Document:

<PAGE>
                          TRADEMARK SECURITY AGREEMENT

         This TRADEMARK SECURITY AGREEMENT is made this ___ day of March, 2002,
between FLEET NATIONAL BANK, a national banking association organized under the
laws of the United States, having an office at 1185 Avenue of the Americas, New
York, NY 10017, as collateral agent for itself and Lenders (as hereinafter
defined) (together with its successors in such capacity, "Agent'), and
ECOUPONS.COM, INC., a Delaware corporation having its principal place of
business at 461 Fifth Avenue, 19th Floor, New York, NY 10017 (the "Company").

                                    RECITALS:

         The Company and one or more of its affiliates ("Borrowers") desire to
obtain loans and other financial accommodations from certain financial
institutions ("Lenders") as are parties from time to time to that certain Credit
Agreement dated the date hereof by and among Borrowers, Agent and Lenders
(hereinafter referred to, together with all amendments thereto, as the "Credit
Agreement");

         Lenders are willing to make loans and other financial accommodations to
Borrowers from time to time, pursuant to the terms of the Credit Agreement,
provided the Company executes this Agreement.

         NOW, THEREFORE, for Ten Dollars ($10.00) and other valuable
consideration, and in consideration of the premises, the Company hereby agrees
with Agent as follows:

         1.       Capitalized terms used herein (including those used in the
Recitals hereto), unless otherwise defined, shall have the meanings ascribed to
them in the Credit Agreement.

         2.       To secure the prompt payment and performance of the
Obligations, the Company hereby pledges, assigns and grants to Agent, for its
benefit and the pro rata benefit of Lenders, a continuing security interest in
and lien upon all of the following property of the Company, whether now owned or
existing or hereafter created or acquired (the "Trademark Collateral"):

                  (a)      all trademarks, trademark registrations, tradenames
         and trademark applications, including, without limitation, the
         trademarks and applications listed on Exhibit A attached hereto and
         made a party hereof (as the same may be amended from time to time, and
         (i) all renewals thereof, (ii) all income, royalties, damages and
         payments now or hereafter due or payable with respect thereto,
         including, without limitation, damages and payments for past or future
         infringements thereof, (iii) the right to sue for past, present and
         future infringements thereof, and (iv) all rights corresponding thereto
         throughout the world (all of the foregoing trademarks, trademark
         registrations, tradenames and applications, together with the items
         described in clauses (i)-(iv), are hereinafter collectively referred to
         as the "Trademarks");

                  (b)      the goodwill of the Company's business connected with
         and symbolized by the Trademarks; and
<PAGE>
                  (c)      all proceeds of the foregoing.

         3.       The Company represents and warrants to Agent and Lenders that:

                  (a)      Each of the Trademarks is subsisting and has not been
         adjudged invalid or unenforceable;

                  (b)      Upon filing of this Agreement in the United States
         Patent and Trademark Office, and the filing of UCC-1 financing
         statements against the Company in its state of incorporation listing
         "general intangibles" among the collateral covered by such financing
         statement, this Agreement will create a legal and valid perfected lien
         upon and security interest in the Trademark Collateral (other than
         foreign trademarks), enforceable against Company and all third Persons
         in accordance with its terms;

                  (c)      To the best of the Company's knowledge, no claim has
         been made that the use of any of the Trademarks does or may violate the
         rights of any third Person;

                  (d)      The Company has the unqualified right to enter into
         this Agreement and perform its terms;

                  (e)      To the best of the Company's knowledge, each of the
         Trademarks is valid and enforceable; and

                  (f)      The Company is the sole and exclusive owner of the
         entire right, title and interest in and to all of the Collateral, free
         and clear of any liens, charges and encumbrances (other than Permitted
         Liens), including, without limitation, pledges, assignments, licenses,
         registered user agreements and covenants by the Company not to sue
         third Persons (other than licenses permitted under Section 8.07(b) of
         the Credit Agreement).

         4.       The Company covenants and agrees with Agent and Lenders that:

                  (a)      The Company will maintain the quality of the products
         and/or services associated with the Trademarks, at a level consistent
         with the quality at the time of this Agreement, and will, upon Agent's
         request, provide Agent quarterly with a certificate to that effect in
         the form attached hereto as Exhibit B executed by an officer of the
         Company;

                  (b)      The Company will not change the quality of the
         products and/or services associated with the Trademarks without Agent's
         prior written consent; and

                  (c)      The Company has used and will continue to use for the
         duration of this Agreement, proper statutory notice in connection with
         its use of the Trademarks, including, without limitation, filing an
         affidavit of use with the United States Patent and Trademark Office for
         each Trademark as required by applicable law to maintain the
         registration thereof without loss of protection therefore.

                                       2
<PAGE>
         5.       Subject to the provisions of Section 7.07 of the Credit
Agreement, the Company hereby authorizes Agent, and its employees and agents
(and any Lender or Lenders and their respective employees and agents), the right
to visit the Company's plants and facilities which manufacture, inspect or store
products sold under any of the Trademarks and to inspect the products and
quality control records relating thereto. The Company shall do any and all acts
required by Agent to ensure the Company's compliance with paragraph 4(c) of this
Agreement.

         6.       Until all of the Obligations have been satisfied in full and
the Credit Agreement has been terminated, the Company shall not enter into any
license agreement relating to any of the Trademarks with any Person except as
permitted under Section 8.07(b) of the Credit Agreement, and shall not become a
party to any agreement with any Person that is inconsistent with the Company's
duties under this Agreement.

         7.       If, before the Obligations have been satisfied in full, the
Company shall obtain rights to any new trademarks, or become entitled to the
benefit of any trademark application or trademark or any renewal of any
Trademark, the provisions of paragraph 2 hereof shall automatically apply
thereto, and the Company shall give to Agent prompt notice thereof in writing.

         8.       The Company irrevocably authorizes and empowers Agent to
modify this Agreement by amending Exhibit A to include any future trademarks and
trademark applications within the definition of Trademarks under paragraph 2 or
paragraph 7 hereof.

         9.       At any time after an Event of Default has occurred and is
continuing, Agent shall have, in addition to all other rights and remedies given
it by this Agreement, all rights and remedies under Applicable law and all
rights and remedies of a secured party under the UCC. Without limiting the
generality of the foregoing, Agent may immediately, for its benefit and the pro
rata benefit of Lenders, without demand of performance and without notice
(except as described in the next sentence, if required by Applicable law), or
demand whatsoever to the Company, each of which the Company hereby expressly
waives, collect directly any payments due the Company in respect of the
Trademark Collateral, or sell at public or private sale or otherwise realize
upon all or from time to time, any of the Trademark Collateral. The Company
hereby agrees that ten (10) days written notice to the Company of any public or
private sale or other disposition of any of the Trademark Collateral shall be
reasonable notice; provided, however, that no notice shall be required hereunder
if not otherwise required by Applicable law. At any such sale or disposition,
Agent may, to the extent permitted by law, purchase the whole or any part of the
Trademark Collateral sold, free from any right of redemption on the party of the
Company, which right the Company hereby waives and releases. After deducting
from the proceeds of such sale or other disposition of the Trademark Collateral
all costs and expenses incurred by Agent in enforcing its rights hereunder
(including, without limitation, all attorneys' fees), Agent shall apply the
remainder of such proceeds to the payment of the Obligations in such order and
manner as may be authorized or required by the Credit Agreement. Any remainder
of the proceeds after payment in full of the Obligations shall be paid over to
the Company. If any deficiency shall arise, the Company and each guarantor of
the Obligations shall remain jointly and severally liable to Agent and Lenders
therefore.

                                       3
<PAGE>
         10.      The Company hereby makes, constitutes and appoints Agent and
any officer or agent of Agent as Agent may select, as the Company's true and
lawful attorney-in-fact, with full power to do any or all of the following if an
Event of Default shall occur and be continuing: to endorse the Company's name on
all applications, documents, papers and instruments necessary for Agent to
continue the registration of or to use the Trademarks, or to grant or issue any
exclusive or nonexclusive license under the Trademarks to any other Person, or
to assign, pledge, convey or otherwise transfer title in or dispose of any
Trademark Collateral to any other Person. The Company hereby ratifies all that
such attorney shall lawfully do or cause to be done by virtue hereof. This power
of attorney, being coupled with an interest, shall be irrevocable until all of
the Obligations shall have been satisfied in full and the Credit Agreement shall
have been terminated.

         11.      At such time as all of the Obligations shall have been
satisfied finally and in full and the Credit Agreement shall have been shall
have been terminated, Agent shall execute and deliver to the Company, without
representation, warranty or recourse and at the Company's expense, all releases
or other instruments necessary to terminate Agent's security interest in the
Trademark Collateral subject to any disposition thereof which may have been made
by Agent pursuant to the terms of this Agreement or any of the Facility
Documents.

         12.      The Company shall be responsible for and pay any and all fees,
costs and expenses, of whatever kind or nature (including, without limitation,
reasonable attorneys' fees and legal expenses) incurred by (a) the Agent in
connection with the preparation of this Agreement and any other documents
relating hereto and the consummation of this transaction and (b) the Agent and
the Lenders in connection with (i) the filing or recording of any documents
(including, without limitation, all taxes in connection therewith) with the
United States Patent and Trademark Office or in any other public offices, the
payment or discharge of any taxes, counsel fees, maintenance fees, Liens or
otherwise protecting, maintaining, or preserving the Trademark Collateral and
(ii) the enforcement of the Agent's or any Lenders' rights and remedies
hereunder, including defending or prosecuting any actions or proceedings arising
out of or related to the Trademark Collateral (it being the intent of the
Company and the Agent that the Company shall be responsible for the payment of
all such sums, fees, costs and expenses, including, without limitation, all
renewal fees with respect to the Trademarks) or, if paid by Agent (or any Lender
as provided above) in the Agent's (or such Lender's) sole discretion, shall be
reimbursed by the Company on demand by Agent (or such Lender) and until so paid
shall be added to the principal amount of the Obligations and shall bear
interest at the highest per annum rate in effect from time to time under the
Credit Agreement.

         13.      The Company shall use all reasonable efforts to detect any
infringers of the Trademarks and shall notify Agent in writing of infringements
detected. The Company shall have the duty, through counsel acceptable to Agent,
to prosecute diligently any trademark application for a Trademark pending as of
the date of this Agreement or thereafter until the Obligations shall have been
paid in full and the Credit Agreement terminated, to make federal application on
registrable but unregistered Trademarks (subject to Company's reasonable
discretion in the ordinary course of the Business or, after the occurrence of a
Default or an Event of Default and during the continuance thereof, promptly upon
Agent's request), to file and prosecute opposition and cancellation proceedings,
to file and prosecute lawsuits to enforce the Trademarks and to do any and all
acts which are deemed necessary or desirable by Agent to

                                       4
<PAGE>
preserve and maintain all rights in the Trademarks. Any expenses incurred in
connection with such applications or proceedings shall be borne by the Company.
The Company shall not abandon any right to file a trademark application, or any
trademark application or trademark without the consent of Agent.

         14.      Notwithstanding anything to the contrary contained in
paragraph 13 hereof, Agent shall have the right, but shall in no way be
obligated, to bring suit instead in its own name to enforce to protect the
Trademarks or any license hereunder, in either of which events the Company shall
at the request of Agent do any and all lawful acts (including bringing suit) and
execute any and all proper documents required by Agent to aid such enforcement,
or defense, and the Company shall promptly, upon demand, reimburse and indemnify
Agent for all costs and expenses incurred in the exercise of Agent's rights
under this paragraph 14.

         15.      If the Company fails to comply with any of its obligations
hereunder, to the extent permitted by applicable law, Agent may do so in the
Company's name and in Agent's name, in Agent's sole discretion, but at the
Company's expense, and the Company agrees to reimburse Agent in full for all
expenses, including, without limitation, reasonable attorneys' fees, incurred by
Agent in prosecuting, defending or maintaining the Trademarks or Agent's
interest therein pursuant to this Agreement.

         16.      No course of dealing between the Company and Agent or any
Lender, nor any failure to exercise, nor any delay in exercising, on the part of
Agent or any Lender, any right, power or privilege hereunder or under any of the
other Facility Documents shall operate as a waiver thereof; nor shall any single
or partial exercise of any right, power or privilege hereunder or thereunder
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.

         17.      All of Agent's rights and remedies with respect to the
Trademark Collateral, whether established hereby or by any of the other Facility
Documents, or by any other agreements or by applicable law shall be cumulative
and may be exercised singularly or concurrently.

         18.      The provisions of this Agreement are severable, and if any
clause or provision shall be held invalid and unenforceable in whole or in part
in any jurisdiction, then such invalidity or unenforceability shall affect only
such clause or provision, or part thereof, in such jurisdiction, and shall not
in any manner affect such clause or provision in any other jurisdiction, or any
other clause or provision of this Agreement in any jurisdiction.

