the amount of any Indebtedness secured by a Lien on the assets that are the
subject of such Prepayment Event to the extent that the instrument creating or
evidencing such Indebtedness requires that such Indebtedness be repaid upon
consummation of such Prepayment Event,

 

(iv)          in the case of any Asset Sale
Prepayment Event (other than a transaction permitted by Section 10.4(e)),
Casualty Event or Permitted Sale Leaseback, the amount of any proceeds of such
Asset Sale Prepayment Event that the Borrower or any Subsidiary has reinvested
(or intends to reinvest within the Reinvestment Period or has entered into a
binding commitment prior to the last day of the Reinvestment Period to
reinvest) in the business of the Borrower or any of the Restricted Subsidiaries
(subject to Section 9.14), provided that any portion of such
proceeds that has not been so reinvested within such Reinvestment Period shall,
unless the Borrower or a Subsidiary has entered into a binding commitment prior
to the last day of such Reinvestment Period to reinvest such proceeds,
(x) be deemed to be Net Cash Proceeds of an Asset Sale Prepayment Event,
Casualty Event or Permitted Sale Leaseback occurring on the last day of such 

 

34

 

Reinvestment Period and (y) be applied to the repayment of Term
Loans in accordance with Section 5.2(a)(i); and

 

(v)           in the case of any Prepayment Event,
reasonable and customary fees, commissions, expenses, and other costs paid by
Holdings, the Borrower or any of the Restricted Subsidiaries, as applicable, in
connection with such Prepayment Event (other than those payable to Holdings,
the Borrower or any Subsidiary of the Borrower), in each case only to the
extent not already deducted in arriving at the amount referred to in
clause (a) above.

 

“New
Tranche B Term Loan Commitments” shall have the meaning provided in Section
2.15.

 

“New
Tranche B Term Loan Lender” shall have the meaning provided in
Section 2.15.

 

“New
Tranche B Term Loans” shall have the meaning provided in Section 2.15.

 

“New
Tranche B Term Loan Maturity Date” shall mean the date on which a New
Tranche B Term Loan matures.

 

“Non-Acceptance
Lender” shall mean a Canadian Lender that does not accept Bankers’
Acceptances.

 

“Non-Defaulting
Lender” shall mean and include each Lender other than a Defaulting Lender.

 

“Non-Excluded
Taxes” shall have the meaning provided in Section 5.4(a).

 

“Non-US Lender”
shall have the meaning provided in Section 5.4(a).

 

“Non-US
Participant” shall have the meaning provided in Section 5.4(c).

 

“Notice of
Borrowing” shall have the meaning provided in Section 2.3(a).

 

“Notice of
Conversion or Continuation” shall have the meaning provided in Section 2.6.

 

“Obligations”
shall have the meaning assigned to such term in the Security Documents.

 

“Other
Refinancing Transactions” shall mean (a) the payment in full of all amounts
due or outstanding under each of the Existing Credit Agreements (other than any
Existing Letters of Credit that are deemed to be issued under this Agreement in
accordance with the terms hereof), the termination of all commitments thereunder
and the release and discharge

 

35

 

of all
guarantees thereof and security therefor, (b) the Jostens Preferred Repurchase
and (c) the Arcade Holdings Note Repayment.

 

“Other
Tender Procedures” shall mean the Closing Date Other Tender Procedures and
the Post-Closing Other Tender Procedures, as applicable.

 

“Parent”
shall mean Jostens Holding Corp., a Delaware corporation.

 

“Parent
Discount Notes” shall mean the 10-1/4% Senior Discount Notes due 2013 of
Parent, issued pursuant to an indenture dated as of December 2, 2003, with BNY
Midwest Trust Company, as trustee.

 

“Participant”
shall have the meaning provided in Section 13.6(c)(i).

 

“Patriot
Act” shall have the meaning provided in Section 13.18.

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation established pursuant to
Section 4002 of ERISA, or any successor thereto.

 

“Perfection
Certificate” shall mean the collective reference to the Jostens Perfection
Certificate, the Arcade Perfection Certificate and the Von Hoffmann Perfection
Certificate.

 

“Permitted
Acquisition” shall mean the acquisition, by merger or otherwise, by the
Borrower or any of the Restricted Subsidiaries of assets or capital stock or
other equity interests, so long as (a) such acquisition and all
transactions related thereto shall be consummated in accordance with applicable
law; (b) such acquisition shall result in the issuer of such capital stock
or other equity interests becoming (i) a Restricted Subsidiary and (ii) (x) in
the case of a Restricted Domestic Subsidiary, a US Subsidiary Guarantor or (y)
in the case of a Restricted Canadian Subsidiary, a Canadian Subsidiary
Guarantor, in each case to the extent required by Section 9.11; (c) such
acquisition shall result in the Administrative Agent or the Canadian
Administrative Agent, as applicable, for the ratable benefit of the applicable
Lenders, being granted a security interest in any capital stock or any assets
so acquired, to the extent required by Sections 9.11, 9.12 and/or 9.15;
(d) after giving effect to such acquisition, no Default or Event of
Default shall have occurred and be continuing; and (e) the Borrower shall
be in compliance, on a pro forma basis after giving effect to such acquisition
(including any Indebtedness assumed or permitted to exist or incurred pursuant
to Sections 10.1(a)(x) and 10.1(a)(xi), respectively, and any related Pro
Forma Adjustment), with the covenants set forth in Sections 10.9 and
10.10, as such covenants are recomputed as at the last day of the most recently
ended Test Period under such Section as if such acquisition had occurred on the
first day of such Test Period.

 

“Permitted
Additional Notes” shall mean senior subordinated notes, issued by the
Borrower, (i) the terms of which (1) do not provide for any
scheduled repayment, mandatory redemption or sinking fund obligation prior to
the date on which the final maturity of the Senior Subordinated Notes occurs
(as in effect on the Closing Date) (other than customary offers to

 

36

 

purchase upon
a change of control, asset sale or event of loss and customary acceleration
rights after an event of default) and (2)  provide for subordination to
the Obligations under the Credit Documents on terms and conditions no less
favorable to the Lenders than the terms and conditions set forth in the Senior
Subordinated Notes Indenture, (ii) the covenants, events of default,
subsidiary guarantees and other terms of which (other than interest rate and
redemption premiums), taken as a whole, are not more restrictive to the Borrower
and the Subsidiaries than those in the Senior Subordinated Notes and
(iii) of which no Subsidiary of the Borrower (other than a Guarantor) is
an obligor under such notes that is not an obligor under the Senior
Subordinated Notes.

 

“Permitted
Capital Expenditure Amount” shall have the meaning provided in Section
10.11.

 

“Permitted
Investments” shall mean:

 

(a) securities
issued or unconditionally guaranteed by the United States government or any
agency or instrumentality thereof, in each case having maturities of not more
than 24 months from the date of acquisition thereof;

 

(b) securities
issued by any state of the United States of America or any political subdivision
of any such state or any public instrumentality thereof or any political
subdivision of any such state or any public instrumentality thereof having
maturities of not more than 24 months from the date of acquisition thereof and,
at the time of acquisition, having an investment grade rating generally
obtainable from either S&P or Moody’s (or, if at any time neither S&P
nor Moody’s shall be rating such obligations, then from another nationally
recognized rating service);

 

(c) commercial
paper issued by any Lender or any bank holding company owning any Lender;

 

(d) commercial
paper maturing no more than 12 months after the date of creation thereof and,
at the time of acquisition, having a rating of at least A-2 or P-2 from either
S&P or Moody’s (or, if at any time neither S&P nor Moody’s shall be
rating such obligations, an equivalent rating from another nationally recognized
rating service);

 

(e) domestic
and LIBOR certificates of deposit or bankers’ acceptances maturing no more than
two years after the date of acquisition thereof issued by any Lender or any
other bank having combined capital and surplus of not less than $250,000,000 in
the case of domestic banks and $100,000,000 (or the Dollar Equivalent thereof)
in the case of foreign banks;

 

(f) repurchase
agreements with a term of not more than 30 days for underlying securities
of the type described in clauses (a), (b) and (e) above entered into with any
bank meeting the qualifications specified in clause (e) above or securities
dealers of recognized national standing;

 

37

 

(g) marketable
short-term money market and similar securities having a rating of at least A-2
or P-2 from either S&P or Moody’s (or, if at any time neither S&P nor
Moody’s shall be rating such obligations, an equivalent rating from another
nationally recognized rating service);

 

(h) shares
of investment companies that are registered under the Investment Company Act of
1940 and substantially all the investments of which are one or more of the
types of securities described in clauses (a) through (g) above; and

 

(i) in
the case of Investments by any Restricted Foreign Subsidiary or Investments
made in a country outside the United States of America, other customarily
utilized high-quality Investments in the country where such Restricted Foreign
Subsidiary is located or in which such Investment is made.

 

“Permitted
Liens” shall mean (a) Liens for taxes, assessments or governmental charges
or claims not overdue by more than 60 days or which are being contested in
good faith and by appropriate proceedings for which appropriate reserves have
been established in accordance with GAAP; (b) Liens in respect of property or
assets of the Borrower or any of the Subsidiaries imposed by law, such as
carriers’, warehousemen’s, mechanics’ landlords’, materialmen’s and repairmen’s
Liens and other similar Liens arising in the ordinary course of business, in
each case so long as such Liens arise in the ordinary course of business and do
not individually or in the aggregate have a Material Adverse Effect;
(c) Liens arising from judgments or decrees in circumstances not
constituting an Event of Default under Section 11.11; (d) Liens incurred or
deposits made in connection with workers’ compensation, unemployment insurance
and other types of social security legislation, or to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, performance and return-of-money bonds and other similar
obligations incurred in the ordinary course of business; (e) ground leases
in respect of real property on which facilities owned or leased by the Borrower
or any of its Subsidiaries are located; (f) easements, rights-of-way, restrictions,
minor defects or irregularities in title and other similar charges or
encumbrances not interfering in any material respect with the business of the
Borrower and its Subsidiaries, taken as a whole, or the Canadian Borrower and
its Subsidiaries, taken as a whole; (g) any interest or title of a lessor or
secured by a lessor’s interest under any lease permitted by this Agreement;
(h) Liens in favor of customs and revenue authorities arising as a matter
of law to secure payment of customs duties in connection with the importation
of goods; (i) Liens on goods the purchase price of which is financed by a
documentary letter of credit issued for the account of the Borrower or any of
its Subsidiaries, provided that such Lien secures only the obligations
of the Borrower or such Subsidiaries in respect of such letter of credit to the
extent permitted under Section 10.1; (j) leases or subleases granted
to others not interfering in any material respect with the business of the
Borrower and its Subsidiaries, taken as a whole; and (k) Liens created in
the ordinary course of business in favor of banks and other financial
institutions over credit balances of any bank accounts of the Borrower and the
Restricted Subsidiaries held at such banks or financial institutions, as the
case may be, to facilitate the operation of cash pooling and/or interest
set-off arrangements in respect of such bank accounts in the ordinary course of
business.

 

38

 

“Permitted
Sale Leaseback” shall mean any Sale Leaseback consummated by the Borrower
or any of the Restricted Subsidiaries after the Closing Date, provided
that such Sale Leaseback is consummated for fair value as determined at the
time of consummation in good faith by the Borrower and, in the case of any Sale
Leaseback (or series of related Sales Leasebacks) the aggregate proceeds of
which exceed $20,000,000, the Board of Directors of the Borrower (which such
determination may take into account any retained interest or other Investment
of the Borrower or such Restricted Subsidiary in connection with, and any other
material economic terms of, such Sale Leaseback).

 

“Person”
shall mean any individual, partnership, joint venture, firm, corporation,
limited liability company, association, trust or other enterprise or any Governmental
Authority.

 

“Plan”
shall mean any multiemployer or single-employer plan, as defined in Section
4001 of ERISA and subject to Title IV of ERISA, that is or was within any of
the preceding six plan years maintained or contributed to by (or to which there
is or was an obligation to contribute or to make payments to) the Borrower, a
Subsidiary or an ERISA Affiliate.

 

“Pledge
Agreement” shall mean the Pledge Agreement, entered into by Holdings, the
Borrower, the other pledgors party thereto and the Administrative Agent for the
ratable benefit of the Lenders, substantially in the form of Exhibit C-3, as
the same may be amended, supplemented or otherwise modified from time to time.

 

“Pledge
Agreements” shall mean the Pledge Agreement and the Canadian Pledge
Agreement.

 

“Post-Closing
Other Tender Procedures” shall mean, with respect to any Specified Existing
Opco Notes not tendered pursuant to the Tender Offers for such notes,
sufficient funds shall have been deposited with the trustee under the indenture
governing the applicable Specified Existing Opco Notes for the full
satisfaction and discharge of the entire outstanding principal amount of such
notes.

 

“PPSA”
shall mean the Personal Property Security Act
(Ontario), provided, however, if the attachment, perfection, or
priority of the Canadian Administrative Agent’s Liens in any Collateral are
governed by the personal property security laws of any jurisdiction other than
Ontario, “PPSA” shall mean those personal property security laws in such other
jurisdiction for the purposes of the provisions of this Agreement relating to
such attachment, perfection or priority and for the definitions related to such
provisions.

 

“Predecessor
Companies” shall mean, collectively, Jostens, Von Hoffmann Holdings and
Arcade Holdings.

 

“Prepayment
Event” shall mean any Asset Sale Prepayment Event, Debt Incurrence
Prepayment Event, Casualty Event or any Permitted Sale Leaseback.

 

39

 

“Prime Rate”
shall mean the rate of interest per annum
determined from time to time by the Administrative Agent as its reference rate
in effect at its principal office in New York City.

 

“Pro Forma
Adjustment” shall mean, for any Test Period that includes any of the six
consecutive fiscal quarters first ending following any Permitted Acquisition,
with respect to the Acquired EBITDA of the applicable Acquired Entity or Business
or the Consolidated EBITDA of the Borrower affected by such acquisition, the
pro forma increase or decrease in such Acquired EBITDA or such Consolidated
EBITDA, as the case may be, projected by the Borrower in good faith as a result
of reasonably identifiable and factually supportable net cost savings or
additional net costs, as the case may be, realizable during such period by
combining the operations of such Acquired Entity or Business with the
operations of the Borrower and its Subsidiaries, provided that so long
as such net cost savings or additional net costs will be realizable at any time
during such six-quarter period, it may be assumed, for purposes of projecting
such pro forma increase or decrease to such Acquired EBITDA or such
Consolidated EBITDA, as the case may be, that such net cost savings or
additional net costs will be realizable during the entire such period; provided
further that any such pro forma increase or decrease to such Acquired
EBITDA or such Consolidated EBITDA, as the case may be, shall be without
duplication for net cost savings or additional net costs actually realized
during such period and already included in such Acquired EBITDA or such
Consolidated EBITDA, as the case may be.

 

“Pro Forma
Adjustment Certificate” shall mean any certificate of an Authorized Officer
of the Borrower delivered pursuant to Section 9.1(h) or setting forth the
information described in clause (iv) to Section 9.1(d).

 

“Pro Forma
Financial Statements” shall mean the unaudited pro forma balance sheet of
the Borrower and its consolidated Subsidiaries at June 30, 2004, and the
related unaudited pro forma consolidated statement of income of the Borrower
and its consolidated Subsidiaries for the twelve months ended June 30, 2004, in
each case prepared giving effect to the Transactions as if they had occurred,
with respect to such balance sheet, on such date, and with respect to such
statement of income, on the first day of such twelve-month period.

 

“Qualified
PIK Securities” shall mean (1) any preferred capital stock or preferred
equity interest of any Person (a) that does not provide for any cash
dividend payments or other cash distributions in respect thereof on or prior to
any Maturity Date and (b) that by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable or exercisable) or
upon the happening of any event does not (i)(x) mature or become
mandatorily redeemable pursuant to a sinking fund obligation or otherwise,
(y) become convertible or exchangeable at the option of the holder thereof
for Indebtedness or preferred stock that is not Qualified PIK Securities or
(z) become redeemable at the option of the holder thereof (other than as a
result of a change of control event), in whole or in part, in each case on or
prior to the first anniversary of the latest Maturity Date and
(ii) provide holders thereunder with any rights upon the occurrence of a “change
of control” event prior to the repayment of the Obligations under the Credit
Documents and (2) any Indebtedness of any Person which has payments terms at
least as favorable to such Person and Lenders as described in clauses (1)(a)
and (b) above and is

 

40

 

subordinated
on customary terms and conditions (including remedy standstills at all times
prior to the latest Maturity Date) and has other terms, other than with respect
to interest rates, at least as favorable to such Person and Lenders as the
Senior Subordinated Notes.

 

“Real
Estate” shall have the meaning provided in Section 9.1(f).

 

“Register”
shall have the meaning provided in Section 13.6(b)(iv).

 

“Regulation D”
shall mean Regulation D of the Board as from time to time in effect and
any successor to all or a portion thereof establishing reserve requirements.

 

“Regulation T”
shall mean Regulation T of the Board as from time to time in effect and
any successor to all or a portion thereof establishing margin requirements.

 

“Regulation U”
shall mean Regulation U of the Board as from time to time in effect and any successor
to all or a portion thereof establishing margin requirements.

 

“Regulation X”
shall mean Regulation X of the Board as from time to time in effect and
any successor to all or a portion thereof establishing margin requirements.

 

“Reinvestment
Period” shall mean the earlier of (x) 10 Business Days prior to the
occurrence of an obligation to make an offer to repurchase Senior Subordinated
Notes (or any Permitted Additional Notes) pursuant to the asset sale or event
of loss provisions of the Senior Subordinated Notes Indenture and (y) 15
months following the date of the applicable Asset Sale Prepayment Event or
Casualty Event.

 

“Related
Affiliate” shall mean with respect to any Lender with a Canadian Revolving
Credit Commitment, an Affiliate or lending office of such Lender designated by
it to make its Canadian Revolving Credit Commitment, Canadian Letters of Credit
and Canadian Revolving Credit Loans available to the Borrower under this
Agreement.

 

“Related
Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the directors, officers, employees, agents, trustees, advisors
of such Person and any Person that possesses, directly or indirectly, the power
to direct or cause the direction of the management or policies of such Person,
whether through the ability to exercise voting power, by contract or otherwise.

 

“Repayment
Amount” shall mean the Tranche A Repayment Amount and the Tranche B
Repayment Amount, as applicable.

 

“Repayment
Date” shall mean a Tranche A Repayment Date or a Tranche B Repayment Date,
as applicable.

 

“Reportable
Event” shall mean an event described in Section 4043 of ERISA and the
regulations thereunder.

 

41

 

“Required
Lenders” shall mean, at any date, (a) Non-Defaulting Lenders having or
holding a majority of the sum of (i) the Adjusted US Total Revolving
Credit Commitment at such date, (ii) the Adjusted Canadian Total Revolving
Credit Commitment at such date, (iii) the Adjusted Total Term Loan Commitment
at such date, and (iv) the outstanding principal amount of Term Loans
(excluding Term Loans held by Defaulting Lenders) at such date or (b) if
the US Total Revolving Credit Commitment, the Canadian Total Revolving Credit
Commitment and the Total Term Loan Commitment have been terminated or for the
purposes of acceleration pursuant to Section 11, the holders (excluding
Defaulting Lenders) of a majority of the outstanding principal amount of the
Loans and Letter of Credit Exposures (excluding the Loans and Letter of Credit
Exposures of Defaulting Lenders) in the aggregate at such date.

 

“Required
Tranche A Term Loan Lenders” shall mean, at any date, Non-Defaulting
Lenders having or holding a majority of the sum of (a) the portion of the
Adjusted Total Term Loan Commitment that relates to Tranche A Term Loan
Commitments at such date and (b) the outstanding principal amount of the
Tranche A Term Loans (excluding Tranche A Term Loans held by Defaulting
Lenders) in the aggregate at such date.

 

“Required
Tranche B Term Loan Lenders” shall mean, at any date, Non-Defaulting
Lenders having or holding a majority of the sum of (a) the portion of the
Adjusted Total Term Loan Commitment that relates to Tranche B Term Loan
Commitments at such date and (b) the outstanding principal amount of the
Tranche B Term Loans (excluding Tranche B Term Loans held by Defaulting
Lenders) in the aggregate at such date.

 

“Requirement
of Law” shall mean, as to any Person, the certificate of incorporation and
by-laws or other organizational or governing documents of such Person, and any
law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such
Person or any of its property or assets or to which such Person or any of its
property or assets is subject.

 

“Restricted
Domestic Subsidiary” shall mean a Domestic Subsidiary that is a Restricted
Subsidiary.

 

“Restricted
Foreign Subsidiary” shall mean a Foreign Subsidiary that is a Restricted
Subsidiary.

 

“Restricted
Subsidiary” shall mean any Subsidiary of the Borrower other than an
Unrestricted Subsidiary.

 

“Revolving
Credit Commitment Percentage” shall mean the Canadian Revolving Credit
Commitment Percentage and the US Revolving Credit Commitment Percentage, as
applicable.

 

“Revolving
Credit Commitments” shall mean the US Revolving Credit Commitments and the
Canadian Revolving Credit Commitments, as applicable.

 

“Revolving
Credit Loans” shall have the meaning provided in Section 2.1(b)(i).

 

42

 

“Revolving
Credit Maturity Date” shall mean the date that is five years after the
Closing Date, or, if such date is not a Business Day, the next preceding
Business Day.

 

“S&P”
shall mean Standard & Poor’s Ratings Services or any successor by
merger or consolidation to its business.

 

“Sale
Leaseback” shall mean any transaction or series of related transactions pursuant
to which the Borrower or any of the Restricted Subsidiaries (a) sells,
transfers or otherwise disposes of any property, real or personal, whether now
owned or hereafter acquired, and (b) as part of such transaction, thereafter
rents or leases such property or other property that it intends to use for
substantially the same purpose or purposes as the property being sold,
transferred or disposed.

 

“Schedule I
Lender” means any Lender named in Schedule I to the Bank Act
(Canada).

 

“Schedule
II/III Reference Lenders” means Credit Suisse First Boston Toronto Branch
and other specified Canadian Lenders that are banks named in Schedule II or
Schedule III to the Bank Act
(Canada) and approved by the Canadian Borrower and the Canadian Administrative
Agent.

 

“Scotiabank
Intercreditor Agreement” shall mean the Intercreditor Agreement entered
into by the Administrative Agent for the ratable benefit of the Lenders and The
Bank of Nova Scotia, substantially in form of Exhibit J, as the same may
be amended, supplemented or otherwise modified from time to time.

 

“Seasonal
Revolving Indebtedness” shall mean the lesser of (a) $100,000,000 and (b)
the Dollar Equivalent of the amount of Revolving Credit Loans outstanding on
the last day of the third fiscal quarter in each fiscal year of the Borrower.

 

“SEC”
shall mean the Securities and Exchange Commission or any successor thereto.

 

“Section
9.1 Financials” shall mean the financial statements delivered, or required
to be delivered, pursuant to Section 9.1(a) or (b) together with the
accompanying officer’s certificate delivered, or required to be delivered,
pursuant to Section 9.1(d).

 

“Secured
Parties” shall have the meaning assigned to such term in the applicable
Security Documents.

 

“Security
Agreement” shall mean the Security Agreement entered into by Holdings, the
Borrower, the US Subsidiary Guarantors, the Administrative Agent and the
Canadian Administrative Agent for the ratable benefit of the Lenders,
substantially in the form of Exhibit C-1, as the same may be amended,
supplemented or otherwise modified from time to time.

 

43

 

“Security
Agreements” shall mean, collectively, the Security Agreement and the
Canadian Security Agreement.

 

“Security
Documents” shall mean, collectively, (a) the Guarantee Agreements,
(b) the Security Agreements, (c) the Pledge Agreements, (d) the
Mortgages, (e) each other Canadian Security Document and (f) each
other security agreement or other instrument or document executed and delivered
pursuant to Section 9.11 or 9.12 or pursuant to any of the Security Documents
to secure any of the Obligations.

 

“Senior
Subordinated Notes” shall mean (a) the Senior Subordinated Notes as
defined in the recitals hereof and (b) any replacement or refinancing
thereof that constitutes Permitted Additional Notes, provided that any
such amendment, replacement or refinancing shall bear a rate of interest
determined by the Board of Directors of the Borrower to be a market rate of
interest at the date of such amendment, replacement or refinancing and have
other terms customary for similar issuances under similar market conditions or
otherwise be on terms reasonably acceptable to the Administrative Agent.

 

“Senior
Subordinated Notes Documents” shall mean the Senior Subordinated Notes
Indenture and all other instruments, agreements and other documents evidencing
or governing the Senior Subordinated Notes or providing for any Guarantee or
other right in respect thereof.

 

“Senior
Subordinated Notes Indenture” shall mean the Indenture dated as of the
Closing Date, among the Borrower, the guarantors party thereto and The Bank of
New York, as trustee, pursuant to which the Senior Subordinated Notes are
issued, as the same may be amended, supplemented or otherwise modified from
time to time to the extent permitted by Section 10.7(b).

 

“Series”
shall have the meaning as provided in Section 2.15.

 

“Sold
Entity or Business” shall have the meaning provided in the definition of
the term “Consolidated EBITDA”.

 

“Solvent”
shall mean, with respect to the Borrower, that as of the Closing Date, both (i)
(a) the sum of the Borrower’s debt (including contingent liabilities) does not
exceed the present fair saleable value of the Borrower’s present assets; (b)
the Borrower’s capital is not unreasonably small in relation to its business as
contemplated on the Closing Date; and (c) the Borrower has not incurred and
does not intend to incur, or believe that it will incur, debts including
current obligations beyond its ability to pay such debts as they become due
(whether at maturity or otherwise); and (ii) the Borrower is “solvent” within
the meaning given that term and similar terms under applicable laws relating to
fraudulent transfers and conveyances. 
For purposes of this definition, the amount of any contingent liability
at any time shall be computed as the amount that, in light of all of the facts
and circumstances existing at such time, represents the amount that can
reasonably be expected to become an actual or matured liability (irrespective
of whether such contingent liabilities meet the criteria for accrual under
Statement of Financial Accounting Standard No. 5).

 

44

 

“Specified
Existing Opco Notes” shall mean the Existing Jostens Notes and the 10-1/4%
Senior Notes due 2009 of Von Hoffman.

 

“Specified
Subsidiary” shall mean, at any date of determination (a) any Material
Subsidiary or (b) any Unrestricted Subsidiary (i) whose total assets at
the last day of the Test Period ending on the last day of the most recent
fiscal period for which Section 9.1 Financials have been delivered were equal
to or greater than 10% of the consolidated total assets of the Borrower and the
Subsidiaries at such date, (ii) whose gross revenues for such Test Period
were equal to or greater than 10% of the consolidated gross revenues of the
Borrower and the Subsidiaries for such period, in each case determined in
accordance with GAAP and (c) each other Subsidiary that, when combined
with any other Subsidiary that is the subject of an Event of Default under
Section 11.5 would constitute a Specified Subsidiary under clause (a) or (b) above.

 

“Sponsor”
shall mean any of DLJMB and KKR and their respective Affiliates.

 

“Stated
Amount” of any Letter of Credit shall mean the maximum amount from time to
time available to be drawn thereunder, determined without regard to whether any
conditions to drawing could then be met.

 

“Status”
shall mean, as to the Borrower as of any date, the existence of Level I
Status, Level II Status, Level III Status or Level IV Status, as the case
may be on such date.  Changes in Status
resulting from changes in the Consolidated Total Debt to Consolidated EBITDA
Ratio shall become effective (the date of such effectiveness, the “Effective
Date”) as of the first day following the last day of the most recent fiscal
year or period for which (a) Section 9.1 Financials are delivered to the
Lenders under Section 9.1 and (b) an officer’s certificate is delivered by
the Borrower to the Lenders setting forth, with respect to such
Section 9.1 Financials, the then-applicable Status, and shall remain in
effect until the next change to be effected pursuant to this definition, provided
that (i) if the Borrower shall have made any payments in respect of
interest or commitment fees during the period (the “Interim Period”)
from and including the Effective Date to but excluding the day any change in
Status is determined based on the relevant Section 9.1 Financials as
provided above, then the amount of the next such payment due on or after such
day shall be increased or decreased by an amount equal to any underpayment or
overpayment so made by the Borrower during such Interim Period and
(ii) each determination of the Consolidated Total Debt to Consolidated
EBITDA Ratio pursuant to this definition shall be made with respect to the Test
Period ending at the end of the fiscal period covered by the relevant financial
statements.

 

“Statutory
Reserve Rate” shall mean for any day as applied to any LIBOR Loan, a
fraction (expressed as a decimal), the numerator of which is the number one and
the denominator of which is the number one minus the aggregate of the maximum
reserve percentages that are in effect on that day (including any marginal,
special, emergency or supplemental reserves), expressed as a decimal, as
prescribed by the Board and to which the Administrative Agent is subject, for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Board).  Such
reserve percentages shall include those imposed pursuant to such
Regulation D.  LIBOR Loans shall be
deemed to constitute eurocurrency funding and to be

 

45

 

subject to
such reserve requirements without benefit of or credit for proration, exemptions
or offsets that may be available from time to time to any Lender under such
Regulation D or any comparable regulation. 
The Statutory Reserve Rate shall be adjusted automatically on and as of
the effective date of any change in any reserve percentage.

 

“Subordinated
Indebtedness” shall mean Indebtedness of Borrower or any Guarantor that is
by its terms subordinated in right of payment to the obligations of Borrower
and such Guarantor, as applicable, under this Agreement.

 

“Subsidiary”
of any Person shall mean and include (a) any corporation more than 50% of whose
stock of any class or classes having by the terms thereof ordinary voting power
to elect a majority of the directors of such corporation (irrespective of
whether or not at the time stock of any class or classes of such corporation
shall have or might have voting power by reason of the happening of any contingency)
is at the time owned by such Person directly or indirectly through Subsidiaries
and (b) any partnership, association, joint venture or other entity in which
such Person directly or indirectly through Subsidiaries has more than a 50%
equity interest at the time.  Unless
otherwise expressly provided, all references herein to a “Subsidiary” shall
mean a Subsidiary of the Borrower.

 

“Subsidiary
Guarantor” shall mean a US Subsidiary Guarantor and a Canadian Subsidiary
Guarantor, as applicable.

 

“Successor Borrower”
shall have the meaning provided in Section 10.3(a).

 

“Successor
Canadian Borrower” shall have the meaning provided in Section 10.3(b).

 

“Swingline
Commitment” shall mean $30,000,000.

 

“Swingline
Lender” shall mean Credit Suisse First Boston in its capacity as lender of
Swingline Loans hereunder.

 

“Swingline
Loans” shall have the meaning provided in Section 2.1(c).

 

“Swingline
Maturity Date” shall mean, with respect to any Swingline Loan, the date
that is five Business Days prior to the Revolving Credit Maturity Date.

 

“Tax Act”
shall mean the Income Tax Act (Canada), as
amended, and any successor thereto, and any regulations promulgated thereunder.

 

“Taxes”
shall mean any and all present or future taxes, duties, levies, imposts, assessments,
deductions, withholdings or other similar charges imposed by any Governmental Authority
whether computed on a separate, consolidated, unitary, combined or other basis
and any and all liabilities (including interest, fines, penalties or additions
to tax) with respect to the foregoing.

 

46

 

“Tender
Offers” shall mean (a) the offer by Jostens to purchase any and all
outstanding Existing Jostens Notes, (b) the offer by Von Hoffmann to purchase
any and all outstanding Existing Von Hoffmann Notes and (c) the offer by Arcade
purchase any and all outstanding Existing Arcade Notes.

 

“Term Loans”
shall mean the Tranche A Term Loans and the Tranche B Term Loans, collectively.

 

“Term Loan
Commitment” shall mean, with respect to each Lender, such Lender’s Tranche
A Term Loan Commitment and Tranche B Term Loan Commitment.

 

“Term Loan
Lenders” shall mean the Tranche A Term Loan Lenders and the Tranche B Term
Loan Lenders, as applicable.

 

“Test
Period” shall mean, for any determination under this Agreement, the four
consecutive fiscal quarters of the Borrower then last ended.

 

“Total
Commitment” shall mean the sum of the Total Term Loan Commitment, the US
Total Revolving Credit Commitment and the Canadian Total Revolving Credit
Commitment.

 

“Total
Credit Exposure” shall mean, at any date, the sum of (a) the US Total Revolving
Credit Commitment at such date, (b) the Canadian Total Revolving Credit
Commitment at such date, (c) the Total Term Loan Commitment at such date
and (d) the outstanding principal amount of all Term Loans at such date.

 

“Total Term
Loan Commitment” shall mean the sum of the Tranche A Term Loan Commitments,
the Tranche B Term Loan Commitments and New Tranche B Term Loan Commitments, if
applicable, of all the Lenders.

 

“Tranche A
Repayment Amount” shall have the meaning provided in Section 2.5(b).

 

“Tranche A
Repayment Date” shall have the meaning provided in Section 2.5(b).

 

“Tranche A
Term Loan” shall have the meaning provided in Section 2.1(a)(i).

 

“Tranche A
Term Loan Commitment” shall mean (a) in the case of each Lender that
is a Lender on the date hereof, the amount set forth opposite such Lender’s
name on Schedule 1.1(c) as such Lender’s “Tranche A Term Loan
Commitment” and (b) in the case of any Lender that becomes a Lender after
the date hereof, the amount specified as such Lender’s “Tranche A Commitment”
in the Assignment and Acceptance pursuant to which such Lender assumed a
portion of the aggregate Tranche A Term Loan Commitment, in each case as the
same may be changed from time to time pursuant to the terms hereof.  The aggregate amount of the Tranche A Term
Loan Commitments as of the Closing Date is $150,000,000.

 

47

 

“Tranche A
Term Loan Lender” shall mean a Lender with a Tranche A Term Loan Commitment
or an outstanding Tranche A Term Loan.

 

“Tranche A
Term Loan Maturity Date” shall mean the date which is six years after the
Closing Date or, if such date is not a Business Day, the first Business Day
thereafter.

 

“Tranche B
Repayment Amount” shall have the meaning provided in Section 2.5(c).

 

“Tranche B
Repayment Date” shall have the meaning provided in Section 2.5(c).

 

“Tranche B
Term Loan” shall have the meaning provided in Section 2.1(a)(ii).

 

“Tranche B
Term Loan Commitment” shall mean, (a) in the case of each Lender that
is a Lender on the date hereof, the amount set forth opposite such Lender’s
name on Schedule 1.1(c) as such Lender’s “Tranche B Term Loan
Commitment” and (b) in the case of any Lender that becomes a Lender after
the date hereof, the amount specified as such Lender’s “Tranche B Term Loan
Commitment” in the Assignment and Acceptance pursuant to which such Lender
assumed a portion of the aggregate Tranche B Term Loan Commitment, in each case
as the same may be changed from time to time pursuant to the terms hereof.  The aggregate amount of the Tranche B Term
Loan Commitments as of the Closing Date is $870,000,000.

 

“Tranche B
Term Loan Lender” shall mean a Lender with a Tranche B Term Loan Commitment
or an outstanding Tranche B Term Loan.

 

“Tranche B
Term Loan Maturity Date” shall mean the date which is seven years after the
Closing Date or, if such date is not a Business Day, the first Business Day
thereafter.

 

“Transactions”
shall mean, collectively, the transactions contemplated by this Agreement and
the Senior Subordinated Notes Indenture, including the Acquisition, the Equity
Contribution, the Tender Offers and Consent Solicitations, and the Other
Refinancing Transactions.

 

“Transaction
Expenses” shall mean any fees or expenses incurred or paid by the Borrower
or any of its Subsidiaries in connection with the Transactions, this Agreement
and the other Credit Documents and the transactions contemplated hereby and
thereby.

 

“Transferee”
shall have the meaning provided in Section 13.6(e).

 

“Type”
shall mean (a) as to any Term Loan, its nature as an ABR Loan or a LIBOR
Term Loan, (b) as to any US Revolving Credit Loan, its nature as an ABR Loan or
a LIBOR Revolving Credit Loan and (c) as to any Canadian Revolving Credit
Loan, its nature as a BA Loan, a Canadian Prime Loan or a Cdn ABR Loan.

 

“Unfunded
Current Liability” of any Plan shall mean the amount, if any, by which the
present value of the accrued benefits under the Plan as of the close of its most
recent plan

 

48

 

year, determined
in accordance with Statement of Financial Accounting Standards No. 87 as in
effect on the date hereof, based upon the actuarial assumptions that would be
used by the Plan’s actuary in a termination of the Plan, exceeds the fair
market value of the assets allocable thereto and in relation to a Canadian Pension Plan
shall mean the amount, if any, by which (A) the present value of the accrued
benefits under the Canadian Pension Plan as of the close of business of its
most recent plan year, determined in accordance with (I) the Statement of
Financial Accounting Standards No. 87 as in effect on the date hereof, or (II)
if in the normal course of business, no such determination is made in relation
to the Canadian Pension Plans, the Canadian equivalent of Statement of
Financial Accounting Standards No. 87 as in effect on the date hereof, in
either case such determination being based upon the actuarial assumptions that
would be used by the actuary for the Canadian Pension Plan in the termination
of that Canadian Pension Plan, exceeds (B) the fair market value of the assets
allocable thereto.

 

“Unpaid
Drawing” shall have the meaning provided in Section 3.4(a).

 

“Unpaid
Refinancing Amount” shall mean the aggregate principal amount of all
Existing Opco Notes (other than any Specified Existing Opco Notes) not tendered
pursuant to the Tender Offers.

 

“Unrestricted
Subsidiary” shall mean (a) any Subsidiary of the Borrower that is
formed or acquired after the Closing Date, provided that at such time
(or promptly thereafter) the Borrower designates such Subsidiary an
Unrestricted Subsidiary in a written notice to the Administrative Agent,
(b) any Restricted Subsidiary subsequently re-designated as an
Unrestricted Subsidiary by the Borrower in a written notice to the
Administrative Agent, provided that in the case of (a) and (b), (x) such
designation or re-designation shall be deemed to be an Investment on the date
of such designation or re-designation in an Unrestricted Subsidiary in an
amount equal to the sum of (i) the Borrower’s direct or indirect equity
ownership percentage of the net worth of such designated or re-designated
Restricted Subsidiary immediately prior to such designation or re-designation
(such net worth to be calculated without regard to any guarantee provided by
such designated or re-designated Restricted Subsidiary) and (ii) the aggregate
principal amount of any Indebtedness owed by such designated or re-designated
Restricted Subsidiary to the Borrower or any other Restricted Subsidiary
immediately prior to such designation or re-designation, all calculated, except
as set forth in the parenthetical to clause (i), on a consolidated basis in
accordance with GAAP and (y) no Default or Event of Default would result from
such designation or re-designation and (c) each Subsidiary of an
Unrestricted Subsidiary; provided, however, that (A) at the time
of any written designation or re-designation by the Borrower to the
Administrative Agent that any Unrestricted Subsidiary shall no longer
constitute an Unrestricted Subsidiary, such Unrestricted Subsidiary shall cease
to be an Unrestricted Subsidiary to the extent no Default or Event of Default
would result from such designation or re-designation (it being understood and
agreed that the designation or re-designation of any Unrestricted Subsidiary as
a Restricted Subsidiary shall constitute the incurrence by such Restricted
Subsidiary on the date of such designation or re-designation of any Indebtedness
or Liens of such designated or re-designated Unrestricted Subsidiary existing
immediately prior to such designation or re-designation) and (B) the Canadian
Borrower may not be re-designated as an Unrestricted Subsidiary.  On or promptly after the date of its
formation,

 

49

 

acquisition,
designation or re-designation, as applicable, each Unrestricted Subsidiary
(other than an Unrestricted Subsidiary that is a Foreign Subsidiary) shall have
entered into a tax sharing agreement containing terms that, in the reasonable
judgment of the Administrative Agent, provide for an appropriate allocation of
tax liabilities and benefits.

 

“US
Guarantee” shall mean the US Guarantee, made by Holdings and each US Subsidiary
Guarantor in favor of the Administrative Agent and the Canadian Administrative
Agent for the ratable benefit of the Lenders, substantially in the form of Exhibit
B-1, as the same may be amended, supplemented or otherwise modified from
time to time.

 

“US L/C
Fronting Fee” shall have the meaning provided in Section 4.1(c).

 

“US L/C
Participant” shall have the meaning provided in Section 3.3(a).

 

“US L/C
Participation” shall have the meaning provided in Section 3.3(a).

 

“US Letter
of Credit” shall have the meaning provided in Section 3.1(a).

 

“US Letter
of Credit Commitment” shall mean $80,000,000, as the same may be reduced
from time to time pursuant to Section 3.1(c).

