Document:

Exhibit
4.4

 

VERTIS, INC.,

as Issuer,

the Guarantors

named herein

and

THE BANK OF NEW YORK,

as Trustee

INDENTURE

Dated as of February 28, 2003

up to $293,500,000

131¤2%
Senior Subordinated Notes due 2009

 

 

[CROSS-REFERENCE TABLE]

	
  TIA Section

  	
   

  	
   

  	
   

  	
  Indenture Section

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  § 310 (a)

  	
  (l)

  	
   

  	
   

  	
  7.10

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  7.10

  
	
  (a)

  	
  (3)

  	
   

  	
   

  	
  N.A.

  
	
  (a)

  	
  (4)

  	
   

  	
   

  	
  N.A.

  
	
  (a)

  	
  (5)

  	
   

  	
   

  	
  7.10

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.8; 7.10; 13.2

  
	
  (c)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  § 311 (a)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.11

  
	
  (c)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  § 312 (a)

  	
   

  	
   

  	
   

  	
  2.5

  
	
  (b)

  	
   

  	
   

  	
   

  	
  13.3

  
	
  (c)

  	
   

  	
   

  	
   

  	
  13.3

  
	
  § 313 (a)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  (b)

  	
  (l)

  	
   

  	
   

  	
  7.6

  
	
  (b)

  	
  (2)

  	
   

  	
   

  	
  7.6

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.6; 13.2(b)

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.6

  
	
  § 314 (a)

  	
   

  	
   

  	
   

  	
  4.6; 4.7; 13.2

  
	
  (b)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  (c)

  	
  (1)

  	
   

  	
   

  	
  13.4

  
	
  (c)

  	
  (2)

  	
   

  	
   

  	
  13.4

  
	
  (c)

  	
  (3)

  	
   

  	
   

  	
  13.4

  
	
  (d)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  (e)

  	
   

  	
   

  	
   

  	
  13.5

  
	
  (f)

  	
   

  	
   

  	
   

  	
  N.A.

  
	
  § 315 (a)

  	
   

  	
   

  	
   

  	
  7.1(b)

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.5; 13.2

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.1(a)

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.1(c)

  
	
  (e)

  	
   

  	
   

  	
   

  	
  6.11

  
	
  § 316 (a)

  	
  (last sentence)

  	
   

  	
   

  	
  2.9

  
	
  (a)

  	
  (1)(A)

  	
   

  	
   

  	
  6.5

  
	
  (a)

  	
  (1)(B)

  	
   

  	
   

  	
  6.4

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  N.A.

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.7

  
	
  (c)

  	
   

  	
   

  	
   

  	
  9.4

  
	
  § 317 (a)

  	
  (1)

  	
   

  	
   

  	
  6.8

  
	
  (a)

  	
  (2)

  	
   

  	
   

  	
  6.9

  
	
  (b)

  	
   

  	
   

  	
   

  	
  2.4

  
	
  § 318 (a)

  	
   

  	
   

  	
   

  	
  13.1

  
	
  (c)

  	
   

  	
   

  	
   

  	
  13.1

  

 

N.A. means Not Applicable.

 i
 

NOTE:           This Cross-Reference Table shall not,
for any purpose, be deemed to be a part of this Indenture.

 ii
 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFINITIONS AND
  INCORPORATION BY REFERENCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  SECTION 1.2

  	
   

  	
  Incorporation by Reference of Trust Indenture Act

  	
   

  	
  35

  
	
  SECTION 1.3

  	
   

  	
  Rules of Construction

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE SECURITIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2.1

  	
   

  	
  Form and Dating

  	
   

  	
  36

  
	
  SECTION 2.2

  	
   

  	
  Execution and Authentication

  	
   

  	
  36

  
	
  SECTION 2.3

  	
   

  	
  Registrar and Paying Agent

  	
   

  	
  37

  
	
  SECTION 2.4

  	
   

  	
  Paying Agent To Hold Money in Trust

  	
   

  	
  38

  
	
  SECTION 2.5

  	
   

  	
  Securityholder Lists

  	
   

  	
  38

  
	
  SECTION 2.6

  	
   

  	
  Transfer and Exchange

  	
   

  	
  39

  
	
  SECTION 2.7

  	
   

  	
  Replacement Notes

  	
   

  	
  39

  
	
  SECTION 2.8

  	
   

  	
  Outstanding Notes

  	
   

  	
  40

  
	
  SECTION 2.9

  	
   

  	
  Treasury Notes

  	
   

  	
  40

  
	
  SECTION 2.10

  	
   

  	
  Temporary Notes

  	
   

  	
  40

  
	
  SECTION 2.11

  	
   

  	
  Cancellation

  	
   

  	
  41

  
	
  SECTION 2.12

  	
   

  	
  Defaulted Interest

  	
   

  	
  41

  
	
  SECTION 2.13

  	
   

  	
  CUSIP Number

  	
   

  	
  41

  
	
  SECTION 2.14

  	
   

  	
  Book-Entry Provisions for Global Securities

  	
   

  	
  42

  
	
  SECTION 2.15

  	
   

  	
  Special Transfer Provisions

  	
   

  	
  43

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  REDEMPTION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.1

  	
   

  	
  Notices to Trustee

  	
   

  	
  45

  
	
  SECTION 3.2

  	
   

  	
  Selection of Notes To Be Redeemed

  	
   

  	
  45

  
	
  SECTION 3.3

  	
   

  	
  Notice of Redemption

  	
   

  	
  45

  
	
  SECTION 3.4

  	
   

  	
  Effect of Notice of Redemption

  	
   

  	
  46

  
	
  SECTION 3.5

  	
   

  	
  Deposit of Redemption Price

  	
   

  	
  46

  
	
  SECTION 3.6

  	
   

  	
  Notes Redeemed in Part

  	
   

  	
  47

  
							

 

 iii
 

 

	
  ARTICLE IV

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COVENANTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4.1

  	
   

  	
  Payment of Notes

  	
   

  	
  47

  
	
  SECTION 4.2

  	
   

  	
  Maintenance of Office or Agency

  	
   

  	
  47

  
	
  SECTION 4.3

  	
   

  	
  Corporate Existence

  	
   

  	
  48

  
	
  SECTION 4.4

  	
   

  	
  Payment of Taxes and Other Claims

  	
   

  	
  48

  
	
  SECTION 4.5

  	
   

  	
  Maintenance of Properties

  	
   

  	
  49

  
	
  SECTION 4.6

  	
   

  	
  Compliance Certificates; Notice of Default

  	
   

  	
  49

  
	
  SECTION 4.7

  	
   

  	
  Reports

  	
   

  	
  50

  
	
  SECTION 4.8

  	
   

  	
  Limitation on Restricted Payments

  	
   

  	
  50

  
	
  SECTION 4.9

  	
   

  	
  Limitation on Incurrence of Additional Indebtedness

  	
   

  	
  54

  
	
  SECTION 4.10

  	
   

  	
  Limitation on Dividend and Other Payment
  Restrictions Affecting Subsidiaries

  	
   

  	
  54

  
	
  SECTION 4.11

  	
   

  	
  Limitation on Liens

  	
   

  	
  56

  
	
  SECTION 4.12

  	
   

  	
  Limitation on Asset Sales

  	
   

  	
  56

  
	
  SECTION 4.13

  	
   

  	
  Limitations on Transactions with Affiliates

  	
   

  	
  61

  
	
  SECTION 4.14

  	
   

  	
  Prohibition on Incurrence of Senior Subordinated
  Debt

  	
   

  	
  63

  
	
  SECTION 4.15

  	
   

  	
  Change of Control

  	
   

  	
  63

  
	
  SECTION 4.16

  	
   

  	
  Waiver of Stay; Extension of Usury Laws

  	
   

  	
  65

  
	
  SECTION 4.17

  	
   

  	
  Limitation on Guarantees by Restricted Subsidiaries

  	
   

  	
  65

  
	
  SECTION 4.18

  	
   

  	
  Limitation on Preferred Stock of Subsidiaries

  	
   

  	
  67

  
	
  SECTION 4.19

  	
   

  	
  Conduct of Business

  	
   

  	
  67

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUCCESSOR
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.1

  	
   

  	
  Limitation on Mergers, Consolidations or Sales of
  Assets

  	
   

  	
  67

  
	
  SECTION 5.2

  	
   

  	
  Successor Entity Substituted

  	
   

  	
  69

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEFAULT AND
  REMEDIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6.1

  	
   

  	
  Events of Default

  	
   

  	
  70

  
	
  SECTION 6.2

  	
   

  	
  Acceleration

  	
   

  	
  72

  
	
  SECTION 6.3

  	
   

  	
  Other Remedies

  	
   

  	
  73

  
	
  SECTION 6.4

  	
   

  	
  Waiver of Past Default

  	
   

  	
  73

  
	
  SECTION 6.5

  	
   

  	
  Control by Majority

  	
   

  	
  73

  
	
  SECTION 6.6

  	
   

  	
  Limitation on Suits

  	
   

  	
  74

  
	
  SECTION 6.7

  	
   

  	
  Rights of Holders To Receive Payment

  	
   

  	
  74

  
	
  SECTION 6.8

  	
   

  	
  Collection Suit by Trustee

  	
   

  	
  74

  
	
  SECTION 6.9

  	
   

  	
  Trustee May File Proofs of Claim

  	
   

  	
  75

  

 

 iv
 

 

	
  SECTION 6.10

  	
   

  	
  Priorities

  	
   

  	
  75

  
	
  SECTION 6.11

  	
   

  	
  Undertaking for Costs

  	
   

  	
  75

  
	
  SECTION 6.12

  	
   

  	
  Rights and Remedies Cumulative

  	
   

  	
  76

  
	
  SECTION 6.13

  	
   

  	
  Delay or Omission Not Waiver

  	
   

  	
  76

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TRUSTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.1

  	
   

  	
  Duties of Trustee

  	
   

  	
  76

  
	
  SECTION 7.2

  	
   

  	
  Rights of Trustee

  	
   

  	
  77

  
	
  SECTION 7.3

  	
   

  	
  Individual Rights of Trustee

  	
   

  	
  79

  
	
  SECTION 7.4

  	
   

  	
  Trustee’s Disclaimer

  	
   

  	
  79

  
	
  SECTION 7.5

  	
   

  	
  Notice of Defaults

  	
   

  	
  79

  
	
  SECTION 7.6

  	
   

  	
  Reports by Trustee to Holders

  	
   

  	
  79

  
	
  SECTION 7.7

  	
   

  	
  Compensation and Indemnity

  	
   

  	
  80

  
	
  SECTION 7.8

  	
   

  	
  Replacement of Trustee

  	
   

  	
  81

  
	
  SECTION 7.9

  	
   

  	
  Successor Trustee by Merger, Etc.

  	
   

  	
  82

  
	
  SECTION 7.10

  	
   

  	
  Eligibility; Disqualification

  	
   

  	
  82

  
	
  SECTION 7.11

  	
   

  	
  Preferential Collection of Claims Against Company

  	
   

  	
  82

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DISCHARGE OF
  INDENTURE; DEFEASANCE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.1

  	
   

  	
  Termination of the Company’s Obligations

  	
   

  	
  82

  
	
  SECTION 8.2

  	
   

  	
  Legal Defeasance and Covenant Defeasance

  	
   

  	
  84

  
	
  SECTION 8.3

  	
   

  	
  Conditions to Legal Defeasance or Covenant
  Defeasance

  	
   

  	
  85

  
	
  SECTION 8.4

  	
   

  	
  Application of Trust Money

  	
   

  	
  87

  
	
  SECTION 8.5

  	
   

  	
  Repayment to the Company

  	
   

  	
  87

  
	
  SECTION 8.6

  	
   

  	
  Reinstatement

  	
   

  	
  88

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMENDMENTS,
  SUPPLEMENTS AND WAIVERS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 9.1

  	
   

  	
  Without Consent of Holders

  	
   

  	
  88

  
	
  SECTION 9.2

  	
   

  	
  With Consent of Holders

  	
   

  	
  89

  
	
  SECTION 9.3

  	
   

  	
  Compliance with Trust Indenture Act

  	
   

  	
  90

  
	
  SECTION 9.4

  	
   

  	
  Revocation and Effect of Consents

  	
   

  	
  91

  
	
  SECTION 9.5

  	
   

  	
  Notation on or Exchange of Notes

  	
   

  	
  91

  
	
  SECTION 9.6

  	
   

  	
  Trustee To Sign Amendments, Etc.

  	
   

  	
  91

  

 

 v
 

 

	
  ARTICLE X

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBORDINATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.1

  	
   

  	
  Notes
  Subordinated to Senior Debt

  	
   

  	
  92

  
	
  SECTION 10.2

  	
   

  	
  Suspension of
  Payment When Senior Debt Is in Default

  	
   

  	
  92

  
	
  SECTION 10.3

  	
   

  	
  Obligations
  Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation
  or Reorganization of Company

  	
   

  	
  94

  
	
  SECTION 10.4

  	
   

  	
  Payments May Be
  Paid Prior to Dissolution

  	
   

  	
  95

  
	
  SECTION 10.5

  	
   

  	
  Holders To Be
  Subrogated to Rights of Holders of Senior Debt

  	
   

  	
  96

  
	
  SECTION 10.6

  	
   

  	
  Obligations of
  the Company Unconditional

  	
   

  	
  96

  
	
  SECTION 10.7

  	
   

  	
  Reliance on
  Judicial Order or Certificate of Liquidating Agent

  	
   

  	
  97

  
	
  SECTION 10.8

  	
   

  	
  Subordination
  Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior
  Debt

  	
   

  	
  97

  
	
  SECTION 10.9

  	
   

  	
  Holders
  Authorize Trustee To Effectuate Subordination of Obligations

  	
   

  	
  98

  
	
  SECTION 10.10

  	
   

  	
  Amendments or
  Modifications to Article X

  	
   

  	
  98

  
	
  SECTION 10.11

  	
   

  	
  Article X Not to
  Prevent Events of Default

  	
   

  	
  98

  
	
  SECTION 10.12

  	
   

  	
  No Fiduciary
  Duty of Trustee to Holders of Senior Debt

  	
   

  	
  99

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GUARANTEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.1

  	
   

  	
  Unconditional Guarantee

  	
   

  	
  99

  
	
  SECTION 11.2

  	
   

  	
  Subordination of Guarantee

  	
   

  	
  100

  
	
  SECTION 11.3

  	
   

  	
  Severability

  	
   

  	
  100

  
	
  SECTION 11.4

  	
   

  	
  Release of a Guarantor

  	
   

  	
  100

  
	
  SECTION 11.5

  	
   

  	
  Limitation of Guarantor”s Liability

  	
   

  	
  101

  
	
  SECTION 11.6

  	
   

  	
  Consolidation, Merger and Sale of Assets

  	
   

  	
  101

  
	
  SECTION 11.7

  	
   

  	
  Contribution

  	
   

  	
  102

  
	
  SECTION 11.8

  	
   

  	
  Waiver of Subrogation

  	
   

  	
  102

  
	
  SECTION 11.9

  	
   

  	
  Evidence of Guarantee

  	
   

  	
  103

  
	
  SECTION 11.10

  	
   

  	
  Waiver of Stay, Extension or Usury Laws

  	
   

  	
  103

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SUBORDINATION OF
  GUARANTEE OBLIGATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 12.1

  	
   

  	
  Guarantee Obligations Subordinated to Guarantor
  Senior Debt

  	
   

  	
  103

  

 

 vi
 

 

	
  SECTION 12.2

  	
   

  	
  Suspension of
  Guarantee Obligations When Guarantor Senior Debt Is in Default

  	
   

  	
  104

  
	
  SECTION 12.3

  	
   

  	
  Guarantee
  Obligations Subordinated to Prior Payment of All Guarantor Senior Debt on
  Dissolution, Liquidation or Reorganization of Such Guarantor

  	
   

  	
  105

  
	
  SECTION 12.4

  	
   

  	
  Payments May Be
  Paid Prior to Dissolution

  	
   

  	
  106

  
	
  SECTION 12.5

  	
   

  	
  Holders To Be
  Subrogated to Rights of Lenders of Guarantor Senior Debt

  	
   

  	
  107

  
	
  SECTION 12.6

  	
   

  	
  Guarantee
  Obligations of the Guarantors Unconditional

  	
   

  	
  107

  
	
  SECTION 12.7

  	
   

  	
  Reliance on
  Judicial Order or Certificate of Liquidating Agent

  	
   

  	
  107

  
	
  SECTION 12.8

  	
   

  	
  Subordination
  Rights Not Impaired by Acts or Omissions of the Guarantors or Lenders of
  Guarantor Senior Debt

  	
   

  	
  108

  
	
  SECTION 12.9

  	
   

  	
  Holders
  Authorize Trustee To Effectuate Subordination of Guarantee Obligations

  	
   

  	
  108

  
	
  SECTION 12.10

  	
   

  	
  This Article XII
  Not To Prevent Events of Default

  	
   

  	
  109

  
	
  SECTION 12.11

  	
   

  	
  Amendments or
  Modifications to Article XII

  	
   

  	
  109

  
	
  SECTION 12.12

  	
   

  	
  No Fiduciary
  Duty of Trustee to Holders of Senior Debt

  	
   

  	
  109

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.1

  	
   

  	
  Trust Indenture Act Controls

  	
   

  	
  110

  
	
  SECTION 13.2

  	
   

  	
  Notices

  	
   

  	
  110

  
	
  SECTION 13.3

  	
   

  	
  Communications by Holders with Other Holders

  	
   

  	
  111

  
	
  SECTION 13.4

  	
   

  	
  Certificate and Opinion of Counsel as to Conditions
  Precedent

  	
   

  	
  111

  
	
  SECTION 13.5

  	
   

  	
  Statements Required in Certificate and Opinion of
  Counsel

  	
   

  	
  112

  
	
  SECTION 13.6

  	
   

  	
  Rules by Trustee, Paying Agent, Registrar

  	
   

  	
  112

  
	
  SECTION 13.7

  	
   

  	
  Legal Holidays

  	
   

  	
  112

  
	
  SECTION 13.8

  	
   

  	
  Governing Law

  	
   

  	
  112

  
	
  SECTION 13.9

  	
   

  	
  No Recourse Against Others

  	
   

  	
  113

  
	
  SECTION 13.10

  	
   

  	
  Successors

  	
   

  	
  113

  
	
  SECTION 13.11

  	
   

  	
  Counterparts

  	
   

  	
  113

  
	
  SECTION 13.12

  	
   

  	
  Severability

  	
   

  	
  113

  
	
  SECTION 13.13

  	
   

  	
  Table of Contents, Headings, Etc.

  	
   

  	
  113

  
	
  SECTION 13.14

  	
   

  	
  No Adverse Interpretation of Other Agreements

  	
   

  	
  113

  
	
  SECTION 13.15

  	
   

  	
  Benefits of Indenture

  	
   

  	
  114

  
	
  SECTION 13.16

  	
   

  	
  Independence of Covenants

  	
   

  	
  114

  

 

 vii
 

 

	
  Exhibit A-1

  	
   

  	
  —

  	
   

  	
  Form of Series A Note

  
	
  Exhibit A-2

  	
   

  	
  —

  	
   

  	
  Form of Series B Note

  
	
  Exhibit B

  	
   

  	
  —

  	
   

  	
  Form of Legend for Global Securities

  
	
  Exhibit C

  	
   

  	
  —

  	
   

  	
  Transferee Certificate for Non-QIB Accredited
  Investors

  
	
  Exhibit D

  	
   

  	
  —

  	
   

  	
  Transferee Certificate for Transfers Pursuant to
  Regulation S

  
	
  Exhibit E

  	
   

  	
  —

  	
   

  	
  Form of Guarantee

  

 

Note:      This Table of Contents shall not, for any
purpose, be deemed to be part of the Indenture.

 viii

INDENTURE dated as of February 28, 2003, among VERTIS,
INC., a corporation duly organized and existing under the laws of the State of
Delaware, as issuer (the “Company”), the Guarantors (as defined herein) and THE
BANK OF NEW YORK, a New York banking corporation, as Trustee (the “Trustee”).

The parties hereto agree as follows for the benefit of
each other and for the equal and ratable benefit of the Holders:

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE 

SECTION 1.1 Definitions.  

“Acceleration Notice” shall have the meaning ascribed
to such term in Section 6.2.

“Accrued Bankruptcy Interest” means all interest
accruing subsequent to the occurrence of any events specified in Section 6.l(f)
or (g) or which would have accrued but for any such event.

“Acquired Indebtedness” means Indebtedness (1) of a
Person or any of its Subsidiaries existing at the time such Person becomes a
Restricted Subsidiary of the Company or (2) assumed in connection with the
acquisition of assets from such Person, in each case not incurred by such
Person in connection with, or in anticipation or contemplation of, such Person
becoming a Restricted Subsidiary of the Company or such acquisition. Acquired
Indebtedness shall be deemed to have been incurred, with respect to clause (1)
of the preceding sentence, on the date such Person becomes a Restricted
Subsidiary of the Company and, with respect to clause (2) of the preceding
sentence, on the date of consummation of such acquisition of assets.

“Adjusted Net Assets” shall have the meaning provided
in Section 11.7.

“Affiliate” means, with respect to any specified
Person, any other Person who directly or indirectly through one or more
intermediaries controls, or is controlled by, or is under common control with,
such specified Person. The term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative of the foregoing. Notwithstanding the foregoing, no Person
(other than the Company or any

Subsidiary of the Company) in whom a Receivables Entity makes an
Investment in connection with a Qualified Receivables Transaction shall be
deemed to be an Affiliate of the Company or any of its Subsidiaries solely by
reason of such Investment.

“Affiliate Transaction” has the meaning ascribed to
such term in Section 4.13.

“Agent” means any Registrar, Paying Agent or co-registrar.

“Agent Members” has the meaning provided in Section
2.14.

“A/R  Facility” means the Receivables
Purchase Agreement dated as of March 19, 1996, as amended, among the Company,
certain subsidiaries of the Company and BFP Receivables Corporation in each case
as such agreement may be amended (including any amendment and restatement
thereof), supplemented or otherwise modified from time to time, including any
agreement extending the term thereof, and any successor or replacement
agreement, including, without limitation, any agreement or agreements governing
a Qualified Receivables Transaction.

“Asset Acquisition” means (1) an Investment by the
Company or any Restricted Subsidiary of the Company in any other Person
pursuant to which such Person shall become a Restricted Subsidiary of the
Company or of any Restricted Subsidiary of the Company, or shall be merged with
or into the Company or any Restricted Subsidiary of the Company, or (2) the
acquisition by the Company or any Restricted Subsidiary of the Company of the
assets of any Person (other than a Restricted Subsidiary of the Company) which
constitute all or substantially all of the assets of such Person or comprise
any division or line of business of such Person or any other properties or
assets of such Person other than in the ordinary course of business.

“Asset Sale” means any direct or indirect sale,
issuance, conveyance, transfer, lease (other than operating leases entered into
in the ordinary course of business), assignment or other disposition for value
by the Company or any of its Restricted Subsidiaries (including any Sale and
Leaseback Transaction) to any Person other than the Company or a Restricted
Subsidiary of the Company of: (1) any Capital Stock of any Restricted
Subsidiary of the Company; or (2) any other property or assets of the Company
or any Restricted Subsidiary of the Company other than in the ordinary course
of business; provided, however, that Asset Sales shall not include:

(a)       any
transaction or series of related transactions for which the Company or its
Restricted Subsidiaries receive aggregate consideration of less than $2.5
million;

(b)       the
sale, lease, conveyance, disposition or other transfer of all or substantially
all of the assets of the Company as permitted under Article V;

 2
 

(c)       the
sale or discount, in each case without recourse, of accounts receivable arising
in the ordinary course of business;

(d)       the
factoring of accounts receivable arising in the ordinary course of business
pursuant to arrangements customary in the industry;

(e)       the
licensing of intellectual property;

(f)        disposals
or replacements of obsolete equipment in the ordinary course of business;

(g)       the
sale, lease, conveyance, disposition or other transfer by the Company or any
Restricted Subsidiary of assets or property in transactions constituting
Permitted Investments or Restricted Payments that are not prohibited under
Section 4.8;

(h)       sales
of accounts receivable and related assets of the type specified in the
definition of “Qualified Receivables Transaction” to a Receivables Entity (for
the purposes of this clause (h), Purchase Money Notes shall be deemed to be
cash);

(i)        transfers
of accounts receivable and related assets of the type specified in the
definition of “Qualified Receivables Transaction” (or a fractional undivided
interest therein) by a Receivables Entity in a Qualified Receivables
Transaction;

(j)        leases
or subleases to third persons not interfering in any material respect with the
business of the Company or any of its Restricted Subsidiaries; and

(k)       the
surrender or waiver of contract rights or the settlement, release or surrender
of contract, tort or other claims of any kind.

“Banc of America” means Banc of America Bridge LLC
(f/k/a NationsBridge, L.L.C.).

“Bankruptcy Law” means Title 11 of the United States
Code entitled “Bankruptcy,” as now and hereafter in effect, or any successor
statute or any other United States federal, state or local law or the law of
any other jurisdiction relating to bankruptcy, insolvency, winding up,
liquidation, reorganization or relief of debtors, whether in effect on the date
hereof or hereafter.

“Bankruptcy Order” means any court order made in a
proceeding pursuant to or within the meaning of any Bankruptcy Law, containing
an adjudication of bankruptcy or insolvency, or providing for liquidation,
winding up, dissolution or reorganization, or appointing a custodian of a
debtor or of all or any substantial part of a debtor’s property, or

 3
 

providing for the staying, arrangement, adjustment or composition of
indebtedness or other relief of a debtor.

“Board of Directors” means, as to any Person, the
board of directors of such Person or any duly authorized committee thereof.

“Board Resolution” means, with respect to any Person,
a copy of a resolution certified by the Secretary or an Assistant Secretary of
such Person to have been duly adopted by the Board of Directors of such Person
and to be in full force and effect on the date of such certification, and
delivered to the Trustee.

“Business Day” means any day excluding Saturday,
Sunday and any day which is a legal holiday under the laws of New York, New
York or is a day on which banking institutions therein located are authorized
or required by law or other governmental action to close.

“Capital Stock” means:

(1)                   with
respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of Common Stock and Preferred
Stock of such Person; and

(2)                   with
respect to any Person that is not a corporation, any and all partnership,
membership or other equity interests of such Person.

“Capitalized Lease Obligation” means, as to any
Person, the obligations of such Person under a lease that are required to be classified
and accounted for as capital lease obligations under GAAP and, for purposes of
this definition, the amount of such obligations at any date shall be the
capitalized amount of such obligations at such date, determined in accordance
with GAAP.

“Cash Equivalents” means:

(1)                   marketable
direct obligations issued by, or unconditionally guaranteed by, the United
States Government or any member state of the European Union or issued by any
agency thereof and backed by the full faith and credit of the United States or
any member state of the European Union, in each case maturing within one year
from the date of acquisition thereof;

(2)                   marketable
direct obligations issued by any state of the United States of America or any
member state of the European Union or any political subdivision of

 4
 

any such state or any public instrumentality thereof maturing within
one year from the date of acquisition thereof and, at the time of acquisition,
having one of the two highest ratings obtainable from either Standard & Poor’s
Ratings Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”);

(3)                   commercial
paper maturing no more than one year from the date of creation thereof and, at
the time of acquisition, having a rating of at least A-1 from S&P or at
least P-1 from Moody’s;

(4)                   time
deposits, certificates of deposit or bankers’ acceptances (or with respect to
foreign banks, similar instruments) maturing within one year from the date of
acquisition thereof issued by any bank organized under the laws of the United
States of America or any state thereof or the District of Columbia or any
member state of the European Union or any U.S. branch of a foreign bank having
at the date of acquisition thereof combined capital and surplus of not less
than $200.0 million;

(5)                   certificates
of deposit or bankers’ acceptances or similar instruments maturing within one
year from the date of acquisition thereof issued by any foreign bank that is a
lender under the Senior Credit Facility having at the date of acquisition
thereof combined capital and surplus of not less than $500.0 million;

(6)                   repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clause (1) or (2) above entered into with any bank
meeting the qualifications specified in clause (4) above;

(7)                   demand
deposit accounts maintained in the ordinary course of business; and

(8)                   investments
in money market funds which invest substantially all their assets in securities
of the types described in clauses (1) through (7) above;

provided, that for purposes of Articles X and XII,
the term “Cash Equivalents” shall not include the Cash Equivalents referred to
in clause (6) above.

“Change of Control” means the occurrence of one or
more of the following events:

(1)                   any
sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all of the assets of the Company
to any Person or group of related Persons for purposes of Section 13(d) of the
Exchange Act (a “Group”), together with any Affiliates thereof (other than one
or more Permitted Holders);

 5
 

(2)                   the
approval by the holders of Capital Stock of the Company of any plan or proposal
for the liquidation or dissolution of the Company;

(3)                   any
Person or Group (other than one or more Permitted Holders) shall become the
beneficial owner (as defined in Rules 13d-3 and 13d-5 or any successor rule or
regulation promulgated under the Exchange Act), directly or indirectly, of
shares representing more than 25% of the aggregate ordinary voting power
represented by the issued and outstanding Capital Stock of Vertis Holdings or
the Company, unless at such time the Equity Investors beneficially own,
directly or indirectly, in the aggregate, shares representing not less than a
majority of the voting power represented by the issued and outstanding Capital
Stock of the Company; or

(4)                   the
first day on which a majority of the Board of Directors of the Company are not
Continuing Directors.

“Change of Control Offer” has the meaning ascribed to such
term in Section 4.15.

“Change of Control Payment Date” has the meaning
ascribed to such term in Section 4.15.

“Common Stock” of any Person means any and all shares,
interests or other participations in, and other equivalents (however designated
and whether voting or non-voting) of such Person’s common stock, whether
outstanding on the Issue Date or issued after the Issue Date, and includes,
without limitation, all series and classes of such common stock.

“Company” means the party named as such in this Indenture
until a successor replaces it in accordance with the provisions of this
Indenture and, thereafter, means the successor.

“Consolidated EBITDA” means, with respect to any
Person, for any period, the sum (without duplication) of:

(1)                   Consolidated
Net Income; and

(2)                   to
the extent Consolidated Net Income has been reduced thereby:

(a) all income taxes of such Person and its Restricted
Subsidiaries paid or accrued in accordance with GAAP for such period (other
than income taxes attributable to extraordinary, unusual or nonrecurring gains
or losses or taxes attributable to sales or dispositions outside the ordinary
course of business);

 6
 

(b) Consolidated Interest Expense;

(c) Consolidated Non-cash Charges;

(d) the amount of any restructuring reserve or charge
recorded during such period in accordance with GAAP;

(e) any fees permitted pursuant to clause (b)(10) of
Section 4.13;

(f)  amounts paid as a spread payment in
connection with a cashless exercise of options by a director or employee of
Vertis Holdings or any of its Restricted Subsidiaries (i.e.,a payment equal to the spread of
the then fair market value of Vertis Holdings’ Common Stock which may be
purchased with such options over the aggregate exercise price of such options);
and

(g) less, without duplication, non-cash items
increasing Consolidated Net Income of such Person and its Restricted
Subsidiaries for such period in each case determined in accordance with GAAP.

“Consolidated Fixed Charge Coverage Ratio” means, with
respect to any Person, the ratio of Consolidated EBITDA of such Person during
the four full fiscal quarters (the “Four Quarter Period”) ending on or prior to
the date of the transaction giving rise to the need to calculate the
Consolidated Fixed Charge Coverage Ratio for which financial statements are
available (the “Transaction Date”) to Consolidated Fixed Charges of such Person
for the Four Quarter Period. In addition to and without limitation of the
foregoing, for purposes of this definition, “Consolidated EBITDA” and “Consolidated
Fixed Charges” shall be calculated after giving effect on a pro  forma
basis for the period of such calculation to:

(1)                   the
incurrence or repayment of any Indebtedness of such Person or any of its
Restricted Subsidiaries (and the application of the proceeds thereof) giving
rise to the need to make such calculation and any incurrence or repayment of
other Indebtedness (and the application of the proceeds thereof), other than
the incurrence or repayment of Indebtedness in the ordinary course of business
for working capital purposes pursuant to working capital facilities, occurring
during the Four Quarter Period or at any time subsequent to the last day of the
Four Quarter Period and on or prior to the Transaction Date, as if such
incurrence or repayment, as the case may be (and the application of the
proceeds thereof), occurred on the first day of the Four Quarter Period;

(2)                   any
asset sales or other dispositions or Asset Acquisitions (including, without
limitation, any Asset Acquisition giving rise to the need to make such
calculation as a result of such Person or one of its Restricted Subsidiaries
(including

 7
 

any Person who becomes a Restricted Subsidiary as a result of the Asset
Acquisition) incurring, assuming or otherwise being liable for Acquired Indebtedness
and also including any Consolidated EBITDA (including pro forma expense
and cost reductions calculated on a basis consistent with Regulation S-X under
the Exchange Act) attributable to the assets which are the subject of the Asset
Acquisition or Asset Sale during the Four Quarter Period) occurring during the
Four Quarter Period or at any time subsequent to the last day of the Four
Quarter Period and on or prior to the Transaction Date, as if such asset sale
or Asset Acquisition (including the incurrence, assumption or liability for any
such Indebtedness or Acquired Indebtedness) occurred on the first day of the
Four Quarter Period; and

(3)                   any
asset sales or asset acquisitions (including any Consolidated EBITDA (including
pro forma expense and cost reductions calculated on a basis consistent
with Regulation S-X under the Exchange Act) attributable to the assets which
are the subject of the Asset Acquisition or asset sale during the Four Quarter
Period) that have been made by any Person that has become a Restricted
Subsidiary of the Company or has been merged with or into the Company or any
Restricted Subsidiary of the Company during the Four Quarter Period or at any
time subsequent to the last day of the Four Quarter Period and on or prior to
the Transaction Date that would have constituted asset sales or Asset
Acquisitions had such transactions occurred when such Person was a Restricted
Subsidiary of the Company or subsequent to such Person’s merger into the
Company, as if such asset sale or Asset Acquisition (including the incurrence,
assumption or liability for any Indebtedness or Acquired Indebtedness in
connection therewith) occurred on the first day of the Four Quarter Period;

provided that to the extent that clause (2) or (3) of
this sentence requires that pro  forma effect be given to an asset
sale or Asset Acquisition, such pro  forma calculation shall be
based upon the four full fiscal quarters immediately preceding the Transaction
Date of the Person, or division or line of business of the Person, that is
acquired or disposed of for which financial information is available. If such
Person or any of its Restricted Subsidiaries directly or indirectly guarantees
Indebtedness of a third Person, the preceding sentence shall give effect to the
incurrence of such guaranteed Indebtedness as if such Person or any Restricted
Subsidiary of such Person had directly incurred or otherwise assumed such
guaranteed Indebtedness.

Furthermore, in calculating “Consolidated Fixed
Charges” for purposes of this “Consolidated Fixed Charge Coverage Ratio”
interest on Indebtedness determined on a fluctuating basis, to the extent such
interest is covered by agreements relating to Interest Swap Obligations, shall
be deemed to accrue at the rate per annum resulting after giving effect to the
operation of such agreements.

 8
 

“Consolidated Fixed Charges” means, with respect to
any Person for any period, the sum, without duplication, of:

(1)                   Consolidated
Interest Expense; plus

(2)                   the
product of (x) the amount of all dividend payments on any series of Preferred
Stock of such Person and its Restricted Subsidiaries (other than dividends paid
in Qualified Capital Stock and dividends paid on Preferred Stock of
Unrestricted Subsidiaries) paid, accrued or scheduled to be paid or accrued during
such period times (y) a fraction, the numerator of which is one and the
denominator of which is one minus the then current effective consolidated
federal, state and local tax rate of such Person, expressed as a decimal;
provided that to the extent that such dividend payments are tax deductible,
then this clause (2) shall equal the amount set forth in clause (x) hereof
without giving effect to clause (y) hereof.

“Consolidated Interest Expense” means, with respect to
any Person for any period, the sum of, without duplication:

(1)                   the
aggregate of all cash and non-cash interest expense with respect to all
outstanding Indebtedness of such Person and its Restricted Subsidiaries,
including the net costs associated with Interest Swap Obligations for such
period determined on a consolidated basis in conformity with GAAP but excluding
amortization or original issued discount and amortization of any deferred
financing costs; and

(2)                   the
interest component of Capitalized Lease Obligations paid, accrued and/or scheduled
to be paid or accrued by such Person and its Restricted Subsidiaries during
such period as determined on a consolidated basis in accordance with GAAP.

