Document:

EXECUTION COPY

               SECOND AMENDMENT, dated as of September 30, 2005 (this
          "Amendment"), to the Amended and Restated Collateral Trust and
          Intercreditor Agreement, dated as of June 27, 2001, as amended and
          restated as of May 28, 2003 (as amended, supplemented or otherwise
          modified from time to time, the "Collateral Trust and Intercreditor
          Agreement"), among RITE AID CORPORATION, a Delaware corporation ("Rite
          Aid" or the "Borrower"), each Subsidiary of Rite Aid party thereto or
          which becomes a party thereto pursuant to Section 9.11 thereof (each
          such Subsidiary, individually, a "Subsidiary Guarantor", and
          collectively, the "Subsidiary Guarantors"), WILMINGTON TRUST COMPANY,
          a Delaware banking corporation, as collateral trustee (in such
          capacity, the "Second Priority Collateral Trustee") for the holders
          from time to time of the Second Priority Debt Obligations, CITICORP
          NORTH AMERICA, INC., a Delaware corporation ("CNAI"), as senior
          collateral processing co-agent, JPMORGAN CHASE BANK, N.A., a national
          banking association ("JPMCB"), as senior collateral processing
          co-agent (each, individually in such capacity, a "Senior Collateral
          Agent", and collectively, the "Senior Collateral Agents") for the
          Senior Secured Parties under the Senior Loan Documents, U.S. BANK AND
          TRUST, as trustee under the 12.5% Note Indenture, BNY MIDWEST TRUST
          COMPANY, as trustee under the 9.5% Note Indenture, as trustee under
          the 8.125% Note Indenture and as trustee under the 7.5% Note
          Indenture, and each other Second Priority Representative which becomes
          a party thereto pursuant to Section 8.12 thereof.

     A. Reference is made to the Senior Credit Agreement, dated as of June 27,
2001, as amended and restated as of September 30, 2005 (as amended, restated,
supplemented or otherwise modified from time to time, the "Senior Credit
Agreement"), among Rite Aid, the lenders party thereto (the "Senior Lenders"),
CNAI, as Administrative Agent and Collateral Processing Co-Agent, and JPMCB, as
Syndication Agent and Collateral Processing Co-Agent.

     B. The Borrower has requested that certain provisions of the Collateral
Trust and Intercreditor Agreement be modified as set forth in this Amendment,
and the Majority Senior Parties and the Second Priority Instructing Group are
willing to agree to such modifications as provided for in this Amendment.

     Accordingly, in consideration of the mutual agreements herein contained and
other good and valuable consideration, the sufficiency and receipt of which are
hereby acknowledged, and subject to the conditions set forth herein, the parties
hereby agree as follows:

     SECTION 1. Defined Terms. Capitalized terms used and not defined herein
shall have the meanings given to them in the Senior Credit Agreement or the
Collateral Trust and Intercreditor Agreement (including the Definitions Annex
annexed thereto) as amended hereby.

     SECTION 2. Amendment to the Collateral Trust and Intercreditor Agreement.
The Definitions Annex referred to in Section 1.02 of the Collateral Trust and
Intercreditor Agreement is hereby amended as follows:

          (a) the terms "11.25% Senior Notes" and "Unsecured Note Indenture" are
     hereby deleted in their entirety.

          (b) the term "Basket Asset Sale" is hereby amended by replacing the
     amount "$75,000,000" in the eighth line thereof with the amount
     "$125,000,000".

          (c) the term "Effective Date Indentures" is hereby amended and
     restated in its entirety to read as follows:

               ""Effective Date Indentures" mean, collectively, (a) the
          Indenture dated as of December 21, 1998, between Rite Aid and Harris
          Trust and Savings Bank, as trustee and (b) the Indenture dated as of
          August 1, 1993, between Rite Aid and Morgan Guaranty Trust Company of
          New York, as trustee.".

          (d) the term "Majority Senior Parties" is hereby amended and restated
     in its entirety to read as follows:

               ""Majority Senior Parties" means the Required Lenders (as defined
          in the Senior Credit Agreement), or with respect to any waiver,
          amendment or request, Senior Lenders having such amount of unused
          Revolving Commitments and Revolving Exposure as may be required under
          the Senior Credit Agreement to approve the same.".

          (e) the term "Reduction Event" is hereby amended and restated in its
     entirety to read as follows:

               ""Reduction Event" means each of the following:

                    (i) any Senior Collateral Disposition or any other Asset
               Sale, except in each case any Permitted Disposition or in
               connection with any Sale and Leaseback Transaction permitted
               under Section 6.01(a)(vii), (xii)

                                       2

               or (xiii) of the Senior Credit Agreement or any Securitization or
               Factoring Transaction permitted pursuant to the Senior Credit
               Agreement;

                    (ii) any Casualty/Condemnation; and

                    (iii) any Capital Markets Transaction; provided, however,
               that Capital Markets Transactions (or portions thereof)
               consummated on or after the Restatement Effective Date resulting
               in receipt of initial cumulative Net Cash Proceeds in the amount
               of up to $500,000,000 shall not be deemed to constitute Reduction
               Events (except to the extent cumulative Net Cash Proceeds in
               excess of such amount are generated by any such Capital Markets
               Transaction).".