         19.      This Agreement, together with the other Facility Documents,
constitutes and expresses the entire understanding of the parties hereto with
respect to the subject matter hereof, and supercedes all prior agreements and
understandings, inducements or conditions, whether expressed or implied, oral or
written. This Agreement is subject to modification only by a writing signed by
the parties, except as provided in paragraph 8 hereof.

         20.      The benefits and burdens of this Agreement shall inure to the
benefit of and be binding upon the successors and assigns of the Agent and of
each Lender and upon the

                                       5
<PAGE>
successors of the Company. The Company shall not assign its rights or delegate
its duties hereunder without the prior written consent of Agent.

         21.      The Company hereby waives notice of Agent's acceptance hereof.

         22.      All notices, requests and demands to or upon the Company or
Agent shall be given in accordance with Section 12.06 of the Credit Agreement to
the address set forth therein, or, if not set forth therein, to the address set
forth next to the signature block of such party.

         23.      EACH OF THE COMPANY AND THE AGENT HEREBY IRREVOCABLY SUBMITS
TO THE JURISDICTION OF ANY NEW YORK STATE OR UNITED STATES FEDERAL COURT SITTING
IN NEW YORK COUNTY OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR ANY OTHER FACILITY DOCUMENT, AND EACH OF THE COMPANY AND THE
AGENT HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE OR FEDERAL COURT.
EACH OF THE COMPANY AND THE AGENT AGREES THAT A FINAL JUDGMENT IN ANY SUCH
ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.
EACH OF THE COMPANY AND THE AGENT FURTHER WAIVES ANY OBJECTION TO VENUE IN SUCH
STATE AND ANY OBJECTION TO AN ACTION OR PROCEEDING IN THE STATE ON THE BASIS OF
FORUM NON-CONVENIENS. THE COMPANY FURTHER AGREES THAT ANY ACTION OR PROCEEDING
BROUGHT AGAINST THE AGENT OR ANY LENDER SHALL BE BROUGHT ONLY IN A NEW YORK
STATE OR UNITED STATES FEDERAL COURT SITTING IN NEW YORK COUNTY.

         EACH OF THE COMPANY AND THE AGENT WAIVES ANY RIGHT IT MAY HAVE TO TRIAL
BY JURY.

         Nothing in this Section 23 shall affect the right of the Agent or any
Lender to serve legal process in any other manner permitted by law or affect the
right of the Agent or any Lender to bring any action or proceeding against the
Company in the courts of any other jurisdictions.

         To the extent that the Company has or hereafter may acquire any
immunity from jurisdiction of any court or from any legal process (whether from
service or notice, attachment prior to judgment, attachment in aid of execution,
execution or otherwise) with respect to itself or any of its assets, including
the Trademark Collateral, the Company hereby irrevocably waives such immunity in
respect of its obligations under this Agreement and the other Facility
Documents.

         24.      THIS AGREEMENT SHALL BE GOVERNED BY, AND INTERPRETED AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO THE CONFLICTS OF LAW PRINCIPLES THEREOF.

                                       6
<PAGE>
                  25.      This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any party hereto may execute this Agreement by signing any such
counterpart.

                  26.      Notwithstanding anything to the contrary contained in
this Agreement, the Company may abandon and shall not be required to make
filings or take any other actions to maintain or preserve or enforce or protect,
and shall not be liable for any costs of suits brought by Agent with respect to,
any Trademark which in the reasonable business judgment of the Company is no
longer useful or of any material value to the conduct of the Business.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       7
<PAGE>
         WITNESS, the execution hereof under seal as of the day and year first
above written.

                                         eCOUPONS.COM, INC.

                                         By: ______________________________
                                         Name: ____________________________
                                         Title: ___________________________
ATTEST:

____________________________
                 , Secretary

[Corporate Seal]
                                         ACCEPTED:

                                         FLEET NATIONAL BANK, as Agent ("Agent")

                                         By:_______________________________
                                         Name: ____________________________
                                         Title: ___________________________

                                       8
<PAGE>
STATE OF NEW YORK  )
                   )
COUNTY OF NEW YORK )

         BEFORE ME, the undersigned authority, on this day personally appeared
________________________________ of ECOUPONS.COM, INC., to me known to be the
person whose name is subscribed to the foregoing instrument, and acknowledged to
me that he executed the same for the purposes and consideration therein
expressed, in the capacity therein stated, and as the act and deed of said
corporation.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE on this __ day of March, 2002.

                                                ____________________________
                                                Notary Public

STATE OF           )
                   )
COUNTY OF          )

         BEFORE ME, the undersigned authority, on this day personally appeared
_________________________ of FLEET NATIONAL BANK, known to me to be the person
whose name is subscribed to the foregoing instrument, and acknowledged to me
that he executed the same for the purposes and consideration therein expressed,
in the capacity therein stated, and as the act and deed of said corporation.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE on this __ day of March, 2002.

                                                ____________________________
                                                Notary Public

                                       9
<PAGE>
                                    EXHIBIT A

                                   TRADEMARKS

<TABLE>
<CAPTION>
TRADEMARK                     JURISDICTION                  REGISTRATION NO.
---------                     ------------                  ----------------
<S>                           <C>                           <C>

</TABLE>

                                       10
<PAGE>
                                    EXHIBIT B

                                   CERTIFICATE

         The undersigned officer of ECOUPONS.COM, INC. (the "Company") DOES
HEREBY CERTIFY to FLEET NATIONAL BANK ("Agent") as agent for itself and certain
other financial institutions ("Lenders") as are parties from time to time to the
Credit Agreement among Agent, the Company, the other borrowers noted therein and
Lenders, that the quality of the products and/or services associated with the
Trademarks listed on Exhibit A of the Trademark Security Agreement dated March
19, 2002 between the Company and Agent (as amended from time to time to include
future trademarks and trademark applications) (the "Agreement"), has been
maintained at a level consistent with the quality of such products and/or
services at the time of the execution of the Agreement.

         IN WITNESS WHEREOF, the undersigned has executed this Certificate this
___ day of March, 2002.

                                          ECOUPONS.COM, INC.

                                          By:_____________________________
                                          Name: __________________________
                                          Title: _________________________

                                       11EX-10.15: NOTE PURCHASE AGREEMENT

 

BOWNE & CO., INC.

COMPOSITE CONFORMED COPY OF THE NOTE PURCHASE AGREEMENT

Re:       $25,000,000 6.90% Senior Notes, Series A, due January 30, 2007

            $28,000,000 7.31% Senior Notes, Series B, due January 30, 2012

            $22,000,000 7.85% Senior Notes, Series C, due January 30, 2012

Closing Date: February 5, 2002

   Series A PPN: 103043 A# 2

 Series B PPN: 103043 B* 5

   Series C PPN: 103043 B@ 3

         Separate and several Note Purchase Agreements, each dated as of January
30, 2002, each in the form attached hereto, were entered into by Bowne & Co.,
Inc., a Delaware corporation (the “Company”), with each of the institutions
named below. Each of said Note Purchase Agreements was executed on behalf of
the Company by C. Cody Colquitt, Chief Financial Officer of the Company. The
separate Note Purchase Agreements were addressed to each of the institutions
named in Schedule A thereto and accepted by the officers of the respective
institutions as shown below.

	 	 	 
	AMCO INSURANCE COMPANY	 	
GE LIFE AND ANNUITY ASSURANCE COMPANY
	
	
	
	

	By: /s/Mark W. Poeppelman

            Associate Vice President	 	
By: /s/Morian C. Mooers

            Investment Officer
	
	
	
	

	 	 	 
	
	
	
	

	CANADA LIFE INSURANCE COMPANY
OF AMERICA	 	
GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY
	
	
	
	

	By: /s/Paul English

            Assistant Treasurer	 	
By: /s/Morian C. Mooers

            Investment Officer
	
	
	
	

	 	 	 
	
	
	
	

	THE CANADA LIFE ASSURANCE COMPANY	 	
MODERN WOODMEN OF AMERICA
	
	
	
	

	By: /s/Paul English

            Associate Treasurer	 	
By: /s/Clyde C. Schoeck

            President

	 	 	 

 

 

	 	 	 
	 	 	
NATIONWIDE INDEMNITY COMPANY
	
	
	
	

	 	 	
By: /s/Mark W. Poeppelman

            Associate Vice President
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
	
	
	
	

	 	 	
By: /s/Mark W. Poeppelman

            Associate Vice President
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
NATIONWIDE LIFE INSURANCE COMPANY
	
	
	
	

	 	 	
By: /s/Mark W. Poeppelman

            Associate Vice President
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
NATIONWIDE MUTUAL FIRE INSURANCE COMPANY
	
	
	
	

	 	 	
By: /s/Mark W. Poeppelman

            Associate Vice President
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
NATIONWIDE MUTUAL INSURANCE COMPANY
	
	
	
	

	 	 	
By: /s/Mark W. Poeppelman

            Associate Vice President
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
PACIFIC LIFE INSURANCE COMPANY
	
	
	
	

	 	 	
By: /s/Diane W. Dales

            Associate Vice President

	
	
	
	

	 	 	 
	
	
	
	

	 	 	
By: /s/Cathy Schwartz

            Assistant Secretary
	
	
	
	

	 	 	 
	
	
	
	

	 	 	
SCOTTSDALE INSURANCE COMPANY
	
	
	
	

	 	 	
By: /s/Mark W. Poeppelman

            Associate Vice President

2

 

CONFORMED COPY

BOWNE & CO., INC.

$25,000,000 6.90% Senior Notes, Series A, due January 30, 2007

$28,000,000 7.31% Senior Notes, Series B, due January 30, 2012

$22,000,000 7.85% Senior Notes, Series C, due January 30, 2012

NOTE PURCHASE AGREEMENT

Dated as of January 30, 2002

 

 

TABLE OF CONTENTS

(Not a part of the Agreement)

	 	 	 	 	 
	SECTION	 	
HEADING
	 	PAGE
	
	
	
	

	 	 	 	 	 
	
	
	
	

	SECTION 1.	 	
AUTHORIZATION OF NOTES
	 	1
	
	
	
	

	SECTION 2.	 	
SALE AND PURCHASE OF NOTES
	 	1
	
	
	
	

	SECTION 3.	 	
CLOSING
	 	2
	
	
	
	

	SECTION 4.	 	
CONDITIONS TO CLOSING
	 	2
	
	
	
	

	            Section 4.1.	 	
Representations and Warranties
	 	2
	
	
	
	

	            Section 4.2.	 	
Performance; No Default
	 	2
	
	
	
	

	            Section 4.3.	 	
Compliance Certificates
	 	2
	
	
	
	

	            Section 4.4.	 	
Opinions of Counsel
	 	3
	
	
	
	

	            Section 4.5.	 	
Purchase Permitted By Applicable Law, Etc.
	 	3
	
	
	
	

	            Section 4.6.	 	
Sale of Other Notes
	 	3
	
	
	
	

	            Section 4.7.	 	
Payment of Special Counsel Fees
	 	3
	
	
	
	

	            Section 4.8.	 	
Private Placement Number
	 	3
	
	
	
	

	            Section 4.9.	 	
Changes in Corporate Structure
	 	3
	
	
	
	

	            Section 4.10.	 	
Funding Instructions
	 	4
	
	
	
	

	            Section 4.11.	 	
Proceedings and Documents
	 	4
	
	
	
	

	SECTION 5.	 	
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	4
	
	
	
	

	            Section 5.1.	 	
Organization; Power and Authority
	 	4
	
	
	
	

	            Section 5.2.	 	
Authorization, Etc.
	 	4
	
	
	
	

	            Section 5.3.	 	
Disclosure
	 	4
	
	
	
	

	            Section 5.4.	 	
Organization and Ownership of Shares of Subsidiaries; Affiliates
	 	5
	
	
	
	

	            Section 5.5.	 	
Financial Statements
	 	6
	
	
	
	

	            Section 5.6.	 	
Compliance with Laws, Other Instruments, Etc.
	 	6
	
	
	
	

	            Section 5.7.	 	
Governmental Authorizations, Etc.
	 	6
	
	
	
	

	            Section 5.8.	 	
Litigation; Observance of Agreements, Statutes and Orders
	 	6
	
	
	
	

	            Section 5.9.	 	
Taxes
	 	6
	
	
	
	

	            Section 5.10.	 	
Title to Property; Leases
	 	7
	
	
	
	

	            Section 5.11.	 	
Licenses, Permits, Etc.
	 	7
	
	
	
	

	            Section 5.12.	 	
Compliance with ERISA
	 	7
	
	
	
	

	            Section 5.13.	 	
Private Offering by the Company
	 	8
	
	
	
	

	            Section 5.14.	 	
Use of Proceeds; Margin Regulations
	 	9
	
	
	
	

	            Section 5.15.	 	
Existing Indebtedness; Future Liens
	 	9
	
	
	
	

	            Section 5.16.	 	
Foreign Assets Control Regulations, Etc.
	 	9
	
	
	
	

	            Section 5.17.	 	
Status under Certain Statutes
	 	9
	
	
	
	