“Consolidated Net Income” of the Company means, for
any period, the aggregate net income (or loss) of the Company and its
Restricted Subsidiaries for such period on a consolidated basis, determined in
accordance with GAAP; provided that there shall be excluded therefrom:

(1)                   gains
and losses from Asset Sales (without regard to the $2.5 million limitation set
forth in the definition thereof) or abandonments or reserves relating thereto
and the related tax effects according to GAAP;

(2)                   gains
and losses due solely to fluctuations in currency values and the related tax
effects according to GAAP;

(3)                   extraordinary,
unusual or nonrecurring gains, losses, income or expense, and the related tax
effects;

 9
 

(4)                   the
net income (or loss) of any Person acquired in a “pooling of interests”
transaction accrued prior to the date it becomes a Restricted Subsidiary of the
Company or is merged or consolidated with the Company or any Restricted
Subsidiary of the Company;

(5)                   the
net income of any Restricted Subsidiary of the Company to the extent that the
declaration of dividends or similar distributions by that Restricted Subsidiary
of that income is restricted by a contract, operation of law or otherwise;

(6)                   the
net loss of any Person other than a Restricted Subsidiary of the Company;

(7)                   the
net income of any Person, other than a Restricted Subsidiary of the Company,
except to the extent of cash dividends or distributions paid to the Company or
to a Restricted Subsidiary of the Company by such Person unless, in the case of
a Restricted Subsidiary of the Company that receives such dividends or
distributions, such Restricted Subsidiary is subject to clause (5) above;

(8)                   (A)
all non-cash charges (provided that any cash payments actually made with
respect to the liabilities for which such cash charges were created shall be
deducted from Consolidated Net Income in the period when made) and (B) all
deferred financing costs written off in connection with the early
extinguishment of any Indebtedness, in each case incurred by the Company or any
of its Restricted Subsidiaries in connection with the recapitalization of
Vertis Holdings in December 1999 and the related financing transactions;

(9)                   non-cash
compensation charges, including any arising from existing stock options
resulting from any merger or recapitalization transition; and

(10)                 the
cumulative effect of a change in accounting principle.

“Consolidated Non-cash Charges” means, with respect to
any Person, for any period, the aggregate depreciation, amortization and other
non-cash expenses of such Person and its Restricted Subsidiaries reducing
Consolidated Net Income of such Person and its Restricted Subsidiaries for such
period, determined on a consolidated basis in accordance with GAAP (excluding
any such charges constituting an extraordinary item or loss or any such charge
which requires an accrual of or a reserve for cash charges for any future
period).

“Continuing Directors” means, as of any date of
determination, any member of the Board of Directors of the Company who:

(1)                   was
a member of such Board of Directors on the Issue Date;

 10
 

(2)                   was
nominated for election or elected to such Board of Directors with, or whose
election to such Board of Directors was approved by, the affirmative vote of a
majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election; or

(3)                   is
any designee of a Permitted Holder or was nominated by a Permitted Holder or
any designees of a Permitted Holder on the Board of Directors.

“Corporate Trust Office” means the principal office of
the Trustee at which at any time its corporate trust business shall be
administered, which office at the date hereof is located at 101 Barclay Street,
New York, New York 10286, Attention: Corporate Trust Administration, or such
other address as the Trustee may designate from time to time by notice to the Holders
and the Company, or the principal corporate trust office of any successor
Trustee (or such other address as such successor Trustee may designate from
time to time by notice to the Holders and the Company).

“Covenant Defeasance” has the meaning provided in
Section 8.2.

“Currency Agreement” means any foreign exchange
contract, currency swap agreement or other similar agreement or arrangement
designed to protect the Company or any Restricted Subsidiary of the Company
against fluctuations in currency values.

“Custodian” means any receiver, interim receiver,
receiver and manager, trustee, assignee, liquidator, sequestrator or similar
official charged with maintaining possession or control over property for one
or more creditors, whether under any Bankruptcy Law or otherwise.

“Default” means an event or condition the occurrence
of which is, or with the lapse of time or the giving of notice or both would
be, an Event of Default.

“Depository” means The Depository Trust Company, its
nominees and successors.

“Designated Senior Debt” means (1) Indebtedness under
or in respect of the Senior Credit Facility and (2) any other Indebtedness
constituting Senior Debt which, at the time of determination, has an aggregate
principal amount outstanding of, or under which, at the date of determination,
the holders thereof are committed to lend up to, at least $25.0 million and is
specifically designated in the instrument evidencing such Senior Debt as “Designated
Senior Debt” by the Company.

“Deutsche Bank” means Deutsche Bank Trust Company
Americas (f/k/a Bankers Trust Company).

 11
 

“Disqualified Capital Stock” means that portion of any
Capital Stock which, by its terms (or by the terms of any security into which
it is convertible or for which it is exchangeable at the option of the holder
thereof), or upon the happening of any event (other than an event which would
constitute a Change of Control), matures (excluding any maturity as the result
of an optional redemption by the issuer thereof) or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or is redeemable at the
sole option of the holder thereof (except, in each case, upon the occurrence of
a Change of Control) on or prior to the final maturity date of the Notes.

“Dollars” or the sign “$” means the lawful money of
the United States of America.

“Domestic Restricted Subsidiary” means a Restricted
Subsidiary incorporated or otherwise organized or existing under the laws of
the United States, any state thereof or any territory or possession of the United
States.

“ ECP” shall mean Evercore Capital Partners L.P., a
Delaware limited partnership.

“ECP Affiliates” shall mean any Affiliate of ECP.

“ECP Investors” shall mean ECP, Evercore Capital
Partners (NQ) L.P. and EBF Group L.L.C., or any limited or general partner,
stockholder, officer or employee of such ECP Investor.

“Equity Investors” shall mean THL, THL Investors, ECP,
ECP Investors and their respective Affiliates, taken as a whole.

“Event of Default” means each of the events set forth
in Section 6.1.

“Exchange Act” means the Securities Exchange Act of
1934, as amended, or any successor statute or statutes thereto.

“fair market value” means, with respect to any asset
or property, the price which could be negotiated in an arm’s-length, free
market transaction, for cash, between a willing seller and a willing and able
buyer, neither of whom is under undue pressure or compulsion to complete the
transaction. Fair market value shall be determined by the Board of Directors of
the Company acting reasonably and in good faith and shall be evidenced by a
Board Resolution of the Board of Directors of the Company delivered to the
Trustee.

“Funding Guarantor” has the meaning ascribed to it in
Section 11.7.

 12
 

“GAAP” means generally accepted accounting principles
set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, which are in effect as of the
Issue Date.

“Global Security” has the meaning provided in Section
2.2.

“Guarantee Obligations” shall mean, as to any
Guarantor, all obligations of every nature of such Guarantor from time to time
owing to the Holders and the Trustee under this Indenture and the Notes
(including its Guarantee), whether for principal, reimbursements, interest,
premium, fees, penalties, expenses, indemnities, damages or otherwise.

“Guarantees” means, collectively, the guarantees of
the Notes by the Guarantors pursuant to Article XI which are evidenced by
notations of guarantee substantially in the form of Exhibit E.

“Guarantor” means (1) each of the Company’s Domestic
Restricted Subsidiaries that is a guarantor under the Senior Credit Facility on
the Issue Date and (2) each of the Company’s Domestic Restricted Subsidiaries
that in the future executes a supplemental indenture in which such Domestic
Restricted Subsidiary agrees to be bound by the terms of this Indenture as a
Guarantor; provided that any Person constituting a Guarantor as
described above shall cease to constitute a Guarantor when its respective
Guarantee is released in accordance with the terms of this Indenture.

“Guarantor Senior Debt” means, with respect to any
Guarantor: the principal of, premium, if any, and interest (including any
interest accruing subsequent to the filing of a petition of bankruptcy at the
rate provided for in the documentation with respect thereto, whether or not
such interest is an allowed claim under applicable law) on any Indebtedness of
a Guarantor, whether outstanding on the Issue Date or thereafter created,
incurred or assumed, unless, in the case of any particular Indebtedness, the
instrument creating or evidencing the same or pursuant to which the same is
outstanding expressly provides that such Indebtedness shall not be senior in
right of payment to the Guarantee of such Guarantor. Without limiting the
generality of the foregoing, “Guarantor Senior Debt” shall also include the
principal of, premium, if any, interest (including any interest accruing
subsequent to the filing of a petition of bankruptcy at the rate provided for
in the documentation with respect thereto, whether or not such interest is an
allowed claim under applicable law) on, and all other amounts owing in respect
of:

(x)  all monetary obligations of every
nature of such Guarantor under, or with respect to, the Senior Credit Facility
and the A/R  Facility, including, without

 13
 

limitation, obligations to pay principal and interest, reimbursement
obligations under letters of credit, fees, expenses and indemnities (and
guarantees thereof);

(y)       all
Interest Swap Obligations of such Guarantor (and guarantees thereof by such
Guarantor); and

(z)        all
obligations of such Guarantor (and guarantees thereof by such Guarantor) under
Currency Agreements;

in each case whether outstanding on the Issue Date or thereafter
incurred.

Notwithstanding the foregoing, “Guarantor Senior Debt”
shall not include:

(1)                   any
Indebtedness of such Guarantor to a Subsidiary of the Company;

(2)                   Indebtedness
to, or guaranteed on behalf of, any shareholder, director, officer or employee
of such Guarantor or any Subsidiary of such Guarantor (including, without
limitation, amounts owed for compensation) other than a shareholder who is also
a lender (or an Affiliate of a lender) under the Senior Credit Facility;

(3)                   Indebtedness
to trade creditors and other amounts incurred in connection with obtaining
goods, materials or services;

(4)                   Indebtedness
represented by Disqualified Capital Stock;

(5)                   any
liability for federal, state, local or other taxes owed or owing by such
Guarantor;

(6)                   that
portion of any Indebtedness incurred in violation of Section 4.9 (but, as to
any such obligation, no such violation shall be deemed to exist for purposes of
this clause (6) if the holder(s) of such obligation or their representative
shall have received an officers’ certificate of the Company to the effect that
the incurrence of such Indebtedness does not (or, in the case of revolving
credit indebtedness, that the incurrence of the entire committed amount thereof
at the date on which the initial borrowing thereunder is made would not)
violate Section 4.9); provided that the foregoing shall not apply to any
incurrence under the Senior Credit Facility pursuant to clause (2) of the
definition of “Permitted Indebtedness” which incurrence was in violation of
such clause (2) solely as a result of the increase in Attributed Receivables
Facility Indebtedness (as defined in the Senior Credit Facility as in effect on
June 24, 2002) and the lenders under the Senior Credit Facility extended such
additional amounts in good faith without knowledge of such increase;

 14
 

(7)                   Indebtedness
which, when incurred and without respect to any election under Section 1111(b)
of Title 11, United States Code, is without recourse to such Guarantor; and

(8)                   any
Indebtedness which is, by its express terms, subordinated or junior in right of
payment to any other Indebtedness of such Guarantor.

“Guarantor Senior Debt Obligations” means all
obligations of any Guarantor for principal, premium, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Guarantor Senior Debt, and all guarantees by
such Guarantor of any of the foregoing.

“Holder” or “Securityholder” means a Person in whose
name a Note is registered. The Holder of a Note will be treated as the owner of
such Note for all purposes.

“Incur” means, with respect to any Indebtedness or
other obligation of any Person, to create, issue, incur (by conversion,
exchange or otherwise), assume, guarantee or otherwise become liable in respect
of such Indebtedness or other obligation or the recording, as required pursuant
to GAAP or otherwise, of any such Indebtedness or other obligation on the
balance sheet of such Person (and “Incurrence,” “Incurred,” “Incurrable” and “Incurring”
shall have meanings correlative to the foregoing); provided that any
amendment, modification or waiver of any document pursuant to which
Indebtedness was previously Incurred shall only be deemed to be an Incurrence
of Indebtedness if and to the extent such amendment, modification or waiver (i)
increases the principal thereof or interest rate or premium payable thereon or
(ii) changes to an earlier date the stated maturity thereof or the date of any
scheduled or required principal payment thereon or the time or circumstances
under which such Indebtedness shall be redeemed; provided, further,
that any Indebtedness of a Person existing at the time such Person becomes a
Restricted Subsidiary of the Company (whether by merger, consolidation,
acquisition or otherwise) shall be deemed to be Incurred by such Restricted
Subsidiary at the time it becomes a Restricted Subsidiary of the Company.

“Indebtedness” means with respect to any Person,
without duplication:

(1)                   all
Obligations of such Person for borrowed money;

(2)                   all
Obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments;

(3)                   all
Capitalized Lease Obligations of such Person;

(4)                   all
Obligations of such Person issued or assumed as the deferred purchase price of
property, all conditional sale obligations and all Obligations under

 15

any title retention agreement (but excluding trade accounts payable and
other accrued liabilities arising in the ordinary course of business);

(5)                   all
Obligations for the reimbursement of any obligor on any letter of credit,
banker’s acceptance or similar credit transaction;

(6)                   guarantees
and other contingent obligations in respect of Indebtedness referred to in
clauses (1) through (5) above and clause (8) below;

(7)                   all
Obligations of any other Person of the type referred to in clauses (1) through
(6) which are secured by any lien on any property or asset of such Person, but
which Obligations are not assumed by such Person, the amount of such Obligation
being deemed to be the lesser of the fair market value of such property or
asset or the amount of the Obligation so secured;

(8)                   all
Obligations under currency agreements and interest swap agreements of such
Person; and

(9)                   all
Disqualified Capital Stock issued by such Person with the amount of
Indebtedness represented by such Disqualified Capital Stock being equal to the
greater of its voluntary or involuntary liquidation preference and its maximum
fixed repurchase price, but excluding accrued dividends, if any.

For purposes hereof, (x) the “maximum fixed repurchase
price” of any Disqualified Capital Stock which does not have a fixed repurchase
price shall be calculated in accordance with the terms of such Disqualified
Capital Stock as if such Disqualified Capital Stock were purchased on any date
on which Indebtedness shall be required to be determined pursuant to this
Indenture, and if such price is based upon, or measured by, the fair market
value of such Disqualified Capital Stock, such fair market value shall be
determined reasonably and in good faith by the Board of Directors of the issuer
of such Disqualified Capital Stock and (y) any transfer of accounts receivable
or other assets which constitutes a sale for purposes of GAAP shall not
constitute Indebtedness hereunder. Accrual of interest, accretion or
amortization of original issue discount and the payment of any interest on any
Indebtedness in the form of additional Indebtedness with the same terms will
not be deemed to be an incurrence of Indebtedness for the purposes of Section
4.9.

“Indenture” means this Indenture as amended or
supplemented from time to time pursuant to the terms hereof.

“Institutional Accredited Investor” means an
institution that is an “accredited investor” as that term is defined in Rule
501(a)(l), (2), (3) or (7) under the Securities Act.

 16
 

“Intercompany Indebtedness” means any Indebtedness of
the Company or any Guarantor or Wholly Owned Restricted Subsidiary of the
Company that is not a Guarantor which, in the case of the Company, is owing to
any Guarantor or Wholly Owned Restricted Subsidiary of the Company that is not
a Guarantor and which, in the case of any such Subsidiary, is owing to the
Company or any Guarantor or Wholly Owned Restricted Subsidiary of the Company
that is not a Guarantor; provided that if as of any date any Person
other than the Company or a Guarantor or a Wholly Owned Restricted Subsidiary
of the Company that is not a Guarantor, a lender under the Senior Credit
Facility or a creditor under any interest rate protection or other hedging
agreement (or any collateral agent acting on behalf of such lenders and/or
creditors) owns or holds such Indebtedness, or holds any Lien in respect
thereof (other than a Lien in favor of the Holders, the lenders under the
Senior Credit Facility, the creditors under any interest rate protection or
other hedging agreement or any collateral agent for such lenders and/or
creditors), such Indebtedness shall no longer be Intercompany Indebtedness.

“interest,” when used with respect to any Note, means
the amount of all interest accruing on such Note, including all interest
accruing subsequent to the occurrence of any events specified in Sections
6.l(f) and 6.1(g) or which would have accrued but for any such event.

“Interest Payment Date,” when used with respect to any
Note, means the stated maturity of an installment of interest specified in such
Note.

“Interest Swap Obligations” means the obligations of
any Person, pursuant to any arrangement with any other Person, whereby,
directly or indirectly, such Person is entitled to receive from time to time
periodic payments calculated by applying either a floating or a fixed rate of
interest on a stated notional amount in exchange for periodic payments made by
such other Person calculated by applying a fixed or a floating rate of interest
on the same notional amount.

“Investment” by any Person in any other Person means,
with respect to any Person, any direct or indirect loan or other extension of
credit (including, without limitation, a guarantee) or capital contribution to
(by means of any transfer of cash or other property to others or any payment
for property or services for the account or use of others), or any purchase or
acquisition by such Person of any Capital Stock, bonds, notes, debentures or
other securities or evidences of Indebtedness issued by, such other Person. “Investment”
shall exclude extensions of trade credit by the Company and its Restricted
Subsidiaries on commercially reasonable terms in accordance with normal trade
practices of the Company or such Restricted Subsidiary, as the case may be. For
the purposes of Section 4.8:

(1)                   the
Company shall be deemed to have made an “Investment” equal to the fair market
value of the net assets of any Restricted Subsidiary at the time that such

 17
 

Restricted Subsidiary is designated an Unrestricted Subsidiary and the
aggregate amount of Investments made subsequent to the Issue Date shall exclude
(to the extent the designation as an Unrestricted Subsidiary was included as a
Restricted Payment) the fair market value of the net assets of any Unrestricted
Subsidiary at the time that such Unrestricted Subsidiary is designated a
Restricted Subsidiary, not to exceed the amount of the Investment deemed made
at the date of designation thereof as an Unrestricted Subsidiary; and

(2)                   the
amount of any Investment shall be the original cost of such Investment plus the
cost of all additional Investments by the Company or any of its Restricted
Subsidiaries, without any adjustments for increases or decreases in value, or
write-ups, write-downs or write-offs with respect to such Investment, reduced
by the payment of dividends or distributions (including tax sharing payments)
in connection with such Investment or any other amounts received in respect of
such Investment; provided that no such payment of dividends or
distributions or receipt of any such other amounts shall reduce the amount of
any Investment if such payment of dividends or distributions or receipt of any
such amounts would be included in Consolidated Net Income. If the Company or
any Restricted Subsidiary of the Company sells or otherwise disposes of any
Common Stock of any direct or indirect Restricted Subsidiary of the Company
such that, after giving effect to any such sale or disposition, the Company no
longer owns, directly or indirectly, more than 50% of the outstanding Common
Stock of such Restricted Subsidiary, the Company shall be deemed to have made
an Investment on the date of any such sale or disposition equal to the fair
market value of the Common Stock of such Restricted Subsidiary not sold or
disposed of.

“Issue Date” means February 28, 2003.

“JP Morgan” means JP Morgan Chase Bank (f/k/a The
Chase Manhattan Bank).

“Laws” means all applicable statutes, laws,
ordinances, regulations, rules, orders, judgments, writs, injunctions or
decrees of any state, commonwealth, nation, territory, possession or province,
or Tribunal, and “Law” means each of the foregoing.

“Legal Defeasance” has the meaning provided in Section
8.2.

“Legal Holiday” means any day other than a Business
Day.

“Lien” means any lien, mortgage, deed of trust,
pledge, security interest, charge or encumbrance of any kind (including any
conditional sale or other title retention agreement, any lease in the nature
thereof and any agreement to give any security interest).

 18
 

“Maturity Date” means, when used with respect to any
Note, the date specified in such Note as the fixed date on which the final
installment of principal of such Note is due and payable (in the absence of any
acceleration thereof pursuant to Section 6.2 or any Net Proceeds Offer or
Change of Control Offer).

“Net Cash Proceeds” means, with respect to any Asset
Sale, the proceeds in the form of cash or Cash Equivalents including payments
in respect of deferred payment obligations when received in the form of cash or
Cash Equivalents (other than the portion of any such deferred payment
constituting interest) received by the Company or any of its Restricted
Subsidiaries from such Asset Sale net of:

(1)                   out-of-pocket
expenses and fees relating to such Asset Sale (including, without limitation,
legal, accounting and investment banking fees and sales commissions);

(2)                   taxes
paid or payable after taking into account any reduction in consolidated tax
liability due to available tax credits or deductions and any tax sharing
arrangements;

(3)                   any
repayment of debt under the Senior Subordinated Credit Agreement to the extent
such repayment is required thereunder;

(4)                   any
relocation expenses and severance, pension and shutdown costs incurred as a
result thereof;

(5)                   the
repayment of Indebtedness that is secured by a Lien on the Property or assets
that are subject of such Asset Sale and such Lien is permitted by this
Indenture; and

(6)                   any
portion of cash proceeds which the Company determines in good faith should be
reserved for post-closing adjustments, it being understood and agreed that on
the day that all such post-closing adjustments have been determined, the amount
(if any) by which the reserved amount in respect of such Asset Sale exceeds the
actual post-closing adjustments payable by the Company or any of its Subsidiaries
shall constitute Net Cash Proceeds on such date; provided that, in the
case of the sale by the Company of an asset constituting an Investment made
after the Issue Date (other than a Permitted Investment), the “Net Cash
Proceeds” in respect of such Asset Sale shall not include the lesser of (x) the
cash received with respect to such Asset Sale and (y) the initial amount of
such Investment, less, in the case of clause (y), all amounts (up to an amount
not to exceed the initial amount of such Investment) received by the Company
with respect to such Investment, whether by dividend, sale, liquidation or
repayment, in each case prior to the date of such Asset Sale.

 19
 

“Net Proceeds Offer” shall have the meaning ascribed
to such term in Section 4.12(a).

“Net Proceeds Offer Amount” shall have the meaning
ascribed to such term in Section 4.12(a).

“Net Proceeds Offer Payment Date” shall have the
meaning ascribed to such term in Section 4.12(a).

“Net Proceeds Offer Trigger Date” shall have the
meaning ascribed to such term in Section 4.12(a).

“Non-payment Default” shall have the meaning ascribed
to such term in Section 10.2(b).

“Non-U.S. Person” means a Person who is not a U.S.
Person, as defined in Regulation S.

“Notes” means the Series A  Notes and Series B
Notes as amended or supplemented from time to time in accordance with the terms
hereof that are issued pursuant to this Indenture.

“Obligations” means all obligations for (a) principal,
premium, interest (including any interest accruing subsequent to the filing of
a petition of bankruptcy at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable law), penalties, fees, and (b) to the extent liquidated and
quantifiable at the time of determination, indemnifications, reimbursements,
damages and other liabilities payable under the documentation governing any
Indebtedness.

“Officer” means the Chairman of the Board, the
President, any Vice President, the Chief Financial Officer, the Controller, the
Treasurer, the Secretary or Assistant Secretary.

“Officers’ Certificate” means, as applied to any
corporation, a certificate executed on behalf of such corporation by an
Officer.

“Offshore Physical Securities” has the meaning
provided in Section 2.2.

“Opinion of Counsel” means a written opinion from
legal counsel who is reasonably acceptable to the Trustee, which may include
outside or in-house counsel to the Company.

“Paying Agent” has the meaning provided in Section
2.3.

 20
 

“Payment Blockage Notice” has the meaning ascribed to
such term in Section 10.2(b).

“Payment Blockage Period” has the meaning provided in
Section 10.2(b).

“Payment Default” shall have the meaning ascribed to
such term in Section 10.2(a).

“Payment Restriction” has the meaning ascribed to such
term in Section 4.10.

“Permitted Holders” shall mean and include (i) THL,
THL Affiliates and THL Investors and (ii) ECP, ECP Affiliates and ECP
Investors.

“Permitted Indebtedness” means, without duplication,
each of the following:

(1)                   Indebtedness
under the Notes and this Indenture and under the Senior Subordinated Credit
Agreement (including the guarantees made thereunder) in an aggregate principal
amount not to exceed $293.5 million;

(2)                   Indebtedness
incurred pursuant to the Senior Credit Facility (including but not limited to
Indebtedness in respect of letters of credit or bankers’ acceptances issued or
created thereunder) (including the guarantees made thereunder) in a maximum
principal amount not to exceed in the aggregate the amount equal to $670 million
less (x) the amount of any proceeds from any incurrence by the Company or any
of its Restricted Subsidiaries of Attributed Receivables Facility Indebtedness
(as defined in the Senior Credit Facility as in effect on June 24, 2002)
pursuant to the A/R Facility in excess of $150.0 million and (y) the amount of
all mandatory repayments of term loans actually made under, and permanent
commitment reductions actually made in the revolving credit portion of, the
Senior Credit Facility with Net Cash Proceeds of Asset Sales applied thereto as
required by Section 4.12;

(3)                   other
Indebtedness of the Company and its Restricted Subsidiaries outstanding on the
Issue Date reduced by the amount of any scheduled amortization payments or
mandatory prepayments when actually paid or permanent reductions thereon;

(4)                   Interest
Swap Obligations of the Company or any Restricted Subsidiary of the Company
covering Indebtedness of the Company or any of its Restricted Subsidiaries;
provided that any Indebtedness to which any such Interest Swap Obligations
correspond is otherwise permitted to be incurred under this Indenture;

 21
 

(5)                   Indebtedness
of the Company or any of its Restricted Subsidiaries under (i) Currency
Agreements entered into, in the judgment of the Company, to protect the Company
or such Restricted Subsidiary from foreign currency exchange rates and (ii) Raw
Material Hedge Agreements;

(6)                   Intercompany
Indebtedness of the Company or any of its Restricted Subsidiaries;

(7)                   Acquired
Indebtedness of any Restricted Subsidiary of the Company that is not a
Guarantor to the extent the Company could have incurred such Indebtedness in
accordance with the Consolidated Fixed Charge Coverage Ratio of Section 4.9 on
the date such Indebtedness became Acquired Indebtedness; provided that
such Acquired Indebtedness was not incurred in connection with, or in
anticipation or contemplation of, such Person becoming a Restricted Subsidiary
of the Company; provided, further, that the aggregate amount of
Indebtedness (including refinancings thereof) pursuant to this clause (7) and
clause (10) shall not exceed $40.0 million in the aggregate;

(8)                   Indebtedness
arising from the honoring by a bank or other financial institution of a check,
draft or similar instrument inadvertently drawn against insufficient funds in
the ordinary course of business;

(9)                   any
refinancing, modification, replacement, renewal, restatement, refunding,
deferral, extension, substitution, supplement, reissuance or resale of existing
or future Indebtedness (other than pursuant to clauses (2), (4), (5), (6), (7),
(8), (l0), (11), (12), (13), (14) and (15) of this definition), including any
additional Indebtedness incurred to pay interest or premiums required by the
instruments governing such existing or future Indebtedness as in effect at the
time of issuance thereof or other premiums to the extent the Company reasonably
determines that such premiums are necessary to effect the refinancing (“Required
Premiums”) and fees in connection therewith; provided that any such
event shall not (1) result in an increase in the aggregate principal amount of
Permitted Indebtedness (except to the extent such increase is a result of a
simultaneous incurrence of additional Indebtedness (A) to pay Required Premiums
and related fees or (B) otherwise permitted to be incurred under this
Indenture) of the Company and its Restricted Subsidiaries and (2) create
Indebtedness with a Weighted Average Life to Maturity at the time such
Indebtedness is incurred that is less than the Weighted Average Life to Maturity
at such time of the Indebtedness being refinanced, modified, replaced, renewed,
restated, refunded, deferred, extended, substituted, supplemented, reissued or
resold; provided that no Restricted Subsidiary of the Company may
refinance any Indebtedness pursuant to this clause (9) other than its own
Indebtedness;

 22
 

(10)                 (x)
Indebtedness incurred by the Company and its Restricted Subsidiaries to finance
the purchase, lease or improvement of property (real or personal) or equipment
(whether through the direct purchase of assets or the Capital Stock of any
Person owning such assets) and (y) Capitalized Lease Obligations in an
aggregate principal amount outstanding for both clauses (x) and (y) (including
refinancings thereof), together with any Indebtedness pursuant to clause (7),
not to exceed $40.0 million at the time of any incurrence thereof;

(11)                 Indebtedness
incurred by the Company or any of its Restricted Subsidiaries constituting
reimbursement obligations with respect to letters of credit issued in the
ordinary course of business, including, without limitation, letters of credit
in respect of workers’ compensation claims or self-insurance, or other
Indebtedness with respect to reimbursement-type obligations regarding workers’
compensation claims;

(12)                 Indebtedness
arising from agreements of the Company or a Restricted Subsidiary of the
Company providing for indemnification, adjustment of purchase price, earn out
or other similar obligations, in each case, incurred or assumed in connection
with the disposition or acquisition of any business, assets or a Restricted
Subsidiary of the Company;

(13)                 obligations
in respect of performance and surety bonds and completion guarantees provided
by the Company or any Restricted Subsidiary of the Company in the ordinary
course of business;

(14)                 Indebtedness
consisting of guarantees (i) by the Company of Indebtedness and any other
obligation or liability permitted to be incurred under this Indenture by
Restricted Subsidiaries of the Company, and (ii) subject to the provisions of
Section 4.17, by Restricted Subsidiaries of the Company of Indebtedness and any
other obligation or liability permitted to be incurred by the Company or other
Restricted Subsidiaries of the Company; and

(15)                 additional
Indebtedness of the Company or any Restricted Subsidiary in an aggregate
principal amount not to exceed $35.0 million at any one time outstanding (which
amount may, but need not, be incurred in whole or in part under the Senior
Credit Facility; and

(16)                 Indebtedness
of the Company represented by the Senior Notes in an aggregate principal amount
not to exceed $350.0 million and the related guarantees by the Guarantors.

 23
 

Notwithstanding anything in this Indenture to the
contrary, transactions contemplated pursuant to the A/R  Facility shall not be deemed to be the
incurrence of Indebtedness by the Company or by any Restricted Subsidiary.

“Permitted Investments” means:

(1)                   Investments
by the Company or any Restricted Subsidiary of the Company in any Restricted
Subsidiary of the Company that is a Guarantor or any Wholly Owned Subsidiary of
the Company that is not a Guarantor (whether existing on the Issue Date or
created thereafter) and Investments in the Company by any Restricted Subsidiary
of the Company;

(2)                   cash
and Cash Equivalents;

(3)                   Investments
existing on the Issue Date;

(4)                   loans
and advances to employees, officers and directors of the Company and its
Restricted Subsidiaries not in excess of $10.0 million at any one time
outstanding;

(5)                   accounts
receivable owing to the Company or any Restricted Subsidiary created or
acquired in the ordinary course of business and payable or dischargeable in
accordance with customary trade terms; provided, however, that
such trade terms may include concessionary trade terms as the customary trade
terms;

(6)                   Currency
Agreements, Interest Swap Obligations and Raw Material Hedge Agreements entered
into by the Company or any of its Restricted Subsidiaries for bona fide
business reasons and not for speculative purposes, and otherwise in compliance
with this Indenture;

(7)                   Investments
in securities of trade creditors or customers received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such
trade creditors or customers;

(8)                   guarantees
by the Company or any of its Restricted Subsidiaries of Indebtedness otherwise
permitted to be incurred by the Company or any of its Restricted Subsidiaries
under this Indenture and the creation of Liens on the assets of the Company or
any of its Restricted Subsidiaries in compliance with Section 4.11;

(9)                   Investments
by the Company or any Restricted Subsidiary of the Company in a Person, if as a
result of such Investment (a) such Person becomes a Restricted Subsidiary of
the Company and a Guarantor or a Wholly Owned Subsidiary

 24
 

of the Company that is not a Guarantor or (b) such Person is merged,
consolidated or amalgamated with or into, or transfers or conveys all or
substantially all of its assets to, or is liquidated into, the Company or a
Restricted Subsidiary of the Company that is a Guarantor or any Wholly Owned
Subsidiary of the Company that is not a Guarantor;

(10)                 additional
Investments having an aggregate fair market value, taken together with all
other Investments made pursuant to this clause (10) that are at the time
outstanding, not exceeding $20.0 million at the time of such Investment (with
the fair market value of each Investment being measured at the time made and
without giving effect to subsequent changes in value);

(11)                 any
Investment by the Company or a Restricted Subsidiary of the Company in a
Receivables Entity or any Investment by a Receivables Entity in any other
Person in connection with a Qualified Receivables Transaction; provided
that any Investment in a Receivables Entity is in the form of a Purchase Money
Note or an equity interest;

(12)                 Investments
received by the Company or its Restricted Subsidiaries as consideration for
asset sales, including Asset Sales; provided that such Asset Sale is
otherwise effected in compliance with Section 4.12; and

(13)                 that
portion of any Investment where the consideration provided by the Company is
Capital Stock of the Company (other than Disqualified Capital Stock).

“Permitted Liens” means the following types of Liens:

(1)                   Liens
securing the Notes and the Guarantees;

(2)                   Liens
securing Acquired Indebtedness incurred in reliance on clause (7) of the
definition of “Permitted Indebtedness”; provided that such Liens do not
extend to or cover any property or assets of the Company or of any of its Restricted
Subsidiaries other than the property or assets that secured the Acquired
Indebtedness prior to the time such Indebtedness became Acquired Indebtedness
of the Company or a Restricted Subsidiary of the Company;

(3)                   Liens
existing on the Issue Date, together with any Liens securing Indebtedness
incurred in reliance on clause (9) of the definition of “Permitted Indebtedness”
in order to refinance the Indebtedness secured by Liens existing on the Issue
Date; provided that the Liens securing the refinancing Indebtedness
shall not extend to property other than that pledged under the Liens securing
the Indebtedness being refinanced; and

 25
 

(4)                   Liens
in favor of the Company on the property or assets, or any proceeds, income or
profit therefrom, of any Restricted Subsidiary.

“Person” means an individual, partnership,
corporation, unincorporated organization, trust or joint venture, or a
governmental agency or political subdivision thereof or any other entity.

“Physical Security” means, collectively, the Offshore Physical
Securities and the U.S. Physical Securities.

“Preferred Stock” of any Person means any Capital
Stock of such Person that has preferential rights to any other Capital Stock of
such Person with respect to dividends or redemptions or upon liquidation.

“principal” of a debt security means the principal
amount of the security plus, when appropriate, the premium, if any, on the
security.

“Private Placement Legend” means the legend initially
set forth on the Series A Notes in the form set forth on Exhibit A-1.

“Productive Assets” means assets (including Capital
Stock) of a kind used or usable in the businesses of the Company and its
Restricted Subsidiaries as, or related to such business, conducted on the Issue
Date or in businesses reasonably related thereto.

“pro  forma” means, with respect to any
calculation made or required to be made pursuant to the terms of this
Indenture, a calculation in accordance with Article 11 of Regulation S-X under
the Securities Act as interpreted by the Company’s chief financial officer or
Board of Directors in consultation with its independent certified public
accountants.

“Purchase Money Note” means a promissory note of a
Receivables Entity evidencing a line of credit, which may be irrevocable, from
the Company or any Subsidiary of the Company in connection with a Qualified
Receivables Transaction to a Receivables Entity, which note shall be repaid
from cash available to the Receivables Entity, other than amounts required to
be established as reserves pursuant to agreements, amounts paid to investors in
respect of interest, principal and other amounts owing to such investors and
amounts paid in connection with the purchase of newly generated receivables.

“Qualified Capital Stock” means any Capital Stock that
is not Disqualified Capital Stock.

“Qualified Institutional Buyer” or “QIB” shall have
the meaning specified in Rule 144A under the Securities Act.

 26
 

“Qualified Receivables Transaction” means any
transaction or series of transactions that may be entered into by the Company or
any of its Subsidiaries pursuant to which the Company or any or its
Subsidiaries may sell, convey or otherwise transfer to (a) a Receivables Entity
(in the case of a transfer by the Company or any of its Subsidiaries) and (b)
any other Person (in the case of a transfer by a Receivables Entity), or may
grant a security interest in, any accounts receivable (whether now existing or
arising in the future) of the Company or any of its Subsidiaries, and any
assets related thereto including, without limitation, all collateral securing
such accounts receivable, all contracts and all guarantees or other obligations
in respect of such accounts receivable, proceeds of such accounts receivable
and other assets which are customarily transferred or in respect of which security
interests are customarily granted in connection with asset securitization
transactions involving accounts receivable.

“Raw Material Hedge Agreements” means agreements
designed to hedge against fluctuations in the cost of raw materials entered
into in the ordinary course of business in connection with the operation of the
Company’s and its Restricted Subsidiaries’ business.

“Receivable” means a right to receive payment arising
from a sale or lease of goods or services by a Person pursuant to an arrangement
with another Person pursuant to which such other Person is obligated to pay for
goods or services under terms that permit the purchase of such goods and
services on credit, as determined in accordance with GAAP.

“Receivables Entity” means a Wholly Owned Subsidiary
of the Company (or another Person in which the Company or any Subsidiary of the
Company makes an Investment and to which the Company or any Subsidiary of the
Company transfers accounts receivable and related assets) which engages in no
activities other than in connection with the financing of accounts receivable,
all proceeds thereof and all rights (contractual or other), collateral and
other assets relating thereto, and any business or activities incidental or
related to such business, and which is designated by the Board of Directors of
the Company (as provided below) as a Receivables Entity:

(1)                   no
portion of the Indebtedness or any other Obligations (contingent or otherwise)
of which:

(i)                    is
guaranteed by the Company or any Subsidiary of the Company (excluding
guarantees of Obligations (other than the principal of, and interest on,
Indebtedness) pursuant to Standard Securitization Undertakings);

(ii)                   is
recourse to or obligates the Company or any Subsidiary of the Company in any
way other than pursuant to Standard Securitization Undertakings; or

 27
 

(iii)                  subjects any property or asset of the
Company or any Subsidiary of the Company, directly or indirectly, contingently
or otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings;

(2)       with
which neither the Company nor any Subsidiary of the Company has any material
contract, agreement, arrangement or understanding other than on terms no less
favorable to the Company or such Subsidiary than those that might be obtained
at the time from Persons that are not Affiliates of the Company, other than (i)
pursuant to documents which evidence a Qualified Receivables Transaction and
(ii) fees payable in the ordinary course of business in connection with servicing
accounts receivable; and

(3)       to
which neither the Company nor any Subsidiary of the Company has any obligation
to maintain or preserve such entity’s financial condition or cause such entity
to achieve certain levels of operating results other than through the
contribution of additional Receivables, related security and collections
thereto and proceeds of the foregoing.