 

“US Letter
of Credit Exposure” shall mean, with respect to any Lender, at any time,
the sum of (a) the amount of any Unpaid Drawings in respect of which such
Lender has made (or is required to have made) payments to the US Letter of
Credit Issuer pursuant to Section 3.4(a) at such time and (b) such Lender’s
Revolving Credit Commitment Percentage of the US Letters of Credit Outstanding
at such time (excluding the portion thereof consisting of Unpaid Drawings in
respect of which the Lenders have made (or are required to have made) payments
to the US Letter of Credit Issuer pursuant to Section 3.4(a)).

 

“US Letter
of Credit Fee” shall have the meaning provided in Section 4.1(b).

 

“US Letter
of Credit Issuer” shall mean Credit Suisse First Boston or any successor
pursuant to Section 3.6.  The US
Letter of Credit Issuer may, in its discretion, arrange for one or more US
Letters of Credit to be issued by Affiliates of the US Letter of Credit Issuer,
and in each such case the term “US Letter of Credit Issuer” shall include any
such Affiliate with respect to US Letters of Credit issued by such Affiliate.  In the event that there is more than one US
Letter of Credit Issuer at any time, references herein and in the other Credit
Documents to the US Letter of Credit Issuer shall be deemed to refer to the US
Letter of Credit Issuer in respect of the applicable US Letter of Credit or to
all US Letter of Credit Issuers, as the context requires.

 

“US Letters
of Credit Outstanding” shall mean, at any time, the sum of, without
duplication, (a) the aggregate Stated Amount of all outstanding US Letters
of Credit and (b) the aggregate amount of all Unpaid Drawings in respect
of all US Letters of Credit.

 

“US Letter
of Credit Request” shall have the meaning provided in Section 3.2.

 

50

 

“US
Revolving Credit Commitment” shall mean, (a) with respect to each Lender
that is a Lender on the date hereof, the amount set forth opposite such Lender’s
name on Schedule 1.1(c) as such Lender’s “US Revolving Credit Commitment”
and (b) in the case of any Lender that becomes a Lender after the date hereof,
the amount specified as such Lender’s “US Revolving Credit Commitment” in the
Assignment and Acceptance pursuant to which such Lender assumed a portion of
the US Total Revolving Credit Commitment, in each case of the same may be changed
from time to time pursuant to terms hereof. 
The US Total Revolving Credit Commitment as of the Closing Date is
$230,000,000.

 

“US
Revolving Credit Commitment Percentage” shall mean at any time, for each
Lender, the percentage obtained by dividing (a) such Lender’s US Revolving
Credit Commitment by (b) the US Total Revolving Credit Commitment, provided
that at any time when the US Total Revolving Credit Commitment shall have been
terminated, each Lender’s US Revolving Credit Commitment Percentage shall be
its US Revolving Credit Commitment Percentage as in effect immediately prior to
such termination.

 

“US
Revolving Credit Exposure” shall mean, with respect to any Lender at any
time, the sum of (a) the aggregate principal amount of the US Revolving
Credit Loans of such Lender then outstanding, and (b) such Lender’s US Letter
of Credit Exposure at such time.

 

“US
Revolving Credit Loan” shall have the meaning provided in
Section 2.1(b)(i).

 

“US
Subsidiary Guarantors” shall mean (a) each Domestic Subsidiary (other than
an Unrestricted Subsidiary) on the Closing Date and (b) each Domestic
Subsidiary that becomes a party to the US Guarantee after the Closing Date
pursuant to Section 9.11 or otherwise.

 

“US Total
Revolving Credit Commitment” shall mean the sum of the US Revolving Credit
Commitments of all the Lenders.

 

“Von
Hoffman” shall mean Von Hoffmann Corporation, a Delaware corporation and a
wholly owned subsidiary of Von Hoffmann Holdings.

 

“Von
Hoffmann Holdings” shall mean Von Hoffmann Holdings Inc., a Delaware
corporation.

 

“Von
Hoffmann Merger” shall mean the merger pursuant to and in accordance with
the Von Hoffmann Merger Agreement of the Von Hoffmann Merger Sub with and into
Von Hoffmann Holdings, with Von Hoffmann Holdings continuing as the surviving
corporation and the outstanding shares of common stock of Von Hoffmann Holdings
being converted into the right to receive the Von Hoffmann Merger
Consideration.

 

“Von
Hoffmann Merger Agreement” shall mean the Agreement and Plan of Merger
dated as of July 21, 2004, among Fusion, Von Hoffmann Merger Sub and Von
Hoffmann Holdings.

 

51

 

“Von
Hoffmann Merger Consideration” shall mean $650,000,000 in cash.

 

“Von
Hoffmann Merger Sub” shall mean VHH Merger, Inc., a Delaware corporation
and a wholly owned subsidiary of Fusion.

 

“Von
Hoffmann Perfection Certification” shall mean the collective reference to
certificates of Von Hoffmann Holdings and each Credit Party that is a
subsidiary of Von Hoffmann Holdings, in each case in the form of Exhibit F
or any other form approved by the Administrative Agent.

 

“Voting
Stock” shall mean, with respect to any Person, shares of such Person’s
capital stock having the right to vote for the election of directors of such
Person under ordinary circumstances.

 

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

 

SECTION 2.  Amount and Terms of Credit

 

2.1.          Commitments.  (a)  Subject to and upon the terms
and conditions herein set forth,

 

(i)      each Lender having a Tranche A Term Loan
Commitment severally agrees to make a loan or loans (each a “Tranche A Term
Loan”) on the Closing Date to the Borrower in Dollars, which Tranche A Term
Loans shall not exceed for any such Lender the Tranche A Term Loan Commitment
of such Lender and in the aggregate shall not exceed $150,000,000; and

 

(ii)     each Lender having a Tranche B Term Loan
Commitment severally agrees to make a loan or loans (each a “Tranche B Term
Loan”) to the Borrower in Dollars (x) on the Closing Date and (y) on the
Delayed Draw Date, which Tranche B Term Loans in the aggregate for any such
Lender shall not exceed the Tranche B Term Loan Commitment of such Lender and
in the aggregate for all such Lenders shall not exceed $870,000,000.

 

Such Term
Loans (i) shall be made on the Closing Date or the Delayed Draw Date, as
applicable, (ii) may at the option of the Borrower be incurred and
maintained as, and/or converted into, ABR Loans or LIBOR Term Loans, provided
that all such Term Loans made by each of the Lenders pursuant to the same
Borrowing shall, unless otherwise specifically provided herein, consist
entirely of Term Loans of the same Type, (iii) may be repaid or prepaid in
accordance with the provisions hereof, but once repaid or prepaid, may not be
reborrowed, (iv) shall not exceed for any such Lender the Tranche A Term Loan
Commitment or Tranche B Term Loan Commitment, as applicable, of such Lender and
(v) shall not exceed in the aggregate the

 

52

 

total of all
Tranche A Term Loan Commitments or Tranche B Term Loan Commitments, as applicable.  On the Tranche A Term Loan Maturity Date, all
Tranche A Term Loans shall be repaid in full. 
On the Tranche B Term Loan Maturity Date, all Tranche B Term Loans shall
be repaid in full.

 

(b)           (i)  Subject to and upon
the terms and conditions herein set forth, each Lender having a US Revolving
Credit Commitment severally agrees to make a loan or loans denominated in
Dollars (each a “US Revolving Credit Loan” and, collectively, the “US
Revolving Credit Loans” and, together with the Canadian Revolving Credit
Loans, the “Revolving Credit Loans”) to the Borrower, which US Revolving
Credit Loans (A) shall be made at any time and from time to time on and
after the Closing Date and prior to the Revolving Credit Maturity Date (provided
that the aggregate principal amount of Revolving Credit Loans and Swingline
Loans made on the Closing Date shall not exceed $115,000,000), (B) may, at
the option of the Borrower be incurred and maintained as, and/or converted
into, ABR Loans or LIBOR Revolving Credit Loans, provided that all US
Revolving Credit Loans made by each of the Lenders pursuant to the same
Borrowing shall, unless otherwise specifically provided herein, consist
entirely of US Revolving Credit Loans of the same Type, (C) may be repaid
and reborrowed in accordance with the provisions hereof, (D) shall not, for any
such Lender at any time, after giving effect thereto and to the application of
the proceeds thereof, result in such Lender’s US Revolving Credit Exposure at
such time exceeding such Lender’s US Revolving Credit Commitment at such time
and (E) shall not, after giving effect thereto and to the application of the
proceeds thereof, result at any time in the aggregate amount of the Lenders’ US
Revolving Credit Exposures at such time exceeding the US Total Revolving Credit
Commitment then in effect.

 

(ii)     Subject to and upon the terms and conditions herein set
forth, each Canadian Lender having a Canadian Revolving Credit Commitment
severally agrees to make a loan or loans denominated in Canadian Dollars or
Dollars to the Canadian Borrower or a loan or loans denominated in Dollars to
the Borrower (each a “Canadian Revolving Credit Loan” and, collectively,
the “Canadian Revolving Credit Loans”), which Canadian Revolving Credit
Loans (A) shall be made at any time and from time to time on and after the
Closing Date and prior to the Revolving Credit Maturity Date, (B) shall be
incurred and maintained (x) as Canadian Prime Loans or BA Loans if denominated
in Canadian Dollars or (y) as Cdn ABR Loans or LIBOR Revolving Credit Loans if
denominated in Dollars and made to the Canadian Borrower, or (z) as ABR Loans
or LIBOR Revolving Credit Loans if denominated in Dollars and made to the
Borrower; provided that all Canadian Revolving Credit Loans made by each
of the Canadian Lenders pursuant to the same Borrowing shall, unless otherwise
specifically provided herein, consist entirely of Canadian Revolving Credit
Loans of the same Type made to the same borrower, (C) may be repaid and
reborrowed in accordance with the provisions hereof, (D) shall not, for
any such Canadian Lender at any time, after giving effect thereto and to the
application of the proceeds thereof, result in such Canadian Lender’s Canadian
Revolving Credit Exposure at such time exceeding such Canadian Lender’s
Canadian Revolving Credit Commitment at such time, (E) shall not, after giving
effect thereto and to the application of the proceeds thereof, result at any
time in the aggregate amount of the Canadian Lenders’ Canadian Revolving Credit
Exposures at such time exceeding the Canadian Total Revolving Credit Commitment
then in

 

53

 

effect, and (F) if made to the Canadian
Borrower shall be made by a Canadian Lender that is a Canadian Resident or a
permitted assignee of such Canadian Lender pursuant to Section
13.6(b)(ii).  Each Canadian Lender, if it
is not a “United States person” (as such term is defined in Section 7701(a)(30)
of the Code), shall designate by notice in writing to the Administrative Agent
and the Canadian Administrative Agent on the Closing Date, and otherwise from
time to time, a Related Affiliate of such Lender that is either a “United
States person” (as such term is defined in Section 7701(a)(30) of the Code) or
is a Non-US Lender that has fulfilled the requirements in Section 5.4(b), for
the purposes of making Canadian Revolving Credit Loans available to the
Borrower.

 

(iii)    Each Lender may at its option make any LIBOR Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such
Loan, provided that (A) any exercise of such option shall not
affect the obligation of the Borrower or the Canadian Borrower, as the case may
be, to repay such Loan, (B) in exercising such option, such Lender shall
use its reasonable efforts to minimize any increased costs to the Borrower or
the Canadian Borrower, as the case may be, resulting therefrom (which
obligation of the Lender shall not require it to take, or refrain from taking,
actions that it determines would result in increased costs for which it will
not be compensated hereunder or that it determines would be otherwise disadvantageous
to it and in the event of such request for costs for which compensation is
provided under this Agreement, the provisions of Section 3.5 shall apply)
and (C) if a LIBOR Loan is made to the Canadian Borrower, it shall be made by a
Canadian Lender that is a Canadian Resident or a permitted assignee of such
Canadian Lender pursuant to Section 13.6(b)(ii).  On the Revolving Credit Maturity Date, all
Revolving Credit Loans shall be repaid in full.

 

(c)           Subject to and upon the terms and
conditions herein set forth, the Swingline Lender in its individual capacity
agrees, at any time and from time to time on and after the Closing Date and
prior to the Swingline Maturity Date, to make a loan or loans (each a “Swingline
Loan” and, collectively, the “Swingline Loans”) to the Borrower
denominated in Dollars, which Swingline Loans (i) shall be ABR Loans,
(ii) shall have the benefit of the provisions of Section 2.1(d),
(iii) shall not exceed at any time outstanding the Swingline Commitment,
(iv) shall not, after giving effect thereto and to the application of the
proceeds thereof, result at any time in the aggregate amount of the Lenders’ US
Revolving Credit Exposures at such time exceeding the US Total Revolving Credit
Commitment then in effect and (v) may be repaid and reborrowed in accordance
with the provisions hereof.  On the
Swingline Maturity Date, each outstanding Swingline Loan shall be repaid in
full.  The Swingline Lender shall not
make any Swingline Loan after receiving a written notice from the Borrower, the
Canadian Borrower or any Lender stating that a Default or Event of Default
exists and is continuing until such time as the Swingline Lender shall have received
written notice of (i) rescission of all such notices from the party or
parties originally delivering such notice or (ii) the waiver of such
Default or Event of Default in accordance with the provisions of
Section 13.1.

 

(d)           On any Business Day, the Swingline
Lender may, in its sole discretion, give notice to the Lenders that all
then-outstanding Swingline Loans shall be funded with a Borrowing of US
Revolving Credit Loans, in which case US Revolving Credit Loans

 

54

 

constituting ABR Loans (each such Borrowing,
a “Mandatory Borrowing”) shall be made on the immediately succeeding
Business Day by all Lenders pro rata based
on each Lender’s US Revolving Credit Commitment Percentage, and the proceeds
thereof shall be applied directly to the Swingline Lender to repay the
Swingline Lender for such outstanding Swingline Loans.  Each Lender hereby irrevocably agrees to make
such US Revolving Credit Loans upon one Business Day’s notice pursuant to each
Mandatory Borrowing in the amount and in the manner specified in the preceding
sentence and on the date specified to it in writing by the Swingline Lender
notwithstanding (i) that the amount of the Mandatory Borrowing may not comply
with the minimum amount for each Borrowing specified in Section 2.2, (ii)
whether any conditions specified in Section 7 are then satisfied, (iii) whether
a Default or an Event of Default has occurred and is continuing, (iv) the date
of such Mandatory Borrowing or (v) any reduction in the US Total Revolving
Credit Commitment after any such Swingline Loans were made.  In the event that, in the sole judgment of
the Swingline Lender, any Mandatory Borrowing cannot for any reason be made on
the date otherwise required above (including as a result of the commencement of
a proceeding under the Bankruptcy Code in respect of the Borrower), each Lender
hereby agrees that it shall forthwith purchase from the Swingline Lender
(without recourse or warranty) such participation of the outstanding Swingline
Loans as shall be necessary to cause the Lenders to share in such Swingline
Loans ratably based upon their respective US Revolving Credit Commitment
Percentages, provided that all principal and interest payable on such
Swingline Loans shall be for the account of the Swingline Lender until the date
the respective participation is purchased and, to the extent attributable to
the purchased participation, shall be payable to the Lender purchasing same
from and after such date of purchase.

 

2.2.          Minimum
Amount of Each Borrowing; Maximum Number of Borrowings.  The aggregate principal amount of each
Borrowing of Term Loans or Canadian Revolving Credit Loans shall be in a
multiple of $1,000,000 or C$100,000 (in the case of a Borrowing denominated in
C$), the aggregate principal amount of U.S. Revolving Credit Loans shall be in
a multiple of $500,000 and Swingline Loans shall be in a multiple of $10,000
and, in each case, shall not be less than the Minimum Borrowing Amount with
respect thereto (except that Mandatory Borrowings shall be made in the amounts
required by Section 2.1(d)).  More than
one Borrowing may be incurred on any date, provided that at no time
shall there be outstanding more than 16 Borrowings of LIBOR Loans and BA
loans under this Agreement.

 

2.3.          Notice of
Borrowing.  (a)  The
Borrower shall give the Administrative Agent at the Administrative Agent’s
Office (i) prior to 12:00 Noon (New York City time) at least three
Business Days’ prior written notice (or telephonic notice promptly confirmed in
writing) of the Borrowing of Term Loans if all or any of such Term Loans are to
be initially LIBOR Loans, and (ii) prior written notice (or telephonic
notice promptly confirmed in writing) prior to 10:00 a.m. (New York City
time) on the date of the Borrowing of Term Loans if all such Term Loans are to
be ABR Loans.  Such notice (together with
each notice of a Borrowing of Revolving Credit Loans pursuant to
Section 2.3(b) or 2.3(c) and each notice of a Borrowing of Swingline Loans
pursuant to Section 2.3(d), a “Notice of Borrowing”) shall be
irrevocable and shall specify (i) the aggregate principal amount of the
Term Loans to be made pursuant to such Borrowing, (ii) the date of the
Borrowing (which shall be the Closing Date or, if applicable, the

 

55

 

Delayed Draw Date) and (iii) whether the
Term Loans shall consist of ABR Loans and/or LIBOR Term Loans and, if the Term
Loans are to include LIBOR Term Loans, the Interest Period to be initially
applicable thereto.  The Administrative
Agent shall promptly give each Lender written notice (or telephonic notice
promptly confirmed in writing) of the proposed Borrowing of Term Loans, of such
Lender’s proportionate share thereof and of the other matters covered by the
related Notice of Borrowing.

 

(b)           Whenever the Borrower desires to
incur US Revolving Credit Loans or Canadian Revolving Credit Loans denominated
in Dollars hereunder (other than Mandatory Borrowings or Borrowings to repay
Unpaid Drawings), it shall give the Administrative Agent at the Administrative
Agent’s Office, (i) prior to 12:00 Noon (New York City time) at least three
Business Days’ prior written notice (or telephonic notice promptly confirmed in
writing) of each Borrowing of LIBOR Revolving Credit Loans, and (ii) prior
written notice (or telephonic notice promptly confirmed in writing) prior to
12:00 Noon (New York City time) on the date of Borrowing of Revolving
Credit Loans if all such Revolving Credit Loans are to be ABR Loans.  Each such Notice of Borrowing, except as
otherwise expressly provided in Section 2.10, shall be irrevocable and shall
specify (i) whether the Revolving Credit Loans are Canadian Revolving Credit
Loans or US Revolving Credit Loans, as applicable, (ii) the aggregate
principal amount of the Revolving Credit Loans to be made pursuant to such
Borrowing, (iii) the date of Borrowing (which shall be a Business Day) and (iv)
whether the respective Borrowing shall consist of ABR Loans or LIBOR Revolving
Credit Loans and, if LIBOR Revolving Credit Loans, the Interest Period to be
initially applicable thereto.  The Administrative
Agent shall promptly give each applicable Lender written notice (or telephonic
notice promptly confirmed in writing) of each proposed Borrowing of Revolving
Credit Loans, of such Lender’s proportionate share thereof and of the other
matters covered by the related Notice of Borrowing.

 

(c)           Whenever the Canadian Borrower
desires to incur Canadian Revolving Credit Loans in Dollars or Canadian Dollars
hereunder (other than Borrowings to repay Unpaid Drawings), it shall give the
Canadian Administrative Agent at the Canadian Administrative Agent’s Office,
(i) prior to 12:00 Noon (Toronto time) at least three Business Days’ prior
written notice (or telephonic notice promptly confirmed in writing) of each
Canadian Borrowing of BA Loans or LIBOR Loans, and (ii) prior to 12:00 Noon
(Toronto time) at least one Business Day’s prior written notice (or telephonic
notice promptly confirmed in writing) of each Canadian Borrowing of Cdn ABR
Loans or Canadian Prime Loans.  Each such
Notice of Borrowing, except as otherwise expressly provided in Section 2.10,
shall be irrevocable and shall specify (i) the aggregate principal amount of
the Revolving Credit Loans to be made pursuant to such Borrowing, (ii) the date
of Borrowing (which shall be a Business Day) and (iii) whether the respective
Borrowing shall consist of BA Loans, LIBOR Loans, Canadian Prime Loans or Cdn
ABR Loans and, if BA Loans or LIBOR Loans, the Interest Period to be initially
applicable thereto.  The Canadian
Administrative Agent shall promptly give each Canadian Lender written notice (or
telephonic notice promptly confirmed in writing) of each proposed Borrowing of
Revolving Credit Loans, of such Lender’s proportionate share thereof and of the
other matters covered by the related Notice of Borrowing.

 

56

 

(d)           Whenever the Borrower desires to
incur Swingline Loans hereunder, it shall give the Administrative Agent written
notice (or telephonic notice promptly confirmed in writing) of each Borrowing
of Swingline Loans prior to 2:30 p.m. (New York City time) on the date of such
Borrowing.  Each such notice shall be irrevocable
and shall specify (i) the aggregate principal amount of the Swingline Loans to
be made pursuant to such Borrowing and (ii) the date of Borrowing (which shall
be a Business Day).  The Administrative
Agent shall promptly give the Swingline Lender written notice (or telephonic
notice promptly confirmed in writing) of each proposed Borrowing of Swingline
Loans and of the other matters covered by the related Notice of Borrowing.

 

(e)           Mandatory Borrowings shall be made
upon the notice specified in Section 2.1(d), with the Borrower irrevocably
agreeing, by its incurrence of any Swingline Loan, to the making of Mandatory
Borrowings as set forth in such Section.

 

(f)            Borrowings to reimburse Unpaid
Drawings shall be made upon the notice specified in Section 3.4(a).

 

(g)           Without in any way limiting the
obligation of the Borrower or the Canadian Borrower, as the case may be, to
confirm in writing any notice it may give hereunder by telephone, the
Administrative Agent and the Canadian Administrative Agent may act prior to
receipt of written confirmation without liability upon the basis of such
telephonic notice believed by the Administrative Agent and the Canadian
Administrative Agent in good faith to be from an Authorized Officer of the
Borrower or the Canadian Borrower, as the case may be.  In each such case, the Borrower and the
Canadian Borrower each hereby waives the right to dispute the Administrative
Agent’s and the Canadian Administrative Agent’s record of the terms of any such
telephonic notice.

 

2.4.          Disbursement
of Funds.  (a)  No
later than 12:00 Noon (New York City time) on the date specified in each Notice
of Borrowing (including Mandatory Borrowings), each Lender will make available
its pro rata portion, if any, of
each Borrowing requested to be made on such date in the manner provided below,
provided that all Swingline Loans shall be made available in the full amount
thereof by the Swingline Lender promptly following receipt of the request
therefor.

 

(b)           Each Lender shall make available all
amounts it is to fund to the Borrower under any Borrowing in immediately
available Dollars to the Administrative Agent at the Administrative Agent’s
Office and the Administrative Agent will (except in the case of Mandatory
Borrowings and Borrowings to repay Unpaid Drawings) make available to the
Borrower, by depositing to the Borrower’s account (as designated by it in a
written notice to the Administrative Agent from time to time) the aggregate of
the amounts so made available in Dollars. 
Each Canadian Lender shall make available all amounts it is to fund to
the Canadian Borrower under any Canadian Borrowing in immediately available
Dollars or Canadian Dollars, as applicable, to the Canadian Administrative
Agent at the Canadian Administrative Agent’s Office and the Canadian
Administrative Agent will (except in the case of Borrowings to repay Unpaid
Drawings) make available to the Canadian Borrower, by depositing to the
Canadian 

 

57

 

Borrower’s account (as designated by it in a
written notice to the Canadian Administrative Agent from time to time) the
aggregate of the amounts so made available in Canadian Dollars or Dollars, as
applicable.  Unless the Administrative
Agent or the Canadian Administrative Agent (in the case of Canadian Borrowings)
shall have been notified by any Lender prior to the date of any such Borrowing
that such Lender does not intend to make available to the Administrative Agent
or the Canadian Administrative Agent (in the case of Canadian Borrowings) its
portion of the Borrowing or Borrowings to be made on such date, the
Administrative Agent or the Canadian Administrative Agent (in the case of
Canadian Borrowings) may assume that such Lender has made such amount available
to the Administrative Agent or the Canadian Administrative Agent (in the case
of Canadian Borrowings) on such date of Borrowing, and the Administrative Agent
and the Canadian Administrative Agent (in the case of Canadian Borrowings), in
reliance upon such assumption, may (in its sole discretion and without any
obligation to do so) make available to the Borrower or the Canadian Borrower,
as the case may be, a corresponding amount. 
If such corresponding amount is not in fact made available to the
Administrative Agent or the Canadian Administrative Agent (in the case of
Canadian Borrowings) by such Lender and the Administrative Agent or the
Canadian Administrative Agent (in the case of Canadian Borrowings) has made
available same to the Borrower or the Canadian Borrower, as the case may be,
the Administrative Agent or the Canadian Administrative Agent (in the case of
Canadian Borrowings) shall be entitled to recover such corresponding amount
from such Lender.  If such Lender does
not pay such corresponding amount forthwith upon the Administrative Agent’s or
the Canadian Administrative Agent’s (in the case of Canadian Borrowings) demand
therefor the Administrative Agent or the Canadian Administrative Agent (in the
case of Canadian Borrowings) shall promptly notify the Borrower or the Canadian
Borrower, as the case may be, and the Borrower or the Canadian Borrower, as the
case may be, shall immediately pay such corresponding amount to the
Administrative Agent or the Canadian Administrative Agent (in the case of
Canadian Borrowings).  The Administrative
Agent or the Canadian Administrative Agent (in the case of Canadian Borrowings)
shall also be entitled to recover from such Lender or the Borrower or the
Canadian Borrower, as the case may be, interest on such corresponding amount in
respect of each day from the date such corresponding amount was made available
by the Administrative Agent or the Canadian Administrative Agent (in the case
of Canadian Borrowings) to the Borrower or the Canadian Borrower, as the case
may be, to the date such corresponding amount is recovered by the Administrative
Agent or the Canadian Administrative Agent (in the case of Canadian
Borrowings), at a rate per annum equal
to (i) if paid by such Lender, the Federal Funds Effective Rate (or, in the
case of an amount owing in respect of a Canadian Borrowing, the rate reasonably
determined by the Canadian Administrative Agent to be the cost to it of funding
such amount) or (ii) if paid by the Borrower or the Canadian Borrower, as the
case may be, the then-applicable rate of interest or fees, calculated in
accordance with Section 2.8, for the respective Loans comprising the applicable
Borrowing.

 

(c)           Nothing in this Section 2.4 shall be
deemed to relieve any Lender from its obligation to fulfill its commitments
hereunder or to prejudice any rights that the Borrower or the Canadian
Borrower, as the case may be, may have against any Lender as a result of any
default by such Lender hereunder (it being understood, however, that no Lender
shall be responsible for the failure of any other Lender to fulfill its
commitments hereunder).

 

58

 

2.5.          Repayment
of Loans; Evidence of Debt. 
(a)  The Borrower shall repay to the Administrative Agent, for
the benefit of the Lenders, (i) on the Tranche A Term Loan Maturity Date, the
then-unpaid Tranche A Term Loans, in Dollars and (ii) on the Tranche B Term
Loan Maturity Date, the then-unpaid Tranche B Term Loans, in Dollars.  The Borrower shall repay to the
Administrative Agent in Dollars, for the benefit of the applicable Lenders, on
the Revolving Credit Maturity Date, the then-unpaid US Revolving Credit Loans
and Canadian Revolving Credit Loans made to the Borrower.  The Canadian Borrower shall repay to the
Canadian Administrative Agent in Dollars or Canadian Dollars, as the case may
be, for the benefit of the applicable Lenders, on the Revolving Credit Maturity
Date, the then-unpaid Canadian Revolving Credit Loans made to the Canadian
Borrower.  The Borrower shall repay to
the Administrative Agent, in Dollars, for the account of the Swingline Lender,
on the Swingline Maturity Date, the then-unpaid Swingline Loans.

 

(b)           The Borrower shall repay to the
Administrative Agent, in Dollars, for the benefit of the Tranche A Term Loan
Lenders, on each date set forth below (each a “Tranche A Repayment Date”),
the principal amount of the Tranche A Term Loans equal to (x) the outstanding
principal amount of Tranche A Term Loans immediately after closing on the
Closing Date multiplied by (y) the percentage set forth below opposite such
Tranche A Repayment Date (each a “Tranche A Repayment Amount”):

 

	
  Date

  	
   

  	
  Tranche A

  Repayment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  July 1, 2005

  	
   

  	
  3.75

  	
  %

  
	
  December 30,
  2005

  	
   

  	
  3.75

  	
  %

  
	
  June 30, 2006

  	
   

  	
  3.75

  	
  %

  
	
  December 29,
  2006

  	
   

  	
  3.75

  	
  %

  
	
  June 29, 2007

  	
   

  	
  5.00

  	
  %

  
	
  December 28,
  2007

  	
   

  	
  5.00

  	
  %

  
	
  June 27, 2008

  	
   

  	
  5.00

  	
  %

  
	
  January 2, 2009

  	
   

  	
  5.00

  	
  %

  
	
  July 2, 2009

  	
   

  	
  5.00

  	
  %

  
	
  December 31,
  2009

  	
   

  	
  5.00

  	
  %

  
	
  July 2, 2010

  	
   

  	
  25.00

  	
  %

  
	
  Tranche A Term
  Loan Maturity Date

  	
   

  	
  30.00

  	
  %

  

 

(c)           The Borrower shall repay to the
Administrative Agent, in Dollars, for the benefit of the Tranche B Term Loan
Lenders, on each date set forth below (each a “Tranche B Repayment Date”),
the principal amount of the Tranche B Term Loans equal to (x) the outstanding
principal amount of Tranche B Term Loans immediately after any Borrowings of
Tranche B Term Loans on the Delayed Draw Date multiplied by (y) the percentage
set forth below opposite such Tranche B Repayment Date (each a “Tranche B
Repayment Amount”):

 

59

 

	
  Date

  	
   

  	
  Tranche B

  Repayment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  July 1, 2005

  	
   

  	
  0.50

  	
  %

  
	
  December 30,
  2005

  	
   

  	
  0.50

  	
  %

  
	
  June 30, 2006

  	
   

  	
  0.50

  	
  %

  
	
  December 29,
  2006

  	
   

  	
  0.50

  	
  %

  
	
  June 29, 2007

  	
   

  	
  0.50

  	
  %

  
	
  December 28,
  2007

  	
   

  	
  0.50

  	
  %

  
	
  June 27, 2008

  	
   

  	
  0.50

  	
  %

  
	
  January 2, 2009

  	
   

  	
  0.50

  	
  %

  
	
  July 2, 2009

  	
   

  	
  0.50

  	
  %

  
	
  December 31,
  2009

  	
   

  	
  0.50

  	
  %

  
	
  July 2, 2010

  	
   

  	
  0.50

  	
  %

  
	
  December 30,
  2010

  	
   

  	
  0.50

  	
  %

  
	
  July 1, 2011

  	
   

  	
  0.50

  	
  %

  
	
  Tranche B Term
  Loan Maturity Date

  	
   

  	
  93.50

  	
  %

  

 

(d)           Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower and the Canadian Borrower, as the case may be, to
the appropriate lending office of such Lender resulting from each Loan made by
such lending office of such Lender from time to time, including the amounts of
principal and interest payable and paid to such lending office of such Lender
from time to time under this Agreement.

 

(e)           The Administrative Agent shall
maintain the Register pursuant to Section 13.6(b), and a subaccount for
each Lender, in which Register and subaccounts (taken together) shall be
recorded (i) the amount and currency of each Loan made hereunder, the Class and
Type of each Loan made and, if applicable, the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or
to become due and payable from the Borrower and the Canadian Borrower, as the
case may be, to each Lender or the Swingline Lender hereunder and (iii) the
amount of any sum received by the Administrative Agent and the Canadian
Administrative Agent hereunder from the Borrower and the Canadian Borrower, as
the case may be, and each Lender’s share thereof.

 

(f)            The entries made in the Register and
accounts and subaccounts maintained pursuant to paragraphs (d) and (e) of this
Section 2.5 shall, to the extent permitted by applicable law, be prima
facie evidence of the existence and amounts of the obligations of the Borrower
and the Canadian Borrower therein recorded; provided, however,
that the failure of any Lender or the Administrative Agent to maintain such
account, such Register or such subaccount, as applicable, or any error therein,
shall not in any manner affect the obligation of the Borrower or the Canadian
Borrower to repay (with applicable interest) the Loans made to the Borrower or
the Canadian Borrower by such Lender in accordance with the terms of this
Agreement.

 

2.6.          Conversions
and Continuations. 
(a)  Each of the Borrower and the Canadian Borrower shall have
the option on any Business Day to convert all or a portion equal to at least
the Minimum Borrowing Amount of the outstanding principal amount of Term Loans
or

 

60

 

Revolving Credit Loans made to such Borrower
(as applicable) of one Type into a Borrowing or Borrowings of another Type in
the same currency and the Borrower or the Canadian Borrower, as the case may
be, shall have the option on any Business Day to continue the outstanding principal
amount of any LIBOR Term Loans or LIBOR Revolving Credit Loans as LIBOR Term
Loans or LIBOR Revolving Credit Loans, as the case may be, for an additional
Interest Period, provided that (i) no partial conversion of BA Loans or
LIBOR Term Loans or LIBOR Revolving Credit Loans shall reduce the outstanding
principal amount of BA Loans or LIBOR Term Loans or LIBOR Revolving Credit
Loans made pursuant to a single Borrowing to less than the Minimum Borrowing
Amount, (ii) Cdn ABR Loans and ABR Loans may not be converted into LIBOR Term
Loans or LIBOR Revolving Credit Loans and Canadian Prime Loans may not be
converted into BA Loans if a Default or Event of Default is in existence on the
date of the conversion and the Administrative Agent has or the Required Lenders
have determined in its or their sole discretion not to permit such conversion,
(iii) BA Loans and LIBOR Loans may not be continued as BA Loans or LIBOR
Loans, respectively, for an additional Interest Period if a Default or Event of
Default is in existence on the date of the proposed continuation and the
Administrative Agent has or the Required Lenders have determined in its or
their sole discretion not to permit such continuation, (iv) no conversion or
continuation of BA Loans may be made on a day other than the last day of the
Interest Period applicable thereto and (v) Borrowings resulting from
conversions pursuant to this Section 2.6 shall be limited in number as provided
in Section 2.2.  Each such conversion or
continuation shall be effected by the Borrower or the Canadian Borrower, as the
case may be, by giving the Administrative Agent or the Canadian Administrative
Agent at the applicable Administrative Agent’s Office prior to 12:00 Noon (New
York City time) at least three Business Days’ (or one Business Day’s notice in
the case of a conversion into Cdn ABR Loans, ABR Loans or Canadian Prime Loans)
prior written notice (or telephonic notice promptly confirmed in writing) (each
a “Notice of Conversion or Continuation”) specifying the Term Loans or
Revolving Credit Loans to be so converted or continued, the Type of Term Loans
or Revolving Credit Loans to be converted or continued into and, if such Term
Loans or Revolving Credit Loans are to be converted into or continued as BA Loans
or LIBOR Loans, the Interest Period to be initially applicable thereto.  The Administrative Agent (or the Canadian
Administrative Agent, in the case of Canadian Borrowings) shall give each
Lender notice as promptly as practicable of any such proposed conversion or continuation
affecting any of its Term Loans or Revolving Credit Loans.

 

(b)           If any Default or Event of Default is
in existence at the time of any proposed continuation of any BA Loans or LIBOR
Loans, as the case may be, and the Administrative Agent has or the Required
Lenders have determined in its or their sole discretion not to permit such
continuation, such BA Loans or LIBOR Loans shall be automatically converted on
the last day of the then-current Interest Period (i) in respect of LIBOR
Loans, into ABR Loans or Cdn ABR Loans (in the case of a Canadian Borrowing)
and (ii) in respect of BA Loans, into Canadian Prime Loans.  If upon the expiration of any Interest Period
in respect of BA Loans or LIBOR Loans, the Borrower or the Canadian Borrower,
as the case may be, has failed to elect a new Interest Period to be applicable
thereto as provided in paragraph (a) above, the Borrower or the Canadian
Borrower, as the case may be, shall be deemed to have elected to continue such
Borrowing of BA Loans or LIBOR Loans, as the case may be, into a Borrowing of

 

61

 

Canadian Prime Loans or ABR Loans or Cdn ABR
Loans (in the case of a Canadian Borrowing), as the case may be, effective as
of the expiration date of such then-current Interest Period.

 

2.7.          Pro Rata
Borrowings.  Each Borrowing of
Term Loans of any Class under this Agreement shall be granted by the Lenders pro rata on the basis of their
then-applicable Term Loan Commitments of such Class.  Each Borrowing of US Revolving Credit Loans
under this Agreement shall be granted by the Lenders pro rata on the basis of their then-applicable US Revolving
Credit Commitments.  Each Borrowing of
Canadian Revolving Credit Loans under this Agreement shall be granted by the
Canadian Lenders (or their Related Affiliates if applicable) pro rata on the basis of their
then-applicable Canadian Revolving Credit Commitments.  Each Borrowing of New Tranche B Term Loans
under this Agreement shall be granted by the Lenders pro rata on the basis of their then-applicable New Tranche B
Term Loan Commitments.  It is understood
that no Lender shall be responsible for any default by any other Lender in its
obligation to make Loans hereunder and that each Lender shall be obligated to
make the Loans provided to be made by it hereunder, regardless of the failure
of any other Lender to fulfill its commitments hereunder.

 

2.8.          Interest.  (a)  (i) The unpaid principal
amount of each ABR Loan shall bear interest from the date of the Borrowing
thereof to but excluding the date of repayment thereof at a rate per annum that shall at all times be the
Applicable ABR Margin plus the ABR in effect from time to time, (ii) the unpaid
principal amount of each Cdn ABR Loan shall bear interest from the date of the
Borrowing thereof to but excluding the date of repayment thereof at a rate per
annum that shall at all times be the Applicable ABR Margin plus the Cdn ABR in
effect from time to time, and (iii) the unpaid principal amount of each
Canadian Prime Loan shall bear interest from the date of the Borrowing thereof
to but excluding the date of repayment thereof at a rate per annum that shall
at all times be the Applicable ABR Margin plus the Canadian Prime Rate in
effect from time to time.

 

(b)           (i) The unpaid principal amount
of each LIBOR Loan shall bear interest from the date of the Borrowing thereof
to but excluding the date of repayment thereof at a rate per annum
that shall at all times be the Applicable LIBOR Margin in effect from time to
time plus the relevant LIBOR Rate and (ii) the Canadian Borrower shall pay
to each Lender that accepts or advances a BA Loan, as a condition of and at the
time of such acceptance or advance, a fee at the rate of the then Applicable
Stamping Fee calculated on the basis of a year of 365 days on the face
amount at maturity (or the principal amount in the case of a BA Equivalent
Loan) of such Bankers’ Acceptance for the period from and including the date of
acceptance (or advance in the case of a BA Equivalent Loan) of such Bankers’
Acceptance for the period from and including the date of acceptance to but
excluding the maturity date of such Bankers’ Acceptance.

 

(c)           Any amount (whether of principal,
interest or Fees) not paid when due hereunder or under any other Credit
Document (whether at the stated maturity, by acceleration or otherwise) shall
bear interest, to the extent permitted by law (after as well as before
judgment), payable on demand, (a) in the case of principal, at the rate that
would otherwise be applicable thereto plus 2% per annum
and (b) in all other cases, at a rate per annum equal
to the rate that would be applicable to an ABR Loan that is a Tranche B Term
Loan plus 2.00% per annum, in

 

62

 

each case from and including the date of such
non-payment to but excluding the date on which such amount is paid in full.

 

(d)           Interest on each Loan shall accrue
from and including the date of any Borrowing to but excluding the date of any
repayment thereof and shall be payable (i) in respect of each Canadian Prime
Loan, Cdn ABR Loan and ABR Loan, quarterly in arrears on the last Business Day
of each fiscal quarter of the Borrower, (ii) in respect of each LIBOR Loan, on
the last day of each Interest Period applicable thereto and, in the case of an
Interest Period in excess of three months, on each date occurring at
three-month intervals after the first day of such Interest Period and
(iii) in respect of each Loan (except, other than in the case of
prepayments, any Canadian Prime Loan, Cdn ABR Loan or ABR Loan), on any
prepayment (on the amount prepaid), on conversion into a Canadian Prime Loan,
Cdn ABR Loan or ABR Loan, at maturity (whether by acceleration or otherwise)
and, after such maturity, on demand.

 

(e)           All computations of interest
hereunder shall be made in accordance with Section 5.5.