	            Section 5.18.	 	
Notes Rank Pari Passu
	 	9
	
	
	
	

	            Section 5.19.	 	
Environmental Matters
	 	10

-i-

 

	 	 	 	 	 
	
	
	
	

	SECTION 6.	 	
REPRESENTATIONS OF THE PURCHASER
	 	10
	
	
	
	

	            Section 6.1.	 	
Purchase for Investment
	 	10
	
	
	
	

	            Section 6.2.	 	
Source of Funds
	 	10
	
	
	
	

	SECTION 7.	 	
INFORMATION AS TO THE COMPANY
	 	12
	
	
	
	

	            Section 7.1.	 	
Financial and Business Information
	 	12
	
	
	
	

	            Section 7.2.	 	
Officer’s Certificate
	 	15
	
	
	
	

	            Section 7.3.	 	
Inspection
	 	15
	
	
	
	

	SECTION 8.	 	
PREPAYMENT OF THE NOTES
	 	16
	
	
	
	

	            Section 8.1.	 	
Required Prepayments
	 	16
	
	
	
	

	            Section 8.2.	 	
Optional Prepayments with Make-Whole Amount
	 	16
	
	
	
	

	            Section 8.3.	 	
Allocation of Partial Prepayments
	 	16
	
	
	
	

	            Section 8.4.	 	
Maturity; Surrender, Etc.
	 	17
	
	
	
	

	            Section 8.5.	 	
Purchase of Notes
	 	17
	
	
	
	

	            Section 8.6.	 	
Make-Whole Amount
	 	17
	
	
	
	

	SECTION 9.	 	
AFFIRMATIVE COVENANTS
	 	18
	
	
	
	

	            Section 9.1.	 	
Compliance with Law
	 	18
	
	
	
	

	            Section 9.2.	 	
Insurance
	 	19
	
	
	
	

	            Section 9.3.	 	
Maintenance of Properties
	 	19
	
	
	
	

	            Section 9.4.	 	
Payment of Taxes and Claims
	 	19
	
	
	
	

	            Section 9.5.	 	
Corporate Existence, Etc.
	 	19
	
	
	
	

	            Section 9.6.	 	
Nature of Business
	 	20
	
	
	
	

	            Section 9.7.	 	
Notes to Rank Pari Passu
	 	20
	
	
	
	

	            Section 9.8.	 	
Additional Covenants
	 	20
	
	
	
	

	SECTION 10.	 	
NEGATIVE COVENANTS
	 	21
	
	
	
	

	            Section 10.1.	 	
Consolidated Shareholders’ Equity
	 	21
	
	
	
	

	            Section 10.2.	 	
Fixed Charge Coverage Ratio
	 	21
	
	
	
	

	            Section 10.3.	 	
Limitations on Indebtedness
	 	21
	
	
	
	

	            Section 10.4.	 	
Limitations on Priority Indebtedness
	 	21
	
	
	
	

	            Section 10.5.	 	
Limitation on Liens
	 	21
	
	
	
	

	            Section 10.6.	 	
Limitation on Sale and Leasebacks
	 	23
	
	
	
	

	            Section 10.7.	 	
Mergers, Consolidations and Sales of Assets
	 	24
	
	
	
	

	            Section 10.8.	 	
Sale of Assets
	 	25
	
	
	
	

	            Section 10.9.	 	
Transactions with Affiliates
	 	26
	
	
	
	

	            Section 10.10.	 	
Designation of Restricted Subsidiaries
	 	26
	
	
	
	

	SECTION 11.	 	
EVENTS OF DEFAULT
	 	27
	
	
	
	

	SECTION 12.	 	
REMEDIES ON DEFAULT, ETC.
	 	29
	
	
	
	

	            Section 12.1.	 	
Acceleration
	 	29
	
	
	
	

	            Section 12.2.	 	
Other Remedies
	 	30

-ii-

 

	 	 	 	 	 
	
	
	
	

	            Section 12.3.	 	
Rescission
	 	30
	
	
	
	

	            Section 12.4.	 	
No Waivers or Election of Remedies, Expenses, Etc.
	 	30
	
	
	
	

	SECTION 13.	 	
REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	 	30
	
	
	
	

	            Section 13.1.	 	
Registration of Notes
	 	30
	
	
	
	

	            Section 13.2.	 	
Transfer and Exchange of Notes
	 	31
	
	
	
	

	            Section 13.3.	 	
Replacement of Notes
	 	31
	
	
	
	

	SECTION 14.	 	
PAYMENTS ON NOTES
	 	31
	
	
	
	

	            Section 14.1.	 	
Place of Payment
	 	31
	
	
	
	

	            Section 14.2.	 	
Home Office Payment
	 	32
	
	
	
	

	SECTION 15.	 	
EXPENSES, ETC.
	 	32
	
	
	
	

	            Section 15.1.	 	
Transaction Expenses
	 	32
	
	
	
	

	            Section 15.2.	 	
Survival
	 	32
	
	
	
	

	SECTION 16.	 	
SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
	 	33
	
	
	
	

	SECTION 17.	 	
AMENDMENT AND WAIVER
	 	33
	
	
	
	

	            Section 17.1.	 	
Requirements
	 	33
	
	
	
	

	            Section 17.2.	 	
Solicitation of Holders of Notes
	 	33
	
	
	
	

	            Section 17.3.	 	
Binding Effect, Etc.
	 	34
	
	
	
	

	            Section 17.4.	 	
Notes Held by Company, Etc.
	 	34
	
	
	
	

	SECTION 18.	 	
NOTICES
	 	34
	
	
	
	

	SECTION 19.	 	
REPRODUCTION OF DOCUMENTS
	 	34
	
	
	
	

	SECTION 20.	 	
CONFIDENTIAL INFORMATION
	 	35
	
	
	
	

	SECTION 21.	 	
SUBSTITUTION OF PURCHASER
	 	36
	
	
	
	

	SECTION 22.	 	
MISCELLANEOUS
	 	36
	
	
	
	

	            Section 22.1.	 	
Successors and Assigns
	 	36
	
	
	
	

	            Section 22.2.	 	
Payments Due on Non-Business Days
	 	36
	
	
	
	

	            Section 22.3.	 	
Severability
	 	36
	
	
	
	

	            Section 22.4.	 	
Construction
	 	36
	
	
	
	

	            Section 22.5.	 	
Counterparts
	 	37
	
	
	
	

	            Section 22.6.	 	
Governing Law
	 	37
	
	
	
	

	Signature	 	 	 	38

-iii-

 

	 	 	 	 	 
	SCHEDULE A	 	
—
	 	INFORMATION RELATING TO PURCHASERS
	
	
	
	

	SCHEDULE B	 	
—
	 	DEFINED TERMS
	
	
	
	

	SCHEDULE 5.4	 	
—
	 	Subsidiaries of the Company and Ownership of Subsidiary Stock
	
	
	
	

	SCHEDULE 5.5	 	
—
	 	Financial Statements
	
	
	
	

	SCHEDULE 5.11	 	
—
	 	Patents, etc.
	
	
	
	

	SCHEDULE 5.14	 	
—
	 	Use of Proceeds
	
	
	
	

	SCHEDULE 5.15	 	
—
	 	Existing Indebtedness
	
	
	
	

	EXHIBIT 1(a)	 	
—
	 	Form of 6.90% Senior Note, Series A, due January 30, 2007
	
	
	
	

	EXHIBIT 1(b)	 	
—
	 	Form of 7.31% Senior Note, Series B, due January 30, 2012
	
	
	
	

	EXHIBIT 1(c)	 	
—
	 	Form of 7.85% Senior Note, Series C, due January 30, 2012

-iv-

 

Bowne & Co., Inc.

345 Hudson Street

New York, New York 10014

6.90% Senior Notes, Series A, due January 30, 2007

7.31% Senior Notes, Series B, due January 30, 2012

7.85% Senior Notes, Series C, due January 30, 2012

Dated as of January 30, 2002

TO THE PURCHASER LISTED IN THE ATTACHED

SCHEDULE A WHO IS A SIGNATORY HERETO:

Ladies and Gentlemen:

         BOWNE
& CO., INC., a Delaware corporation (the “Company”), agrees with you
as follows:

SECTION 1. AUTHORIZATION OF NOTES.

         The Company will authorize the issue and sale of (a) $25,000,000 aggregate
principal amount of its 6.90% Senior Notes, Series A, due January 30, 2007 (the
“Series A Notes”), (b) $28,000,000 aggregate principal amount of its 7.31%
Senior Notes, Series B, due January 30, 2012 (the
“Series B Notes”), and (c)
$22,000,000 aggregate principal amount of its 7.85% Senior Notes, Series C, due
January 30, 2012 (the “Series C Notes”; the Series A Notes, the Series B Notes
and the Series C Notes being hereinafter collectively referred to as the
“Notes”, such term to include any such notes issued in substitution therefor
pursuant to Section 13 of this Agreement or the Other Agreements (as
hereinafter defined)). The Notes shall be substantially in the form set out in
Exhibit 1(a), 1(b) and 1(c), respectively, with such changes therefrom, if any,
as may be approved by you and the Company. Certain capitalized terms used in
this Agreement are defined in Schedule B; references to a “Schedule” or an
“Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached
to this Agreement.

SECTION 2. SALE AND PURCHASE OF NOTES.

         Subject to the terms and conditions of this Agreement, the Company will
issue and sell to you and you will purchase from the Company, at the Closing
provided for in Section 3, Notes in the principal amount and of the series
specified opposite your name in Schedule A at the purchase price of 100% of the
principal amount thereof. Contemporaneously with entering into this Agreement,
the Company is entering into separate Note Purchase Agreements (the “Other
Agreements”) identical with this Agreement with each of the other purchasers
named in Schedule A (the “Other Purchasers”), providing for the sale at such
Closing to each of the Other Purchasers of Notes in the principal amount
specified and of the series opposite its name in Schedule A. Your obligation
hereunder, and the obligations of the Other Purchasers under the Other
Agreements, are several and not joint obligations, and you shall have no
obligation under

 

 

any Other Agreement and no liability to any Person for the performance or
nonperformance by any Other Purchaser thereunder.

SECTION 3. CLOSING.

         The sale and purchase of the Notes to be purchased by you and the Other
Purchasers shall occur at the offices of Chapman and Cutler, 111 West Monroe
Street, Chicago, Illinois 60603 at 10:00 a.m. Chicago time, at a closing (the
“Closing”) on February 5, 2002 or on such other Business Day thereafter on or
prior to February 11, 2002 as may be agreed upon by the Company and you and the
Other Purchasers. At the Closing the Company will deliver to you the Notes of
the series to be purchased by you in the form of a single Note (or such greater
number of Notes in denominations of at least $1,000,000 as you may request)
dated the date of the Closing and registered in your name (or in the name of
your nominee), against delivery by you to the Company or its order of
immediately available funds in the amount of the purchase price therefor by
wire transfer of immediately available funds for the account of the Company to
account number 07533508 at Wachovia Bank, 191 Peachtree Street, Atlanta,
Georgia 30303, ABA #061000010. If at the Closing the Company shall fail to
tender such Notes to you as provided above in this Section 3, or any of the
conditions specified in Section 4 shall not have been fulfilled to your
satisfaction, you shall, at your election, be relieved of all further
obligations under this Agreement, without thereby waiving any rights you may
have by reason of such failure or such nonfulfillment.

SECTION 4. CONDITIONS TO CLOSING.

         Your obligation to purchase and pay for the Notes to be sold to you at the
Closing is subject to the fulfillment to your satisfaction, prior to or at the
Closing, of the following conditions:

         Section 4.1.
Representations and Warranties. The representations and
warranties of the Company in this Agreement shall be correct when made and at
the time of the Closing.

         Section 4.2.
Performance; No Default. The Company shall have performed
and complied with all agreements and conditions contained in this Agreement
required to be performed or complied with by it prior to or at the Closing, and
after giving effect to the issue and sale of the Notes (and the application of
the proceeds thereof as contemplated by Schedule 5.14), no Default or Event of
Default shall have occurred and be continuing. Neither the Company nor any
Restricted Subsidiary shall have entered into any transaction since the date of
the Memorandum that would have been prohibited by Section 10 hereof had such
Section applied since such date.

         Section 4.3.
Compliance Certificates.

         (a) 
Officer’s Certificate. The Company shall have delivered to you an
Officer’s Certificate, dated the date of the Closing, certifying that the
conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.

-2-

 

         (b)  Secretary’s Certificate. The Company shall have delivered to you a
certificate certifying as to the resolutions attached thereto and other
corporate proceedings relating to the authorization, execution and delivery of
the Notes and the Agreements.

         Section 4.4. Opinions of Counsel. You shall have received opinions in
form and substance reasonably satisfactory to you, dated the date of the
Closing (a) from Simpson Thacher & Bartlett, counsel for the Company, covering
the matters set forth in Exhibit 4.4(a) and covering such other matters
incident to the transactions contemplated hereby as you or your counsel may
reasonably request (and the Company hereby instructs its counsel to deliver
such opinion to you) and (b) from Chapman and Cutler, your special counsel in
connection with such transactions, substantially in the form set forth in
Exhibit 4.4(b) and covering such other matters incident to such transactions as
you may reasonably request.