          (f) the term "Second Priority Debt" is hereby amended and restated in
     its entirety to read as follows:

               ""Second Priority Debt" means any Indebtedness (including the
          12.5% Notes, 9.5% Notes, 8.125% Notes and 7.5% Notes) incurred by Rite
          Aid and Guaranteed by the Subsidiary Guarantors on or after the
          Effective Date pursuant to the Second Priority Subsidiary Guarantee
          Agreement (i) which is secured by the Second Priority Collateral on a
          pari passu basis (other than as provided by the terms of the
          applicable Second Priority Debt Documents) with the other Second
          Priority Debt Obligations and (ii) if issued on or after the
          Restatement Effective Date, matures after December 31, 2010; provided,
          however, that (A) such Indebtedness is permitted to be incurred,
          secured and Guaranteed on such basis by each Senior Loan Document and
          each Second Priority Debt Document and (B) the Representative for the
          holders of such Second Priority Debt shall have become party to the
          Collateral Trust and Intercreditor Agreement pursuant to, and by
          satisfying the conditions set forth in, Section 8.12 thereof. Second
          Priority Debt shall include any Registered Equivalent Notes issued in
          exchange thereof.".

          (g) the term "Senior Credit Agreement" is hereby amended and restated
     in its entirety to read as follows:

               ""Senior Credit Agreement" means the Amended and Restated Senior
          Credit Agreement, dated as of June 27, 2001, as amended and restated
          as of September 30, 2005 and as may be further amended, restated or
          otherwise modified from time to time, among Rite Aid, the Senior
          Lenders and Citicorp North America, Inc., as administrative agent and
          as Senior Collateral Agents for the Senior Lenders.".

                                       3

          (h) the terms "7.5% Notes" and "7.5% Note Indenture" are hereby
     inserted into the Definitions Annex after the term "Senior Subsidiary
     Security Agreement" and to read as follows:

               ""7.5% Notes" means the 7.5% Senior Secured Notes of the Borrower
          due 2015 issued pursuant to the 7.5% Note Indenture and any Registered
          Equivalent Notes issued in exchange therefor.

               "7.5% Note Indenture" means the Indenture dated as of January 11,
          2005 among Rite Aid, the Subsidiary Guarantors and BNY Midwest Trust
          Company, as trustee, relating to the 7.5% Notes.".

     SECTION 3. No Other Amendments; Confirmation. Except as expressly amended,
modified and supplemented hereby, the provisions of the Collateral Trust and
Intercreditor Agreement are and shall remain in full force and effect.

     SECTION 4. Representations and Warranties. To induce the other parties
hereto to enter into this Amendment, Rite Aid represents to each of the Majority
Senior Parties and the Second Priority Instructing Group:

          (i) after giving effect to this Amendment, the representations and
     warranties of the Borrower set forth in Article III of the Senior Credit
     Agreement are true and correct in all material respects on the date hereof
     with the same effect as if made on the Effective Date (as defined below),
     except for representations and warranties that expressly relate to an
     earlier date, which representations and warranties were true and correct in
     all material respects as of such earlier date;

          (ii) after giving effect to this Amendment, no Default or Event of
     Default has occurred and is continuing under the Senior Credit Agreement;
     and

          (iii) this Amendment has been duly executed and delivered by Rite Aid
     and constitutes a legal, valid and binding obligation of Rite Aid,
     enforceable in accordance with its terms.

     SECTION 5. Effectiveness. This Amendment shall become effective as of the
date (the "Effective Date") upon which the Senior Collateral Agents shall have
received counterparts of this Amendment that, when taken together, bear the
signatures of Rite Aid and the Majority Senior Parties and the Second Priority
Instructing Group under the Collateral Trust and Intercreditor Agreement.

     SECTION 6. Effect of the Amendment. Except as expressly set forth herein,
this Amendment shall not by implication or otherwise limit, impair, constitute a
waiver of,

                                       4

amend, or otherwise affect the rights and remedies of either the Majority Senior
Parties or the Senior Collateral Agents under the Collateral Trust and
Intercreditor Agreement and shall not alter, modify, amend or in any way affect
any of the terms, conditions, obligations, covenants or agreements contained in
the Collateral Trust and Intercreditor Agreement, all of which are ratified and
affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle Rite Aid to a consent to, or a waiver,
amendment, modification or other change of, any of the terms, conditions,
obligations, covenants or agreements contained in the Collateral Trust and
Intercreditor Agreement in similar or different circumstances. This Amendment
shall apply and be effective with respect to the matters expressly referred to
herein. After the Effective Date, any reference to the Collateral Trust and
Intercreditor Agreement shall mean such Collateral Trust and Intercreditor
Agreement, as modified hereby.

     SECTION 7. APPLICABLE LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 8. Costs and Expenses. Rite Aid agrees to reimburse the Senior
Collateral Agents for its reasonable out-of-pocket expenses in connection with
this Amendment, including the reasonable fees, charges and disbursements of
Cravath, Swaine & Moore LLP, counsel for the Senior Collateral Agents.