Any such designation by the Board of Directors of the
Company shall be evidenced to the Trustee by filing with the Trustee a
certified copy of the resolution of the Board of Directors of the Company
giving effect to such designation and an Officers’ Certificate certifying that
such designation complied with the foregoing conditions.

“Redemption Date” means, with respect to any Note, the
Maturity Date of such Note or the date on which such Note is to be redeemed by
the Company pursuant to the terms of the Notes.

“Reference Date” shall have the meaning ascribed to
such term in Section 4.8(c).

“Registrar” has the meaning provided in Section 2.3.

“Registration Rights Agreement” means the Registration
Rights Agreement by and among the Company, Deutsche Bank, JP Morgan and Banc of
America, as agents, and the lenders named therein, relating to $293.5 million
of the Notes and dated as of the Issue Date, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof.

“Regulation S” means Regulation S under the Securities
Act.

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“Representative” means a trustee or other trustee,
agent or representative in respect of any Designated Senior Debt; provided
that if, and for so long as, any Designated Senior Debt lacks such a
representative, then the Representative for such Designated Senior Debt shall
at all times constitute the holders of a majority in outstanding principal
amount of such Designated Senior Debt in respect of any Designated Senior Debt.

“Responsible Officer” shall mean, when used with
respect to the Trustee, any officer within the corporate trust department of
the Trustee, including any vice president, assistant vice president, assistant
secretary, assistant treasurer, trust officer or any other officer of the
Trustee who customarily performs functions similar to those performed by the
persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of such person’s knowledge of and
familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

“Restricted Security” has the meaning set forth in
Rule 144(a)(3) under the Securities Act; provided that the Trustee shall
be entitled to request and conclusively rely upon an Opinion of Counsel with
respect to whether any Note is a Restricted Security.

“Restricted Subsidiary” of any Person means any
Subsidiary of such Person which at the time of determination is not an
Unrestricted Subsidiary.

“Rule 144A” means Rule 144A under the Securities Act.

“Sale and Leaseback Transaction” means any direct or
indirect arrangement with any Person or to which any such Person is a party,
providing for the leasing to the Company or a Restricted Subsidiary of any
property, whether owned by the Company or any Restricted Subsidiary at the
Issue Date or later acquired, which has been or is to be sold or transferred by
the Company or such Restricted Subsidiary to such Person or to any other Person
from whom funds have been or are to be advanced by such Person on the security
of such property.

“SEC” means the Securities and Exchange Commission.

“Securities Act” means the Securities Act of 1933, as
amended.

“Securityholder” means Holder.

“Senior Credit Facility” means the Credit Agreement
dated as of December 7, 1999, among the Company, certain of its subsidiaries,
the lenders party thereto in their capacities as lenders thereunder and J.P.
Morgan Securities Inc. (f/k/a Chase Securities Inc.) and Deutsche Bank
Securities Inc., as Joint Lead Arrangers and Joint Book Managers, JP Morgan
Chase Bank, (f/k/a The Chase Manhattan Bank), as Administrative Agent, Deutsche

 29
 

Bank Trust Company Americas (f/k/a Bankers Trust Company), as
Syndication Agent, Bank of America, N.A., as Documentation Agent, and various
co-agents, together with the related documents thereto (including, without
limitation, any guarantee agreements and security documents), in each case as
such agreements may be amended (including any amendment and restatement
thereof), supplemented or otherwise modified from time to time, including any
agreement extending the maturity of, refinancing, replacing or otherwise
restructuring (including increasing the amount of available borrowings
thereunder or adding Restricted Subsidiaries of the Company as additional
borrowers or guarantors thereunder) all or any portion of the Indebtedness
under such agreement or any successor or replacement agreement and whether by
the same or any other agent, lender or group of lenders.

“Senior Debt” means the principal of, premium, if any,
and interest (including any interest accruing subsequent to the filing of a
petition of bankruptcy at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable law) on any Indebtedness of the Company, whether outstanding on the
Issue Date or thereafter created, incurred or assumed, unless, in the case of
any particular Indebtedness, the instrument creating or evidencing the same or
pursuant to which the same is outstanding expressly provides that such
Indebtedness shall not be senior in right of payment to the Notes. Without limiting
the generality of the foregoing, “Senior Debt” shall also include the principal
of, premium, if any, interest (including any interest accruing subsequent to
the filing of a petition of bankruptcy at the rate provided for in the
documentation with respect thereto, whether or not such interest is an allowed
claim under applicable law) on, and all other amounts owing in respect of:

(1)                   all
monetary obligations of every nature of the Company under, or with respect to,
the Senior Credit Facility and the A/R Facility, including, without limitation,
obligations to pay principal and interest, reimbursement obligations under
letters of credit, fees, expenses and indemnities (and guarantees thereof);

(2)                   all
Interest Swap Obligations of the Company (and guarantees thereof by the
Company); and

(3)                   all
obligations of the Company (and guarantees thereof by the Company) under
Currency Agreements;

in each case whether outstanding on the Issue Date or
thereafter incurred.

Notwithstanding the foregoing, “Senior Debt” shall not
include:

(1)                   any
Indebtedness of the Company to a Subsidiary of the Company;

 30

(2)                   Indebtedness
to, or guaranteed on behalf of, any shareholder, director, officer or employee
of the Company or any Subsidiary of the Company (including, without limitation,
amounts owed for compensation) other than a shareholder who is also a lender (or
an Affiliate of a lender) under the Senior Credit Facility;

(3)                   Indebtedness
to trade creditors and other amounts incurred in connection with obtaining
goods, materials or services;

(4)                   Indebtedness
represented by Disqualified Capital Stock;

(5)                   any
liability for federal, state, local or other taxes owed or owing by the
Company;

(6)                   that
portion of any Indebtedness incurred in violation of Section 4.9 (but, as to
any such obligation, no such violation shall be deemed to exist for purposes of
this clause (6) if the holder(s) of such obligation or their representative
shall have received an officers’ certificate of the Company to the effect that
the incurrence of such Indebtedness does not (or, in the case of revolving
credit indebtedness, that the incurrence of the entire committed amount thereof
at the date on which the initial borrowing thereunder is made would not)
violate such provisions of this Indenture); provided that the foregoing shall
not apply to any incurrence under the Senior Credit Facility pursuant to clause
(2) of the definition of “Permitted Indebtedness” which incurrence was in
violation of such clause (2) solely as a result of the increase in Attributed
Receivables Facility Indebtedness (as defined in the Senior Credit Facility as
in effect on June 24, 2002) and the lenders under the Senior Credit Facility
extended such additional amounts in good faith without knowledge of such
increase;

(7)                   Indebtedness
which, when incurred and without respect to any election under Section 1111(b)
of Title 11, United States Code, is without recourse to the Company; and

(8)                   any
Indebtedness which is, by its express terms, subordinated or junior in right of
payment to any other Indebtedness of the Company.

“Senior Debt Obligations” means all obligations of the
Company for principal, premium, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation
governing any Senior Debt, and all guarantees by the Company of any of the
foregoing.

“Senior Notes” means the Company’s $350,000,000
aggregate principal amount of 10-7/8% Senior Notes due 2009.

 31
 

“Senior Subordinated Credit Agreement” shall mean the
Senior Subordinated Credit Agreement dated as of December 7, 1999, by and among
Vertis Holdings, the Company, the subsidiary guarantors named therein, the
lenders party thereto, and the agent banks named therein, as the same may be
amended from time to time.

“Senior Subordinated Indebtedness” means (x) with
respect to the Notes, any Indebtedness of the Company that specifically
provides that such Indebtedness is to rank pari passu with the Notes and
is not by its express terms subordinate in right of payment to any Indebtedness
of the Company which is not Senior Debt and (y) with respect to a Guarantee, any
Indebtedness of a Guarantor that specifically provides that such Indebtedness
is to rank pari  passu with such Guarantor’s Guarantee and is not
by its express terms subordinate in right of payment to any Indebtedness of
such Guarantor which is not Guarantor Senior Debt.

“Series A Notes” means the 131⁄2% Senior Subordinated
Notes due 2009, Series A, issued, authenticated and delivered under this
Indenture, as amended or supplemented from time to time pursuant to the terms
of this Indenture substantially in the form set forth in Exhibit A-1.

“Series B Notes” means the 131⁄2% Senior Subordinated
Notes due 2009, Series B (the terms of which are identical to the Series A
Notes except that the Series B Notes shall be registered under the Securities
Act, and shall not contain the restrictive legend on the face of the form of
the Series A Notes) to the extent issued in exchange for the Series A Notes
pursuant to the terms of the Registration Rights Agreement and this Indenture
substantially in the form set forth in Exhibit A-2.

“Significant Subsidiary” with respect to any Person,
means any Restricted Subsidiary of such Person that satisfies the criteria for
a “significant subsidiary” set forth in Rule 1.02(w) of Regulation S-X under
the Exchange Act.

“Standard Securitization Undertakings” means
representations, warranties, covenants and indemnities entered into by the
Company or any Subsidiary of the Company which, taken as a whole, are
reasonably customary in an accounts receivable transaction (including, without
limitation, all such representations, warrants, covenants and indemnities
included in the documents evidencing the A/R  Facility as in
effect on the Issue Date).

“Subordinated Obligation” means(x) with respect to the
Company, any Indebtedness of the Company (whether outstanding on the Issue Date
or thereafter incurred) which is expressly subordinate in right of payment to
the Notes, pursuant to a written agreement and (y) with respect to a Guarantor,
any Indebtedness of such Guarantor (whether outstanding on the Issue Date or
thereafter incurred) which is expressly subordinate in right of payment to the
Guarantee of such Guarantor, pursuant to a written agreement.

 32
 

“Subsidiary” with respect to any Person, means:

(1)                   any
corporation of which the outstanding Capital Stock having at least a majority
of the votes entitled to be cast in the election of directors under ordinary
circumstances shall at the time be owned, directly or indirectly, by such
Person; or

(2)                   any
other Person of which at least a majority of the voting interest under ordinary
circumstances is at the time, directly or indirectly, owned by such Person.

“THL” shall mean Thomas H. Lee Partners, L.P., a
Delaware limited partnership.

“THL Affiliates” shall mean any Affiliate of THL, provided
that for purposes of the definition of “Change of Control,” the term THL
Affiliate shall not include any portfolio company of either THL or any
Affiliate of THL.

“THL Investor” shall mean and include Thomas H. Lee
Equity Fund, IV, L.P., Thomas H. Lee Foreign Fund, IV, L.P., Thomas H. Lee Equity Fund IV, L.P., 1997 Thomas H. Lee
Nominee Trust and Thomas H. Lee Charitable Investment, L.P., or any limited or
general partner, stockholder, officer, employee or consultant of such THL
Investor, or any officer, employee or consultant of THL; provided that for the
purposes of making calculations under the definition of “Change of Control,”
the aggregate amount of equity of Vertis Holdings attributable to consultants
of THL and consultants of THL Investors may not exceed $3 million.

“TIA” means the Trust Indenture Act of 1939 (15 U.S.
Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture.

 “Transaction
Date” has the meaning ascribed to such term in the definition of “Consolidated
Fixed Charge Coverage Ratio.”

“Tribunal” means any government, any arbitration
panel, any court or any governmental department, commission, board, bureau,
agency, authority or instrumentality of the United States or any state,
province, commonwealth, nation, territory or possession, whether now or
hereafter constituted and/or existing.

“Trustee” means the party named as such in this
Indenture until a successor replaces it in accordance with the provisions of
this Indenture and thereafter means such successor.

“Unrestricted Subsidiary” of any Person means:

 33
 

(1)                   any
Subsidiary of such Person that at the time of determination shall be or
continue to be designated an Unrestricted Subsidiary by the Board of Directors
of such Person in the manner provided below; and

(2)                   any
Subsidiary of an Unrestricted Subsidiary.

The Board of Directors may designate any Subsidiary
(including any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary owns any Capital Stock of, or owns or holds
any Lien on any property of, the Company or any other Subsidiary of the Company
that is not a Subsidiary of the Subsidiary to be so designated; provided
that:

(1)                   the
Company certifies to the Trustee that such designation complies with Section
4.8; and

(2)                   each
Subsidiary to be so designated and each of its Subsidiaries has not at the time
of designation, and does not thereafter, create, incur, issue, assume,
guarantee or otherwise become directly or indirectly liable with respect to any
Indebtedness pursuant to which the lender has recourse to any of the assets of
the Company or any of its Restricted Subsidiaries.

The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary only if:

(1)                   immediately
after giving effect to such designation, the Company is able to incur at least
$1.00 of additional Indebtedness (other than Permitted Indebtedness) in
compliance with Section 4.9; and

(2)                   immediately
before and immediately after giving effect to such designation, no Default or
Event of Default shall have occurred and be continuing. Any such designation by
the Board of Directors shall be evidenced to the Trustee by promptly filing
with the Trustee a copy of the Board Resolution giving effect to such
designation and an officers’ certificate certifying that such designation
complied with the foregoing provisions.

“U.S. Government Obligations” means direct
non-callable obligations of, or non-callable obligations guaranteed by, the
United States of America for the payment of which guarantee or obligation the
full faith and credit of the United States is pledged.

“U.S. Legal Tender” means such coin or currency of the
United States of America as at the time of payment shall be legal tender for
the payment of public and private debts.

 34
 

“U.S. Physical Securities” means Notes, together with
their related Guarantees, issued in the form of certificated Notes, together
with their related Guarantees, in registered form in substantially the form set
forth in Exhibit A-1 or Exhibit A-2.

“Vertis Holdings” means Vertis Holdings, Inc., a
Delaware corporation and the parent of the Company.

“Weighted Average Life to Maturity” means, when
applied to any Indebtedness at any date, the number of years obtained by
dividing (a) the then outstanding aggregate principal amount of such Indebtedness
into (b) the sum of the total of the products obtained by multiplying (i) the
amount of each then remaining installment, sinking fund, serial maturity or
other required payment of principal, including payment at final maturity, in
respect thereof, by (ii) the number of years (calculated to the nearest
one-twelfth) which will elapse between such date and the making of such
payment.

“Wholly Owned Subsidiary” means any Restricted
Subsidiary of the Company all the outstanding voting interests or voting Capital
Stock of which (other than directors’ qualifying shares or an immaterial amount
of shares required to be owned by other Persons pursuant to applicable law) are
owned, directly or indirectly, by the Company.

SECTION 1.2            Incorporation by Reference of Trust
Indenture Act.

Whenever this Indenture refers to a provision of the
TIA, the provision shall be deemed incorporated by reference in and made a part
of this Indenture. The following TIA terms used in this Indenture have the
following meanings:

(a)  “Commission” means the SEC;

(b)  “indenture securities” means the Notes,
together with their related Guarantees;

(c)  “indenture security holder” means a
Securityholder;

(d)  “indenture to be qualified” means this
Indenture;

(e)  “indenture trustee” or “institutional
trustee” means the Trustee; and

(f)  “obligor” on the indenture securities
means the Company or any other obligor on the Notes and the Guarantees.

All other TIA terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
SEC rule and not otherwise defined herein have the meanings so assigned to them
therein.

 35
 

SECTION 1.3            Rules of Construction.

Unless the context otherwise requires:

(a)  a term has the meaning assigned to it;

(b)  “or” is exclusive;

(c)  words in the singular include the
plural, and words in the plural include the singular;

(d)  provisions apply to successive events
and transactions;

(e)  “herein,” “hereof’ and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other Subdivision; and

(f)  unless
otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all
financial statements required to be delivered hereunder shall be prepared in
accordance with GAAP as in effect from time to time, applied on a basis
consistent with the most recent audited consolidated financial statements of
the Company.

ARTICLE II

THE SECURITIES 

SECTION 2.1            Form and Dating.

The Series A Notes and the Series B Notes and the
Trustee’s certificate of authentication with respect thereto shall be
substantially in the form set forth in Exhibits A-1 and A-2 annexed hereto,
which is hereby incorporated in and expressly made a part of this Indenture.
The Notes may have notations, legends or endorsements required by law, rule,
usage or agreement to which the Company is subject. Each Note shall be dated
the date of its issuance and shall show the date of its authentication. The terms
and provisions contained in the Notes and the Guarantees shall constitute, and
are expressly made, a part of this Indenture.

SECTION 2.2            Execution and Authentication. 

Two Officers shall execute the Notes on behalf of the
Company by either manual or facsimile signature. The Guarantors shall execute
the Guarantees in the manner set forth in Article XI.

 36
 

If a Person whose signature is on a Note as an Officer
no longer holds that office at the time the Trustee authenticates the Note, the
Note shall be valid nevertheless.

A Note shall not be valid until the Trustee manually
signs the certificate of authentication on the Note. The signature shall be
conclusive evidence that the Note has been authenticated under this Indenture.
Each Note shall be dated the date of its authentication.

The Trustee shall authenticate Series A Notes for
original issue from time to time in the aggregate principal amount not to
exceed $293,500,000, upon receipt of an Officers’ Certificate. In addition, the
Trustee or an authenticating agent shall authenticate Series B Notes to the
extent issued pursuant to the terms of the Registration Rights Agreement upon
receipt of an Officers’ Certificate. The aggregate principal amount of Notes
outstanding at any time may not exceed $293,500,000 except as provided in
Section 2.7.

The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate Notes. Unless limited by the terms of
such appointment, an authenticating agent may authenticate Notes whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. Such authenticating agent shall
have the same authenticating rights and duties as the Trustee in any dealings
hereunder with the Company or with any Affiliate of the Company.

The Notes shall be issuable only in registered form
without coupons and only in denominations of $1,000 and any integral multiple
thereof.

Notes offered and sold in reliance on Rule 144A shall
be issued initially in the form of one or more permanent global notes in
registered form, substantially in the form set forth in Exhibit A-1 (“Global
Securities”), deposited with the Trustee, as custodian for the Depository, and
shall bear the legend set forth on Exhibit B. The aggregate principal amount of
any Global Security may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for the
Depository, as hereinafter provided.

Notes offered and sold in offshore transactions in
reliance on Regulation S shall be issued in the form of certificated notes in
registered form set forth in Exhibit A- 1 (“Offshore Physical Securities”).

SECTION 2.3            Registrar and Paying Agent. 

The Company shall maintain an office or agency (which
shall be located in the Borough of Manhattan in the City of New York, State of
New York) where Notes may be presented for registration of transfer or for
exchange (the “Registrar”), an office or agency (which shall be located in the
Borough of Manhattan, City of New York, State of New York) where Notes may be
presented for payment (the “Paying Agent”) and an office or agency

 37
 

where notices and demands to or upon the Company in respect of the
Notes and this Indenture may be served. The Registrar shall keep a register of
the Notes and of their transfer and exchange. The Company may have one or more
co-registrars and one or more additional paying agents. The term “Paying Agent”
includes any additional paying agent. The Company may act as its own Paying
Agent, except that for the purposes of payments on account of principal on the
Notes pursuant to Sections 4.12 and 4.15, neither the Company nor any Affiliate
of the Company may act as Paying Agent.

The Company shall enter into an appropriate agency
agreement with any Agent not a party to this Indenture, which shall incorporate
the provisions of the TIA. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Company shall notify the Trustee of
the name and address of any such Agent. If the Company fails to maintain a
Registrar or Paying Agent, or fails to give the foregoing notice, the Trustee
shall act as such and shall be entitled to appropriate compensation in
accordance with Section 7.7.

The Company initially appoints the Trustee as Registrar
and Paying Agent and agent for service of notices and demands in connection
with the Notes.

SECTION 2.4            Paying Agent To Hold Money in Trust.

Each Paying Agent shall hold in trust for the benefit
of the Securityholders or the Trustee all money held by the Paying Agent for
the payment of principal of or interest on the Notes, and shall notify the
Trustee of any default by the Company in making any such payment. Money held in
trust by the Paying Agent need not be segregated except as required by law and
in no event shall the Paying Agent be liable for any interest on any money
received by it hereunder. The Company at any time may require the Paying Agent
to pay all money held by it to the Trustee and account for any funds disbursed
and the Trustee may at any time during the continuance of any Event of Default
specified in Section 6.l(a) or (b) upon written request to the Paying Agent,
require such Paying Agent to pay forthwith all money so held by it to the
Trustee and to account for any funds disbursed. Upon making such payment, the
Paying Agent shall have no further liability for the money delivered to the
Trustee.

SECTION 2.5            Securityholder Lists. 

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of the Securityholders and otherwise comply with TIA §312(a). If the Trustee is not the
Registrar, the Company shall furnish or cause the Registrar to furnish to the
Trustee before each Interest Payment Date, and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of the
Securityholders.

 38
 

SECTION 2.6            Transfer and Exchange.

Subject to the provisions of Sections 2.14 and 2.15,
when Notes are presented to the Registrar or a co-Registrar with a request from
the Holder of such Notes to register the transfer or to exchange them for an
equal principal amount of Notes of other authorized denominations, the
Registrar shall register the transfer or make the exchange as requested; provided
that every Note presented or surrendered for registration of transfer or
exchange shall be duly endorsed or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Registrar, duly executed
by the Holder thereof or his attorneys duly authorized in writing. To permit
registrations of transfers and exchanges, the Company shall issue and execute
and the Trustee shall authenticate new Notes (together with related Guarantees
executed by the Guarantors) evidencing such transfer or exchange. No service
charge shall be made to the Securityholder for any registration of transfer or
exchange. The Company may require from the Securityholder payment of a sum
sufficient to cover any transfer taxes or other governmental charge that may be
imposed in relation to a transfer or exchange, but this provision shall not
apply to any exchange pursuant to Section 2.10,4.12, 4.15 or 9.5 (in which
events the Company will be responsible for the payment of such taxes). The
Registrar or co-Registrar shall not be required to register the transfer of or
exchange of any Note (i) during a period beginning at the opening of business
15 days before the mailing of a notice of redemption of Notes and ending at the
close of business on the day of such mailing and (ii) selected for redemption
in whole or in part pursuant to Article III,
except the unredeemed portion of any Note being redeemed in part.

SECTION 2.7            Replacement Notes.

If a mutilated Note is surrendered to the Registrar or
the Trustee or if the Holder of a Note of any series claims that the Note has
been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Note (together with related Guarantees
executed by the Guarantors) if the Holder of such Note furnishes to the Company
and to the Trustee evidence reasonably acceptable to them of the ownership and
the destruction, loss or theft of such Note. If required by the Trustee or the Company,
an indemnity bond shall be posted, sufficient in the judgment of the Company or
the Trustee, as the case may be, to protect the Company, the Trustee or any
Agent from any loss that any of them may suffer if such Note is replaced. The
Company may charge such Holder for the Company’s expenses in replacing such
Note and the Trustee may charge the Company for the Trustee’s expenses in
replacing such Note. Every replacement Note shall constitute an additional
obligation of the Company and shall be entitled to the benefits of this
Indenture.

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SECTION 2.8            Outstanding Notes.

The Notes outstanding at any time are all Notes that
have been authenticated by the Trustee except for (a) those canceled by it, (b)
those delivered to it for cancellation or (c) those described in this Section
2.8 as not outstanding. A Note does not cease to be outstanding because the
Company or one of its Affiliates holds the Note.

If a Note is replaced pursuant to Section 2.7, it
ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced Note is held by a bona  fide purchaser in whose
hands such Note is a legal, valid and binding obligation of the Company.

If the Paying Agent holds, in its capacity as such, on
any Maturity Date or on any optional redemption date money sufficient to pay
all accrued interest and principal with respect to such Notes payable on that
date and is not prohibited from paying such money to the Holders thereof
pursuant to the terms of this Indenture, then on and after that date such Notes
cease to be outstanding and interest on them ceases to accrue.

SECTION 2.9            Treasury Notes.

In determining whether the Holders of the required
principal amount of Notes have concurred in any declaration of acceleration or
notice of default or direction, waiver or consent or any amendment,
modification or other change to this Indenture, Notes owned by the Company or
any Subsidiary or an Affiliate of the Company shall be deemed not to be
outstanding, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent or any
amendment, modification or other change to this Indenture, only Notes that the
Trustee knows are so owned shall be so disregarded. The Company shall notify
the Trustee, in writing, when it or any of its Affiliates repurchases or
otherwise acquires Notes, of the aggregate principal amount of such Notes so
repurchased or otherwise acquired.

SECTION 2.10          Temporary Notes.

Until definitive Notes are prepared and ready for
delivery, the Company may prepare and the Trustee shall authenticate temporary
Notes (together with related Guarantees executed by the Guarantors). Temporary
Notes shall be substantially in the form of definitive Notes but may have
variations that the Company reasonably considers appropriate for temporary
Notes. Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate definitive Notes (together with related Guarantees executed
by the Guarantors) in exchange for temporary Notes. Until such exchange, such
temporary Notes shall be entitled to the same rights, benefits and privileges
as the definitive Notes.

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SECTION 2.11          Cancellation.  

The Company at any time may deliver Notes to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to
the Trustee any Notes surrendered to them for registration of transfer,
exchange or payment. The Trustee and no one else shall cancel all Notes
surrendered for registration of transfer, exchange, payment, replacement or cancellation
and shall (subject to the record-retention requirements of the Exchange Act)
dispose of canceled Notes unless the Company directs the Trustee to return such
Notes to the Company. The Company may not reissue or resell, or issue new Notes
to replace, Notes that the Company has redeemed or paid, or that have been
delivered to the Trustee for cancellation.

SECTION 2.12          Defaulted Interest. 

If the Company defaults in a payment of interest on
the Notes, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the Persons who are
Securityholders on a subsequent special record date. Such record date shall be
the fifteenth day next preceding the date fixed by the Company for the payment of
defaulted interest, whether or not such day is a Business Day. At least 15 days
before the subsequent special record date, the Company shall mail (or cause to
be mailed) to each Securityholder a notice that states the record date, the
payment date and the amount of defaulted interest to be paid. Notwithstanding
the foregoing, any interest which is paid prior to the expiration of the 30-day
period set forth in Section 6.l(a) or (b) shall be paid to Holders of Notes as
of the regular record date for the interest payment date for which interest has
not been paid. Notwithstanding the foregoing, the Company may make payment of
any defaulted interest in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Notes may be listed, and
upon such notice as may be required by such exchange.

SECTION 2.13          CUSIP Number.

The Company in issuing the Notes may use a “CUSIP”
number, and if so, such CUSIP number shall be included in notices of redemption
or exchange as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness or accuracy of
the CUSIP number printed in the notice or on the Notes, and that reliance may
be placed only on the other identification numbers printed on the Notes. The
Company will promptly notify the Trustee of any change in the CUSP number.

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SECTION 2.14          Book-Entry Provisions for Global
Securities.

(a)       The
Global Securities initially shall (i) be registered in the name of the
Depository or the nominee of such Depository, (ii) be delivered to the Trustee
as custodian for such Depository and (iii) bear legends as set forth in Exhibit
B.

Members of, or participants in, the Depository (“Agent
Members”) shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depository, or the Trustee as its
custodian, or under the Global Security, and the Depository may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of the Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depository
or impair, as between the Depository and its Agent Members, the operation of
customary practices governing the exercise of the rights of a Holder of any
Note.

(b)       Transfers
of Global Securities shall be limited to transfers in whole, but not in part,
to the Depository, its successors or their respective nominees. U.S. Physical
Securities shall be transferred to all beneficial owners in exchange for their
beneficial interests in Global Securities, in accordance with the rules and
procedures of the Depository, only if (i) the Depository notifies the Company
that it is unwilling or unable to continue as Depository for any Global
Security and a successor depositary is not appointed by the Company within 90
days of such notice or (ii) an Event of Default has occurred and is continuing
and the Registrar has received a request from the Depository to issue U.S.
Physical Securities.

(c)       In
connection with the transfer of Global Securities as an entirety to beneficial
owners pursuant to paragraph (b), the Global Securities shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute, and
the Trustee shall authenticate and deliver to each beneficial owner identified
by the Depository in exchange for its beneficial interest in the Global
Securities, an equal aggregate principal amount of U.S. Physical Securities
(together with related Guarantees executed by the Guarantors) of authorized
denominations.

(d)       Any
U.S. Physical Security constituting a Restricted Security delivered in exchange
for an interest in a Global Security pursuant to paragraph (b) shall, except as
otherwise provided by paragraphs (a)(i)(x) and (c) of Section 2.15, bear the
legend regarding transfer restrictions applicable to the U.S. Physical
Securities set forth in Exhibit A-1.

(e)       The
Holder of any Global Security may grant proxies and otherwise authorize any
Person, including Agent Members and Persons that may hold interests through

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Agent Members, to take any action which a Holder is entitled to take
under this Indenture or the Notes.

SECTION 2.15          Special Transfer Provisions.

(a)       Transfers
to Non-QIB Institutional Accredited Investors and Non-U.S. Persons. The
following provisions shall apply with respect to the registration of any proposed
transfer of a Note constituting a Restricted Security to any Institutional
Accredited Investor which is not a QIB or to any Non-U.S. Person:

(i)        the
Registrar shall register the transfer of any Note constituting a Restricted
Security, whether or not such Note bears the Private Placement Legend, if (x)
the requested transfer is after the second anniversary of the Issue Date or (y)
(1) in the case of a transfer to an Institutional Accredited Investor which is
not a QIB (excluding Non-U.S. Persons), the proposed transferee has delivered
to the Registrar a certificate substantially in the form of Exhibit C hereto or
(2) in the case of a transfer to a Non-U.S. Person, the proposed transferee has
delivered to the Registrar a certificate substantially in the form of Exhibit D
hereto, together, in the case of clause (i)(x) with such other certifications,
legal opinions or other information as the Company or the Trustee may
reasonably require to confirm that such transfer is being made pursuant to an
exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act; and

(ii)       if
the proposed transferor is an Agent Member holding a beneficial interest in a
Global Security, upon receipt by the Registrar of (x) the certificate, if any,
required by paragraph (i) above and (y) instructions given in accordance with
the Depository’s and the Registrar’s procedures,

whereupon (a) the Registrar shall reflect on its books and records the
date and (if the transfer does not involve a transfer of outstanding Physical
Securities) a decrease in the principal amount of a Global Security in an
amount equal to the principal amount of the beneficial interest in a Global
Security to be transferred, and (b) the Company shall execute and the Trustee shall
authenticate and deliver one or more Physical Securities (together with related
Guarantees executed by the Guarantors) of like tenor and amount.

(b)       Transfers
to QIBs. The following provisions shall apply with respect to the
registration of any proposed transfer of a Note constituting a Restricted
Security to a QIB (excluding transfers to Non-U.S. Persons):

(i)        the
Registrar shall register the transfer if such transfer is being made by a
proposed transferor who has checked the box provided for on the form of Note
stating, or has otherwise advised the Company and the Registrar in writing,
that the

 43
 

sale has been made in compliance with the provisions of Rule 144A to a
transferee who has signed the certification provided for on the form of Note
stating, or has otherwise advised the Company and the Registrar in writing,
that it is purchasing the Note for its own account or an account with respect
to which it exercises sole investment discretion and that it and any such
account is a QIB within the meaning of Rule 144A, and is aware that the sale to
it is being made in reliance on Rule 144A and acknowledges that it has received
such information regarding the Company as it has requested pursuant to Rule
144A or has determined not to request such information and that it is aware
that the transferor is relying upon its foregoing representations in order to
claim the exemption from registration provided by Rule 144A; and

(ii)       if
the proposed transferee is an Agent Member, and the Notes to be transferred
consist of Physical Securities which after transfer are to be evidenced by an
interest in the Global Security, upon receipt by the Registrar of instructions
given in accordance with the Depository’s and the Registrar’s procedures, the
Registrar shall reflect on its books and records the date and an increase in
the principal amount of the Global Security in an amount equal to the principal
amount of the Physical Securities to be transferred, and the Trustee shall
cancel the Physical Securities so transferred.

(c)       Private
Placement Legend. Upon the transfer, exchange or replacement of Notes not
bearing the Private Placement Legend, the Registrar shall deliver Notes that do
not bear the Private Placement Legend. Upon the transfer, exchange or
replacement of Notes bearing the Private Placement Legend, the Registrar shall
deliver only Notes that bear the Private Placement Legend unless (i) the
circumstances contemplated by paragraph (a)(i)(x) of this Section 2.15 exist,
(ii) there is delivered to the Registrar an Opinion of Counsel reasonably
satisfactory to the Company and the Trustee to the effect that neither such
legend nor the related restrictions on transfer are required in order to
maintain compliance with the provisions of the Securities Act or (iii) such
Note has been sold pursuant to an effective registration statement under the
Securities Act.

(d)       General.
By its acceptance of any Note bearing the Private Placement Legend, each Holder
of such a Note acknowledges the restrictions on transfer of such Note set forth
in this Indenture and in the Private Placement Legend and agrees that it will
transfer such Note only as provided in this Indenture.

The Registrar shall retain copies of all letters,
notices and other written communications received pursuant to Section 2.14 or
this Section 2.15. The Company shall have the right to inspect and make copies
of all such letters, notices or other written communications at any reasonable
time upon the giving of reasonable written notice to the Registrar.

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ARTICLE III

REDEMPTION 

SECTION 3.1            Notices to Trustee.

If the Company elects to redeem Notes pursuant to
Section 5 of the Notes, it shall notify the Trustee and the Paying Agent in
writing of the Redemption Date and the principal amount of Notes to be
redeemed.

The Company shall give each notice provided for in
this Section 3.1 at least 30 but not more than 60 days before the Redemption
Date (unless a shorter notice shall be satisfactory to the Trustee), together
with an Officers’ Certificate stating that such redemption will comply with the
conditions contained herein and in the Notes.

SECTION 3.2            Selection of Notes To Be Redeemed.

If less than all of the Notes are to be redeemed, the
Trustee shall select Notes to be so redeemed in compliance with applicable
legal requirements and the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not listed
on a national securities exchange, by lot, pro rata or in such other fair and
appropriate manner chosen at the discretion of the Trustee.

The Trustee shall make the selection from the Notes
outstanding and not previously called for redemption. Notes in denominations of
$1,000 or less may only be redeemed in whole. The Trustee may select for
redemption portions (equal to $1,000 or any integral multiple thereof) of the
principal of Notes that have denominations larger than $1,000. Provisions of
this Indenture that apply to Notes called for redemption also apply to portions
of Notes called for redemption. The Trustee shall promptly notify the Company
in writing of the Notes selected for redemption and, in the case of any Note
selected for partial redemption, the principal amount of each certificate
selected for redemption.

SECTION 3.3            Notice of Redemption.

At least 30 days but not more than 60 days before a
Redemption Date, the Company shall mail or cause the mailing of a notice of
redemption by first-class mail, postage prepaid, to each Holder of Notes to be
redeemed at such Holder’s address as it appears on the Notes register maintained
by the Registrar with a copy to the Trustee and any Paying Agent.

The notice shall identify the Notes to be redeemed and
shall state:

(a)  the Redemption Date;

 45

(b)  the redemption price to be paid;

(c)  the name and address of the Paying
Agent;

(d)  that Notes called for redemption must
be surrendered to the Paying Agent to collect the redemption price and accrued
interest, if any;

(e)  that, unless the Company defaults in
making the redemption payment, interest on Notes called for redemption ceases
to accrue on and after the Redemption Date and the only remaining right of the
Holders of such Notes is to receive payment of the redemption price upon
surrender to the Paying Agent of the Notes to be redeemed;

(f)  if any Note is to be redeemed in part,
the portion of the principal amount (equal to $1,000 or any integral multiple
thereof) of such Note to be redeemed and that, on or after the Redemption Date,
upon surrender of such Note, a new Note or Notes in aggregate principal amount
equal to the unredeemed portion thereof will be issued without charge to the
Securityholder;

(g)  if less than all of the Notes are to be
redeemed, the identification of the particular Notes (or portion thereof) to be
redeemed, as well as the aggregate principal amount of Notes to be redeemed;
and

(h)  the CUSIP number, if any.

At the Company’s request, made to the Trustee at least
35 days prior to the Redemption Date, the Trustee shall give the notice of
redemption in the Company’s name and at the Company’s expense in accordance
with this Section 3.3.

SECTION 3.4            Effect of Notice of Redemption.

Once notice of redemption is mailed, Notes called for
redemption become due and payable on the Redemption Date and at the redemption
price. Upon surrender to the Paying Agent, such Notes shall be paid at the
redemption price plus accrued interest to the Redemption Date, but interest
installments whose Interest Payment Date is on or prior to such Redemption Date
will be payable on the relevant Interest Payment Dates to the Holders of record
at the close of business on the relevant record dates referred to in the Notes.

SECTION 3.5            Deposit of Redemption Price.

Prior to 10:00 a.m. New York City time on the
Redemption Date, the Company shall deposit with the Paying Agent in immediately
available funds U.S. Legal Tender

 46
 

sufficient to pay the redemption price of and accrued interest on all
Notes or portions thereof to be redeemed on that date.

If any Note surrendered for redemption in the manner
provided in the Notes shall not be so paid on the Redemption Date due to the
failure of the Company to deposit sufficient funds with the Paying Agent,
interest will continue to accrue from and including the Redemption Date until
such payment is made on the unpaid principal and, to the extent lawful, on any
interest not paid on such unpaid principal, in each case at the date and in the
manner provided in the Notes.