         Section 4.5. Purchase Permitted By Applicable Law, Etc. On the date of
the Closing your purchase of Notes shall (a) be permitted by the laws and
regulations of each jurisdiction to which you are subject, without recourse to
provisions (such as Section 1405(a)(8) of the New York Insurance Law)
permitting limited investments by insurance companies without restriction as to
the character of the particular investment, (b) not violate any applicable law
or regulation (including, without limitation, Regulation T, U or X of the Board
of Governors of the Federal Reserve System) and (c) not subject you to any tax,
penalty or liability under or pursuant to any applicable law or regulation,
which law or regulation was not in effect on the date hereof. If requested by
you, you shall have received an Officer’s Certificate certifying as to such
matters of fact as you may reasonably specify to enable you to determine
whether such purchase is so permitted.

         Section 4.6. Sale of Other Notes. Contemporaneously with the Closing, the
Company shall sell to the Other Purchasers, and the Other Purchasers shall
purchase, the Notes to be purchased by them at the Closing as specified in
Schedule A.

         Section 4.7. Payment of Special Counsel Fees. Without limiting the
provisions of Section 15.1, the Company shall have paid on or before the
Closing the fees, charges and disbursements of your special counsel referred to
in Section 4.4 to the extent reflected in a statement of such counsel rendered
to the Company at least one Business Day prior to the Closing.

         Section 4.8. Private Placement Number. A Private Placement Number issued
by Standard & Poor’s CUSIP Service Bureau (in cooperation with the Securities
Valuation Office of the National Association of Insurance Commissioners) shall
have been obtained for each series of the Notes.

         Section 4.9. Changes in Corporate Structure. The Company shall not have
changed its jurisdiction of incorporation or been a party to any merger or
consolidation and shall not have succeeded to all or any substantial part of
the liabilities of any other entity, at any time following the date of the most
recent financial statements referred to in Schedule 5.5.

-3-

 

         Section 4.10. Funding Instructions. At least three Business Days prior to
the date of the Closing, you shall have received written instructions executed
by a Responsible Officer of the Company directing the manner of the payment of
funds and setting forth (a) the name and address of the transferee bank, (b)
such transferee bank’s ABA number, (c) the account name and number into which
the purchase price for the Notes is to be deposited, and (d) the name and
telephone number of the account representative responsible for verifying
receipt of such funds.

         Section 4.11. Proceedings and Documents. All corporate and other
proceedings in connection with the transactions contemplated by this Agreement
and all documents and instruments incident to such transactions shall be
reasonably satisfactory to you and your special counsel, and you and your
special counsel shall have received all such counterpart originals or certified
or other copies of such documents as you or they may reasonably request.

SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

         The Company represents and warrants to you that as of the date of this
Agreement and as of the date of the Closing:

         Section 5.1. Organization; Power and Authority. The Company is a
corporation duly organized, validly existing and in good standing under the
laws of its jurisdiction of incorporation, and is duly qualified as a foreign
corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which
the failure to be so qualified or in good standing could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect.
The Company has the corporate power and authority to own or hold under lease
the properties it purports to own or hold under lease, to transact the business
it transacts and proposes to transact, to execute and deliver this Agreement
and the Other Agreements and the Notes and to perform the provisions hereof and
thereof.

         Section 5.2. Authorization, Etc. This Agreement, the Other Agreements and
the Notes have been duly authorized by all necessary corporate action on the
part of the Company, and this Agreement constitutes, and upon execution and
delivery thereof each Note will constitute, a legal, valid and binding
obligation of the Company enforceable against the Company in accordance with
its terms, except as such enforceability may be limited by (a) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and (b) general
principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

         Section 5.3. Disclosure. The Company, through its agent, BMO Nesbitt
Burns Corp., has delivered to you and each Other Purchaser a copy of a Private
Placement Memorandum dated December, 2001, including documents incorporated by
reference therein and listed on Schedule 5.5 (the
“Memorandum”), relating to
the transactions contemplated hereby. The Memorandum fairly describes, in all
material respects, the general nature of the business and principal properties
of the Company and its Subsidiaries. This Agreement, the Memorandum, the
documents, certificates or other writings delivered to you by or on behalf of
the Company in connection with the transactions contemplated hereby and the
financial statements listed in

-4-

 

Schedule 5.5, taken as a whole, do not contain any untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein not misleading in light of the circumstances under which
they were made. Except as disclosed in Management’s Discussion and Analysis of
Financial Condition and Results of Operations set forth in the Company’s Form
10-Q for the quarterly period ended September 30, 2001, since December 31,
2000, there has been no change in the financial condition, operations,
business, properties or prospects of the Company or any Subsidiary except
changes that individually or in the aggregate could not reasonably be expected
to have a Material Adverse Effect. There is no fact known to the Company that
could reasonably be expected to have a Material Adverse Effect that has not
been set forth herein or in the Memorandum or in the other documents,
certificates and other writings delivered to you by or on behalf of the Company
specifically for use in connection with the transactions contemplated hereby.

         Section 5.4. Organization and Ownership of Shares of Subsidiaries;
Affiliates. (a) Schedule 5.4 contains (except as noted therein) complete and
correct lists (i) of the Company’s Restricted Subsidiaries, showing, as to each
Restricted Subsidiary, the correct name thereof, the jurisdiction of its
organization, and the percentage of shares of each class of its capital stock
or similar equity interests outstanding owned by the Company and each other
Restricted Subsidiary, (ii) of the Company’s Subsidiaries, other than
Restricted Subsidiaries, (iii) of the Company’s Affiliates, other than
Subsidiaries, and (iv) of the Company’s directors and executive officers.

         (b)  All of the outstanding shares of capital stock or similar equity
interests of each Restricted Subsidiary shown in Schedule 5.4 as being owned by
the Company and its Restricted Subsidiaries have been validly issued, are fully
paid and nonassessable and are owned by the Company or another Restricted
Subsidiary free and clear of any Lien (except as otherwise disclosed in
Schedule 5.4).

         (c)  Each Restricted Subsidiary identified in Schedule 5.4 is a corporation
or other legal entity duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization, and is duly qualified as a
foreign corporation or other legal entity and is in good standing in each
jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing
could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. Each such Restricted Subsidiary has the corporate or
other power and authority to own or hold under lease the properties it purports
to own or hold under lease and to transact the business it transacts and
proposes to transact.

         (d)  No Restricted Subsidiary is a party to, or otherwise subject to, any
legal restriction or any agreement (other than this Agreement, the agreements
listed on Schedule 5.4 and customary limitations imposed by corporate law
statutes) restricting the ability of such Restricted Subsidiary to pay
dividends out of profits or make any other similar distributions of profits to
the Company or any of its Restricted Subsidiaries that owns outstanding shares
of capital stock or similar equity interests of such Restricted Subsidiary.

-5-

 

         Section 5.5. Financial Statements. The Company has delivered to each
Purchaser copies of the financial statements of the Company and its
Subsidiaries listed on Schedule 5.5. All of said financial statements
(including in each case the related schedules and notes) fairly present in all
material respects the consolidated financial position of the Company and its
Subsidiaries as of the respective dates specified in such financial statements
and the consolidated results of their operations and cash flows for the
respective periods so specified and have been prepared in accordance with GAAP
consistently applied throughout the periods involved except as set forth in the
notes thereto (subject, in the case of any interim financial statements, to
normal year-end adjustments).

         Section 5.6. Compliance with Laws, Other Instruments, Etc. The execution,
delivery and performance by the Company of this Agreement and the Notes will
not (a) contravene, result in any breach of, or constitute a default under, or
result in the creation of any Lien in respect of any property of the Company or
any Restricted Subsidiary under, any indenture, mortgage, deed of trust, loan,
purchase or credit agreement, lease, corporate charter or by-laws, or any other
agreement or instrument to which the Company or any Restricted Subsidiary is
bound or by which the Company or any Restricted Subsidiary or any of their
respective properties may be bound or affected, (b) conflict with or result in
a breach of any of the terms, conditions or provisions of any order, judgment,
decree, or ruling of any court, arbitrator or Governmental Authority applicable
to the Company or any Restricted Subsidiary or (c) violate any provision of any
statute or other rule or regulation of any Governmental Authority applicable to
the Company or any Restricted Subsidiary, except with respect to the foregoing
clauses (a), (b) and (c), any such event which individually or in the aggregate
could not be expected to have a Material Adverse Effect.

         Section 5.7. Governmental Authorizations, Etc. No consent, approval or
authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance
by the Company of this Agreement or the Notes.

         Section 5.8. Litigation; Observance of Agreements, Statutes and Orders.
(a) There are no actions, suits or proceedings pending or, to the knowledge
of the Company, threatened against or affecting the Company or any Restricted
Subsidiary or any property of the Company or any Restricted Subsidiary in any
court or before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

         (b)  Neither the Company nor any Restricted Subsidiary is in default under
any term of any agreement or instrument to which it is a party or by which it
is bound, or any order, judgment, decree or ruling of any court, arbitrator or
Governmental Authority or is in violation of any applicable law, ordinance,
rule or regulation (including without limitation Environmental Laws) of any
Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

         Section 5.9. Taxes. The Company and its Restricted Subsidiaries have
filed all tax returns that are required to have been filed in any jurisdiction,
the non-filing of which could be

-6-

 

expected to be material in relation to the business, operations, affairs,
financial condition, assets, properties or prospects of the Company or any of
its Restricted Subsidiaries, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or
their properties, assets, income or franchises, to the extent such taxes and
assessments have become due and payable and before they have become delinquent,
except for any taxes and assessments (a) the amount of which is not
individually or in the aggregate Material or (b) the amount, applicability or
validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which the Company or a Restricted Subsidiary,
as the case may be, has established adequate reserves in accordance with GAAP.
The Company knows of no basis for any other tax or assessment that could
reasonably be expected to have a Material Adverse Effect. The charges,
accruals and reserves on the books of the Company and its Restricted
Subsidiaries in respect of Federal, state or other taxes for all fiscal periods
are adequate. All required U.S. Federal income tax returns of the Company and
its Restricted Subsidiaries have been timely filed and all related taxes paid
or provided for in the financial statements through December 31, 2001. The
Company has been audited by the Internal Revenue Service through year ended
October 31, 1996.

         Section 5.10. Title to Property; Leases. The Company and its Restricted
Subsidiaries have good and sufficient title to their respective properties that
individually or in the aggregate are Material, including all such properties
reflected in the most recent audited balance sheet referred to in Section 5.5
or purported to have been acquired by the Company or any Restricted Subsidiary
after said date (except as sold or otherwise disposed of in the ordinary course
of business), in each case free and clear of Liens prohibited by this
Agreement. All leases that individually or in the aggregate are Material are
valid and subsisting and are in full force and effect in all material respects.

         Section 5.11. Licenses, Permits, Etc. Except as disclosed in Schedule
5.11,

		
	 	         (a) the Company and its Restricted Subsidiaries own or possess all
licenses, permits, franchises, authorizations, patents, copyrights,
service marks, trademarks and trade names, or rights thereto, that
individually or in the aggregate are Material, without known conflict
with the rights of others;
	 
	 	         (b) to the best knowledge of the Company, no product of the Company
infringes in any Material respect any license, permit, franchise,
authorization, patent, copyright, service mark, trademark, trade name or
other right owned by any other Person; and
	 
	 	         (c) to the best knowledge of the Company, there is no Material
violation by any Person of any right of the Company or any of its
Restricted Subsidiaries with respect to any patent, copyright, service
mark, trademark, trade name or other right owned or used by the Company
or any of its Restricted Subsidiaries.

         Section 5.12. Compliance with ERISA. (a) The Company and each ERISA
Affiliate have operated and administered each employee benefit plan (as defined
in Section 3 of ERISA) in compliance with all applicable laws except for such
instances of noncompliance as have not

-7-

 

resulted in and could not reasonably be expected to result in a Material
Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any
liability pursuant to Title I or IV of ERISA or the penalty or excise tax
provisions of the Code relating to employee benefit plans (as defined in
Section 3 of ERISA), and no event, transaction or condition has occurred or
exists that could reasonably be expected to result in the incurrence of any
such liability by the Company or any ERISA Affiliate, or in the imposition of
any Lien on any of the rights, properties or assets of the Company or any ERISA
Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty
or excise tax provisions or to Section 401(a)(29) or 412 of the Code, other
than such liabilities or Liens as would not be individually or in the aggregate
result in a Material Adverse Effect.

         (b)  The present value of the aggregate benefit liabilities under each of
the Plans (other than Multiemployer Plans), determined as of the end of such
Plan’s most recently ended plan year on the basis of the actuarial assumptions
specified for funding purposes in such Plan’s most recent actuarial valuation
report, did not exceed the aggregate current value of the assets of such Plan
allocable to such benefit liabilities. The term “benefit liabilities” has the
meaning specified in Section 4001 of ERISA and the terms “current value” and
“present value” have the meaning specified in section 3 of ERISA.