     SECTION 9. Headings. The headings of this Amendment are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                       5

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their respective authorized officers as of the day and year
first written above.

                                RITE AID CORPORATION

                                by:
                                      --------------------------------------

                                      Name:

                                      Title:

                                THE SUBSIDIARY GUARANTORS LISTED ON ANNEX 1
                                HERETO

                                by:
                                      --------------------------------------

                                      Name:

                                      Title:

                                THRIFTY PAYLESS, INC.

                                by:
                                      --------------------------------------

                                      Name:

                                      Title:

                                CITICORP NORTH AMERICA, INC., as Senior
                                Collateral Agent

                                by:
                                      --------------------------------------

                                      Name:

                                      Title:

                                JPMORGAN CHASE BANK, N.A., as Senior Collateral
                                Agent

                                by:
                                      --------------------------------------

                                      Name:

                                      Title:

                                       6

                                BNY MIDWEST TRUST COMPANY, as Trustee under the
                                9.5% Note Indenture,

                                by:
                                      --------------------------------------

                                      Name:

                                      Title:

                                BNY MIDWEST TRUST COMPANY, as Trustee under the
                                8.125% Note Indenture,

                                by:
                                      --------------------------------------

                                      Name:

                                      Title:

                                BNY MIDWEST TRUST COMPANY, as Trustee under the
                                7.5% Note Indenture,

                                by:
                                      --------------------------------------

                                      Name:

                                      Title:

                                       7

                         ANNEX 1 - SUBSIDIARY GUARANTORSexv10w20

 

Exhibit 10.20

TRANSITION SERVICES AGREEMENT

     THIS
TRANSITION SERVICES AGREEMENT (this “Agreement”), dated as
of August 16, 2005,
between Fortune Brands, Inc., a Delaware corporation (“Fortune”) and ACCO World Corporation, a
Delaware corporation (“ACCO”).

W I T N E S S E T H:

     WHEREAS, the Board of Directors of Fortune has determined that it is appropriate and desirable
to distribute all outstanding shares of common stock of ACCO Brands Corporation (“ACCO Brands”) on
a pro rata basis to the holders of Fortune’s common stock pursuant to a Distribution Agreement,
dated as of March 15, 2005 (the “Distribution Agreement”), by and between Fortune and ACCO; and

     WHEREAS, the parties hereto deem it to be appropriate and in the best interests of Fortune and
ACCO that Fortune and ACCO, respectively, provide or shall procure the provision of certain
services to Fortune and ACCO, respectively, on the terms and conditions set forth herein; and

     NOW, THEREFORE, in consideration of the premises and of the mutual agreements, provisions and
covenants contained in this Agreement, the parties hereto hereby agree as follows:

     1. Description of Fortune Services. Subject to and conditional upon the Distribution
(as defined in the Distribution Agreement) becoming effective, Fortune shall, subject to the terms
and provisions of this Agreement, provide to ACCO or a Subsidiary or Affiliate (as such terms are
defined in the Distribution Agreement) of ACCO, or procure the provision to ACCO those services
described on Exhibit A hereto (the “Fortune Services”). ACCO may, at its option, upon not
less than thirty (30) days prior written notice (or such other period provided in Exhibit A
for a particular service or as the parties may otherwise mutually agree in writing), direct Fortune
to no longer provide or procure the provision of all or any category of such services.

     2. Consideration for Fortune Services. ACCO shall pay Fortune in accordance with
Sections 7 and 8 of this Agreement and Fortune shall accept as consideration for the services to be
rendered to ACCO hereunder the charges set forth on Exhibit A.

     3. Provision of Fortune Services.

     (a) Fortune shall be responsible for ensuring that it complies with all applicable
statutes, regulations and laws relevant to the provision of the Fortune Services.

     (b) For the avoidance of doubt, it is acknowledged that, subject to its obligations to
Fortune under the provisions of this Agreement, ACCO shall be free at any time (and without
obligation to notify or inform Fortune) to arrange for any service identical to or similar
to the Fortune Services to be provided to it by any person whatsoever.

 

 

     (c) Fortune shall exercise reasonable care to ensure that the manner in which it
performs or provide the Fortune Services does not have any adverse effect on the name,
trading image, goodwill or business of ACCO.

     (d) ACCO shall provide Fortune with such advice, assistance and information in
connection with the performance of the Fortune Services as Fortune may from time to time
reasonably require. Fortune and ACCO shall also liaise as appropriate to ensure that the
Fortune Services are carried out in accordance with the provisions of Exhibit A
hereto and where reasonably practicable Fortune shall comply with any instructions that ACCO
shall reasonably issue from time to time concerning the methods of operation by which the
Fortune Services shall be provided to ACCO.

     (e) ACCO and Fortune shall each use reasonable best efforts to keep each other informed
of any special requirements applicable to the carrying out of the Fortune Services. To the
extent reasonably necessary and appropriate Fortune shall promptly take steps where
reasonably practicable to comply with such special requirements. In the event that these
steps shall result in any increase or reduction in the actual cost to Fortune of providing
the relevant Fortune Services then the fees payable pursuant to Section 2 above shall be
increased or reduced accordingly.