SECTION 3.6            Notes Redeemed in Part.

Upon surrender to the Paying Agent of a Note that is
redeemed in part, the Company shall execute and the Trustee shall authenticate
for the Holder a new Note (together with related Guarantees executed by the
Guarantors) equal in principal amount to the unredeemed portion of the Note
surrendered.

ARTICLE IV

COVENANTS 

SECTION 4.1            Payment of Notes.

The Company shall pay the principal of and interest on
the Notes on the dates and in the manner provided in the Notes and this
Indenture.

An installment of principal or interest shall be
considered paid on the date due if the Trustee or Paying Agent (other than the
Company or any Subsidiary of the Company or any Affiliate of any thereof) holds
on such date immediately available funds designated for and sufficient to pay
such installment.

The Company shall pay interest (including Accrued
Bankruptcy Interest) on overdue principal and on overdue installments of
interest, in each case at the rate per annum specified in the Notes, to the
extent lawful.

SECTION 4.2            Maintenance of Office or Agency.

The Company shall maintain in the Borough of
Manhattan, the City of New York, an office or agency, where Notes may be
surrendered for registration of transfer or exchange or for presentation for
payment and where notices and demands to or upon the Company in respect of the
Notes and this Indenture may be served. The Company will give

 47
 

prompt written notice to the Trustee of the location, and any change in
the location, of such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the address of the Trustee set forth in
Section 13.2.

The Company may also from time to time designate one
or more other offices or agencies where the Notes may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or
agency in the Borough of Manhattan, the City of New York, for such purposes.
The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.

The Company hereby initially designates the Corporate
Trust Office of the Trustee set forth in Section 13.2 as an agency of the
Company in accordance with Section 2.3.

SECTION 4.3            Corporate Existence.

Subject to Article V hereof, the Company shall do or
cause to be done, at its own cost and expense, all things necessary to, and
will cause each of its Restricted Subsidiaries to, preserve and keep in full
force and effect the corporate existence and rights (charter and statutory),
licenses and/or franchises of the Company and each of its Restricted
Subsidiaries; provided that the Company shall not be required to
preserve any such right, license or franchise, or the corporate existence of
any of its Restricted Subsidiaries, if in the judgment of the Board of
Directors or management of the Company (i) such preservation or existence is
not desirable in the conduct of business of the Company or such Restricted
Subsidiary and (ii) the loss of such right, license or franchise or the
dissolution of such Restricted Subsidiary is not adverse in any material
respect to the Holders.

SECTION 4.4            Payment of Taxes and Other Claims.

The Company shall and shall cause each of its
Subsidiaries to pay or discharge or cause to be paid or discharged, before the
same shall become delinquent, (a) all material taxes, assessments and
governmental charges levied or imposed upon its or its Subsidiaries’ income,
profits or property and (b) all material lawful claims for labor, materials and
supplies which, if unpaid, would be reasonably likely to by law become a Lien
upon its property or the property of any of its Subsidiaries; provided
that the Company shall not be required to pay or discharge or cause to be paid
or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
negotiations or proceedings and for which disputed amounts adequate reserves
(in the good faith judgment of

 48
 

the Board of Directors or management of the Company) have been made in
accordance with GAAP.

SECTION 4.5            Maintenance of Properties.

The Company shall and shall cause each of its
Restricted Subsidiaries to at all times cause all properties used or useful in
the conduct of its business to be maintained and kept in good condition, repair
and working order (reasonable wear and tear excepted) and supplied with all
necessary equipment, and shall cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereto; provided
that nothing in this Section 4.5 shall prevent the Company or any Restricted
Subsidiary from discontinuing the operation or maintenance of any of such
properties, or disposing of any of them, if such discontinuance or disposal is
either (i) in the ordinary course of business, (ii) in the reasonable and good
faith judgment of the Board of Directors or management of the Company or the
Restricted Subsidiary concerned, as the case may be, desirable in the conduct
of the business of the Company or such Restricted Subsidiary, as the case may
be, or (iii) otherwise permitted by this Indenture.

SECTION 4.6            Compliance Certificates; Notice of
Default.

(a)       The
Company shall deliver to the Trustee, within 120 days after the end of its
fiscal year, an Officers’ Certificate signed by the principal executive
officer, the principal financial officer or the principal accounting officer
complying with TIA § 314(a)(4)
stating (i) that a review of the activities of the Company and the activities
of its Subsidiaries during the preceding fiscal year has been made under the
supervision of the signing Officers with a view to determining whether the
Company and the Guarantors have kept, observed, performed and fulfilled each of
their respective obligations under this Indenture, the Notes and the Guarantees
and (ii) that, to the best knowledge of such Officer after due inquiry, each of
the Company and the Guarantors has kept, observed, performed and fulfilled, in
each case in all material respects, each and every covenant and other
obligation contained in this Indenture, the Notes and the Guarantees and is not
in default in the performance or observance of any of the terms, provisions and
conditions hereof and has not failed to comply with any other obligation
hereunder (or, if a Default, Event of Default or failure to comply with any
other obligation hereunder shall have occurred, describing with particularity
all such Defaults, Events of Default or failures to comply with any other
obligation hereunder of which such Officer may have knowledge, including, but
not limited to, their status and what action the Company is taking or proposes
to take with respect thereto).

(b)       The
Company shall, so long as any of the Notes are outstanding, deliver to the
Trustee, forthwith upon becoming aware of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and what
action the Company is taking or proposes to take with respect thereto.

 49
 

SECTION 4.7            Reports.

(a)       The
Company shall deliver to the Trustee and mail to each Holder, within 15 days
after the filing of the same with the SEC, copies of its annual report and of
the information, documents and other reports, if any, which the Company is
required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange
Act. The Company shall also comply with the other provisions of TIA § 3 14(a).

(b)       If
the Company is not subject to the requirements of such Section 13 or 15(d) of
the Exchange Act, the Company shall file with the SEC, to the extent permitted,
and distribute to the Trustee and to each Holder copies of the quarterly and
annual financial information and current reports on Form 8-K  that would have been required to be filed
with the SEC pursuant to the Exchange Act had the Company been subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act. All such
financial information shall include consolidated financial statements
(including footnotes) prepared in accordance with GAAP. Such annual financial
information shall also include an opinion thereon expressed by an independent
accounting firm of established national reputation. All such consolidated
financial statements shall be accompanied by a “Management’s Discussion and
Analysis of Financial Condition and Results of Operations.” The financial
information and current reports to be distributed to Holders pursuant to this
Section 4.7  shall be filed with
the Trustee and mailed to the Holders at their respective addresses appearing
in the register of the Notes maintained by the Registrar, within the time
periods specified in the SEC’s rules and regulations.

(c)       The
Company shall deliver to the Trustee and mail to each Holder, within the
applicable time periods provided in the Senior Subordinated Credit Agreement,
all information and reports which the lenders under the Senior Subordinated
Credit Agreement are entitled to receive from Vertis Holdings, the Company and
the Company’s Subsidiaries, as the case may be, in each case to the extent not
already provided under clauses (a) and (b) of this Section 4.7.

(d)       Delivery
of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
its covenants (as to which the Trustee is entitled to conclusively rely
exclusively on an Officers’ Certificates).

SECTION 4.8            Limitation on Restricted Payments.

(a)       The
Company shall not, and shall not cause or permit any of its Restricted
Subsidiaries to, directly or indirectly:

 50
 

(1)       declare
or pay any dividend or make any distribution (other than dividends or
distributions payable in Qualified Capital Stock or options, warrants and other
rights to purchase the same) on or in respect of shares of Capital Stock of the
Company to holders of such Capital Stock;

(2)       purchase,
redeem or otherwise acquire or retire for value any Capital Stock of the
Company or any warrants, rights or options to purchase or acquire shares of any
class of such Capital Stock;

(3)       make
any principal payment on, purchase, defease, redeem, prepay or otherwise
acquire or retire for value, prior to any scheduled final maturity, scheduled
repayment or scheduled sinking fund payment, any Subordinated Obligation; or

(4)       make
any Investment (other than Permitted Investments) in any other Person (each of
the foregoing actions set forth in clauses (1), (2), (3) and (4) being referred
to as a “Restricted Payment”); if at the time of such Restricted Payment or
immediately after giving effect thereto:

(i)        a
Default or an Event of Default shall have occurred and be continuing; or

(ii)       the
Company is not able to incur at least $1.00 of additional Indebtedness (other
than Permitted Indebtedness) in compliance with Section 4.9; or

(iii)      the aggregate amount of Restricted Payments made
subsequent to June 24, 2002 (the amount expended for such purposes, if other
than cash, being the fair market value of such property as determined in good
faith by the Board of Directors of the Company), shall exceed the sum of (the “Restricted
Payment Basket”):

(v)       50%
of the cumulative Consolidated Net Income (or if cumulative Consolidated Net
Income shall be a loss, minus 100% of such loss) of the Company earned
subsequent to June 30, 2002 and on or prior to the date the Restricted Payment
occurs (the “Reference Date”) (treating such period as a single accounting
period); plus

(w)       100%
of the aggregate Net Cash Proceeds received by the Company from any Person
(other than a Subsidiary of the Company) from the issuance and sale subsequent
to June 24, 2002 and on or prior to the Reference Date of Qualified Capital
Stock of the Company (including Capital Stock issued upon the conversion of

 51
 

convertible Indebtedness or in exchange for
outstanding Indebtedness but excluding aggregate net cash proceeds from the
sale of Capital Stock to the extent used to repurchase or acquire shares of
Capital Stock of the Company or a Subordinated Obligation of the Company or a
Guarantor pursuant to clause (2) of paragraph (b) below); plus

(x)        without
duplication of any amounts included in clause (iii) (w) above, 100% of the
aggregate net cash proceeds of any equity contribution received by the Company
from a holder of the Company’s Capital Stock subsequent to June 24, 2002; plus

(y)       to
the extent that any Investment (other than a Permitted Investment) that was
made after June 24,2002 is sold for cash or otherwise liquidated or repaid for
cash, the Net Cash Proceeds received with respect to such sale, liquidation or
repayment of such Investment, but only to the extent not included in the
calculation of Consolidated Net Income.

(b)       Notwithstanding
the foregoing, the provisions set forth in paragraph (a) do not prohibit:

(1)       the
payment of any dividend within 60 days after the date of declaration of such
dividend if the dividend would have been permitted on the date of declaration;

(2)       the
acquisition of any shares of Capital Stock of the Company or the repurchase,
redemption or other repayment of any Subordinated Obligation of the Company or
any Guarantor in exchange for or solely out of the proceeds of the
substantially concurrent sale (other than to a Subsidiary of the Company) of
shares of Qualified Capital Stock of the Company;

(3)       the
repurchase, redemption or other repayment of any Subordinated Obligation of the
Company or any Guarantor in exchange for or solely out of the proceeds of the
substantially concurrent issuance (other than to a Subsidiary of the Company)
of a Subordinated Obligation of the Company or such Guarantor with no payments
of principal required until at least six months following the maturity date of
the Notes;

(4)       the
making of distributions, loans or advances in an amount not to exceed (x) $5.0
million to pay the ordinary operating costs of Vertis Holdings (including,
without limitation, directors fees, indemnification obligations, professional
fees and expenses) related to Vertis Holdings’ ownership of Capital Stock of
the Company (other than to the Equity Investors or their Affiliates) in any
fiscal year plus

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(y) any other amounts of corporate overhead expenses
payable by Vertis Holdings which were deducted in calculating the Consolidated
Net Income of the Company in accordance with GAAP;

(5)       the
payment by the Company of cash dividends to Vertis Holdings in the amounts and
at the times of any payment by Vertis Holdings in respect of taxes, provided
that (x) the amount of cash dividends paid pursuant to this clause (5) to
enable Vertis Holdings to pay federal and state income taxes at any time shall
not exceed the lesser of (A) the amount of such federal and state income taxes
owing by Vertis Holdings at such time for the respective period and (B) the
amount of such federal and state income taxes that would be owing by the
Company and its Subsidiaries on a consolidated basis for such period if
determined without regard to Vertis Holdings’ ownership of the Company and (y)
any refunds shall promptly be returned by Vertis Holdings to the Company;

(6)       payments
for the purpose of and in an amount equal to the amount required to permit
Vertis Holdings to redeem or repurchase Vertis Holdings’ common equity or
options in respect thereof, in each case in connection with the repurchase, put
or call provisions under employee stock option, management subscription,
retained share or stock purchase agreements or other agreements to compensate
management employees; provided that such redemptions or repurchases
pursuant to this clause (6) shall not exceed $10.0 million per annum; provided
that amounts not used pursuant to this clause (6) in prior years shall not be
carried forward for use in future years;

(7)       so
long as no Default or Event of Default shall have occurred and be continuing,
payments not to exceed $500,000 in the aggregate to enable Vertis Holdings to
make payments to holders of its Capital Stock in lieu of issuance of fractional
shares of its Capital Stock;

(8)       payments
made to the Equity Investors allowed pursuant to Section 4.13: and

(9)       repurchases
of Capital Stock deemed to occur upon the exercise of stock options if such
Capital Stock represents a portion of the exercise price thereof; and

(10)     additional
Restricted Payments in an aggregate amount not to exceed $13.0 million.

In determining the aggregate amount of the Restricted
Payments Basket in accordance with clause (iii) of paragraph (a) above, amounts
expended pursuant to clauses (1), (6) and (10) of paragraph (b) shall be
included in such calculation.

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SECTION 4.9            Limitation on Incurrence of Additional
Indebtedness.

(a)       The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, create, incur, assume, guarantee, acquire, become
liable, contingently or otherwise, with respect to, or otherwise become
responsible for payment of (collectively, “incur”) any Indebtedness (other than
Permitted Indebtedness); provided, however, that if no Default or
Event of Default shall have occurred and be continuing at the time or as a
consequence of the Incurrence of any such Indebtedness, the Company or any
Guarantor may Incur Indebtedness if on the date of the Incurrence of such
Indebtedness, after giving effect to the Incurrence thereof, the Consolidated
Fixed Charge Coverage Ratio of the Company would have been greater than 2.25 to
1.0 if such Indebtedness is incurred before January 1, 2005, or greater than
2.5 to 1.0 if such Indebtedness is incurred on or after January 1, 2005.

No Indebtedness incurred pursuant to the Consolidated
Fixed Charge Coverage Ratio test of the preceding sentence (including, without
limitation, Indebtedness under the Senior Credit Facility) shall reduce the
amount of Indebtedness which may be incurred pursuant to any clause of the
definition of Permitted Indebtedness (including, without limitation,
Indebtedness under the Senior Credit Facility pursuant to clause (2) of the
definition of Permitted Indebtedness)

(b)       For
purposes of determining compliance with this covenant, (I) in the event that an
item of Indebtedness meets the criteria of more than one of the types of
Indebtedness described in the definition of “Permitted Indebtedness,” the
Company, in its sole discretion, will classify such item of Indebtedness at the
time of incurrence and will be entitled to divide and classify an item of
Indebtedness in more than one of the types of Indebtedness described in the
definition of “Permitted Indebtedness” and  (2) the Company will be entitled
from time to time to reclassify any Indebtedness incurred pursuant to any
clause in the definition of “Permitted Indebtedness.”

SECTION 4.10          Limitation on Dividend and Other Payment
Restrictions Affecting Subsidiaries.

The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
permit to exist or become effective any consensual encumbrance or restriction
on the ability of any Restricted Subsidiary to:

(1)       pay
dividends or make any other distributions on or in respect of its Capital
Stock;

(2)       make
loans or advances or to pay any Indebtedness or other obligation owed to the
Company or any other Restricted Subsidiary of the Company; or

 54
 

(3)       transfer
any of its property or assets to the Company or any other Restricted Subsidiary
of the Company,

except for such encumbrances or restrictions existing under or by
reason of:

(a)       applicable
law;

(b)       the
Loan Documents (as defined in the Senior Subordinated Credit Agreement), this
Indenture or encumbrances or restrictions substantially similar to the
encumbrances and restrictions contained in the Loan Documents (as defined in
the Senior Subordinated Credit Agreement) and this Indenture, as the case may
be, taken as a whole;

(c)       non-assignment
provisions of any contract or any lease entered into in the ordinary course of
business;

(d)       any
instrument governing Acquired Indebtedness, which encumbrance or restriction is
not applicable to the Company or any Restricted Subsidiary of the Company, or
the properties or assets of any such Person, other than the Person or the
properties or assets of the Person so acquired; provided, however,
that such Acquired Indebtedness was not incurred in connection with, or in
anticipation or contemplation, of an acquisition by the Company or the
Restricted Subsidiary;

(e)       agreements
existing on the Issue Date;

(f)        the
Senior Credit Facility and the A/R Facility;

(g)       restrictions
on the transfer of assets subject to any Lien permitted under this Indenture
imposed by the holder of such Lien;

(h)       restrictions
imposed by any agreement to sell assets permitted under this Indenture to any
Person pending the closing of such sale;

(i)        Indebtedness
or other contractual requirements of a Receivables Entity in connection with a
Qualified Receivables Transaction; provided that such restrictions apply
only to such Receivables Entity;

(j)        agreements
governing Indebtedness permitted to be Incurred pursuant to Section 4.9,
provided that the provisions relating to such encumbrances or restrictions
contained in such Indebtedness are no less favorable to the Company in any
material respect as determined by the Board of Directors of the Company in
their reasonable and good faith judgment than the provisions contained in the
Senior Credit Facility as in effect on the Issue Date; or

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(k)       an agreement effecting a
refinancing, replacement or substitution of Indebtedness issued, assumed or
Incurred pursuant to an agreement referred to in clause (b), (d), (e) or (f)
above; provided, however, that the provisions relating to such encumbrance or
restriction contained in any such refinancing, replacement or substitution
agreement are no less favorable to the Company or the Holders in any material
respect as determined by the Board of Directors of the Company than the
provisions relating to such encumbrance or restriction contained in agreements
referred to in such clause (b), (d), (e) or (f).

SECTION 4.11          Limitation on Liens.

The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, create, incur, assume or suffer to exist any Liens
(other than Permitted Liens) of any kind against or upon any of their
respective property or assets, or any proceeds, income or profit therefrom
which secure Senior Subordinated Indebtedness or Subordinated Obligations,
unless:

(1)       in
the case of Liens securing Subordinated Obligations of the Company, the Notes
are secured by a Lien on such property, assets, proceeds, income or profit that
is senior in priority to such Liens;

(2)       in
the case of Liens securing Subordinated Obligations of a Guarantor, such
Guarantor’s Guarantee is secured by a Lien on such property, assets, proceeds,
income or profit that is senior in priority to such Liens;

(3)       in
the case of Liens securing Senior Subordinated Indebtedness of the Company, the
Notes are equally and ratably secured by a Lien on such property, assets, proceeds,
income or profit; and

(4)       in
the case of Liens securing Senior Subordinated Indebtedness of a Guarantor,
such Guarantor’s Guarantee is equally and ratably secured by a Lien on such
property, assets, proceeds, income or profit.

SECTION 4.12          Limitation
on Asset Sales.

(a)       The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
consummate an Asset Sale unless:

(1)       the
Company or the applicable Restricted Subsidiary, as the case may be, receives
consideration at the time of such Asset Sale at least equal to the fair market
value of the assets sold or otherwise disposed of (as determined in good faith
by the Company’s Board of Directors);

 56
 

(2)       at
least 75% of the consideration received by the Company or such Restricted
Subsidiary, as the case may be, from such Asset Sale shall be cash or Cash
Equivalents and is received at the time of such disposition; provided
that the amount of (x) any liabilities (as shown on the Company’s or such
Restricted Subsidiary’s most recent balance sheet or in the notes thereto) of
the Company or such Restricted Subsidiary (other than liabilities that are by
their terms subordinated to the Notes and other than liabilities consisting of
Disqualified Capital Stock) (i) that are assumed by the transferee of any such
assets and from which the Company and its Restricted Subsidiaries are
unconditionally released or (ii) in respect of which neither the Company nor
any Restricted Subsidiary following such sale has any obligation and (y) any
notes or other obligations received by the Company or such Restricted
Subsidiary from such transferee that are promptly, but in no event more than 60
days after receipt, converted by the Company or such Restricted Subsidiary into
cash or Cash Equivalents (to the extent of the cash or Cash Equivalents
received), shall be deemed to be cash for purposes of this provision; and

(3)       upon
the consummation of an Asset Sale, the Company shall apply, or cause such
Restricted Subsidiary to apply, the Net Cash Proceeds relating to such Asset
Sale within 360 days of receipt thereof either:

(a)       to
prepay any Senior Debt or Guarantor Senior Debt and, in the case of any Senior
Debt or Guarantor Senior Debt under any revolving credit facility, effect a
permanent reduction in the availability under such revolving credit facility;

(b)       to
reinvest in Productive Assets (and to the extent such reinvestment constitutes
an Investment, such reinvestment complies with Section 4.8); or

(c)       a
combination of prepayment and investment permitted by the foregoing clauses
(3)(a) and (3)(b).

On the 361st day after an Asset Sale or such earlier
date, if any, as the Board of Directors of the Company or of such Restricted
Subsidiary determines not to apply the Net Cash Proceeds relating to such Asset
Sale as set forth in clauses (3)(a), (3)(b) and (3)(c) of the immediately
preceding sentence (each, a “Net Proceeds Offer Trigger Date”), such aggregate
amount of Net Cash Proceeds which have not been applied on or before such Net
Proceeds Offer Trigger Date as permitted in clauses (3)(a), (3)(b) and (3)(c)
of the immediately preceding sentence (each a “Net Proceeds Offer Amount”)
shall be applied by the Company or such Restricted Subsidiary to make an offer
to purchase for cash (the “Net Proceeds Offer”) on a date (the “Net Proceeds
Offer Payment Date”) not less than 30 nor more than 60 days following the
applicable Net Proceeds Offer Trigger Date, from all Holders on a pro  rata

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basis, that amount of Notes equal to the Net Proceeds
Offer Amount at a price in cash equal to 100% of the principal amount of the
Notes to be purchased, plus accrued and unpaid interest thereon, if any, to the
date of purchase; provided, however, that if at any time any
non-cash consideration received by the Company or any Restricted Subsidiary of
the Company, as the case may be, in connection with any Asset Sale is converted
into or sold or otherwise disposed of for cash (other than interest, dividends
or other earnings received with respect to any such non-cash consideration),
then such conversion or disposition shall be deemed to constitute an Asset Sale
hereunder as of the date of such conversion or disposition and the Net Cash
Proceeds thereof shall be applied in accordance with this covenant.

(b)       Notwithstanding
the foregoing, if a Net Proceeds Offer Amount is less than $20 million, the
application of the Net Cash Proceeds constituting such Net Proceeds Offer
Amount to a Net Proceeds Offer may be deferred until such time as such Net
Proceeds Offer Amount plus the aggregate amount of all Net Proceeds Offer
Amounts arising subsequent to the Net Proceeds Offer Trigger Date relating to
such initial Net Proceeds Offer Amount from all Asset Sales by the Company and
its Restricted Subsidiaries aggregates at least $10 million, at which time the
Company or such Restricted Subsidiary shall apply all Net Cash Proceeds
constituting all Net Proceeds Offer Amounts that have been so deferred to make
a Net Proceeds Offer (the first date the aggregate of all such deferred Net
Proceeds Offer Amounts is equal to $20 million or more shall be deemed to be a
Net Proceeds Offer Trigger Date).

(c)       Notwithstanding
paragraphs (a) and (b) of this Section 4.12, the Company and its Restricted
Subsidiaries will be permitted to consummate an Asset Sale without complying
with such paragraphs to the extent that:

(1)       at
least 75% of the consideration for such Asset Sale constitutes Productive
Assets (and to the extent any of such Productive Assets constitutes an
Investment, such Investment complies with Section 4.8); and

(2)       such
Asset Sale is for at least fair market value (as determined in good faith by
the Company’s Board of Directors); provided that any consideration not
constituting Productive Assets received by the Company or any of its Restricted
Subsidiaries in connection with any Asset Sale permitted to be consummated
under this paragraph shall constitute Net Cash Proceeds and shall be subject to
the provisions of this covenant with respect to the application of Net Cash
Proceeds; provided that at the time of entering into such transaction or
immediately after giving effect thereto, no Default or Event of Default shall
have occurred or be continuing or would occur as a consequence thereof.

(d)       Within
25 days following the Net Proceeds Offer Trigger Date, the Company shall mail
or cause the Trustee to mail (in the Company’s name and at its expense)

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notice of a Net Proceeds Offer to the Holders of the Notes at their
last registered addresses with a copy to the Trustee and the Paying Agent. The
Net Proceeds Offer shall remain open from the time of mailing for at least 20
Business Days and until the close of business on the third Business Day prior
to the Net Proceeds Offer Payment Date. The notice shall contain all
instructions and materials necessary to enable such Holders to tender Notes
pursuant to the Net Proceeds Offer. The notice, which shall govern the terms of
the Net Proceeds Offer, shall state:

(i)        that
the Net Proceeds Offer is being made pursuant to this Section 4.12;

(ii)       the
purchase price (including the amount of accrued and unpaid interest, if any)
for each Note and the Net Proceeds Offer Payment Date;

(iii)      that any Note not tendered or accepted for
payment will continue to accrue interest in accordance with the terms thereof;

(iv)      that
any Note accepted for payment pursuant to the Net Proceeds Offer shall cease to
accrue interest after the Net Proceeds Offer Payment Date unless the Company
shall fail to make payment therefor;

(v)       that
Holders electing to have Notes purchased pursuant to a Net Proceeds Offer will
be required to surrender their Notes to the Paying Agent at the address
specified in the notice prior to 5:00
p.m., New York
City time, on the third Business Day immediately preceding the Net Proceeds
Offer Payment Date and must complete any form letter of transmittal proposed by
the Company and acceptable to the Trustee and the Paying Agent;

(vi)      that
Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than 5:00 p.m., New York City time, on the third Business
Day immediately preceding the Net Proceeds Offer Payment Date, a telex or
facsimile transmission (confirmed by overnight delivery of the original
thereof) or letter setting forth the name of the Holder, the principal amount
of Notes the Holder delivered for purchase, the Note certificate number (if
any) and a statement that such Holder is withdrawing his election to have such
Notes purchased;

(vii)     that
if Notes in a principal amount in excess of the Holders’ pro  rata share of the Net Proceeds are
tendered pursuant to a Net Proceeds Offer, the Company shall purchase Notes on
a pro  rata basis among the Notes tendered (with such adjustments
as may be deemed appropriate by the Company so that only Notes in denominations
of $1,000 or integral multiples of $1,000 shall be acquired);

 59
 

(viii)    that Holders whose Notes are purchased only in part
will be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered; and

(ix)       the
instructions that Holders must follow in order to tender their Notes.

On or before the Net
Proceeds Offer Payment Date, the Company shall (i) accept for payment, on a pro  rata basis among the Notes, Notes or
portions thereof tendered pursuant to the Net Proceeds Offer, (ii) deposit with
the Paying Agent money, in immediately available funds, in an amount sufficient
to pay the purchase price of all Notes or portions thereof so tendered and
accepted and (iii) deliver to the Paying Agent the Notes so accepted together
with an Officers’ Certificate setting forth the Notes or portions thereof
tendered to and accepted for payment by the Company. The Paying Agent shall
promptly mail or deliver to Holders of Notes so accepted payment in an amount
equal to the purchase price, and the Trustee shall promptly authenticate and
mail or deliver to such Holders a new Note equal in principal amount to any
unpurchased portion of the Note surrendered. Any Notes not so accepted shall be
promptly mailed or delivered by the Company to the Holder thereof. The Company
will publicly announce the results of the Net Proceeds Offer on the first
Business Day following the Net Proceeds Offer Payment Date. The Paying Agent
shall promptly deliver to the Company the balance of any moneys held by the
Paying Agent after payment to the Holders of Notes as aforesaid.

(e)       To
the extent that the aggregate amount of Notes tendered pursuant to a Net
Proceeds Offer is less than the Net Proceeds Offer Amount, the Company may use
any remaining Net Proceeds Offer Amount for general corporate purposes. Upon
completion of any such Net Proceeds Offer, the Net Proceeds Offer Amount shall
be reset at zero.

(f)        In
the event of the transfer of substantially all of the property and assets of
the Company and its Restricted Subsidiaries as an entirety to a Person in a
transaction permitted under Article V, which transaction does not constitute a
Change of Control, the successor Person shall be deemed to have sold the
properties and assets of the Company and its Subsidiaries not so transferred
for purposes of this Section 4.12, and shall comply with the provisions of
clause (a)(3) of this Section 4.12 respect to such deemed sale as if it were an
Asset Sale.

(g)       The
Company shall comply, to the extent applicable, with the requirements of
Section 14(e) of the Exchange Act and any other securities laws or regulations
(including Rule 14e-1 under the Exchange Act) in connection with the repurchase
of Notes pursuant to a Net Proceeds Offer. To the extent that the provisions of
any securities laws or regulations conflict with the provisions of this Section
4.12, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under this
Section 4.12 by virtue thereof.

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SECTION 4.13          Limitations
on Transactions with Affiliates.

(a)       The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or permit to exist any transaction or series
of related transactions (including, without limitation, the purchase, sale,
lease or exchange of any property or the rendering of any service) with, or for
the benefit of, any of its Affiliates (an “Affiliate Transaction”), other than
(x) Affiliate Transactions permitted under paragraph (b) below and (y)
Affiliate Transactions entered into on terms that are fair and reasonable to,
and in the best interests of, the Company or such Restricted Subsidiary, as the
case may be, as determined in good faith by the Company’s Board of Directors; provided, however, that for a transaction or series
of related transactions with an aggregate value of $5.0 million or more, at the
Company’s option (i) such determination shall be made in good faith by a
majority of the disinterested members of the Board of the Directors of the
Company or (ii) the Board of Directors of the Company or any such Restricted
Subsidiary party to such Affiliate Transaction shall have received a favorable
opinion from a nationally recognized investment banking firm that such Affiliate
Transaction is fair from a financial point of view to the Company or such
Restricted Subsidiary; provided, further, that for a transaction or series of related
transactions with an aggregate value of $20.0 million or more, the Board of
Directors of the Company shall have received a favorable opinion from a
nationally recognized investment banking firm that such Affiliate Transaction
is fair from a financial point of view to the Company or such Restricted
Subsidiary.

(b)       The
foregoing restrictions shall not apply to:

(1)       transactions
exclusively between or among the Company and any of its Restricted Subsidiaries
or exclusively between or among such Restricted Subsidiaries, provided such transactions are not
otherwise prohibited by this Indenture;

(2)       transactions
effected as part of a Qualified Receivables Transaction;

(3)       any
agreement as in effect as of the Issue Date or any amendment thereto or any
transaction contemplated thereby (including pursuant to any amendment thereto)
or in any replacement agreement thereto so long as any such amendment or
replacement agreement is not more disadvantageous to the Holders in any
material respect than the original agreement as in effect on the Issue Date;

(4)       Restricted
Payments permitted by this Indenture;

(5)       loans
or advances to officers, directors or employees of the Company or its
Restricted Subsidiaries not in excess of $10.0 million at any one time
outstanding;

(6)       Permitted Investments or Permitted
Liens;

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(7)       transactions with Persons solely
in their capacity as holders of Indebtedness or Capital Stock of the Company or
any of its Restricted Subsidiaries, where such Persons are treated no more
favorably than holders of Indebtedness or Capital Stock of the Company or such
Restricted Subsidiary generally;

(8)       reasonable
and customary fees and compensation paid to, and indemnity provided on behalf
of, officers, directors, consultants or employees of Vertis Holdings or any of
its Restricted Subsidiaries (other than the THL Affiliates and the ECP
Affiliates, which are set forth in clauses 9, 10 and 11 below), as determined
by the Board of Directors of the Company or any such Restricted Subsidiary or
the senior management thereof in good faith, including, without limitation,
issuances of stock, payment of bonuses and other transactions pursuant to
employment or compensation agreements, stock option agreements, indemnification
agreements and other arrangements in effect on the Issue Date or substantially
similar thereto;

(9)       the
payment, on a quarterly basis, of management fees to (A) THL and/or the THL
Affiliates not to exceed $250,000 in any fiscal quarter and (B) ECP and/or the
ECP Affiliates not to exceed $62,500 in any fiscal quarter, in each case in
accordance with the management agreement between THL, the THL Affiliates, ECP
and/or the ECP Affiliates and Vertis Holdings;

(10)     the
reimbursement of THL, the THL Affiliates, ECP and/or the ECP Affiliates for the
reasonable out-of-pocket expenses incurred by them in connection with
performing management services to Vertis Holdings and its Restricted
Subsidiaries;

(11)     the
payment of one-time fees to THL, the THL Affiliates, ECP and/or the ECP
Affiliates in connection with acquisition transactions not prohibited by this
Indenture, such fees to be payable at the time of each such acquisition and not
to exceed (for all fees paid pursuant to this clause (11)) 2.5% of the
aggregate consideration paid by Vertis Holdings and its Restricted Subsidiaries
for any such acquisition or such lesser amount as is then permitted pursuant to
the Senior Credit Facility; and

(12)     reasonable
and customary fees paid to members of the Board of Directors of the Company,
other than THL, the THL Affiliates, ECP and the ECP Affiliates.

Notwithstanding the foregoing, the Company shall only
pay one-half of any management or other fees or expenses permitted under
clauses (9), (10) and (11) to the Equity Investors or their Affiliates at a
time when a Default or an Event of Default exists; provided

 62
 

that such unpaid fees and/or expenses shall be paid at such time as
such Default or Event of Default shall have been cured or waived.

SECTION 4.14          Prohibition on Incurrence of Senior
Subordinated Debt.

Neither the Company nor any Guarantor shall incur
Indebtedness that is senior in right of payment to the Notes or such Guarantor’s
Guarantee and subordinate in right of payment to any other Indebtedness of the
Company or such Guarantor, as the case may be.

SECTION 4.15          Change of Control.

(a)       Upon
the occurrence of a Change of Control (the date of such occurrence, the “Change
of Control Date”), each Holder shall have the right to require that the Company
purchase all or a portion of such Holder’s Notes pursuant to an offer to
purchase (the “Change of Control Offer”) at a purchase price equal to 101% of
the aggregate principal amount thereof plus accrued interest thereon to the
date of repurchase.

Prior to the mailing of the notice to the Holders
provided for in paragraph (b) below but in any event within 30 days following
the date upon which the Company obtains actual knowledge of any Change of
Control, the Company hereby covenants to (i) repay in full and terminate all
commitments under Indebtedness under the Senior Credit Facility and all other
Senior Debt the terms of which require repayment upon a Change of Control or
offer to repay in full and terminate all commitments under all Indebtedness
under the Senior Credit Facility and all other such Senior Debt and to repay
the Indebtedness of each lender which has accepted such offer or (ii) obtain
the requisite consents under the Senior Credit Facility and all other Senior
Debt to permit the repurchase of the Notes as provided for in paragraph (c)
below.

The Company shall first comply with the covenant in
the immediately preceding sentence before it shall be required to repurchase
the Notes pursuant to this Section 4.15. The Company’s failure to comply with
the covenant described in the immediately preceding paragraph (and any failure
to send the notice referred to in clause (b) below as a result of the
prohibition in the second preceding sentence) may (with notice and lapse of
time) constitute an Event of Default described in Section 6.l(c) but shall not
constitute an Event of Default described in Section 6.1(a) or (b).

(b)       Notice
of a Change of Control Offer shall be sent, by first class mail, by the Company
within 30 days following the date upon which the Company obtains actual
knowledge that a Change of Control occurred to the Holders of Notes at their
last registered addresses with a copy to the Trustee and the Paying Agent. The
date on which Notes are purchased pursuant to the Change of Control Offer shall
be a business day that is no earlier than 30 days nor later than 60 days from
the date such notice is mailed (the “Change of

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Control Payment Date”). The Change of Control Offer
shall remain open from the time of mailing for at  least 20 Business Days and until 3:00  p.m., New York City time, on the
third Business Day prior to the Change of Control Payment Date. The notice,
which shall govern the terms of the Change of Control Offer, shall include such
disclosures as are  required by law and shall state:

(i)                       that
the Change of Control Offer is being made  pursuant to this Section 4.15 and
that all Notes will be accepted for payment;

(ii)                    the  purchase price  (including the amount of accrued and  unpaid interest, if any) for each
Note and  the Change of Control Payment Date;

(iii)                 that any Note not tendered for payment
will continue to accrue interest in accordance with the terms thereof;

(iv)                that
any Note accepted for payment pursuant to the Change of Control Offer shall cease  to accrue interest after the
Change of Control Payment Date unless the Company shall fail to make payment
therefor;

(v)                   that
Holders electing to have Notes purchased pursuant to a Change of Control Offer
will be required to surrender their Notes to the Paying Agent at the  address specified in the notice
prior to 3:00  p.m., New York City time, on the Change of Control
Payment Date and must complete any form of transmittal proposed by the Company
and acceptable to the Trustee and the Paying Agent;

(vi)                that
Holders of Notes will be entitled to withdraw their  election if the Paying Agent
receives, not later than
3:00  p.m., New York City time, on the third Business Day
prior to the Change of Control Payment Date,  a telex or facsimile transmission
(confirmed by overnight delivery of the  original thereof) or letter
seating forth the name of the Holder, the principal
amount of Notes the Holder delivered for purchase,  the Note certificate number (if
any) and a statement that such Holder is withdrawing his election to have such
Notes purchased;

(vii)             that
Holders whose Notes are purchased only in part  will be issued Notes equal  in principal amount to the unpurchased portion of the Notes
surrendered; and

(viii)          the instructions that Holders must follow in
order to tender their Notes.