         (c)  The Company and its ERISA Affiliates have not incurred withdrawal
liabilities (and are not subject to contingent withdrawal liabilities) under
Section 4201 or 4204 of ERISA in respect of Multiemployer Plans that
individually or in the aggregate are Material.

         (d)  The expected post-retirement benefit obligation (determined as of the
last day of the Company’s most recently ended fiscal year in accordance with
Financial Accounting Standards Board Statement No. 106, without regard to
liabilities attributable to continuation coverage mandated by Section 4980B of
the Code) of the Company and its Restricted Subsidiaries is not Material.

         (e)  The execution and delivery of this Agreement and the issuance and sale
of the Notes hereunder will not involve any transaction that is subject to the
prohibitions of Section 406 of ERISA or in connection with which a tax could be
imposed pursuant to Section 4975(c)(1)(A)-(D) of the Code. The representation
by the Company in the first sentence of this Section 5.12(e) is made in
reliance upon and subject to the accuracy of your representation in Section 6.2
as to the sources of the funds used to pay the purchase price of the Notes to
be purchased by you.

         Section 5.13. Private Offering by the Company. Neither the Company nor
anyone acting on its behalf has offered the Notes or any similar securities for
sale to, or solicited any offer to buy any of the same from, or otherwise
approached or negotiated in respect thereof with, any Person other than you,
the Other Purchasers and not more than 50 other Institutional Investors, each
of which has been offered the Notes at a private sale for investment. Neither
the Company nor anyone acting on its behalf has taken, or will take, any action
that would subject the issuance or sale of the Notes to the registration
requirements of Section 5 of the Securities Act.

-8-

 

         Section 5.14. Use of Proceeds; Margin Regulations. The Company will apply
the proceeds of the sale of the Notes as set forth in Schedule 5.14. No part of
the proceeds from the sale of the Notes hereunder will be used, directly or
indirectly, for the purpose of buying or carrying any margin stock within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 221), or for the purpose of buying or carrying or trading in any
securities under such circumstances as to involve the Company in a violation of
Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a
violation of Regulation T of said Board (12 CFR 220). Margin stock does not
constitute more than 5% of the value of the consolidated assets of the Company
and its Restricted Subsidiaries and the Company does not have any present
intention that margin stock will constitute more than 5% of the value of such
assets. As used in this Section, the terms “margin stock” and “purpose of
buying or carrying” shall have the meanings assigned to them in said Regulation
U.

         Section 5.15. Existing Indebtedness; Future Liens. (a) Schedule 5.15 sets
forth a complete and correct list of all outstanding Indebtedness of the
Company and its Restricted Subsidiaries as of February 4, 2002. Neither the
Company nor any Restricted Subsidiary is in default and no waiver of default is
currently in effect, in the payment of any principal or interest on any
Indebtedness of the Company or such Restricted Subsidiary and no event or
condition exists with respect to any Indebtedness of the Company or any
Restricted Subsidiary that would permit (or that with notice or the lapse of
time, or both, would permit) one or more Persons to cause such Indebtedness to
become due and payable before its stated maturity or before its regularly
scheduled dates of payment.

         (b)  Except as disclosed in Schedule 5.15, neither the Company nor any
Restricted Subsidiary has agreed or consented to cause or permit in the future
(upon the happening of a contingency or otherwise) any of its property, whether
now owned or hereafter acquired, to be subject to a Lien not permitted by
Section 10.3.

         Section 5.16. Foreign Assets Control Regulations, Etc. Neither the sale
of the Notes by the Company hereunder nor its use of the proceeds thereof will
violate the Trading with the Enemy Act, as amended, or any of the foreign
assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) or any enabling legislation or executive
order relating thereto. Without limiting the foregoing, neither the Company
nor any of its Subsidiaries (a) is a blocked person described in Section 1 of
Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism
(66 Fed. Reg. 49049 (2001)) or (b) engages in any dealings or transactions with
any such blocked person.

         Section 5.17. Status under Certain Statutes. Neither the Company nor any
Restricted Subsidiary is an “investment company” registered or required to be
registered subject to regulation under the Investment Company Act of 1940, as
amended, or is subject to regulation under the Public Utility Holding Company
Act of 1935, as amended, the ICC Termination Act of 1995, as amended, or the
Federal Power Act, as amended.

         Section 5.18. Notes Rank Pari Passu. The obligations of the Company under
this Agreement and the Notes rank at least pari passu in right of payment with
all other unsecured

-9-

 

Senior Indebtedness (actual or contingent) of the Company, including, without
limitation, all senior unsecured Indebtedness of the Company described in
Schedule 5.15 hereto.

         Section 5.19. Environmental Matters. Neither the Company nor any
Restricted Subsidiary has knowledge of any claim or has received any notice of
any claim, and no proceeding has been instituted raising any claim against the
Company or any of its Restricted Subsidiaries or, to the knowledge of the
Company or any Restricted Subsidiary, any of their respective real properties
now or formerly owned, leased or operated by any of them or other assets,
alleging any damage to the environment or violation of any Environmental Laws,
except, in each case, such as could not reasonably be expected to result in a
Material Adverse Effect. Except as otherwise disclosed to you in writing:

		
	 	         (a) neither the Company nor any Restricted Subsidiary has knowledge
of any facts which would give rise to any claim, public or private, of
violation of Environmental Laws or damage to the environment emanating
from, occurring on or in any way related to real properties now or
formerly owned, leased or operated by any of them or to other assets or
their use, except, in each case, such as could not reasonably be expected
to result in a Material Adverse Effect;
	 
	 	         (b) neither the Company nor any of its Restricted Subsidiaries has
stored any Hazardous Materials on real properties now or formerly owned,
leased or operated by any of them or has disposed of any Hazardous
Materials in a manner contrary to any Environmental Laws in each case in
any manner that could reasonably be expected to result in a Material
Adverse Effect; and
	 
	 	         (c) all buildings or portions thereof, to the extent occupied by the
Company or Restricted Subsidiary, on all real properties now owned,
leased or operated by the Company or any of its Restricted Subsidiaries
and, to the knowledge of the Company or any Restricted Subsidiary, all of
the buildings or the portions thereof on such real properties are in
compliance with applicable Environmental Laws, except where failure to
comply could not reasonably be expected to result in a Material Adverse
Effect.

SECTION 6. REPRESENTATIONS OF THE PURCHASER.

         Section 6.1. Purchase for Investment. You represent that you are
purchasing the Notes for your own account or for one or more separate accounts
maintained by you or for the account of one or more pension or trust funds and
not with a view to the distribution thereof; provided that the disposition of
your or their property shall at all times be within your or their control. You
understand that the Notes have not been registered under the Securities Act and
may be resold only if registered pursuant to the provisions of the Securities
Act or if an exemption from registration is available, except under
circumstances where neither such registration nor such an exemption is required
by law, and that the Company is not required to register the Notes.

         Section 6.2. Source of Funds. You represent that at least one of the
following statements is an accurate representation as to each source of funds
(a “Source”) to be used by you to pay the purchase price of the Notes to be
purchased by you hereunder:

-10-

 

		
	 	         (a) the Source is an “insurance company general account” within the
meaning of Department of Labor Prohibited Transaction Exemption (“PTE”)
95-60 (issued July 12, 1995) and there is no employee benefit plan,
treating as a single plan all plans maintained by the same employer or
employee organization, with respect to which the amount of the general
account reserves and liabilities for all contracts held by or on behalf
of such plan, exceed ten percent (10%) of the total reserves and
liabilities of such general account (exclusive of separate account
liabilities) plus surplus, as set forth in the NAIC Annual Statement
filed with your state of domicile; or
	 
	 	         (b) the Source is either (i) an insurance company pooled separate
account, within the meaning of PTE 90-1 (issued January 29, 1990), or
(ii) a bank collective investment fund, within the meaning of the PTE
91-38 (issued July 12, 1991) and, except as you have disclosed to the
Company in writing pursuant to this paragraph (b), no employee benefit
plan or group of plans maintained by the same employer or employee
organization beneficially owns more than 10% of all assets allocated to
such pooled separate account or collective investment fund; or
	 
	 	         (c) the Source constitutes assets of an “investment fund” (within
the meaning of Part V of the QPAM Exemption) managed by a “qualified
professional asset manager” or “QPAM” (within the meaning of Part V of
the QPAM Exemption), no employee benefit plan’s assets that are included
in such investment fund, when combined with the assets of all other
employee benefit plans established or maintained by the same employer or
by an affiliate (within the meaning of Section V(c)(1) of the QPAM
Exemption) of such employer or by the same employee organization and
managed by such QPAM, exceed 20% of the total client assets managed by
such QPAM, the conditions of Part l(c) and (g) of the QPAM Exemption are
satisfied, neither the QPAM nor a Person controlling or controlled by the
QPAM (applying the definition of “control” in Section V(e) of the QPAM
Exemption) owns a 5% or more interest in the Company and (i) the identity
of such QPAM and (ii) the names of all employee benefit plans whose
assets are included in such investment fund have been disclosed to the
Company in writing pursuant to this paragraph (c); or
	 
	 	         (d) the Source constitutes the assets of a “plan” within the meaning
of Part IV(h) or PTE 96-23 (the “INHAM Exemption”) managed by an
“in-house asset manager” within the meaning of Part IV(a) of the INHAM
Exemption (an “INHAM”) and the conditions of Part 1(a), (g) and (h) of
the INHAM Exemption are satisfied and neither the INHAM nor a person
controlling or controlled by the INHAM (applying the definition of
“control” in Part (IV)(d)(3) of the INHAM Exemption) owns a 5% or more
interest in the Company, and the identity of the INHAM has been disclosed
to the Company in writing pursuant to this paragraph (d); or
	 
	 	         (e) the Source is a governmental plan; or
	 
	 	         (f) the Source is one or more employee benefit plans, or a separate
account or trust fund comprised of one or more employee benefit plans,
each of which has been identified to the Company in writing pursuant to
this paragraph (f); or

-11-

 

		
	 	         (g) the Source does not include assets of any employee benefit plan,
other than a plan exempt from the coverage of ERISA.

         As used in this Section 6.2, the terms “employee benefit plan”,
“governmental plan”, “party in interest” and “separate account” shall have the
respective meanings assigned to such terms in Section 3 of ERISA.

SECTION 7. INFORMATION AS TO THE COMPANY.

         Section 7.1.
Financial and Business Information. The Company shall
deliver to each holder of Notes that is an Institutional Investor:

		
	 	         (a) Quarterly Statements — within 60 days after the end of each
quarterly fiscal period in each fiscal year of the Company (other than
the last quarterly fiscal period of each such fiscal year), duplicate
copies of:

		
	 	         (i) a consolidated balance sheet of the Company and its
Subsidiaries as at the end of such quarter, and
	 
	 	         (ii) consolidated statements of income, changes in
shareholders’ equity and cash flows of the Company and its
Subsidiaries for such quarter and (in the case of the second and
third quarters) for the portion of the fiscal year ending with such
quarter,

		
	 	setting forth in each case in comparative form the figures for the
corresponding periods in the previous fiscal year, all in reasonable detail,
prepared in accordance with GAAP applicable to quarterly financial statements
generally, and certified by a Senior Financial Officer as fairly presenting, in
all material respects, the financial position of the companies being reported
on and their results of operations and cash flows, subject to changes resulting
from year-end adjustments; provided that delivery within the time period
specified above of copies of the Company’s Quarterly Report on Form 10-Q
prepared in compliance with the requirements therefor and filed with the
Securities and Exchange Commission shall be deemed to satisfy the requirements
of this Section 7.1(a);

		
	 	         (b) Annual Statements — within 120 days after the end of each fiscal
year of the Company, duplicate copies of,

		
	 	         (i) a consolidated balance sheet of the Company and its
Subsidiaries, as at the end of such year, and
	 
	 	         (ii) consolidated statements of income, changes in
shareholders’ equity and cash flows of the Company and its
Subsidiaries, for such year,

		
	 	setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail, prepared in accordance
with GAAP, and accompanied by:

-12-

 

		
	 	         (1) an opinion thereon of independent certified public
accountants of recognized national standing, which opinion
shall state that such financial statements present fairly, in
all material respects, the financial position of the
companies being reported upon and their results of operations
and cash flows and have been prepared in conformity with
GAAP, and that the examination of such accountants in
connection with such financial statements has been made in
accordance with generally accepted auditing standards, and
that such audit provides a reasonable basis for such opinion
in the circumstances, and
	 