     4. Description of ACCO Services. Subject to and conditional upon the Distribution (as
defined in the Distribution Agreement) becoming effective, ACCO shall, subject to the terms and
provisions of this Agreement, provide to Fortune or a Subsidiary or Affiliate (as such terms are
defined in the Distribution Agreement) of Fortune, or procure the provision to Fortune those
services described on Exhibit B hereto (the “ACCO Services”). Fortune may, at its option,
upon not less than thirty (30) days prior written notice (or such other period provided in
Exhibit B for a particular service or as the parties may otherwise mutually agree in
writing), direct ACCO to no longer provide or procure the provision of all or any category of such
services.

     5. Consideration for ACCO Services. Fortune shall pay ACCO in accordance with
Sections 7 and 8 of this Agreement and ACCO shall accept as consideration for the services to be
rendered to Fortune hereunder the charges set forth on Exhibit B.

     6. Provision of ACCO Services.

     (a) ACCO shall be responsible for ensuring that it complies with all applicable
statutes, regulations and laws relevant to the provision of the ACCO Services.

     (b) For the avoidance of doubt, it is acknowledged that, subject to its obligations to
ACCO under the provisions of this Agreement, Fortune shall be free at any time (and without
obligation to notify or inform ACCO) to arrange for any service identical to or similar to
the ACCO Services to be provided to it by any person whatsoever.

2

 

     (c) ACCO shall exercise reasonable care to ensure that the manner in which it performs
or provide the ACCO Services does not have any adverse effect on the name, trading image,
goodwill or business of Fortune or any member of Fortune Group (as defined in the
Distribution Agreement).

     (d) Fortune shall provide ACCO with such advice, assistance and information in
connection with the performance of the ACCO Services as ACCO may from time to time
reasonably require. ACCO and Fortune shall also liaise as appropriate to ensure that the
ACCO Services are carried out in accordance with the provisions of Exhibit B hereto
and where reasonably practicable ACCO shall comply with any instructions that Fortune shall
reasonably issue from time to time concerning the methods of operation by which the ACCO
Services shall be provided to Fortune.

     (e) Fortune and ACCO shall each use reasonable best efforts to keep each other informed
of any special requirements applicable to the carrying out of the ACCO Services. To the
extent reasonably necessary and appropriate ACCO shall promptly take steps where reasonably
practicable to comply with such special requirements. In the event that these steps shall
result in any increase or reduction in the actual cost to ACCO of providing the relevant
ACCO Services then the fees payable pursuant to Section 5 above shall be increased or
reduced accordingly.

     7. Terms of Payment. Each party shall submit in writing an invoice covering its
charges to the other party for services rendered hereunder. Such invoice shall be submitted on a
monthly basis and shall contain a summary description of the charges and services rendered.
Payment shall be made not later than thirty (30) days after the invoice date. Except as otherwise
provided in this Agreement, the amount of any monthly service fee shall be pro-rated in the event
that the corresponding services were provided for only a portion of a given month.

     8. Method of Payment. All amounts payable by ACCO for the services described on
Exhibit A shall be remitted to Fortune in United States dollars to a bank to be designated
in the invoice or otherwise in writing by Fortune, unless otherwise provided for and agreed upon in
writing by the parties. All amounts payable by Fortune for the services described on Exhibit
B shall be remitted to ACCO in United States dollars to a bank to be designated in the invoice
or otherwise in writing by ACCO, unless otherwise provided for and agreed upon in writing by the
parties. Detailed billing information will be provided upon request.

     9. Taxes. All amounts expressed in this Agreement as being payable by Fortune or ACCO
are expressed exclusive of any value added tax or other similar Tax (as defined in the Distribution
Agreement) which may be properly chargeable thereon.

     10. WARRANTIES. THIS IS A SERVICE AGREEMENT. EXCEPT AS EXPRESSLY STATED IN THIS
AGREEMENT, THERE ARE NO EXPRESS WARRANTIES OR GUARANTIES AND THERE ARE NO IMPLIED WARRANTIES OR
GUARANTIES, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE AND
FITNESS FOR A PARTICULAR PURPOSE.

3

 

     11. Limitation on Liability.

     (a) In no event shall either party have any liability, whether based on contract, tort
(including, without limitation, negligence), warranty or any other legal or equitable
grounds, for any punitive, consequential, special, indirect or incidental loss or damage
suffered by the other party or any of their respective Subsidiaries or Affiliates (as such
terms are defined in the Distribution Agreement) arising from or related to this Agreement,
including without limitation, loss of data, profits (excluding profits under this
Agreement), interest or revenue, or use or interruption of business, even if such party is
advised of the possibility of such losses or damages.

     (b) The limitations set forth in Section 11(a) above shall not apply to liabilities
which may arise as the result of fraud, willful misconduct, bad faith, gross negligence or
willful default of Fortune, ACCO or anyone performing services on their behalf pursuant to
this Agreement, or the reckless disregard or breach by Fortune or ACCO of its obligations
and duties contained in or arising as a result of or in connection with this Agreement.