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(c)       On
the Change of Control Payment Date, the Company shall (i) accept for payment
Notes or portions thereof tendered pursuant to the Change of Control Offer,
(ii) deposit with the Paying Agent money sufficient to pay the purchase price
of all Notes or portions thereof so tendered and accepted and (iii) deliver to
the Trustee the Notes so accepted together with an Officers’ Certificate
setting forth the Notes or portions thereof tendered to and accepted for
payment by the Company. The Paying Agent shall promptly mail or deliver to the
Holders of Notes so accepted payment in an amount equal to the purchase price,
and the Trustee shall promptly authenticate and mail or deliver to such Holders
a new Note equal in principal amount to any unpurchased portion of the Note
surrendered. Any Notes not so accepted shall be promptly mailed or delivered by
the Company to the Holder thereof. The Company will publicly announce the
results of the Change of Control Offer not later than the first Business Day
following the Change of Control Payment Date.

(d)       The
Company shall comply, to the extent applicable, with the requirements of
Section 14(e) of the Exchange Act, and any other securities laws or regulations
(including Rule 14e-1 under the Exchange Act) in connection with the purchase
of Notes pursuant to a Change of Control Offer. To the extent that the
provisions of any securities laws or regulations conflict with provisions of
this Section 4.15, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.15 by virtue thereof.

SECTION 4.16          Waiver of Stay; Extension of Usury Laws.

The Company covenants (to the extent that it may
lawfully do so) that it shall not, nor shall it cause or permit any of the
Guarantors to, at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law or any
usury law or other law that would prohibit or forgive the Company or any
Guarantor from paying all or any portion of the principal of or interest on the
Notes or the Guarantees, as applicable, as contemplated herein or in the Notes
and the Guarantees, wherever enacted, now or at any time hereafter in force, or
that may affect the covenants or the performance of this Indenture; and (to the
extent that it may lawfully do so) each of the Company and the Guarantors
hereby expressly waives all benefit or advantage of any such law, and covenants
that it will not hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

SECTION 4.17          Limitation on Guarantees by Restricted
Subsidiaries.

The Company shall not permit any of its Domestic
Restricted Subsidiaries that is not a Guarantor (whether formed or acquired
before or after the Issue Date), directly or indirectly, by way of the pledge
of any intercompany note or otherwise, to assume, guarantee or in any other
manner become liable with respect to any Indebtedness of the Company (other

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than: (1) Indebtedness under Currency Agreements in
reliance on clause (5)of the definition  of Permitted Indebtedness; or (2) Interest Swap
Obligations incurred in reliance on clause (4) of the definition of Permitted
Indebtedness), unless, in any such case:

(1)                   such
Restricted Subsidiary executes and delivers a supplemental indenture to this
Indenture providing a guarantee of payment of the Notes by such Restricted
Subsidiary, and

(2)                   (a)
if any such assumption, guarantee or other liability of such Restricted
Subsidiary is provided in respect of Senior Debt, the guarantee or other
instrument provided by such Restricted Subsidiary in respect of such Senior
Debt may be superior to such guarantee of the Notes pursuant to subordination
provisions no less favorable to the Holders of the Notes than those contained
in this Indenture and (b) if such assumption, guarantee or other liability of
such Restricted Subsidiary is provided in respect of Indebtedness that is
expressly subordinated to the Notes, the guarantee or other instrument provided
by such Restricted Subsidiary in respect of such Subordinated Obligation shall
be subordinated to such guarantee at least to the same extent that the Notes
are subordinated to Senior Debt.

Notwithstanding the foregoing, any such Guarantee by a
Restricted Subsidiary of the Notes shall provide by its terms that it shall be
automatically and unconditionally released and discharged, without any further
action required on the part of the Trustee or any Holder, upon:

(1)                   the unconditional release of such
Restricted Subsidiary from its liability in respect of the Indebtedness in
connection with which such Guarantee was executed and delivered pursuant to the
preceding paragraph and all other Indebtedness which would require that a
Guarantee be executed and delivered pursuant to the preceding paragraph;

(2)                   any sale or other disposition (by merger or
otherwise) to any Person which is not a Restricted Subsidiary of the Company of
all of the Company’s Capital Stock in, or all or substantially all of the
assets of, such Restricted Subsidiary; provided that (a) such sale or
disposition of such Capital Stock or assets is otherwise in compliance with the
terms of this Indenture and (b) such assumption, guarantee or other liability
of such Restricted Subsidiary has been released by the holders of the other
Indebtedness of the Company so guaranteed;

(3)                   the
Legal Defeasance of the Notes as described under Section 8.2; or

(4)                   such
Restricted Subsidiary being designated as an Unrestricted Subsidiary in
compliance with this Indenture.

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SECTION 4.18          Limitation on Preferred Stock of
Subsidiaries.

The Company shall not permit any of its Restricted
Subsidiaries that is not a Guarantor to issue any Preferred Stock (other than
to the Company or to a Restricted Subsidiary of the Company) or permit any
Person (other than the Company or a Restricted Subsidiary of the Company) to
own any Preferred Stock of any Restricted Subsidiary of the Company that is not
a Guarantor.

SECTION 4.19          Conduct of Business.

The Company and its Restricted Subsidiaries shall not
engage in any businesses which are not the same, similar, related or ancillary
to the businesses in which the Company and its Restricted Subsidiaries are
engaged on the Issue Date.

ARTICLE V

SUCCESSOR CORPORATION 

SECTION 5.1            Limitation on Mergers, Consolidations or
Sales of Assets.

The Company shall not, in a single transaction or a
series of related transactions, consolidate with or merge with or into, or
sell, assign, transfer, lease, convey or otherwise dispose of (or cause or
permit any Restricted Subsidiary of the Company to sell, assign, transfer,
lease, convey or otherwise dispose of) all or substantially all of the Company’s
assets to, another Person or Persons unless:

(1)       either:

(a)       the
Company shall be the surviving or continuing corporation of such merger or
consolidation; or

(b)       the
surviving Person is a corporation existing under the laws of the United States,
any state thereof or the District of Columbia and such surviving Person shall
expressly assume all the obligations of the Company under the Notes and this
Indenture;

(2)       immediately
after giving effect to such transaction (on a pro  forma basis,
including any Indebtedness incurred or anticipated to be incurred in connection
with such transaction and the other adjustments that are referred to in the
definition of “Consolidated Fixed Charge Coverage Ratio”), the Company or the
surviving Person

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is able to incur at least $1.00 of additional Indebtedness (other than
Permitted Indebtedness) in compliance with Section 4.9;

(3)       immediately
before and immediately after giving effect to such transaction (including any
Indebtedness incurred or anticipated to be incurred in connection with the
transaction), no Default or Event of Default shall have occurred and be
continuing; and

(4)       the
Company or the surviving entity, as the case may be, has delivered to the
Trustee an officers’ certificate and opinion of counsel, each stating that such
consolidation, merger or transfer complies with this Indenture, that the
surviving Person agrees to be bound thereby and by the Notes and the
Registration Rights Agreement, and that all conditions precedent in this
Indenture relating to such transaction have been satisfied.

For purposes of the foregoing, the transfer (by lease,
assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties and assets of one
or more Subsidiaries of the Company, the Capital Stock of which constitutes all
or substantially all of the properties and assets of the Company, shall be
deemed to be the transfer of all or substantially all of the properties and
assets of the Company.

Notwithstanding the foregoing clauses (1), (2) and (3):

(a)       any
Restricted Subsidiary of the Company may consolidate with, merge into or
transfer all or part of its properties and assets to the Company; and

(b)       the
Company may merge with an Affiliate that is (x) a corporation that has no
material assets or liabilities and which was incorporated solely for the
purpose of reincorporating the Company in another jurisdiction or (y) a
Restricted Subsidiary of the Company that is a Guarantor so long as all assets
of the Company and the Restricted Subsidiaries immediately prior to such
transaction are owned by such Restricted Subsidiary and its Restricted
Subsidiaries immediately after the consummation thereof.

Each Guarantor (other than any Guarantor whose
Guarantee is to be released in accordance with the terms of this Indenture)
shall not, and the Company shall not cause or permit any Guarantor to,
consolidate with or merge with or into any Person other than the Company or any
other Guarantor unless:

(1)                   the
entity formed by or surviving any such consolidation or merger (if other than
the Guarantor) or to which such sale, lease, conveyance or other disposition

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shall have been made is a corporation organized and existing under the
laws of the United States or any State thereof or the District of Columbia;

(2)                   such
entity assumes by supplemental indenture all of the obligations of the
Guarantor on the Guarantee;

(3)                   immediately
after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing; and

(4)                   immediately
after giving effect to such transaction and the use of any net proceeds
therefrom on a pro  forma basis, the Company could satisfy the
provisions of clause (2) of the first paragraph of this Section 5.1.

Any merger or consolidation of a Restricted Subsidiary
with and into the Company (with the Company being the surviving entity) or
another Guarantor that is a Wholly Owned Subsidiary of the Company need only
comply with clause (4) of the first paragraph of this Section 5.1.

SECTION 5.2            Successor Entity Substituted.

Upon any consolidation or merger, or any sale, lease,
conveyance or other disposition of all or substantially all of the assets of
the Company or any assignment of its obligations under this Indenture in
accordance with Section 5.1 hereof, upon assumption by the successor
corporation, by supplemental indenture, executed and delivered to the Trustee
and satisfactory in form to the Trustee, of the due and punctual payment of the
principal of, premium, if any, and interest on all of the Notes and the due and
punctual performance and observance of all the covenants and conditions of this
Indenture to be performed or observed by the Company, the surviving entity
formed by such consolidation or into or with which the Company is merged or to
which such sale, lease, conveyance or other disposition or assignment is made
will succeed to, and be substituted for, and may exercise every right and power
of, the Company under this Indenture with the same effect as if such surviving
entity has been named as the Company herein and such surviving entity may cause
to be signed and may issue in its own name or in the name of the Company, any
or all Notes issuable hereunder and the predecessor Company in the case of a
sale, lease, conveyance or other disposition or assignment, will be released
from all obligations under the Notes.

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ARTICLE VI

DEFAULT AND REMEDIES 

SECTION 6.1            Events of Default.

“Event of Default”, whenever used herein, means any
one of the following events (whatever the reason for such Event of Default and
whether or not it shall be occasioned or prohibited by the provisions of
Article X or Article XII and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or
governmental body):

(a)       the
failure to pay interest on any Notes when the same becomes due and payable and
the default continues for a period of 30 days (whether or not such payments
shall be prohibited by the subordination provisions of this Indenture);

(b)       the
failure to pay the principal on any Notes, when such principal becomes due and
payable, at maturity, upon redemption or otherwise (including the failure to
make a payment to purchase Notes tendered pursuant to a Change of Control Offer
or a Net Proceeds Offer) (whether or not such payments shall be prohibited by
the subordination provisions of this Indenture);

(c)       a
default in the observance or performance of any other covenant or agreement
contained in this Indenture which default continues for a period of 30 days
after the Company receives written notice specifying the default (and demanding
that such default be remedied) from the Trustee or the Holders of at least 25% of the outstanding principal amount of
the Notes;

(d)       the
failure to pay at final stated maturity (giving effect to any applicable grace
periods and any extensions thereof) the principal amount of any Indebtedness of
the Company or any Restricted Subsidiary (other than a Receivables Entity) of
the Company, or the acceleration of the final stated maturity of any such
Indebtedness (which acceleration is not rescinded, annulled or otherwise cured
within 30 days of receipt by the Company or such Restricted Subsidiary of
notice of any such acceleration) if the aggregate principal amount of such
Indebtedness, together with the principal amount of any other such Indebtedness
in default for failure to pay principal at final stated maturity or which has
been accelerated (in each case with respect to which the 30-day period
described above has elapsed), aggregates $20.0 million or more at any time;

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(e)       one
or more judgments in an aggregate amount in excess of $20.0 million shall have been
rendered against the Company or any of its Significant Subsidiaries and such
judgments remain undischarged, unpaid or unstayed for a period of 60 days after
such judgment or judgments become final and non-appealable;

(f)        A court of competent jurisdiction
enters a Bankruptcy Order under any Bankruptcy Law that:

(1)       is
for relief against the Company or any of its Significant Subsidiaries in an
involuntary case or proceeding, or

(2)       appoints a
Custodian of the Company or any of its Significant Subsidiaries for all or
substantially all of its respective properties, or

(3)       orders
the liquidation of the Company or any of its Significant Subsidiaries.

and in each case the order or decree remains unstayed and in effect for
60 consecutive days;

(g)       The
Company or any Significant Subsidiary pursuant to or within the meaning of any
Bankruptcy Law:

(1)       commences
a voluntary case or proceeding, or

(2)       consents
to the entry of a Bankruptcy Order for relief against it in an involuntary case
or proceeding, or

(3)       consents to the
appointment of a Custodian of it or for all or substantially all of its
property, or

(4)       makes
a general assignment for the benefit of its creditors or files a proposal or
scheme of arrangement involving the rescheduling or composition of its indebtedness,
or

(5)       consents to the
filing of a petition in bankruptcy against it; or

(h)       any
Guarantee of a Significant Subsidiary ceases to be in full force and effect or
any Guarantee of a Significant Subsidiary is declared to be null and void and
unenforceable or any Guarantee of a Significant Subsidiary is found to be
invalid or any Guarantor that is a Significant Subsidiary denies its liability
under its Guarantee (other than by reason of release of a Guarantor in
accordance with the terms of this Indenture).

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SECTION 6.2            Acceleration.

(a)       If
an Event of Default (other than an Event of Default specified in Section 6.1(f)
or 6.1(g) above with respect to the Company) shall occur and be continuing,
then, and in every such case, unless the principal of all the Notes shall have
already become due and payable, either the Trustee or the Holders of not less
than 25% in aggregate principal amount of the then outstanding Notes, by notice
in writing to the Company and the Representative under the Senior Credit Facility
(and to the Trustee if given by Holders) (the “Acceleration Notice”), may
declare all of the unpaid principal of and accrued interest thereon to be, and
the same (x) shall become immediately due and payable, or (y) if there are any
amounts outstanding under the Senior Credit Facility, shall become immediately
due and payable upon the first to occur of an acceleration under the Senior
Credit Facility or five business days after receipt by the Company and the
Representative under the Senior Credit Facility of such Acceleration Notice but
only if such Event of Default is then continuing. If an Event of Default
specified in Section 6.1(f) or
6.1(g) with respect to the Company occurs and is continuing, all unpaid
principal of and accrued interest due and payable on all the outstanding Notes
shall ipso  facto become and be immediately due and payable
without any declaration, notice or other act on the part of the Trustee or any
Holder.

(b)       At
any time after a declaration of acceleration with respect to the Notes as
described in the preceding paragraph, the Holders of a majority in aggregate
principal amount of the Notes, by written notice to the Company and the
Trustee, may rescind and cancel, on behalf of all Holders, such declaration and
its consequences:

(1)       if
the rescission would not conflict with any judgment or decree;

(2)       if
all existing Events of Default have been cured or waived except nonpayment of
principal or interest that has become due solely because of the acceleration;

(3)       to
the extent the payment of such interest is lawful, interest on overdue
installments of interest and overdue principal, which has become due otherwise
than by such declaration of acceleration, has been paid;

(4)       if
the Company has paid the Trustee its reasonable compensation and reimbursed the
Trustee for its expenses, disbursements and advances; and

(5)       in the event
of the cure or waiver of an Event of Default of the type described in Section
6.1(f) or (g), the Trustee shall have received an Officers’ Certificate to the
effect that such Event of Default has been cured or waived.

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No such rescission shall affect any subsequent Default
or impair any right consequent thereto.

In the event that the maturity of the Notes is
accelerated pursuant to this Section 6.2, 100% of the principal amount thereof
plus accrued interest to the date of payment shall become due and payable.

SECTION 6.3            Other Remedies.

If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy by proceeding at law or in equity to
collect the payment of principal of or interest on the Notes or to enforce the
performance of any provision of the Notes or this Indenture.

The Trustee may maintain a proceeding even if it does
not possess any of the Notes or does not produce any of them in the proceeding,
and any such proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Notes in respect of which such judgment
has been recovered.

SECTION 6.4            Waiver of Past Default.

Subject to Sections 6.7 and 9.2, prior to the
declaration of acceleration of the maturity of the Notes, the Holder or Holders
of not less than a majority in aggregate principal amount of the Notes at the
time outstanding by written notice to the Company and the Trustee may waive on
behalf of all the Holders any past default under this Indenture and its
consequence, except a default in the payment of principal of or interest on any
Note or a default with respect to any covenant or provision which cannot be
modified or amended without the consent of the Holder of each outstanding Note
affected pursuant to Section 9.2.

SECTION 6.5            Control by Majority.

The Holders of a majority in aggregate principal
amount of the then outstanding Notes may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on it, including, without limitation, any remedies
provided for in Section 6.3. However, the Trustee may refuse to follow any
direction that conflicts with law, the Notes or this Indenture, or that the
Trustee determines may be unduly prejudicial to the rights of another
Securityholder or that may involve the Trustee in personal liability.

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SECTION 6.6            Limitation on Suits.

A Securityholder may not pursue any remedy with
respect to this Indenture or the Notes unless:

(a)       the
Holder gives to the Trustee written notice of a continuing Event of Default;

(b)       the
Holders of at least 25% in
principal amount of the then outstanding Notes make a written request to the
Trustee to pursue a remedy;

(c)       such
Holder or Holders offer and, if requested, provide to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense;

(d)       the
Trustee does not comply with the request within 30 days after receipt of the
request and the offer of indemnity; and

(e)       during
such 30-day period the Holders of at least a majority in principal amount of
the then outstanding Notes do not give the Trustee a direction which is
inconsistent with the request.

A Securityholder may not use this Indenture to prejudice
the rights of another Securityholder or to obtain a preference or priority over
such other Securityholder.

SECTION 6.7            Rights of Holders To Receive Payment.

Notwithstanding any other provision of this Indenture,
the right of any Holder to receive payment of principal of and interest on a
Note, on or after the respective due dates expressed in the Note, or to bring
suit for the enforcement of any such payment on or after such respective dates,
is absolute and unconditional and shall not be impaired or affected without the
consent of such Holder.

SECTION 6.8            Collection Suit by Trustee.

If an Event of Default specified in Section 6.l(a) or
(b) occurs and is continuing, the Trustee may recover judgment in its own name
and as trustee of an express trust against the Company or any other obligor on
the Notes for the whole amount of principal and accrued interest remaining
unpaid, together with interest overdue on principal and, to the extent that
payment of such interest is lawful, interest on overdue installments of
interest, in each case at the interest rate and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

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SECTION 6.9            Trustee May File Proofs of Claim.

The Trustee shall be entitled and empowered to file
such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Securityholders allowed in any
judicial proceedings relative to the Company or any of its Subsidiaries (or any
other obligor upon the Notes), its creditors or its property and shall be
entitled and empowered to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same, and any
Custodian in any such judicial proceedings is hereby authorized by each
Securityholder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the
Securityholders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agent
and counsel, and any other amounts due the Trustee under Section 7.7. Nothing
herein contained shall be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Securityholder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Securityholder in any such proceeding.

SECTION 6.10          Priorities.

If the Trustee collects any money pursuant to this
Article VI, it shall pay out such money in the following order:

First: to the Trustee for amounts due under Section
7.7;

Second: to Holders for amounts due and unpaid on the
Notes for principal and interest, ratably, without preference or priority of
any kind, according to the amounts due and payable on the Notes for principal
and interest, respectively; and

Third: to the Company.

The Trustee, upon prior written notice to the Company,
may fix a record date and payment date for any payment to Securityholders
pursuant to this Article VI.

SECTION 6.11          Undertaking for Costs.

In any suit for the enforcement of any right or remedy
under this Indenture or in any suit against the Trustee for any action taken or
omitted by it as Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the

 75

costs of the suit, and the court in its discretion may assess
reasonable costs, including reasonable attorneys’ fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.11 does not apply
to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7, or a suit
by any Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the outstanding Notes.

SECTION 6.12          Rights and Remedies Cumulative.

No right or remedy herein conferred upon or reserved
to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent
the concurrent assertion or employment of any other appropriate right or
remedy.

SECTION 6.13          Delay or Omission Not Waiver.

No delay or omission of the Trustee or of any Holder
of any Note to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article VI or by law to the Trustee or to the Holders may be exercised from
time to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

ARTICLE VII

TRUSTEE 

SECTION 7.1            Duties of Trustee.

(a)       If
an Event of Default has occurred and is continuing, the Trustee shall exercise
such of the rights and powers vested in it by this Indenture and use the same
degree of care and skill in their exercise as a prudent Person would exercise
or use under the circumstances in the conduct of his own affairs.

(b)       Except
during the continuance of an Event of Default:

(i)        The
Trustee need perform only those duties as are specifically set forth in this
Indenture or the TIA and no others and no implied covenants or obligations
shall be read into this Indenture against the Trustee.

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(ii)       In
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Trustee and conforming
to the requirements of this Indenture. However, in the case of any such
certificate or opinions which by any provision hereof are specifically required
to be furnished to the Trustee, the Trustee shall examine such certificates and
opinions to determine whether or not they conform to the requirements of this
Indenture.

(c)       Notwithstanding
anything to the contrary herein contained, the Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act, or
its own willful misconduct, except that:

(i)        This
paragraph does not limit the effect of paragraph (b) of this Section 7.1.

(ii)       The
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts.

(iii)      The Trustee shall not be liable with respect to
any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Sections 6.4 and 6.5.

(d)       No
provision of this Indenture shall require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder or in the exercise of any of its rights or powers if it
shall have reasonable grounds for believing that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.

(e)       Every
provision of this Indenture that in any way relates to the Trustee is subject
to paragraphs (a), (b), (c) and (d) of this Section 7.1.

(f)        The Trustee
shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the
Trustee need not be segregated from other funds except to the extent required
by law.

SECTION 7.2            Rights of Trustee.

Subject to Section 7.1 :

(a)       The
Trustee may rely and shall be protected in acting or refraining from acting
upon any document reasonably believed by it to be genuine and to have been

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signed or presented by the proper Person. The Trustee shall not be
bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters as it
may see fit.

(b)       Before
the Trustee acts or refrains from acting with respect to any matter
contemplated by this Indenture, it may require an Officers’ Certificate or an
Opinion of Counsel, which shall conform to the provisions of Section 13.5. The
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on such certificate or opinion.

(c)       The
Trustee may act through its attorneys and agents and shall not be responsible
for the misconduct or negligence of any agent (other than the negligence or
willful misconduct of an agent who is an employee of the Trustee) appointed
with due care.

(d)       The
Trustee shall not be liable for any action it takes or omits to take in good
faith and without negligence which it reasonably believes to be authorized or
within its rights or powers conferred upon it by this Indenture or the TIA.

(e)       The
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Holders, pursuant to the provisions of this Indenture, unless such Holders
shall have offered to the Trustee security or indemnity against the costs,
expenses and liabilities which may be incurred therein or thereby.

(f)        The Trustee
may consult with counsel of its selection and the advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon.

(g)       The
rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to,
and shall be enforceable by, the Trustee in each of its capacities hereunder,
and each agent, custodian and other Person employed to act hereunder; and

(h)       The
Trustee may request that the Company deliver an Officers’ Certificate setting
forth the names of individuals and or titles of officers authorized at such time
to take specified actions pursuant to this Indenture, which Officers’
Certificate may be signed by any person authorized to sign an Officers’
Certificate,

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including any person specified as so authorized in any such certificate
previously delivered and not superseded.

SECTION 7.3            Individual Rights of Trustee.

The Trustee in its individual capacity or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with
the Company, or its Subsidiaries and Affiliates with the same rights it would
have if it were not Trustee. Any Agent may do the same with like rights.
However, the Trustee is subject to Sections 7.10 and 7.11.

SECTION 7.4            Trustee’s Disclaimer.

The Trustee makes no representation as to the validity
or adequacy of this Indenture, the Notes or the Guarantees, and it shall not be
accountable for the Company’s use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Company in this Indenture, or any
statement in the Notes other than the Trustee’s certificate of authentication.

SECTION 7.5            Notice of Defaults.

If a Default or an Event of Default with respect to
the Notes occurs and is continuing and is actually known to a Responsible
Officer, the Trustee shall mail to each Holder a notice of the Default or Event
of Default within 60 days after it occurs or, if later, within 10 days after
such Default or Event of Default becomes known to the Trustee, unless such
Default or Event of Default has been cured. Except in the case of a Default or
Event of Default in the payment of principal of or interest on any Note,
including an acceleration, and the failure to make payment when required by
Sections 4.12 and 4.15, the Trustee may withhold the notice to the Holders if
and so long as a committee of its Responsible Officers determines in good faith
that withholding the notice is in the interest of the Holders.

SECTION 7.6            Reports by Trustee to Holders.

Within 60 days after each November 15 beginning with
November 15, 2003, the Trustee shall transmit to each Securityholder a report
dated as of May 15 of the relevant year that complies with the requirements of
TIA §  313(a). The Trustee also
shall comply with TIA § 313(b) and TIA § 313(c) and (d). A copy of such report
at the time of its transmission to Securityholders shall be filed with the SEC,
if required, with each stock exchange, if any, on which the Notes are listed
and with the Company.

The Company shall promptly notify the Trustee if the
Notes become listed on any stock exchange and the Trustee shall comply with TIA
§ 313(d).

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SECTION 7.7            Compensation and Indemnity.

The Company shall pay to the Trustee, the Paying Agent
and the Registrar from time to time such compensation for their respective
services rendered hereunder as agreed in writing. The Trustee’s compensation
shall not be limited by any law on compensation of a trustee of an express
trust. The Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket disbursements, expenses and advances (including reasonable fees
and expenses of counsel) incurred or made by each of them in connection with
the performance of its duties under this Indenture. Such expenses shall include
the reasonable compensation, reasonable out-of-pocket disbursements and
reasonable expenses of the Trustee’s agents and counsel.

The Company shall indemnify and hold harmless the
Trustee and their agents, employees, officers, directors and shareholders
against any and all claims, expenses, loss or liability incurred by it arising
out of or in connection with the administration of its duties under this
Indenture. The Trustee shall notify the Company promptly of any claim asserted
against it for which it may seek indemnity. The Company shall defend the claim
with counsel designated by the Company, who may be outside counsel to the
Company, but shall in all events be reasonably satisfactory to the Trustee, and
the Trustee shall cooperate in the defense. The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel; provided that the Company will not be required to pay such fees
and expenses if it assumes the Trustee’s defense and there is no conflict of
interest between the Company and the Trustee in connection with such defense.
The Company need not pay for any settlement made without its written consent,
which consent may not be unreasonably withheld. The Company need not reimburse
any expense or indemnify against any loss or liability incurred by the Trustee
through the Trustee’s own willful misconduct, negligence or bad faith.

To secure the Company’s payment obligations in this
Section 7.7, the Trustee shall have a lien prior to the Notes and the
Guarantees on all money or property held or collected by it in its capacity as
Trustee, except money or property held in trust to pay principal of or interest
on particular Notes.

When the Trustee incurs expenses or renders services
after an Event of Default specified in Section 6.l(f) or 6.1(g) occurs, the
expenses and the compensation for the services are intended to constitute
expenses of administration under any Bankruptcy Law.

This section shall survive the resignation or removal
of the Trustee.

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SECTION 7.8            Replacement of Trustee.

The Trustee may resign at any time by so notifying the
Company in writing, such resignation to be effective upon the appointment of a
successor Trustee. The Holders of a majority in principal amount of the
outstanding Notes may remove the Trustee by so notifying the Trustee in writing
and may appoint a successor Trustee with the Company’s consent which consent
shall not be unreasonably withheld. The Company may remove the Trustee if:

(a)       the
Trustee fails to comply with Section 7.10;

(b)       the
Trustee is adjudged a bankrupt or an insolvent;

(c)       a
receiver or other public officer takes charge of the Trustee or its property;

or

(d)       the
Trustee becomes incapable of acting.

If the Trustee resigns or is removed or if a vacancy
exists in the office of Trustee for any reason (the Trustee in such event being
referred to herein as the retiring Trustee), the Company shall promptly appoint
a successor Trustee. Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.

A successor Trustee
shall deliver a written acceptance of its appointment to the retiring Trustee
and to the Company. Immediately after that, the retiring Trustee shall transfer
all property held by it as Trustee to the successor Trustee (subject to the
lien provided in Section 7.7), the resignation or removal of the retiring
Trustee shall become effective, and the successor Trustee shall have all the
rights, powers and duties of the Trustee under this Indenture. A successor
Trustee shall mail notice of its succession to each Securityholder.

If a successor Trustee does not take office within 60
days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Company or the Holders of at least 25% in principal amount of then
outstanding Notes may petition any court of competent jurisdiction at the
expense of the Company for the appointment of a successor Trustee.

If the Trustee fails to comply with Section 7.10, any
Securityholder may petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee.

Notwithstanding replacement of the Trustee pursuant to
this Section 7.8, the Company’s obligations under Section 7.7 shall continue
for the benefit of the retiring Trustee.

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SECTION 7.9            Successor Trustee by Merger, Etc.

If the Trustee consolidates with, merges or converts
into, or transfers all or substantially all of its corporate trust business to,
another corporation or national banking association, the resulting, surviving
or transferee corporation or national banking association without any further
act shall be the successor Trustee; provided such corporation shall be
otherwise qualified and eligible under this Article VII.

SECTION 7.10          Eligibility; Disqualification.

This Indenture shall always have a Trustee who
satisfies the requirements of TIA § 310(a)(l) and (2). The Trustee shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
§  310(b); provided that
there shall be excluded from the operation of TIA §  310(b)(l) any indenture or indentures under which other
securities, or certificates of interest or participation in other securities,
of the Company are outstanding if the requirements for such exclusion set forth
in TIA §  310(b)(l) are met. The
provisions of TIA §  310 shall
apply to the Company, as obligor of the Notes.

SECTION 7.11          Preferential Collection of Claims Against
Company.

The Trustee shall comply with TIA §  311(a), excluding any creditor
relationship listed in TIA §  31l(b).
A Trustee who has resigned or been removed shall be subject to TIA §  311(a) to the extent indicated therein.

ARTICLE VIII

DISCHARGE OF INDENTURE; DEFEASANCE

SECTION 8.1            Termination of the Company’s Obligations.

The Company may terminate its obligations under the
Notes and the obligations of the Guarantors under the Guarantees, as the case
may be, and this Indenture, except those obligations referred to in the
penultimate paragraph of this Section 8.1, if all Notes previously
authenticated and delivered (other than destroyed, lost or stolen Notes which
have been replaced or paid or Notes for whose payment U.S. Legal Tender has
theretofore been deposited with the Trustee or the Paying Agent in trust or
segregated and held in trust by the Company and thereafter repaid to the
Company, as provided in Section 8.5) have been delivered to the Trustee for
cancellation and the Company has paid all sums payable by it hereunder, or if:

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(a)  either (i) pursuant to Article III, the
Company shall have given notice to the Trustee and mailed a notice of
redemption to each Holder of the redemption of all of the Notes under
arrangements satisfactory to the Trustee for the giving of such notice or (ii)
all Notes have otherwise become due and payable hereunder;

(b)  the Company shall have irrevocably
deposited or caused to be deposited with the Trustee, as trust funds in trust
solely for the benefit of the Holders for that purpose, U.S. Legal Tender in
such amount as is sufficient without consideration of reinvestment of interest,
to pay principal of, premium, if any, and interest on the outstanding Notes to
maturity or redemption; provided that the Trustee shall have been
irrevocably instructed to apply such U.S. Legal Tender to the payment of said
principal, premium, if any, and interest with respect to the Notes; and provided,
further, that from and after the time of deposit, the money deposited
shall not be subject to the rights of holders of Senior Debt pursuant to the
provisions of Article X and Article XII;

(c)  no Default or Event of Default with
respect to this Indenture, the Notes or the Guarantees shall have occurred and
be continuing on the date of such deposit or shall occur immediately after
giving effect to such deposit and such deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Company is a party or by which it is bound;

(d)  the Company shall have paid all other
sums payable by it hereunder; and

(e)  the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent providing for or relating to the termination of the
Company’s and the Guarantors’ obligations under the Notes and the Guarantees,
as the case may be, and this Indenture have been complied with. Such Opinion of
Counsel shall also state that such satisfaction and discharge does not result
in a default under the Senior Credit Facility (if then in effect) or any other
material agreement or material instrument then known to such counsel that binds
or affects the Company.

Notwithstanding the foregoing paragraph, the Company’s
obligations in Sections 2.5, 2.6, 2.7, 2.10, 4.1, 4.2, 7.7, 8.5 and 8.6 shall
survive until the Notes are no longer outstanding pursuant to the last
paragraph of Section 2.8. After the Notes are no longer outstanding, the
Company’s obligations in Sections 7.7, 8.5 and 8.6 shall survive.

After such delivery or irrevocable deposit, the
Trustee upon request shall acknowledge in writing the discharge of the Company’s
and the Guarantors’ obligations under the Notes and the Guarantees, as the case
may be, and this Indenture except for those surviving obligations specified
above.

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SECTION 8.2            Legal Defeasance and Covenant Defeasance.

(a)       The
Company may, at its option by Board Resolution of the Board of Directors, at
any time, elect to have either paragraph (b) or (c) below be applied to all
outstanding Notes upon compliance with the conditions set forth in Section 8.3.

(b)       Upon
the Company’s exercise under paragraph (a) hereof of the option applicable to
this paragraph (b), each of the Company and the Guarantors shall, subject to
the satisfaction of the conditions set forth in Section 8.3, be deemed to have
been discharged from its obligations with respect to all outstanding Notes on
the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that the Company shall
be deemed to have paid and discharged the entire Indebtedness represented by
the outstanding Notes, which shall thereafter be deemed to be “outstanding”
only for the purposes of Section 8.4 hereof and the other Sections of this
Indenture referred to in (i) and (ii) below, and to have satisfied all its
other obligations under such Notes and this Indenture (and the Trustee, on
demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), and Holders of the Notes and any amounts deposited
under Section 8.3 hereof shall cease to be subject to any obligations to, or
the rights of, any holder of Senior Debt under Article X or otherwise, except
for the following provisions, which shall survive until otherwise terminated or
discharged hereunder: (i) the rights of Holders of outstanding Notes to receive
solely from the trust fund described in Section 8.4 hereof, and as more fully
set forth in such Section, payments in respect of the principal of and interest
on such Notes when and to the extent such payments are due, (ii) the Company’s
obligations with respect to such Notes under Article II  and Section 4.2 hereof, (iii) the rights,
powers, trusts, duties and immunities of the Trustee hereunder and the Company’s
obligations in connection therewith, including Section 7.7 hereof and (iv) this
Article VIII. Subject to compliance with this Article VIII, the Company may
exercise its option under this paragraph (b) notwithstanding the prior exercise
of its option under paragraph (c) hereof.

(c)       Upon
the Company’s exercise under paragraph (a) hereof of the option applicable to
this paragraph (c), each of Vertis Holdings, the Company and the Guarantors
shall, subject to the satisfaction of the conditions set forth in Section 8.3
hereof, be released from its obligations under the covenants contained in
Sections 4.8 through 4.15, Sections 4.18 and 4.19 and Article V hereof with
respect to the outstanding Notes on and after the date the conditions set forth
below are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall
thereafter be deemed not “outstanding” for the purposes of any direction,
waiver, consent or declaration or act of Holders (and the consequences of any
thereof) in connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Notes shall not
be deemed outstanding for accounting purposes) and Holders of the Notes and any
amounts deposited under Section 8.3 hereof shall cease to be subject to any
obligations to, or the rights of, any holder of Senior Debt under Article X,

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Article XII or otherwise. For this purpose, such Covenant Defeasance
means that, with respect to the outstanding Notes, the Company and its
Subsidiaries may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event or Default under Section 6.1(c) hereof, but,
except as specified above, the remainder of this Indenture and such Notes shall
be unaffected thereby. In addition, upon the Company’s exercise under paragraph
(a) hereof of the option applicable to this paragraph (c), subject to the
satisfaction of the conditions set forth in Section 8.3 hereof, Sections 6.1(c)
and 6.1(e) shall not constitute Events of Default.

SECTION 8.3            Conditions to Legal Defeasance or
Covenant Defeasance.