 

(f)            The Administrative Agent, upon
determining the interest rate for any Borrowing of LIBOR Loans, shall promptly
notify the Borrower (on its own behalf and on behalf of the Canadian Borrower)
and the relevant Lenders thereof.  Each
such determination shall, absent clearly demonstrable error, be final and conclusive
and binding on all parties hereto.

 

2.9.          Interest
Periods.  (a) At the time
the Borrower or the Canadian Borrower, as applicable, gives a Notice of
Borrowing or Notice of Conversion or Continuation in respect of the making of,
or conversion into or continuation as, a Borrowing of LIBOR Loans (in the case
of the initial Interest Period applicable thereto) or prior to 10:00 a.m. (New
York City time) on the third Business Day prior to the expiration of an
Interest Period applicable to a Borrowing of LIBOR Loans, the Borrower or the
Canadian Borrower, as applicable, shall have the right to elect by giving the
Administrative Agent or the Canadian Administrative Agent (in the case of the
Canadian Borrower) written notice (or telephonic notice promptly confirmed in
writing) the Interest Period applicable to such Borrowing, which Interest
Period shall, at the option of the Borrower or the Canadian Borrower, as
applicable, be a one, two, three, six or (in the case of Revolving Credit
Loans, if available to all the Lenders making such loans as determined by such
Lenders in good faith based on prevailing market conditions) a nine or twelve
month period, provided that the initial Interest Period may be for a period
less than one month if agreed upon by the Borrower (on its own behalf and on
behalf of the Canadian Borrower) and the Agents.  Notwithstanding anything to the contrary
contained above:

 

(i)      the initial Interest Period for any
Borrowing of LIBOR Loans shall commence on the date of such Borrowing
(including the date of any conversion from a Borrowing of ABR Loans or Cdn ABR
Loans, as applicable) and shall end on the numerically corresponding day in the
calendar month that is one, two, three, six (or, if applicable as provided
above) nine or twelve months thereafter, and each Interest Period occurring
thereafter in respect of such Borrowing shall commence on the day on which the
next preceding Interest Period expires;

 

63

 

(ii)     if any Interest Period relating to a
Borrowing of LIBOR Revolving Credit Loans begins on the last Business Day of a
calendar month or begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period,
such Interest Period shall end on the last Business Day of the calendar month
at the end of such Interest Period;

 

(iii)    if any Interest Period would otherwise
expire on a day that is not a Business Day, such Interest Period shall expire
on the next succeeding Business Day, provided that if any Interest
Period in respect of a LIBOR Loan would otherwise expire on a day that is not a
Business Day but is a day of the month after which no further Business Day
occurs in such month, such Interest Period shall expire on the next preceding
Business Day; and

 

(iv)    the Borrower shall not be entitled to elect
any Interest Period in respect of any LIBOR Loan if such Interest Period would
extend beyond the applicable Maturity Date of such Loan.

 

(b)           At the time the Canadian Borrower
gives a Notice of Borrowing or Notice of Continuation in respect of the making
of, or continuation into or continuation as, a Borrowing of BA Loans prior to
12:00 noon (Toronto time) on the third Business Day prior to the
applicable date of making or continuation of such BA Loans, the Canadian
Borrower shall have the right to elect by giving the Canadian Administrative
Agent written notice (or telephonic notice promptly confirmed in writing) of
the Interest Period applicable to such Borrowing, which Interest Period shall,
at the option of the Canadian Borrower, be 30, 60, 90 or 180 days (in each
case subject to availability), or any other number of days from 1 to 180 with
the consent of each applicable Canadian Lender. 
Notwithstanding anything to the contrary contained above:

 

(i)      the initial Interest Period for any
Borrowing of BA Loans shall commence on the date of such Borrowing (including
the date of any continuation from a Borrowing of Canadian Prime Loans) and each
Interest Period occurring thereafter in respect of such Borrowing shall
commence on the day on which the next preceding Interest Period expires;

 

(ii)     the Canadian Borrower shall not be entitled
to elect any Interest Period in respect of any BA Loan if such Interest Period
would extend beyond the applicable Maturity Date of such BA Loan;

 

(iii)    no BA Loan shall mature on a day which is
not a Business Day and if any Interest Period would otherwise expire on a day
that is not a Business Day, such Interest Period shall expire on the next
succeeding Business Day; and

 

(iv)    if the Canadian Borrower fails to provide a
Notice of Continuation within the time period required in Section 2.6(a) in
respect of BA Loans, such BA Loans shall automatically be converted into
Canadian Prime Loans on the last day of the Interest period applicable thereto.

 

64

 

2.10.        Increased
Costs, Illegality, etc. 
(a)  In the event that (x) in the case of clause (i)
below, the Administrative Agent or (y) in the case of clauses (ii)
and (iii) below, any Lender shall have reasonably determined (which
determination shall, absent clearly demonstrable error, be final and conclusive
and binding upon all parties hereto):

 

(i)      on any date for determining the LIBOR Rate
for any Interest Period that (x) deposits in the principal amounts of the
Loans comprising such LIBOR Borrowing are not generally available in the
relevant market or (y) by reason of any changes arising on or after the Closing
Date affecting the interbank LIBOR market, adequate and fair means do not exist
for ascertaining the applicable interest rate on the basis provided for in the
definition of LIBOR Rate; or

 

(ii)     at any time, that such Lender shall incur
increased costs or reductions in the amounts received or receivable hereunder
with respect to any LIBOR Loans (other than any such increase or reduction
attributable to Taxes) because of (x) any change since the date hereof in any
applicable law, governmental rule, regulation, guideline or order (or in the
interpretation or administration thereof and including the introduction of any
new law or governmental rule, regulation, guideline or order), such as, for example,
without limitation, a change in official reserve requirements, and/or (y) other
circumstances affecting the interbank LIBOR market or the position of such
Lender in such market; or

 

(iii)    at any time, that the making or continuance
of any LIBOR Loan has become unlawful by compliance by such Lender in good
faith with any law, governmental rule, regulation, guideline or order (or would
conflict with any such governmental rule, regulation, guideline or order not
having the force of law even though the failure to comply therewith would not
be unlawful), or has become impracticable as a result of a contingency
occurring after the date hereof that materially and adversely affects the interbank
LIBOR market;

 

then, and in
any such event, such Lender (or the Administrative Agent, in the case of
clause (i) above) shall within a reasonable time thereafter give notice
(if by telephone, confirmed in writing) to the Borrower (on its own behalf and
on behalf of the Canadian Borrower) and to the Administrative Agent of such
determination (which notice the Administrative Agent shall promptly transmit to
each of the other Lenders).  Thereafter
(x) in the case of clause (i) above, LIBOR Term Loans and LIBOR
Revolving Credit Loans shall no longer be available until such time as the
Administrative Agent notifies the Borrower (on its own behalf and on behalf of
the Canadian Borrower) and the Lenders that the circumstances giving rise to
such notice by the Administrative Agent no longer exist (which notice the
Administrative Agent agrees to give at such time when such circumstances no
longer exist), and any Notice of Borrowing or Notice of Conversion given by the
Borrower or the Canadian Borrower with respect to LIBOR Term Loans or LIBOR
Revolving Credit Loans that have not yet been incurred shall be deemed
rescinded by the Borrower or the Canadian Borrower (y) in the case of
clause (ii) above, the Borrower or the Canadian Borrower, as the case may
be, shall pay to such Lender, promptly after receipt of written demand therefor
such additional amounts (in the form of an increased rate of,

 

65

 

or a different
method of calculating, interest or otherwise as such Lender in its reasonable
discretion shall determine) as shall be required to compensate such Lender for
such increased costs or reductions in amounts receivable hereunder (it being
agreed that a written notice as to the additional amounts owed to such Lender,
showing in reasonable detail the basis for the calculation thereof, submitted
to the Borrower or the Canadian Borrower, as the case may be, by such Lender
shall, absent clearly demonstrable error, be final and conclusive and binding
upon all parties hereto) and (z) in the case of clause (iii) above,
the Borrower or the Canadian Borrower, as the case may be, shall take one of
the actions specified in Section 2.10(b) as promptly as possible and, in
any event, within the time period required by law.

 

(b)           At any time that any LIBOR Loan is
affected by the circumstances described in Section 2.10(a)(ii) or (iii), the
Borrower or the Canadian Borrower, as the case may be, may (and in the case of
a LIBOR Loan affected pursuant to Section 2.10(a)(iii) shall) either (x) if the
affected LIBOR Loan is then being made pursuant to a Borrowing, cancel said
Borrowing by giving the Administrative Agent telephonic notice (confirmed
promptly in writing) thereof on the same date that the Borrower or the Canadian
Borrower, as the case may be, was notified by a Lender pursuant to Section
2.10(a)(ii) or (iii) or (y) if the affected LIBOR Loan is then
outstanding, upon at least three Business Days’ notice to the Administrative
Agent, require the affected Lender to convert each such LIBOR Revolving Credit
Loan and LIBOR Term Loan into an ABR Loan or Cdn ABR Loan, if applicable, provided
that if more than one Lender is affected at any time, then all affected Lenders
must be treated in the same manner pursuant to this Section 2.10(b).

 

(c)           In the event that the Canadian
Administrative Agent shall have reasonably determined (which determination
shall, absent clearly demonstrable error, be final and conclusive and binding
upon all parties hereto) that there does not exist a normal market in Canada
for the purchase and sale of bankers’ acceptances, then, and in any such event,
the Canadian Administrative Agent shall within a reasonable time thereafter
give notice (if by telephone confirmed in writing) to the Borrower, the
Canadian Borrower and each of the other Lenders of such determination.  Thereafter BA Loans shall no longer be
available until such time as the Canadian Administrative Agent notifies the
Borrower, the Canadian Borrower and the Lenders that the circumstances giving
rise to such notice by the Canadian Administrative Agent no longer exist (which
notice the Canadian Administrative Agent agrees to give at such time when such
circumstances no longer exist), and any Notice of Borrowing or Notice of
Continuation given by the Canadian Borrower with respect to BA Loans that have
not yet been incurred shall be deemed rescinded by the Canadian Borrower.  Any maturing BA Loans shall thereafter, and
until contrary notice is provided by the Canadian Administrative Agent, be
continued as a Canadian Prime Loan.

 

(d)           If, after the date hereof, the
adoption of any applicable law, rule or regulation regarding capital adequacy,
or any change therein, or any change in the interpretation or administration
thereof by any governmental authority, the National Association of Insurance
Commissioners, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by a Lender or its
parent with any request or directive made or adopted after the date hereof
regarding capital adequacy (whether or not having the

 

66

 

force of law) of any such authority,
association, central bank or comparable agency, has or would have the effect of
reducing the rate of return on such Lender’s or its parent’s or its Affiliate’s
capital or assets as a consequence of such Lender’s commitments or obligations
hereunder to a level below that which such Lender or its parent or its Related
Affiliate could have achieved but for such adoption, effectiveness, change or
compliance (taking into consideration such Lender’s or its parent’s policies
with respect to capital adequacy), then from time to time, promptly after demand
by such Lender (with a copy to the Administrative Agent), the Borrower or the
Canadian Borrower, as the case may be, shall pay to such Lender such additional
amount or amounts as will compensate such Lender or its parent for such
reduction, it being understood and agreed, however, that a Lender shall not be
entitled to such compensation as a result of such Lender’s compliance with, or
pursuant to any request or directive to comply with, any such law, rule or
regulation as in effect on the date hereof. 
Each Lender, upon determining in good faith that any additional amounts
will be payable pursuant to this Section 2.10(d), will give prompt written
notice thereof to the Borrower (on its own behalf and on behalf of the Canadian
Borrower) which notice shall set forth in reasonable detail the basis of the
calculation of such additional amounts, although the failure to give any such
notice shall not, subject to Section 2.13, release or diminish any of the
Borrower’s or the Canadian Borrower’s, as the case may be, obligations to pay
additional amounts pursuant to this Section 2.10(d) upon receipt of such
notice.

 

(e)           It is understood that to the extent
duplicative of Section 5.4, this Section 2.10 shall not apply to Taxes.

 

(f)            Notwithstanding the foregoing, in
the case of Canadian Revolving Credit Loans affected by the circumstances
described in Section 2.10(a)(i), as promptly as practicable but in no
event later than three Business Days after the giving of the required notice by
the Canadian Administrative Agent with respect to such circumstances, the
Administrative Agent (in consultation with the Lenders) shall negotiate with
the Borrower in good faith in order to ascertain whether a substitute interest
rate (a “Substitute Rate”) may be agreed upon for the maintaining of
existing Canadian Revolving Credit Loans. If a Substitute Rate is agreed upon
by the Borrower and all the relevant Lenders, such Substitute Rate shall
apply.  If a Substitute Rate is not so
agreed upon by the Borrower and all the relevant Lenders within such time, each
Lender’s Canadian Revolving Credit Loans shall thereafter (subject to the
Canadian Borrower’s right to convert to non-LIBOR Loans pursuant to
Section 2.6) bear interest at a rate equal to the sum of (i) the rate
certified by such Lender to be its costs of funds (from such sources as it may
reasonably select out of those sources then available to it) for such Canadian
Revolving Credit Loans, plus (ii) the Applicable LIBOR Margin.

 

2.11.        Compensation.  If (a) any payment of principal of any
BA Loan or LIBOR Loan is made by the Borrower or the Canadian Borrower (or,
with respect to Section 13.7, is purchased by a replacement bank or institution),
as the case may be, to or for the account of a Lender other than on the last
day of the Interest Period for such BA Loan or LIBOR Loan as a result of a
payment or conversion pursuant to Section 2.5, 2.6, 2.10, 5.1, 5.2 or
13.7, as a result of acceleration of the maturity of the Loans pursuant to Section 11
or for any other reason, (b) any Borrowing of BA Loans or LIBOR Loans is
not made as a result of a withdrawn Notice of Borrowing, (c) any ABR Loan
is not converted into a LIBOR Loan as a result of a withdrawn

 

67

 

Notice of Conversion or Continuation,
(d) any Canadian Prime Loan is not converted into a BA Loan as a result of
a withdrawn Notice of Conversion or Continuation, (e) any BA Loan or LIBOR
Loan is not continued as a BA Loan or LIBOR Loan, as the case may be, as a
result of a withdrawn Notice of Conversion or Continuation or (f) any
prepayment of principal of any BA Loan or LIBOR Loan is not made as a result of
a withdrawn notice of prepayment pursuant to Section 5.1 or 5.2, the
Borrower or the Canadian Borrower, as the case may be, shall, after receipt of
a written request by such Lender (which request shall set forth in reasonable
detail the basis for requesting such amount), pay to the Administrative Agent
for the account of such Lender any amounts required to compensate such Lender
for any additional losses, costs or expenses that such Lender may reasonably
incur as a result of such payment, failure to convert, failure to continue or
failure to prepay, including any loss, cost or expense (excluding loss of
anticipated profits) actually incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by any Lender to fund or
maintain such BA Loan or LIBOR Loan.

 

2.12.        Change
of Lending Office.  Each Lender
agrees that, upon the occurrence of any event giving rise to the operation of
Section 2.10(a)(ii), 2.10(a)(iii), 2.10(b), 2.10(c), 3.5 or 5.4 with respect to
such Lender, it will, if requested by the Borrower or the Canadian Borrower, as
the case may be, use reasonable efforts (subject to overall policy
considerations of such Lender) to designate another lending office for any
Loans affected by such event, provided that such designation is made on
such terms that such Lender and its lending office suffer no economic, legal or
regulatory disadvantage, with the object of avoiding the consequence of the
event giving rise to the operation of any such Section.  Nothing in this Section 2.12 shall affect or
postpone any of the obligations of the Borrower or the Canadian Borrower, as
the case may be, or the right of any Lender provided in Section 2.10, 3.5 or
5.4.

 

2.13.        Notice
of Certain Costs. 
Notwithstanding anything in this Agreement to the contrary, to the
extent any notice required by Section 2.10, 2.11, 3.5 or 5.4 is given by
any Lender more than 180 days after such Lender has knowledge (or should
have had knowledge) of the occurrence of the event giving rise to the
additional cost, reduction in amounts, loss, tax or other additional amounts described
in such Sections, such Lender shall not be entitled to compensation under
Section 2.10, 2.11, 3.5 or 5.4, as the case may be, for any such amounts
incurred or accruing prior to the 181st day prior to the giving of such notice to
the Borrower or the Canadian Borrower, as the case may be.

 

2.14.        Bankers’
Acceptances.  (a)  The
Canadian Administrative Agent, promptly following receipt of a Notice of
Borrowing or Notice of Continuation, requesting BA Loans, shall advise each
applicable Canadian Lender of the face or principal amount and term of each BA
Loan to be accepted (and purchased) or advanced by it.  The aggregate face or principal amount of BA
Loans to be accepted or advanced by a Canadian Lender shall be determined by
the Canadian Administrative Agent by reference to that Canadian Lender’s
applicable pro rata portion of the issue or advance of BA Loans, except that
the aggregate face amount of Bankers’ Acceptances to be accepted by the
applicable Canadian Lenders shall be increased or reduced by the Canadian
Administrative Agent in its sole discretion as may be necessary to ensure that
the face amount of the Bankers’ Acceptance to be accepted by each applicable
Canadian Lender would be C$100,000 or a whole multiple thereof.  For greater certainty, the foregoing 

 

68

 

requirement for a minimum face amount and a
whole multiple of C$100,000 shall not apply to BA Equivalent Loans.

 

(b)           On the date specified in a Notice of
Borrowing or Notice of Continuation on which a BA Loan is to be made, the
Canadian Administrative Agent shall advise the Canadian Borrower as to the
Canadian Administrative Agent’s determination of the BA Discount Rate for the
BA Loans to be purchased or advanced, as the case may be.

 

(c)           The Canadian Borrower shall issue and
each Canadian Lender shall accept and subsequently purchase the Bankers’
Acceptance accepted by it at the applicable BA Discount Rate.  Subject to clause (d) below, each Canadian
Lender shall provide the Canadian Administrative Agent, for the account of the
Canadian Borrower, the BA Discount Proceeds less the Applicable Stamping Fee
payable by the Canadian Borrower with respect to the Bankers’ Acceptance.

 

(d)           In the event the Canadian Borrower requests
a continuation of BA Loans for a further Interest Period, or requests
conversion from Canadian Prime Loans into BA Loans in accordance with Section
2.6, the Canadian Administrative Agent shall make arrangements satisfactory to
it to ensure the BA Discount Proceeds from the replacement BA Loans are applied
to repay the face amount of the maturing BA Loans or the principal amount of
such loans to be converted (the “Maturing Amount”) and the Canadian
Borrower shall concurrently pay to the Canadian Administrative Agent any
positive difference between the Maturing Amount and such BA Discount Proceeds.

 

(e)           Each Canadian Lender may from time to
time hold, sell, rediscount or otherwise dispose of any or all Bankers’
Acceptances accepted and purchased by it.

 

(f)            In order to facilitate the issuance
of Bankers’ Acceptances pursuant to this Agreement, the Canadian Borrower
hereby authorizes each of the Canadian Lenders, and appoints each of the
Canadian Lenders as the Canadian Borrower’s attorney, to complete, sign and
endorse drafts or depository bills (as defined in the Depository
Bills and Notes Act (Canada) (each such executed draft or bill being
herein referred to as a “Draft”) on its behalf in handwritten form or by
facsimile or mechanical signature or otherwise in accordance with the
applicable Notice of Borrowing or Notice of Continuation and, once so
completed, signed and endorsed to accept them as Bankers’ Acceptances under
this Agreement and then if applicable, purchase, discount or negotiate such
Bankers’ Acceptances in accordance with the provisions of this Agreement.  Drafts so completed, signed, endorsed and
negotiated on behalf of the Canadian Borrower by a Canadian Lender shall bind
the Canadian Borrower as fully and effectively as if so performed by an
Authorized Officer of the Canadian Borrower. 
Each draft of a Bankers’ Acceptance completed, signed or endorsed by a
Canadian Lender shall mature on the last day of the term thereof.  All Bankers’ Acceptances to be accepted by a
particular Canadian Lender shall, at the option of such Canadian Lender, be
issued in the form of depository bills made payable originally to and deposited
with The Depository for Securities Limited pursuant to the Depository
Bills and Notes Act (Canada).

 

69

 

(g)           Any Drafts to be used for Bankers’
Acceptances which are held by a Canadian Lender shall be held in safekeeping
with the same degree of care as if they were such Canadian Lender’s own
property being kept at the place at which they are to be held.  The Canadian Borrower may, by written notice
to the Canadian Administrative Agent, designate persons other than Authorized
Officers authorized to give the Canadian Administrative Agent instructions
regarding the manner in which Drafts are to be completed and the times at which
they are to be issued; provided, however, that receipt by the
Canadian Administrative Agent of a Notice of Borrowing or Notice of
Continuation requesting an advance or continuation into, Bankers’ Acceptances
shall be deemed to be sufficient authority from Authorized Officers or such
designated persons for each of the Canadian Lenders to complete, and issue
drafts in accordance with such notice. 
None of the Canadian Administrative Agent or the Canadian Lenders nor
any of their respective directors, officers, employees or representatives shall
be liable for any action taken or omitted to be taken by any of them under this
Section 2.14(g) except for their own respective gross negligence or
willful misconduct as determined by a final judgment of a court of competent
jurisdiction.

 

(h)           The Canadian Borrower waives
presentment for payment and any other defense to the payment of any amounts due
to a Canadian Lender in respect of a Bankers’ Acceptance accepted and purchased
by it pursuant to this Agreement which might exist solely by reason of the
Bankers’ Acceptance being held, at the maturity thereof, by the Canadian Lender
in its own right and the Canadian Borrower agrees not to claim any days of
grace if the Canadian Lender as holder sues the Canadian Borrower on the
Bankers’ Acceptance for payment of the amount payable by the Canadian Borrower
thereunder.  Each Bankers’ Acceptance
shall mature and the face amount thereof shall be due and payable on the last
day of the Interest Period applicable thereto.

 

(i)            Whenever the Canadian Borrower
requests a Loan under this Agreement by way of Bankers’ Acceptances, each
Non-Acceptance Lender shall, in lieu of accepting a Bankers’ Acceptance, make a
BA Equivalent Loan by way of Discount Note in an amount equal to the
Non-Acceptance Lender’s pro rata
portion of the BA Loan.  All terms of
this Agreement applicable to Bankers’ Acceptances and Drafts shall apply
equally to Discount Notes evidencing BA Equivalent Loans with such changes as
may in the context be necessary.  For
greater certainty:

 

(i)      the term of a Discount Note shall be the
same as the Interest Period for Bankers’ Acceptances accepted on the same date
of the Borrowing in respect of the same BA Loan;

 

(ii)     an acceptance fee will be payable in
respect of a Discount Note and shall be calculated at the same rate and in the
same manner as the Applicable Stamping Fee in respect of a Bankers’ Acceptance;
and

 

(iii)    the proceeds from a BA Equivalent Loan shall
be equal to the BA Discount Proceeds of the Discount Note.

 

70

 

2.15.        Incremental
Term Loans.  The Borrower may by
written notice to the Administrative Agent elect to request the establishment
of one or more New Tranche B Term Loan commitments (the “New Tranche B Term
Loan Commitments”), in an aggregate amount for all such New Tranche B Term
Loan Commitments not in excess of $300,000,000. 
Each such notice shall specify the date (each, an “Increased Amount
Date”) on which the Borrower proposes that the New Tranche B Term Loan
Commitments shall be effective, which shall be a date not less than 10 Business
Days after the date on which such notice is delivered to Administrative Agent; provided
that the Borrower shall first offer the Lenders to provide all of the New
Tranche B Term Loan Commitments prior to offering  any other Person that is an eligible assignee
pursuant to Section 13.6(b); provided  further that any Lender
offered or approached to provide all or a portion of the New Tranche B Term
Loan Commitments may elect or decline, in its sole discretion, to provide a New
Tranche B Term Loan Commitment.  Such New
Tranche B Term Loan Commitments shall become effective as of such Increased
Amount Date; provided that (1) no Default or Event of Default shall
exist on such Increased Amount Date before or after giving effect to such New
Tranche B Term Loan Commitments and to the making of any Series of New Tranche
B Term Loans pursuant thereto, as applicable; (2) both before and after
giving effect to the making of any Series of New Tranche B Term Loans, each of
the conditions set forth in Section 7 shall be satisfied; (3) Holdings,
the Borrower and its Restricted Subsidiaries shall be in pro forma compliance
with the covenants set forth in Sections 10.9 and 10.10 as of the last day of
the most recently ended fiscal quarter after giving effect to such New Tranche
B Term Loan Commitments and any Investment to be consummated in connection
therewith; (4) the New Tranche B Term Loan Commitments shall be effected
pursuant to one or more Joinder Agreements executed and delivered by the
Borrower, the Administrative Agent and one or more New Tranche B Loan Lenders,
and each of which shall be recorded in the Register and shall be subject to the
requirements set forth in Section 5.4(b); (5) the Borrower shall make any
payments required pursuant to Section 2.11 in connection with the New Tranche B
Term Loan Commitments, as applicable; and (6) the Borrower shall deliver or
cause to be delivered any legal opinions or other documents reasonably
requested by Administrative Agent in connection with any such transaction. Any
New Tranche B Term Loans made on an Increased Amount Date that have terms and
provisions that differ from Tranche B Term Loans outstanding on the date on
which such New Tranche B Term Loans are made shall be designated as a separate
series (a “Series”) of Tranche B Term Loans for all purposes of this
Agreement.

 

On any
Increased Amount Date on which any New Tranche B Term Loan Commitments of any
Series are effective, subject to the satisfaction of the foregoing terms and
conditions, (i) each Lender with a New Tranche B Term Loan Commitment (each, a “New
Tranche B Loan Lender”) of any Series shall make a Loan to the Borrower (a “New Term Loan”) in an amount equal
to its New Term Loan Commitment of such Series, and (ii) each New Term Loan
Lender of any Series shall become a Lender hereunder with respect to the New
Term Loan Commitment of such Series and the New Tranche B Term Loans of such
Series made pursuant thereto.

 

The terms and
provisions of the New Tranche B Term Loans and New Tranche B Term Loan
Commitments of any Series shall be, except as otherwise set forth herein or in
the Joinder Agreement, identical to the Tranche B Term Loans; provided, however,
that (i) the

 

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applicable New
Tranche B Term Loan Maturity Date of each Series shall be no shorter than the
final maturity of the Tranche B Term Loans , (ii) the average life to maturity
of any New Tranche B Term Loans shall be no shorter than the average life to
maturity of the Term Loans and (iii) the rate of interest applicable to
the New Term Tranche B Term Loans of each Series and, subject to the foregoing
clause (ii) the schedule of required repayments of principal thereof,
shall be determined by the Borrower and the applicable new Lenders and shall be
set forth in each applicable Joinder Agreement. 
Each Joinder Agreement may, without the consent of any other Lenders,
effect such amendments to this Agreement and the other Credit Documents as may
be necessary or appropriate, in the opinion of the Administrative Agent, to
effect the provision of this Section 2.15.

 

SECTION 3.  Letters of Credit

 

3.1.          Letters of
Credit.  (a)  Subject
to and upon the terms and conditions herein set forth, at any time and from
time to time after the Closing Date and prior to the L/C Maturity Date,
(i) the Borrower may request that the US Letter of Credit Issuer issue for
the account of the Borrower (or any Subsidiary of the Borrower so long as the
Borrower is a joint and several co-applicant with respect thereto) a standby
letter of credit or letters of credit denominated in Dollars (the “US Letters
of Credit”), and (ii) the Canadian Borrower may request that the
Canadian Letter of Credit Issuer issue for the account of the Canadian Borrower
(or any Subsidiary of the Canadian Borrower so long as the Canadian Borrower is
a joint and several co-applicant with respect thereto) a standby letter of
credit or letters of credit denominated in Canadian Dollars (the “Canadian
Letters of Credit” and, together with the US Letters of Credit, the “Letters
of Credit” and each a “Letter of Credit”) in such form as may be
approved by the US Letter of Credit Issuer or the Canadian Letter of Credit
Issuer, as the case may be, in its reasonable discretion.

 

(b)           Notwithstanding the foregoing, (i) no
US Letter of Credit shall be issued the Stated Amount of which, when added to
the US Letters of Credit Outstanding at such time, would exceed the US Letter
of Credit Commitment then in effect; (ii) no US Letter of Credit shall be
issued the Stated Amount of which would cause the aggregate amount of the
Lenders’ US Revolving Credit Exposures at such time to exceed the US Total
Revolving Credit Commitment then in effect; (iii) no Canadian Letter of Credit
shall be issued the Dollar Equivalent of the Stated Amount of which, when added
to the Dollar Equivalent of the Canadian Letters of Credit Outstanding at such
time, would exceed the Canadian Letter of Credit Commitment then in effect,
(iv) no Canadian Letter of Credit shall be issued the Dollar Equivalent of
the Stated Amount of which would cause the aggregate amount of the Canadian
Revolving Credit Exposure at such time to exceed the Canadian Total Revolving
Credit Commitment, (v) each Letter of Credit shall have an expiration date
occurring no later than one year after the date of issuance thereof, unless
otherwise agreed upon by the Administrative Agent or the Canadian Administrative
Agent, as applicable, and the applicable Letter of Credit Issuer, provided
that in no event shall such expiration date occur later than the
L/C Maturity Date; (vi) no Letter of Credit shall be issued if it
would be illegal under any applicable law for the beneficiary of the Letter of
Credit to have a Letter of Credit issued in its favor; and (vii) no Letter
of Credit shall be issued by a Letter of Credit Issuer after it has received a
written notice

 

72

 

from the Borrower or the Canadian Borrower or
any Lender stating that a Default or Event of Default has occurred and is
continuing until such time as such Letter of Credit Issuer shall have received
a written notice of (x) rescission of such notice from the party or
parties originally delivering such notice or (y) the waiver of such
Default or Event of Default in accordance with the provisions of
Section 13.1.

 

(c)           Upon at least one Business Day’s
prior written notice (or telephonic notice promptly confirmed in writing) to
the Administrative Agent and the US Letter of Credit Issuer or to the Canadian
Administrative Agent and the Canadian Letter of Credit Issuer, as applicable
(which notice the applicable Administrative Agent shall promptly transmit to
each of the applicable Lenders), the Borrower shall have the right, on any day,
permanently to terminate or reduce the US Letter of Credit Commitment or the
Canadian Letter of Credit Commitment, in each case in whole or in part, provided
that, after giving effect to such termination or reduction, the US Letters of
Credit Outstanding shall not exceed the US Letter of Credit Commitment and the
Dollar Equivalent of the Canadian Letters of Credit Outstanding shall not
exceed the Canadian Letter of Credit Commitment, as applicable.

 

(d)           The parties hereto agree that the
Existing Letters of Credit shall be deemed to be US Letters of Credit for all
purposes under this Agreement, without any further action by the Borrower.(1)

 

3.2.          Letter
of Credit Requests. 
(a)  Whenever the Borrower desires that a US Letter of Credit
be issued for its account or for the account of any of its Subsidiaries, it
shall give the Administrative Agent and the US Letter of Credit Issuer at least
five (or such lesser number as may be agreed upon by the Administrative Agent
and the Letter of Credit Issuer) Business Days’ written notice thereof.  Each such notice shall be executed by the
Borrower and shall be in the form of Exhibit G-1 (each a “US
Letter of Credit Request”).

 

(b)           Whenever the Canadian Borrower
desires that a Canadian Letter of Credit be issued for its account or for the
account of any of its Subsidiaries, it shall give the Canadian Administrative
Agent and the Canadian Letter of Credit Issuer at least five (or such lesser
number as may be agreed upon by the Canadian Administrative Agent and the
Canadian Letter of Credit Issuer) Business Days’ written notice thereof.  Each such notice shall be executed by the
Canadian Borrower and shall be in the form of Exhibit G-2 (each a “Canadian
Letter of Credit Request”).

 

(c)           The making of each Letter of Credit
Request shall be deemed to be a representation and warranty by the Borrower or
the Canadian Borrower, as the case may be, that

 

(1)   Jostens to advise if any of the Existing Letters of Credit are
denominated in Canadian Dollars.

 

73

 

the Letter of Credit may be issued in
accordance with, and will not violate the requirements of, Section 3.1(b).

 

3.3.          Letter
of Credit Participations. 
(a)  Immediately upon the issuance by the US Letter of Credit
Issuer of any US Letter of Credit, the US Letter of Credit Issuer shall be
deemed to have sold and transferred to each other Lender that has a US
Revolving Credit Commitment (each such other Lender, in its capacity under this
Section 3.3, a “US L/C Participant”), and each such US L/C
Participant shall be deemed irrevocably and unconditionally to have purchased
and received from the US Letter of Credit Issuer, without recourse or warranty,
an undivided interest and participation (each a “US L/C Participation”),
to the extent of such US L/C Participant’s US Revolving Credit Commitment
Percentage in such US Letter of Credit, each substitute letter of credit, each
drawing made thereunder and the obligations of the Borrower under this
Agreement with respect thereto, and any security therefor or guaranty pertaining
thereto.

 

(b)           Immediately upon the issuance by the
Canadian Letter of Credit Issuer of any Canadian Letter of Credit, the Canadian
Letter of Credit Issuer shall be deemed to have sold and transferred to each
other Canadian Lender (each such other Lender, in its capacity under this
Section 3.3, a “Cdn L/C Participant”), and each such Cdn L/C
Participant shall be deemed irrevocably and unconditionally to have purchased
and received from the Canadian Letter of Credit Issuer, without recourse or
warranty, an undivided interest and participation (each a “Cdn L/C
Participation”), to the extent of such Cdn L/C Participant’s Canadian
Revolving Credit Commitment Percentage in such Canadian Letter of Credit, each
substitute letter of credit, each drawing made thereunder and the obligations
of the Canadian Borrower under this Agreement with respect thereto, and any
security therefor or guaranty pertaining thereto.

 

(c)           US Letter of Credit Fees will be paid
directly to the Administrative Agent for the ratable account of the US L/C
Participants as provided in Section 4.1(b), and Canadian Letter of Credit
Fees will be paid directly to the Canadian Administrative Agent for the ratable
account of the Cdn L/C Participants as provided in Section 4.1(d).  The US L/C Participants shall have no right
to receive any portion of any US L/C Fronting Fees, and the Cdn L/C
Participants shall have no right to receive any portion of any Canadian L/C
Fronting Fees.

 

(d)           In determining whether to pay under
any Letter of Credit, the relevant Letter of Credit Issuer shall have no
obligation relative to the applicable L/C Participants other than to confirm
that any documents required to be delivered under such Letter of Credit have
been delivered and that they appear to comply on their face with the
requirements of such Letter of Credit. 
Any action taken or omitted to be taken by the relevant Letter of Credit
Issuer under or in connection with any Letter of Credit issued by it, if taken
or omitted in the absence of gross negligence or willful misconduct, shall not
create for such Letter of Credit Issuer any resulting liability.

 

(e)           In the event that any Letter of
Credit Issuer makes any payment under any Letter of Credit issued by it and the
Borrower or the Canadian Borrower, as applicable, shall not have repaid such
amount in full to the relevant Letter of Credit Issuer pursuant to
Section 3.4(a),

 

74

 

such Letter of Credit Issuer shall promptly
notify the Administrative Agent or the Canadian Administrative Agent, as
applicable, and each applicable L/C Participant of such failure, and each such
L/C Participant shall promptly and unconditionally pay to the Administrative
Agent or the Canadian Administrative Agent, as applicable, for the account of
the relevant Letter of Credit Issuer, the amount of such L/C Participant’s Revolving
Credit Commitment Percentage of such unreimbursed payment in Dollars or
Canadian Dollars, as applicable, and in immediately available funds; provided,
however, that no L/C Participant shall be obligated to pay to the
Administrative Agent or the Canadian Administrative Agent, as applicable, for
the account of the relevant Letter of Credit Issuer its Revolving Credit
Commitment Percentage of such unreimbursed amount arising from any wrongful payment
made by such relevant Letter of Credit Issuer under a Letter of Credit as a
result of acts or omissions constituting willful misconduct or gross negligence
on the part of such Letter of Credit Issuer. 
If the relevant Letter of Credit Issuer so notifies, prior to 11:00 a.m.
(New York City time) on any Business Day, any L/C Participant required to fund
a payment under a Letter of Credit, such L/C Participant shall make available
to the Administrative Agent or the Canadian Administrative Agent, as
applicable, for the account of such Letter of Credit Issuer such L/C
Participant’s Revolving Credit Commitment Percentage of the amount of such
payment on such Business Day in immediately available funds.  If and to the extent such L/C Participant
shall not have so made its Revolving Credit Commitment Percentage of the amount
of such payment available to the Administrative Agent or the Canadian
Administrative Agent, as applicable, for the account of the relevant Letter of
Credit Issuer, such L/C Participant agrees to pay to the Administrative Agent
or the Canadian Administrative Agent, as applicable, for the account of such
Letter of Credit Issuer, forthwith on demand, such amount, together with
interest thereon for each day from such date until the date such amount is paid
to the Administrative Agent or the Canadian Administrative Agent, as
applicable, for the account of such Letter of Credit Issuer at the Federal
Funds Effective Rate, in the case of any amount for the account of the US
Letter of Credit Issuer, or the rate reasonably determined by the Canadian
Letter of Credit Issuer to be the cost to it of funding the payment under the
applicable Letter of Credit issued by it, in the case of any amount for the
account of the Canadian Letter of Credit Issuer.  The failure of any L/C Participant to make
available to the Administrative Agent or the Canadian Administrative Agent, as
applicable, for the account of the relevant Letter of Credit Issuer its
Revolving Credit Commitment Percentage of any payment under any Letter of
Credit shall not relieve any other L/C Participant of its obligation hereunder
to make available to the Administrative Agent or the Canadian Administrative
Agent, as applicable, for the account of such Letter of Credit Issuer its
Revolving Credit Commitment Percentage of any payment under such Letter of
Credit on the date required, as specified above, but no L/C Participant shall be
responsible for the failure of any other L/C Participant to make available to
the Administrative Agent or the Canadian Administrative Agent, as applicable,
such other L/C Participant’s Revolving Credit Commitment Percentage of any such
payment.

 

(f)            Whenever any Letter of Credit Issuer
receives a payment in respect of an unpaid reimbursement obligation as to which
the Administrative Agent or the Canadian Administrative Agent, as applicable,
has received for the account of such Letter of Credit Issuer any payments from
the L/C Participants pursuant to paragraph (e) above, such Letter of
Credit Issuer shall pay to the Administrative Agent or the Canadian
Administrative Agent, as applicable, and the Administrative Agent or the
Canadian Administrative Agent, as applicable,

 

75

 

shall promptly pay to each L/C Participant
that has paid its Revolving Credit Commitment Percentage of such reimbursement
obligation, in Dollars or Canadian Dollars, as applicable, and in immediately
available funds, an amount equal to such L/C Participant’s share (based upon
the proportionate aggregate amount originally funded by such L/C Participant to
the aggregate amount funded by all applicable L/C Participants) of the
principal amount of such reimbursement obligation and interest thereon accruing
after the purchase of the respective L/C Participations.

 

(g)           The obligations of the L/C
Participants to make payments to the Administrative Agent or the Canadian
Administrative Agent for the account of a Letter of Credit Issuer with respect
to Letters of Credit shall be irrevocable and not subject to counterclaim,
set-off or other defense or any other qualification or exception whatsoever and
shall be made in accordance with the terms and conditions of this Agreement
under all circumstances, including under any of the following circumstances:

 

(i)      any lack of validity or enforceability of
this Agreement or any of the other Credit Documents;

 

(ii)     the existence of any claim, set-off,
defense or other right that the Borrower may have at any time against a
beneficiary named in a Letter of Credit, any transferee of any Letter of Credit
(or any Person for whom any such transferee may be acting), the Administrative
Agent, the Canadian Administrative Agent, any Letter of Credit Issuer, any
Lender or other Person, whether in connection with this Agreement, any Letter
of Credit, the transactions contemplated herein or any unrelated transactions
(including any underlying transaction between the Borrower or the Canadian
Borrower, as applicable, and the beneficiary named in any such Letter of
Credit);

 

(iii)    any draft, certificate or any other document
presented under any Letter of Credit proving to be forged, fraudulent, invalid
or insufficient in any respect or any statement therein being untrue or inaccurate
in any respect;

 

(iv)    the surrender or impairment of any security
for the performance or observance of any of the terms of any of the Credit
Documents; or

 

(v)     the occurrence of any Default or Event of Default;

 

provided, however, that no L/C
Participant shall be obligated to pay to the Administrative Agent or the
Canadian Administrative Agent for the account of a Letter of Credit Issuer its
Revolving Credit Commitment Percentage of any unreimbursed amount arising from
any wrongful payment made by such Letter of Credit Issuer under a Letter of
Credit as a result of acts or omissions constituting willful misconduct or
gross negligence on the part of such Letter of Credit Issuer.