     12. Termination. This Agreement shall terminate on completion of all Fortune Services
and ACCO Services, but may be terminated earlier in accordance with the following:

     (a) upon the mutual written agreement of the parties;

     (b) by either ACCO or Fortune for material breach of any of the terms hereof by Fortune
or ACCO, as the case may be, if the breach is capable of being remedied and is not corrected
within thirty (30) calendar days after written notice of the breach has been delivered to
the defaulting party; provided that if the breach is not capable of being remedied, the
Agreement may be terminated immediately; provided, further, that such termination shall only
apply to those services in respect of which the defaulting party is in material breach and
shall be without prejudice to the provision or receipt of all other Fortune Services and
ACCO Services pursuant to this Agreement which shall remain in full force and effect
notwithstanding such termination;

     (c) by either ACCO or Fortune forthwith, upon written notice to Fortune or ACCO, as the
case may be, if Fortune or ACCO, as the case may be, shall become insolvent or shall make an
assignment for the benefit of creditors, or shall be placed in receivership, reorganization,
liquidation whether compulsory or voluntary (except for the purposes of a bona fide
reconstruction or amalgamation with the consent of the other party, such consent not to be
unreasonably withheld or delayed) or bankruptcy;

     (d) by Fortune forthwith, upon written notice to ACCO, if, for any reason, the
ownership or control of ACCO, General Binding Corporation or any of their respective
business operations which receive or provide services under this Agreement, becomes vested
in, or is made subject to the control or direction of, any direct competitor of Fortune’s
consumer products businesses, or any governmental or regulatory authority; provided,
however, that termination in the event of a change of ownership or control of a

4

 

business operation of ACCO or General Binding Corporation shall only apply to the
services received by or provided to such business operation and shall be without prejudice
to the provision or receipt of all other Fortune Services and ACCO Services pursuant to this
Agreement which shall remain in full force and effect notwithstanding termination of the
provision of Fortune Services or ACCO Services to such business operation; or

     (e) by ACCO forthwith, upon written notice to Fortune, if for any reason, the ownership
or control of Fortune or any of its business operations which receive or provide services
under this Agreement, becomes vested in, or is made subject to the control or direction of,
any direct competitor of ACCO, or any governmental or regulatory authority; provided,
however, that termination in the event of a change of ownership or control of a
business operation of Fortune shall only apply to the services received by or provided to
such business operation and shall be without prejudice to the provision or receipt of all
other Fortune Services and ACCO Services pursuant to this Agreement which shall remain in
full force and effect notwithstanding termination of the provision of Fortune Services or
ACCO Services to such business operation.

     13. Consequences of Termination. Upon termination of this Agreement in accordance
with Section 12:

     (a) each party shall be compensated for all services performed up to and including the
date of termination in accordance with the provisions of this Agreement;

     (b) any rights or obligations to which any of the parties to this Agreement may be
entitled or be subject to before such termination shall remain in full force and effect; and

     (c) termination shall not affect or prejudice any right to damages or other remedy
which the terminating party may have in respect of the event which gave rise to the
termination or any other right to damages or other remedy which any party may have in
respect of any breach of this Agreement which existed at or before the date of termination.

     14. Term. This Agreement shall be effective from and after the Distribution Date (as
defined in the Distribution Agreement) until terminated in accordance with Section l2 hereof.

     15. Amendment. This Agreement may be modified or amended only by the agreement of the
parties hereto in writing, duly executed by the authorized representatives each party.

     16. Force Majeure.

     (a) Any delays in or failure of performance by any party hereto, other than the payment
of money, shall not constitute a default hereunder if and to the extent such delays or
failures of performance are caused by occurrences not reasonably foreseeable at

5

 

the date of this Agreement which are beyond the reasonable control of such party
(“Force Majeure”), including, but not limited to: acts of God; expropriation or
confiscation of facilities; compliance with any order or request of any governmental
authority; acts of war; riots or strikes or other concerted acts of personnel; or any
causes, whether or not of the same clad or kind as those specifically named above, which are
not within the reasonable control of such party, and which by the exercise of reasonable
diligence, such party is unable to prevent.

     (b) If and to the extent that either party is prevented or delayed by Force Majeure
from performing any of its obligations under this Agreement and promptly so notifies the
other party, specifying the matters constituting Force Majeure together with such evidence
in verification thereof as it can reasonably give and specifying the period for which it is
estimated that the prevention or delay will continue, then the party so affected shall be
relieved of liability to the other party for failure to perform or for delay in performing
such obligations (as the case may be) and shall not be in breach of the terms and conditions
of this Agreement as a result of such failure or delay, but shall nevertheless use its
reasonable best efforts to resume full performance thereof as soon as possible; provided,
however, that:

          (i) if the Force Majeure continues for a period of two (2) months or more
following notification, the party not affected by the Force Majeure may terminate
the provision or receipt of the services affected by the Force Majeure by giving not
less than thirty (30) days prior notice to the other party, without prejudice to the
provision or receipt of all other Fortune Services and ACCO Services pursuant to
this Agreement which shall remain in full force and effect notwithstanding such
termination; and

          (ii) if the Force Majeure continues for a period of two (2) months or more
following notification and is such that the party affected by the Force Majeure is
prevented or delayed from performing all or a substantial part of its obligations
under this Agreement, the party not affected by the Force Majeure may terminate this
Agreement by giving not less than thirty (30) days prior notice to the other party;

provided, further, that a notice of termination given under Section 16(b) (i) or (ii) shall be of
no effect if the party affected by the Force Majeure resumes full performance of its obligations
before the expiration of such notice period.