The following shall be the conditions to the
application of either Section 8.2(b) or 8.2(c) hereof to the outstanding Notes:

In order to exercise either Legal Defeasance or Covenant
Defeasance:

(a)  the Company must irrevocably deposit
with the Trustee, in trust, for the benefit of the Holders, U.S. Legal Tender
or U.S. Government Obligations which through the scheduled payment of principal
and interest in respect thereof in accordance with their terms, will provide,
not later than one day before the due date of any payment on the Notes, U.S.
Legal Tender, or a combination thereof, in such amounts as will be sufficient,
in the opinion of a nationally recognized firm of independent public
accountants, to pay the principal of, premium, if any, and interest on the
Notes on the stated date for payment thereof or on the applicable redemption
date, as the case may be, of such principal or installment of principal of or
interest on the Notes; provided that the Trustee shall have received an
irrevocable written order from the Company instructing the Trustee to apply
such U.S. Legal Tender or the proceeds of such U.S. Government Obligations to
said payments with respect to the Notes;

(b)  in the case of an election under
Section 8.2(b) hereof, the Company shall have delivered to the Trustee an
Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that (A) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling or (B) since the date of this
Indenture, there has been a change in the applicable federal income tax law, in
either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of the Notes will not recognize income, gain or loss
for federal income tax purposes as a result of such Legal Defeasance and will
be subject to federal

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income tax on the same amounts, in the same manner and at the same
times as would have been the case if such Legal Defeasance had not occurred;

(c)  in the case of an election under
Section 8.2(c) hereof, the Company shall have delivered to the Trustee an
Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that the Holders of the Notes will not recognize income, gain or
loss for federal income tax purposes as a result of such Covenant Defeasance
and will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;

(d)  no Default or Event of Default or event
which with notice or lapse of time or both would become a Default or an Event
of Default with respect to the Notes shall have occurred and be continuing on
the date of such deposit (other than a Default or Event of Default resulting
from the incurrence of Indebtedness all or a portion of the proceeds of which
will be used to defease the Notes pursuant to this Article VII concurrently
with such incurrence) or insofar as Sections 6.1(f) and 6.1(g) hereof are
concerned, at any time in the period ending on the 91st day after the date of
such deposit;

(e)  such Legal Defeasance or Covenant
Defeasance shall not result in a breach or violation of or constitute a default
under this Indenture or any other material agreement or instrument to which the
Company or any of its Subsidiaries is a party or by which the Company or any of
its Subsidiaries is bound;

(f)  the Company shall have delivered to the
Trustee an Officers’ Certificate stating that the deposit was not made by the
Company with the intent of preferring the Holders over any other creditors of
the Company or with the intent of defeating, hindering, delaying or defrauding
any other creditors of the Company or others;

(g)  the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent provided for or relating to the Legal Defeasance or
the Covenant Defeasance have been complied with; and

(h)  the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that (i) the trust funds will not
be subject to any rights of any holders of Senior Debt, including, without
limitation, those arising under this Indenture, and (ii) assuming no
intervening bankruptcy or insolvency of the Company between the date of deposit
and the 91st day following the deposit and that no Holder is an insider of the
Company, after the 91st day following the deposit, the trust funds will not be
subject to the effect of any applicable Bankruptcy Law.

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Notwithstanding the foregoing, the Opinion of Counsel
required by clause (b) above of this Section 8.3 need not be delivered if all
Notes not theretofore delivered to the Trustee for cancellation (i) have become
due and payable, (ii) will become due and payable on the Maturity Date within
one year or (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of redemption
by the Trustee in the name, and at the expense, of the Company.

SECTION 8.4            Application of Trust Money.

The Trustee or Paying Agent shall hold in trust U.S.
Legal Tender or U.S. Government Obligations deposited with it pursuant to this
Article VIII, and shall apply the deposited U.S. Legal Tender and the money
from U.S. Government Obligations in accordance with this Indenture to the
payment of principal of and interest on the Notes. The Trustee shall be under
no obligation to invest said U.S. Legal Tender or U.S. Government Obligations
except as it may agree with the Company.

The Company shall pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the U.S.
Legal Tender or U.S. Government Obligations deposited pursuant to Section 8.3
hereof or the principal and interest received in respect thereof other than any
such tax, fee or other charge which by law is for the account of the Holders of
the outstanding Notes.

Anything in this Article VIII to the contrary
notwithstanding, the Trustee shall deliver or pay to the Company from time to
time upon the Company’s request any U.S. Legal Tender or U.S. Government
Obligations held by it as provided in Section 8.3 hereof which, in the opinion
of a nationally recognized firm of independent public accountants expressed in
a written certification thereof delivered to the Trustee, are in excess of the
amount thereof that would then be required to be deposited to effect an
equivalent Legal Defeasance or Covenant Defeasance.

SECTION 8.5            Repayment to the Company.

Subject to this Article VIII, the Trustee and the
Paying Agent shall promptly pay to the Company upon request any excess U.S.
Legal Tender or U.S. Government Obligations held by them at any time and
thereupon shall be relieved from all liability with respect to such money. The
Trustee and the Paying Agent shall pay to the Company upon request any money
held by them for the payment of principal or interest that remains unclaimed
for two years; provided that the Trustee or such Paying Agent, before
being required to make any payment, may at the expense of the Company cause to
be published once in a newspaper of general circulation in the City of New York
or mail to each Holder entitled to such money notice that such money remains
unclaimed and that after a date specified therein which shall be at least 30
days from the date of such publication or mailing any

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unclaimed balance of such money then remaining will be repaid to the
Company. After payment to the Company, Holders entitled to such money must look
to the Company for payment as general creditors unless an applicable law
designates another Person.

SECTION 8.6            Reinstatement.

If the Trustee or Paying Agent is unable to apply any
U.S. Legal Tender or U.S. Government Obligations in accordance with this
Article VIII by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to this Article VIII until such time as the Trustee or
Paying Agent is permitted to apply all such U.S. Legal Tender or U.S.
Government Obligations in accordance with this Article VIII; provided
that if the Company has made any payment of interest on or principal of any
Notes because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of such Notes to receive such payment
from the U.S. Legal Tender or U.S. Government Obligations held by the Trustee
or Paying Agent.

ARTICLE IX

AMENDMENTS, SUPPLEMENTS AND WAIVERS 

SECTION 9.1            Without Consent of Holders.

Without the consent of any Holders, the Company and
the Guarantors, when authorized by resolutions of their respective Boards of
Directors (copies of which shall be delivered to the Trustee), and the Trustee
may amend or supplement this Indenture, the Notes or the Guarantees without
notice to any Holder for any of the following purposes:

(a)  to cure any ambiguity, defect or
inconsistency herein;

(b)  to add to the covenants of the Company
for the benefit of the Holders, or surrender any right or power herein
conferred upon the Company;

(c)  to provide for collateral for the
Notes;

(d)  to provide for uncertificated Notes in
addition to or in place of certificated Notes;

(e)  to effect or maintain the qualification
of this Indenture under the TIA;

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(f)  to evidence the succession in
accordance with Article V hereof of another Person to the Company and the
assumption by any such successor of the covenants of the Company herein and in
the Notes; or

(g)  to make any other change that does not
adversely affect the rights of any Holder in any material respect; provided
that in making such change, the Trustee may rely upon an Opinion of Counsel
stating that such change does not adversely affect the rights of any Holder in
any material respect.

SECTION 9.2            With Consent of Holders.

Subject to Section 6.7 and the provisions of this
Section 9.2, the Company and the Guarantors, when authorized by resolutions of
their respective Boards of Directors (copies of which shall be delivered to the
Trustee), and the Trustee may amend or supplement this Indenture with the
written consent of the Holders of at least a majority in aggregate principal
amount of the Notes then outstanding. Subject to Section 6.7 and the provisions
of this Section 9.2, the Holders of, in the aggregate, at least a majority in
principal amount of the then outstanding Notes affected may waive compliance by
the Company with any provision of this Indenture without notice to any other
Securityholder. However, without the consent of each Securityholder affected,
an amendment, supplement or waiver, including a waiver pursuant to Section 6.4
may not:

(a)       reduce
the percentage of principal amount of Notes whose Holders must consent to an
amendment, supplement or waiver of any provision of this Indenture or the
Notes;

(b)       reduce
the rate of or change or have the effect of changing the time for payment of
interest, including defaulted interest, on any Note;

(c)       reduce
the principal of or change or have the effect of changing the fixed maturity of
any Notes, or change the date on which any Notes may be subject to redemption
or reduce the redemption price therefor;

(d)       make
the principal of, or any interest on, any Note payable in money other than that
stated in the Note;

(e)       make
any change in provisions of this Indenture protecting the right of each Holder
to receive payment of principal of and interest on such Note on or after the
due date thereof or to bring suit to enforce such payment, or permitting
Holders of a majority in principal amount of Notes to waive Defaults or Events
of Default;

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(f)        amend,
change or modify any provisions of this Indenture or the related definitions
affecting the Company’s obligation to make a Change of Control Offer in a
manner which adversely affects the Holders;

(g)       after
the Company’s obligation to purchase Notes arises thereunder, amend, change or
modify in any material respect the obligation of the Company to make and
consummate a Net Proceeds Offer with respect to any Asset Sale that has been
consummated or, after such Asset Sale has been consummated, modify any of the
provisions or definitions with respect thereto;

(h)       modify
or change any provision of this Indenture or the related definitions affecting
the subordination or ranking of the Notes or any Guarantee in a manner which
adversely affects the Holders; or

(i)        release
any Guarantor that is a Significant Subsidiary from any of its obligations
under its Guarantee or this Indenture otherwise than in accordance with the
terms of this Indenture.

It shall not be necessary for the consent of the
Holders under this Section 9.2 to approve the particular form of any proposed
amendment, supplement or waiver, but it shall be sufficient if such consent
approves the substance thereof.

Notwithstanding the foregoing, no amendment shall
modify any provision of Article X or Article XII of this Indenture without the
consent of each holder of any then outstanding Designated Senior Debt.

After an amendment, supplement or waiver under this
Section 9.2 becomes effective, the Company shall mail to the Holders affected
thereby a notice briefly describing the amendment, supplement or waiver. Any
failure of the Company to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

In connection with any amendment, supplement or waiver
under this Article IX, the Company
may, but shall not be obligated to, offer to any Holder who consents to such
amendment, supplement or waiver, or to all Holders, consideration for such
Holder’s consent to such amendment, supplement or waiver.

SECTION 9.3            Compliance with Trust Indenture Act.

Every amendment to or supplement of this Indenture,
the Notes or the Guarantees shall be set forth in a supplemental indenture that
complies with the TIA  as then in
effect.

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SECTION 9.4            Revocation and Effect of Consents.

Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder
and every subsequent Holder of that Note or portion of that Note that evidences
the same debt as the consenting Holder’s Note, even if notation of the consent
is not made on any Note. However, any such Holder or subsequent Holder may
revoke the consent as to his Note or portion of a Note. Such revocation shall
be effective only if the Trustee receives the notice of revocation before the
date the amendment, supplement or waiver becomes effective. Notwithstanding the
above, nothing in this paragraph shall impair the right of any Securityholder
under §  316(b) of the TIA.

The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders entitled to consent to
any amendment, supplement or waiver which record date shall be at least 10 days
prior to the first solicitation of such consent. If a record date is fixed,
then notwithstanding the second and third sentences of the immediately
preceding paragraph, those Persons who were Holders at such record date (or
their duly designated proxies), and only those Persons, shall be entitled to
consent to such amendment, supplement or waiver or to revoke any consent
previously given, whether or not such Persons continue to be Holders after such
record date. Such consent shall be effective only for actions taken within 90
days after such record date.

After an amendment, supplement or waiver becomes
effective, it shall bind every Securityholder unless it makes a change
described in any of clauses (a) through (l) of Section 9.2. In that case the
amendment, supplement or waiver shall bind each Holder of a Note who has consented
to it.

SECTION 9.5            Notation on or Exchange of Notes.

If an amendment, supplement or waiver changes the
terms of a Note, the Trustee may (in accordance with the specific direction of
the Company) request the Holder of the Note to deliver it to the Trustee. The
Trustee may (in accordance with the specific direction of the Company) place an
appropriate notation on the Note about the changed terms and return it to the
Holder. Alternatively, if the Company or the Trustee so determines, the Company
in exchange for the Note shall issue and the Trustee shall authenticate a new
Note (together with related Guarantees of the Guarantors) that reflects the
changed terms. Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or
waiver.

SECTION 9.6            Trustee To Sign Amendments, Etc.

The Trustee shall sign any amendment, supplement or
waiver authorized pursuant to this Article IX if the amendment, supplement or
waiver does not adversely affect

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the rights, duties or immunities of the Trustee. If it does, the
Trustee may, but need not, sign it. In signing any amendment, supplement or
waiver, the Trustee shall be entitled to receive, if requested, an indemnity
reasonably satisfactory to it and to receive, and shall be fully protected in
relying upon, an Officers’ Certificate and an Opinion of Counsel stating that
the execution of any amendment, supplement or waiver authorized pursuant to
this Article IX  is authorized or
permitted by this Indenture. Neither the Company nor any Guarantor may sign an
amendment until its Board of Directors approves it.

ARTICLE X

SUBORDINATION 

SECTION 10.1          Notes Subordinated to Senior Debt.

Anything herein to the contrary notwithstanding, the
Company, for itself and its successors, and each Holder, by his acceptance of
Notes, agrees that the payment of the principal of and interest on the Notes is
subordinated, to the extent and in the manner provided in this Article X, to
the prior payment in full in cash or Cash Equivalents, or such payment duly
provided for to the satisfaction of the holders of Senior Debt, of all Senior
Debt Obligations (including the Senior Debt Obligations with respect to the
Senior Credit Facility, whether outstanding on the Issue Date or thereafter
incurred).

This Article X shall constitute a continuing offer to
all Persons who become holders of, or continue to hold, Senior Debt, and such
provisions are made for the benefit of the holders of Senior Debt and such
holders are made obligees hereunder and any one or more of them may enforce
such provisions.

SECTION 10.2          Suspension of Payment When Senior Debt Is
in Default.

(a)       If
any default occurs and is continuing in the payment when due, whether at
maturity, upon any redemption, by declaration or otherwise, of any principal
of, interest on, unpaid drawings for letters of credit issued in respect of, or
regularly accruing fees with respect to, any Senior Debt (including, without
limitation, guarantees of the foregoing items which constitute Senior Debt) (a “Payment
Default”), then no payment or distribution of any kind or character shall be
made by or on behalf of the Company or any other Person on its or their behalf
with respect to any Obligations or to acquire any of the Notes for cash or
property or otherwise until such Payment Default (and all other Payment
Defaults) shall have been cured or waived in accordance with the terms of the
documentation governing the respective Senior Debt or ceased to exist or all
Senior Debt with respect to which any

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Payment Default has occurred and is continuing shall have been
discharged or paid in full in cash or Cash Equivalents.

(b)       If
any event of default (other than a Payment Default) occurs and is continuing
with respect to any Designated Senior Debt (as such event of default is defined
in the instrument creating or evidencing such Designated Senior Debt)
permitting the holders of such Designated Senior Debt then outstanding to
accelerate the maturity thereof (a “Non-payment Default”), and if the
Representative for the respective issue of Designated Senior Debt gives notice
of the event of default to the Trustee stating that such notice is a payment
blockage notice (a “Payment Blockage Notice”), then during the period (the “Payment
Blockage Period”) beginning upon the delivery of such Payment Blockage Notice
and ending on the earlier of the 180th day after such delivery and the date on
which (x) all events of default with respect to all Designated Senior Debt have
been cured or waived or cease to exist, (y) all Designated Senior Debt with
respect to which any such event of default has occurred and is continuing is
discharged or paid in full in cash or Cash Equivalents, or (z) the Trustee
receives notice thereof from the Representative for the respective issue of Designated
Senior Debt terminating the Payment Blockage Period, neither the Company nor
any other Person on its behalf shall (i) make any payment of any kind or
character with respect to any Obligations or (ii) acquire any of the Notes for
cash or property or otherwise. Notwithstanding anything herein to the contrary,
(x) in no event will a Payment Blockage Period extend beyond 180 days from the
date the applicable Payment Blockage Notice is received by the Trustee and (y)
only one such Payment Blockage Period may be commenced within any 360
consecutive days. For all purposes of this Section 10.2(b), no event of default
which existed or was continuing on the date of the commencement of any Payment
Blockage Period with respect to the Designated Senior Debt shall be, or be
made, the basis for the commencement of a second Payment Blockage Period by the
Representative of such Designated Senior Debt whether or not within a period of
360 consecutive days, unless such event of default shall have been cured or
waived for a period of not less than 90 consecutive days (it being acknowledged
that any subsequent action, or any breach of any financial covenants for a
period ending after the date of commencement of such Payment Blockage Period
that, in either case, would give rise to an event of default pursuant to any
provisions under which an event of default previously existed or was continuing
shall constitute a new event of default for this purpose).

(c)       In
the event that, notwithstanding the foregoing, any payment shall be received by
the Trustee, any Holder or any Paying Agent when such payment is prohibited by
the foregoing provisions of this Section 10.2, such payment shall be held in
trust for the benefit of, and shall be paid over or delivered to, the holders
of Senior Debt (pro  rata to such holders on the basis of the
respective amount of Senior Debt held by such holders) or their respective
Representatives, as their respective interests may appear. The Trustee and any
Paying Agent shall be entitled to rely on information regarding amounts then
due and owing on the Senior Debt, if any, received from the holders of Senior
Debt (or their Representatives)

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or, if such information is not received from such holders or their
Representatives, from the Company and only amounts included in the information
provided to the Trustee and any Paying Agent shall be paid to the holders of
Senior Debt.

Nothing contained in this Article X shall limit the
right of the Trustee or the Holders to take any action to accelerate the
maturity of the Notes and all other Obligations pursuant to Article VI or to
pursue any rights or remedies hereunder; provided that all Senior Debt
thereafter due or declared to be due shall first be paid in full in cash or
Cash Equivalents before the Holders are entitled to receive any payment of any
kind or character with respect to Obligations.

SECTION 10.3                      Obligations
Subordinated to Prior Payment of All Senior Debt on Dissolution, Liquidation or
Reorganization of Company.  

(a)       Upon
any payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to creditors upon any total or partial
liquidation, dissolution, winding-up, reorganization, assignment for the
benefit of creditors or marshaling of assets and liabilities of the Company or
in a bankruptcy, reorganization, insolvency, receivership or other similar
proceeding relating to the Company or its assets, whether voluntary or
involuntary, all Senior Debt Obligations due or to become due shall first be
paid in full in cash or Cash Equivalents, or such payment duly provided for to
the satisfaction of the holders of Senior Debt, before any payment or
distribution of any kind or character is made on account of any Obligations or
for the acquisition of any of the Notes for cash or property or otherwise. Upon
any such dissolution, winding-up, liquidation, reorganization, receivership or
similar proceeding, any payment or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, to which the
Holders or the Trustee would be entitled, except for the provisions hereof,
shall be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Holders, the Trustee or any Paying Agent if received by them,
directly to the holders of Senior Debt (pro  rata to such holders
on the basis of the respective amounts of Senior Debt held by such holders) or
their respective Representatives, or to the trustee or trustees under any
indenture pursuant to which any of such Senior Debt may have been issued, as
their respective interests may appear, for application to the payment of Senior
Debt remaining unpaid until all such Senior Debt has been paid in full in cash
or Cash Equivalents after giving effect to any concurrent payment, distribution
or provision therefor to or for the holders of Senior Debt.

(b)       To
the extent any payment of Senior Debt (whether by or on behalf of the Company,
as proceeds of security or enforcement of any right of setoff or otherwise) is
declared to be fraudulent or preferential, set aside or required to be paid to
any receiver,

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trustee in bankruptcy, liquidating trustee, agent or other similar
Person under any bankruptcy, insolvency, receivership, fraudulent conveyance or
similar law, then, if such payment is recovered by, or paid over to, such
receiver, trustee in bankruptcy, liquidating trustee, agent or other similar
Person, the Senior Debt or part thereof originally intended to be satisfied
shall be deemed to be reinstated and outstanding as if such payment had not
occurred.

It is further agreed that any diminution (whether
pursuant to court decree or otherwise, including without limitation for any of
the reasons described in the preceding sentence) of the Company’s obligation to
make any distribution or payment pursuant to any Senior Debt, except to the
extent such diminution occurs by reason of the repayment (which has not been
disgorged or returned) of such Senior Debt in cash or Cash Equivalents, shall
have no force or effect for purposes of the subordination provisions contained
in this Article X, with any turnover of payments as otherwise calculated
pursuant to this Article X to be made as if no such diminution had occurred.

(c)       In
the event that, notwithstanding the foregoing, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, shall be received by any Holder when such payment or distribution
is prohibited by this Section 10.3, such payment or distribution shall be held
in trust for the benefit of, and shall be paid over or delivered to, the
holders of Senior Debt (pro  rata to such holders on the basis of
the respective amount of Senior Debt held by such holders) or their respective
Representatives, or to the trustee or trustees under any indenture pursuant to
which any of such Senior Debt may have been issued, as their respective
interests may appear, for application to the payment of Senior Debt remaining
unpaid until all such Senior Debt has been paid in full in cash or Cash
Equivalents, after giving effect to any concurrent payment, distribution or
provision therefor to or for the holders of such Senior Debt.

(d)       The
consolidation of the Company with, or the merger of the Company with or into,
another corporation, partnership, trust or limited liability company or the
liquidation or dissolution of the Company following the conveyance or transfer
of all or substantially all of its assets, to another corporation, partnership,
trust or limited liability company upon the terms and conditions provided in
Article V hereof and as long as permitted under the terms of the Senior Debt
shall not be deemed a dissolution, winding-up, liquidation or reorganization
for the purposes of this Section if such other corporation shall, as a part of
such consolidation, merger, conveyance or transfer, assume the Company’s
obligations hereunder in accordance with Article V hereof.

SECTION 10.4          Payments May Be Paid Prior to Dissolution.

Nothing contained in this Article X or elsewhere in
this Indenture shall prevent (i) the Company, except under the conditions
described in Sections 10.2 and 10.3, from making payments at any time for the
purpose of making payments of principal of and interest

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on the Obligations, or from depositing with the Trustee or any Paying
Agent, any monies for such payments, or (ii) in the absence of actual knowledge
by the Trustee or any Paying Agent that a given payment would be prohibited by
Section 10.2 or 10.3, the application by the Trustee and any Paying Agent of
any monies deposited with them for the purpose of making such payments of
principal of, and interest on, the Obligations to the Holders entitled thereto
unless at least one Business Day prior to the date upon which such payment
would otherwise become due and payable Trustee and any Paying Agent shall have
actually received the written notice provided for in the first sentence of
Section 10.2(b) (provided that, notwithstanding the foregoing, the
Holders receiving any payments made in contravention of Section 10.2 and/or
10.3 (and the respective such payments) shall otherwise be subject to the
provisions of Section 10.2 and Section 10.3). The Company shall give prompt
written notice to the Trustee and any Paying Agent of any dissolution,
winding-up, liquidation or reorganization of the Company, although any delay or
failure to give any such notice shall have no effect on the subordination
provisions contained herein.

SECTION 10.5          Holders To Be Subrogated to Rights of
Holders of Senior Debt.

Subject to the payment in full in cash or Cash
Equivalents of all Senior Debt, the Holders shall be subrogated to the rights
of the holders of Senior Debt to receive payments or distributions of cash,
property or securities of the Company applicable to the Senior Debt until the
Obligations shall be paid in full; and, for the purposes of such subrogation,
no such payments or distributions to the holders of the Senior Debt by or on
behalf of the Company, or by or on behalf of the Holders by virtue of this
Article X, which otherwise would have been made to the Holders shall, as
between the Company and the Holders, be deemed to be a payment by the Company
to or on account of the Senior Debt, it being understood that the provisions of
this Article X are and are intended solely for the purpose of defining the
relative rights of the Holders, on the one hand, and the holders of Senior
Debt, on the other hand.

SECTION 10.6          Obligations of the Company Unconditional.

Nothing contained in this Article X or elsewhere in
this Indenture is intended to or shall impair, as among the Company, its
creditors other than the holders of Senior Debt, and the Holders, the
obligation of the Company, which is absolute and unconditional, to pay to the Holders
the principal of and any interest on the Obligations as and when the same shall
become due and payable in accordance with their terms, or is intended to or
shall affect the relative rights of the Holders and creditors of the Company
other than the holders of the Senior Debt, nor shall anything herein or therein
prevent any Holder or the Trustee on its behalf from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article X, of the holders of Senior
Debt

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in respect of cash, property or securities of the Company received upon
the exercise of any such remedy.

SECTION 10.7          Reliance on Judicial Order or Certificate
of Liquidating Agent.

Upon any payment or distribution of assets of the
Company referred to in this Article X, the Trustee, subject to the provisions
of Article VII hereof, and the Holders shall be entitled to rely upon any order
or decree made by any court of competent jurisdiction in which any insolvency, bankruptcy,
receivership, dissolution, winding-up, liquidation, reorganization or similar
case or proceeding is pending, or upon a certificate of the receiver, trustee
in bankruptcy, liquidating trustee, assignee for the benefit of creditors,
agent or other person making such payment or distribution, delivered to the
Trustee or the Holders, for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of the Senior Debt and
other Indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article X.

SECTION 10.8                      Subordination
Rights Not Impaired by Acts or Omissions of the Company or Holders of Senior
Debt.

No right of any present or future holders of any
Senior Debt to enforce subordination as provided herein shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any act or failure to act, in good faith, by any such holder,
or by any noncompliance by the Company with the terms of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise
be charged with.

Without in any way limiting the generality of the
foregoing paragraph, the holders of Senior Debt may, at any time and from time
to time, without the consent of or notice to the Trustee, without incurring
responsibility to the Trustee or the Holders and without impairing or releasing
the subordination provided in this Article X or the obligations hereunder of
the Holders to the holders of the Senior Debt, do any one or more of the
following: (i) change the manner, place or terms of payment or extend the time
of payment of, or renew or alter, Senior Debt, or otherwise amend or supplement
in any manner Senior Debt, or any instrument evidencing the same or any
agreement under which Senior Debt is outstanding; (ii) sell, exchange, release
or otherwise deal with any property pledged, mortgaged or otherwise securing Senior
Debt; (iii) release any Person liable in any manner for the payment or
collection of Senior Debt; and (iv) exercise or refrain from exercising any
rights against the Company and any other Person.

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SECTION 10.9          Holders Authorize Trustee To Effectuate Subordination
of Obligations.

Each Holder authorizes and expressly directs the
Trustee on its behalf to take such action as may be necessary or appropriate to
effectuate, as between the holders of Senior Debt and the Holders, the
subordination provided in this Article X, and appoints the Trustee its
attorney-in-fact for such purposes, including, in the event of any dissolution,
winding-up, liquidation or reorganization of the Company (whether in
bankruptcy, insolvency, receivership, reorganization or similar proceedings or
upon an assignment for the benefit of credits or otherwise) tending towards
liquidation of the business and assets of the Company, the filing of a claim
for the unpaid balance of its Obligations and accrued interest in the form
required in those proceedings.

If the Trustee does not file a proper claim or proof
of debt in the form required in such proceeding prior to 30 days before the
expiration of the time to file such claim or claims, then the holders of the
Senior Debt or their Representative are or is hereby authorized to have the
right to file and are or is hereby authorized to file an appropriate claim for
and on behalf of the Holders. Nothing herein contained shall be deemed to
authorize the Trustee or the holders of Senior Debt or their Representative to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Holder thereof, or to authorize the Trustee or
the holders of Senior Debt or their Representative to vote in respect of the
claim of any Holder in any such proceeding.

SECTION 10.10        Amendments or Modifications to Article X.

Notwithstanding anything to the contrary contained in
this Indenture, no amendment or modification to any provision of this Article X
or the related definitions used herein (other than to cure any ambiguity,
defect, mistake or inconsistency herein, so long as such amendment or
modification does not adversely affect the rights of the holders of any Senior
Debt then outstanding) shall be permitted without the consent of the “Required
Lenders,” as such term is used in the Senior Credit Facility.

SECTION 10.11        Article X Not to Prevent Events of Default.

The failure to make a payment on account of principal
of or interest on the securities by reason of any provision of this Article X
shall not be construed as preventing the occurrence of a Default or an Event of
Default under Section 6.1.

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SECTION 10.12        No Fiduciary Duty of Trustee to Holders of Senior
Debt.

The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Senior Debt, and shall not be liable to any such holders
if it shall in good faith mistakenly pay over or distribute to the Holders of
Notes or the Company or any other Person, cash, property or securities to which
any holders of Senior Debt shall be entitled by virtue of this Article X or
otherwise. Nothing in this Section 10.12 shall affect the obligation of any
other such Person to hold such payment for the benefit of, and to pay such
payment over to, the holders of Senior Debt or their Representative.

ARTICLE XI

GUARANTEE

SECTION 11.1          Unconditional Guarantee.

Each Guarantor hereby unconditionally, jointly and
severally, guarantees (each such guarantee to be referred to herein as a “Guarantee”),
subject to Article XII, to each of the Holders and to the Trustee and their
respective successors and assigns that (i) the principal of and interest on the
Notes will be promptly paid in full when due, subject to any applicable grace
period, whether at maturity, by acceleration or otherwise, and interest on the
overdue principal, if any, and interest on any interest, if any, to the extent
lawful, of the Notes and all other obligations of the Company to the Holders or
the Trustee hereunder or thereunder will be promptly paid in full or performed,
all in accordance with the terms hereof and thereof; and (ii) in case of any
extension of time of payment or renewal of any of the Notes or of any such
other obligations, the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, subject to any
applicable grace period, whether at stated maturity, by acceleration or
otherwise, subject, however, in the case of clauses (i) and (ii) above, to the
limitations set forth in Section 11.5. Each Guarantor hereby agrees that its
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any of the Holders with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
Guarantor. Each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that this Guarantee
will not be discharged except by complete performance of the obligations
contained in the Notes, this Indenture and in this Guarantee. If any Holder or
the Trustee is required by any court or otherwise to return to the Company, any

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Guarantor, or any custodian, trustee, liquidator or other similar
official acting in relation to the Company or any Guarantor, any amount paid by
the Company or any Guarantor to the Trustee or such Holder, this Guarantee, to
the extent theretofore discharged, shall be reinstated in full force and
effect. Each Guarantor further agrees that, as between each Guarantor, on the
one hand, and the Holders and the Trustee, on the other hand, (x) the maturity
of the obligations guaranteed hereby may be accelerated as provided in Article
VI for the purposes of this Guarantee, and (y) in the event of any acceleration
of such obligations as provided in Article VI, such obligations (whether or not
due and payable) shall forthwith become due and payable by each Guarantor for
the purpose of this Guarantee.

SECTION 11.2          Subordination of Guarantee.

The obligations of each Guarantor to the Holders and
to the Trustee pursuant to the Guarantee of such Guarantor and this Indenture
are expressly subordinate and subject in right of payment to the prior payment
in full of all Guarantor Senior Debt of such Guarantor, to the extent and in
the manner provided in Article XII.

SECTION 11.3          Severability.

In case any provision of this Guarantee shall be
invalid, illegal or unenforceable, the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 11.4          Release of a Guarantor.

Upon (i) the release by the lenders under the Senior
Credit Facility and related documents of all guarantees of a Guarantor and all
Liens on the property and assets of such Guarantor relating to such
Indebtedness, (ii) the unconditional release of a Guarantor from its liability in
respect of the Indebtedness in connection with which such Guarantee was
executed and delivered in accordance with the first paragraph of Section 4.17,
(iii) any sale or other disposition (by merger or otherwise) to any Person
which is not a Restricted Subsidiary of the Company of all of the Company’s
Capital Stock in, or all or substantially all of the assets of, a Guarantor; provided
that (a) such sale or disposition of such Capital Stock or assets is otherwise
in compliance with the terms of this Indenture and (b) such assumption,
guarantee or other liability of such Guarantor has been released by the holders
of the other Indebtedness of the Company so guaranteed, (iv) the Legal
Defeasance of the Notes as described under Section 8.2, or (v) a Guarantor being
designated as an Unrestricted Subsidiary as described under the definition of “Unrestricted
Subsidiary,” such Guarantor shall be deemed released from all obligations under
this Article XI without any further action required on the part of the Trustee
or any Holder; provided that any such termination shall occur only to
the extent that all obligations of such Guarantor under all of its guarantees
of, and under all of its pledges of

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assets or other security interests which secure, such Indebtedness of
the Company shall also terminate upon such release, sale or transfer.

The Trustee shall promptly deliver an appropriate
instrument evidencing such release upon receipt of a request by the Company
accompanied by an Officers’ Certificate certifying as to the compliance with
this Section 11.4. Any Guarantor not so released remains liable for the full
amount of principal of and interest on the Notes as provided in this Article
XI.

SECTION 11.5          Limitation of Guarantor’s Liability.

Each Guarantor and by its acceptance hereof each of
the Holders hereby confirm that it is the intention of all such parties that
the guarantee by such Guarantor pursuant to its Guarantee not constitute a
fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar Federal or state law. To effectuate the foregoing intention, the
Holders and such Guarantor hereby irrevocably agree that the obligations of
such Guarantor under the Guarantee shall be limited to the maximum amount as
will, after giving effect to all other contingent and fixed liabilities of such
Guarantor (including, but not limited to, the Guarantor Senior Debt of such
Guarantor) and after giving effect to any collections from or payments made by
or on behalf of any other Guarantor in respect of the obligations of such other
Guarantor under its Guarantee or pursuant to Section 11.7, result in the
obligations of such Guarantor under the Guarantee not constituting such
fraudulent transfer or conveyance.

SECTION 11.6          Consolidation, Merger and Sale of Assets.

Upon any consolidation, merger, sale or conveyance of
a Guarantor as permitted by Article V, the Guarantee of such Guarantor set
forth in this Article XI, and the due and punctual performance and observance
of all of the covenants and conditions of this Indenture to be performed by
such Guarantor, shall be expressly assumed (in the event that the Company, the
Guarantor or another Guarantor is not the surviving corporation in the merger),
by an agreement or supplemental indenture reasonably satisfactory in form to
the Trustee, executed and delivered to the Trustee, by the corporation formed
by such consolidation, or into which the Guarantor shall have merged, or by the
corporation that shall have acquired such property. In the case of any such
consolidation, merger, sale or conveyance and upon the assumption by the
successor corporation, by an agreement or supplemental indenture executed and
delivered to the Trustee and satisfactory in form and substance to the Trustee
of the due and punctual performance of all of the covenants and conditions of
this Indenture to be performed by the Guarantor, such successor corporation
shall succeed to and be substituted for the Guarantor with the same effect as
if it had been named herein as a Guarantor.

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SECTION 11.7          Contribution.

In order to provide for just and equitable
contribution among the Guarantors, the Guarantors agree, inter  se,
that in the event any payment or distribution is made by any Guarantor (a “Funding
Guarantor”) under its Guarantee, such Funding Guarantor shall be entitled to a
contribution from all other Guarantors in a pro  rata amount based
on the Adjusted Net Assets of each Guarantor (including the Funding Guarantor)
for all payments, damages and expenses incurred by that Funding Guarantor in
discharging the Company’s obligations with respect to the Obligations. “Adjusted
Net Assets” of such Guarantor at any date shall mean the lesser of (x) the
amount by which the fair value of the property of such Guarantor exceeds the
total amount of liabilities, including, without limitation, contingent
liabilities (after giving effect to all other fixed and contingent liabilities
incurred or assumed on such date (other than liabilities of such Guarantor
under Subordinated Obligation)), but excluding liabilities under the Guarantee,
of such Guarantor at such date and (y) the amount by which the present fair
salable value of the assets of such Guarantor at such date exceeds the amount
that will be required to pay the probable liabilities of such Guarantor on its
debts including, without limitation, Guarantor Senior Debt (after giving effect
to all other fixed and contingent liabilities incurred or assumed on such date
and after giving effect to any collection from any Subsidiary of such Guarantor
in respect of the obligations of such Subsidiary under the Guarantee),
excluding debt in respect of the Guarantee of such Guarantor, as they become
absolute and matured.

SECTION 11.8          Waiver of Subrogation.  

Each Guarantor hereby irrevocably waives any claim or
other rights which it may now or hereafter acquire against the Company that
arise from the existence, payment, performance or enforcement of such Guarantor’s
obligations under its Guarantee and this Indenture, including, without
limitation, any right of subrogation, reimbursement, exoneration,
indemnification, and any right to participate in any claim or remedy of any
Holder against the Company, whether or not such claim, remedy or right arises
in equity, or under contract, statute or common law, including, without
limitation, the right to take or receive from the Company, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights. If any amount
shall be paid to any Guarantor in violation of the preceding sentence and the
Notes shall not have been paid in full, such amount shall be deemed to have
been paid to such Guarantor for the benefit of, and held in trust for the
benefit of, the Holders, and shall, subject to the provisions of Article X,
Section 1 1.2 and Article XII, forthwith be paid to the Trustee for the benefit
of such Holders to be credited and applied upon the Notes, whether matured or
unmatured, in accordance with the terms of this Indenture. Each Guarantor
acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by

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this Indenture and that the waiver set forth in this Section 11.8 is
knowingly made in contemplation of such benefits.

SECTION 11.9          Evidence of Guarantee.

To evidence their guarantees to the Holders set forth
in this Article XI, each of the Guarantors hereby agrees to execute the
notation of Guarantee in substantially the form included in Exhibit E.
Each such notation of Guarantee shall be signed on behalf of each Guarantor by
an Officer or an assistant Secretary.

SECTION 11.10        Waiver of Stay, Extension or Usury Laws.

Each Guarantor covenants that it will not at any time
insist upon, plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury law or other law that
would prohibit or forgive such Guarantor from performing its Guarantee as
contemplated herein, wherever enacted, now or at any time hereafter in force,
or which may affect the covenants or the performance of this Indenture; and
each Guarantor hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution
of every such power as though no such law had been enacted.