	 	         (2) a certificate of such accountants stating that they
have reviewed this Agreement and stating further that, in
making their audit, they had not become aware of any
condition or event that then constitutes a Default or an
Event of Default with respect to Sections 10.1, 10.2 or 10.3,
and, if they are aware that any such condition or event then
exists, specifying the nature and period of the existence
thereof (it being understood that such accountants shall not
be liable, directly or indirectly, for any failure to obtain
knowledge of any Default or Event of Default unless such
accountants should have obtained knowledge thereof in making
an audit in accordance with generally accepted auditing
standards or did not make such an audit),

		
	 	provided that the delivery within the time period specified above of the
Company’s Annual Report on Form 10-K for such fiscal year (together with
the Company’s annual report to shareholders, if any, prepared pursuant to
Rule 14a-3 under the Exchange Act) prepared in accordance with the
requirements therefor and filed with the Securities and Exchange
Commission, together with the accountant’s certificate described in
clause (2) above, shall be deemed to satisfy the requirements of this
Section 7.1(b);

		
	 	         (c) SEC and Other Reports — promptly upon their becoming available,
one copy of (i) each financial statement, report, notice or proxy
statement sent by the Company or any Restricted Subsidiary to public
securities holders generally, and (ii) each regular or periodic report,
each registration statement (without exhibits except as expressly
requested by such holder) (other than statements on Form S-8), and each
prospectus and all amendments thereto filed by the Company or any
Restricted Subsidiary with the Securities and Exchange Commission and of
all press releases and other statements made available generally by the
Company or any Restricted Subsidiary to the public concerning
developments that are Material;
	 
	 	         (d) Notice of Default or Event of Default — promptly, and in any
event within five days after a Responsible Officer becoming aware of the
existence of any Default or Event of Default or that any Person has given
any notice or taken any action with respect to a claimed Default
hereunder or that any Person has given any notice or taken any action
with respect to a claimed Default of the type referred to in Section
11(f), a written notice specifying the nature and period of existence
thereof and what action the Company is taking or proposes to take with
respect thereto;

-13-

 

		
	 	         (e) ERISA Matters — promptly, and in any event within five Business
Days after a Responsible Officer becoming aware of any of the following,
a written notice setting forth the nature thereof and the action, if any,
that the Company or an ERISA Affiliate proposes to take with respect
thereto:

		
	 	         (i) with respect to any Plan, any reportable event, as defined
in Section 4043(c) of ERISA and the regulations thereunder, for
which notice thereof has not been waived pursuant to such
regulations as in effect on the date hereof; or
	 
	 	         (ii) the institution by the PBGC of, or the threatening by the
PBGC of the institution of, proceedings under Section 4042 of ERISA
for the termination of, or the appointment of a trustee to
administer, any Plan, or the receipt by the Company or any ERISA
Affiliate of a notice from a Multiemployer Plan that such action
has been taken by the PBGC with respect to such Multiemployer Plan;
or

		
	 	         (iii) any event, transaction or condition that could result in
the incurrence of any liability by the Company or any ERISA
Affiliate pursuant to Title I or IV of ERISA or the penalty or
excise tax provisions of the Code relating to employee benefit
plans, or in the imposition of any Lien on any of the rights,
properties or assets of the Company or any ERISA Affiliate pursuant
to Title I or IV of ERISA or such penalty or excise tax provisions,
if such liability or Lien, taken together with any other such
liabilities or Liens then existing, could reasonably be expected to
have a Material Adverse Effect;

		
	 	         (f) Restricted Subsidiaries — Within the respective periods provided
in paragraphs (a) and (b) above, consolidated financial statements of the
character and for the dates and periods as in said paragraphs (a) and (b)
provided, covering the Company and its Restricted Subsidiaries if
Unrestricted Subsidiaries constitute in the aggregate more than 10% of
Consolidated Total Capitalization or contribute in the aggregate more
than 10% of Consolidated Net Income in any fiscal period;
	 
	 	         (g) Notices from Governmental Authority — promptly, and in any event
within 30 days of receipt thereof, copies of any notice to the Company or
any Restricted Subsidiary from any Federal or state Governmental
Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse
Effect; and
	 
	 	         (h) Requested Information — with reasonable promptness, such other
data and information relating to the business, operations, affairs,
financial condition, assets or properties of the Company or any of its
Restricted Subsidiaries or relating to the ability of the Company to
perform its obligations hereunder and under the Notes as from time to
time may be reasonably requested by any such holder of Notes, including
without limitation, such information as is required by SEC Rule 144A
under the Securities Act to be delivered to the prospective transferee of
the Notes.

-14-

 

         Section 7.2. Officer’s Certificate. Each set of financial statements
delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b)
hereof shall be accompanied by a certificate of a Senior Financial Officer
setting forth:

		
	 	         (a) Covenant Compliance — the information (including detailed
calculations) required in order to establish whether the Company was in
compliance with the requirements of Section 10.1 through Section 10.6
hereof, inclusive, during the quarterly or annual period covered by the
statements then being furnished (including with respect to each such
Section, where applicable, the calculations of the maximum or minimum
amount, ratio or percentage, as the case may be, permissible under the
terms of such Sections, and the calculation of the amount, ratio or
percentage then in existence); and
	 
	 	         (b) Event of Default — a statement that such officer has reviewed
the relevant terms hereof and has made, or caused to be made, under his
or her supervision, a review of the transactions and conditions of the
Company and its Restricted Subsidiaries from the beginning of the
quarterly or annual period covered by the statements then being furnished
to the date of the certificate and that such review shall not have
disclosed the existence during such period of any condition or event that
constitutes a Default or an Event of Default or, if any such condition or
event existed or exists (including, without limitation, any such event or
condition resulting from the failure of the Company or any Restricted
Subsidiary to comply with any Environmental Law), specifying the nature
and period of existence thereof and what action the Company shall have
taken or proposes to take with respect thereto.

         Section 7.3. Inspection. The Company shall permit the representatives of
each holder of Notes that is an Institutional Investor:

		
	 	         (a) No Default — if no Default or Event of Default then exists, at
the expense of such holder and upon reasonable prior notice to the
Company, to visit the principal executive office of the Company, to
discuss the affairs, finances and accounts of the Company and its
Restricted Subsidiaries with the Company’s officers, and (with the
consent of the Company, which consent will not be unreasonably withheld)
its independent public accountants, and (with the consent of the Company,
which consent will not be unreasonably withheld) to visit the other
offices and properties of the Company and each Restricted Subsidiary, all
at such reasonable times and as often as may be reasonably requested in
writing; and
	 
	 	         (b) Default — if a Default or Event of Default then exists, at the
expense of the Company, to visit and inspect any of the offices or
properties of the Company or any Restricted Subsidiary, to examine all
their respective books of account, records, reports and other papers, to
make copies and extracts therefrom, and to discuss their respective
affairs, finances and accounts with their respective officers and
independent public accountants (and by this provision the Company
authorizes said accountants to discuss the affairs, finances and accounts
of the Company and its Restricted Subsidiaries), all at such times and as
often as may be requested.

-15-

 

SECTION 8. PREPAYMENT OF THE NOTES.

         Section 8.1. Required Prepayments. (a) No regularly scheduled prepayment
of the principal of the Series A Notes is required prior to the final maturity
date thereof.

         (b)  In addition to paying the remaining outstanding principal amount and
the interest due on the Series B Notes on the maturity date thereof, on January
30, 2006 and on each January 30 thereafter to and including January 30, 2011
the Company will prepay $4,000,000 principal amount (or such lesser principal
amount as shall then be outstanding) of the Series B Notes at par and without
payment of the Make-Whole Amount or any premium; provided that upon any partial
prepayment of the Notes pursuant to Section 8.2 or purchase of the Notes
permitted by Section 8.5 the principal amount of each required prepayment of
the Series B Notes becoming due under this Section 8.1(b) on and after the date
of such prepayment or purchase shall be reduced in the same proportion as the
aggregate unpaid principal amount of the Series B Notes is reduced as a result
of such prepayment or purchase.

         (c)  No regularly scheduled prepayment of the principal of the Series C
Notes is required prior to the final maturity date thereof.

         Section 8.2. Optional Prepayments with Make-Whole Amount. The Company
may, at its option, upon notice as provided below, prepay at any time all, or
from time to time any part of, the Notes, in an amount not less than 10% of the
aggregate principal amount of the Notes then outstanding in the case of a
partial prepayment (but if in the case of a partial prepayment, then against
each series of Notes in proportion to the aggregate principal amount
outstanding on each series), at 100% of the principal amount so prepaid,
together with interest accrued thereon to the date of such prepayment, plus the
Make-Whole Amount determined for the prepayment date with respect to such
principal amount. The Company will give each holder of Notes written notice of
each optional prepayment under this Section 8.2 not less than 30 days and not
more than 60 days prior to the date fixed for such prepayment. Each such
notice shall specify such date, the aggregate principal amount of each series
of the Notes to be prepaid on such date, the principal amount of each Note held
by such holder to be prepaid (determined in accordance with Section 8.3), and
the interest to be paid on the prepayment date with respect to such principal
amount being prepaid, and shall be accompanied by a certificate of a Senior
Financial Officer as to the estimated Make-Whole Amount due in connection with
such prepayment (calculated as if the date of such notice were the date of the
prepayment), setting forth the details of such computation. Two Business Days
prior to such prepayment, the Company shall deliver to each holder of Notes a
certificate of a Senior Financial Officer specifying the calculation of such
Make-Whole Amount as of the specified prepayment date.

         Section 8.3. Allocation of Partial Prepayments. In the case of each
partial prepayment of the Notes pursuant to Section 8.2, the principal amount
of the Notes to be prepaid shall be (a) allocated among each series of Notes in
proportion to the aggregate unpaid principal amount of each such series of
Notes and (b) allocated pro rata among all of the Notes at the time outstanding
in proportion, as nearly as practicable, to the respective unpaid principal
amounts thereof not theretofore called for prepayment.

-16-

 

         Section 8.4. Maturity; Surrender, Etc. In the case of each prepayment of
Notes pursuant to this Section 8, the principal amount of each Note to be
prepaid shall mature and become due and payable on the date fixed for such
prepayment, together with interest on such principal amount accrued to such
date and the applicable Make-Whole Amount, if any. From and after such date,
unless the Company shall fail to pay such principal amount when so due and
payable, together with the interest and Make-Whole Amount, if any, as
aforesaid, interest on such principal amount shall cease to accrue. Any Note
paid or prepaid in full shall be surrendered to the Company and cancelled and
shall not be reissued, and no Note shall be issued in lieu of any prepaid
principal amount of any Note.

         Section 8.5. Purchase of Notes. The Company will not and will not permit
any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or
indirectly, any of the outstanding Notes except (a) upon the payment or
prepayment of the Notes in accordance with the terms of this Agreement and the
Notes or (b) pursuant to an offer to purchase made by the Company or an
Affiliate pro rata to the holders of Notes of each series at the time
outstanding upon the same terms and conditions. Any such offer shall provide
each holder with sufficient information to enable it to make an informed
decision with respect to such offer, and shall remain open for at least ten
Business Days. The Company will promptly cancel all Notes acquired by it or
any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant
to any provision of this Agreement and no Notes may be issued in substitution
or exchange for any such Notes.

         Section 8.6. Make-Whole Amount. The term “Make-Whole Amount” means, with
respect to any Note, an amount equal to the excess, if any, of the Discounted
Value of the Remaining Scheduled Payments with respect to the Called Principal
of such Note over the amount of such Called Principal; provided that the
Make-Whole Amount may in no event be less than zero. For the purposes of
determining the Make-Whole Amount, the following terms have the following
meanings:

		
	 	         “Called Principal” means, with respect to any Note, the principal of
such Note that is to be prepaid pursuant to Section 8.2 or has become or
is declared to be immediately due and payable pursuant to Section 12.1,
as the context requires.
	 
	 	         “Discounted Value” means, with respect to the Called Principal of
any Note, the amount obtained by discounting all Remaining Scheduled
Payments with respect to such Called Principal from their respective
scheduled due dates to the Settlement Date with respect to such Called
Principal, in accordance with accepted financial practice and at a
discount factor (applied on the same periodic basis as that on which
interest on the Notes is payable) equal to the Reinvestment Yield with
respect to such Called Principal.
	 
	 	         “Reinvestment Yield” means, with respect to the Called Principal of
any Note, .50% over the yield to maturity implied by (a) the yields
reported, as of 10:00 A.M. (New York City time) on the second Business
Day preceding the Settlement Date with respect to such Called Principal,
on the display designated as “Page PX-1” of the Bloomberg Financial
Markets Services Screen (or, if not available, any other national
recognized trading screen reporting on-line intraday trading in the U.S.
Treasury securities) for actively traded on-the-run U.S. Treasury
securities having a maturity equal to the

-17-

 

		
	 	Remaining Average Life of such Called Principal as of such
Settlement Date, or (b) if such yields are not reported as of such time
or the yields reported as of such time are not ascertainable, the
Treasury Constant Maturity Series Yields reported, for the latest day for
which such yields have been so reported as of the second Business Day
preceding the Settlement Date with respect to such Called Principal, in
Federal Reserve Statistical Release H.15 (519) (or any comparable
successor publication) for actively traded on-the-run U.S. Treasury
securities having a constant maturity equal to the Remaining Average Life
of such Called Principal as of such Settlement Date. Such implied yield
will be determined, if necessary, by (i) converting U.S. Treasury bill
quotations to bond-equivalent yields in accordance with accepted
financial practice and (ii) interpolating linearly between (1) the
actively traded on-the-run U.S. Treasury security with the maturity
closest to and greater than the Remaining Average Life and (2) the
actively traded on-the-run U.S. Treasury security with the maturity
closest to and less than the Remaining Average Life.