     17. Assignment. This Agreement and all of the provisions hereof shall not be
assignable by either party hereto without the prior written consent of the other party hereto
(which consent shall not be unreasonably withheld or delayed). This Agreement and all of the
provisions hereof shall be binding upon and inure to the benefit of the parties and their
respective successors and permitted assigns.

     18. Notices. All notices, requests, claims, demands and other communications required
or permitted to be given hereunder shall be in writing and shall be delivered by hand or

6

 

sent by prepaid cable or telecopy or sent, postage prepaid, by registered, certified or
express mail or reputable overnight courier service and shall be deemed given when so delivered by
hand, cabled or telecopied, or if mailed, ten days after mailing (two business days in the case of
express mail or overnight courier service), as follows:

	 	 	 
	 

	 	If to Fortune:

	 	 	 
	 

	 	Fortune Brands, Inc.
	 

	 	300 Tower Parkway
	 

	 	Lincolnshire, Illinois 60069
	 

	 	Fax: (847) 484-4490
	 

	 	Attention: Mark A. Roche, Esq.

	 	 	 
	 

	 	with a copy to

	 	 	 
	 

	 	Chadbourne & Parke LLP
	 

	 	30 Rockefeller Plaza
	 

	 	New York, New York 10112
	 

	 	Fax: (212) 541-5369
	 

	 	Attention: Edward P. Smith, Esq.

			
	 

	 	and A. Robert Colby, Esq.

	 	 	 
	 

	 	and

	 	 	 
	 

	 	Ungaretti & Harris LLP
	 

	 	3500 Three First National Plaza
	 

	 	Chicago, Illinois 60602
	 

	 	Fax: (312) 977-4405
	 

	 	Attention: William J. Lewis

	 	 	 
	 

	 	If to ACCO:

	 	 	 
	 

	 	ACCO Brands Corporation
	 

	 	300 Tower Parkway
	 

	 	Lincolnshire, Illinois 60069
	 

	 	Fax: (847) 484-4495
	 

	 	Attention: President

	 	 	 
	 

	 	With a copy to

	 	 	 
	 

	 	GBC Corporation
	 

	 	One GBC Plaza
	 

	 	Northbrook, Illinois 60062
	 

	 	Fax: (847) 272-4763
	 

	 	Attention: Steven Rubin, Esq.

7

 

     19. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware applicable to contracts made and to be performed
entirely within such state, without regard to the principles of conflicts of laws thereof.

     20. Relationship of the Parties. Nothing in this Agreement shall constitute a
partnership between the parties. Each party hereto is an independent contractor and not an agent
or employee of the other party. Neither party shall have the authority or right to make any
statements, representations, warranties or commitments of any kind, incur any liability or assume
any obligation of any kind or to take any action which shall be binding on the other party, except
as may be explicitly provided for in this Agreement or authorized in writing by the other party.

     21. Liability for Acts and Omissions of Others. Any act or omission of any
subsidiary, employee, director, officer, contractor, representative or agent of Fortune or ACCO
involved in the performance of this Agreement shall be considered in relation to this Agreement as
an act or omission of Fortune or ACCO (as appropriate).

     22. Subcontracting.

     (a) Either party may subcontract or delegate the performance of all or any of its
duties and obligations under this Agreement to any person without the prior consent of the
other party, provided that the subcontracting party shall use reasonable skill and care in
selecting such subcontractors or delegates and shall so far as is possible ensure that they
are experienced and competent in relation to their respective duties and obligations.

     (b) Any party who subcontracts or delegates any of its duties and obligations in
accordance with this Section 22 shall be responsible for every act or omission of the
subcontractor or delegate as if it were an act or omission of the party itself.

     23. Cooperation after the Distribution. If, following the Distribution Date (as
defined in the Distribution Agreement), it shall come to the notice of Fortune or ACCO that any
service or facility provided by the other or any of its Subsidiaries or Affiliates (as such terms
are defined in the Distribution Agreement) prior to the Distribution Date to or for it or any of
its Subsidiaries or Affiliates and not covered hereby is not being performed or made available
after the Distribution Date and such party considers that the relevant service or facility is
necessary or desirable for the effective operation of its business, it may notify the other party
giving full details of the relevant service or facility and the parties shall cooperate and
negotiate in good faith to the extent reasonably practicable with a view to such service or
facility being provided on reasonable commercial terms.