ARTICLE XII

SUBORDINATION OF GUARANTEE OBLIGATIONS

SECTION 12.1          Guarantee Obligations Subordinated to
Guarantor Senior Debt.

Anything herein to the contrary notwithstanding, each
of the Guarantors, for itself and its successors, and each Holder by his
acceptance of Notes agrees that the payment of all Guarantee Obligations of
such Guarantor are subordinated, to the extent and in the manner provided in
this Article XII, to the prior payment in full in cash or Cash Equivalents, or
such payment duly provided for to the satisfaction of the holders of Guarantor
Senior Debt, of all Guarantor Senior Debt Obligations of such Guarantor
(including Guarantor Senior Debt Obligations with respect to the Senior Credit
Facility, whether outstanding on the Issue Date or thereafter incurred).

This Article XII shall constitute a continuing offer
to all Persons who become holders of, or continue to hold, Guarantor Senior
Debt, and such provisions are made for the

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benefit of the holders of Guarantor Senior Debt and such holders are
made obligees hereunder and any one or more of them may enforce such
provisions.

SECTION 12.2          Suspension of Guarantee Obligations When
Guarantor Senior Debt Is in Default.

(a)       If
any default occurs and is continuing in the payment when due, whether at
maturity, upon any redemption, by declaration or otherwise, of any principal
of, interest on, unpaid drawings for letters of credit issued in respect of, or
regularly accruing fees with respect to, any Guarantor Senior Debt (including,
without limitation, guarantees of the foregoing items which constitute
Guarantor Senior Debt), then no payment or distribution of any kind or
character shall be made by or on behalf of such Guarantor or any other Person
on its or their behalf with respect to any Guarantee Obligations or to acquire
any of the Notes for cash or property or otherwise until such Payment Default
(and all other Payment Defaults) shall have been cured or waived in accordance
with the terms of the documentation governing the respective Guarantor Senior
Debt or ceased to exist or all Guarantor Senior Debt with respect to which any
Payment Default has occurred and is continuing shall have been discharged or
paid in full in cash or Cash Equivalents.

(b)       During
any Payment Blockage Period (as determined in accordance with Section 10.2(b),
including the limitations set forth therein), neither any Guarantor nor any
other Person on any Guarantor’s behalf shall (i) make any payment of any kind
or character with respect to any Guarantee Obligations or (ii) acquire any of
the Notes for cash or property or otherwise.

(c)       In
the event that, notwithstanding the foregoing, any payment shall be received by
the Trustee, any Paying Agent or any Holder when such payment is prohibited by
the foregoing provisions of this Section 12.2, such payment shall be held in
trust for the benefit of, and shall be paid over or delivered to, the holders
of Guarantor Senior Debt (pro  rata  to such holders on the basis of the respective amount of
Guarantor Senior Debt held by such holders) or their respective
Representatives, as their respective interests may appear. The Trustee and any
Paying Agent shall be entitled to rely on information regarding amounts then
due and owing on the Guarantor Senior Debt, if any, received from the holders
of Guarantor Senior Debt (or their Representatives) or, if such information is
not received from such holders or their Representatives, from a Guarantor and
only amounts included in the information provided to the Trustee and any Paying
Agent shall be paid to the holders of Guarantor Senior Debt.

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SECTION 12.3                      Guarantee
Obligations Subordinated to Prior Payment of All Guarantor Senior Debt on
Dissolution, Liquidation or Reorganization of Such Guarantor.

(a)       Upon
any payment or distribution of assets of any Guarantor of any kind or
character, whether in cash, property or securities, to creditors upon any total
or partial liquidation, dissolution, winding-up, reorganization, assignment for
the benefit of creditors or marshaling of assets of such Guarantor or in a
bankruptcy, reorganization, insolvency, receivership or other similar
proceeding relating to such Guarantor or its property, whether voluntary or
involuntary, all Guarantor Senior Debt Obligations due or to become due shall
first be paid in full in cash or Cash Equivalents, or such payment duly
provided for to the satisfaction of the holders of Guarantor Senior Debt,
before the Holders shall be entitled to receive any payment or distribution of
any kind or character on account of any Guarantee Obligations or for the
acquisition of any of the Notes for cash or property or otherwise. Upon any
such dissolution, winding-up, liquidation, reorganization, receivership or
similar proceeding, any payment or distribution of assets of such Guarantor of
any kind or character, whether in cash, property or securities, to which the
Holders or the Trustee would be entitled, except for the provisions hereof,
shall be paid by such Guarantor or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Holders or by the Trustee if received by them, directly to the holders
of Guarantor Senior Debt (pro  rata to such holders on the basis
of the respective amounts of Guarantor Senior Debt held by such holders) or
their respective Representatives, or to the trustee or trustees under any
indenture pursuant to which any of such Guarantor Senior Debt may have been
issued, as their respective interests may appear, for application to the
payment of Guarantor Senior Debt remaining unpaid until all such Guarantor
Senior Debt has been paid in full in cash or Cash Equivalents after giving
effect to any concurrent payment, distribution or provision therefor to or for
the holders of Guarantor Senior Debt.

(b)       To
the extent any payment of Guarantor Senior Debt (whether by or on behalf of a
Guarantor, as proceeds of security or enforcement of any right of setoff or
otherwise) is declared to be fraudulent or preferential, set aside or required
to be paid to any receiver, trustee in bankruptcy, liquidating trustee, agent
or other similar Person under any bankruptcy, insolvency, receivership, fraudulent
conveyance or similar law, then, if such payment is recovered by, or paid over
to, such receiver, trustee in bankruptcy, liquidating trustee, agent or other
similar Person, the Guarantor Senior Debt or part thereof originally intended
to be satisfied shall be deemed to be reinstated and outstanding as if such
payment had not occurred.

It is further agreed that any diminution (whether
pursuant to court decree or otherwise, including without limitation for any of
the reasons described in the preceding sentence) of any Guarantor’s obligation
to make any distribution or payment pursuant to any

 105

Guarantor Senior Debt, except to the extent such diminution occurs by
reason of the repayment (which has not been disgorged or returned) of such
Guarantor Senior Debt in cash or Cash Equivalents, shall have no force or
effect for purposes of the subordination provisions contained in this Article
XII, with any turnover of payments as otherwise calculated pursuant to this
Article XII to be made as if no such diminution had occurred.

(c)       In
the event that, notwithstanding the foregoing, any payment or distribution of
assets of any Guarantor of any kind or character, whether in cash, property or
securities, shall be received by any Holder when such payment or distribution
is prohibited by this Section 12.3, such payment or distribution shall be held
in trust for the benefit of, and shall be paid over or delivered to, the
holders of Guarantor Senior Debt (pro rata to such holders on the basis of the
respective amount of Guarantor Senior Debt held by such holders) or their
respective Representatives, or to the trustee or trustees under any indenture
pursuant to which any of such Guarantor Senior Debt may have been issued, as
their respective interests may appear, for application to the payment of
Guarantor Senior Debt remaining unpaid until all such Guarantor Senior Debt has
been paid in full in cash or Cash Equivalents, after giving effect to any
concurrent payment, distribution or provision therefor to or for the holders of
such Guarantor Senior Debt.

(d)       The
consolidation of any Guarantor with, or the merger of any Guarantor with or
into, another corporation or the liquidation or dissolution of a Guarantor
following the conveyance or transfer of all or substantially all of its assets,
to another corporation upon the terms and conditions provided in Article V and as
long as permitted under the terms of the Guarantor Senior Debt shall not be
deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section if such other corporation shall, as a part of such
consolidation, merger, conveyance or transfer, assume the Guarantee of such
Guarantor hereunder in accordance with Article V.

SECTION 12.4          Payments May Be Paid Prior to Dissolution.

Nothing contained in this
Article XI1 or elsewhere in this Indenture shall prevent (i) any
Guarantor, except under the conditions described in Sections 12.2 and 12.3,
from making payments at any time for the purpose of making payments on
Guarantee Obligations, or from depositing with the Trustee or any Paying Agent,
any monies for such payments, or (ii) in the absence of actual knowledge by the
Trustee or any Paying Agent that a given payment would be prohibited by Section
12.2 or 12.3, the application by the Trustee and any Paying Agent of any monies
deposited with them for the purpose of making such payments on Guarantee
Obligations to the Holders entitled thereto unless at least one Business Day
prior to the date upon which such payment would otherwise become due and
payable the Trustee and any Paying Agent shall have actually received the
written notice provided for in the first sentence of Section 10.2(b) (provided
that, notwithstanding the foregoing, the Holders

 106
 

receiving any payments made in contravention of Sections 12.2 and/or
12.3 (and the respective such payments) shall otherwise be subject to the provisions
of Section 12.2 and Section 12.3). Each Guarantor shall give prompt written
notice to the Trustee and any Paying Agent of any dissolution, winding-up,
liquidation or reorganization of such Guarantor, although any delay or failure
to give any such notice shall have no effect on the subordination provisions
contained herein.

SECTION 12.5          Holders To Be Subrogated to Rights of
Lenders of Guarantor Senior Debt.

Subject to the payment in full in cash or Cash
Equivalents of all Guarantor Senior Debt, the Holders shall be subrogated to
the rights of the holders of Guarantor Senior Debt of such Guarantor to receive
payments or distributions of cash, property or securities of such Guarantor
applicable to such Guarantor Senior Debt until all amounts owing on or in
respect of the Guarantee Obligations shall be paid in full; and, for the
purposes of such subrogation, no such payments or distributions to the holders
of such Guarantor Senior Debt by or on behalf of such Guarantor, or by or on
behalf of the Holders by virtue of this Article XII, which otherwise would have
been made to the Holders shall, as between such Guarantor and the Holders, be
deemed to be a payment by such Guarantor to or on account of such Guarantor
Senior Debt, it being understood that the provisions of this Article XII are
and are intended solely for the purpose of defining the relative rights of the
Holders, on the one hand, and the holders of Guarantor Senior Debt, on the
other hand.

SECTION 12.6          Guarantee Obligations of the Guarantors
Unconditional.

Nothing contained in this Article XII or elsewhere in
this Indenture or in the Guarantees is intended to or shall impair, as among
the Guarantors, their creditors other than the holders of Guarantor Senior
Debt, and the Holders, the obligation of the Guarantors, which is absolute and
unconditional, to pay to the Holders all amounts due and payable under the
Guarantees as and when the same shall become due and payable in accordance with
their terms, or is intended to or shall affect the relative rights of the
Holders and creditors of the Guarantors other than the holders of the Guarantor
Senior Debt, nor shall anything herein or therein prevent any Holder or the
Trustee on its behalf from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if
any, under this Article XII of the holders of Guarantor Senior Debt in respect
of cash, property or securities of the Guarantors received upon the exercise of
any such remedy.

SECTION 12.7          Reliance on Judicial Order or Certificate
of Liquidating Agent.

Upon any payment or distribution of assets of a
Guarantor referred to in this Article XII, the Trustee, subject to the
provisions of Article VII hereof, and the Holders shall

 107
 

be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which any insolvency, bankruptcy, receivership,
dissolution, winding-up, liquidation, reorganization or similar case or
proceeding is pending, or upon a certificate of the trustee in bankruptcy,
liquidating trustee, receiver, assignee for the benefit of creditors, agent or
other person making such payment or distribution, delivered to the Trustee or
the Holders, for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of the Guarantor
Senior Debt and other Indebtedness of such Guarantor, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article XII.

SECTION 12.8                      Subordination
Rights Not Impaired by Acts or Omissions of the Guarantors or Lenders of
Guarantor Senior Debt.

No right of any present or future holders of any
Guarantor Senior Debt to enforce subordination as provided herein shall at any
time in any way be prejudiced or impaired by any act or failure to act on the
part of any Guarantor or by any act or failure to act, in good faith, by any
such holder, or by any noncompliance by any Guarantor with the terms of this
Indenture, regardless of any knowledge thereof which any such holder may have
or otherwise be charged with.

Without in any way limiting the generality of the
foregoing paragraph, the holders of Guarantor Senior Debt may, at any time and
from time to time, without the consent of or notice to the Trustee, without
incurring responsibility to the Trustee or the Holders and without impairing or
releasing the subordination provided in this Article XII or the obligations
hereunder of the Holders to the holders of Guarantor Senior Debt, do any one or
more of the following: (i) change the manner, place or terms of payment or
extend the time of payment of, or renew or alter, Guarantor Senior Debt, or
otherwise amend or supplement in any manner Guarantor Senior Debt, or any
instrument evidencing the same or any agreement under which Guarantor Senior
Debt is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Guarantor Senior Debt; (iii)
release any Person liable in any manner for the payment or collection of
Guarantor Senior Debt; and (iv) exercise or refrain from exercising any rights
against the Guarantors and any other Person.

SECTION 12.9                      Holders
Authorize Trustee To Effectuate Subordination of Guarantee Obligations.

Each Holder, by its acceptance of the Guarantee
Obligations, authorizes and expressly directs the Trustee on its behalf to take
such action as may be necessary or appropriate to effectuate, as between the
holders of Guarantor Senior Debt and the Holders, the subordination provided in
this Article XII, and appoints the Trustee its attorney-in-fact for such
purposes, including, in the event of any dissolution, winding-up, liquidation
or reorganization of any Guarantor (whether in bankruptcy, insolvency,
receivership,

 108
 

reorganization or similar proceedings or upon an assignment for the
benefit of credits or otherwise) tending towards liquidation of the business
and assets of any Guarantor, the filing of a claim for the unpaid balance under
its Guarantee Obligations and accrued interest in the form required in those
proceedings.

If the Trustee does not file a proper claim or proof
of debt in the form required in such proceeding prior to 30 days before the
expiration of the time to file such claim or claims, then the holders of the
Guarantor Senior Debt or their Representative are or is hereby authorized to
have the right to file and are or is hereby authorized to file an appropriate
claim for and on behalf of the Holders. Nothing herein contained shall be
deemed to authorize the Trustee or the holders of Guarantor Senior Debt or
their Representative to authorize or consent to or accept or adopt on behalf of
any Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Guarantee Obligations or the rights of any Holder, or to
authorize the Trustee or the holders of Guarantor Senior Debt or their
Representative to vote in respect of the claim of any Holder in any such
proceeding.

SECTION 12.10        This Article XII Not To Prevent Events of
Default.

The failure to make a payment on account of principal
of or interest on the Guarantee Obligations by reason of any provision of this
Article XII will not be construed as preventing the occurrence of an Event of
Default.

SECTION 12.11        Amendments or Modifications to Article XII.

Notwithstanding anything to the contrary contained in
this Indenture, no amendment or modification to any provision of this Article
XII or the related definitions used herein (other than to cure any ambiguity,
defect, mistake or inconsistency herein, so long as such amendment or
modification does not adversely affect the rights of the holders of any
Guarantor Senior Debt then outstanding) shall be permitted without the consent
of the “Required Lenders,” as such term is used in the Senior Credit Facility.

SECTION 12.12        No Fiduciary Duty of Trustee to Holders of
Senior Debt.

The Trustee shall not be deemed to owe any fiduciary
duty to the holders of Guarantor Senior Debt, and shall not be liable to any
such holders if it shall in good faith mistakenly pay over or distribute to the
Holders of Notes or the Company or any other Person, cash, property or
securities to which any holders of Guarantor Senior Debt shall be entitled by
virtue of this Article XII or otherwise. Nothing in this Section 12.12 shall
affect the obligation of any other such Person to hold such payment for the
benefit of, and to pay such payment over to, the holders of Guarantor Senior
Debt or their Representative.

 109
 

ARTICLE XIII

MISCELLANEOUS

SECTION 13.1          Trust Indenture Act Controls.

The provisions of TIA §§310 through 317 that impose
duties on any Person (including the provisions automatically deemed included
unless expressly excluded by this Indenture) are a part of and govern this
Indenture, whether or not physically contained herein.

If any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by the above paragraph, the imposed duties
shall control.

SECTION 13.2          Notices.

Any notice or communication shall be sufficiently
given if in writing and delivered in Person or mailed by first-class mail or by
telecopier, followed by first-class mail, or by overnight service guaranteeing
next-day delivery, addressed as follows:

(a)       if
to the Company or any Guarantor:

c/o Vertis, Inc. 

250 W. Pratt Street 

18th Floor 

Baltimore, MD 21201 

Attention: Chief Financial Officer

Telecopier Number: (410) 528-9287

with a copy to:

Sullivan & Cromwell LLP 

125 Broad Street 

New York, New York 10004 

Attention: Robert E. Buckholz, Jr., Esq. 

Telecopier Number: (212) 558-3588

 110
 

(b)       if
to the Trustee:

The Bank of New York 

101 Barclay Street 

New York, New York 10286 

Attention: Corporate Trust Administration 

Telecopier Number: (212) 815-5704

The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.

Any notice or communication mailed to a
Securityholder, including any notice delivered in connection with TIA §  310(b), TIA § 313(c), TIA §  314(a) and TIA §  315(b), shall be mailed to such Holder, first-class
postage prepaid, at his address as it appears on the registration books of the
Registrar and shall be sufficiently given to such Holder if so mailed within
the time prescribed.

Failure to mail a notice or communication to a
Securityholder or any defect in it shall not affect its sufficiency with
respect to other Securityholders. Except for a notice to the Trustee, which is
deemed given only when received, if a notice or communication is mailed in the
manner provided above, it is duly given, whether or not the addressee receives
it.

SECTION 13.3          Communications by Holders with Other
Holders.

Securityholders may communicate pursuant to TIA §  312(b) with other Securityholders with
respect to their rights under this Indenture, the Notes or the Guarantees. The
Company, the Guarantors, the Trustee, the Registrar and any other Person shall
have the protection of TIA § 312(c).

SECTION 13.4          Certificate and Opinion of Counsel as to
Conditions Precedent.  

Upon any request or application by the Company to the Trustee
to take any action under this Indenture, the Company shall furnish to the
Trustee at the request of the Trustee (a) an Officers’ Certificate in form and
substance reasonably satisfactory to the Trustee stating that, in the opinion
of the signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with (which
officer signing such certificate may rely, as to matters of law, on an Opinion
of Counsel), (b) an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee stating that, in the opinion of counsel, all such
conditions have been complied with (which counsel, as to factual matters, may
rely on an Officers’ Certificate and certificates of public officials) and

 111
 

(c) where applicable, a certificate or opinion by an independent
certified public accountant satisfactory to the Trustee that complies with TIA
§ 314(c).

SECTION 13.5                            Statements Required in
Certificate and Opinion of Counsel.  

Each certificate and Opinion of Counsel with respect
to compliance with a condition or covenant provided for in this Indenture shall
include:

(a)  a statement that the Person making such
certificate or rendering such Opinion of Counsel has read such covenant or
condition;

(b)  a brief statement as to the nature and
scope of the examination or investigation upon which the statements contained
in such certificate or Opinion of Counsel are based;

(c)  a statement that, in the opinion of
such Person, he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and

(d)  a statement as to whether or not, in
the opinion of such Person, such condition or covenant has been complied with.

SECTION 13.6          Rules by Trustee, Paying Agent, Registrar.

The Trustee may make reasonable rules in accordance
with the Trustee’s customary practices for action by or at a meeting of
Securityholders. The Paying Agent or Registrar may make reasonable rules for
its functions.

SECTION 13.7          Legal Holidays.

If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue for the intervening period.

SECTION 13.8        Governing Law.

THE LAWS OF THE STATE OF NEW YORK
SHALL GOVERN THIS INDENTURE AND THE SECURITIES WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW. THE COMPANY AGREES TO SUBMIT TO THE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE OR THE SECURITIES.

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SECTION 13.9          No Recourse Against Others.

No past, present or future director, officer,
employee, incorporator or stockholder of the Company or any Guarantor, as such,
shall have any liability for any obligations of the Company or any Guarantor
under the Notes, the Guarantees or this Indenture or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes and the Guarantees.

SECTION 13.10        Successors.

All agreements of the Company and the Guarantors in
this Indenture, the Notes and the Guarantees shall bind their respective
successors. All agreements of the Trustee in this Indenture shall bind its
successor.

SECTION 13.1 1       Counterparts.

The parties may sign any number of counterparts of
this Indenture. Each such counterpart shall be an original, but all of them
together represent the same agreement.

SECTION 13.12        Severability.

In case any provision in this Indenture, the Notes or
the Guarantees shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby, and a Holder shall have no claim therefor against
any party hereto.

SECTION 13.13        Table of Contents, Headings, Etc.

The table of contents, cross-reference sheet and
headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, and are not to be considered a part hereof, and
shall in no way modify or restrict any of the terms or provisions hereof.

SECTION 13.14        No Adverse Interpretation of Other Agreements.

This Indenture may not be used to interpret another
indenture, loan or debt agreement of the Company or any of its Subsidiaries.
Any such indenture, loan or debt agreement may not be used to interpret this
Indenture.

 113
 

SECTION 13.15        Benefits of Indenture.

Nothing in this Indenture, the Notes or the
Guarantees, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder and the Holders, any benefit or
any legal or equitable right, remedy or claim under this Indenture, the Notes
or the Guarantees.

SECTION 13.16        Independence of Covenants.

All covenants and agreements in this Indenture shall
be given independent effect so that if any particular action or condition is
not permitted by any of such covenants, the fact that it would be permitted by
an exception to, or otherwise be within the limitations of, another covenant
shall not avoid the occurrence of a Default or an Event of Default if such
action is taken or condition exists.

 114

IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed as of the date first written above.

	
  

  	
  VERTIS, INC.,

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John V. Howard, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Sr. V.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SUBSIDIARY GUARANTORS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PRINTCO., INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John V. Howard, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Sr. V.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WEBCRAFT, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John V. Howard, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Sr. V.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WEBCRAFT CHEMICALS, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John V. Howard, Jr.

  	
   

  
	
   

  	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
   

  	
  Title:

  	
  Sr. V.P.

  
					

 

 

	
  

  	
  ENTERON GROUP, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John V. Howard, Jr.

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  John V. Howard, Jr. 

  
	
   

  	
   

  	
  Title: 

  	
  Sr. V.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BIG FLOWER DIGITAL SERVICES 

  
	
   

  	
  (DELAWARE), INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John V. Howard, Jr.

  
	
   

  	
   

  	
  Name: 

  	
  John V. Howard, Jr. 

  	
   

  
	
   

  	
   

  	
  Title: 

  	
  Sr. V.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BIG FLOWER DIGITAL LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BIG FLOWER DIGITAL SERVICES

  
	
   

  	
  (DELAWARE), INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John V. Howard Jr.

  	
   

  
	
   

  	
   

  	
  Name: 

  	
  John V. Howard, Jr.

  
	
   

  	
   

  	
  Title: 

  	
  Sr. V.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Notice Address for all Guarantors: 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Vertis, Inc.

  
	
   

  	
   

  	
  250 W. Pratt Street

  
	
   

  	
   

  	
  18th Floor

  
	
   

  	
   

  	
  Baltimore, MD 21201

  
	
   

  	
   

  	
  Attention:

  	
  Chief Financial

  
	
   

  	
   

  	
   

  	
  Officer

  
	
   

  	
   

  	
  Telephone:

  	
  (410) 528-9800

  
	
   

  	
   

  	
  Telecopy: 

  	
  (410) 528-9287

  
	
   

  	
   

  	
   

  
						

 

IN WITNESS WHEREOF, the parties hereto have caused
this Indenture to be duly executed as of the date first written above.

	
  

  	
  VERTIS, INC.,

  
	
   

  	
  as Issuer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Geovanni Barris

  	
   

  
	
   

  	
   

  	
  Name:

  	
  GEOVANNI BARRIS

  
	
   

  	
   

  	
  Title:

  	
  VICE PRESIDENT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SUBSIDIARY GUARANTORS:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PRINTCO., INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WEBCRAFT, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  WEBCRAFT CHEMICALS, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

EXHIBIT A-1

[FORM OF SERIES A SECURITY]

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR
BENEFIT OF U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF,
THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND
IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE
904 UNDER THE SECURITIES ACT OR (C) IT IS AN ACCREDITED INVESTOR (AS DEFINED IN
RULE 501(a)(l), (2),(3) OR (7) UNDER THE SECURITIES ACT) (AN “ACCREDITED
INVESTOR”), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL
ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY EXCEPT (A)
TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A
QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT, PRIOR TO SUCH
TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO
THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF WHICH
LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS SECURITY), (D) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM REGISTRATION
PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) (F) IN ACCORDANCE
WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
(AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), OR (G)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
(3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION
WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE
OF THIS SECURITY, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE
HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY
SUCH CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY
REASONABLY

 A-1-1
 

REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS “OFFSHORE
TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM
BY REGULATION S UNDER THE SECURITIES ACT.

 A-1-2
 

 

	
  No.

  	
   

  	
  $[     ]

  

VERTIS, INC.

131⁄2% SENIOR SUBORDINATED NOTE
DUE 2009

VERTIS, INC. promises to pay to        or
registered assigns the principal sum of [        ]
Dollars on December 7, 2009.

Interest Payment Dates: June 1 and December 1

Record Dates: May 15 and November 15

	
  

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signature

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signature

  

 

Dated:
[            ],
2003

CERTIFICATE OF AUTHENTICATION

This is one of the 131⁄2% Senior Subordinated Notes due 2009 referred to in the
within-mentioned Indenture.

	
  

  	
   

  	
  THE BANK OF NEW YORK,

  
	
   

  	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Authorized
  Signatory

  

 

 A-1-3
 

(REVERSE O F
SECURITY)

131⁄2% SENIOR SUBORDINATED NOTE DUE 2009

1.         Interest.
VERTIS, INC., a Delaware corporation (the “Company”, which term shall include
any successor thereto in accordance with the Indenture), promises to pay, until
the principal hereof is paid or made available for payment, interest (including
any Accrued Bankruptcy Interest) on the principal amount set forth on the
reverse side hereof at a rate of 131⁄2%
per  annum. Interest on the Notes will accrue from and including
the most recent date to which interest has been paid or, if no interest has
been paid, from and including the date of issuance of such Notes through but
excluding the date on which interest is paid. Interest shall be payable in
arrears on June 1 and December 1 (each an “Interest Payment Date”). Interest
will be computed on the basis of a 360-day year of twelve full 30-day months.

To the extent a Note is issued for original issue
after February 28, 2003, the Holder of such Note is hereby obligated upon
original issuance of such Note to pay the Company in U.S. Legal Tender the
amount of accrued and unpaid interest on such Note from the later of February
28, 2003 or the most recently completed Interest Payment Date to the date of
original issuance of such Note.

2.         Method
of Payment. The Company will pay interest on the Notes (except defaulted
interest) to the Persons who are registered Holders of Notes at the close of
business on the May 15 or November 15 immediately preceding the Interest
Payment Date. Holders must surrender Notes to a Paying Agent to collect
principal payments. The Company will pay principal, premium, if any, and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts. At the Company’s option,
interest may be paid by check mailed to the registered address of the Holder of
this Note.

3.         Paying
Agent and Registrar. Initially, The Bank of New York (the “Trustee”) will
act as Paying Agent and Registrar. The Company may change any Paying Agent,
Registrar or co-Registrar without notice.

4.         Indenture.
The Company issued the Notes under an Indenture dated as of February 28, 2003
(the “Indenture”) among the Company, the Guarantors and the Trustee. This Note
is one of an issue of Notes of the Company issued under the Indenture. The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as amended from time
to time. The Notes are subject to all such terms, and Securityholders are
referred to the Indenture and such Act for a statement of them. Capitalized
terms used herein and not otherwise defined have the meanings set forth in the
Indenture. The Notes are general unsecured obligations of the Company limited
in aggregate principal amount to $293,500,000.

 A-1-4
 

Under Article XI of the Indenture, the payment on each Note is
guaranteed on a senior subordinated basis by the Guarantors.

5.         Optional
Redemption. The Notes are not redeemable before January 1, 2005.
Thereafter, the Company may redeem the Notes at its option, in whole or in
part, upon not less than 30 nor more than 60 days’ notice, at the following
redemption prices (expressed as percentages of the principal amount thereof) if
redeemed during the twelve-month period commencing on January 1 of the year set
forth below:

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  106.75

  	
  %

  
	
  2006

  	
   

  	
  104.50

  	
  %

  
	
  2007

  	
   

  	
  102.25

  	
  %

  
	
  2008 and thereafter

  	
   

  	
  100.00

  	
  %

  

 

In addition, the Company must pay accrued and unpaid
interest on the Notes redeemed.

6.         Notice
of Redemption. Notice of redemption will be mailed at least 30 days but not
more than 60 days before the redemption date to each holder of Notes to be
redeemed at his registered address. On and after the Redemption Date, unless
the Company defaults in making the redemption payment, interest ceases to
accrue on Notes or portions thereof called for redemption.

7.         Offers
to Purchase. Sections 4.12 and 4.15 of the Indenture provide that after an
Asset Sale, or upon the occurrence of a Change of Control, and subject to
further limitations contained therein, the Company shall make an offer to
purchase certain amounts of Notes in accordance with the procedures set forth
in the Indenture.

8.         Denominations,
Transfer, Exchange. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. A Holder may transfer
or exchange Notes in accordance with the Indenture. The Registrar may require a
Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay to it any taxes and fees required by law or permitted by
the Indenture. The Registrar need not transfer or exchange any Note or portion
of a Note selected for redemption, or transfer or exchange any Notes for a
period of 15 days before a selection of Notes to be redeemed.

9.         Persons
Deemed Owners. The registered holder of a Note may be treated as the owner
of it for all purposes.

 A-1-5
 

10.       Unclaimed
Money. If money for the payment of principal or interest remains unclaimed
for two years, the Trustee or Paying Agent will pay the money back to the
Company at its request. After that, Holders entitled to the money must look to
the Company for payment as general creditors unless an “abandoned property” law
designates another Person.

11.       Amendment,
Supplement, Waiver. The Company and the Trustee may, without the consent of
the holders of any outstanding Notes, amend, waive or supplement the Indenture
or the Notes for certain specified purposes, including, among other things,
curing ambiguities, defects or inconsistencies, maintaining the qualification
of the Indenture under the Trust Indenture Act of 1939 or making any other
change that does not adversely affect the rights of any Holder. Other
amendments and modifications of the Indenture or the Notes may be made by the
Company, the Guarantors and the Trustee with the consent of the Holders of not
less than a majority in aggregate principal amount of the outstanding Notes,
subject to certain exceptions requiring the consent of the Holders of the
particular Notes (and, in certain cases, holders of Designated Senior Debt) to
be affected.

12.       Successor
Corporation. When a successor corporation assumes all the obligations of
its predecessor under the Notes and the Indenture and the transaction complies
with the terms of Article V of the Indenture, the predecessor corporation will,
subject to certain exceptions, be released from those obligations.

13.       Defaults
and Remedies. Events of Default include: default in payment of principal of
or premium on the Notes at maturity, or upon acceleration, redemption or
otherwise; default in payment of interest on any Note for 30 days; certain
defaults under other Indebtedness; failure by the Company for 30 days after
written notice to it from the Trustee or Holders of at least 25% in principal
amount of the then outstanding Notes, to comply with any of the other
agreements or covenants in or provisions of the Indenture or the Notes; certain
events of bankruptcy or insolvency with respect to the Company and its
Significant Subsidiaries; certain final judgments that remain undischarged for
60 days after being entered; any Guarantee of a Significant Subsidiary ceases
to be in full force and effect; and any Guarantor that is a Significant
Subsidiary shall deny its obligations under its Guarantee. If an Event of
Default occurs and is continuing (and has not been waived in accordance with
the provisions of the Indenture), the Trustee or the Holders of at least 25% in
aggregate principal amount of the then outstanding Notes may declare all the
Notes to be immediately due and payable for an amount equal to 100% of the
principal amount of the Notes plus accrued interest to the date of payment,
except that in the case of an Event of Default arising from certain events of
bankruptcy or insolvency, all outstanding Notes become due and payable
immediately without further action or notice, subject to the rights of holders
of Senior Debt. Holders may not enforce the Indenture or the Notes except as
provided in the Indenture. The Trustee may require indemnity satisfactory to it
before it enforces the Indenture or the Notes. Subject to certain limitations,
Holders of a majority in principal amount of the then

 A-1-6
 

outstanding Notes may direct the Trustee in its exercise of any trust
or power. The Trustee may withhold from Holders notice of any continuing
Default or Event of Default (except a Default or an Event of Default in payment
of principal, premium, if any, or interest) if and so long as a committee of
its Responsible Officers determines in good faith that withholding notice is in
their interests. The Company must furnish an annual compliance certificate to
the Trustee.

14.       Restrictive
Covenants. The Indenture imposes certain limitations on the ability of the
Company and its Subsidiaries to, among other things, pay dividends and make
distributions with respect to or repurchase or otherwise acquire or retire for
value any of their equity interests, make certain Investments, incur additional
Indebtedness, enter into transactions with Affiliates, incur Liens, sell
assets, merge or consolidate with any other Person and sell, lease, transfer or
otherwise dispose of substantially all of their properties or assets. The
limitations are subject to a number of important qualifications and exceptions.
The Company must annually report to the Trustee on compliance with such
limitations.

15.       Trustee
Dealings with Company. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the
Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not Trustee.

16.       No
Recourse Against Others. No past, present or future director, officer,
employee, incorporator or stockholder of the Company, as such, shall have any
liability for any obligations of the Company under the Notes or the Indenture
or for any claim based on, in respect of or by reason of such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the
issuance of the Notes.

17.       Discharge
of Indenture; Defeasance. The Indenture contains provisions for defeasance
at any time, upon compliance with certain conditions set forth therein, of (i)
the entire indebtedness of this Note or (ii) certain restrictive covenants and
Events of Default with respect to this Note.

18.       Authentication.
This Note shall not be valid until the Trustee signs the certificate of
authentication on the other side of this Note.

19.       Abbreviations.
Customary abbreviations may be used in the name of a Security holder or an
assignee, such as: TEN COM (= tenants in common), TENANT (= tenants by the
entireties), JT TEN (= joint tenants with right of survivorship and not as
tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act).

20.       Subordination.
The Notes are subordinated to all Senior Debt, which includes any Indebtedness
permitted to be incurred pursuant to the terms of the “Limitation on

 A-1-7
 

Additional Indebtedness” covenant in the Indenture, unless the
instrument under which such Indebtedness is incurred expressly provides that it
is on a parity with or subordinated in right of payment to the Notes. The Guarantees
in respect of the Notes are subordinated to all Guarantor Senior Debt of each
Guarantor, whether outstanding on the date of the Indenture or thereafter
created, incurred, assumed or guaranteed. Each Holder, by its acceptance
hereof, agrees to be bound by such provisions and authorizes and expressly
directs the Trustee, on its behalf, to take such action as may be necessary or
appropriate to effectuate the subordination provided for in the Indenture and
appoints the Trustee its attorney-in-fact for such purposes.

21.       Registration
Rights. Pursuant to the Registration Rights Agreement, the Company will be
obligated to consummate an exchange offer pursuant to which the Holder of this
Note shall have the right to exchange this Note for Notes of a separate series
issued under the Indenture (or a trust indenture substantially identical to the
Indenture in accordance with the terms of the Registration Rights Agreement)
which have been registered under the Securities Act, in like principal amount
and having identical terms as this Note. The Holders of the Notes shall be
entitled to receive certain additional interest payments in the event such
exchange offer is not consummated and upon certain other conditions, all
pursuant to and in accordance with the terms of the Registration Rights
Agreement.

22.       GOVERNING
LAW. THE INDENTURE AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW.

The provisions of this Note are expressly made subject
to the more detailed provisions set forth in the Indenture and the Registration
Rights Agreement, which shall for all purposes be controlling. The Company will
furnish to any Holder upon written request and without charge a copy of the Indenture.
Requests may be made to:

VERTIS, INC. 

250 W. Pratt Street 

18th Floor 

Baltimore, MD 21201 

Attention: Chief Financial Officer

 A-1-8

ASSIGNMENT FORM

If you the holder want to assign this Note, fill in
the form below and have your signature guaranteed:

I or we assign and transfer this Note to

 

(Insert assignee’s social security or tax ID number) 

 

 

 

 

 

 

(Print or type assignee’s name, address and zip code)
and irrevocably appoint agent to transfer this Note on the books of the
Company. The agent may substitute another to act for him.

 

 

	
  Date:

  	
   

  	
   Your signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on

  
	
   

  	
   

  	
   

  	
   

  	
  the other side of this Note)

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
							

 

OPTION OF HOLDER TO ELECT
PURCHASE

If you wish to have this
Note purchased by the Company pursuant to Section 4.12 or 4.15 of the
Indenture, check the Box: o

If you wish to have a
portion of this Note purchased by the Company pursuant to Section 4.12 or 4.15
of the Indenture, state the amount:

$                                

 

	
  Date:

  	
   

  	
   Your signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on

  
	
   

  	
   

  	
   

  	
   

  	
  the other side of this Note)

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
							

 

EXHIBIT
A-2 

[FORM OF SERIES B SECURITIES]

	
  No.

  	
  $

  

 

VERTIS, INC.

131⁄2% SENIOR SUBORDINATED NOTE DUE
2009

VERTIS, INC. promises to
pay to
                         
or registered assigns the principal sum of
                                
Dollars on December 7, 2009.

Interest Payment Dates: June 1 and December 1

Record Dates: May 15 and November 15

	
  

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Dated: [                              ],
  2003

  	
   

  	
   

  	
   

  

 

CERTIFICATE OF AUTHENTICATION

This is one of the 131⁄2%
Senior Subordinated Notes due 2009 referred to in the within-mentioned
Indenture.