 

3.4.          Agreement to Repay Letter of Credit
Drawings.  (a)  The
Borrower and the Canadian Borrower hereby agree to reimburse the relevant
Letter of Credit Issuer, by making payment in the currency in which the
relevant Letter of Credit was denominated to the Administrative Agent (in the
case of reimbursement made by the Borrower) or the Canadian

 

76

 

Administrative Agent (in the case of
reimbursement made by the Canadian Borrower) in immediately available funds for
any payment or disbursement made by such Letter of Credit Issuer under any
Letter of Credit (each such amount so paid until reimbursed, an “Unpaid Drawing”)
immediately after, and in any event on the date of, such payment, with interest
on the amount so paid or disbursed by such Letter of Credit Issuer, to the extent
not reimbursed prior to 5:00 p.m. (New York City time) on the date of such
payment or disbursement, from and including the date paid or disbursed to but
excluding the date such Letter of Credit Issuer is reimbursed therefor at a
rate per annum that shall at all
times be the Applicable ABR Margin plus the ABR as in effect from time to time
(in the case of the US Letter of Credit Issuer) or the Applicable ABR Margin
plus the Canadian Prime Rate as in effect from time to time (in the case of the
Canadian Letter of Credit Issuer), provided that, notwithstanding anything
contained in this Agreement to the contrary, (i) unless the Borrower (or
the Canadian Borrower) shall have notified the Administrative Agent (or the
Canadian Administrative Agent) and the relevant Letter of Credit Issuer prior
to 10:00 a.m. (New York time) on the date of such drawing that the
Borrower or the Canadian Borrower, as the case may be, intends to reimburse the
relevant Letter of Credit Issuer for the amount of such drawing with funds
other than the proceeds of Loans, the Borrower or the Canadian Borrower, as the
case may be, shall be deemed to have given a Notice of Borrowing requesting
that, (A) with respect to US Letters of Credit, that the Lenders with US Revolving
Credit Commitments make US Revolving Credit Loans (which shall be ABR Loans)
and (B) with respect to Canadian Letters of Credit, the Lenders with Canadian
Revolving Credit Commitments make Canadian Revolving Credit Loans (which shall
be Canadian Prime Rate Loans) on the date on which such drawing is honored in
an amount equal to the amount of such drawing and (ii) the Administrative
Agent or the Canadian Administrative Agent shall promptly notify each relevant
L/C Participant of such drawing and the amount of its Revolving Credit Loan to
be made in respect thereof, and each L/C Participant shall be irrevocably
obligated to make a Revolving Credit Loan to the Borrower or the Canadian
Borrower, as applicable, in the manner deemed to have been requested in the
amount of its Revolving Credit Commitment Percentage of the applicable Unpaid
Drawing by 12:00 noon (New York City time) on such Business Day by making the
amount of such Revolving Credit Loan available to the Administrative Agent or the
Canadian Administrative Agent, as applicable. 
Such Revolving Credit Loans shall be made without regard to the Minimum
Borrowing Amount.  The Administrative
Agent or the Canadian Administrative Agent, as applicable, shall use the
proceeds of such Revolving Credit Loans solely for purpose of reimbursing the
relevant Letter of Credit Issuer for the related Unpaid Drawing.

 

(b)           The obligations of the Borrower and
the Canadian Borrower under this Section 3.4 to reimburse the relevant Letter
of Credit Issuer with respect to Unpaid Drawings (including, in each case,
interest thereon) shall be absolute and unconditional under any and all
circumstances and irrespective of any set-off, counterclaim or defense to
payment that the Borrower, the Canadian Borrower or any other Person may have
or have had against such, Letter of Credit Issuer, the Administrative Agent,
the Canadian Administrative Agent or any Lender (including in its capacity as
an L/C Participant), including any defense based upon the failure of any drawing
under a Letter of Credit (each a “Drawing”) to conform to the terms of
the Letter of Credit or any non-application or misapplication by the
beneficiary of the proceeds of such Drawing, provided that neither the
Borrower nor the Canadian Borrower shall be obligated to

 

77

 

reimburse such Letter of Credit Issuer for
any wrongful payment made by such Letter of Credit Issuer under the Letter of
Credit issued by it as a result of acts or omissions constituting willful
misconduct or gross negligence on the part of such Letter of Credit Issuer.

 

3.5.          Increased
Costs.  If after the date hereof, the
adoption of any applicable law, rule or regulation, or any change therein, or
any change in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or
administration thereof, or actual compliance by a Letter of Credit Issuer or
any L/C Participant with any request or directive made or adopted after the
date hereof (whether or not having the force of law), by any such authority,
central bank or comparable agency shall either (a) impose, modify or make
applicable any reserve, deposit, capital adequacy or similar requirement
against letters of credit issued by such Letter of Credit Issuer, or any L/C
Participant’s L/C Participation therein, or (b) impose on such Letter of
Credit Issuer or any L/C Participant any other conditions affecting its
obligations under this Agreement in respect of Letters of Credit or L/C
Participations therein or any Letter of Credit or such L/C Participant’s L/C
Participation therein, and the result of any of the foregoing is to increase
the cost to such Letter of Credit Issuer or such L/C Participant of issuing, maintaining
or participating in any Letter of Credit, or to reduce the amount of any sum
received or receivable by such Letter of Credit Issuer or such L/C Participant
hereunder (other than any such increase or reduction attributable to Taxes) in
respect of Letters of Credit or L/C Participations therein, then, promptly
after receipt of written demand to the Borrower or the Canadian Borrower, as
applicable, by such Letter of Credit Issuer or such L/C Participant, as the
case may be (a copy of which notice shall be sent by such Letter of Credit
Issuer or such L/C Participant to the Administrative Agent (with respect to US
Letters of Credit) and to the Canadian Administrative Agent (with respect to
Canadian Letters of Credit)), the Borrower or the Canadian Borrower, as
applicable, shall pay to such Letter of Credit Issuer or such L/C Participant
such additional amount or amounts as will compensate such Letter of Credit
Issuer or such L/C Participant for such increased cost or reduction, it being
understood and agreed, however, that a Letter of Credit Issuer or a L/C
Participant shall not be entitled to such compensation as a result of such
Person’s compliance with, or pursuant to any request or directive to comply
with, any such law, rule or regulation as in effect on the date hereof.  A certificate submitted to the Borrower or
the Canadian Borrower, as applicable, by the relevant Letter of Credit Issuer
or a L/C Participant, as the case may be (a copy of which certificate
shall be sent by such Letter of Credit Issuer or such L/C Participant to
the Administrative Agent (with respect to US Letters of Credit) and to the
Canadian Administrative Agent (with respect to Canadian Letters of Credit))
setting forth in reasonable detail the basis for the determination of such
additional amount or amounts necessary to compensate such Letter of Credit
Issuer or such L/C Participant as aforesaid shall be conclusive and binding on
the Borrower or the Canadian Borrower, as applicable, absent clearly
demonstrable error.

 

3.6.          Successor
Letter of Credit Issuer.  Any
Letter of Credit Issuer may resign as Letter of Credit Issuer upon 30 days’
prior written notice to the Administrative Agent, the Canadian Administrative
Agent, the Lenders and the Borrower.  If
the US Letter of Credit Issuer shall resign as US Letter of Credit Issuer under
this Agreement, then the Borrower shall appoint from among the Lenders with US
Revolving Credit Commitments a successor issuer of US

 

78

 

Letters of Credit that is willing so to act,
whereupon such successor issuer shall succeed to the rights, powers and duties
of the US Letter of Credit Issuer, and the term “US Letter of Credit Issuer”
shall mean such successor issuer effective upon such appointment.  At the time such resignation shall become
effective, the Borrower shall pay to the resigning US Letter of Credit Issuer
all accrued and unpaid fees pursuant to Sections 4.1(c) and (f).  The acceptance of any appointment as the US
Letter of Credit Issuer hereunder by a successor Lender shall be evidenced by
an agreement entered into by such successor, in a form satisfactory to the
Borrower and the Administrative Agent and, from and after the effective date of
such agreement, such successor Lender shall have all the rights and obligations
of the previous US Letter of Credit Issuer under this Agreement and the other
Credit Documents.  If the Canadian Letter
of Credit Issuer shall resign as Canadian Letter of Credit Issuer under this
Agreement, then the Canadian Borrower shall appoint from among the Canadian
Lenders a successor issuer of Canadian Letters of Credit that is willing so to
act, whereupon such successor issuer shall succeed to the rights, powers and
duties of the Canadian Letter of Credit Issuer, and the term “Canadian Letter
of Credit Issuer” shall mean such successor issuer effective upon such
appointment.  At the time such
resignation shall become effective, the Canadian Borrower shall pay to the
resigning Canadian Letter of Credit Issuer all accrued and unpaid fees pursuant
to Sections 4.1(e) and (f).  The
acceptance of any appointment as the Canadian Letter of Credit Issuer hereunder
by a successor Lender shall be evidenced by an agreement entered into by such
successor, in a form satisfactory to the Canadian Borrower and the Canadian
Administrative Agent and, from and after the effective date of such agreement,
such successor Lender shall have all the rights and obligations of the previous
Canadian Letter of Credit Issuer under this Agreement and the other Credit Documents.  After the resignation of any Letter of Credit
Issuer hereunder, the resigning Letter of Credit Issuer shall remain a party
hereto and shall continue to have all the rights and obligations of a Letter of
Credit Issuer under this Agreement and the other Credit Documents with respect
to Letters of Credit issued by it prior to such resignation, but shall not be
required to issue additional Letters of Credit. 
After any retiring Letter of Credit Issuer’s resignation as a Letter of
Credit Issuer, the provisions of this Agreement relating to such Letter of
Credit Issuer shall inure to its benefit as to any actions taken or omitted to
be taken by it (a) while it was a Letter of Credit Issuer under this
Agreement or (b) at any time with respect to Letters of Credit issued by
such Letter of Credit Issuer.

 

SECTION 4.  Fees; Commitments

 

4.1.          Fees.  (a)  (i)  The Borrower
agrees to pay to the Administrative Agent in Dollars, for the account of each
Lender having a US Revolving Credit Commitment (in each case pro rata according to the respective US
Revolving Credit Commitments of all such Lenders), a commitment fee for each
day from and including the Closing Date to but excluding the Final Date.  Such commitment fee shall be payable
quarterly in arrears (x) on the last Business Day of each fiscal quarter
of the Borrower and (y) on the Final Date (for the period ended on such
date for which no payment has been received pursuant to
clause (x) above), and shall be computed for each day during such
period at a rate per annum equal
to the Commitment Fee Rate in effect on such day on the Available US Commitment
in effect on such day.

 

79

 

(ii)     The Canadian Borrower agrees to pay to the
Canadian Administrative Agent in Dollars for the account of each Canadian
Lender with a Canadian Revolving Credit Commitment (in each case pro rata according to the respective applicable Canadian
Revolving Credit Commitments of all such Lenders), a commitment fee for each
day from and including the Closing Date to but excluding the Final Date.  Such commitment fee shall be payable
quarterly in arrears (x) on the last Business Day of each fiscal quarter
of the Borrower and (y) on the Final Date (for the period ended on such
date for which no payment has been received pursuant to clause (x) above),
and shall be computed for each day during such period at a rate per annum equal to the Commitment Fee Rate in effect on such
day on the Available Canadian Commitment in effect on such day.

 

(iii)    The Borrower agrees to pay to the
Administrative Agent for the account of each Tranche B Term Loan Lender (in
each case pro rata according to the respective
Tranche B Term Loan Commitments of all such Lenders), a commitment fee for each
day from and including the Closing Date to but excluding the Delayed Draw Date
(or such earlier date following the Closing Date on which the Tranche B Term
Loan Commitments are terminated).  Such
commitment fee shall be payable in arrears on the Delayed Draw Date (or such
earlier date following the Closing Date on which the Tranche B Term Loan
Commitments are terminated), for the period ended on such date, and shall be
computed for each day during such period at a rate per annum equal to the
Commitment Fee Rate in effect on such day on the Available Tranche B Term Loan
Commitment in effect on such day.

 

(iv)    Notwithstanding the foregoing, neither the
Borrower nor the Canadian Borrower shall be obligated to pay any amounts to any
Defaulting Lender pursuant to this Section 4.1.

 

(b)           The Borrower agrees to pay to the
Administrative Agent in Dollars for the account of the Lenders pro rata on the basis of their respective US Letter of
Credit Exposure, a fee in respect of each US Letter of Credit (the “US
Letter of Credit Fee”), for the period from and including the date of
issuance of such US Letter of Credit to but excluding the termination date of
such US Letter of Credit computed at the per annum rate
for each day equal to the Applicable LIBOR Margin for Revolving Credit Loans
minus 0.250% per annum on the average daily
Stated Amount of such US Letter of Credit. 
Such US Letter of Credit Fees shall be due and payable quarterly in
arrears on the last Business Day of each fiscal quarter of the Borrower and on
the date upon which the US Total Revolving Credit Commitment terminates and the
US Letters of Credit Outstanding shall have been reduced to zero.

 

(c)           The Borrower agrees to pay to the
Administrative Agent in Dollars for the account of the US Letter of Credit
Issuer a fee in respect of each US Letter of Credit issued by it (the “US
L/C Fronting Fee”), for the period from and including the date of issuance
of such US Letter of Credit to but excluding the termination date of such US
Letter of Credit, computed at the rate for each day equal to 0.250% per annum on the average daily Stated Amount of such US Letter
of Credit.  Such US L/C Fronting Fees
shall be due and payable quarterly in arrears on the

 

80

 

last Business Day of each fiscal quarter of
the Borrower and on the date upon which the US Total Revolving Credit
Commitment terminates and the US Letters of Credit Outstanding shall have been
reduced to zero.

 

(d)           The Canadian Borrower agrees to pay
to the Canadian Administrative Agent in Canadian Dollars for the account of the
Canadian Lenders pro rata on the basis of their
respective Canadian Letter of Credit Exposure, a fee in respect of each
Canadian Letter of Credit (the “Canadian Letter of Credit Fee”), for the
period from and including the date of issuance of such Canadian Letter of
Credit to but excluding the termination date of such Canadian Letter of Credit
computed at the per annum rate for each day equal
to the Applicable LIBOR Margin for Revolving Credit Loans minus 0.250% per annum on the average daily Stated Amount of such
Canadian Letter of Credit.  Such Canadian
Letter of Credit Fees shall be due and payable quarterly in arrears on the last
Business Day of each fiscal quarter of the Borrower and on the date upon which
the Canadian Total Revolving Credit Commitment terminates and the Canadian
Letters of Credit Outstanding shall have been reduced to zero.

 

(e)           The Canadian Borrower agrees to pay
to the Canadian Administrative Agent in Canadian Dollars for the account of the
Canadian Letter of Credit Issuer a fee in respect of each Canadian Letter of
Credit issued by it (the “Canadian L/C Fronting Fee”), for the period
from and including the date of issuance of such Canadian Letter of Credit to
but excluding the termination date of such Canadian Letter of Credit, computed
at the rate for each day equal to 0.250% per annum on
the average daily Stated Amount of such Canadian Letter of Credit.  Such Canadian L/C Fronting Fees shall be due
and payable quarterly in arrears on the last Business Day of each fiscal
quarter of the Borrower and on the date upon which the Canadian Total Revolving
Credit Commitment terminates and the Canadian Letters of Credit Outstanding
shall have been reduced to zero.

 

(f)            Each of the Borrower and the
Canadian Borrower agrees to pay directly to the applicable Letter of Credit
Issuer in Dollars (in the case of payments to the US Letter of Credit Issuer)
or Canadian Dollars (in the case of payments to the Canadian Letter of Credit
Issuer) upon each issuance of, drawing under, and/or amendment of, a Letter of
Credit issued by it such amount as the applicable Letter of Credit Issuer and
the applicable Borrower shall have agreed upon for issuances of, drawings under
or amendments of, letters of credit issued by it.

 

4.2.          Voluntary
Reduction of Revolving Credit Commitments.  Upon at least one Business Day’s prior
written notice (or telephonic notice promptly confirmed in writing) to the
Administrative Agent at the Administrative Agent’s Office (which notice the
Administrative Agent shall promptly transmit to each of the Lenders), the Borrower
(on behalf of itself and the Canadian Borrower) shall have the right, without
premium or penalty, on any day, permanently to terminate or reduce the
Revolving Credit Commitments in whole or in part, provided that (a) any
such reduction shall apply proportionately and permanently to reduce the US
Revolving Credit Commitment or the Canadian Revolving Credit Commitment, as the
case may be, of each of the Lenders, (b) any partial reduction pursuant to
this Section 4.2 shall be in the amount of at least $5,000,000 and
(c) after giving effect to such termination or reduction and to any prepayments
of the Loans made on the date thereof in accordance with this Agreement, (i) the

 

81

 

aggregate amount of the Lenders’ US Revolving
Credit Exposures shall not exceed the US Total Revolving Credit Commitment and
(ii) the aggregate amount of the Canadian Lenders’ Canadian Revolving Credit
Exposures shall not exceed the Canadian Total Revolving Credit Commitment.

 

4.3.          Mandatory Termination of Commitments.  (a)  (i)  The Tranche A
Term Loan Commitments shall terminate at 5:00 p.m. (New York City time) on
the Closing Date.

 

(ii)     The Tranche B Term Loan Commitments (x) shall be
permanently reduced at 5:00 p.m. (New York City time) on the Closing Date
by the amount of Tranche B Term Loans made on the Closing Date and
(y) shall terminate at 5:00 p.m. (New York City time) on the Delayed Draw
Date.

 

(b)           The US Total Revolving Credit
Commitment and the Canadian Total Revolving Credit Commitment shall terminate
at 5:00 p.m. (New York City time) on the Revolving Credit Maturity Date.

 

(c)           The Swingline Commitment shall
terminate at 5:00 p.m. (New York City time) on the Swingline Maturity
Date.

 

(d)           (i) The US Letter of Credit
Commitment and the Canadian Letter of Credit Commitment shall terminate at
5:00 p.m. (New York City time) on the L/C Maturity Date.

 

(e)           If any prepayment of Term Loans would
otherwise be required pursuant to Section 5.2(a) but cannot be made because
there are no Term Loans outstanding, or because the amount of the required
prepayment exceeds the outstanding amount of Term Loans, then, on the date that
such prepayment is required, the Revolving Credit Commitments shall be
permanently reduced by an aggregate amount equal to the amount of the required
prepayment, or the excess of such amount over the outstanding amount of Term
Loans, as the case may be, and Borrower shall comply with Section 5.2(b) after
giving effect to such reduction.

 

SECTION 5.  Payments

 

5.1.          Voluntary
Prepayments.  The Borrower shall
have the right to prepay Term Loans, US Revolving Credit Loans, Canadian
Revolving Loans made to it and Swingline Loans, and the Canadian Borrower shall
have the right to prepay Canadian Revolving Credit Loans made to it, in each
case, without premium or penalty, in whole or in part from time to time on the
following terms and conditions: (a) the Borrower (on its own behalf and on behalf
of the Canadian Borrower) shall give the Administrative Agent and the Canadian
Administrative Agent at the applicable Administrative Agent’s Office written notice
(or telephonic notice promptly confirmed in writing) of its or the Canadian
Borrower’s intent to make such prepayment, the amount of such prepayment and
(in the case of BA Loans and LIBOR Loans) the specific Borrowing(s) pursuant to
which made, which notice shall be given by the Borrower no later than (i) in
the case of Term Loans or Revolving Credit Loans (other than US Revolving
Credit Loans that are ABR Loans), 10:00 a.m. (New York City time) one Business
Day prior to, (ii) in the case of US Revolving Credit Loans that are ABR Loans,
10:00 a.m. on the same day as, or (iii) in the case of Swingline Loans, 12:00
noon (New York City time) on the same day as, the date of such

 

82

 

prepayment and shall promptly be transmitted
by the Administrative Agent or the Canadian Administrative Agent, as applicable,
to each of the relevant Lenders or the Swingline Lender, as the case may be;
(b) each partial prepayment of any Borrowing of Term Loans or Revolving Credit
Loans shall be in a multiple of $100,000 or C$100,000, as the case may be, and
in an aggregate principal amount of at least $1,000,000 or C$1,000,000, as the
case may be, and each partial prepayment of Swingline Loans shall be in a multiple
of $10,000 and in an aggregate principal amount of at least $100,000, provided
that no partial prepayment of LIBOR Term Loans or LIBOR Revolving Credit Loans
made pursuant to a single Borrowing shall reduce the outstanding LIBOR Term
Loans or LIBOR Revolving Credit Loans made pursuant to such Borrowing to an
amount less than the Minimum Borrowing Amount for LIBOR Term Loans or LIBOR
Revolving Credit Loans and; (c) any prepayment of LIBOR Term Loans or LIBOR
Revolving Credit Loans pursuant to this Section 5.1 on any day other than the
last day of an Interest Period applicable thereto shall be subject to
compliance by the Borrower or the Canadian Borrower, as the case may be, with
the applicable provisions of Section 2.11 and (d) BA Loans may not be repaid on
any day other than the last day of an Interest Period applicable thereto except
as may be otherwise provided in this Agreement. 
Each prepayment in respect of Term Loans pursuant to this Section 5.1
shall be (a) applied to Term Loans in such manner as the Borrower may
determine and (b) applied to reduce Tranche A Repayment Amounts or Tranche
B Repayment Amounts, as applicable, in such order as the Borrower may
determine.  At the Borrower’s election
(on its own behalf and on behalf of the Canadian Borrower) in connection with
any prepayment pursuant to this Section 5.1, such prepayment shall not be
applied to any Term Loan or Revolving Credit Loan of a Defaulting Lender.

 

5.2.          Mandatory
Prepayments.  (a)  Term
Loan Prepayments.  (i)  On
each occasion that a Prepayment Event occurs, the Borrower shall, within one
Business Day after the occurrence of a Debt Incurrence Prepayment Event and
within five Business Days after the occurrence of any other Prepayment Event,
prepay, in accordance with paragraph (c) below, the principal amount of
Term Loans in an amount equal to 100% of the Net Cash Proceeds from such
Prepayment Event, provided that, at the option of the Borrower, the Net
Cash Proceeds from any transaction permitted by Section 10.4(e) (including
pursuant to any securitization) may be applied to repay Revolving Credit Loans,
which repayment shall automatically result in the reduction of the Revolving
Credit Commitment of each Lender by an amount equal to the amount of the
Revolving Credit Loans prepaid to such Lender.

 

(ii)     Not later than the date that is ninety days
after the last day of any fiscal year (commencing with the fiscal year ending
December 31, 2005),  the Borrower
shall prepay, in accordance with paragraph (c) below, the principal of
Term Loans in an amount equal to (x) 50% of Excess Cash Flow for such
fiscal year (provided such percentage shall be reduced to 25% if the
Consolidated Total Debt to Consolidated EBITDA Ratio as of the end of such
fiscal year is less than 4.25 to 1.00, and, provided  further,
that such percentage shall be reduced to 0% if the Consolidated Total Debt to
Consolidated EBITDA Ratio as of the end of such fiscal year is less than 3.00
to 1.00), minus (y) the principal amount of Term Loans voluntarily prepaid
pursuant to Section 5.1 during such fiscal year.

 

83

 

(b)           Repayment of Revolving Credit Loans.

 

(i)      Aggregate US Revolving Credit
Outstandings.  If on any date the
aggregate amount of the Lenders’ US Revolving Credit Exposures (all the
foregoing, collectively, the “Aggregate US Revolving Credit Outstandings”)
exceeds 100% of the US Total Revolving Credit Commitment as then in effect, the
Borrower shall forthwith repay on such date the principal amount of Swingline
Loans and, after all Swingline Loans have been paid in full, Revolving Credit
Loans in an amount equal to such excess. 
If, after giving effect to the prepayment of all outstanding Swingline
Loans and Revolving Credit Loans, the Aggregate US Revolving Credit
Outstandings exceed the US Total Revolving Credit Commitment then in effect,
the Borrower shall pay to the Administrative Agent an amount in cash equal to
such excess and the Administrative Agent shall hold such payment for the
benefit of the Lenders as security for the obligations of the Borrower
hereunder (including obligations in respect of US Letters of Credit Outstanding)
pursuant to a cash collateral agreement to be entered into in form and substance
satisfactory to the Administrative Agent (which shall permit certain
Investments in Permitted Investments satisfactory to the Administrative Agent,
until the proceeds are applied to the secured obligations).

 

(ii)     Aggregate Canadian Revolving Credit
Outstandings.  If on any date the
aggregate amount of the Canadian Lenders’ Canadian Revolving Credit Exposures
(all the foregoing, collectively, the “Aggregate Canadian Revolving Credit
Outstandings”) exceeds 103% of the Canadian Total Revolving Credit
Commitment as then in effect, each of the Borrower and the Canadian Borrower,
as the case may be, shall forthwith repay on such date Canadian Revolving
Credit Loans owing by each of them, respectively, in an aggregate amount equal
to such excess.  If, after giving effect
to the prepayment of all outstanding Canadian Revolving Credit Loans (other
than BA Loans), the Aggregate Canadian Revolving Credit Outstandings exceed the
Canadian Total Revolving Credit Commitment then in effect, the Borrower and/or
the Canadian Borrower as the case may be, shall pay to the Canadian
Administrative Agent an amount in cash equal to such excess and the Canadian
Administrative Agent shall hold such payment for the benefit of the applicable
Lenders as security for the obligations of the Borrower and the Canadian
Borrower hereunder (including obligations in respect of Canadian Letters of
Credit Outstanding and BA Loans) pursuant to a cash collateral agreement to be
entered into in form and substance satisfactory to the Canadian Administrative
Agent (which shall permit certain investments in Permitted Investments
satisfactory to the Canadian Administrative Agent, until the proceeds are
applied to the secured obligations).

 

(c)           Application to Repayment Amounts.  Each prepayment of Term Loans required by Section
5.2(a) shall be initially allocated between the Tranche A Term Loans and the
Tranche B Term Loans pro rata based
on the aggregate principal amount of outstanding Borrowings of each such Class
and shall be applied to reduce the applicable Repayment Amounts in such order
as the Borrower may determine up to an amount equal to the aggregate amount of
the applicable Repayment Amounts required to be made by the Borrower pursuant
to

 

84

 

Section 2.5(b) and (c) during the two year
period immediately following the date of the prepayment (such amount being, the
“Amortization Amount”), provided that to the extent that the
amount of the prepayment exceeds the Amortization Amount, such excess shall be
applied ratably to reduce the then remaining Repayment Amounts pursuant to
Section 2.5(b) and (c).  With
respect to each such prepayment, (i) the Borrower will, not later than the date
specified in Section 5.2(a) for making such prepayment, give the
Administrative Agent telephonic notice (promptly confirmed in writing)
requesting that the Administrative Agent provide notice of such prepayment to
each Term Loan Lender, (ii) so long as any Tranche A Term Loans are outstanding,
each Tranche B Term Loan Lender will have the right to refuse any such
prepayment by giving written notice of such refusal to the Borrower within five
days after such Lender’s receipt of notice from the Administrative Agent of
such prepayment (and the Borrower shall not prepay any such Tranche B Term
Loans until the date that is specified in the immediately following clause),
(iii) the Borrower will make all such prepayments not so refused upon the
earlier of (x) such fifth day and (y) such time as the Borrower has
received notice from each Lender that it consents to or refuses such prepayment
and (iv) any prepayment so refused shall be allocated to the then
outstanding Tranche A Term Loans and shall be applied as set forth above in
this paragraph (c).

 

(d)           Application to Term Loans.  With
respect to each prepayment of Tranche A Term Loans and Tranche B Term Loans
required by Section 5.2(a), the Borrower may designate the Types of Loans
that are to be prepaid and the specific Borrowing(s) pursuant to which made, provided
that (i) LIBOR Term Loans may be designated for prepayment pursuant to
this Section 5.2(d) only on the last day of an Interest Period applicable
thereto unless all LIBOR Term Loans with Interest Periods ending on such date
of required prepayment and all ABR Loans have been paid in full; and
(ii) if LIBOR Term Loans made pursuant to a single Borrowing shall reduce
the outstanding Term Loans made pursuant to such Borrowing to an amount less than
the Minimum Borrowing Amount for LIBOR Loans, such Borrowing shall immediately
be converted into ABR Loans.  In the
absence of a designation by the Borrower as described in the preceding sentence,
the Administrative Agent shall, subject to the above, make such designation in
its reasonable discretion with a view, but no obligation, to minimize breakage
costs owing under Section 2.11.

 

(e)           Application to Revolving Credit
Loans.  With respect to each
prepayment of Revolving Credit Loans elected by the Borrower pursuant to
Section 5.2(a) or required by Section 5.2(b), the Borrower (on its own
behalf and on behalf of the Canadian Borrower) may designate (i) the Types of
Loans that are to be prepaid and the specific Borrowing(s) pursuant to which
made and (ii) the US Revolving Credit Loans or Canadian Revolving Credit Loans
to be prepaid, provided that (w) LIBOR Revolving Credit Loans may be
designated for prepayment pursuant to this Section 5.2(e) only on the last day
of an Interest Period applicable thereto unless all LIBOR Loans with Interest
Periods ending on such date of required prepayment and all ABR Loans have been
paid in full; (x) if any prepayment by the Borrower or the Canadian Borrower,
as the case may be, of LIBOR Revolving Credit Loans made pursuant to a single
Borrowing shall reduce the outstanding Dollar Equivalent of the Revolving
Credit Loans made pursuant to such Borrowing to an amount less than the Minimum
Borrowing Amount for LIBOR Revolving Credit Loans, such Borrowing shall
immediately be converted into Cdn ABR Loans or ABR

 

85

 

Loans, as applicable; (y) each prepayment of
any Loans made pursuant to a Borrowing shall be applied pro rata
among such Loans; and (z) notwithstanding the provisions of the preceding
clause (y), no prepayment made pursuant to Section 5.2(a) or Section 5.2(b) of
Revolving Credit Loans shall be applied to the Revolving Credit Loans of any
Defaulting Lender.  In the absence of a
designation by the Borrower as described in the preceding sentence, the
Administrative Agent shall, subject to the above, make such designation in its
reasonable discretion with a view, but no obligation, to minimize breakage
costs owing under Section 2.11.

 

(f)            BA and LIBOR Interest Periods.  In lieu of making any payment pursuant to
this Section 5.2 in respect of any BA Loan or LIBOR Loan other than on the
last day of the Interest Period therefor so long as no Default or Event of
Default shall have occurred and be continuing, the Borrower or the Canadian
Borrower, as the case may be, at its option may deposit with the Administrative
Agent an amount equal to the amount of the BA Loan or LIBOR Loan to be prepaid
and such BA Loan or LIBOR Loan, as the case may be, shall be repaid on the last
day of the Interest Period therefor in the required amount.  Such deposit shall be held by the Administrative
Agent in a corporate time deposit account established on terms reasonably
satisfactory to the Administrative Agent, earning interest at the
then-customary rate for accounts of such type. 
Such deposit shall constitute cash collateral for the Obligations, provided
that the Borrower or the Canadian Borrower, as the case may be, may at any time
direct that such deposit be applied to make the applicable payment required
pursuant to this Section 5.2.

 

(g)           Minimum Amount.  No prepayment shall be required pursuant to
Section 5.2(a)(i) unless and until the amount at any time of Net Cash
Proceeds from Prepayment Events required to be applied at or prior to such time
pursuant to such Section and not yet applied at or prior to such time to prepay
Term Loans pursuant to such Section exceeds the Dollar Equivalent of
$15,000,000 in the aggregate for all such Prepayment Events.

 

(h)           Foreign Asset Sales.  Notwithstanding any other provisions of this
Section 5.2, (i) to the extent that any of or all the Net Cash
Proceeds of any asset sale by a Restricted Foreign Subsidiary giving rise to an
Asset Sale Prepayment Event (a “Foreign Asset Sale”) or Excess Cash Flow
are prohibited or delayed by applicable local law from being repatriated to the
United States, the portion of such
Net Cash Proceeds or Excess Cash Flow so affected will not be required to be
applied to repay Term Loans at the times provided in this Section 5.2 but
may be retained by the applicable Restricted Foreign Subsidiary so long, but
only so long, as the applicable local law will not permit repatriation to the
United States (the Borrower and the Canadian Borrower hereby agreeing to
cause the applicable Restricted Foreign Subsidiary to promptly take all actions
required by the applicable local law to permit such repatriation), and once
such repatriation of any of such affected Net Cash Proceeds or Excess Cash Flow
is permitted under the applicable local law, such repatriation will be
immediately effected and such repatriated Net Cash Proceeds or Excess Cash Flow
will be promptly (and in any event not later than two Business Days after
such repatriation) applied (net of additional taxes payable or reserved against
as a result thereof) to the repayment of the Term Loans pursuant to this
Section 5.2 and (ii) to the extent that the Borrower (on its own
behalf and on behalf of the Canadian Borrower) has determined in good faith
that repatriation of any of or all the Net Cash Proceeds of any Foreign Asset
Sale or Excess Cash Flow would have a material

 

86

 

adverse tax cost consequence with respect to
such Net Cash Proceeds or Excess Cash Flow, the Net Cash Proceeds or Excess Cash
Flow so affected may be retained by the applicable Restricted Foreign
Subsidiary, provided that, in the case of this clause (ii), on or
before the date on which any Net Cash Proceeds or Excess Cash Flow so retained
would otherwise have been required to be applied to prepayments pursuant to Section 5.2(a),
(x) the Borrower or the Canadian Borrower, as the case may be, applies an
amount equal to such Net Cash Proceeds or Excess Cash Flow to such prepayments
as if such Net Cash Proceeds or Excess Cash Flow had been received by the
Borrower or the Canadian Borrower, as the case may be, rather than such Restricted
Foreign Subsidiary, less the amount of additional taxes that would have been
payable or reserved against if such Net Cash Proceeds or Excess Cash Flow had
been repatriated (or, if less, the Net Cash Proceeds or Excess Cash Flow that
would be calculated if received by such Restricted Foreign Subsidiary) or
(y) such Net Cash Proceeds or Excess Cash Flow are applied to the
repayment of Indebtedness of a Restricted Foreign Subsidiary.

 

5.3.          Method
and Place of Payment. 
(a)  Except as otherwise specifically provided herein, all
payments under this Agreement shall be made by the Borrower or the Canadian
Borrower, without set-off, counterclaim or deduction of any kind, to the
Administrative Agent or the Canadian Administrative Agent, as applicable, for
the ratable account of the Lenders entitled thereto, the Letter of Credit
Issuer, the Canadian Letter of Credit Issuer or the Swingline Lender, as the
case may be, not later than 12:00 Noon (New York City time) on the date
when due and shall be made (i) in the case of amounts payable in Dollars, in
immediately available funds at the Administrative Agent’s Office and (ii) in
the case of amounts payable in a Canadian Dollars, in immediately available
funds at the Canadian Administrative Agent’s Office.  All payments under each Credit Document
(whether of principal, interest or otherwise) shall be made (i) in the
case of the principal of and interest on each Loan, in the currency in which
such Loan is denominated, (ii) in the case of reimbursement obligations in
respect of Letters of Credit, in the currency in which such Letter of Credit is
denominated or (iii) in the case of any indemnification or expense
reimbursement payment, in Dollars, except as otherwise expressly provided
herein.  The Administrative Agent or the
Canadian Administrative Agent, as applicable, will thereafter cause to be
distributed on the same day (if payment was actually received by the Administrative
Agent or the Canadian Administrative Agent, as applicable, prior to 2:00 p.m.
(New York City time) on such day) like funds relating to the payment of
principal or interest or Fees ratably to the Lenders entitled thereto.

 

(b)           Any payments under this Agreement
that are made later than 2:00 p.m. (New York City time) shall be deemed to
have been made on the next succeeding Business Day.  Except as otherwise provided herein, whenever
any payment to be made hereunder shall be stated to be due on a day that is not
a Business Day, the due date thereof shall be extended to the next succeeding
Business Day and, with respect to payments of principal, interest shall be
payable during such extension at the applicable rate in effect immediately
prior to such extension.

 

5.4.          Net Payments.  (a) 
Subject to the following sentence, all payments made by or on behalf of
the Borrower and the Canadian Borrower under this Agreement or any other Credit
Document shall be made free and clear of, and without deduction or withholding
for or on

 

87

 

account of, any current or future income,
stamp or other taxes, levies, imposts, duties, charges, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed
by any Governmental Authority, excluding (i) net income taxes and
franchise taxes (imposed in lieu of net income taxes) and capital taxes imposed
on the Administrative Agent, the Canadian Administrative Agent or any Lender
and (ii) any taxes imposed on the Administrative Agent, the Canadian
Administrative Agent or any Lender as a result of a current or former
connection between the Administrative Agent, the Canadian Administrative Agent
or such Lender and the jurisdiction of the Governmental Authority imposing such
tax or any political subdivision or taxing authority thereof or therein (other
than any such connection arising solely from the Administrative Agent, the
Canadian Administrative Agent or such Lender having executed, delivered or performed
its obligations or received a payment under, or enforced, this Agreement).  If any such non-excluded taxes, levies,
imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded
Taxes”) are required to be withheld from any amounts payable under this
Agreement, the Borrower or the Canadian Borrower, as applicable, shall increase
the amounts payable to the Administrative Agent, the Canadian Administrative
Agent or such Lender to the extent necessary to yield to the Administrative
Agent, the Canadian Administrative Agent or such Lender (after payment of all
Non-Excluded Taxes) interest or any such other amounts payable hereunder at the
rates or in the amounts specified in this Agreement; provided, however, that
the Borrower shall not be required to increase any such amounts payable to any
Lender that is not organized under the laws of the United States of America or
a state thereof (a “Non-US Lender”) if such Lender fails to comply with
the requirements of paragraph (b) of this Section 5.4.  Whenever any Non-Excluded Taxes are payable
by the Borrower or the Canadian Borrower, as the case may be, as promptly as
possible thereafter, such Borrower or Canadian Borrower shall send to the
Administrative Agent or the Canadian Administrative Agent for its own account
or for the account of such Lender, as the case may be, a certified copy of an
original official receipt (or other evidence acceptable to such Lender, acting
reasonably) received by such Borrower or Canadian Borrower showing payment
thereof.  If the Borrower or the Canadian
Borrower, as the case may be, fails to pay any Non-Excluded Taxes when due to
the appropriate taxing authority or fails to remit to the Administrative Agent
or the Canadian Administrative Agent the required receipts or other required
documentary evidence, such Borrower or Canadian Borrower shall indemnify the
Administrative Agent, the Canadian Administrative Agent and the Lenders for any
incremental taxes, interest, costs or penalties that may become payable by the
Administrative Agent, the Canadian Administrative Agent or any Lender as a
result of any such failure.  The
agreements in this Section 5.4(a) shall survive the termination of this
Agreement and the payment of the Loans and all other amounts payable hereunder.

 

(b)           Each Non-US Lender (other than a
Canadian Lender making Loans only to the Canadian Borrower) shall:

 

(i)      deliver to the Borrower and the
Administrative Agent two copies of either (x) in the case of a Non-US
Lender claiming exemption from U.S. Federal withholding tax under
Section 871(h) or 881(c) of the Code with respect to payments of “portfolio
interest”, United States Internal Revenue Service Form W-8BEN (together
with a certificate representing that such Non-US Lender is not a bank for
purposes of Section 881(c) of the Code, is not a 10-percent shareholder
(within the meaning of

 

88

 

Section 871(h)(3)(B) of the Code) of the
Borrower and is not a controlled foreign corporation related to the Borrower
(within the meaning of Section 864(d)(4) of the Code)), or (y) Internal
Revenue Service Form W-8BEN or Form W-8ECI, in each case properly completed and
duly executed by such Non-US Lender claiming complete exemption from, or
reduced rate of, U.S. Federal withholding tax on payments by the Borrower under
this Agreement;

 

(ii)     deliver to the Borrower and the
Administrative Agent two further copies of any such form or certification (or
any applicable successor form) on or before the date that any such form or
certification expires or becomes obsolete and after the occurrence of any event
requiring a change in the most recent form previously delivered by it to the
Borrower; and

 

(iii)    obtain such extensions of time for filing
and complete such forms or certifications as may reasonably be requested by the
Borrower or the Administrative Agent;

 

unless in any
such case any change in treaty, law or regulation has occurred prior to the
date on which any such delivery would otherwise be required that renders any
such form inapplicable or would prevent such Lender from duly completing and
delivering any such form with respect to it and such Lender so advises the
Borrower and the Administrative Agent. 
Each Person that shall become a Participant pursuant to Section 13.6 or
a Lender pursuant to Section 13.6 shall, upon the effectiveness of the related
transfer, be required to provide all the forms and statements required pursuant
to this Section 5.4(b), provided that in the case of a Participant such
Participant shall furnish all such required forms and statements to the Lender
from which the related participation shall have been purchased.