     24. Construction. In this Agreement:

     (a) References to an “Exhibit” are, unless otherwise specified, references to one of
the Exhibits attached to this Agreement, and references to a “Section” are, unless otherwise
specified, references to one of the Sections of this Agreement and references to a
“sub-section” are, unless the context otherwise requires, references to the section in which
the reference appears;

8

 

     (b) each of the Exhibits shall have effect as if set out in this Agreement and
references to this Agreement shall include each of the Exhibits; and

     (c) in the event of and to the extent that there shall be any conflict between the
provisions of this Agreement and the provisions of the Exhibits, the provisions of the
Exhibits shall take precedence notwithstanding any other provision of this Agreement to the
contrary.

     25. Titles and Headings. Titles and headings to sections herein are inserted for
convenience of reference only and are not intended to be part of or to affect the meaning or
interpretation of this Agreement.

     26. Severability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof. Any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     27. No Waivers. No failure or delay by any party hereto to take any action or assert
any right hereunder shall be deemed to be a waiver of such right in the event of the continuation
or repetition of the circumstances giving rise to such right, unless expressly waived in writing by
the party against whom the existence of such waiver is asserted.

     28. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     29. Rights. The rights, powers, privileges and: remedies provided in this Agreement
are cumulative and are not exclusive of any rights, powers, privileges or remedies, provided by law
or otherwise. No single or partial exercise of any right, power, privilege or remedy under this
Agreement shall prevent any further or other exercise thereof or the exercise of any other right,
power, privilege or remedy.

[signature page attached]

9

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day
and year first above written.

	 	 	 	 	 
	 	FORTUNE BRANDS, INC.
 	 
	 	By:  	/s/ Mark
A. Roche	 
	 	 	Name: Mark A. Roche	 
	 	 	Title: Senior Vice President, General
Counsel and Secretary	 
	 
	 	ACCO WORLD CORPORATION

 	 
	 	By:  	/s/ Neal
Fenwick	 
	 	 	Name: Neal Fenwick	 
	 	 	Title: Executive Vice President, Finance
and Administration	 

10

 

	 	 	 	 	 

EXHIBIT A

SERVICES TO BE PROVIDED BY FORTUNE

OFFICE SPACE AND SUPPORT SERVICES IN HONG KONG, GUANGZHOU AND NINGBO

	I.	 	Fortune, through Fortune Brands International Corporation (“FBIC”) will provide office space
in FBIC’s offices located in Hong Kong, Guangzhou and Ningbo until April 30th,
2007.

	 	(a)	 	The space allocated to ACCO in the Hong Kong office shall consist of 1,510
square feet, at an annual rent of 48,400 USD.
	 
	 	(b)	 	The space allocated to ACCO in the Guangzhou office shall consist of 840 square
feet, at an annual rent of 10,450 USD.
	 
	 	(c)	 	The space allocated to ACCO in the Ningbo office shall consist of 133 square
feet, at an annual rent of 1,200 USD. .

	II.	 	Fortune, through FBIC will provide the services listed below for two (2) years for up to
fifteen (15) ACCO personnel housed in FBIC offices:

	 	A.	 	Finance and accounting services as follows.
	 
	 	(i)	 	Payment of all operating expenses on behalf of ACCO.
	 
	 	(ii)	 	Allocation of expenses by account code in accordance with ACCO’s chart of
accounts.
	 
	 	(iii)	 	Preparation of monthly debit notes with supporting documents.
	 
	 	(iv)	 	Process payment of corporate credit cards.
	 
	 	(v)	 	Obtain proper approvals and matching of supporting documents before payments
are made.
	 
	 	(vi)	 	Monitor compliance to local tax ordinance for annual audit and government
inspection.
	 
	 	(vii)	 	Bank accounts maintenance.
	 
	 	(viii)	 	Preparation of monthly financial package.

 

 

	 	(ix)	 	Preparation of annual budget and forecast.
	 
	 	(x)	 	Provide annual financial statutory audit

	B.	 	Information technology services as follows.

	 	(i)	 	Provide hardware/software information technology services in Hong Kong,
Guangzhou and Ningbo offices.
	 
	 	(ii)	 	Provide SUN systems software support (or mutually agreeable equivalent) and custom-made
reports.
	 
	 	(iii)	 	Provide ad-hoc trouble shooting of software, laptops, printers and other
accessories.
	 
	 	(iv)	 	Provide website maintenance for Kensington China website.
	 
	 	(v)	 	Provide reliable email service and Internet roaming access.
	 
	 	(vi)	 	Provide advice to ACCO in assessing hardware/software purchases.
	 
	 	(vii)	 	Provide on-going server maintenance support to business application software.
	 
	 	(viii)	 	Provide Blackberry wireless email solution (or mutually agreeable equivalent) for Hong
Kong and Malaysia users.
	 
	 	(ix)	 	Provide technical support to Kensington Malaysia staff in accessing Kensington
Oracle application
	 
	 	(x)	 	Create VPN tunnels to link up HK and ACCO USA networks to access corporate
intranets.

	C.	 	Human resources services as follows.

	 	(i)	 	Payroll and pension fund management.
	 
	 	(ii)	 	Arrangement of annual medical coverage and life
insurance.
	 