	
  

  	
  THE BANK OF NEW YORK,

  as Trustee

  
	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  	
   

  

 

 A-2-1
 

(REVERSE OF SECURITY)

131⁄2% SENIOR SUBORDINATED NOTE DUE
2009

1.        Interest. VERTIS, INC., a Delaware corporation (the “Company”,
which term shall include any successor thereto in accordance with the
Indenture), promises to pay, until the principal hereof is paid or made
available for payment, interest (including any Accrued Bankruptcy Interest) on
the principal amount set forth on the reverse side hereof at a rate of 131⁄2% per
annum. Interest on the Notes will accrue from and including the most recent
date to which interest has been paid or, if no interest has been paid, from and
including the date of issuance of such Notes through but excluding the date on
which interest is paid. Interest shall be payable in arrears on June 1 and
December 1 (each an “Interest Payment Date”). Interest will be computed on the
basis of a 360-day year of twelve full 30-day months.

To the extent a Note is
issued for original issue after February 28, 2003, the Holder of such Note is
hereby obligated upon original issuance of such Note to pay the Company in U.S.
Legal Tender the amount of accrued and unpaid interest on such Note from the
later of February 28, 2003 or the most recently completed Interest Payment Date
to the date of original issuance of such Note.

2.        Method of Payment. The Company will pay interest on
the Notes (except defaulted interest) to the Persons who are registered Holders
of Notes at the close of business on the May 15 or November 15 immediately
preceding the Interest Payment Date. Holders must surrender Notes to a Paying
Agent to collect principal payments. The Company will pay principal, premium,
if any, and interest in money of the United States that at the time of payment
is legal tender for payment of public and private debts. At the Company’s
option, interest may be paid by check mailed to the registered address of the
Holder of this Note.

3.        Paying Agent and
Registrar. Initially, The Bank of New York (the “Trustee”) will act as
Paying Agent and Registrar. The Company may change any Paying Agent, Registrar
or co-Registrar without notice.

4.        Indenture. The Company issued the Notes under an
Indenture dated as of February 28, 2003 (the “Indenture”) among the Company,
the Guarantors and the Trustee. This Note is one of an issue of Notes of the
Company issued under the Indenture. The terms of the Notes include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as amended from time
to time. The Notes are subject to all such terms, and Securityholders are
referred to the Indenture and such Act for a statement of them. Capitalized
terms used herein and not otherwise defined have the meanings set forth in the
Indenture. The Notes are general unsecured obligations of the Company limited
in aggregate principal amount to $293,500,000.

 A-2-2
 

Under Article XI of the Indenture, the payment of each
Note is guaranteed on a senior subordinated basis by the Guarantors.

5.        Optional Redemption. The Notes are not redeemable
before January 1, 2005. Thereafter, the Company may redeem the Notes at its
option, in whole or in part, upon not less than 30 nor more than 60 days’
notice, at the following redemption prices (expressed as percentages of the
principal amount thereof) if redeemed during the twelve-month period commencing
on January 1 of the year set forth below:

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2005

  	
   

  	
  106.75

  	
  %

  
	
  2006

  	
   

  	
  104.50

  	
  %

  
	
  2007

  	
   

  	
  102.25

  	
  %

  
	
  2008 and
  thereafter

  	
   

  	
  100.00

  	
  %

  

 

In addition, the Company must
pay accrued and unpaid interest on the Notes redeemed.

6.        Notice of Redemption. Notice of redemption will be
mailed at least 30 days but not more than 60 days before the redemption date to
each holder of Notes to be redeemed at his registered address. On and after the
Redemption Date, unless the Company defaults in making the redemption payment,
interest ceases to accrue on Notes or portions thereof called for redemption.

7.        Offers to Purchase.
Sections 4.12 and 4.15 of the Indenture provide that after an Asset Sale, or
upon the occurrence of a Change of Control, and subject to further limitations
contained therein, the Company shall make an offer to purchase certain amounts
of Notes in accordance with the procedures set forth in the Indenture.

8.        Denominations,  Transfer, Exchange. The Notes
are in registered form without coupons in denominations of $1,000 and integral
multiples of $1,000. A Holder may transfer or exchange Notes in accordance with
the Indenture. The Registrar may require a Holder, among other things, to
furnish appropriate endorsements and transfer documents and to pay to it any
taxes and fees required by law or permitted by the Indenture. The Registrar
need not transfer or exchange any Note or portion of a Note selected for
redemption, or transfer or exchange any Notes for a period of 15 days before a
selection of Notes to be redeemed.

9.        Persons Deemed Owners. The registered holder of a Note
may be treated as the owner of it for all purposes.

 A-2-3
 

10.      Unclaimed Money. If money for the
payment of principal or interest remains unclaimed for two years, the Trustee
or Paying Agent will pay the money back to the Company at its request. After
that, Holders entitled to the money must look to the Company for payment as
general creditors unless an “abandoned property” law designates another Person.

11.      Amendment, Supplement, Waiver. The
Company, the Guarantors and the Trustee may, without the consent of the holders
of any outstanding Notes, amend, waive or supplement the Indenture or the Notes
for certain specified purposes, including, among other things, curing
ambiguities, defects or inconsistencies, maintaining the qualification of the
Indenture under the Trust Indenture Act of 1939 or making any other change that
does not adversely affect the rights of any Holder. Other amendments and
modifications of the Indenture or the Notes may be made by the Company, the
Guarantors and the Trustee with the consent of the Holders of not less than a
majority in aggregate principal amount of the outstanding Notes, subject to
certain exceptions requiring the consent of the Holders of the particular Notes
(and, in certain cases, holders of Designated Senior Debt) to be affected.

12.      Successor Corporation. When a
successor corporation assumes all the obligations of its predecessor under the
Notes and the Indenture and the transaction complies with the terms of Article
V of the Indenture, the predecessor corporation will, subject to certain
exceptions, be released from those obligations.

13.      Defaults and Remedies. Events of
Default include: default in payment of principal of or premium on the Notes at
maturity, or upon acceleration, redemption or otherwise; default in payment of
interest on any Note for 30 days; certain defaults under other Indebtedness;
failure by the Company or its Subsidiaries for 30 days after written notice to
it from the Trustee or Holders of at least 25% in principal amount of the then
outstanding Notes, to comply with any of the other agreements or covenants in
or provisions of the Indenture or the Notes; certain events of bankruptcy or
insolvency with respect to the Company and its Significant Subsidiaries;
certain final judgments that remain undischarged for 60 days after being
entered; any Guarantee of a Significant Subsidiary ceases to be in full force
and effect; and any Guarantor that is a Significant Subsidiary shall deny its
obligations under its Guarantee. If an Event of Default occurs and is
continuing (and has not been waived in accordance with the provisions of the
Indenture), the Trustee or the Holders of at least 25% in aggregate principal
amount of the then outstanding Notes may declare all the Notes to be
immediately due and payable for an amount equal to 100% of the principal amount
of the Notes plus accrued interest to the date of payment, except that in the
case of an Event of Default arising from certain events of bankruptcy or
insolvency, all outstanding Notes become due and payable immediately without
further action or notice, subject to the rights of holders of Senior Debt. Holders
may not enforce the Indenture or the Notes except as provided in the Indenture.
The Trustee may require indemnity satisfactory to it before it enforces the
Indenture or the Notes. Subject to certain limitations, Holders of a majority
in principal

 A-2-4
 

amount of the then outstanding Notes may direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders notice of any continuing Default or Event of Default (except a Default
or an Event of Default in payment of principal, premium, if any, or interest)
if and so long as a committee of its Responsible Officers determines in good
faith that withholding notice is in their interests. The Company must furnish
an annual compliance certificate to the Trustee.

14.      Restrictive Covenants. The
Indenture imposes certain limitations on the ability of the Company and its
Subsidiaries to, among other things, pay dividends and make distributions with
respect to or repurchase or otherwise acquire or retire for value any of their
Equity Interests, make certain Investments, incur additional Indebtedness,
enter into transactions with Affiliates, incur Liens, sell assets, merge or
consolidate with any other Person and sell, lease, transfer or otherwise
dispose of substantially all of their properties or assets. The limitations are
subject to a number of important qualifications and exceptions. The Company
must annually report to the Trustee on compliance with such limitations.

15.      Trustee Dealings with Company. The
Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may
otherwise deal with the Company or its Affiliates, as if it were not Trustee.

16.      No Recourse Against Others. No
past, present or future director, officer, employee, incorporator or
stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Notes or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation.
Each Holder by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for the issuance of the Notes.

17.      Discharge of Indenture; Defeasance.
The Indenture contains provisions for defeasance at any time, upon compliance
with certain conditions set forth therein, of (i) the entire indebtedness of
this Note or (ii) certain restrictive covenants and Events of Default with
respect to this Note.

18.      Authentication. This Note shall not
be valid until the Trustee signs the certificate of authentication on the other
side of this Note.

19.      Abbreviations. Customary
abbreviations may be used in the name of a Securityholder or an assignee, such
as: TEN COM (= tenants in common), TENANT (= tenants by the entireties), JT TEN
(= joint tenants with right of survivorship and not as tenants in common), CUST
(= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

20.      Subordination. The Notes are
subordinated to all Senior Debt, which includes any Indebtedness permitted to
be incurred pursuant to the terms of the “Limitation on

 A-2-5
 

Additional Indebtedness” covenant in the Indenture,
unless the instrument under which such Indebtedness is incurred expressly
provides that it is on a parity with or subordinated in right of payment to the
Notes. The Guarantees in respect of the Notes are subordinated to all Guarantor
Senior Debt of each Guarantor, whether outstanding on the date of the Indenture
or thereafter created, incurred, assumed or guaranteed. Each Holder, by its acceptance
hereof, agrees to be bound by such provisions and authorizes and expressly
directs the Trustee, on its behalf, to take such action as may be necessary or
appropriate to effectuate the subordination provided for in the Indenture and
appoints the Trustee its attorney-in-fact for such purposes.

21.      GOVERNING LAW. THE INDENTURE AND
THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

The provisions of this Note
are expressly made subject to the more detailed provisions set forth in the
Indenture, which shall for all purposes be controlling. The Company will
furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

VERTIS, INC.

250 W. Pratt Street 

18th Floor 

Baltimore, MD 21201 

Attention: Chief Financial Officer

 A-2-6

ASSIGNMENT FORM

If you the holder want to
assign this Note, fill in the form below and have your signature guaranteed:

I or we assign and transfer this Note to

 

(Insert assignee’s social security or tax ID number) 

 

 

 

 

 

 

(Print or type assignee’s name, address and zip code)
and irrevocably appoint 

 

agent to transfer this Note on the books of the
Company. The agent may substitute another to act for him.

 

 

	
  Date:

  	
   

  	
   Your
  signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on the other side
  of this Note)

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
						

 

OPTION OF HOLDER TO ELECT
PURCHASE

If you wish to have this
Note purchased by the Company pursuant to Section 4.12 or 4.15 of the
Indenture, check the Box: o

If you wish to have a
portion of this Note purchased by the Company pursuant to Section 4.12 or 4.15
of the Indenture, state the amount:

$                                

 

	
  Date:

  	
   

  	
   Your
  signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (Sign exactly as your name appears on the other side
  of this Note)

  
	
   

  
	
  Signature Guarantee:

  	
   

  	
   

  
							

 

EXHIBIT B 

FORM OF LEGEND FOR BOOK-ENTRY
SECURITIES

Any Global Security
authenticated and delivered hereunder shall bear a legend (which would be in
addition to any other legends required in the case of a Restricted Security) in
substantially the following form:

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A
SUCCESSOR DEPOSITORY. THIS SECURITY IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED
IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY
TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR I N SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

 B-1

EXHIBIT C 

Form of
Certificate To Be

Delivered in Connection with 

Transfers to Non-QTB Accredited Investors 

                           ,
       

The Bank of New York 

101 Barclay Street

New York, NY 10286

Attention: Corporate
Trust Administration

Re:                               Vertis,
Inc. (the “Company”) 131⁄2% 

Senior Subordinated Notes due 2009 (the “Securities”)

Ladies and Gentlemen:

In
connection with our proposed purchase of $                 
aggregate principal amount of the Securities, we confirm that:

1.        We have received such information as we
deem necessary in order to make our investment decision.

2.        We understand that any subsequent
transfer of the Securities is subject to certain restrictions and conditions
set forth in the Indenture and the undersigned agrees to be bound by, and not
to resell, pledge or otherwise transfer the Securities except in compliance
with, such restrictions and conditions and the Securities Act of 1933, as
amended (the “Securities Act”).

3.        We understand that the offer and sale of
the Securities have not been registered under the Securities Act, and that the
Securities may not be offered or sold except as permitted in the following
sentence. We agree, on our own behalf and on behalf of any accounts for which
we are acting as hereinafter stated, that if we should sell or otherwise
transfer any Securities prior to the date which is two years after the original
issuance of the Securities, we will do so only (i) to the Company or any
subsidiary thereof, (ii) inside the United States in accordance with Rule 144A
under the Securities Act to a person whom we reasonably believe is a “qualified
institutional buyer” (as defined in Rule 144A under the Securities Act), (iii)
inside the United States to an accredited investor (as defined below) that,

 C-1
 

prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you a
signed letter containing certain representations and agreements relating to the
restrictions on transfer of the Securities, (iv) outside the United States in
an offshore transaction in accordance with Rule 904 of Regulation S under the
Securities Act, (v) pursuant to the exemption from registration provided by
Rule 144 under the Securities Act (if available), or (vi) pursuant to an
effective registration statement under the Securities Act, and we further agree
to provide to any Person purchasing any of the Securities from us a notice
advising such purchaser that resales of the Securities are restricted as stated
herein.

4.        We understand that, on any proposed
resale of any Securities, we will be required to furnish to you and the Company
such certification, legal opinions and other information as you and the Company
may reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that the Securities purchased by
us will bear a legend to the foregoing effect.

5.        We are an institutional “accredited
investor” (as defined in Rule 501(a)(l), (2), (3) or (7) of Regulation D under
the Securities Act)(an “accredited investor”) and have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Securities, and we and any accounts
for which we are acting are each able to bear the economic risk of our or their
investment, as the case may be.

6.        We are acquiring the Securities
purchased by us for our account or for one or more accounts (each of which is
an accredited investor) as to each of which we exercise sole investment
discretion.

 C-2
 

You
and the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby.

	
  

  	
  Very truly
  yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of
  Transferee]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signature

  	
   

  
					

 

 C-3

EXHIBIT D 

Form of Certificate To Be
Delivered

in Connection with Transfers

Pursuant to Regulation S

                           ,
        

The Bank of New York 

101 Barclay Street 

New York, NY 10286 

Attention: Corporate Trust Administration

Re:                               Vertis,
Inc. (the “Company”) 131⁄2% Senior

Subordinated Notes due 2009 (the “Securities”)  

Dear Sirs:

In connection with our
proposed sale of $                    
aggregate principal amount of the Securities, we confirm that such sale has
been effected pursuant to and in accordance with Regulation S under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we
represent that:

(1)       the offer of the Securities was not made
to a Person in the United States;

(2)       either (a) at the time the buy offer was
originated, the transferee was outside the United States or we and any Person
acting on our behalf reasonably believed that the transferee was outside the
United States, or (b) the transaction was executed in, on or through the
facilities of a designated off-shore securities market and neither we nor any
Person acting on our behalf knows that the transaction has been pre-arranged
with a buyer in the United States;

(3)       no directed selling efforts have been
made in the United States in contravention of the requirements of Rule 903(b)
or Rule 904(b) of Regulation S, as applicable;

(4)       the transaction is not part of a plan or
scheme to evade the registration requirements of the Securities Act; and

(5)       we
have advised the transferee of the transfer restrictions applicable to the
Securities.

 D-1
 

You and the Company are
entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceedings or official inquiry with respect to the matters covered
hereby. Terms used in this certificate have the meanings set forth in
Regulation S.

	
  

  	
  Very truly
  yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name of
  Transferor]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  	
   

  
					

 

 D-2

EXHIBIT E

[FORM OF NOTATION ON NOTE

RELATING TO GUARANTEES]

GUARANTEES

The Guarantors (as
defined in the Indenture (the “Indenture”) referred to in the Note upon which
this notation is endorsed and each hereinafter referred to as a “Guarantor”)
have unconditionally guaranteed on a senior subordinated basis (such guarantee
by each Guarantor being referred to herein as the “Guarantee”) (i) the due and
punctual payment of the principal of and interest on the Notes in full when
due, subject to any applicable grace period, whether at maturity, by
acceleration or otherwise and interest on the overdue principal, if any, and
interest on any interest, if any, to the extent lawful, of the Notes and all
other obligations of the Company to the Holders all in accordance with the
terms set forth in of the Indenture and (ii) in case of any extension of time
of payment or renewal of any Notes or of any of such other obligations, that
the same will be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, subject to any applicable grace period,
whether at stated maturity, by acceleration or otherwise.

The obligations of each
Guarantor to the Holders and the Trustee of the Notes pursuant to the Guarantee
and the Indenture are expressly set forth and are expressly subordinated and
subject in right of payment to the prior payment in full of all Guarantor
Senior Debt of such Guarantor, to the extent and in the manner provided, in
Article XII  of the Indenture, and
reference is hereby made to such Indenture for the precise terms of the
Guarantee therein made.

No past, present or
future stockholder, director, officer, employee or incorporator, as such, of
any of the Guarantors shall have any liability for any obligation of the
Guarantors under the Guarantee or the Indenture or for any claim based on, in
respect of or by reason of, such obligations or their creation. Each Holder of
a Note by accepting a Note waives and releases all such liability. The waiver
and release are part of the consideration for the issuance of the Guarantees.

	
  

  	
   

  	
  SUBSIDIARY GUARANTORS:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PrintCo., Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 E-1
 

 

	
  

  	
   

  	
  Webcraft, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
  

  	
   

  	
  Webcraft Chemicals, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 

	
  

  	
   

  	
  Enteron Group, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 E-2
 

 

	
  

  	
   

  	
  Big Flower Digital Services (Delaware), Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

	
  

  	
   

  	
  Big Flower Digital LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

 E-3Exhibit
10.5

AMENDMENT NO. 4 TO
CREDIT AGREEMENT

This Amendment No.
4 to Credit Agreement, dated as of May 30, 2006 (this “Amendment”), is
entered into by and among Vertis, Inc., as a Borrower (“Borrower”), the
other Credit Parties signatory hereto, General Electric Capital Corporation, as
a Lender and as Agent for Lenders (“Agent”), and the other Lenders.

RECITALS

A.            Borrower, the other Credit Parties, Agent and Lenders are
parties to that certain Credit Agreement, dated as of December 22, 2004,
including all annexes, exhibits and schedule thereto (as amended by that
certain Limited Consent and Amendment No. 1 to Credit Agreement, dated as of
October 3, 2005, that certain Amendment No. 2 to Credit Agreement, dated as of
November 22, 2005, and that certain Limited Consent and Amendment No. 3 to
Credit Agreement, dated as of December 12, 2005, and as from time to time
further amended, restated, supplemented or otherwise modified, the “Credit
Agreement”).

B.            Borrower and the other Credit Parties have requested that
Agent and Lenders consent to certain amendments to the Credit Agreement as set
forth herein in Section 2 in order to increase: (i) the advance rate on
Fixed Assets with respect to the calculation of the Borrowing Base; and (ii)
the amount of each Lender’s Revolving Loan Commitment.

C.            Borrower, the other Credit Parties, Agent and Lenders are
willing to consent to the amendments set forth herein pursuant to, and subject
to, the terms and conditions set forth in this Amendment.

D.            This Amendment shall constitute a Loan Document and these
Recitals shall be construed as part of this Amendment.

NOW THEREFORE, in
consideration of the premises and the mutual covenants hereinafter contained,
and of the Loans and other extensions of credit heretofore, now or hereafter
made to, or for the benefit of, Borrower by Lenders, Borrower, the other Credit
Parties, Agent and Lenders hereby agree as follows:

1.             Definitions. 
Except to the extent otherwise specified herein, capitalized terms used
in this Amendment shall have the same meanings ascribed to them in the Credit
Agreement and Annex A thereto.

2.             Amendments.

2.1.          Section 6.2(g) of
the Credit Agreement is hereby deleted in its entirety and replaced with the
following paragraph:

 “(g)        Non-Real
Estate Fixed Asset Appraisal and Real Estate Appraisal.  Upon the election of Agent, which may be made
at any time while and so long as a 

Default or Event of
Default shall be continuing and not more than once per year so long as no
Default or Event of Default has occurred and is continuing, Agent may conduct
appraisals and audits and obtain appraisal reports in form and substance and
from appraisers reasonably satisfactory to Agent (which may be, or be
affiliated with, a Lender) with respect to the fixed assets (excluding real
estate) of the Borrower and the other Credit Parties (the “Non-Real Estate
Fixed Asset Appraisal”) which reports shall indicate whether or not the
relevant information set forth in the Borrowing Base Certificate most recently
delivered is accurate and complete in all material respects based upon a review
by such appraiser;  provided, that so
long as no Default or Event of Default has occurred and is continuing, Borrower’s
obligation to reimburse out-of-pocket expenses in respect of any such Non-Real
Estate Fixed Asset Appraisal shall not exceed $125,000.  At the request of the Borrower made at any
time in the reasonable discretion of Borrower, Agent may conduct appraisals and
obtain appraisal reports in form and substance and from appraisers reasonably satisfactory
to Agent (which may be, or be affiliated with, a Lender) with respect to the
owned real estate of the Borrower and the other Credit Parties (the “Real
Estate Appraisal”) which reports shall indicate whether or not the relevant
information set forth in the Borrowing Base Certificate most recently delivered
is accurate and complete in all material respects based upon a review by such
appraiser.  In addition, for periods
beginning on or after January 1, 2007, upon the election of Agent, which may be
made at any time while and so long as a Default or Event of Default shall be
continuing and not more than once per year so long as no Default or Event of
Default is continuing, Agent may conduct a Real Estate Appraisal which report
shall satisfy the requirements set forth in the immediately preceding sentence.”

2.2.          Annex A to the
Credit Agreement is hereby amended by inserting the following definition in
appropriate alphabetical order:

“Fixed Asset Appraisal
shall mean a Non-Real Estate Fixed Asset Appraisal or a Real Estate Appraisal
as the case may be and as each of such terms is defined in Section 6.2(g).”

2.3.          Section 1.3(e) of
the Credit Agreement is hereby amended by deleting clause (ii) of the proviso
at the end of the first sentence of such Section 1.3(e) and replacing it with
the following:

“(ii) any Non-Real Estate
Fixed Asset Appraisal (as defined in Section 6.2(g) hereof) shall not exceed
$125,000.”

2.4.          Section 4.3 of the
Credit Agreement is hereby amended by deleting the third sentence of such
Section 4.3 and replacing it with the following:

“In addition to the
foregoing, each Credit Party shall permit any authorized representatives of
Agent to conduct a Fixed Asset Appraisal subject to and upon the terms and
conditions set forth in Section 6.2(g) hereof; provided, however,
that, so long as no Default or Event of Default has occurred and is continuing,
(i)

 2
 

Agent shall be limited to
one (1) Non-Real Estate Fixed Asset Appraisal during each calendar year and,
for periods beginning on or after January 1, 2007, one (1) Real Estate
Appraisal during each calendar year, and (ii) Borrower’s obligation to
reimburse out-of-pocket expenses in respect of any such Non-Real Estate Fixed
Asset Appraisal shall not exceed $125,000.”

2.5.          Schedule 1 to
Exhibit 6.2(e) to the Credit Agreement is hereby amended by deleting the figure
“45%” in the “Advance Rate” line with respect to Fixed Assets appearing on the
second page of such Schedule 1 and replacing such figure with “55%”.  Schedule 1 to Exhibit 6.2(e) to the Credit
Agreement is hereby further amended by applying the following adjustments to
the figure “55%” (as herein amended) in the “Advance Rate” line with respect to
Fixed Assets appearing on the second page of such Schedule 1.  Each adjustment will be referred to as a “Step
Down” and will occur on the dates detailed in the following table.  The Advance Rate associated with each Step
Down will remain in place until the next Step Down.

	
  Step Down

  	
   

  	
  Date

  	
   

  	
  Advance Rate on Fixed Assets

  	
   

  
	
  1

  	
   

  	
   

  	
  March 31, 2007

  	
   

  	
   

  	
  53%

  	
   

  
	
  2

  	
   

  	
   

  	
  June 30, 2007

  	
   

  	
   

  	
  50%

  	
   

  
	
  3

  	
   

  	
   

  	
  September 30, 2007

  	
   

  	
   

  	
  48%

  	
   

  
	
  4

  	
   

  	
   

  	
  December 31, 2007

  	
   

  	
   

  	
  45%

  	
   

  

 

provided,
however, that, if, prior to December 31, 2007, Agent receives a
Real Estate Appraisal evidencing an amount of at least $45,000,000 in excess of
the Net Book Value (as reported in the most recently delivered Borrowing Base
Certificate) of owned real estate of the Borrower and the other Credit Parties,
then the Advance Rate on Fixed Assets will immediately revert to 45%; and, provided,
further, that, if at any time prior to December 31, 2007 the
Maximum Amount is permanently reduced pursuant to the terms of the Credit
Agreement (whether in connection with a voluntary reduction, a mandatory
reduction or otherwise) to $200,000,000 or less, then the Advance Rate on Fixed
Assets will immediately revert to 45%.

2.6.          Schedule 1 to
Exhibit 6.2(e) to the Credit Agreement is hereby further amended by:

(a)           deleting the line “Real Estate (Net
Book Value)” with respect to Fixed Assets appearing on the second page of such
Schedule 1 and replacing such line with the line “Real Estate (the greater of
Net Book Value and Fair Market Value)”; and

(b)           inserting the following at the end of
such Schedule 1:

“The term “Fair Market
Value” for purposes of this Schedule 1 shall mean the value shown with respect
to owned real estate of the Borrower and the other Credit Parties in the most
recently completed Real Estate Appraisal, if any.”

2.7.          Annex B to the
Credit Agreement is hereby amended by:

 3
 

 

(a)           deleting the figure “$150,000,000”
appearing opposite the name of General Electric Capital Corporation on such
Annex B and replacing such figure with “$165,000,000”.  Annex B to the Credit Agreement is hereby
further amended by applying the following adjustments to the figure “$165,000,000”
(as herein amended) appearing opposite the name of General Electric Capital
Corporation on such Annex B.  Each
adjustment will be referred to as a “Step Down” and will occur on the dates
detailed in the following table.  The
Revolving Loan Commitment of General Electric Capital Corporation associated
with each Step Down will remain in place until the next Step Down.

	
  Step Down

  	
   

  	
  Date

  	
   

  	
  Revolving Loan Commitment

  	
   

  	 

	
  1

  	
   

  	
   

  	
  March 31, 2007

  	
   

  	
   

  	
  $161,250,000

  	
   

  
	
  2

  	
   

  	
   

  	
  June 30, 2007

  	
   

  	
   

  	
  $157,500,000

  	
   

  
	
  3

  	
   

  	
   

  	
  September 30,
  2007

  	
   

  	
   

  	
  $153,750,000

  	
   

  
	
  4

  	
   

  	
   

  	
  December 31, 2007

  	
   

  	
   

  	
  $150,000,000

  	
   

  
										

 

provided,
further, that, if, prior to December 31, 2007, Agent receives a
Real Estate Appraisal then the Revolving Loan Commitment of General Electric
Capital Corporation shall become equal to the lesser of (I) $165,000,000 and
(II) the higher of (x) the then otherwise applicable Revolving Loan Commitment
determined in accordance with the foregoing Step Down table and (y) an amount
equal to (A) $150,000,000 plus (B) 45% of (the Fair Market Value of
owned real estate of the Borrower and the other Credit Parties (as reported in
the Real Estate Appraisal) minus the Net Book Value of owned real estate
of the Borrower and the other Credit Parties (as reported in the most recently
delivered Borrowing Base Certificate)), which calculation shall be made each
subsequent time that (x) Agent receives a Real Estate Appraisal, (y) a Step
Down occurs or (z) the Net Book Value of owned real estate of the Borrower and
the other Credit Parties (as reported in the most recently delivered Borrowing
Base Certificate) changes and following each such subsequent calculation the
Revolving Loan Commitment of General Electric Capital Corporation shall be
accordingly adjusted (it being understood and agreed that in no event
whatsoever shall the Revolving Loan Commitment of General Electric Capital
Corporation exceed $165,000,000); and

(b)           deleting the figure “$50,000,000”
appearing opposite the name of Bank of America, N.A. on such Annex B and
replacing such figure with “$55,000,000”. 
Annex B to the Credit Agreement is hereby further amended by applying
the following adjustments to the figure “$55,000,000” (as herein amended)
appearing opposite the name of Bank of America, N.A. on such Annex B.  Each adjustment will be referred to as a “Step
Down” and will occur on the dates detailed in the following table.  The Revolving Loan Commitment of Bank of
America, N.A. associated with each Step Down will remain in place until the
next Step Down.

 4
 

 

	
  Step Down

  	
   

  	
  Date

  	
   

  	
  Revolving Loan Commitment

  	
   

  
	
  1

  	
   

  	
   

  	
  March 31, 2007

  	
   

  	
   

  	
  $53,750,000

  	
   

  
	
  2

  	
   

  	
   

  	
  June 30, 2007

  	
   

  	
   

  	
  $52,500,000

  	
   

  
	
  3

  	
   

  	
   

  	
  September 30, 2007

  	
   

  	
   

  	
  $51,250,000

  	
   

  
	
  4

  	
   

  	
   

  	
  December 31, 2007

  	
   

  	
   

  	
  $50,000,000

  	
   

  

 

provided,
further, that, if, prior to December 31, 2007, Agent receives a
Real Estate Appraisal then the Revolving Loan Commitment of Bank of America,
N.A. shall become equal to the lesser of (I) $55,000,000 and (II) the higher of
(x) the then otherwise applicable Revolving Loan Commitment determined in
accordance with the foregoing Step Down table and (y) an amount equal to (A)
$50,000,000 plus (B) 45% of (the Fair Market Value of owned real estate
of the Borrower and the other Credit Parties (as reported in the Real Estate
Appraisal) minus the Net Book Value of owned real estate of the Borrower
and the other Credit Parties (as reported in the most recently delivered
Borrowing Base Certificate)), which calculation shall be made each subsequent
time that (x) Agent receives a Real Estate Appraisal, (y) a Step Down occurs or
(z) the Net Book Value of owned real estate of the Borrower and the other
Credit Parties (as reported in the most recently delivered Borrowing Base
Certificate) changes and following each such subsequent calculation the
Revolving Loan Commitment of Bank of America, N.A. shall be accordingly
adjusted (it being understood and agreed that in no event whatsoever shall the
Revolving Loan Commitment of Bank of America, N.A. exceed $55,000,000).

3.             Representations and Warranties.  Each of Borrower and each other Credit Party,
jointly and severally, hereby represents and warrants to Agent and Lenders
that:

3.1.          The execution,
delivery and performance by the Borrower and each of the other Credit Parties
of this Amendment have been duly authorized by all necessary corporate action,
and this Amendment constitutes the legal, valid and binding obligation of the
Borrower and each of the other Credit Parties enforceable against each of them
in accordance with its terms, except as the enforcement hereof may be subject
to the effect of any applicable bankruptcy, insolvency, reorganization,
moratorium or similar law affecting creditors’ rights generally or to general
principles of equity.

3.2.          Each of the
execution, delivery and performance of this Amendment by Borrower and each
Credit Party and the consummation of the transactions contemplated hereby does
not, and will not, contravene or conflict with any provision of (i) law, (ii)
any judgment, decree or order, or (iii) the certificate or articles of
incorporation or by-laws or other constituent documents of Borrower or any
Credit Party, and does not, and will not, contravene or conflict with, or cause
any Lien to arise under, any provision of any indenture, agreement, mortgage,
lease, instrument or other document, including, without limitation, the
February 2003 Senior Subordinated Debt Documents, the 2002 Senior Debt
Documents, the 2003 Senior Secured Debt Documents or the Mezzanine Debt
Documents, binding upon or otherwise affecting Borrower or any Credit Party or
any property of Borrower or any Credit Party.

3.3.          No Default or Event
of Default exists under the Credit Agreement or any other Loan Document or will
exist after or be triggered by the execution, delivery and 

 5
 

performance of this Amendment or the consummation of the transactions
contemplated hereby.  In addition, each
of Borrower and each other Credit Party hereby represents, warrants and
reaffirms that the Credit Agreement and each of the other Loan Documents
remains in full force and effect.

4.             Conditions Precedent to Effectiveness.  The effectiveness of the amendments set forth
in Section 2 hereof are in each instance subject to the satisfaction of
each of the following conditions precedent:

4.1.          Amendment.  This Amendment shall have been duly executed
and delivered by the Borrower, the Credit Parties, Agent and Lenders.

4.2.          No Default.  No Default or Event of Default shall have
occurred and be continuing or would result from the effectiveness of this
Amendment or the consummation of any of the transactions contemplated hereby.

4.3.          Opinion.  Agent and Lenders shall have received an
opinion of counsel to Borrower, Sullivan & Cromwell LLP, with respect to
this Amendment, including, without limitation, as to this Amendment and the
transactions contemplated hereby not conflicting with any provision of the
February 2003 Senior Subordinated Debt Documents, the 2002 Senior Debt
Documents, the 2003 Senior Secured Debt Documents or the Mezzanine Debt
Documents, all in form and substance acceptable to Agent.

4.4.          Notes.  Each Lender shall have received a new
Revolving Note in form and substance acceptable to Agent, duly executed by
Borrower and reflecting such Lender’s increased Revolving Loan Commitment
pursuant to the terms of this Amendment.

4.5.          Amendment Fee.  Borrower shall have paid to the Agent, a
nonrefundable amendment fee for the ratable account of the Lenders, in an
amount equal to $200,000.

4.6.          Miscellaneous.  Agent and Lenders shall have received such
other agreements, instruments and documents as Agent or Lenders may reasonably
request.

5.             Reference to and Effect Upon the Credit Agreement and
other Loan Documents.  

5.1.          Full Force and
Effect.  Except as specifically
provided herein, the Credit Agreement and each other Loan Document shall remain
in full force and effect and each is hereby ratified and confirmed by all
Credit Parties.

5.2.          No Waiver.  The execution, delivery and effect of this
Amendment shall be limited precisely as written and shall not be deemed to (i)
be a consent to any waiver of any term or condition, or to any amendment or
modification of any term or condition (except as specifically provided herein)
of the Credit Agreement or any other Loan Document or (ii) prejudice any right,
power or remedy which the Agent or any Lender now has or may have in the future
under or in connection with the Credit Agreement or any other Loan Document.

5.3.          Certain Terms.  Each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein” or any other word or words of
similar import shall 

 6
 

mean and be a reference to the Credit Agreement as amended hereby, and
each reference in any other Loan Document to the Credit Agreement or any word
or words of similar import shall be and mean a reference to the Credit
Agreement as amended hereby.

6.             Counterparts. 
This Amendment may be executed in any number of counterparts, each of
which when so executed shall be deemed an original but all such counterparts
shall constitute one and the same instrument. 
Delivery of an executed counterpart of a signature page to this Amendment
by telecopier or “pdf” shall be as effective as delivery of a manually executed
counterpart signature page to this Amendment.

7.             Costs and Expenses.  As provided in the Credit Agreement, Borrower
shall pay the fees, costs and expenses incurred by Agent in connection with the
preparation, execution and delivery of this Amendment (including, without
limitation, attorneys’ fees).

8.             GOVERNING LAW. 
THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
CONFLICTS OF LAW PRINCIPALS.

9.             Headings. 
Section headings in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any
other purpose.

[Signature Pages Follow]

 7

 

IN WITNESS WHEREOF, this Amendment has been duly
executed as of the date first written above.

	
  

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  VERTIS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ JOHN V. HOWARD, JR.

  
	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
  Title:

  	
  Secretary

  
				

 

 

	
  

  	
  GENERAL ELECTRIC CAPITAL CORPORATION

  
	
   

  	
  as Agent, an L/C Issuer and a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /S/ SANDRA CLAGHORN

  
	
   

  	
   

  	
  Duly Authorized
  Signatory

  

 

 

	
  

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ ROBERT ANCHUNDIA

  
	
   

  	
  Name:

  	
  Robert Anchundia

  
	
   

  	
  Title:

  	
  Vice President

  
				

 

 

The following Persons are signatory to this Amendment
in their capacity as Credit Parties and not as Borrowers:

	
  

  	
  VERTIS HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ JOHN V. HOWARD, JR.

  
	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VERTIS DIGITAL SERVICES LIMITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ JOHN V. HOWARD, JR.

  
	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ENTERON GROUP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ JOHN V. HOWARD, JR.

  
	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WEBCRAFT, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ JOHN V. HOWARD, JR.

  
	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
  Title:

  	
  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  VERTIS MAILING, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ JOHN V. HOWARD, JR.

  
	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
  Title:

  	
  Secretary

  
					

 

 

	
  

  	
  WEBCRAFT CHEMICALS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ JOHN V. HOWARD, JR.

  
	
   

  	
  Name:

  	
  John V. Howard, Jr.

  
	
   

  	
  Title:

  	
  Secretary

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