 

(c)           The Borrower shall not be required to
indemnify any Non-US Lender, or to pay any additional amounts to any Non-US
Lender, in respect of U.S. Federal withholding tax pursuant to
paragraph (a) above to the extent that (i) the obligation to withhold
amounts with respect to U.S. Federal withholding tax existed on the date such
Non-US Lender became a party to this Agreement (or, in the case of a Participant
that is not organized under the laws of the United States of America or a state
thereof (a “Non-US Participant”), on the date such Non-US Participant
became a Participant hereunder); provided, however, that this
clause (i) shall not apply to the extent that (x) the indemnity
payments or additional amounts any Lender (or Participant) would be entitled to
receive (without regard to this clause (i)) do not exceed the indemnity
payment or additional amounts that the person making the assignment, participation
or transfer to such Lender (or Participant) would have been entitled to receive
in the absence of such assignment, participation or transfer, or (y) such
assignment, participation or transfer had been requested by the Borrower or the
Canadian Borrower, (ii) the obligation to pay such additional amounts
would not have arisen but for a failure by such Non-US Lender or Non-US
Participant to comply with the provisions of paragraph (b) above or
(iii) any of the representations or certifications made by a Non-US Lender
or Non-US Participant pursuant to paragraph (b) above are incorrect at the time
a payment hereunder is made, other than by reason of any change in treaty, law
or regulation having effect after the date such representations or

 

89

 

certifications were made. The Canadian
Borrower shall not be required to indemnify or pay additional amounts to a
Lender or Administrative Agent in respect of Canadian withholding tax pursuant
to paragraph (a) above to the extent that such Non-Excluded Taxes result from a
failure by the Lender or Administrative Agent to comply with any certification,
identification, information, documentation or other reporting requirement
(collectively referred to in this Section 5.4(c) as a “Reporting Requirement”)
if (i) compliance is required by law, regulation, administrative practice or
any applicable tax treaty as a precondition to exemption from or a reduction in
the rate of deduction or withholding of Non-Excluded Taxes, and (ii) the
Canadian Borrower has first made written request to the Lender or the Canadian
Administrative Agent, as applicable, that the Lender or Administrative Agent
comply with the particular Reporting Requirement (identified specifically in
such request) and the Lender or Administrative Agent, as applicable, has not
complied with such Reporting Requirement within 30 Business Days of such
written request; provided, however that the Canadian Borrower
shall not be relieved of its obligation to indemnify or pay additional amounts
to a Lender or Administrative Agent (x) in respect of certain payments where
the obligation to indemnify or pay additional amounts in respect of those
payments arose prior to Canadian Borrower’s written request to the Lender or
Canadian Administrative Agent, as applicable, respecting such Reporting
Requirement, (y) if, by reason of any change in any law, regulation,
administrative practice or applicable tax treaty occurring after the date
hereof, the Lender or Administrative Agent, as applicable, is unable to duly
comply with such Reporting Requirement, or (z) to the extent that the
additional payment or indemnity compensates the Lender or Administrative Agent
for an amount to which the Lender or Administrative Agent would have been entitled
to receive under paragraph (a) had the Lender or Administrative Agent, as
applicable complied with the Reporting Requirement.

 

(d)           If the Borrower or the Canadian
Borrower determines in good faith that a reasonable basis exists for contesting
any taxes for which indemnification has been demanded hereunder, the relevant
Lender, the Canadian Administrative Agent or the Administrative Agent, as
applicable, shall cooperate with such Borrower of Canadian Borrower in
challenging such taxes at Borrower’s or Canadian Borrower’s expense if so
requested by Borrower or Canadian Borrower. 
If any Lender, the Canadian Administrative Agent or the Administrative
Agent, as applicable, receives a refund of a tax for which a payment has been
made by the Borrower or the Canadian Borrower pursuant to this Agreement, which
refund in the good faith judgment of such Lender, the Canadian Administrative
Agent or Administrative Agent, as the case may be, is attributable to such
payment made by such Borrower or Canadian Borrower, then the Lender, the
Canadian Administrative Agent or the Administrative Agent, as the case may be,
shall reimburse Borrower or Canadian Borrower for such amount (together with
any interest received thereon) as the Lender, the Canadian Administrative Agent
or Administrative Agent, as the case may be, determines to be the proportion of
the refund as will leave it, after such reimbursement, in no better or worse
position than it would have been in if the payment had not been required.  A Lender, the Canadian Administrative Agent
or Administrative Agent shall claim any refund that it determines is available
to it, unless it concludes in its reasonable discretion that it would be
adversely affected by making such a claim. 
Neither the Lender, the Canadian Administrative Agent nor the
Administrative Agent shall be obliged to disclose any information regarding its
tax affairs or computations to the Borrower or the Canadian Borrower in
connection with this paragraph (d) or any other provision of this Section 5.4.

 

90

 

(e)           Each Lender represents and agrees
that, on the date hereof and at all times during the term of this Agreement, it
is not and will not be a conduit entity participating in a conduit financing
arrangement (as defined in Section 7701(1) of the Code and the regulations
thereunder) with respect to the Borrowings hereunder unless the Borrower has
consented to such arrangement prior thereto.

 

(f)            Notwithstanding Section 5.4(a), the
Canadian Borrower shall not be required to indemnify or pay any additional amounts
in respect of Canadian withholding tax imposed under Part XIII of the Tax Act
applicable to any amount payable with respect to Canadian Revolving Credit
Loans or Canadian Letters of Credit pursuant to Section 5.4(a) above to any
Lender that is not a Canadian Resident for the purposes of the Tax Act, except
if any such Loans were assigned, participated or transferred to such Lender at
the request of the Borrower or the Canadian Borrower or were assigned,
participated or transferred to such Lender following the occurrence of and
during the continuance of an Event of Default pursuant to Section 11.1 or 11.5.

 

5.5.          Computations
of Interest and Fees. 
(a)  Interest on LIBOR Loans and, except as provided in the
next succeeding sentence, ABR Loans shall be calculated on the basis of a
360-day year for the actual days elapsed. 
Interest on (i) Canadian Prime Loans, (ii) ABR Loans in respect of which
the rate of interest is calculated on the basis of the Prime Rate, (iii) Cdn
ABR Loans in respect of which the rate of interest is calculated on the basis
of the Canadian Administrative Agent’s reference rate and (iv) interest on
overdue interest shall be calculated on the basis of a 365- (or 366-, as the
case may be) day year for the actual days elapsed.

 

(b)           All Fees shall be calculated on the
basis of a 365- (or 366-, as the case may be) day year for the actual days
elapsed.

 

5.6.          Limit
on Rate of Interest.

 

(a)           No Payment shall exceed Lawful
Rate.  Notwithstanding any other term
of this Agreement, neither the Borrower nor the Canadian Borrower shall be
obliged to pay any interest or other amounts under or in connection with this
Agreement in excess of the amount or rate permitted under or consistent with
any applicable law, rule or regulation. 
In particular, the Canadian Borrower shall not be obliged to pay any
interest or other amounts which would result in the receipt by any Lender of
interest on credit advanced at a rate in excess of the rate permitted under the
Criminal Code (Canada).  For purposes of this Section 5.6, “interest”
and “credit advanced” have the meanings ascribed in the Criminal Code (Canada) and the “effective
annual rate of interest” shall be calculated in accordance with generally
accepted actuarial practices and principles.

 

(b)           Payment at Highest Lawful Rate.  If either the Borrower or the Canadian
Borrower is not obliged to make a payment which it would otherwise be required
to make as a result of Section 5.6(a), the Borrower or the Canadian Borrower,
as applicable, shall make such payment to the maximum extent permitted by or
consistent with applicable laws, rules and regulations.

 

 

91

 

(c)           Adjustment if any Payment exceeds
Lawful Rate.  If any provision of
this Agreement or any of the other Credit Documents would obligate the Borrower
or the Canadian Borrower to make any payment of interest or other amount
payable to any Lender in an amount or calculated at a rate which would be
prohibited by any applicable law, rule or regulation, or in the case of the
Canadian Borrower, would result in a receipt by that Lender of interest at a
criminal rate (as such terms are construed under the Criminal Code (Canada)), then notwithstanding such
provision, such amount or rate shall be deemed to have been adjusted with
retroactive effect to the maximum amount or rate of interest, as the case may
be, as would not be so prohibited by law (in the case of the Borrower or the
Canadian Borrower) or so result in a receipt by that Lender of interest at a
criminal rate (in the case of the Canadian Borrower), such adjustment to be
effected, to the extent necessary, as follows:

 

(i)      firstly, by reducing the amount or rate of
interest required to be paid by the Borrower or the Canadian Borrower to the
affected Lender under Section 2.8; and

 

(ii)     thereafter, by reducing any fees,
commissions, premiums and other amounts required to be paid by the Borrower or
the Canadian Borrower to the affected Lender where, in the case of the Canadian
Borrower, such amounts would constitute interest for purposes of Section 347 of
the Criminal Code (Canada).

 

Notwithstanding
the foregoing, and after giving effect to all adjustments contemplated thereby,
if any Lender shall have received from the Borrower or the Canadian Borrower an
amount in excess of the maximum permitted by any applicable law, rule or
regulation, or in the case of the Canadian Borrower, an amount in excess of the
maximum permitted under the Criminal Code (Canada),
then the Borrower or the Canadian Borrower, as applicable, shall be entitled,
by notice in writing to the Administrative Agent or the Canadian Administrative
Agent, as applicable, to obtain reimbursement from such Lender in an amount
equal to such excess, and pending such reimbursement, such amount shall be
deemed to be an amount payable by that Lender to the Borrower or the Canadian
Borrower, as applicable.  Any amount or
rate of interest referred to in this Section 5.6(c) shall be determined in
accordance with generally accepted actuarial practices and principles as an
effective annual rate of interest over the term that any Loan remains
outstanding on the assumption, with respect to Canadian Borrowings, that any
charges, fees or expenses that fall within the meaning of “interest” (as
defined in the Criminal Code (Canada))
shall, if they relate to a specific period of time, be pro-rated over that period of time and
otherwise be pro-rated over the
period from the Closing Date to the Maturity Date.

 

SECTION 6A.  Conditions Precedent to Initial
Borrowing

 

The initial Borrowing
under this Agreement is subject to the satisfaction of the following conditions
precedent:

 

6.1.          Credit
Documents.  The Administrative
Agent or the Collateral Agent (as applicable) shall have received:

 

(a)           this Agreement, executed and
delivered by a duly authorized officer of Holdings, the Borrower, the Canadian
Borrower and each Lender;

 

92

 

(b)           the Guarantee Agreements, executed
and delivered by a duly authorized officer of each applicable Guarantor;

 

(c)           the Security Agreement, executed and
delivered by a duly authorized officer of each grantor party thereto; and

 

(d)           the Canadian Security Agreement,
executed and delivered by a duly authorized officer of each grantor party
thereto.

 

6.2.          Collateral.  (a)  All outstanding equity
interests in whatever form of the Borrower and each Restricted Subsidiary
directly owned by or on behalf of any Credit Party shall have been pledged
pursuant to the Security Agreements (except that the Borrower and its Restricted
Subsidiaries shall not be required to pledge more than 65% of the outstanding
voting equity interests of any Restricted Foreign Subsidiary) and the
Collateral Agent shall have received all certificates representing securities
pledged under the Security Agreements to the extent certificated, accompanied
by instruments of transfer and undated stock powers endorsed in blank.

 

(b)           All Indebtedness for borrowed money
in excess of $1,000,000 of the Borrower and each Subsidiary that is owing to
any Credit Party shall be evidenced by one or more global promissory notes and
shall have been pledged pursuant to the Security Agreements, and the Collateral
Agent shall have received all such promissory notes, together with instruments
of transfer with respect thereto endorsed in blank.

 

(c)           All documents and instruments,
including Uniform Commercial Code, PPSA or other applicable personal property
and fixture security financing statements, required by law or reasonably
requested by the Administrative Agent to be filed, registered or recorded to
create the Liens intended to be created by the Security Agreements and perfect
such Liens to the extent required by, and with the priority required by, the Security
Agreements and each Mortgage, as applicable, shall have been filed, registered
or recorded or delivered to the Administrative Agent for filing, registration
or recording.

 

(d)           The Borrower shall have delivered to
the Administrative Agent a completed Perfection Certificate, executed and
delivered by an Authorized Officer and the chief legal officer of the Borrower,
together with all attachments contemplated thereby and certified copies of UCC,
PPSA, United States Patent and Trademark Office and United States Copyright
Office, tax and judgment lien searches, bankruptcy and pending lawsuit searches
or equivalent reports or searches, each of a recent date listing all effective
financing statements, lien notices or comparable documents that name any Credit
Party as debtor and that are filed in those state and county jurisdictions in
which any property of any Credit Party is located and the state and county
jurisdictions in which any Credit Party is organized or maintains its principal
place of business and such other searches that the Administrative Agent deems
necessary or appropriate, none of which encumber the Collateral covered or
intended to be covered by the Security Documents (other than Permitted Liens);

 

93

 

6.3.          Legal
Opinions.  The Administrative
Agent shall have received the executed legal opinions of (a) Simpson,
Thacher & Bartlett LLP, special New York counsel to the Borrower,
substantially in the form of Exhibit I-1, (b) Paula R.
Johnson, General Counsel to the Borrower substantially in the form of Exhibit
I-2, (c) Osler, Hoskin & Harcourt LLP, special Canadian counsel for the
Borrower, substantially in the form of Exhibit I-3 and (d) local
counsel to the Borrower in certain jurisdictions as may be reasonably requested
by the Administrative Agent, substantially in the form of Exhibit I-4.  The Borrower, the other Credit Parties and
the Administrative Agent hereby instruct such counsel to deliver such legal
opinions.

 

6.4.          Representations
and Warranties; No Default. 
The Administrative Agent shall have received a certificate of an
Authorized Officer of the Borrower, dated the Closing Date, certifying that (a)
on the Closing Date, the representations and warranties made by the Borrower in
Section 8, as they relate to the Credit Parties at such time, are true and
correct in all material respects and (b) after giving effect to the Borrowings
on the Closing Date and the other transactions contemplated hereby, no Default
or Event of Default shall have occurred and be continuing.

 

6.5.          Senior
Subordinated Notes.  The Borrower
shall have received gross proceeds of $500,000,000 (or such lesser amount
sufficient, together with the KKR Equity Contribution and the proceeds
generated hereunder, to consummate the Transactions) from the issuance of
Senior Subordinated Notes under the Senior Subordinated Notes Indenture in a
Rule 144A or other private placement (the terms and conditions of the Senior
Subordinated Notes (including, but not limited to, subordination, maturity,
covenants, events of default, remedies, redemption and prepayment events) shall
be reasonably satisfactory to the Agents).

 

6.6.          Equity
Contributions.  The Rollover
Equity Contribution shall be in effect and the KKR Equity Contribution shall
have been made on terms and pursuant to documentation reasonably acceptable to
the Administrative Agent.

 

6.7.          Closing
Certificates.  The Administrative
Agent shall have received a certificate of each Credit Party, dated the Closing
Date, in the case of the Borrower substantially in the form of Exhibit J-1,
and in the case of each other Credit Party, substantially in the form of Exhibit
J-2, in each case with appropriate insertions, executed by the President or
any Vice President and the Secretary or any Assistant Secretary of such Credit
Party, and attaching the documents referred to in Sections 6.8 and 6.9.

 

6.8.          Corporate
Proceedings of Each Credit Party.  The Administrative Agent shall have received
a copy of the resolutions, in form and substance satisfactory to the Administrative
Agent, of the Board of Directors of each Credit Party (or a duly authorized
committee thereof) authorizing (a) the execution, delivery and performance of
the Credit Documents (and any agreements relating thereto) to which it is a
party and (b) in the case of the Borrower and the Canadian Borrower, the extensions
of credit contemplated hereunder.

 

94

 

6.9.          Corporate
Documents.  The Administrative
Agent shall have received true and complete copies of the certificate of
incorporation and by-laws (or equivalent organizational documents) of each
Credit Party.

 

6.10.        Other
Documents.  The Administrative
Agent shall have received the Scotiabank Intercreditor Agreement, executed and
delivered by a duly authorized officer of The Bank of Nova Scotia.

 

6.11.        Fees.  The Lenders shall have received the fees in
the amounts previously agreed in writing by the Agents and such Lenders to be
received on the Closing Date and all expenses (including the reasonable fees,
disbursements and other charges of counsel) for which invoices have been
presented on or prior to the Closing Date shall have been paid.

 

6.12.        Related
Agreements.  The Administrative
Agent shall have received a fully executed or conformed copy of the Acquisition
Agreements, each of which shall be in full force and effect and in form and
substance reasonably satisfactory to the Agents.

 

6.13.        Solvency
Certificate.  On the Closing
Date, the Administrative Agent shall have received a certificate from the chief
financial officer of the Borrower in form, scope and substance satisfactory to
Administrative Agent, with appropriate attachments and demonstrating that after
giving effect to the consummation of the Transactions, the Borrower on a
consolidated basis with its Subsidiaries is Solvent.

 

6.14.        Governmental
Authorizations and Consents. 
Each Credit Party shall have obtained all approval and
authorizations of Governmental Authorities and all consents of other Persons,
in each case that are necessary in connection with the Transactions and the
transactions contemplated by the Credit Documents and each of the foregoing
shall be in full force and effect.  All
applicable waiting periods shall have expired without any action being taken or
threatened by any competent authority which would restrain, prevent or
otherwise impose adverse conditions on the transactions contemplated by the
Acquisition and the Credit Documents and no action, request for stay, petition
for review or rehearing, reconsideration, or appeal with respect to any of the
foregoing shall be pending, and the time for any applicable agency to take
action to set aside its consent on its own motion shall have expired.

 

6.15.        Historical
Financial Statements.  The
Lenders shall have received the Historical Audited Financial Statements and the
Historical Unaudited Financial Statements.

 

6.16.        Pro
Forma Financial Statements.  The
Administrative Agent shall have received the Pro Forma Financial Statements,
together with a certificate of the chief financial officer of Borrower to the
effect that such statements accurately present the pro forma financial position
of Borrower and its subsidiaries in accordance with GAAP as of the date of the
pro forma balance sheet forming part of the Pro Forma Financial Statements and
for the period covered by the related pro forma income statement, assuming that
the Transactions had actually occurred at such date or at the beginning of such
period, as the case may be.

 

95

 

6.17.        Acquisition.  Concurrently with the initial Credit Event
made hereunder, the Acquisition shall have been consummated on terms and
conditions reasonably satisfactory to the Agents.

 

6.18.        Insurance.  Certificates of insurance evidencing the
existence of all insurance required to be maintained by the Borrower pursuant
to Section 9.3 and, if applicable, the designation of the Administrative Agent
and the Collateral Agent, as applicable, as an additional insured and loss
payee as its interest may appear thereunder, or solely as the additional
insured, as the case may be, thereunder, such certificates to be in such form
and contain such information as is specified in Section 9.3 (provided  that if such endorsement as additional
insured cannot be delivered by the Closing Date, the Administrative Agent may
consent to such endorsement being delivered at such later date as it deems
appropriate in the circumstances).  In
addition, the Borrower shall have delivered a certificate of an Authorized
Officer of the Borrower setting forth the insurance obtained by it in
accordance with the requirements of Section 9.3 and stating that such insurance
is in full force and effect and that all premiums then due and payable thereon
have been paid.

 

6.19.        Existing
Indebtedness.  (a)  The
requisite consents in connection with each Consent Solicitation shall have been
obtained, the indenture governing each of the Existing Opco Notes shall have
been amended pursuant to an effective supplemental indenture that effects the
related amendments thereto and the Closing Date Other Tender Procedures shall have
been implemented.

 

(b)           Concurrently with the initial Credit
Event made hereunder, the Other Refinancing Transactions shall have been
consummated on terms and conditions reasonably satisfactory to the Agents.

 

(c)           Immediately after giving effect to
the Transactions and the other transactions contemplated hereby, the Borrower
and the Subsidiaries shall have outstanding no Indebtedness or preferred stock
other than (i) Indebtedness outstanding under this Agreement,
(ii) the Senior Subordinated Notes, (iii) Specified Existing Opco
Notes not tendered pursuant to the Tender Offers for such notes and other
Existing Opco Notes in respect of which the Closing Date Other Tender
Procedures shall have been implemented and (iv) existing Indebtedness
satisfactory to the Agents.  Immediately
after giving effect to the Transactions and the other transactions contemplated
hereby, Holdings shall have no outstanding Indebtedness or preferred stock
other than its Guarantee of the Indebtedness outstanding under this Agreement and
its Guarantee of the Senior Subordinated Notes.

 

6.20.        No
Material Adverse Change.  There
shall not have occurred any change or condition since December 31, 2003 (with
respect to any matter that relates to Von Hoffman Holdings or its
subsidiaries), January 3, 2004 (with respect to any matter that relates to
Jostens or its subsidiaries) or June 30, 2004 (with respect to any matter that
relates to Arcade Holdings or its subsidiaries), that, individually or in the
aggregate, has had, or could reasonably be expected to have, an effect that is
materially adverse to the business, properties, assets, financial condition or
results of operations of the Borrower and its Subsidiaries (after giving pro
forma effect to the

 

96

 

Acquisition), taken as a whole, except for
any change or condition that arises out of, results from or is attributable to
(a) any change in general business or economic conditions, (b) the
execution, announcement or consummation of the Acquisition Agreements and the
transactions contemplated thereby, including any impact thereof on
relationships, contractual or otherwise, with customers, suppliers,
distributors, partners or employees or (c) any act of terrorism or war
(whether or not threatened, pending or declared), in each case that does not
have a disproportionate effect on the Predecessor Companies and their
subsidiaries, taken as a whole.

 

SECTION 6B.  Conditions to Delayed Draw Borrowing

 

The obligation
of each Lender to make a Tranche B Term Loan on the Delayed Draw Date is
subject to the condition precedent that, concurrently with such Credit Event,
the Existing Opco Notes comprising the Unpaid Refinancing Amount shall be
redeemed in accordance with the terms of the applicable indenture governing
such Existing Opco Notes and applicable law.

 

SECTION 7.  Conditions Precedent to All Credit
Events

 

The agreement
of each Lender to make any Loan requested to be made by it on any date
(excluding Mandatory Borrowings) and the obligation of each Letter of Credit Issuer
to issue any Letter of Credit on any date is subject to the satisfaction of the
following conditions precedent:

 

7.1.          No Default;
Representations and Warranties.  At
the time of each Credit Event and also after giving effect thereto (a) no
Default or Event of Default shall have occurred and be continuing and (b) all
representations and warranties made by any Credit Party contained herein or in
the other Credit Documents shall be true and correct in all material respects
with the same effect as though such representations and warranties had been
made on and as of the date of such Credit Event (except where such representations
and warranties expressly relate to an earlier date, in which case such representations
and warranties shall have been true and correct in all material respects as of
such earlier date).

 

7.2.          Notice of
Borrowing; Letter of Credit Request.  (a)  Prior to the making of each
Term Loan, each Revolving Credit Loan (other than any Revolving Credit Loan
made pursuant to Section 3.4(a)) and each Swingline Loan, the
Administrative Agent (or, in the case of any Canadian Borrowing, the Canadian
Administrative Agent) shall have received a Notice of Borrowing (whether in
writing or by telephone) meeting the requirements of Section 2.3.

 

(b)           Prior to the issuance of each Letter
of Credit, the Administrative Agent or the Canadian Administrative Agent, as
applicable, and the relevant Letter of Credit Issuer shall have received a
Letter of Credit Request meeting the requirements of Section 3.2(a) or (b), as
the case may be.

 

The acceptance
of the benefits of each Credit Event shall constitute a representation and warranty
by each Credit Party to each of the Lenders that all the applicable conditions
specified above shall have been satisfied as of that time.

 

97

 

SECTION 8.  Representations, Warranties and
Agreements

 

In order to
induce the Lenders to enter into this Agreement, to make the Loans and issue or
participate in Letters of Credit as provided for herein, each of Holdings, the
Borrower and the Canadian Borrower makes the following representations and
warranties to, and agreements with, the Lenders, all of which shall survive the
execution and delivery of this Agreement and the making of the Loans and the
issuance of the Letters of Credit:

 

8.1.          Corporate
Status.  Holdings, the Borrower,
the Canadian Borrower and each Material Subsidiary (a) is a duly organized and
validly existing corporation or other entity in good standing under the laws of
the jurisdiction of its organization and has the corporate or other
organizational power and authority to own its property and assets and to
transact the business in which it is engaged and (b) has duly qualified and is
authorized to do business and is in good standing in all jurisdictions where it
is required to be so qualified, except where the failure to be so qualified
could not reasonably be expected to result in a Material Adverse Effect.

 

8.2.          Corporate
Power and Authority.  Each Credit
Party has the corporate or other organizational power and authority to execute,
deliver and carry out the terms and provisions of the Credit Documents to which
it is a party and has taken all necessary corporate or other organizational
action to authorize the execution, delivery and performance of the Credit
Documents to which it is a party (and, in the case of the Borrower and the
Canadian Borrower, to borrow hereunder). 
Each Credit Party has duly executed and delivered each Credit Document
to which it is a party and each such Credit Document constitutes the legal,
valid and binding obligation of such Credit Party enforceable in accordance
with its terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting creditors’ rights generally and subject to
general principles of equity.

 

8.3.          Authorization;
No Violation.  Neither the execution,
delivery or performance by any Credit Party of the Credit Documents to which it
is a party nor compliance with the terms and provisions thereof nor the
consummation of the Transactions and the other transactions contemplated hereby
or thereby will (a) contravene any applicable provision of any material
law, statute, rule, regulation, order, writ, injunction or decree of any court
or governmental instrumentality, (b) result in any breach of any of the
terms, covenants, conditions or provisions of, or constitute a default under,
or result in the creation or imposition of (or the obligation to create or
impose) any Lien upon any of the property or assets of Holdings, the Borrower,
the Canadian Borrower or any of the other Restricted Subsidiaries (other than
Liens created under the Credit Documents) pursuant to, the terms of any
material indenture (including the Senior Subordinated Notes Indenture), loan
agreement, lease agreement, mortgage, deed of trust, agreement or other
material instrument to which the Borrower, the Canadian Borrower or any of the
other Restricted Subsidiaries is a party or by which it or any of its property
or assets is bound or (c) violate any provision of the certificate of
incorporation, by-laws or other constitutional documents of Holdings, the
Borrower, the Canadian Borrower or any of the other Restricted Subsidiaries.

 

98

 

8.4.          Litigation.  There are no actions, suits or proceedings
(including Environmental Claims) pending or, to the knowledge of Holdings, the
Borrower or the Canadian Borrower, threatened with respect to Holdings, the
Borrower, the Canadian Borrower or any of the other Subsidiaries that could
reasonably be expected to result in a Material Adverse Effect or a Material
Adverse Change.

 

8.5.          Margin
Regulations.  Neither the making
of any Loan hereunder nor the use of the proceeds thereof or of the proceeds of
any drawing under any Letter of Credit will violate the provisions of
Regulation T, U or X of the Board.

 

8.6.          Governmental
Approvals.  The execution,
delivery and performance of the Acquisition Agreements or any Credit Document
does not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority, except for (i) such as have
been obtained or made and are in full force and effect, (ii) filings and
recordings in respect of the Liens created pursuant to the Security Documents
and (iii) such licenses, approvals, authorizations or consents the failure to
obtain or make could not reasonably be expected to have a Material Adverse
Effect.

 

8.7.          Investment
Company Act.  None of Holdings,
the Borrower or the Canadian Borrower is an “investment company” within the
meaning of the Investment Company Act of 1940, as amended.

 

8.8.          True
and Complete Disclosure. 
(a)  None of the factual information and data (taken as a
whole) heretofore or contemporaneously furnished by Holdings, the Borrower, the
Canadian Borrower, any of the other Subsidiaries or any of their respective
authorized representatives in writing to the Administrative Agent and/or any
Lender on or before the Closing Date (including (i) the Confidential
Information Memorandum and (ii) all information contained in the Credit
Documents) for purposes of or in connection with this Agreement or any
transaction contemplated herein contained any untrue statement or omitted to
state any material fact necessary to make such information and data (taken as a
whole) not misleading at such time in light of the circumstances under which
such information or data was furnished, it being understood and agreed that for
purposes of this Section 8.8(a), such factual information and data shall not
include projections and pro forma financial information.

 

(b)           The projections and pro forma
financial information contained in the information and data referred to in
paragraph (a) above were based on good faith estimates and assumptions
believed by such Persons to be reasonable at the time made, it being recognized
by the Lenders that such projections as to future events are not to be viewed
as facts and that actual results during the period or periods covered by any
such projections may differ from the projected results.

 

8.9.          Financial
Statements; Financial Condition. 
The (a) unaudited historical consolidated financial information of
the Borrower as set forth in the Confidential Information Memorandum, and
(b) the Historical Audited Financial Statements, in each case present or
will, when provided, present fairly in all material respects the combined
financial position of the

 

99

 

Borrower or the applicable Predecessor
Company and its consolidated subsidiaries, as the case may be, at the
respective dates of said information or statements and results of operations of
the applicable Person for the respective periods covered thereby.  The financial statements referred to in
clause (b) of the preceding sentence have been prepared in accordance with
GAAP consistently applied except to the extent provided in the notes to said
financial statements.  After the Closing
Date, there has been no Material Adverse Change since December 31, 2003.

 

8.10.        Tax
Returns and Payments.  Each of
Holdings, the Borrower, the Canadian Borrower and each of the other
Subsidiaries has filed all federal income tax returns and all other material
tax returns, domestic and foreign, required to be filed by it and has paid all
material Taxes payable by it that have become due, other than those
(a) not yet delinquent or (b) being contested in good faith as to
which adequate reserves have been provided in accordance with GAAP and which
could not reasonably be expected to result in a Material Adverse Effect.

 

8.11.        Compliance
with ERISA.  (a)  Each
Plan is in compliance with ERISA, the Code and any applicable Requirement of
Law; no Reportable Event has occurred (or is reasonably likely to occur) with respect
to any Plan; no Plan is insolvent or in reorganization (or is reasonably likely
to be insolvent or in reorganization), and no written notice of any such insolvency
or reorganization has been given to the Borrower, any Subsidiary or any ERISA
Affiliate; no Plan (other than a multiemployer plan) has an accumulated or
waived funding deficiency (or is reasonably likely to have such a deficiency);
none of the Borrower, any Subsidiary or any ERISA Affiliate has incurred (or is
reasonably likely expected to incur) any liability to or on account of a Plan
pursuant to Section 409, 502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201
or 4204 of ERISA or Section 4971 or 4975 of the Code or has been notified in
writing that it will incur any liability under any of the foregoing Sections with
respect to any Plan; no proceedings have been instituted (or are reasonably
likely to be instituted) to terminate or to reorganize any Plan or to appoint a
trustee to administer any Plan, and no written notice of any such proceedings
has been given to the Borrower, any Subsidiary or any ERISA Affiliate; and no
lien imposed under the Code or ERISA on the assets of the Borrower or any
Subsidiary or any ERISA Affiliate exists (or is reasonably likely to exist) nor
has the Borrower, any Subsidiary or any ERISA Affiliate been notified in
writing that such a lien will be imposed on the assets of the Borrower, any
Subsidiary or any ERISA Affiliate on account of any Plan, except to the extent
that a breach of any of the representations, warranties or agreements in this
Section 8.11 would not result, individually or in the aggregate, in an amount
of liability that would be reasonably likely to have a Material Adverse Effect
or relates to any matter disclosed in the financial statements of the Borrower
contained in the Confidential Information Memorandum.  No Plan (other than a multiemployer plan) has
an Unfunded Current Liability that would, individually or when taken together
with any other liabilities referenced in this Section 8.11, be reasonably
likely to have a Material Adverse Effect. 
With respect to Plans that are multiemployer plans (as defined in
Section 3(37) of ERISA), the representations and warranties in this Section
8.11(a), other than any made with respect to (i) liability under Section 4201
or 4204 of ERISA or (ii) liability for termination or reorganization of such
Plans under ERISA, are made to the best knowledge of the Borrower.

 

100

 

(b)           The Canadian Pension Plans are duly
registered under all applicable pension benefits legislation; all material
obligations of each Credit Party and its Subsidiaries (including fiduciary,
funding, investment and administration obligations) required to be performed in
connection with the Canadian Pension Plans, the Canadian Benefit Plans and the
funding agreements therefor have been performed in accordance with the terms of
such plans, applicable laws and regulations; there are no outstanding disputes
concerning the assets held pursuant to any such funding agreement; all
contributions or premiums required to be made by any Credit Party and any of
its Subsidiaries to the Canadian Pension Plans and the Canadian Benefit Plans
have been made within the time limits required by, and in accordance with, the
terms of such plans and applicable laws and regulations; all employee
contributions to the Canadian Pension Plans and the Canadian Benefit Plans
required to be made by way of authorized payroll deduction have been properly
withheld and fully paid into such plans within the time limits required by, and
in accordance with, the terms of such plans and applicable laws and
regulations; all reports and disclosures relating to the Canadian Pension Plans
and Canadian Benefit Plans required by any applicable laws or regulations have been
filed or distributed in accordance with applicable laws and regulations; no
Credit Party has made any improper withdrawals, applications or transfers of,
the assets of any of the Canadian Pension Plans or of the Canadian Benefit
Plans, to the extent applicable; other than as disclosed in Schedule 8.11(b),
there have been no partial terminations of any Canadian Pension Plan with a
defined benefit provision; other than as disclosed in Schedule 8.11(b),
none of the Canadian Pension Plans with a defined benefit provision is the
result of, or has been subject to, the merger or consolidation of two or more
registered pension plans or the funding media thereof; no amount is owing by
any of the Canadian Pension Plans under the Tax Act; no Credit Party has any knowledge,
nor any grounds for believing, that any of the Canadian Pension Plans or the
Canadian Benefit Plans is or could reasonably be expected to become the subject
of an investigation, any other proceeding, an action or a claim other than a
routine claim for benefits; except to the extent that a breach of any of the
foregoing representations, warranties or agreements in this Section 8.11(b)
would not result, individually or in the aggregate, in an amount of liability
that would be reasonably likely to have a Material Adverse Effect, or relates
to any matter disclosed in the financial statements of the Borrower contained
in the Confidential Information Memorandum. 
No Canadian Pension Plan has an Unfunded Current Liability that would,
individually or when taken together with any other liabilities referenced in
this Section 8.11(b), be reasonably likely to have a Material Adverse
Effect.

 

8.12.        Subsidiaries.  Schedule 8.12 lists each Subsidiary of
the Borrower (and the direct and indirect ownership interest of the Borrower
therein), in each case existing on the Closing Date.  To the knowledge of the Borrower, after due
inquiry, each Material Subsidiary as of the Closing Date has been so designated
on Schedule 8.12.

 

8.13.        Patents,
etc.  Holdings, the Borrower, the
Canadian Borrower and each of the other Restricted Subsidiaries have obtained
all patents, trademarks, servicemarks, trade names, copyrights, licenses and
other rights, free from burdensome restrictions, that are necessary for the
operation of their respective businesses as currently conducted and as proposed
to be conducted, except where the failure to obtain any such rights could not
reasonably be expected to have a Material Adverse Effect.

 

101

 

8.14.        Environmental
Laws.  (a)  Except as
could not reasonably be expected to have a Material Adverse Effect:  (i) Holdings, the Borrower, the Canadian
Borrower and each of the other Subsidiaries and all Real Estate are in
compliance with all Environmental Laws; (ii) none of Holdings, the
Borrower, the Canadian Borrower or any of the other Subsidiaries, is subject to
any Environmental Claim or any other liability under any Environmental Law;
(iii) Holdings, the Borrower, the Canadian Borrower and the other Subsidiaries
are not conducting any investigation, removal, remedial or other corrective
action pursuant to any Environmental Law at any location; and (iv) no
underground storage tank or related piping, or any impoundment or other
disposal area containing Hazardous Materials is located at, on or under any
Real Estate currently owned or leased by Holdings, the Borrower, the Canadian
Borrower or any of the other Subsidiaries.

 

(b)           None of Holdings, the Borrower, the
Canadian Borrower or any of the other Subsidiaries has treated, stored,
transported, released or disposed or arranged for disposal or transport for
disposal of Hazardous Materials at, on, under or from any currently or formerly
owned or leased Real Estate or facility in a manner that could reasonably be expected
to have a Material Adverse Effect.

 

8.15.        Properties.  (a)  Holdings, the Borrower, the
Canadian Borrower and each of the other Subsidiaries have good and marketable
title to or valid leasehold interests in all properties that are necessary for
the operation of their respective businesses as currently conducted and as
proposed to be conducted, free and clear of all Liens (other than any Liens
permitted by this Agreement) and except where the failure to have such good
title or interests could not reasonably be expected to have a Material Adverse
Effect and (b) no Mortgage encumbers improved Real Estate that is located in an
area that has been identified by the Secretary of Housing and Urban Development
as an area having special flood hazards within the meaning of the National
Flood Insurance Act of 1968 unless flood insurance available under such Act has
been obtained in accordance with Section 9.3.

 

8.16.        Solvency.  On the Closing Date (after giving effect to
the Transactions), immediately following the making of each Loan and after
giving effect to the application of the proceeds of such Loans, the Borrower on
a consolidated basis with its Subsidiaries will be Solvent.

 

8.17.        Public
Utility Holding Company Act. 
None of Holdings, the Borrower or the Canadian Borrower is a “holding
company”, or a “subsidiary company” of a “holding company”, or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company”,
within the meaning of the Public Utility Holding Company Act of 1935, as
amended.

 

SECTION 9.  Affirmative Covenants

 

Holdings, the
Borrower and the Canadian Borrower hereby covenant and agree that on the
Closing Date and thereafter, until the Commitments, the Swingline Commitment
and each Letter of Credit have terminated and the Loans and Unpaid Drawings,
together with interest, Fees and all other Obligations incurred hereunder, are
paid in full:

 

102

 

9.1.          Information
Covenants.  The Borrower will
furnish to each Lender and the Administrative Agent:

 

(a)           Annual Financial Statements.  As soon as available and in any event on or
before the date on which such financial statements are required to be filed
with the SEC or delivered to the holders of the Senior Subordinated Notes (or,
if such financial statements are not required to be filed with the SEC or
delivered to the holders of the Senior Subordinated Notes, on or before the
date that is 120 days after the end of each such fiscal year), the
consolidated balance sheet of the Borrower and the Restricted Subsidiaries as
at the end of such fiscal year, and the related consolidated statement of
operations and cash flows for such fiscal year, setting forth comparative
consolidated figures for the preceding fiscal year, and certified by
independent certified public accountants of recognized national standing whose
opinion shall not be qualified as to the scope of audit or as to the status of
the Borrower, the Canadian Borrower or any of the Material Subsidiaries (or
group of Subsidiaries that together would constitute a Material Subsidiary) as
a going concern, together in any event with a certificate of such accounting
firm stating that in the course of its regular audit of the business of the
Borrower, the Canadian Borrower and the Material Subsidiaries, which audit was
conducted in accordance with generally accepted auditing standards, such
accounting firm has obtained no knowledge of any Default or Event of Default
relating to Section 10.9 or 10.10 that has occurred and is continuing or,
if in the opinion of such accounting firm such a Default or Event of Default
has occurred and is continuing, a statement as to the nature thereof.

 

(b)           Quarterly Financial Statements.  As soon as available and in any event on or
before the date on which such financial statements are required to be filed
with the SEC or delivered to the holders of the Senior Subordinated Notes with
respect to each of the first three quarterly accounting periods in each fiscal
year of the Borrower (or, if such financial statements are not required to be
filed with the SEC or delivered to the holders of the Senior Subordinated
Notes, on or before the date that is 60 days after the end of each such
quarterly accounting period), the consolidated balance sheet of (i) the
Borrower and the Restricted Subsidiaries and (ii) the Borrower and its
Subsidiaries, in each case as at the end of such quarterly period and the
related consolidated statement of operations for such quarterly accounting
period and for the elapsed portion of the fiscal year ended with the last day
of such quarterly period, and the related consolidated statement of cash flows
for the elapsed portion of the fiscal year ended with the last day of such
quarterly period, and setting forth comparative consolidated figures for the related
periods in the prior fiscal year or, in the case of such consolidated balance
sheet, for the last day of the prior fiscal year, all of which shall be
certified by an Authorized Officer of the Borrower as fairly presenting the
financial condition and results of operations of (i) the Borrower and the
Restricted Subsidiaries and (ii) the Borrower and its Subsidiaries, subject to
changes resulting from audit and normal year-end audit adjustments.