		
	 	         “Remaining Average Life” means, with respect to any Called
Principal, the number of years (calculated to the nearest one-twelfth
year) obtained by dividing (a) such Called Principal into (b) the sum of
the products obtained by multiplying (i) the principal component of each
Remaining Scheduled Payment with respect to such Called Principal by (ii)
the number of years (calculated to the nearest one-twelfth year) that
will elapse between the Settlement Date with respect to such Called
Principal and the scheduled due date of such Remaining Scheduled Payment.
	 
	 	         “Remaining Scheduled Payments” means, with respect to the Called
Principal of any Note, all payments of such Called Principal and interest
thereon that would be due after the Settlement Date with respect to such
Called Principal if no payment of such Called Principal were made prior
to its scheduled due date; provided that if such Settlement Date is not a
date on which interest payments are due to be made under the terms of the
Notes, then the amount of the next succeeding scheduled interest payment
will be reduced by the amount of interest accrued to such Settlement Date
and required to be paid on such Settlement Date pursuant to Section 8.2
or 12.1.
	 
	 	         “Settlement Date” means, with respect to the Called Principal of any
Note, the date on which such Called Principal is to be prepaid pursuant
to Section 8.2 or has become or is declared to be immediately due and
payable pursuant to Section 12.1, as the context requires.

SECTION 9. AFFIRMATIVE COVENANTS.

         The Company covenants that so long as any of the Notes are outstanding:

         Section 9.1. Compliance with Law. The Company will, and will cause each
of its Restricted Subsidiaries to, comply with all laws, ordinances or
governmental rules or regulations to which each of them is subject, including,
without limitation, ERISA and all Environmental Laws, and will obtain and
maintain in effect all licenses, certificates, permits, franchises and other
governmental authorizations necessary to the ownership of their respective
properties or to

-18-

 

the conduct of their respective businesses, in each case to the extent
necessary to ensure that non-compliance with such laws, ordinances or
governmental rules or regulations or failures to obtain or maintain in effect
such licenses, certificates, permits, franchises and other governmental
authorizations could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.

         Section 9.2. Insurance. The Company will, and will cause each of its
Restricted Subsidiaries to, maintain, with financially sound and reputable
insurers, insurance with respect to their respective properties and businesses
against such casualties and contingencies, of such types, on such terms and in
such amounts (including deductibles, co-insurance and self-insurance, if
adequate reserves are maintained with respect thereto) as is customary in the
case of entities of established reputations engaged in the same or a similar
business and similarly situated.

         Section 9.3. Maintenance of Properties. The Company will, and will cause
each of its Restricted Subsidiaries to, maintain and keep, or cause to be
maintained and kept, their respective properties in good repair, working order
and condition (other than ordinary wear and tear), so that the business carried
on in connection therewith may be properly conducted at all times; provided
that this Section shall not prevent the Company or any Restricted Subsidiary
from discontinuing the operation and the maintenance of any of its properties
if such discontinuance is desirable in the conduct of its business and the
Company has concluded that such discontinuance could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

         Section 9.4. Payment of Taxes and Claims. The Company will, and will
cause each of its Restricted Subsidiaries to, file all tax returns required to
be filed in any jurisdiction and to pay and discharge all taxes shown to be due
and payable on such returns and all other taxes, assessments, governmental
charges, or levies imposed on them or any of their properties, assets, income
or franchises, to the extent such taxes and assessments have become due and
payable and before they have become delinquent and all claim for which sums
have become due and payable that have or might become a Lien on properties or
assets of the Company or any Restricted Subsidiary; provided that neither the
Company nor any Restricted Subsidiary need pay any such tax or assessment or
claims if (a) the amount, applicability or validity thereof is contested by the
Company or such Restricted Subsidiary on a timely basis in good faith and in
appropriate proceedings, and the Company or a Restricted Subsidiary has
established adequate reserves therefor in accordance with GAAP on the books of
the Company or such Restricted Subsidiary or (b) the nonpayment of all such
taxes and assessments in the aggregate could not reasonably be expected to have
a Material Adverse Effect.

         Section 9.5. Corporate Existence, Etc. The Company will at all times
preserve and keep in full force and effect its corporate existence. Subject to
Sections 10.5 and 10.6, the Company will at all times preserve and keep in full
force and effect the corporate existence of each of its Restricted Subsidiaries
(unless merged into the Company or a Restricted Subsidiary) and all rights and
franchises of the Company and its Restricted Subsidiaries unless, in the good
faith judgment of the Company, the termination of or failure to preserve and
keep in full force and

-19-

 

effect such corporate existence, right or franchise could not, individually or
in the aggregate, have a Material Adverse Effect.

         Section 9.6. Nature of Business. Neither the Company nor any Restricted
Subsidiary will engage in any business if, as a result, the general nature of
the business, taken on a consolidated basis, which would then be engaged in by
the Company and its Restricted Subsidiaries would be substantially changed from
the general nature of the business engaged in by the Company and its Restricted
Subsidiaries on the date of this Agreement.

         Section 9.7. Notes to Rank Pari Passu. The Notes and all other
obligations under this Agreement of the Company are and at all times shall rank
at least pari passu in right of payment with all other present and future
unsecured Senior Indebtedness (actual or contingent) of the Company which is
not expressed to be subordinate or junior in rank to any other unsecured Senior
Indebtedness of the Company.

         Section 9.8. Additional Covenants. If, at any time, prior to the payment
in full of the outstanding principal amount of the Notes, together with
interest accrued thereon and Make-Whole Amount, if any: (a) any one or more of
the Company and its Restricted Subsidiaries at any time enters into any credit,
revolving loan, note or other like agreement (the “Other Documentation”) under
which the Company or any of its Restricted Subsidiaries may incur at any time
or from time to time an aggregate amount of Indebtedness outstanding in excess
of $10,000,000 in one or more borrowing transactions and (b) the Other
Documentation relating to such Indebtedness at any time includes a
shareholders’ equity covenant, interest coverage covenant, a fixed charge
coverage covenant, Indebtedness to total capitalization ratio, working capital
ratio, minimum working capital requirement, borrowing base ratio or similarly
based incurrence test or any other substantially similar GAAP or cash-based
financial covenant or any combination of such financial covenants that,
individually or collectively, is or are either more restrictive on the Company
and its Restrictive Subsidiaries than those provide for herein or are not
provided for herein, as the case may be, then and in such event the Company
shall give written notice thereof to each holder of the Notes on the earlier of
the date on which such Other Documentation is to be entered into and the date
on which any such Indebtedness may be incurred thereunder, together with a
true, correct and complete copy of such covenant or financial covenants and all
definitions relating thereto. Effective on the earlier of the date of
execution of such Other Documentation or the incurrence of any Indebtedness
thereunder, such covenant or financial covenants and related definitions
(collectively, the “Incorporated Financial Covenants”) shall then and thereupon
be deemed to have been incorporated herein and any breach or event of default
in respect of any such Incorporated Financial Covenant shall be deemed to be an
Event of Default hereunder subject to all applicable terms and provisions of
this Agreement, including, without limitation, the right of the Required
Holders to waive or not waive any breach thereof (independent of any right of
any other creditor of the Company in respect of any such Incorporated Financial
Covenants). Without limiting the foregoing, any amendment or the termination
of any such Incorporated Financial Covenant in accordance with the terms of the
related Other Documentation shall mutatis mutandis constitute an amendment or
the termination, as the case may be, of such Incorporated Financial Covenant
hereunder, provided that in no event shall any such Incorporated Financial
Covenant or the amendment or termination thereof under the related Other
Documentation modify, amend or otherwise affect

-20-

 

any of the other terms and provisions of this Agreement. If Indebtedness is
incurred under two or more sets of Other Documentation, this Section 9.8 shall
apply to the Incorporated Financial Covenants or combination thereof, that is
or are more restrictive on the Company.

SECTION 10. NEGATIVE COVENANTS.

         The Company covenants that so long as any of the Notes are outstanding:

         Section 10.1. Consolidated Shareholders’ Equity. The Company will not at
any time permit Consolidated Shareholders’ Equity to be in an amount less than
the sum of (a) $250,000,000 plus (b) an aggregate amount equal to 25% of
Consolidated Net Income (but, in each case, only if a positive number) for each
completed fiscal quarter commencing with the fiscal quarter ending March 31,
2002.

         Section 10.2. Fixed Charge Coverage Ratio. The Company and its Restricted
Subsidiaries will not permit as at the end of each fiscal quarter the ratio of
(a) Consolidated EBITDAR for the four immediately preceding fiscal quarters
(taken as a single accounting period) to (b) Consolidated Fixed Charges for
such fiscal period to be less than 2.0 to 1.0; provided that, notwithstanding
the foregoing, for the fiscal four quarter period ending March 31, 2002 and
June 30, 2002 such ratio shall not be less than 1.85 to 1.00.

         Section 10.3. Limitations on Indebtedness. (a) The Company and its
Restricted Subsidiaries will not at any time permit the ratio of (a)
Consolidated Indebtedness to (b) Consolidated Total Capitalization to be
greater than 0.55 to 1.00.

         Section 10.4. Limitations on Priority Indebtedness. The Company will not,
and will not permit any Restricted Subsidiary to, create, issue, assume,
guarantee or otherwise incur or in any manner be or become liable in respect of
any Priority Indebtedness, unless at the time of creation, issuance,
assumption, guarantee or incurrence thereof and after giving effect thereto and
to the application of the proceeds thereof, the aggregate amount of all
Consolidated Priority Indebtedness (including the Priority Indebtedness then to
be created, issued, assumed, guaranteed or otherwise incurred) shall not exceed
20% of Consolidated Shareholders’ Equity.

         Section 10.5. Limitation on Liens. The Company will not, and will not
permit any Restricted Subsidiary to, create or incur, or suffer to be incurred
or to exist, any Lien on its or their property or assets, whether now owned or
hereafter acquired, or upon any income or profits therefrom, or transfer any
property for the purpose of subjecting the same to the payment of obligations
in priority to the payment of its or their general creditors, or acquire or
agree to acquire, or permit any Restricted Subsidiary to acquire, any property
or assets upon conditional sales agreements or other title retention devices,
except:

		
	 	         (a) Liens for taxes and assessments or governmental charges or
levies and Liens securing claims or demands of mechanics and materialmen;
provided that payment thereof is not at the time required by Section 9.4;

-21-

 

		
	 	         (b) Liens of or resulting from any judgment or award, the time for
the appeal or petition for rehearing of which shall not have expired, or
in respect of which the Company or a Restricted Subsidiary shall at any
time in good faith be prosecuting an appeal or proceeding for a review
and in respect of which a stay of execution pending such appeal or
proceeding for review shall have been secured;
	 
	 	         (c) Liens incidental to the conduct of business or the ownership of
properties and assets (including Liens in connection with worker’s
compensation, unemployment insurance and other like laws, warehousemen’s
and attorneys’ liens and statutory landlords’ liens) and Liens to secure
the performance of bids, tenders or trade contracts, or to secure
statutory obligations, surety or appeal bonds or other Liens of like
general nature, in any such case incurred in the ordinary course of
business and not in connection with the borrowing of money; provided in
each case, the obligation secured is not overdue or, if overdue, is being
contested in good faith by appropriate actions or proceedings;
	 
	 	         (d) survey exceptions or minor encumbrances, easements or
reservations, or rights of others for rights-of-way, utilities and other
similar purposes, or zoning or other restrictions as to the use of real
properties, which are necessary for the conduct of the activities of the
Company and its Restricted Subsidiaries or which customarily exist on
properties of corporations engaged in similar activities and similarly
situated and which do not in any event materially impair their use in the
operation of the business of the Company and its Restricted Subsidiaries;
	 
	 	         (e) Liens existing as of the date of the Closing and described on
Schedule 5.15 hereto;
	 
	 	         (f) Liens created or incurred after the date of the Closing given to
secure the payment of the purchase price incurred in connection with the
acquisition or purchase or the cost of construction of property or of
assets useful and intended to be used in carrying on the business of the
Company or a Restricted Subsidiary, including Liens existing on such
property or assets at the time of acquisition thereof or at the time of
completion of construction, as the case may be, whether or not such
existing Liens were given to secure the payment of the acquisition or
purchase price or cost of construction, as the case may be, of the
property or assets to which they attach; provided that (i) the Lien shall
attach solely to the property or assets acquired, purchased or
constructed, (ii) such Lien shall have been created or incurred within
twelve months of the date of acquisition or purchase or completion of
construction, as the case may be, (iii) at the time of acquisition or
purchase or of completion of construction of such property or assets, the
aggregate amount remaining unpaid on all Indebtedness secured by Liens on
such property or assets, whether or not assumed by the Company or a
Restricted Subsidiary, shall not exceed an amount equal to 100% of the
lesser of the total purchase price or fair market value at the time of
acquisition or purchase (as determined in good faith by the Board of
Directors of the Company) or the cost of construction on the date of
completion thereof, and (iv) at the time of creation, issuance,
assumption, guarantee or incurrence of the