	 	(iii)	 	Tracking and update of employees personnel records.
	 
	 	(iv)	 	Negotiation of employees’ benefits with FESCO for China staffs.
	 
	 	(v)	 	Liaise with local tax bureau regarding employee income tax filing.
	 
	 	(vi)	 	Assist in recruitment process by placing advertisement or engagement of outside

 

 

	 	 	 	agencies.
	 
	 	(vii)	 	Arrange candidate interviews, screening of CVs and reference checking.
	 
	 	(viii)	 	Arrange medical check-ups for new hires and transfer of individual files through
FESCO in China.
	 
	 	(ix)	 	Provide up-to-date employee handbook.
	 
	 	(x)	 	Preparation of employment contracts and termination of employment contracts.

	D.	 	Administration services as follows.

	 	(i)	 	Receptionist service, courier arrangement and sorting of incoming mail.
	 
	 	(ii)	 	Car and driver service for traveling within Guangdong province, China.
	 
	 	(iii)	 	Secretarial service, travel arrangements and travel visa application.
	 
	 	(iv)	 	Annual renewal of representative office license.
	 
	 	(v)	 	Pantry service — stocking up of food and drinks.
	 
	 	(vi)	 	Office cleaning and stationery purchase.
	 
	 	(vii)	 	Banking deposits and bill payments, parcel pickups and post office mailing.
	 
	 	(viii)	 	Arrange office security, telephone service and mobile phones purchase & maintenance.
	 
	 	(ix)	 	Arrange office insurance; report if and follow up on insurance claims.
	 
	 	(x)	 	Arrange corporate credit cards.
	 
	 	(xi)	 	Arrange office renovation and furniture purchase.

	E.	 	Logistics services as follows (only available in Hong Kong).

	 	(i)	 	Issuance of sales invoice and credit notes to customers.
	 
	 	(ii)	 	Issuance of purchase orders and matching of purchase orders to suppliers.
	 
	 	(iii)	 	Create and maintain inventory record by use of stock numbers to track their
activities.
	 
	 	(iv)	 	Prepare monthly sales reports and inventory listings.

 

 

	 	(v)	 	Process full set of documents including purchase and sales orders, shipment
arrangement.
	 
	 	(vi)	 	Customs clearance, inventory reports, certificate of origin and L/C documents
to bank.

Payment for the services in subsections (A) through (E) above will be calculated in the same manner
as they had been calculated during the period of time immediately prior to the Distribution.

LEGAL SERVICES

Fortune will provide the new legal staff of ACCO with the following services at no charge:

	I.	 	Within thirty (30) days of the closing:

	 	(a)	 	Provide a summary of all open matters, including the name of the responsible
Fortune attorney, outside counsel (if any), upcoming deadlines and the overall status
of the matter.
	 
	 	(b)	 	Provide a complete listing of all files stored at Fortune as well as a listing
of files in archive storage.
	 
	 	(c)	 	Provide a complete listing of all current outside counsel used in ACCO matters
as well as historical fee information.

	II.	 	For a period of six (6) months after closing.

	 	(a)	 	Fortune attorneys will be available to work, under the supervision of the new
legal staff of ACCO, on any matter that existed as of the date of the closing.
	 
	 	(b)	 	Fortune will, subject to the approval of the new legal staff of ACCO, continue
to perform all work on current matters; provided, however, that Fortune will transition
all matters that are anticipated to last for longer than six (6) months to the new
legal staff of ACCO.

A member of the new legal staff of ACCO must participate in any meetings or conference calls.

MEETING PLANNING SERVICES

	I.	 	Fortune will allow ACCO to continue using Fortune’s dedicated meeting planners, WorldTravel
Partners I, LLC (“WorldTravel”).
	 
	 	 	ACCO will be responsible for paying for its percentage of total time incurred with
WorldTravel meeting planners, as well as one-seventh (1/7) of WorldTravel’s meeting
planners’ administrative time (formerly paid by Fortune).

 

 

EXHIBIT B

SERVICES TO BE PROVIDED BY ACCO

STORAGE SPACE IN WHEELING, ILLINOIS

ACCO will provide Fortune space for storage of archived documents at
the ACCO location in Wheeling, Illinois for a period not to exceed one
(1) year.

	 	A.	 	Fortune will be entitled to use the existing storage space used by Fortune at
ACCO’s facility located at 770 South Wolf Road, Wheeling, Illinois 60090-6070. The
storage space consists of approximately 1080 sq. ft. of space (36’x30’).
	 
	 	B.	 	ACCO will cause Fortune to be named as an additional insured with respect to
the Wheeling, Illinois facility.
	 
	 	C.	 	Fortune will pay ACCO $7,041.60 per year, payable monthly, in advance for the
use of the storage space described herein.

UK EMPLOYEES

ACCO will continue to provide payroll services for up to six (6) months for non-ACCO employees of
Fortune or its subsidiaries in the UK. Fortune will reimburse ACCO for its costs in providing
these services and will provide cash funds to ACCO in advance of any payments by ACCO. Fortune may
elect to discontinue these services upon thirty (30) days prior written notice to ACCO.

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