 

(c)           Budgets.  Within 90 days after the commencement of
each fiscal year of the Borrower, budgets of the Borrower and the Canadian
Borrower in reasonable detail for such fiscal year as customarily prepared by
management of the Borrower and the Canadian Borrower for their internal use
consistent in scope with the financial statements provided pursuant to Section
9.1(a), setting forth the principal assumptions upon which such budgets are
based.

 

103

 

(d)           Officer’s Certificates.  At the time of the delivery of the financial
statements provided for in Sections 9.1(a) and (b), a certificate of an
Authorized Officer of the Borrower to the effect that no Default or Event of
Default exists or, if any Default or Event of Default does exist, specifying
the nature and extent thereof, which certificate shall set forth (i) the
calculations required to establish whether the Borrower and the Subsidiaries
were in compliance with the provisions of Sections 10.9 and 10.10 as at
the end of such fiscal year or period, as the case may be, (ii) a specification
of any change in the identity of the Restricted Subsidiaries, Unrestricted
Subsidiaries and Foreign Subsidiaries as at the end of such fiscal year or
period, as the case may be, from the Restricted Subsidiaries, Unrestricted
Subsidiaries and Foreign Subsidiaries, respectively, provided to the Lenders on
the Closing Date or the most recent fiscal year or period, as the case may be,
(iii) the then applicable Status and (iv) the amount of any Pro Forma
Adjustment not previously set forth in a Pro Forma Adjustment Certificate or
any change in the amount of a Pro Forma Adjustment set forth in any Pro Forma
Adjustment Certificate previously provided and, in either case, in reasonable
detail, the calculations and basis therefor. 
At the time of the delivery of the financial statements provided for in
Section 9.1(a), (i) a certificate of an Authorized Officer of the Borrower
setting forth in reasonable detail (x) the Borrower’s calculation of the
Excess Cash Flow for such fiscal year and (y) the Applicable Amount as at
the end of the fiscal year to which such financial statements relate and (ii) a
certificate of an Authorized Officer and the chief legal officer of the
Borrower (x) setting forth the information required pursuant to Section 1(a)
of the Perfection Certificate or confirming that there has been no change in
such information since the Closing Date or the date of the most recent
certificate delivered pursuant to this clause (d)(ii), as the case may be,
and (y) certifying that all Uniform Commercial Code and Personal Property
Security Act financing statements (including fixture filings, as applicable) or
other appropriate filings, recordings or registrations, including all
refilings, rerecordings and reregistrations, containing a description of the
Collateral have been filed of record in each governmental, municipal or other
appropriate office in each jurisdiction identified pursuant to
clause (x) above to the extent necessary to protect and perfect the
security interests under the Security Documents.

 

(e)           Certain Notices.  Promptly after an Authorized Officer or any
other senior officer of Holdings, the Borrower, the Canadian Borrower or any of
the other Subsidiaries obtains knowledge thereof, notice of (i) the occurrence
of any event that constitutes a Default or Event of Default, which notice shall
specify the nature thereof, the period of existence thereof and what action the
Borrower or the Canadian Borrower proposes to take with respect thereto, (ii)
any litigation or governmental proceeding pending against the Borrower, the
Canadian Borrower or any of the Subsidiaries that could reasonably be expected
to result in a Material Adverse Effect or Material Adverse Change and (iii) any
other development that has resulted in, or could reasonably be expected to
result in, a Material Adverse Effect or Material Adverse Change.

 

(f)            Environmental Matters.  The Borrower and the Canadian Borrower will
promptly advise the Lenders in writing after obtaining knowledge of any one or
more of the following environmental matters, unless such environmental matters
would not, individually or when aggregated with all other such matters, be
reasonably expected to result in a Material Adverse Effect:

 

104

 

(i)      Any pending or threatened Environmental
Claim against the Borrower, the Canadian Borrower or any of the other Subsidiaries
or any Real Estate;

 

(ii)     Any condition or occurrence on any Real
Estate that (x) could reasonably be expected to result in noncompliance by the
Borrower, the Canadian Borrower or any of the other Subsidiaries with any
applicable Environmental Law or (y) could reasonably be anticipated to form the
basis of an Environmental Claim against the Borrower, the Canadian Borrower or
any of the other Subsidiaries or any Real Estate;

 

(iii)    Any condition or occurrence on any Real
Estate that could reasonably be anticipated to cause such Real Estate to be
subject to any restrictions on the ownership, occupancy, use or transferability
of such Real Estate under any Environmental Law; and

 

(iv)    The conduct of any investigation, or any
removal, remedial or other corrective action in response to the actual or
alleged presence, release or threatened release of any Hazardous Material on,
at, under or from any Real Estate.

 

All such
notices shall describe in reasonable detail the nature of the claim,
investigation, condition, occurrence or removal or remedial action and the
response thereto.  The term “Real
Estate” shall mean land, buildings and improvements owned or leased by the
Borrower, the Canadian Borrower or any of the other Subsidiaries, but excluding
all operating fixtures and equipment, whether or not incorporated into
improvements.

 

(g)           Other Information.  Promptly upon filing thereof, copies of any
filings (including on Form 10-K, 10-Q or 8-K) or registration statements
with, and reports to, the SEC or any analogous Government Authority in any
relevant jurisdiction by the Borrower, the Canadian Borrower or any of the
other Subsidiaries (other than amendments to any registration statement (to the
extent such registration statement, in the form it becomes effective, is
delivered to the Lenders), exhibits to any registration statement and, if
applicable, any registration statements on Form S-8) and copies of all
financial statements, proxy statements, notices and reports that the Borrower,
the Canadian Borrower or any of the other Subsidiaries shall send to the
holders of any publicly issued debt of Parent, Holdings, the Borrower, the
Canadian Borrower and/or any of the other Subsidiaries (including any Senior
Subordinated Notes (whether publicly issued or not)) in their capacity as such
holders (in each case to the extent not theretofore delivered to the Lenders
pursuant to this Agreement) and, with reasonable promptness, such other
information (financial or otherwise) as the Administrative Agent on its own
behalf or on behalf of any Lender may reasonably request in writing from time
to time.

 

(h)           Pro Forma Adjustment Certificate.  Not later than the consummation of the
acquisition of any Acquired Entity or Business by the Borrower or any
Restricted Subsidiary for which there shall be a Pro Forma Adjustment or not
later than any date on which financial statements are delivered with respect to
any four-quarter period in which a Pro Forma Adjustment is made as a result of
the consummation of the acquisition of any Acquired Entity or Business by the
Borrower or any Restricted Subsidiary for which there shall be a Pro Forma

 

105

 

Adjustment, a certificate of an Authorized
Officer of the Borrower setting forth the amount of such Pro Forma Adjustment
and, in reasonable detail, the calculations and basis therefor.

 

9.2.          Books,
Records and Inspections.  Holdings,
the Borrower and the Canadian Borrower will, and will cause each of the other
Subsidiaries to, permit officers and designated representatives of the
Administrative Agent or the Required Lenders to visit and inspect any of the
properties or assets the Borrower, the Canadian Borrower and any such
Subsidiary in whomsoever’s possession to the extent that it is within such
party’s control to permit such inspection, and to examine the books and records
of the Borrower, the Canadian Borrower and any such Subsidiary and discuss the
affairs, finances and accounts the Borrower, the Canadian Borrower and of any
such Subsidiary with, and be advised as to the same by, its and their officers
and independent accountants, all at such reasonable times and intervals and to
such reasonable extent as the Administrative Agent or the Required Lenders may
desire.

 

9.3.          Maintenance
of Insurance.  (a)  Generally.  Holdings, the Borrower and the Canadian
Borrower will, and will cause each of the Material Subsidiaries to, at all
times maintain in full force and effect, with insurance companies that the
Borrower believes (in the good faith judgment of the management of the
Borrower) are financially sound and responsible at the time the relevant
coverage is placed or renewed, insurance (including, without limitation, flood
insurance) in at least such amounts and against at least such risks (and with
such risk retentions) as are usually insured against in the same general area
by companies engaged in the same or a similar business; and will furnish to the
Lenders, upon written request from the Administrative Agent, information
presented in reasonable detail as to the insurance so carried.

 

9.4.          Payment of
Taxes.  Holdings, the Borrower
and the Canadian Borrower will pay and discharge, and will cause each of the
other Subsidiaries to pay and discharge, all material taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits,
or upon any properties belonging to it, prior to the date on which material penalties
attach thereto, and all lawful material claims that, if unpaid, could reasonably
be expected to become a material Lien upon any properties of the Borrower, the
Canadian Borrower or any of the other Restricted Subsidiaries, provided
that none of Holdings, the Borrower, the Canadian Borrower or any of the other
Subsidiaries shall be required to pay any such tax, assessment, charge, levy or
claim that is being contested in good faith and by proper proceedings if it has
maintained adequate reserves (in the good faith judgment of the management of
the Borrower) with respect thereto in accordance with GAAP and the failure to
pay could not reasonably be expected to result in a Material Adverse Effect.

 

9.5.          Consolidated
Corporate Franchises. 
Holdings, the Borrower and the Canadian Borrower will do, and will cause
each Material Subsidiary to do, or cause to be done, all things necessary to
preserve and keep in full force and effect its legal existence, corporate
rights and authority, except to the extent that the failure to do so could not
reasonably be expected to have a Material Adverse Effect; provided,
however, that the Borrower and its Subsidiaries may consummate any transaction
permitted under Section 10.3, 10.4 or 10.5.

 

106

 

9.6.          Compliance
with Statutes, Regulations, etc. 
Holdings, the Borrower and the Canadian Borrower will, and will cause
each other Subsidiary to, comply with all applicable laws, rules, regulations
and orders applicable to it or its property, and to maintain all such
governmental approvals or authorizations in full force and effect, in each case
except where the failure to do so could not reasonably be expected to have a
Material Adverse Effect.

 

9.7.          ERISA;
Canadian Benefit Matters.  (a)  Promptly
after the Borrower or any Subsidiary or any ERISA Affiliate knows or has reason
to know of the occurrence of any of the following events that, individually or
in the aggregate (including in the aggregate such events previously disclosed
or exempt from disclosure hereunder, to the extent the liability therefor
remains outstanding), would be reasonably likely to have a Material Adverse
Effect, the Borrower will deliver to the Administrative Agent a certificate of
an Authorized Officer or any other senior officer of the Borrower setting forth
details as to such occurrence and the action, if any, that the Borrower, such
Subsidiary or such ERISA Affiliate is required or proposes to take, together
with any notices (required, proposed or otherwise) given to or filed with or by
the Borrower, such Subsidiary, such ERISA Affiliate, the PBGC, a Plan participant
(other than notices relating to an individual participant’s benefits) or the
Plan administrator with respect thereto: that a Reportable Event has occurred;
that an accumulated funding deficiency has been incurred or an application is
to be made to the Secretary of the Treasury for a waiver or modification of the
minimum funding standard (including any required installment payments) or an
extension of any amortization period under Section 412 of the Code with respect
to a Plan; that a Plan having an Unfunded Current Liability has been or is to
be terminated, reorganized, partitioned or declared insolvent under Title IV of
ERISA (including the giving of written notice thereof); that a Plan has an
Unfunded Current Liability that has or will result in a lien under ERISA or the
Code; that proceedings will be or have been instituted to terminate a Plan
having an Unfunded Current Liability (including the giving of written notice
thereof); that a proceeding has been instituted against the Borrower, a
Subsidiary or an ERISA Affiliate pursuant to Section 515 of ERISA to
collect a delinquent contribution to a Plan; that the PBGC has notified the
Borrower, any Subsidiary or any ERISA Affiliate of its intention to appoint a
trustee to administer any Plan; that the Borrower, any Subsidiary or any ERISA
Affiliate has failed to make a required installment or other payment pursuant
to Section 412 of the Code with respect to a Plan; or that the Borrower, any
Subsidiary or any ERISA Affiliate has incurred or will incur (or has been
notified in writing that it will incur) any liability (including any contingent
or secondary liability) to or on account of a Plan pursuant to Section 409,
502(i), 502(l), 515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section
4971 or 4975 of the Code.

 

(b)           Promptly after the Canadian Borrower
or any Subsidiary or any Affiliate knows or has reason to know of the
occurrence of any of the following events that, individually or in the
aggregate (including in the aggregate such events previously disclosed or
exempt from disclosure hereunder, to the extent the liability therefor remains
outstanding) would be reasonably likely to have a Material Adverse Effect, the
Canadian Borrower will deliver to the Canadian Administrative Agent a
certificate of an Authorized Officer or any other senior officer of the
Canadian Borrower setting forth details as to such occurrence and the action,
if any, that the Canadian Borrower, such Subsidiary or such Affiliate is
required or proposes to take, together with any notices (required, proposed or
otherwise) given to or filed with or by the

 

107

 

Canadian Borrower, such Subsidiary, such
Affiliate, any Governmental Authority, a Canadian Pension Plan or Canadian
Benefit Plan participant (other than notices relating to an individual
participant’s benefits) or the Canadian Pension Plan or Canadian Benefit Plan
administrator with respect thereto: that an application is to be made to any
Governmental Authority for a waiver or modification of the minimum funding
requirements (including any required installment payments) or an extension of
any amortization period under applicable laws or regulations with respect to a
Canadian Pension Plan or Canadian Benefit Plan; that a Canadian Pension Plan
having an Unfunded Current Liability has been or is to be terminated or
wound-up under applicable laws or regulations (including the giving of written
notice thereof); that a Canadian Pension Plan has an Unfunded Current Liability
that has or will result in a lien under applicable laws or regulations; that
proceedings will be or have been instituted to terminate a Canadian Pension
Plan having an Unfunded Current Liability (including the giving of written
notice thereof); that a proceeding has been instituted against the Canadian
Borrower, a Subsidiary or an Affiliate pursuant to applicable laws or
regulations to collect a delinquent contribution to a Canadian Pension Plan or
a Canadian Benefit Plan; that any Governmental Authority has notified the
Canadian Borrower, any Subsidiary or any Affiliate of its intention to appoint
an administrator or other trustee to administer any Canadian Pension Plan or
Canadian Benefit Plan; that the Canadian Borrower, any Subsidiary or any
Affiliate has failed to make a required contribution, installment or other
payment pursuant to applicable laws or regulations with respect to a Canadian
Pension Plan or Canadian Benefit Plan; that any event has occurred in
connection with a Canadian Pension Plan or Canadian Benefit Plan giving rise to
a lien (statutory or otherwise) against, or deemed trust in respect of, any of
the assets of the Canadian Borrower, any Subsidiary or any Affiliate; or that
the Canadian Borrower, any Subsidiary or any Affiliate has incurred or will
incur (or has been notified in writing that it will incur) any liability
(including any contingent or secondary liability) to or on account of a Canadian
Pension Plan or Canadian Benefit Plan arising due to breach by the Canadian
Borrower, any Subsidiary or any Affiliate of their respective obligations
pursuant to applicable laws or regulations.

 

9.8.          Good Repair.  Holdings, the Borrower and the Canadian Borrower
will, and will cause each of the Restricted Subsidiaries to, ensure that its
properties and equipment used or useful in its business in whomsoever’s
possession they may be to the extent that it is within the control of such
party to cause same, are kept in good repair, working order and condition,
normal wear and tear excepted, and that from time to time there are made in
such properties and equipment all needful and proper repairs, renewals,
replacements, extensions, additions, betterments and improvements thereto, to
the extent and in the manner customary for companies in similar businesses and
consistent with third party leases, except in each case to the extent the
failure to do so could not be reasonably expected to have a Material Adverse
Effect.

 

9.9.          Transactions
with Affiliates.  Holdings, the
Borrower and the Canadian Borrower will conduct, and cause each of the Restricted
Subsidiaries to conduct, all transactions with any of its Affiliates (other
than Borrower or its Restricted Subsidiaries) on terms that are substantially
as favorable to the Borrower, the Canadian Borrower or such Restricted
Subsidiary as it would obtain in a comparable arm’s-length transaction with a
Person that is not an Affiliate, provided that the foregoing
restrictions shall not apply to (a) the payment of customary annual fees
to the Sponsors for management, consulting and financial services rendered to
the Borrower,

 

108

 

the Canadian Borrower and the Subsidiaries
and customary investment banking fees paid to the Sponsors for services
rendered to Holdings, the Borrower, the Canadian Borrower and the Subsidiaries
in connection with divestitures, acquisitions, financings and other transactions,
(b) customary fees paid to members of the Board of Directors, Holdings,
the Borrower, the Canadian Borrower and the Subsidiaries and
(c) transactions permitted by Section 10.6.

 

9.10.        End of
Fiscal Years; Fiscal Quarters. 
Holdings, the Borrower and the Canadian Borrower will, for financial
reporting purposes, cause (a) each of its, and each of its Subsidiaries’,
fiscal years to end on the Saturday closest to December 31 of each year and
(b) each of its, and each of its Subsidiaries’, fiscal quarters to end on
dates consistent with such fiscal year-end and the Borrower’s past practice; provided,
however, that the Borrower may, upon written notice to the
Administrative Agent, change the financial reporting convention specified above
to any other financial reporting convention reasonably acceptable to the
Administrative Agent, in which case the Borrower and the Administrative Agent
will, and are hereby authorized by the Lenders to, make any adjustments to this
Agreement that are necessary in order to reflect such change in financial
reporting.

 

9.11.        Additional
Guarantors and Grantors. 
(a)  Except as set forth in Section 10.1(a)(x) or
(a)(xi), the Borrower will cause (i) each direct or indirect Domestic
Subsidiary (other than any Unrestricted Subsidiary or any Domestic Subsidiary
owned by a Foreign Subsidiary) formed or otherwise purchased or acquired after
the date hereof (including pursuant to a Permitted Acquisition), (ii) each
Subsidiary (other than any Unrestricted Subsidiary) that is not a Domestic
Subsidiary on the date hereof but subsequently becomes a Domestic Subsidiary
(other than any Unrestricted Subsidiary) and (iii) each immaterial Domestic
Subsidiary listed on Schedule 1.1(d) (unless such Subsidiary is
designated an Unrestricted Subsidiary in accordance with terms of this Agreement)
that becomes a Material Subsidiary, in each case to execute a supplement to
each of the US Guarantee and the Security Agreement in form and substance
reasonably satisfactory to the Collateral Agent, in order to become a guarantor
under the US Guarantee and a grantor under the Security Agreement.

 

(b)           Except as set forth in
Section 10.1(a)(x) or (a)(xi), the Canadian Borrower will cause (i) each
direct or indirect Subsidiary of the Canadian Borrower organized under the laws
of any province of Canada (other than any Unrestricted Subsidiary) formed or
otherwise purchased or acquired after the date hereof (including pursuant to a
Permitted Acquisition) and (ii) each immaterial Subsidiary of the Canadian
Borrower organized under the laws of any province of Canada and listed on Schedule
1.1(d) (unless such Subsidiary is designated an Unrestricted Subsidiary in
accordance with terms of this Agreement) that becomes a Material Subsidiary, in
each case to execute a supplement to each of the Canadian Guarantee and the
Canadian Security Agreement in form and substance reasonably satisfactory to
the Canadian Administrative Agent, in order to become a guarantor under the
Canadian Guarantee and a grantor under the Canadian Security Agreement.

 

9.12.        Pledges of Additional Stock and
Evidence of Indebtedness. 
(a)  Except as set forth in Section 10.1(a)(x) or
(a)(xi), the Borrower will pledge, and, if applicable, will cause each Domestic
Subsidiary to pledge, to the Collateral Agent for the ratable benefit of the
Secured

 

109

 

Parties, (i) all the capital stock of
each Domestic Subsidiary (other than any Unrestricted Subsidiary or any Domestic
Subsidiary owned by a Foreign Subsidiary), Minority Investment and each Foreign
Subsidiary (other than an Unrestricted Subsidiary or any Voting Stock
representing in excess of 65% of the issued and outstanding Voting Stock in any
Foreign Subsidiary) held by the Borrower or a Domestic Subsidiary, in each
case, formed or otherwise purchased or acquired after the date hereof, in each
case pursuant to a supplement to the Pledge Agreement in form and substance
reasonably satisfactory to the Administrative Agent, (ii) all evidences of
Indebtedness in excess of $1,000,000 received by the Borrower or any of the
Domestic Subsidiaries (other than any Unrestricted Subsidiary) in connection
with any disposition of assets pursuant to Section 10.4(b) or, if the
obligor under such Indebtedness is not a Guarantor, Section 10.4(c), in each
case pursuant to a supplement to the Pledge Agreement in form and substance
reasonably satisfactory to the Administrative Agent and (iii) any global
promissory notes executed after the date hereof evidencing Indebtedness of the
Borrower, each Subsidiary and each Minority Investment that is owing to the Borrower
or any Domestic Subsidiary (other than any Unrestricted Subsidiary), in each
case pursuant to a supplement to the Security Agreement in form and substance
reasonably satisfactory to the Administrative Agent.

 

(b)           Except as set forth in
Section 10.1(a)(x) or (a)(xi), the Canadian Borrower will pledge, and, if
applicable, will cause each of its Subsidiaries to pledge, to the Canadian
Administrative Agent, for the ratable benefit of the Canadian Lenders (but only
to secure obligations of the Canadian Borrower hereunder and under the other
Credit Documents), (i) all the capital stock of each Subsidiary of the
Canadian Borrower and of any Canadian Subsidiary Guarantor formed or otherwise
purchased or acquired after the date hereof, in each case pursuant to a
supplement to the Canadian Pledge Agreement in form and substance reasonably
satisfactory to the Canadian Administrative Agent (or pledge arrangements in
relation to the Canadian Obligations of the Canadian Borrower, in a form and to
an extent agreed between the Borrower and the Administrative Agent, but to be
substantially consistent (taking into account the scope of customary collateral
arrangements in the applicable jurisdiction) with the scope of the pledge
arrangements entered into pursuant to the Canadian Security Documents) and
(ii) all evidences of Indebtedness with a Dollar Equivalent in excess of
$1,000,000 received by any of the Canadian Subsidiary Guarantors in connection
with any disposition of assets pursuant to Section 10.4(b) or, if the
obligor under such Indebtedness is not a Guarantor, Section 10.4(c), in each
case pursuant to a supplement to the applicable Canadian Pledge Agreement in
form and substance reasonably satisfactory to the Canadian Administrative Agent
(or pledge arrangements in relation to the Obligations of the Canadian
Borrower, in a form and to an extent agreed between the Borrower and the
Administrative Agent, but to be substantially consistent (taking into account
the scope of customary collateral arrangements in the applicable jurisdiction)
with the scope of the pledge arrangements entered into pursuant to the Canadian
Security Documents).

 

(c)           The Borrower and the Canadian
Borrower agree that all Indebtedness in excess of $1,000,000 (or the Dollar
Equivalent thereof) of the Borrower and each Subsidiary that is owing to any
Credit Party shall be evidenced by one or more global promissory notes.

 

110

 

9.13.        Use of Proceeds.  (a)  The Borrower and the Canadian
Borrower will use the Letters of Credit and the proceeds of all Loans for the
purposes set forth in the introductory statement to this Agreement.

 

(b)           Promptly following its receipt of the
proceeds of any Tranche B Term Loans made on the Delayed Draw Date (and, in any
event, not later than the Business Day immediately following the Delayed Draw
Date), the Borrower shall irrevocably deposit such proceeds with the applicable
trustees in respect of the indentures governing the Existing Opco Notes
comprising the Unpaid Refinancing Amount.

 

9.14.        Changes in
Business.  (a)  The
Borrower, the Canadian Borrower and the Subsidiaries, taken as a whole, will
not fundamentally and substantively alter the character of their business,
taken as a whole, from the business conducted by the Borrower, the Canadian
Borrower and the Subsidiaries, taken as a whole, on the Closing Date and other
business activities incidental or related to any of the foregoing.

 

(b)           Holdings will not engage in any
business or activity other than (i) the ownership of all the outstanding shares
of capital stock of the Borrower, (ii) maintaining its corporate existence,
(iii) participating in tax, accounting and other administrative matters as a
member of the consolidated group of Holdings and the Borrower, (iv) the
performance of the Credit Documents to which it is a party, (v) making any
dividend permitted by Section 10.6 or holding any cash received in connection
with dividends made by the Borrower in accordance with Section 10.6 pending
application thereof by Holdings in the manner contemplated by Section 10.6 and
(vi) activities incidental to the businesses or activities described in clauses
(i) to (v) of this Section 9.14(b). 
Holdings will not own or acquire any assets (other than shares of
capital stock of the Borrower, cash and Permitted Investments) or incur any
liabilities (other than liabilities under the Credit Documents, liabilities
under its guarantee of the Senior Subordinated Notes and liabilities imposed by
law, including tax liabilities, and other liabilities incidental to its
existence and business and activities permitted by this Agreement).

 

9.15.        Further
Assurances. 
(a)  Holdings and the Borrower will, and will cause each other
Credit Party to, 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 to grant, preserve, protect and perfect the validity and
priority of the security interests created or intended to be created by the
Security Agreements or any Mortgage, all at the expense of the Borrower and the
Restricted Subsidiaries.

 

(b)           If any assets (including any real
estate or improvements thereto or any interest therein) with a book value or
fair market value in excess of $1,000,000 are acquired by the Borrower, the
Canadian Borrower or any other Credit Party after the Closing Date (other than
assets constituting Collateral under the Security Agreements that become
subject to the Lien of the applicable Security Agreement upon acquisition thereof)
that are of the nature secured by the Security Agreements or any Mortgage, as
the case may be, the Borrower will notify the

 

111

 

Administrative Agent and the Lenders thereof,
and, if requested by the Administrative Agent or the Required Lenders, the
Borrower will cause such assets to be subjected to a Lien securing the applicable
Obligations and will take, and cause the other Credit Parties to take, such
actions as shall be necessary or reasonably requested by the Administrative
Agent to grant and perfect such Liens consistent with the applicable
requirements of the Security Documents, including actions described in paragraph
(a) of this Section, all at the expense of the Credit Parties.  Any Mortgage delivered to the Administrative
Agent in accordance with the preceding sentence shall be accompanied by (x) a
policy or policies of title insurance issued by a nationally recognized title
insurance company insuring the Lien of each Mortgage as a valid first Lien on
the Mortgaged Property described therein, free of any other Liens except as
expressly permitted by Section 10.2, together with such endorsements, coinsurance
and reinsurance as the Administrative Agent may reasonably request and (y) an
opinion of local counsel to the Borrower (or in the event a Subsidiary of the
Borrower is the mortgagor, to such Subsidiary) substantially in the form of Exhibit
I-4 .

 

(c)           Within sixty days after the Closing
Date (or, in the discretion of the Administrative Agent, such longer period of
time, which period shall not exceed ninety days after the Closing Date), the
Administrative Agent shall have received (a) a Mortgage in respect of each
Mortgaged Property so identified on Schedule 1.1(b), executed and delivered by
a duly authorized officer of each mortgagor thereto, (b) a policy or
policies of title insurance issued by a nationally recognized title insurance
company insuring the Lien of each Mortgage as a valid first Lien on the
Mortgaged Property described therein, free and clear of any liens except as
permitted by Section 10.2 or reasonably satisfactory to the Administrative
Agent, together with such endorsements, coinsurance and reinsurance as the
Administrative Agent may reasonably request and (c) an opinion of local counsel
in form and substance reasonably acceptable to the Administrative Agent.

 

9.16.        Maintenance
of Rating of Facilities.  The
Borrower will cause a senior secured credit rating with respect to the credit facilities
hereunder from each of S&P and Moody’s to be available at all times until
the last Maturity Date under this Agreement.

 

9.17.        Canadian
Borrower.  The Borrower shall
ensure that the Canadian Borrower is on the Closing Date, and shall at all
times thereafter be, an indirect or direct wholly owned Subsidiary of the
Borrower.  The Borrower agrees that the
Canadian Borrower is not permitted to be sold, transferred or otherwise
disposed of pursuant to Section 10.4.

 

9.18.        Tender
Payments; Post-Closing Other Tender Procedures.  Within two Business Days after the Closing
Date, the Borrower shall (a) make all payments required to be made in respect
of all Existing Opco Notes accepted for purchase in connection with the Tender
Offers and (b) implement the Post-Closing Other Tender Procedures.

 

SECTION 10.  Negative Covenants

 

Holdings, the
Borrower and the Canadian Borrower hereby covenant and agree that on the
Closing Date and thereafter, until the Commitments, the Swingline Commitment
and

 

112

 

each Letter of
Credit have terminated and the Loans and Unpaid Drawings, together with
interest, Fees and all other Obligations incurred hereunder, are paid in full:

 

10.1.        Limitation
on Indebtedness.  (a)  Holdings, the Borrower and the Canadian
Borrower will not, and will not permit any of the Restricted Subsidiaries to,
create, incur, assume or suffer to exist any Indebtedness, except:

 

(i)      Indebtedness arising under the Credit
Documents;

 

(ii)     Indebtedness of (x) Holdings or the
Borrower to any Subsidiary of the Borrower and (y) subject to compliance
with Section 10.5(g), any Subsidiary to Holdings, the Borrower or any other
Restricted Subsidiary of the Borrower;

 

(iii)    Indebtedness in respect of any bankers’
acceptance, letter of credit, warehouse receipt or similar facilities entered
into in the ordinary course of business;

 

(iv)    except as provided in clauses (x) and (xi)
below, subject to compliance with Section 10.5(g), Guarantee Obligations incurred
by (x) Restricted Subsidiaries in respect of Indebtedness of Holdings, the
Borrower or other Restricted Subsidiaries that is permitted to be incurred
under this Agreement, (y) the Borrower in respect of Indebtedness of the Restricted
Subsidiaries that is permitted to be incurred under this Agreement and
(z) any Foreign Subsidiary in respect of Indebtedness of any other Foreign
Subsidiary that is permitted to be incurred under this Agreement, provided
that no Guarantee in respect of the Senior Subordinated Notes or Permitted
Additional Notes shall be permitted unless such Guarantee is made by a
Guarantor and such Guarantee is unsecured and subordinated to the Guarantee by
such Guarantor of the Obligations on terms at least as favorable to the Lenders
as those contained in the Senior Subordinated Notes or Permitted Additional
Notes;

 

(v)     Guarantee Obligations incurred in the
ordinary course of business in respect of obligations of suppliers, customers,
franchisees, lessors and licensees;

 

(vi)    (x) Indebtedness (including
Indebtedness arising under Capital Leases) incurred within 270 days of the
acquisition, construction or improvement of fixed or capital assets to finance
the acquisition, construction or improvement of such fixed or capital assets or
otherwise incurred in respect of Capital Expenditures permitted by Section
10.11, (y) Indebtedness arising under Capital Leases entered into in
connection with Permitted Sale Leasebacks and (z) Indebtedness arising
under Capital Leases, other than Capital Leases in effect on the date hereof
and Capital Leases entered into pursuant to subclauses (x) and (y) above, provided,
that the aggregate amount of Indebtedness incurred pursuant to this subclause
(z) shall not exceed $35,000,000 at any time outstanding, and (iv) any
refinancing, refunding, renewal or extension of any Indebtedness specified in
subclause (x), (y) or (z) above, provided that the principal
amount thereof is not increased above the principal amount thereof outstanding
immediately prior to such refinancing, refunding, renewal or extension, plus
the amount

 

113

 

of any interest, premiums or penalties
required to be paid thereon plus fees and expenses associated therewith;

 

(vii)   Indebtedness outstanding on the date hereof
(other than the Existing Opco Notes) and listed on Schedule 10.1
and any refinancing, refunding, renewal or extension thereof, provided
that (i) the principal amount thereof is not increased above the principal
amount thereof outstanding immediately prior to such refinancing, refunding,
renewal or extension, plus the amount of any interest, premiums or penalties
required to be paid thereon plus fees and expenses associated therewith, except
to the extent otherwise permitted hereunder and (ii) the direct and contingent
obligors with respect to such Indebtedness are not changed;

 

(viii)  Indebtedness in respect of Hedge Agreements;

 

(ix)    Indebtedness in respect of the Senior
Subordinated Notes in an aggregate principal amount not to exceed $500,000,000
(or such lesser aggregate principal amount as may be incurred on the Closing
Date);

 

(x)     (A) Indebtedness of a Person or
Indebtedness attaching to assets of a Person that, in either case, becomes a
Restricted Subsidiary or Indebtedness attaching to assets that are acquired by
the Borrower or any Restricted Subsidiary, in each case after the Closing Date
as the result of a Permitted Acquisition, provided that (w) such
Indebtedness existed at the time such Person became a Restricted Subsidiary or
at the time such assets were acquired and, in each case, was not created in
anticipation thereof, (x) such Indebtedness is not guaranteed in any
respect by the Borrower or any Restricted Subsidiary (other than by any such
person that so becomes a Restricted Subsidiary), (y) (1) the capital
stock of such Person is pledged to the Administrative Agent to the extent
required under Section 9.12 and (2) such Person executes a supplement
to each of the applicable Guarantee Agreement and the applicable Security
Agreements (or alternative guarantee and security arrangements in relation to
the Obligations reasonably acceptable to the Administrative Agent) to the
extent required under Sections 9.11 or 9.12, as applicable, provided
that the requirements of this subclause (y) shall not apply to an aggregate
amount at any time outstanding of up to (and including) the Guarantee and
Collateral Exception Amount at such time of the aggregate of (I) such
Indebtedness and (II) all Indebtedness as to which the proviso to clause
(xi)(A)(y) below then applies, and (B) any refinancing, refunding, renewal
or extension of any Indebtedness specified in subclause (A) above, provided
that, except to the extent otherwise permitted hereunder, (x) the
principal amount of any such Indebtedness is not increased above the principal
amount thereof outstanding immediately prior to such refinancing, refunding,
renewal or extension, plus the amount of any interest, premiums or penalties
required to be paid thereon plus fees and expenses associated therewith, and
(y) the direct and contingent obligors with respect to such Indebtedness
are not changed;

 

(xi)    (A) Indebtedness of the Borrower or any
Restricted Subsidiary (including any Permitted Additional Notes) incurred to
finance a Permitted Acquisition, provided

 

114

 

that (x) except in the case of Permitted
Additional Notes, such Indebtedness is not guaranteed in any respect by any
Restricted Subsidiary (other than any Person acquired (the “acquired Person”)
as a result of such Permitted Acquisition or the Restricted Subsidiary so
incurring such Indebtedness) or, in the case of Indebtedness of any Restricted
Subsidiary, subject to compliance with Section 10.5(g), by the Borrower
and (y)(1) the Borrower pledges the capital stock of such acquired Person
to the Administrative Agent to the extent required under Section 9.12 and
(2) such acquired Person executes a supplement to the applicable Guarantee
Agreement and the applicable Security Agreements (or alternative guarantee and
security arrangements in relation to the Obligations reasonably acceptable to
the Administrative Agent) to the extent required under Sections 9.11 or
9.12, as applicable, provided that the requirements of this subclause
(y) shall not apply to an aggregate amount at any time outstanding of up to
(and including) the amount of the Guarantee and Collateral Exception Amount at
such time of the aggregate of (I) such Indebtedness and (II) all
Indebtedness as to which the proviso to clause (x)(A)(y) above then applies,
and (B) any refinancing, refunding, renewal or extension of any such
Indebtedness, provided that (x) the principal amount of any such
Indebtedness is not increased above the principal amount thereof outstanding
immediately prior to such refinancing, refunding, renewal or extension, plus
the amount of any interest, premiums or penalties required to be paid thereon
plus fees and expenses associated therewith, and (y) the direct and
contingent obligors with respect to such Indebtedness are not changed, except
to the extent otherwise permitted hereunder;

 

(xii)   Indebtedness in respect of performance bonds,
bid bonds, appeal bonds, surety bonds and completion guarantees and similar
obligations not in connection with money borrowed, in each case provided in the
ordinary course of business, including those incurred to secure health, safety
and environmental obligations in the ordinary course of business;

 

(xiii)  (A) additional Indebtedness and (B) any
refinancing, refunding, renewal or extension of any Indebtedness specified in
subclause (A) above; provided that the aggregate amount of Indebtedness
incurred and remaining outstanding pursuant to this clause (xiii) shall
not at any time exceed $100,000,000; provided, however, that not
more than $35,000,000 in aggregate principal amount of Indebtedness of the Borrower
or any Restricted Subsidiary (other than a Restricted Foreign Subsidiary)
incurred under this clause (xiii) shall be secured;

 

(xiv)  Indebtedness in respect of Permitted
Additional Notes to the extent that the Net Cash Proceeds therefrom are, immediately
after the receipt thereof, applied to the prepayment of Term Loans in
accordance with Section 5.2; and

 

(xv)   amounts owing in respect of the Specified
Existing Notes prior to the implementation of the Post-Closing Other Tender
Procedures in accordance with Section 9.18 and the Unpaid Refinancing
Amount for a period of up to 35 days after the Closing Date.

 

115

 

(b)           Holdings and the Borrower will not
issue any preferred stock or other preferred equity interests other than
Qualified PIK Securities.

 

10.2.        Limitation
on Liens.  Holdings, the Borrower
and the Canadian Borrower will not, and will not permit any of the Restricted
Subsidiaries to, create, incur, assume or suffer to exist any Lien upon any
property or assets of any kind (real or personal, tangible or intangible) of
the Borrower or any Restricted Subsidiary, whether now owned or hereafter acquired,
except:

 

(a)           Liens arising under the Credit
Documents;

 

(b)           Permitted Liens;

 

(c)           Liens securing Indebtedness permitted
pursuant to Section 10.1(a)(vi), provided that such Liens attach at
all times only to the assets so financed, and Liens on the assets of Foreign
Subsidiaries securing Indebtedness permitted pursuant to Section 10.1(a)(xiii);

 

(d)           Liens existing on the date hereof and
listed on Schedule 10.2;

 

(e)           the replacement, extension or renewal
of any Lien permitted by clauses (a) through (d) above and clause (f) of this
Section 10.2 upon or in the same assets theretofore subject to such Lien or the
replacement, extension or renewal (without increase in the amount or change in
any direct or contingent obligor except to the extent otherwise permitted
hereunder) of the Indebtedness secured thereby;

 

(f)            Liens existing on the assets of any
Person that becomes a Restricted Subsidiary, or existing on assets acquired,
pursuant to a Permitted Acquisition to the extent the Liens on such assets
secure Indebtedness permitted by Section 10.1(a)(x), provided that
such Liens attach at all times only to the same assets that such Liens attached
to, and secure only the same Indebtedness that such Liens secured, immediately
prior to such Permitted Acquisition;

 

(g)           (i) Liens placed upon the
capital stock of any Restricted Subsidiary acquired pursuant to a Permitted Acquisition
to secure Indebtedness of the Borrower or any other Restricted Subsidiary in an
aggregate amount at any time outstanding not to exceed the Guarantee and
Collateral Exception Amount incurred pursuant to Section 10.1(a)(xi) in
connection with such Permitted Acquisition and (ii) Liens placed upon the
assets of such Restricted Subsidiary to secure a guarantee by such Restricted
Subsidiary of any such Indebtedness of the Borrower or any other Restricted
Subsidiary in an aggregate amount at any time outstanding not to exceed the
Guarantee and Collateral Exception Amount; and

 

(h)           additional Liens so long as the
aggregate principal amount of the obligations so secured does not exceed
$35,000,000 at any time outstanding.

 

10.3.        Limitation
on Fundamental Changes.  Except
as expressly permitted by Section 10.4 or 10.5, Holdings, the Borrower and
the Canadian Borrower will not, and will not permit any of the Restricted
Subsidiaries to, enter into any merger, consolidation or amalgamation, or
liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution),

 

116

 

or convey, sell, lease, assign, transfer or
otherwise dispose of, all or substantially all its business units, assets or
other properties, except that:

 

(a)           any Subsidiary of the Borrower or any
other Person may be merged or consolidated with or into the Borrower, provided
that (i) the Borrower shall be the continuing or surviving corporation or
the Person formed by or surviving any such merger or consolidation (if other
than the Borrower) shall be an entity organized or existing under the laws of
the United States, any state thereof, the District of Columbia or any territory
thereof (the Borrower or such Person, as the case may be, being herein referred
to as the “Successor Borrower”), (ii) the Successor Borrower (if
other than the Borrower) shall expressly assume all the obligations of the
Borrower under this Agreement and the other Credit Documents pursuant to a
supplement hereto or thereto in form reasonably satisfactory to the
Administrative Agent, (iii) no Default or Event of Default would result
from the consummation of such merger or consolidation, (iv) the Successor
Borrower shall be in compliance, on a pro forma basis after giving effect to
such merger or consolidation, with the covenants set forth in
Sections 10.9 and 10.10, as such covenants are recomputed as at the last
day of the most recently ended Test Period under such Section as if such merger
or consolidation had occurred on the first day of such Test Period,
(v) Holdings and each US Subsidiary Guarantor, unless it is the other
party to such merger or consolidation, shall have by a supplement to the
applicable Guarantee confirmed that its Guarantee shall apply to the Successor Borrower’s
obligations under this Agreement, (vi) each grantor and each pledgor, unless it
is the other party to such merger or consolidation, shall have by a supplement
to the Security Agreements confirmed that its obligations thereunder shall apply
to the Successor Borrower’s obligations under this Agreement, (vii) each
mortgagor of a Mortgaged Property, unless it is the other party to such merger
or consolidation, shall have by an amendment to or restatement of the
applicable Mortgage confirmed that its obligations thereunder shall apply to
the Successor Borrower’s obligations under this Agreement, and (viii) the
Borrower shall have delivered to the Administrative Agent (x) an officer’s
certificate and an opinion of counsel, each stating that such merger or
consolidation and such supplement to this Agreement or any Security Document
comply with this Agreement (y) all necessary Patriot Act information
relating to the Successor Borrower; provided  further that if the
foregoing are satisfied, the Successor Borrower (if other than the Borrower)
will succeed to, and be substituted for, the Borrower under this Agreement;

 

(b)           any Subsidiary of the Canadian
Borrower or any other Person may be merged, amalgamated or consolidated with or
into the Canadian Borrower, provided that (i) the Canadian Borrower
shall be the continuing or surviving corporation or the Person formed by or
surviving any such merger, amalgamation or consolidation (if other than the
Canadian Borrower) shall be a corporation organized or existing under the laws
of Canada (the Canadian Borrower or such Person, as the case may be, being
herein referred to as the “Successor Canadian Borrower”), (ii) the
Successor Canadian Borrower (if other than the Canadian Borrower) shall
expressly assume all the obligations of the Canadian Borrower under this
Agreement and the other Credit Documents pursuant to a supplement hereto or
thereto in form reasonably satisfactory to the Administrative Agent,
(iii) no Default or Event of Default would result from the consummation of
such merger, amalgamation or consolidation, (iv) the Borrower shall be in
compliance, on a pro forma basis after giving effect to such merger,
amalgamation or

 

117

 

consolidation, with the covenants set forth
in Sections 10.9 and 10.10, as such covenants are recomputed as at the
last day of the most recently ended Test Period under such Section as if such
merger, amalgamation or consolidation had occurred on the first day of such
Test Period, (v) Holdings, the Borrower, each Subsidiary Guarantor, unless
it is the other party to such merger, amalgamation or consolidation, shall have
by a supplement to the applicable Guarantee confirmed that its Guarantee shall
apply to the Successor Canadian Borrower’s obligations under this Agreement,
(vi) each grantor and each pledgor, unless it is the other party to such
merger, amalgamation or consolidation, shall have by a supplement to the
applicable Security Document confirmed that its obligations thereunder shall
apply to the Successor Canadian Borrower’s obligations under this Agreement,
(vii) each mortgagor of a Mortgaged Property, unless it is the other party to
such merger, amalgamation or consolidation, shall have by an amendment to or
restatement of the applicable Mortgage confirmed that its obligations
thereunder shall apply to the Successor Canadian Borrower’s obligations under
this Agreement, and (viii) the Canadian Borrower shall have delivered to the
Administrative Agent (x) an officer’s certificate and an opinion of
counsel, each stating that such merger, amalgamation or consolidation, such
supplement to this Agreement or any Security Document and such amendment or
restatement to any applicable Mortgage, as the case may be, comply with this
Agreement and (y) all necessary Patriot Act information relating to the
Successor Canadian Borrower; provided  further that if the
foregoing are satisfied, the Successor Canadian Borrower (if other than the
Canadian Borrower) will succeed to, and be substituted for, the Canadian
Borrower under this Agreement;

 

(c)           any Subsidiary of the Borrower (other
than the Canadian Borrower) or any other Person may be merged, amalgamated or
consolidated with or into any one or more Subsidiaries of the Borrower (other
than the Canadian Borrower), provided that (i) in the case of any
merger, amalgamation or consolidation involving one or more Restricted
Subsidiaries, (A) a Restricted Subsidiary shall be the continuing or
surviving corporation or (B) the Borrower shall take all steps necessary
to cause the Person formed by or surviving any such merger, amalgamation or
consolidation (if other than a Restricted Subsidiary) to become a Restricted Subsidiary,
(ii) in the case of any merger, amalgamation or consolidation involving
one or more US Subsidiary Guarantors and/or Canadian Subsidiary Guarantors, as
the case may be, a US Subsidiary Guarantor or Canadian Subsidiary Guarantor, as
the case may be, shall be the continuing or surviving corporation or the Person
formed by or surviving any such merger, amalgamation or consolidation (if other
than a US Subsidiary Guarantor or Canadian Subsidiary Guarantor, as the case
may be) shall execute a supplement to the applicable Guarantee Agreement and
the Security Agreements and any applicable Mortgage or the analogous Canadian
Security Documents, as the case may be, in form and substance reasonably
satisfactory to the Administrative Agent, in order to become a US Subsidiary
Guarantor or Canadian Subsidiary Guarantor, as the case may be, and pledgor, mortgagor
and grantor of Collateral for the benefit of the Secured Parties, (iii) no
Default or Event of Default would result from the consummation of such merger,
amalgamation or consolidation, (iv) the Borrower shall be in compliance,
on a pro forma basis after giving effect to such merger, amalgamation or
consolidation, with the covenants set forth in Sections 10.9 and 10.10, as
such covenants are recomputed as at the last day of the most recently ended
Test Period under such Section as if such merger or consolidation had occurred
on the first day of such Test Period, and (v) the Borrower shall have
delivered to the Administrative Agent an Officers’ Certificate stating that

 

118

 

such merger, amalgamation or consolidation
and such supplements to any Security Document comply with this Agreement;

 

(d)           any Restricted Subsidiary that is not
a US Subsidiary Guarantor or a Canadian Subsidiary Guarantor may sell, lease,
transfer or otherwise dispose of any or all of its assets (upon voluntary
liquidation or otherwise) to the Borrower, the Canadian Borrower, a US
Subsidiary Guarantor, a Canadian Subsidiary Guarantor or any other Restricted
Subsidiary of the Borrower, subject to compliance with Section 10.5(g);

 

(e)           any Guarantor or any Subsidiary
Guarantor may sell, lease, transfer or otherwise dispose of any or all of its
assets (upon voluntary liquidation or otherwise) to the Borrower, the Canadian
Borrower or any other Guarantor or Subsidiary Guarantor; and

 

(f)            any Restricted Subsidiary (other
than the Canadian Borrower) may liquidate or dissolve if (x) the Borrower
determines in good faith that such liquidation or dissolution is in the best
interests of the Borrower and is not materially disadvantageous to the Lenders
and (y) to the extent such Restricted Subsidiary is a Credit Party, any assets
or business not otherwise disposed of or transferred in accordance with Section
10.4 or 10.5, or, in the case of any such business, discontinued, shall be
transferred to, or otherwise owned or conducted by, another Credit Party after
giving effect to such liquidation or dissolution.

 

10.4.        Limitation
on Sale of Assets.  Holdings, the
Borrower and the Canadian Borrower will not, and will not permit any of the Restricted
Subsidiaries to, (i) convey, sell, lease, assign, transfer or otherwise
dispose of any of its property, business or assets (including receivables and
leasehold interests), whether now owned or hereafter acquired (other than any
such sale, transfer, assignment or other disposition resulting from any
casualty or condemnation, of any assets of the Borrower or the Restricted
Subsidiaries) or (ii) sell to any Person (other than the Borrower or a
Guarantor) any shares owned by it of any Restricted Subsidiary’s capital stock,
except that:

 

(a)           the Borrower and the Restricted
Subsidiaries may sell, transfer or otherwise dispose of used or surplus
equipment, vehicles, inventory and other assets in the ordinary course of
business;

 

(b)           the Borrower and the Restricted
Subsidiaries may sell, transfer or otherwise dispose of other assets (other
than accounts receivable) for fair market value, provided that
(i) the total non-cash consideration received since the Closing Date in
respect of sales, transfers and dispositions for which less than 50% of such
consideration consisted of cash shall not exceed $100,000,000 (it being agreed
that, with respect to any one or more sale, transfer or disposition in which
such $100,000,000 limitation is exceeded, at least 50% of the portion of the
consideration in excess of the then available portion of such $100,000,000
shall consist of cash), (ii) any non-cash proceeds received are pledged to
the Administrative Agent to the extent required under Section 9.12,
(iii) with respect to any such sale, transfer or disposition (or series of
related sales, transfers or dispositions), the Borrower shall be in compliance,
on a pro forma basis after giving effect to such sale, transfer or disposition,
with the covenants set forth in

 

119

 

Sections 10.9 and 10.10, as such
covenants are recomputed as at the last day of the most recently ended Test
Period under such Sections as if such sale, transfer or disposition had
occurred on the first day of such Test Period and (iv) after giving effect
to any such sale, transfer or disposition, no Default or Event of Default shall
have occurred and be continuing;

 

(c)           the Borrower and the Restricted
Subsidiaries may make sales of assets to the Borrower or to any Restricted Subsidiary,
provided that with respect to any such sales to Restricted Subsidiaries
that are not Guarantors (i)  such sale, transfer or disposition shall be
for fair market value, (ii) the total non-cash consideration received
since the Closing Date in respect of such sales, transfers and dispositions for
which less than 50% of such consideration consisted of cash shall not exceed
$100,000,000 (it being agreed that, with respect to any one or more sale,
transfer or disposition in which such $100,000,000 limitation is exceeded, at
least 50% of the portion of the consideration in excess of the then available
portion of such $100,000,000 shall consist of cash) and (iii) any non-cash
proceeds received are pledged to the Administrative Agent to the extent
required under Section 9.12;

 

(d)           any Restricted Subsidiary may effect
any transaction permitted by Section 10.3;

 

(e)           in addition to selling or
transferring accounts receivable pursuant to the other provisions hereof, the
Borrower and the Restricted Subsidiaries may (i) sell or discount without
recourse accounts receivable arising in the ordinary course of business in
connection with the compromise or collection thereof and (ii) sell or transfer
accounts receivable and related rights pursuant to customary receivables
financing facilities so long as, in the case of clauses (i) and (ii), the Net
Cash Proceeds thereof to the Borrower and its Restricted Subsidiaries (except
in the case of transactions permitted by Section 10.4(e)(i) to the extent the
Net Cash Proceeds of any such transaction do not exceed $10,000) are promptly
applied to the prepayment of Loans and/or commitment reductions as provided for
in Section 5.2; and

 

(f)            the Borrower and its Restricted
Subsidiaries may lease, or sub-lease, any real property or personal property in
the ordinary course of business.

 

10.5.        Limitation
on Investments.  Holdings, the
Borrower and the Canadian Borrower will not, and will not permit any of the
Restricted Subsidiaries to, make any advance, loan, extensions of credit or capital
contribution to, or purchase any stock, bonds, notes, debentures or other
securities of or any assets of, or make any other Investment in, any Person,
except:

 

(a)           extensions of trade credit and asset
purchases in the ordinary course of business;

 

(b)           Permitted Investments;

 

(c)           loans and advances to officers,
directors and employees of the Borrower or any of its Subsidiaries in an
aggregate principal amount at any time outstanding under this

 

120

                

clause (c) (determined without regard to
any write-downs or write-offs of such loans or advances) not exceeding
$25,000,000;

 

(d)           Investments existing on the date
hereof and listed on Schedule 10.5 and any extensions, renewals or
reinvestments thereof, so long as the aggregate amount of all Investments
pursuant to this clause (d) is not increased at any time above the amount
of such Investments existing on the date hereof;

 

(e)           Investments received in connection
with the bankruptcy or reorganization of suppliers or customers and in
settlement of delinquent obligations of, and other disputes with, customers
arising in the ordinary course of business;

 

(f)            Investments to the extent that
payment for such Investments is made solely with capital stock of Holdings;

 

(g)           Investments in (i) any Guarantor
or the Borrower and (ii) in Restricted Subsidiaries that are not
Guarantors, in the case of this clause (g)(ii), in an aggregate amount not to
exceed $15,000,000 plus the Applicable Amount at any time outstanding;            

 

(h)           Investments constituting Permitted
Acquisitions, provided that the aggregate amount of any such investment,
as valued at the fair market value of such investment at the time each such
investment is made, made by the Borrower or any Restricted Subsidiary in any
Restricted Foreign Subsidiary, to the extent that such Restricted Foreign
Subsidiary does not become a Subsidiary Guarantor pursuant to Section 9.11
and does not enter into the guarantee and collateral arrangements contemplated
thereby, shall not exceed the Applicable Amount at the time of such investment
plus an amount equal to any repayments, interest, returns, profits,
distributions, income and similar amounts actually received in cash in respect
of any such investment (which amount shall not exceed the amount of such
investment valued at the fair market value of such investment at the time such
investment was made);

 

(i)            (i) Investments (including
Investments in Minority Investments and Unrestricted Subsidiaries) and
(ii) Investments in joint ventures or similar entities that do not
constitute Restricted Subsidiaries, in each case, as valued at the fair market
value of such Investment at the time each such Investment is made, (A) in
an amount that, at the time such Investment is made, would not exceed the sum
of (x) the Applicable Amount at such time plus (y) an amount
equal to any repayments, interest, returns, profits, distributions, income and
similar amounts actually received in cash in respect of any such Investment
(which amount shall not exceed the amount of such Investment valued at the fair
market value of such Investment at the time such Investment was made) and/or
(B) in the case of clause (ii) only, in any amount that, at the time such
Investment is made, would be permitted to be expended as a Capital Expenditure
under Section 10.11, to the extent that (x) such joint venture owns
an interest in assets the addition of which would have been a Capital
Expenditure if acquired or constructed, and owned, directly by the Borrower or
a Restricted Subsidiary, and (y) the ability of the Borrower and/or one or
more Restricted Subsidiaries to receive cash flows attributable to its interest
therein 

 

121

 

substantially as they would if they directly
owned such asset or portion thereof is not prohibited by contract, applicable
law or otherwise;

 

(j)            Investments constituting non-cash
proceeds of sales, transfers and other dispositions of assets to the extent
permitted by Section 10.4(b) or (c);

 

(k)           Investments made to repurchase or
retire common stock of the Parent or Holdings owned by any employee stock
ownership plan or key employee stock ownership plan of the Parent, Holdings or
the Borrower; and

 

(l)            Investments permitted under Section
10.6.

 

10.6.        Limitation
on Dividends.  Holdings and the
Borrower will not declare or pay any dividends (other than dividends payable
solely in its capital stock) or return any capital to its stockholders or make
any other distribution, payment or delivery of property or cash to its stockholders
as such, or redeem, retire, purchase or otherwise acquire, directly or
indirectly, for consideration, any shares of any class of its capital stock or
the capital stock of any direct or indirect parent now or hereafter outstanding
(or any options or warrants or stock appreciation rights issued with respect to
any of its capital stock), or set aside any funds for any of the foregoing
purposes, or permit any of the Restricted Subsidiaries to purchase or otherwise
acquire for consideration (other than in connection with an Investment
permitted by Section 10.5) any shares of any class of the capital stock of
Holdings or the Borrower, now or hereafter outstanding (or any options or
warrants or stock appreciation rights issued with respect to any of its capital
stock) (all of the foregoing “dividends”), provided that so long
as no Default or Event of Default exists or would exist after giving effect
thereto, (a) each of Holdings and the Borrower may redeem in whole or in part
any of its capital stock for another class of capital stock or rights to
acquire its capital stock or with proceeds from substantially concurrent equity
contributions or issuances of new shares of its capital stock, provided
that such other class of capital stock contains terms and provisions at least
as advantageous to the Lenders in all respects material to their interests as
those contained in the capital stock redeemed thereby, (b) the Borrower
may declare and pay dividends and/or make distributions to Holdings, and
Holdings may declare and pay dividends and/or make distributions to Parent, to
enable Parent to repurchase shares of its capital stock (or any options or
warrants or stock appreciation rights issued with respect to any of its capital
stock) held by officers, directors and employees of Parent, Holdings, the
Borrower and its Subsidiaries, so long as such repurchase is pursuant to, and
in accordance with the terms of, management and/or employee stock plans, stock
subscription agreements or shareholder agreements, (c) each of Holdings
and the Borrower may declare and pay dividends on its capital stock, provided
that the amount of any such dividends pursuant to this clause (c) shall not exceed
an amount equal to the Applicable Amount at such time, (d) the Borrower may
declare and pay dividends and/or make distributions to Holdings, and Holdings
may declare and pay dividends and/or make distributions to Parent, solely to
pay administrative and similar expenses related to ownership of the Borrower
and Holdings, provided that the amount of such dividends does not exceed
in any fiscal year the amount of such expenses payable for such fiscal year (it
being understood that such expenses shall in no event exceed $1,000,000 in the
aggregate per fiscal year), and (e) at any time on or after April 30, 2009, the
Borrower may declare and pay dividends and/or make distributions to Holdings,
and Holdings may declare and pay

 

122

 

dividends and/or make distributions to
Parent, in each case in an amount not in excess of the amount of regularly
scheduled cash interest payable during the period of 45 days following the date
of such dividend or distribution on outstanding Parent Discount Notes, provided
that (i) any such dividends or distributions relating to any such cash interest
payment must be paid not earlier than 45 days prior to the date when such cash
interest is required to be paid by Parent and the proceeds must be applied by
Parent to the payment of such interest when due and (ii) the Borrower and the
Restricted Subsidiaries shall be in pro forma compliance with the covenant set
forth in Section 10.10 after giving effect to such dividend or distribution.

 

10.7.        Limitations on Debt Payments and
Amendments; Unpaid Refinancing Amount.  (a)  Holdings, the Borrower and the Canadian Borrower
will not, and will not permit any Restricted Subsidiary to, prepay, repurchase
or redeem or otherwise defease any Subordinated Indebtedness; provided, however,
that so long as no Default or Event of Default has occurred and is continuing,
the Borrower or any Restricted Subsidiary may prepay, repurchase or redeem
Subordinated Indebtedness (x) for an aggregate price not in excess of the
Applicable Amount at the time of such prepayment, repurchase or redemption, or
(y) with the proceeds of Subordinated Indebtedness that (1) is permitted
by Section 10.1 (other than Section 10.1(a)(xiv)) and (2) has terms
material to the interests of the Lenders not materially less advantageous to
the Lenders than those of such Subordinated Indebtedness being refinanced.

 

(b)           Holdings, the Borrower and the
Canadian Borrower will not, and will not permit any Restricted Subsidiary to,
waive, amend, modify, terminate or release any Subordinated Indebtedness to the
extent that any such waiver, amendment, modification, termination or release
would be adverse to the Lenders in any material respect.

 

(c)           The Borrower may make payments to the
extent necessary to pay the Unpaid Refinancing Amount, if any, provided such
payment is made within 35 days of the Closing Date.

 

10.8.        Limitations
on Sale Leasebacks.  The
Borrower will not, and will not permit any of the Restricted Subsidiaries to,
enter into or effect any Sale Leasebacks, other than Permitted Sale Leasebacks.

 

10.9.        Consolidated Total Debt to
Consolidated EBITDA Ratio.  The
Borrower will not permit the Consolidated Total Debt to Consolidated EBITDA
Ratio (with Seasonal Revolving Indebtedness being excluded from Consolidated
Total Debt for purposes of calculating such ratio in respect of each Test
Period ending on the last day of the third fiscal quarter in each fiscal year
of the Borrower) for any Test Period ending on the last day of any fiscal
quarter of the Borrower set forth below to be greater than the ratio set forth below
opposite such fiscal quarter:

 

123

 

	
  Fiscal Year

  	
   

  	
  Fiscal Quarters

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  First, Second, Third and
  Fourth

  	
   

  	
  6.00
  to 1.00

  	
   

  
	
  2006

  	
   

  	
  First, Second, Third and
  Fourth

  	
   

  	
  5.75
  to 1.00

  	
   

  
	
  2007

  	
   

  	
  First and Second

  	
   

  	
  5.50
  to 1.00

  	
   

  
	
  2007

  	
   

  	
  Third and Fourth

  	
   

  	
  5.25
  to 1.00

  	
   

  
	
  2008

  	
   

  	
  First, Second, Third and
  Fourth

  	
   

  	
  5.00
  to 1.00

  	
   

  
	
  2009

  	
   

  	
  First, Second, Third and
  Fourth

  	
   

  	
  4.75
  to 1.00

  	
   

  
	
  2010

  	
   

  	
  First and Second

  	
   

  	
  4.50
  to 1.00

  	
   

  
	
  Each Fiscal Quarter
  Thereafter

  	
   

  	
   

  	
   

  	
  4.25
  to 1.00

  	
   

  

 

10.10.      Consolidated EBITDA to
Consolidated Interest Expense Ratio. 
The Borrower will not permit the Consolidated EBITDA to Consolidated
Interest Expense Ratio for any Test Period ending on the last day of any fiscal
quarter of the Borrower set forth below to be less than the ratio set forth
below opposite such fiscal quarter:

 

	
  Fiscal Year

  	
   

  	
  Fiscal Quarters

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  First, Second and Third

  	
   

  	
  2.00
  to 1.00

  	
   

  
	
  2005

  	
   

  	
  Fourth

  	
   

  	
  2.10
  to 1.00

  	
   

  
	
  2006

  	
   

  	
  First, Second and Third

  	
   

  	
  2.10
  to 1.00

  	
   

  
	
  2006

  	
   

  	
  Fourth

  	
   

  	
  2.20
  to 1.00

  	
   

  
	
  2007

  	
   

  	
  First and Second and Third

  	
   

  	
  2.20
  to 1.00

  	
   

  
	
  2007

  	
   

  	
  Fourth

  	
   

  	
  2.30
  to 1.00

  	
   

  
	
  2008

  	
   

  	
  First, Second and Third

  	
   

  	
  2.30
  to 1.00

  	
   

  
	
  2008

  	
   

  	
  Fourth

  	
   

  	
  2.40
  to 1.00

  	
   

  
	
  2009

  	
   

  	
  First, Second and Third

  	
   

  	
  2.40
  to 1.00

  	
   

  
	
  Each Fiscal Quarter
  Thereafter

  	
   

  	
   

  	
   

  	
  2.50
  to 1.00

  	
   

  

 

10.11.      Capital
Expenditures.  The Borrower and
the Canadian Borrower will not, and will not permit any of the Restricted
Subsidiaries to, make any Capital Expenditures (other than Permitted
Acquisitions that constitute Capital Expenditures), that would cause the
aggregate amount of such Capital Expenditures made by the Borrower and the
Restricted Subsidiaries in any fiscal year of the Borrower (including the whole
fiscal year of 2004) to exceed the greater of (a) 5% of net sales of the
Borrower and the Restricted Subsidiaries for the immediately preceding fiscal
year (as set forth in the Section 9.1 Financials with respect to such fiscal
year) and (b) $75,000,000 (such greater amount, subject to the last paragraph
of this Section 10.11, the “Permitted Capital Expenditure Amount”); provided
that, with respect to any fiscal year of the Borrower during which a Permitted
Acquisition is consummated and for each fiscal year of the Borrower subsequent
thereto (to the extent the Permitted Capital Expenditure Amount for such
subsequent fiscal year is established based on clause (b) of the definition of
such term), the Permitted Capital Expenditure Amount applicable to such fiscal
year shall be increased by an amount equal to the greater of (i) 110% of the
amount of capital expenditures (determined in accordance with GAAP) made by the
Acquired Entity or Business for the twelve month period immediately preceding
the consummation of such Permitted Acquisition and (ii) 5% of the net sales of
the Acquired Entity or Business for such twelve month period (as set forth in
the audited financial statements of such Acquired Entity or Business for such
period or, if such audited

 

124

 

financial statements are not available, as
set forth in the most recent financial statements of such Acquired Entity or
Business delivered to the Borrower by such Acquired Entity or Business or the
seller thereof in connection with such Permitted Acquisition) (such greater
amount, the “Acquired Permitted Capital Expenditure Amount”); provided
further that, with respect to the fiscal year of the Borrower during
which any such Permitted Acquisition occurs, the Permitted Capital Expenditure
Amount applicable to such fiscal year shall be increased by an amount equal to
the product of (x) the Acquired Permitted Capital Expenditure Amount and (y) a
fraction, the numerator of which is the number of days remaining in such fiscal
year of the Borrower and the denominator of which is 365.

 

Notwithstanding
anything to the contrary in the preceding paragraph, to the extent that Capital
Expenditures made by the Borrower and the Restricted Subsidiaries during any
fiscal year are less than the Permitted Capital Expenditure Amount for such
fiscal year (after giving effect to any increase in such amount pursuant to the
first and second provisos in the preceding paragraph), 100% of such unused
amount (each such amount, a “carry-forward amount”) may be carried
forward and utilized to make Capital Expenditures in the immediately succeeding
fiscal year and/or the second succeeding fiscal year following the fiscal year
in which such carry-forward amount arose.

 

Notwithstanding
the foregoing, the aggregate amount available for Permitted Capital
Expenditures for any fiscal year shall be reduced at the time of and in the
amount of any Investment made pursuant to clause (B) of Section 10.5(i) during
such fiscal year.

 

SECTION
11.  Events of Default.

 

Upon the
occurrence of any of the following specified events (each an “Event of
Default”):

 

11.1.        Payments.  The Borrower or the Canadian Borrower shall
(a) default in the payment when due of any principal of the Loans or (b)
default, and such default shall continue for five or more days, in the payment
when due of any interest or stamping fees on the Loans or any Fees or any
Unpaid Drawings or of any other amounts owing hereunder or under any other
Credit Document; or

 

11.2.        Representations,
etc.  Any representation, warranty
or statement made or deemed made by any Credit Party herein or in any Security
Document or any certificate delivered or required to be delivered pursuant
hereto or thereto shall prove to be untrue in any material respect on the date
as of which made or deemed made; or

 

11.3.        Covenants.  Any Credit Party shall (a) default in the
due performance or observance by it of any term, covenant or agreement contained
in Section 9.1(e) or Section 10 or (b) default in the due performance or
observance by it of any term, covenant or agreement (other than those referred
to in Section 11.1 or 11.2 or clause (a) of this Section 11.3) contained
in this Agreement, any Security Document or the Amended and Restated Fee Letter
dated August 26, 2004 between the Borrower and the Agents and such default
shall continue unremedied

 

125

 

for a period of at least 30 days after
receipt of written notice by the Borrower from the Administrative Agent or the
Required Lenders; or

 

11.4.        Default
Under Other Agreements. 
(a) Holdings, the Borrower, the Canadian Borrower or any of the
other Restricted Subsidiaries shall (i) default in any payment with respect to
any Indebtedness (other than the Obligations) in excess of $50,000,000 in the
aggregate, for Holdings, the Borrower, the Canadian Borrower and such
Restricted Subsidiaries, beyond the period of grace, if any, provided in the
instrument or agreement under which such Indebtedness was created or
(ii) default in the observance or performance of any agreement or condition
relating to any such Indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event shall occur or
condition exist (other than, with respect to Indebtedness consisting of any
Hedge Agreements, termination events or equivalent events pursuant to the terms
of such Hedge Agreements), the effect of which default or other event or
condition is to cause, or to permit the holder or holders of such Indebtedness
(or a trustee or agent on behalf of such holder or holders) to cause, any such
Indebtedness to become due prior to its stated maturity; or (b) without
limiting the provisions of clause (a) above, any such Indebtedness shall
be declared to be due and payable, or required to be prepaid other than by a
regularly scheduled required prepayment or as a mandatory prepayment (and, with
respect to Indebtedness consisting of any Hedge Agreements, other than due to a
termination event or equivalent event pursuant to the terms of such Hedge Agreements),
prior to the stated maturity thereof; or

 

11.5.        Bankruptcy,
etc.  Holdings, the Borrower, the
Canadian Borrower or any Specified Subsidiary shall commence a voluntary case,
proceeding or action concerning itself under (a) Title 11 of the United
States Code entitled “Bankruptcy,” or (b) in the case of the Canadian
Borrower and any Foreign Subsidiary that is a Specified Subsidiary, any
domestic or foreign law relating to bankruptcy, insolvency reorganization or
relief of debtors legislation of its jurisdiction of incorporation, in each
case as now or hereafter in effect, or any successor thereto (collectively, the
“Bankruptcy Code”); or an involuntary case, proceeding or action is
commenced against Holdings, the Borrower, the Canadian Borrower or any
Specified Subsidiary and the petition is not controverted within 10 days after
commencement of the case, proceeding or action; or an involuntary case,
proceeding or action is commenced against Holdings, the Borrower, the Canadian
Borrower or any Specified Subsidiary and the petition is not dismissed within
60 days after commencement of the case, proceeding or action; or a custodian
(as defined in the Bankruptcy Code), receiver, receiver manager, trustee,
liquidator or similar person is appointed for, or takes charge of, all or any
substantial part of the property of Holdings, the Borrower, the Canadian
Borrower or any Specified Subsidiary and such appointment continues
undischarged or unstayed for a period of 60 days; or Holdings, the Borrower,
the Canadian Borrower or any Specified Subsidiary commences any other
proceeding or action under any reorganization, arrangement, adjustment of debt,
winding up, relief of debtors, dissolution, receivership, insolvency or
liquidation or similar law of any jurisdiction whether now or hereafter in
effect relating to Holdings, the Borrower, the Canadian Borrower or any
Specified Subsidiary; or there is commenced against Holdings, the Borrower, the
Canadian Borrower or any Specified Subsidiary any such proceeding or action
that remains undismissed for a period of 60 days; or Holdings, the Borrower,
the Canadian Borrower or any Specified Subsidiary is

 

126

 

adjudicated insolvent or bankrupt; or any
order of relief or other order approving any such case or proceeding or action
is entered; or Holdings, the Borrower, the Canadian Borrower or any Specified
Subsidiary makes a general assignment for the benefit of creditors; or any corporate
action is taken by Holdings, the Borrower, the Canadian Borrower or any
Specified Subsidiary for the purpose of effecting any of the foregoing; or

 

11.6.        ERISA.  (a)  (i)  Any Plan shall fail to satisfy the minimum funding standard
required for any plan year or part thereof or a waiver of such standard or
extension of any amortization period is sought or granted under Section 412 of
the Code; any Plan is or shall have been terminated or is the subject of
termination proceedings under ERISA (including the giving of written notice
thereof); an event shall have occurred or a condition shall exist in either
case entitling the PBGC to terminate any Plan or to appoint a trustee to
administer any Plan (including the giving of written notice thereof); any Plan
shall have an accumulated funding deficiency (whether or not waived); the
Borrower or any Subsidiary or any ERISA Affiliate has incurred or is likely to
incur a liability to or on account of a Plan under Section 409, 502(i), 502(l),
515, 4062, 4063, 4064, 4069, 4201 or 4204 of ERISA or Section 4971 or 4975 of
the Code (including the giving of written notice thereof); (ii) there could
result from any event or events set forth in clause (i) of this Section 11.6(a)
the imposition of a lien, the granting of a security interest, or a liability,
or the reasonable likelihood of incurring a lien, security interest or
liability; and (iii) such lien, security interest or liability will or
would be reasonably likely to have a Material Adverse Effect, or
(b)  (i) the Canadian Borrower, any Subsidiary or any Affiliate
shall have failed to make any required contribution, installment or other
payment pursuant to applicable laws or regulations with respect to a Canadian
Pension Plan or Canadian Benefit Plan, or any other event shall have occurred,
giving rise to a lien (statutory or otherwise) against, or deemed trust in
respect of, any of the assets of the Canadian Borrower, any Subsidiary or any
Affiliate, or a waiver of the minimum funding requirements or an extension of
any amortization period under applicable laws or regulations with respect to a
Canadian Pension Plan or Canadian Benefit Plan is sought or granted; any
Canadian Pension Plan is or shall have been terminated or is the subject of
termination proceedings under applicable laws or regulations (including the
giving of written notice thereof); an event shall have occurred or a condition
shall exist in either case entitling any Governmental Authority to terminate
any Canadian Pension Plan or Canadian Benefit Plan (including the giving of
written notice thereof); the Canadian Borrower or any Subsidiary or any
Affiliate has incurred or is likely to incur a liability to or on account of a
Canadian Pension Plan or Canadian Benefit Plan arising due to breach by the
Canadian Borrower, any Subsidiary or any Affiliate of their respective obligations
pursuant to applicable laws or regulations (including the giving of written
notice thereof); (ii) there could result from any event or events set
forth in clause (i) of this Section 11.6(b) the imposition of a lien, the
granting of a security interest, or a liability, or the reasonable likelihood
of incurring a lien, security interest or liability; and (iii) such lien,
security interest or liability will or would be reasonably likely to have a
Material Adverse Effect; or

 

11.7.        Guarantee.  The Guarantee Agreements or any material
provision thereof shall cease to be in full force or effect or any Guarantor
thereunder or any Credit Party shall deny or disaffirm in writing any
Guarantor’s obligations under any Guarantee Agreement; or

 

127

 

11.8.        Security
Agreements.  The Security
Agreements or any material provision thereof shall cease to be in full force or
effect (other than pursuant to the terms hereof or thereof or as a result of
acts or omissions of the Administrative Agent or the Canadian Administrative
Agent, as applicable, or any Lender) or any grantor thereunder or any Credit
Party shall deny or disaffirm in writing any grantor’s obligations under any
Security Agreement; or

 

11.9.        Mortgages.  Any Mortgage or any material provision of
any Mortgage relating to any material portion of the Collateral shall cease to
be in full force or effect (other than pursuant to the terms hereof or thereof
or as a result of acts or omissions of the Collateral Agent or any Lender) or
any mortgagor thereunder or any Credit Party shall deny or disaffirm in writing
any mortgagor’s obligations under any Mortgage; or

 

11.10.      Canadian
Security Documents.  Any other
Canadian Security Document or any material provision of any other Canadian
Security Document shall cease to be in full force or effect (other than
pursuant to the terms hereof or thereof or as a result of acts or omissions of
the Canadian Administrative Agent or any Lender) or any grantor thereunder or
any Credit Party shall deny or disaffirm in writing any grantors obligations
under any Canadian Security Document; or

 

11.11.      Judgments.  One or more judgments or decrees shall be
entered against Holdings, the Borrower, the Canadian Borrower or any of the
Restricted Subsidiaries involving a liability of $50,000,000 or more in the
aggregate for all such judgments and decrees for Holdings, the Borrower and the
Restricted Subsidiaries (to the extent not paid or fully covered by insurance
provided by a carrier not disputing coverage after having been notified
thereof) and any such judgments or decrees shall not have been satisfied,
vacated, discharged or stayed or bonded pending appeal within 60 days from the
entry thereof; or

 

11.12.      Change of
Control.  A Change of Control
shall occur;

 

then, and in
any such event, and at any time thereafter, if any Event of Default shall then
be continuing, the Administrative Agent may, and upon the request of the Required
Lenders shall, by written notice to the Borrower, take any or all of the
following actions, without prejudice to the rights of the Administrative Agent,
the Canadian Administrative Agent or any Lender to enforce its claims against
the Borrower and the Canadian Borrower, except as otherwise specifically
provided for in this Agreement (provided that, if an Event of Default specified
in Section 11.5 shall occur with respect to Holdings, the Borrower, the
Canadian Borrower or any Specified Subsidiary, the result that would occur upon
the giving of written notice by the Administrative Agent as specified in
clauses (i), (ii) and (iv) below shall occur automatically without the giving
of any such notice):  (i) declare
the US Total Revolving Credit Commitment terminated and the Canadian Total
Revolving Credit Commitment terminated, whereupon the Commitments and Swingline
Commitment, if any, of each Lender or the Swingline Lender, as the case may be,
shall forthwith terminate immediately and any Fees theretofore accrued shall
forthwith become due and payable without any other notice of any kind;
(ii) declare the principal of and any accrued interest and fees in respect
of all Loans and all Obligations owing hereunder and thereunder to be,
whereupon the same shall become, forthwith

 

128

 

due and
payable without presentment, demand, protest or other notice of any kind, all
of which are hereby waived by the Borrower and the Canadian Borrower;
(iii) terminate any Letter of Credit that may be terminated in accordance
with its terms; and/or (iv) direct the Borrower and the Canadian Borrower to
pay (and the Borrower and the Canadian Borrower agree that upon receipt of such
notice, or upon the occurrence of an Event of Default specified in Section 11.5
with respect to the Borrower, the Canadian Borrower or any Specified
Subsidiary, it will pay) to the Administrative Agent or the Canadian
Administrative Agent, as applicable, at its Administrative Agent’s Office such
additional amounts of cash, to be held as security for the Borrower’s and the
Canadian Borrower’s respective reimbursement obligations for (x) Drawings that
may subsequently occur thereunder, equal to the aggregate Stated Amount of all
Letters of Credit issued and then outstanding and (y) the full face amount of
Bankers’ Acceptances outstanding prior to their maturity dates.

 

SECTION 12.  The Administrative Agent

 

12.1.        Appointment.  Each Lender hereby irrevocably designates
and appoints the Administrative Agent as the agent of such Lender under this
Agreement and the other Credit Documents, and each such Lender irrevocably
authorizes the Administrative Agent, in such capacity, to take such action on
its behalf under the provisions of this Agreement and the other Credit
Documents and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of this Agreement and the
other Credit Documents, together with such other powers as are reasonably
incidental thereto, including entering into the Intercreditor Agreement.  Notwithstanding any provision to the
contrary elsewhere in this Agreement, the Administrative Agent shall not have
any duties or responsibilities, except those expressly set forth herein, or any
fiduciary relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Credit Document or otherwise exist against the
Administrative Agent.

 

12.2.        Delegation
of Duties.  The Administrative
Agent may execute any of its duties under this Agreement and the other Credit
Documents by or through agents or attorneys-in-fact and shall be entitled to
seek advice of counsel concerning all matters pertaining to such duties.  The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys-in-fact
selected by it with reasonable care.

 

12.3.        Exculpatory
Provisions.  Neither the
Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or Affiliates shall be (a) liable for any action lawfully
taken or omitted to be taken by it or such Person under or in connection with
this Agreement or any other Credit Document (except for its or such Person’s
own gross negligence or willful misconduct) or (b) responsible in any manner to
any of the Lenders for any recitals, statements, representations or warranties
made by the Borrower, the Canadian Borrower, any Guarantor, any other Credit
Party or any officer thereof contained in this Agreement or any other Credit
Document or in any certificate, report, statement or other document referred to
or provided for in, or received by the Administrative Agent under or in
connection with, this Agreement or any other Credit Document or for the value,
validity, effectiveness, genuineness,

 

129

 

enforceability or sufficiency of this Agreement
or any other Credit Document or for any failure of the Borrower, the Canadian
Borrower, any Guarantor or any other Credit Party to perform its obligations
hereunder or thereunder.  The
Administrative Agent shall not be under any obligation to any Lender to
ascertain or to inquire as to the observance or performance of any of the
agreements contained in, or conditions of, this Agreement or any other Credit
Document, or to inspect the properties, books or records of the Borrower or the
Canadian Borrower.

 

12.4.        Reliance
by Administrative Agent.  The
Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, telecopy, telex or teletype message, statement, order or other document
or conversation believed by it to be genuine and correct and to have been
signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including counsel to the Borrower and/or the
Canadian Borrower), independent accountants and other experts selected by the
Administrative Agent.  The
Administrative Agent may deem and treat the Lender specified in the Register
with respect to any amount owing hereunder as the owner thereof for all
purposes unless a written notice of assignment, negotiation or transfer thereof
shall have been filed with the Administrative Agent.  The Administrative Agent shall be fully justified in failing or
refusing to take any action under this Agreement or any other Credit Document
unless it shall first receive such advice or concurrence of the Required
Lenders as it deems appropriate or it shall first be indemnified to its satisfaction
by the Lenders against any and all liability and expense that may be incurred
by it by reason of taking or continuing to take any such action or both.  The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this
Agreement and the other Credit Documents in accordance with a request of the
Required Lenders, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders.

 

12.5.        Notice of
Default.  The Administrative
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default hereunder unless the Administrative Agent has
received notice from a Lender or the Borrower referring to this Agreement,
describing such Default or Event of Default and stating that such notice is a
“notice of default”.  In the event that
the Administrative Agent receives such a notice, the Administrative Agent shall
give notice thereof to the Lenders.  The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be reasonably directed by the Required Lenders, provided
that unless and until the Administrative Agent shall have received such directions,
the Administrative Agent may (but shall not be obligated to) take such action,
or refrain from taking such action, with respect to such Default or Event of
Default as it shall deem advisable in the best interests of the Lenders (except
to the extent that this Agreement requires that such action be taken only with
the approval of the Required Lenders or each of the Lenders, as applicable).

 

12.6.        Non-Reliance on Administrative
Agent and Other Lenders.  Each
Lender expressly acknowledges that neither the Administrative Agent nor any of
its officers, directors, employees, agents, attorneys-in-fact or Affiliates has
made any representations or warranties to it and that no act by the
Administrative Agent hereinafter taken, including any review of the affairs of
the Borrower, the Canadian Borrower, any Guarantor or any other Credit Party,
shall be

 

130

 

deemed to constitute any representation or
warranty by the Administrative Agent to any Lender.  Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed appropriate,
made its own appraisal of and investigation into the business, operations,
property, financial and other condition and creditworthiness of the Borrower,
the Canadian Borrower, any Guarantor and any other Credit Party and made its
own decision to make its Loans hereunder and enter into this Agreement.  Each Lender also represents that it will,
independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and decisions in taking or not taking action under this Agreement and the other
Credit Documents, and to make such investigation as it deems necessary to
inform itself as to the business, operations, property, financial and other
condition and creditworthiness of the Borrower, the Canadian Borrower, any
Guarantor and any other Credit Party. 
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, assets,
operations, properties, financial condition, prospects or creditworthiness of
the Borrower, the Canadian Borrower, any Guarantor or any other Credit Party
that may come into the possession of the Administrative Agent or any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates.

 

12.7.        Indemnification.  The Lenders agree to indemnify the
Administrative Agent in its capacity as such (to the extent not reimbursed by
the Borrower or the Canadian Borrower and without limiting the obligation of
the Borrower and the Canadian Borrower to do so), ratably according to their
respective portions of the Total Credit Exposure in effect on the date on which
indemnification is sought (or, if indemnification is sought after the date upon
which the Commitments shall have terminated and the Loans shall have been paid
in full, ratably in accordance with their respective portions of the Total
Credit Exposure in effect immediately prior to such date), from and against any
and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind whatsoever that
may at any time (including at any time following the payment of the Loans) be
imposed on, incurred by or asserted against the Administrative Agent in any way
relating to or arising out of, the Commitments, this Agreement, any of the
other Credit Documents or any documents contemplated by or referred to herein
or therein or the transactions contemplated hereby or thereby or any action
taken or omitted by the Administrative Agent under or in connection with any of
the foregoing, provided that no Lender shall be liable for the payment
of any portion of such liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements resulting from the
Administrative Agent’s gross negligence or willful misconduct.  The agreements in this Section 12.7
shall survive the payment of the Loans and all other amounts payable hereunder.

 

12.8.        Administrative Agent in its
Individual Capacity.  The
Administrative Agent and its Affiliates may make loans to, accept deposits from
and generally engage in any kind of business with the Borrower, the Canadian
Borrower, any Guarantor and any other Credit Party as though the Administrative
Agent were not the Administrative Agent hereunder and

 

131

 

under the other Credit Documents.  With respect to the Loans made by it, the
Administrative Agent shall have the same rights and powers under this Agreement
and the other Credit Documents as any Lender and may exercise the same as
though it were not the Administrative Agent, and the terms “Lender” and “Lenders”
shall include the Administrative Agent in its individual capacity.

 

12.9.        Successor
Agent.  The Administrative Agent
may resign as Administrative Agent upon 20 days’ prior written notice to the
Lenders and the Borrower.  If the Administrative
Agent shall resign as Administrative Agent under this Agreement and the other
Credit Documents, then the Required Lenders shall appoint from among the
Lenders a successor agent for the Lenders, which successor agent shall be
approved by the Borrower (which approval shall not be unreasonably withheld) so
long as no Default or Event of Default is continuing, whereupon such successor
agent shall succeed to the rights, powers and duties of the Administrative
Agent, and the term “Administrative Agent” shall mean such successor agent
effective upon such appointment and approval, and the former Administrative
Agent’s rights, powers and duties as Administrative Agent shall be terminated,
without any other or further act or deed on the part of such former
Administrative Agent or any of the parties to this Agreement or any holders of
the Loans.  After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of
this Section 12 shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Agreement and
the other Credit Documents.

 

12.10.      Withholding Tax.  To the extent required by any applicable
law, the Administrative Agent may withhold from any interest payment to any
Lender an amount equivalent to any applicable withholding tax.  If the Internal Revenue Service or any
authority of the United States, Canada or other jurisdiction asserts a claim
that the Administrative Agent did not properly withhold tax from amounts paid
to or for the account of any Lender (because the appropriate form was not
delivered, was not properly executed, or because such Lender failed to notify
the Administrative Agent of a change in circumstances which rendered the
exemption from, or reduction of, withholding tax ineffective, or for any other
reason), such Lender shall indemnify the Administrative Agent fully for all
amounts paid, directly or indirectly, by the Administrative Agent as tax or
otherwise, including penalties and interest, together with all expenses
incurred, including legal expenses, allocated staff costs and any out of pocket
expenses.

 

12.11.      Canadian
Administrative Agent.  Each of
the Lenders hereby agrees and confirms that the provisions of this Section 12
shall apply mutatis mutandis to the Canadian Administrative Agent as if
each reference to the Administrative Agent were a reference to the Canadian
Administrative Agent unless the context clearly indicates otherwise upon the
same terms and subject to the same conditions as provided in this Section 12; provided,
that any successor Canadian Administrative Agent shall be a Canadian Resident
with an office in Toronto, Canada or Montreal, Canada having a combined capital
and surplus of at least $500,000,000 or an Affiliate of any such bank which is
also a bank and a Canadian Resident.

 

12.12.      Other Agents;
Arrangers and Bookrunners.  None of the Lenders or other
Persons identified on the cover page of this Agreement as a “sole lead
arranger,” “sole

 

132

 

bookrunner,” “co-arranger,” “co-syndication
agent” or “documentation agent” shall have any right, power, obligation,
liability, responsibility or duty under this Agreement in their respective
capacities as such, but shall be entitled to all the benefits of this Section
12 applicable to the Administrative Agent. 
Without limiting the foregoing, none of the Lenders or other Persons so
identified shall have or be deemed to have any fiduciary relationship with any
Lender.  Each Lender acknowledges that
it has not relied, and will not rely, on any of the Lenders or other Persons so
identified in deciding to enter into this Agreement or in taking or not taking
action hereunder.

 

SECTION 13.  Miscellaneous

 

13.1.        Amendments
and Waivers.  Neither this
Agreement nor any other Credit Document, nor any terms hereof or thereof may be
amended, supplemented or modified except in accordance with the provisions of
this Section 13.1.  The Required Lenders
may, or, with the written consent of the Required Lenders, the Administrative
Agent may, from time to time, (a) enter into with the relevant Credit
Party or Credit Parties written amendments, supplements or modifications hereto
and to the other Credit Documents for the purpose of adding any provisions to
this Agreement or the other Credit Documents or changing in any manner the
rights of the Lenders or of the Credit Parties hereunder or thereunder or (b)
waive, on such terms and conditions as the Required Lenders or the
Administrative Agent, as the case may be, may specify in such instrument, any
of the requirements of this Agreement or the other Credit Documents or any
Default or Event of Default and its consequences; provided, however,
that no such waiver and no such amendment, supplement or modification shall
directly (i) forgive any portion of any Loan or extend the final scheduled
maturity date of any Loan or reduce the stated rate, or forgive any portion, or
extend the date for the payment, of any interest or fee payable hereunder
(other than as a result of waiving the applicability of any post-default
increase in interest rates), or extend the final expiration date of any
Lender’s Commitment or extend the final expiration date of any Letter of Credit
beyond the L/C Maturity Date, or increase the aggregate amount of the Commitments
of any Lender, or amend or modify any provisions of Section 13.8(a), in each
case without the written consent of each Lender directly and adversely affected
thereby, or (ii) amend, modify or waive any provision of this
Section 13.1 or reduce the percentages specified in the definitions of the
terms “Required Lenders”, “Required Tranche A Term Loan Lenders” and “Required
Tranche B Term Loan Lenders” or consent to the assignment or transfer by the
Borrower or the Canadian Borrower of its rights and obligations under any
Credit Document to which it is a party (except as permitted pursuant to
Section 10.3), in each case without the written consent of each Lender
directly and adversely affected thereby, or (iii) amend, modify or waive any
provision of Section 12 without the written consent of the then-current Administrative
Agent, or (iv) amend, modify or waive any provision of Section 3 without the
written consent of each Letter of Credit Issuer, or (v) amend, modify or
waive any provisions hereof relating to Swingline Loans without the written
consent of the Swingline Lender, or (vi) change any Revolving Credit Commitment
to a Term Loan Commitment, or change any Term Loan Commitment to a Revolving
Credit Commitment, in each case without the prior written consent of each
Lender directly and adversely affected thereby, or (vii) release all or
substantially all of the Guarantors under the Guarantee Agreements (except as
expressly permitted by the applicable Guarantee Agreement), or release all or
substantially all of the Collateral under the Security

 

133

 

Agreements, the other Canadian Security
Documents and the Mortgages, in each case without the prior written consent of
each Lender, or (viii) amend Section 2.9 so as to permit Interest Period
intervals greater than six months without regard to availability to Lenders,
without the written consent of each Lender directly and adversely affected
thereby, or (ix) decrease any Tranche A Repayment Amount, extend any scheduled
Tranche A Repayment Date or decrease the amount or allocation of any mandatory
prepayment to be received by any Lender holding any Tranche A Term Loans, in
each case without the written consent of the Required Tranche A Term Loan
Lenders, or (x) decrease any Tranche B Repayment Amount, extend any
scheduled Tranche B Repayment Date or decrease the amount or allocation of any
mandatory prepayment to be received by any Lender holding any Tranche B Term
Loans, in each case without the written consent of the Required Tranche B Term
Loan Lenders.  Any such waiver and any
such amendment, supplement or modification shall apply equally to each of the affected
Lenders and shall be binding upon the Borrower, the Canadian Borrower, such
Lenders, the Administrative Agent and all future holders of the affected
Loans.  In the case of any waiver, the
Borrower, the Lenders and the Administrative Agent shall be restored to their
former positions and rights hereunder and under the other Credit Documents, and
any Default or Event of Default waived shall be deemed to be cured and not
continuing, it being understood that no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereon.

 

13.2.        Notices.  All notices, requests and demands to or upon
the respective parties hereto to be effective shall be in writing (including by
facsimile transmission), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered, or three days after
being deposited in the mail, postage prepaid, or, in the case of telecopy
notice, when received, addressed as follows in the case of the Borrower, the
Canadian Borrower, the Administrative Agent and the Canadian Administrative
Agent, and as set forth on Schedule 1.1(c) in the case of the other
parties hereto, or to such other address as may be hereafter notified by the
respective parties hereto:

 

	
   

  	
  The
  Borrower:

  	
  Jostens
  IH Corp.

  
	
   

  	
   

  	
  5501
  American Boulevard West

  
	
   

  	
   

  	
  Minneapolis,
  Minnesota 55437

  
	
   

  	
   

  	
  Attn:  David A. Tayeh

  
	
   

  	
   

  	
  Fax:   (952)
  830-3293

  
	
   

  	
   

  	
   

  
	
   

  	
  The
  Canadian Borrower:

  	
  Jostens
  Canada Ltd.

  
	
   

  	
   

  	
  180-117
  King Edward Street

  
	
   

  	
   

  	
  Winnipeg,
  Manitoba R3H0Y3

  
	
   

  	
   

  	
  Attn:  Robert Sigurdson

  
	
   

  	
   

  	
  Fax:   (204)
  774-8619

  

 

134

 

	
   

  	
  The
  Administrative Agent:

  	
  Credit
  Suisse First Boston

  
	
   

  	
   

  	
  Eleven
  Madison Avenue

  
	
   

  	
   

  	
  OMA-2

  
	
   

  	
   

  	
  New
  York, New York 10010

  
	
   

  	
   

  	
  Attention:
  Agency Group Manager

  
	
   

  	
   

  	
  Fax:   (212)
  325-8304

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Credit
  Suisse First Boston

  
	
   

  	
   

  	
  Eleven
  Madison Avenue

  
	
   

  	
   

  	
  New
  York, NY 10010

  
	
   

  	
   

  	
  Attention:
  Robert Hetu

  
	
   

  	
   

  	
  Fax:   (212)
  743-1857

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  The
  Canadian Administrative 

  	
  Credit
  Suisse First Boston Toronto

  
	
   

  	
  Agent:

  	
  Branch

  
	
   

  	
   

  	
  One
  First Canadian Place,

  
	
   

  	
   

  	
  Suite
  3000, P.O. Box 301,

  
	
   

  	
   

  	
  Toronto,
  Ontario

  
	
   

  	
   

  	
  Canada
  M5X 1C9

  
	
   

  	
   

  	
  Attention:
  Edith Chan

  
	
   

  	
   

  	
  Fax:   (416)
  352-4574

  

 

provided that any notice, request or demand to
or upon the Administrative Agent, the Canadian Administrative Agent or the
Lenders pursuant to Sections 2.3, 2.6, 2.9, 4.2 and 5.1 shall not be
effective until received.

 

13.3.        No Waiver;
Cumulative Remedies.  No failure to
exercise and no delay in exercising, on the part of the Administrative Agent,
the Canadian Administrative Agent or any Lender, any right, remedy, power or
privilege hereunder or under the other Credit Documents shall operate as a
waiver thereof, nor shall any single or partial exercise of any right, remedy,
power or privilege hereunder preclude any other or further exercise thereof or
the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges
herein provided are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

 

13.4.        Survival of Representations and
Warranties.  All representations
and warranties made hereunder, in the other Credit Documents and in any
document, certificate or statement delivered pursuant hereto or in connection
herewith shall survive the execution and delivery of this Agreement and the
making of the Loans hereunder.

 

135

 

13.5.        Payment
of Expenses and Taxes.  The
Borrower and the Canadian Borrower agree (a) to pay or reimburse the Agents for
all their reasonable out-of-pocket costs and expenses incurred in connection
with the development, preparation and execution of, and any amendment,
supplement or modification to, this Agreement and the other Credit Documents
and any other documents prepared in connection herewith or therewith, and the
consummation and administration of the transactions contemplated hereby and
thereby, including the reasonable fees, disbursements and other charges of
counsel to the Agents, (b) to pay or reimburse each Lender and Agent for all
its reasonable and documented costs and expenses incurred in connection with
the enforcement or preservation of any rights under this Agreement, the other
Credit Documents and any such other documents, including the reasonable fees,
disbursements and other charges of counsel to each Lender and of counsel to the
Agents, (c) to pay, indemnify, and hold harmless each Lender and Agent from,
any and all recording and filing fees and (d) to pay, indemnify, and hold
harmless each Lender and Agent and their respective directors, officers,
employees, trustees and agents from and against any and all other liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind or nature whatsoever, including
reasonable and documented fees, disbursements and other charges of counsel,
with respect to the execution, delivery, enforcement, performance and
administration of this Agreement, the other Credit Documents and any such other
documents, including, without limitation, any of the foregoing relating to the
violation of, noncompliance with or liability under, any Environmental Law or
to any actual or alleged presence, release or threatened release of Hazardous
Materials involving or attributable to the operations of the Borrower, any of
its Subsidiaries or any of the Real Estate (all the foregoing in this clause
(d), collectively, the “indemnified liabilities”), provided that
the Borrower and the Canadian Borrower shall have no obligation hereunder to
the Administrative Agent or any Lender nor any of their respective directors, officers,
employees and agents with respect to indemnified liabilities to the extent
attributable to (i) the gross negligence or willful misconduct of the
party to be indemnified to the extent so determined in the final, non-appelable
judgment of a court of competent jurisdiction or (ii) disputes among the
Administrative Agent, the Lenders and/or their transferees.  The agreements in this Section 13.5 shall
survive repayment of the Loans and all other amounts payable hereunder.

 

13.6.        Successors
and Assigns; Participations and Assignments.  (a)  The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby (including any
Affiliate of any Letter of Credit Issuer that issues any Letter of Credit),
except that (i) Holdings, the Borrower and the Canadian Borrower may not assign
or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Lender (and any attempted assignment or transfer
by Holdings, the Borrower or the Canadian Borrower without such consent shall
be null and void) and (ii) no Lender may assign or otherwise transfer its
rights or obligations hereunder except in accordance with this Section.  Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby (including any
Affiliate of any Letter of Credit Issuer that issues any Letter of Credit),
Participants (to the extent provided in paragraph (c) of this Section) and, to
the extent expressly contemplated hereby, the Related Parties of each of the
Administrative

 

136

 

Agent, the Canadian Administrative Agent, the
Letter of Credit Issuers and the Lenders) any legal or equitable right, remedy
or claim under or by reason of this Agreement.

 

(b)           (i) 
Subject to the conditions set forth in paragraph (b)(ii) below, any
Lender may assign to one or more assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitments
and the Loans at the time owing to it) with the prior written consent (such
consent not be unreasonably withheld or delayed; it being understood that,
without limitation, the Borrower shall have the right to withhold its consent
to any assignment if, in order for such assignment to comply with applicable
law, the Borrower would be required to obtain the consent of, or make any
filing or registration with, any Governmental Authority) of:

 

(A)          the Borrower (which consent shall not
be unreasonably withheld or delayed), provided that no consent of the
Borrower shall be required for an assignment to a Lender, an Affiliate of a
Lender (unless increased costs would result therefrom except if an Event of
Default under Section 11.1 or Section 11.5 has occurred and is continuing), an
Approved Fund, or if an Event of Default under Section 11.1 or Section 11.5 has
occurred and is continuing, any other assignee; and

 

(B)           the Administrative Agent, and, in the
case of Revolving Credit Commitments, Revolving Credit Loans or Letters of
Credit only, the Swingline Lender and the applicable Letter of Credit Issuer, provided
that no consent of the Administrative Agent shall be required for an assignment
of any Term Loan to a Lender, an Affiliate of a Lender or an Approved Fund.

 

(ii)           Assignments shall be subject to the
following additional conditions:

 

(A)          except in the case of an assignment to
a Lender, an Affiliate of a Lender or an Approved Fund or an assignment of the
entire remaining amount of the assigning Lender’s Commitment or Loans of any
Class, the amount of the Commitment or Loans of the assigning Lender subject to
each such assignment (determined as of the date the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative Agent) shall
not be less than $2,500,000 (or, in the case of a Tranche A Term Loan
Commitment, Tranche B Term Loan Commitment, Tranche A Term Loan or Tranche B
Term Loan, $1,000,000), and increments of $1,000,000 in excess thereof, unless
each of the Borrower and the Administrative Agent otherwise consents, provided
that no such consent of the Borrower shall be required if an Event of Default
under Section 11.1 or Section 11.5 has occurred and is continuing; provided
further that contemporaneous assignments to a single assignee made by
Affiliate Lenders shall be aggregated for purposes of meeting the minimum
assignment amount requirements stated above;

 

(B)           each partial assignment shall be made
as an assignment of a proportionate part of all the assigning Lender’s rights
and obligations under this Agreement, provided that this clause shall
not be construed to prohibit the assignment of a proportionate part of

 

137

 

all the assigning Lender’s rights and obligations in respect of one
Class of Commitments or Loans;

 

(C)           the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Acceptance,
together with a processing and recordation fee of $3,500, provided that
only one such fee shall be payable in the event of simultaneous assignments to
or from two or more Approved Funds; and

 

(D)          the assignee, if it shall not be a
Lender, shall deliver to the Administrative Agent an administrative
questionnaire in a form approved by the Administrative Agent the “Administrative
Questionnaire”; and

 

(E)           so long as no Event of Default has
occurred and is continuing, with respect to any assignment of the Canadian
Revolving Credit Commitments, the assignee shall be a Canadian Resident and it
or its Related Affiliate shall also be either a “United States person” (as such
term is defined in Section 7701(a)(30) of the Code) or a Non-US Lender that has
fulfilled the requirements of Section 5.4(b).

 

For the
purpose of this Section 13.6(b), the term “Approved Fund” means any
Person (other than a natural person) that is engaged in making, purchasing,
holding or investing in bank loans and similar extensions of credit in the
ordinary course and that is administered, advised or managed by (a) a
Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an
entity that administers, advises or manages a Lender.

 

(iii)          Subject to acceptance and recording
thereof pursuant to paragraph (b)(v) of this Section, from and after the
effective date specified in each Assignment and Acceptance, the assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Acceptance, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 2.10, 2.11, 3.5, 5.4 and 13.5).  Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this
Section 13.6 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section.

 

(iv)          The Administrative Agent, acting for
this purpose as an agent of the Borrower and the Canadian Borrower, shall
maintain at the Administrative Agent’s Office a copy of each Assignment and Acceptance
delivered to it and a register for the recordation of the names and addresses
of the Lenders, and the Commitments of, and principal amount of the Loans and
any payment made by any Letter of Credit Issuer under any Letter of Credit
owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  In the case of a Lender in respect of a
Canadian Revolving

 

138

 

Credit Commitment or a Canadian Letter of Credit Commitment, the Register
shall also record the address of the lending office of the Lender through which
such Lender acts under this Agreement and whether or not the Lender is a
Canadian Resident.  Further, the
Register shall contain the name and address of the Administrative Agent and the
Canadian Administrative Agent and the lending office through which each such
Person acts under this Agreement.  The
entries in the Register shall be conclusive, and the Borrower, the Canadian
Borrower, the Administrative Agent, the Canadian Administrative Agent, the
Letter of Credit Issuers and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for
inspection by the Borrower, the Canadian Borrower, any Letter of Credit Issuer
and any Lender, at any reasonable time and from time to time upon reasonable
prior notice.

 

(v)           Upon its receipt of a duly completed
Assignment and Acceptance executed by an assigning Lender and an assignee, the
assignee’s completed Administrative Questionnaire (unless the assignee shall
already be a Lender hereunder), the processing and recordation fee referred to
in paragraph (b) of this Section and any written consent to such assignment
required by paragraph (b) of this Section, the Administrative Agent shall
accept such Assignment and Acceptance and record the information contained
therein in the Register.  No assignment
shall be effective for purposes of this Agreement unless it has been recorded
in the Register as provided in this paragraph.

 

(c)           (i)  Any Lender may,
without the consent of the Borrower, the Canadian Borrower, the Administrative
Agent, the Canadian Administrative Agent, any Letter of Credit Issuer or the
Swingline Lender, sell participations to one or more banks or other entities
(each, a “Participant”) in all or a portion of such Lender’s rights and
obligations under this Agreement (including all or a portion of its Commitments
and/or the Loans owing to it), provided that (A) such Lender’s
obligations under this Agreement shall remain unchanged, (B) such Lender shall
remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrower, the Canadian Borrower, the Administrative
Agent, the Canadian Administrative Agent, the Letter of Credit Issuers and the
other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement.  Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall
retain the sole right to enforce this Agreement and to approve any amendment,
modification or waiver of any provision of this Agreement or any other Credit
Document, provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any
amendment, modification or waiver described in the first proviso to Section 13.1
that affects such Participant.  Subject
to paragraph (c)(ii) of this Section, the Borrower and the Canadian
Borrower agree that each Participant shall be entitled to the benefits of
Sections 2.10, 2.11 and 5.4 to the same extent as if it were a Lender (subject
to the requirements of those Sections) and had acquired its interest by
assignment pursuant to paragraph (b) of this Section.  To the extent permitted by law, each

 

139

 

Participant also shall be entitled to the
benefits of Section 13.8(b) as though it were a Lender, provided such
Participant agrees to be subject to Section 13.8(a) as though it were a Lender.

 

(ii)           A Participant shall not be entitled
to receive any greater payment under Section 2.10 or 5.4 than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent (which consent
shall not be unreasonably withheld).

 

(d)           Any Lender may, without the consent
of or notice to the Borrower or the Administrative Agent or any other Person,
at any time pledge or assign a security interest in all or any portion of its
rights under this Agreement to secure obligations of such Lender, including any
pledge or assignment to secure obligations to a Federal Reserve Bank, and this
Section shall not apply to any such pledge or assignment of a security
interest, provided that no such pledge or assignment of a security interest
shall release a Lender from any of its obligations hereunder or substitute any
such pledgee or assignee for such Lender as a party hereto.  In order to facilitate such pledge or
assignment, the Borrower and the Canadian Borrower hereby agree that, upon
request of any Lender at any time and from time to time after the Borrower has
made its initial borrowing hereunder, the Borrower or the Canadian Borrower, as
the case may be, shall provide to such Lender, at the Borrower’s or the
Canadian Borrower’s own expense, a promissory note, substantially in the form
of Exhibit K-1, K-2 or K3, as the case may be, evidencing
the Tranche A Term Loans, Tranche B Term Loans and New Tranche B Term Loans,
and Revolving Credit Loans and Swingline Loans, respectively, owing to such
Lender.

 

(e)           Subject to Section 13.16, the
Borrower and the Canadian Borrower authorize each Lender to disclose to any
Participant, secured creditor of such Lender or assignee (each, a “Transferee”)
and any prospective Transferee any and all financial information in such
Lender’s possession concerning the Borrower and its Affiliates that has been
delivered to such Lender by or on behalf of the Borrower and its Affiliates
pursuant to this Agreement or which has been delivered to such Lender by or on
behalf of the Borrower and its Affiliates in connection with such Lender’s
credit evaluation of the Borrower and its Affiliates prior to becoming a party
to this Agreement.

 

(f)            Each Person that is or becomes a
Lender or Canadian Administrative Agent in respect of the Canadian Revolving
Credit Commitment or Canadian Letter of Credit Commitment shall (i) promptly
direct the Administrative Agent to record in the Register the information
described in Section 13.6(b)(iv) of this Agreement, (ii) upon written request
made by Canadian Borrower, deliver to the Canadian Borrower and the
Administrative Agent such certificates, forms, documents, or other evidence as
may be applicable and determined by the Canadian Borrower, acting reasonably,
to be reasonably satisfactory to determine whether such Person is a Canadian
Resident, and (iii) promptly direct the Administrative Agent to amend the
Register to reflect any change in the information contained therein with
respect to such Person.

 

13.7.        Replacements of Lenders under Certain
Circumstances.  (a)  The
Borrower (on its own behalf and on behalf of the Canadian Borrower) shall be
permitted to

 

140

 

replace any Lender that (a) requests reimbursement
for amounts owing pursuant to Section 2.10, 2.12, 3.5 or 5.4, (b) is
affected in the manner described in Section 2.10(a)(iii) and as a result
thereof any of the actions described in such Section is required to be taken or
(c) becomes a Defaulting Lender, with a replacement bank or other financial
institution, provided that (i) such replacement does not conflict with
any Requirement of Law, (ii) the Borrower and/or the Canadian Borrower, as
applicable, shall repay (or the replacement bank or institution shall purchase,
at par) all Loans and other amounts (other than any disputed amounts), pursuant
to Section 2.10, 2.11, 2.12, 3.5 or 5.4, as the case may be) owing to such
replaced Lender prior to the date of replacement, (iii) the replacement bank or
institution, if not already a Lender, and the terms and conditions of such replacement,
shall be reasonably satisfactory to the Administrative Agent, (iv) the replaced
Lender shall be obligated to make such replacement in accordance with the
provisions of Section 13.6 (provided that the Borrower shall be
obligated to pay the registration and processing fee referred to therein) and
(v) any such replacement shall not be deemed to be a waiver of any rights
that the Borrower, the Canadian Borrower, the Administrative Agent or any other
Lender shall have against the replaced Lender.

 

(b)           If any Lender (such Lender, a “Non-Consenting
Lender”) has failed to consent to a proposed amendment, waiver, discharge
or termination which pursuant to the terms of Section 13.1 requires the consent
of all of the Lenders affected and with respect to which the Required Lenders
shall have granted their consent, the Borrower shall have the right (unless
such Non-Consenting Lender grants such consent) to replace such Non-Consenting Lender
by requiring such Non-Consenting Lender to assign its Loans, and its
Commitments hereunder to one or more assignees reasonably acceptable to the
Administrative Agent, provided that: (a) all Obligations of Borrower
owing to such Non-Consenting Lender being replaced shall be paid in full to
such Non-Consenting Lender concurrently with such assignment, and (b) the
replacement Lender shall purchase the foregoing by paying to such
Non-Consenting Lender a price equal to the principal amount thereof plus accrued
and unpaid interest thereon.  In
connection with any such assignment, the Borrower, Administrative Agent, such
Non-Consenting Lender and the replacement Lender shall otherwise comply with
Section 13.1.

 

13.8.        Adjustments;
Set-off.  (a)  If any
Lender (a “benefited Lender”) shall at any time receive any payment of
all or part of its Loans, or interest thereon, or receive any collateral in
respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to
events or proceedings of the nature referred to in Section 11.5, or otherwise),
in a greater proportion than any such payment to or collateral received by any
other Lender, if any, in respect of such other Lender’s Loans, or interest
thereon, such benefited Lender shall purchase for cash from the other Lenders a
participating interest in such portion of each such other Lender’s Loan, or
shall provide such other Lenders with the benefits of any such collateral, or
the proceeds thereof, as shall be necessary to cause such benefited Lender to
share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders; provided, however, that if all or any portion
of such excess payment or benefits is thereafter recovered from such benefited
Lender, such purchase shall be rescinded, and the purchase price and benefits
returned, to the extent of such recovery, but without interest.

 

141

 

(b)           After the occurrence and during the
continuance of an Event of Default, in addition to any rights and remedies of
the Lenders provided by law, each Lender shall have the right, without prior
notice to the Borrower or the Canadian Borrower, any such notice being
expressly waived by the Borrower and the Canadian Borrower to the extent
permitted by applicable law, upon any amount becoming due and payable by the
Borrower or the Canadian Borrower hereunder (whether at the stated maturity, by
acceleration or otherwise) to set-off and appropriate and apply against such
amount any and all deposits (general or special, time or demand, provisional or
final), in any currency, and any other credits, indebtedness or claims, in any
currency, in each case whether direct or indirect, absolute or contingent,
matured or unmatured, at any time held or owing by such Lender or any branch or
agency thereof to or for the credit or the account of the Borrower or the
Canadian Borrower, as the case may be. 
Each Lender agrees promptly to notify the Borrower or the Canadian
Borrower, as the case may be, and the Administrative Agent after any such
set-off and application made by such Lender, provided that the failure
to give such notice shall not affect the validity of such set-off and
application.

 

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

 

13.10.      Severability.  Any provision of this 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.

 

13.11.      Integration.  This Agreement and the other Credit
Documents represent the agreement of the Borrower, the Canadian Borrower, the
Administrative Agent, the Canadian Administrative Agent and the Lenders with
respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Administrative Agent, the Canadian
Administrative Agent or any Lender relative to subject matter hereof not
expressly set forth or referred to herein or in the other Credit Documents.

 

13.12.      GOVERNING LAW.  THIS 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.

 

13.13.      Submission
to Jurisdiction; Waivers. 
Holdings, the Borrower and the Canadian Borrower each hereby irrevocably
and unconditionally:

 

(a)           submits for itself and its property
in any legal action or proceeding relating to this Agreement and the other
Credit Documents to which it is a party, or for recognition and

 

142

 

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 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 the Borrower at its address set forth in Section 13.2 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 to effect service of process in any other manner permitted by
law or shall limit the right 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 13.13 any special,
exemplary, punitive or consequential damages.

 

13.14.      Acknowledgments.  Each of Holdings, the Borrower and the
Canadian Borrower hereby acknowledges that:

 

(a)           it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Credit
Documents;

 

(b)           none of the Administrative Agent, the
Canadian Administrative Agent or any Lender has any fiduciary relationship with
or duty to Holdings, the Borrower or the Canadian Borrower arising out of or in
connection with this Agreement or any of the other Credit Documents, and the
relationship between Administrative Agent, the Canadian Administrative Agent
and Lenders, on one hand, and Holdings, the Borrower or the Canadian Borrower,
on the other hand, in connection herewith or therewith is solely that of debtor
and creditor; and

 

(c)           no joint venture is created hereby or
by the other Credit Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Lenders or among Holdings, the Borrower, the
Canadian Borrower and the Lenders.

 

13.15.      WAIVERS OF JURY TRIAL.  HOLDINGS, THE BORROWER, THE CANADIAN
BORROWER, THE ADMINISTRATIVE AGENT, THE CANADIAN ADMINISTRATIVE AGENT AND THE
LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT
AND FOR ANY COUNTERCLAIM THEREIN.

 

143

 

13.16.      Confidentiality.  The Administrative Agent, the Canadian
Administrative Agent and each Lender shall hold all non-public information
furnished by or on behalf of the Borrower or the Canadian Borrower in
connection with such Lender’s evaluation of whether to become a Lender
hereunder or obtained by such Lender or the Administrative Agent or the
Canadian Administrative Agent pursuant to the requirements of this Agreement (“Confidential
Information”), confidential in accordance with its customary procedure for
handling confidential information of this nature and (in the case of a Lender
that is a bank) in accordance with safe and sound banking practices and in any
event may make disclosure as required or requested by any regulatory or
governmental agency or representative thereof or pursuant to legal process or
to such Lender’s or the Administrative Agent’s or the Canadian Administrative
Agent’s attorneys, professional advisors or independent auditors or Affiliates,
provided that unless specifically prohibited by applicable law or court
order, each Lender and the Administrative Agent and the Canadian Administrative
Agent shall notify the Borrower of any request by any governmental agency or
representative thereof (other than any such request in connection with an examination
of the financial condition of such Person or Lender by such governmental
agency) for disclosure of any such non-public information prior to disclosure
of such information, and provided further that in no event shall any
Lender, the Administrative Agent or the Canadian Administrative Agent be
obligated or required to return any materials furnished by the Borrower or any
Subsidiary of the Borrower.  Each
Lender, the Administrative Agent and the Canadian Administrative Agent agrees
that it will not provide to prospective Transferees or to prospective direct or
indirect contractual counterparties in swap agreements to be entered into in
connection with Loans made hereunder any of the Confidential Information unless
such Person is advises of and agrees to be bound by the provisions of this
Section 13.16.

 

13.17.      Judgment
Currency.  (a)  The
obligations of the Borrower and the Canadian Borrower hereunder and under the
other Credit Documents to make payments in Dollars or in Canadian Dollars, as
the case may be (the “Obligation Currency”), shall not be discharged or
satisfied by any tender or recovery pursuant to any judgment expressed in or
converted into any currency other than the Obligation Currency, except to the
extent that such tender or recovery results in the effective receipt by the
Administrative Agent, the Canadian Administrative Agent or a Lender of the full
amount of the Obligation Currency expressed to be payable to the Administrative
Agent, the Canadian Administrative Agent or Lender under this Agreement or the
other Credit Documents.  If, for the
purpose of obtaining or enforcing judgment against the Borrower, the Canadian
Borrower or any other Credit Party in any court or in any jurisdiction, it
becomes necessary to convert into or from any currency other than the
Obligation Currency (such other currency being hereinafter referred to as the “Judgment
Currency”) an amount due in the Obligation Currency, the conversion shall
be made, at the rate of exchange prevailing, in each case, as of the date
immediately preceding the day on which the judgment is given (such Business Day
being hereinafter referred to as the “Judgment Currency Conversion Date”).

 

(b)           If there is a change in the rate of
exchange prevailing between the Judgment Currency Conversion Date and the date
of actual payment of the amount due, the Borrower and the Canadian Borrower
each covenant and agree to pay, or cause to be paid, such additional amounts,
if any (but in any event not a lesser amount), as may be necessary to ensure

 

144

 

that the amount paid in the Judgment
Currency, when converted at the rate of exchange prevailing on the date of
payment, will produce the amount of the Obligation Currency which could have
been purchased with the amount of Judgment Currency stipulated in the judgment
or judicial award at the rate of exchange prevailing on the Judgment Currency
Conversion Date.

 

(c)           For purposes of determining the
prevailing rate of exchange, such amounts shall include any premium and costs
payable in connection with the purchase of the Obligation Currency.

 

13.18.      USA
PATRIOT Act.  Each Lender hereby
notifies the Borrower and the Canadian Borrower that pursuant to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Patriot Act”), it is required to
obtain, verify and record information that identifies the Borrower and the
Canadian Borrower, which information includes the name and address of the
Borrower and the Canadian Borrower and other information that will allow such
Lender to identify the Borrower and the Canadian Borrower in accordance with
the Patriot Act.

 

145

 

IN WITNESS
WHEREOF, each of the parties hereto has caused a counterpart of this Agreement
to be duly executed and delivered as of the date first above written.

 

	
   

  	
  JOSTENS IH
  CORP.,

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David A.
  Tayeh

  	
   

  
	
   

  	
  Name:  David A. Tayeh

  
	
   

  	
  Title:    Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JOSTENS
  CANADA LTD.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael
  Bailey

  	
   

  
	
   

  	
  Name:  Michael Bailey

  
	
   

  	
  Title:    Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JOSTENS
  SECONDARY HOLDINGS CORP.,

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marie
  Hlavaty

  	
   

  
	
   

  	
  Name:  Marie Hlavaty

  
	
   

  	
  Title:    Secretary, Treasurer

  

 

 

	
   

  	
  CREDIT
  SUISSE FIRST BOSTON, acting through

  its Cayman Islands Branch, individually as a

  Lender and as Administrative Agent, Swingline

  Lender and US Letter of Credit Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert
  Hetu

  	
   

  
	
   

  	
  Name:  Robert Hetu

  
	
   

  	
  Title:    Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vanessa
  Gomez

  	
   

  
	
   

  	
  Name:  Vanessa Gomez

  
	
   

  	
  Title:    Associate

  

 

 

	
   

  	
  CREDIT
  SUISSE FIRST BOSTON TORONTO

  BRANCH, individually as a Lender and as

  Canadian Administrative Agent and Canadian

  Letter of Credit Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter
  Chauvin

  	
   

  
	
   

  	
  Name:  Peter Chauvin

  
	
   

  	
  Title:    Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alain
  Daoust

  	
   

  
	
   

  	
  Name:  Alain Daoust

  
	
   

  	
  Title:    Director

  

 

 

Signature Page to the
Credit Agreement dated as of

October 4, 2004

 

	
   

  	
  Bank of America, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Klawinski

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert Klawinski

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
					

 

 

	
   

  	
  Bank of America, N.A.,

  through its Canada Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Medina Sales de Andrade

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Medina Sales de Andrade

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

 

	
   

  	
  Bayerische Hypo and Vereinsbank AG,

  New York Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Hetal Selarke

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Hetal Selarke

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sven Schlessler

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Sven Schlessler

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  
						

 

 

	
   

  	
  Calyon New York Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Miscah Zabotin

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Miscah Zabotin

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Atilla Coach

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Atilla Coach

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
						

 

 

	
   

  	
  CIT Lending Services Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John P. Sirico, II

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John P. Sirico, II

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  Commerzbank AG, New York and

  Grand Cayman Branches

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas I. Glickman

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Douglas I. Glickman

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Henry J. Spark

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Henry J. Spark

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
						

 

 

	
   

  	
  Deutsche Bank AG Cayman Islands Branch

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Carin M. Keegan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Carin M. Keegan

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marguerite Sutton

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Marguerite Sutton

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

 

	
   

  	
  ERSTE BANK DER

  
	
   

  	
  OESTERREICHISCHEN SPARKASSEN AG

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Fry

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John Fry

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian J. Lynch

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Brian J. Lynch

  
	
   

  	
   

  	
  Title:

  	
  First Vice President

  
						

 

 

	
   

  	
  General Electric Capital Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vish Sathappan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Vish Sathappan

  
	
   

  	
   

  	
  Title:

  	
  Its Duly Authorized Signatory

  
					

 

 

	
   

  	
  ING CAPITAL LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Scott Orner

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David Scott Orner

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

 

	
   

  	
  MIZUHO CORPORATE BANK, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kentaro Akashi

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kentaro Akashi

  
	
   

  	
   

  	
  Title:

  	
  Deputy General Manager

  
					

 

 

	
   

  	
  National City Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A. Moose

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Michael A. Moose

  
	
   

  	
   

  	
  Title:

  	
  Assistant Vice President

  
					

 

 

	
   

  	
  Sumitomo Mitsui Banking Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Leo E. Pagarigan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Leo E. Pagarigan

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
					

 

 

	
   

  	
  The Royal Bank of Scotland plc

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ron Kantowitz

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ron Kantowitz

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

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"}]]