-22-

 

		
	 	Indebtedness secured by such Lien and after giving effect thereto and to
the application of the proceeds thereof, no Default or Event of Default
would exist;

		
	 	         (g) any Lien existing on property or assets of a corporation at the
time such corporation is consolidated with or merged into the Company or
a Restricted Subsidiary or its becoming a Restricted Subsidiary, or any
Lien existing on any property or assets acquired by the Company or any
Restricted Subsidiary at the time such property or assets are so acquired
(whether or not the Indebtedness secured thereby shall have been
assumed), provided that (i) each such Lien shall extend solely to the
property or assets so acquired, and (ii) at the time of creation,
issuance, assumption, guarantee or incurrence of the Indebtedness secured
by such Lien and after giving effect thereto and to the application of
the proceeds thereof, no Default or Event of Default would exist;
	 
	 	         (h) Liens created or incurred after the date of the Closing given to
secure Indebtedness of the Company or any Restricted Subsidiary in
addition to the Liens permitted by the preceding clauses (a) through (g)
hereof; provided that (i) all Indebtedness secured by such Liens shall
have been incurred within the limitations provided in Section 10.4 and
(ii) at the time of creation, issuance, assumption, guarantee or
incurrence of the Indebtedness secured by such Lien and after giving
effect thereto and to the application of the proceeds thereof, no Default
or Event of Default would exist; and
	 
	 	         (i) any extension, renewal or refunding of any Lien permitted by the
preceding clauses (e), (f) and (g) of this Section 10.5 in respect of the
same property theretofore subject to such Lien in connection with the
extension, renewal or refunding of the Indebtedness secured thereby;
provided that (i) such extension, renewal or refunding of Indebtedness
shall be without increase in the principal amount remaining unpaid as of
the date of such extension, renewal or refunding, (ii) such Lien shall
attach solely to the same such property, and (iii) at the time of such
extension, renewal or refunding and after giving effect thereto, no
Default or Event of Default would exist.

         Section 10.6. Limitation on Sale and Leasebacks. The Company will not,
and will not permit any Restricted Subsidiary to, enter into any arrangement,
directly or indirectly, whereby the Company or such Restricted Subsidiary shall
in one or more related transactions sell, transfer or otherwise dispose of any
property owned by the Company or such Restricted Subsidiary more than twelve
months after the later of the date of initial acquisition of such property or
completion or occupancy thereof, as the case may be, by the Company or such
Restricted Subsidiary, and then rent or lease, as lessee, such property or any
part thereof (a “Sale and Leaseback Transaction”); provided that the foregoing
restriction shall not apply to any Sale and Leaseback Transaction if
immediately after the consummation of such Sale and Leaseback Transaction and
after giving effect thereto, any of the following conditions is satisfied:

		
	 	         (a) the lease relating to such Sale and Leaseback Transaction is not
a Long-Term Lease; or
	 
	 	         (b) the sale of such property is for cash consideration which (after
deduction of any expenses incurred by the Company or any Restricted
Subsidiary in connection

-23-

 

		
	 	with such Sale and Leaseback Transaction) equals or exceeds the fair
market value of the property so sold (as determined in good faith by the
Board of Directors of the Company if the fair market value of the
property equals or exceeds $5,000,000, and, if less than such amount, as
determined in good faith by a Senior Financial Officer) and the net
proceeds from such sale are applied to either (i) the purchase or
acquisition (and, in the case of real property, the construction) of
fixed assets useful and intended to be used by the Company or a
Restricted Subsidiary in the operation of the business of the Company and
its Restricted Subsidiaries as described in Section 9.6 hereof or (ii)
the prepayment at the applicable prepayment premium, if any, on a pro
rata basis, of Senior Funded Indebtedness of the Company, it being
understood and agreed by the Company that any such prepayment of the
Notes shall be prepaid as and to the extent provided in Section 8.2,
except that (1) any such holder may decline any such offer of prepayment,
(2) the failure of any such holder to accept or decline any such offer of
prepayment shall be deemed an election by such holder to accept such
prepayment, and (3) the proceeds of any such sale not applied to the
prepayment of the Notes by reason of any such holder declining any such
offer of prepayment may be applied by the Company to the prepayment of
Senior Funded Indebtedness of the Company other than the Notes in amounts
and to the holders of such other Senior Funded Indebtedness as the
Company may determine in its sole and absolute discretion; or
	 
	 	         (c) after giving effect to the consummation of such Sale and
Leaseback Transaction and to the application of the proceeds therefrom,
Consolidated Priority Indebtedness (including the Attributable
Indebtedness to be incurred in connection with such Sale and Leaseback
Transaction) shall not exceed 20% of Consolidated Shareholders’ Equity.

         Section 10.7. Mergers, Consolidations and Sales of Assets. The Company
will not, and will not permit any Restricted Subsidiary to, consolidate with or
be a party to a merger with any other Person, or sell, lease or otherwise
dispose of all or substantially all of its assets; provided that:

		
	 	         (a) any Restricted Subsidiary may merge or consolidate with or into
the Company or any Wholly-owned Restricted Subsidiary so long as in (i)
any merger or consolidation involving the Company, the Company shall be
the surviving or continuing corporation and (ii) in any merger or
consolidation involving a Wholly-owned Restricted Subsidiary (and not the
Company), the Wholly-owned Restricted Subsidiary shall be the surviving
or continuing corporation, unless and to the extent any such merger or
consolidation involving a Wholly-Owned Restricted Subsidiary is
consummated within the limitations of Section 10.8(b);
	 
	 	         (b) the Company may consolidate or merge with or into any other
corporation if (i) the corporation which results from such consolidation
or merger (the “surviving corporation”) is organized under the laws of
any state of the United States or the District of Columbia or under the
laws of Canada or any province thereof, (ii) the due and punctual payment
of the principal of and premium, if any, and interest on all of the
Notes, according to their tenor, and the due and punctual performance and
observation of all of

-24-

 

		
	 	the covenants in the Notes and this Agreement to be performed or observed
by the Company are expressly assumed in writing by the surviving
corporation and the surviving corporation shall furnish to the holders of
the Notes an opinion of counsel satisfactory to such holders to the
effect that the instrument of assumption has been duly authorized,
executed and delivered and constitutes the legal, valid and binding
contract and agreement of the surviving corporation enforceable in
accordance with its terms, except as enforcement of such terms may be
limited by bankruptcy, insolvency, reorganization, moratorium and similar
laws affecting the enforcement of creditors’ rights generally and by
general equitable principles, and (iii) at the time of such consolidation
or merger and immediately after giving effect thereto, no Default or
Event of Default would exist;
	 
	 	         (c) the Company may sell or otherwise dispose of all or
substantially all of the assets of the Company and its Restricted
Subsidiaries (other than as provided in Section 10.8) to any Person for
consideration which represents the fair market value of such assets (as
determined in good faith by the Board of Directors of the Company) at the
time of such sale or other disposition if (i) the acquiring Person is a
corporation organized under the laws of any state of the United States or
the District of Columbia or under the laws of Canada or any province
thereof, (ii) the due and punctual payment of the principal of and
premium, if any, and interest on all the Notes, according to their tenor,
and the due and punctual performance and observance of all of the
covenants in the Notes and in this Agreement to be performed or observed
by the Company are expressly assumed in writing by the acquiring
corporation and the acquiring corporation shall furnish to the holders of
the Notes an opinion of counsel satisfactory to such holders to the
effect that the instrument of assumption has been duly authorized,
executed and delivered and constitutes the legal, valid and binding
contract and agreement of such acquiring corporation enforceable in
accordance with its terms, except as enforcement of such terms may be
limited by bankruptcy, insolvency, reorganization, moratorium and similar
laws affecting the enforcement of creditors’ rights generally and by
general equitable principles, and (iii) at the time of such sale or
disposition and immediately after giving effect thereto, no Default or
Event of Default would exist.

         Section 10.8. Sale of Assets. The Company will not, and will not permit
any Restricted Subsidiary to, sell, lease, transfer, abandon or otherwise
dispose of assets (except assets sold in the ordinary course of business for
fair market value and except as the sale of all or substantially all of the
assets of the Company and its Restricted Subsidiaries as provided in Section
10.7(c)); provided that the foregoing restrictions do not apply to:

		
	 	         (a) the sale, lease, transfer or other disposition of assets of a
Restricted Subsidiary to the Company or a Wholly-owned Restricted
Subsidiary; or
	 
	 	         (b) the sale of assets for cash or other property to a Person or
Persons if all of the following conditions are met:

		
	 	         (i) such assets (valued at net book value) do not, together
with all other assets of the Company and its Restricted
Subsidiaries previously disposed of

-25-

 

		
	 	during the immediately preceding twelve calendar month period
(other than in the ordinary course of business), exceed 15% of
Consolidated Total Capitalization, determined as of the end of the
immediately preceding fiscal year;
	 
	 	         (ii) in the opinion of the Company’s Board of Directors, the
sale is for fair value and is in the best interests of the Company;
and
	 
	 	         (iii) immediately after the consummation of the transaction
and after giving effect thereto, no Default or Event of Default
would exist;

		
	 	provided, however, that for purposes of the foregoing calculation, there
shall not be included any assets the proceeds of which were or are
applied within twelve months of the date of sale of such assets to either
(A) the acquisition of assets useful and intended to be used in the
operation of the business of the Company and its Restricted Subsidiaries
as described in Section 9.6 and having a fair market value (as determined
in good faith by the Board of Directors of the Company) at least equal to
that of the assets so disposed of or (B) the prepayment at any applicable
prepayment premium, on a pro rata basis, of Senior Funded Indebtedness of
the Company. It is understood and agreed by the Company that any such
proceeds paid and applied to the prepayment of the Notes as hereinabove
provided shall be prepaid as and to the extent provided in Section 8.2,
except that (A) any such holder may decline any such offer of prepayment,
(B) the failure of any such holder to accept or decline any such offer of
prepayment shall be deemed an election by such holder to accept such
prepayment, and (C) the proceeds of any such sale not applied to the
prepayment of the Notes by reason of any such holder declining any such
offer of prepayment, may be applied by the Company to the prepayment of
Senior Funded Indebtedness of the Company other than the Notes in amounts
and to the holders of such other Senior Funded Indebtedness as the
Company may determine in its sole and absolute discretion.

         Section 10.9. Transactions with Affiliates. The Company will not, and
will not permit any Restricted Subsidiary to, enter into or be a party to any
transaction or arrangement with any Affiliate other than the Company or any
other Restricted Subsidiary, but including, without limitation, the purchase
from, sale to or exchange of property with, or the rendering of any service by
or for, any Affiliate, except in furtherance of the business of the Company and
its Restricted Subsidiaries in a manner consistent with the general nature of
business as described in Section 9.6 and pursuant to the reasonable
requirements of the Company’s or such Restricted Subsidiary’s business and upon
fair and reasonable terms no less favorable to the Company or such Restricted
Subsidiary than would obtain in a comparable arm’s-length transaction with a
Person other than an Affiliate.

         Section 10.10. Designation of Restricted Subsidiaries. The Company may
designate or redesignate any Unrestricted Subsidiary as a Restricted Subsidiary
and may designate or redesignate any Restricted Subsidiary as an Unrestricted
Subsidiary; provided that: (a) the Company shall have given not less than 10
days’ prior written notice to the holders of the Notes that a Senior Financial
Officer has made such determination, (b) at the time of such designation or
redesignation and immediately after giving effect thereto, no Default or Event
of Default

-26-

 

would exist, (c) in the case of the designation of a Restricted Subsidiary as
an Unrestricted Subsidiary and after giving effect thereto, (i) such
Unrestricted Subsidiary so designated shall not, directly or indirectly, own
any Indebtedness or capital stock of the Company or any Restricted Subsidiary
and (ii) such designation shall be deemed a sale of assets and shall be
permitted by the provisions of Section 10.8(b), (d) in the case of the
designation of an Unrestricted Subsidiary as a Restricted Subsidiary and after
giving effect thereto, all existing Liens of such Restricted Subsidiary so
designated shall be permitted within the applicable limitations of Section
10.5, notwithstanding that any such Lien existed as of the date of Closing, (e)
in the case of the designation of a Restricted Subsidiary as an Unrestricted
Subsidiary, such Restricted Subsidiary shall not at any time after the date of
this Agreement have previously been designated as an Unrestricted Subsidiary
more than once, and (f) in the case of the designation of an Unrestricted
Subsidiary as a Restricted Subsidiary, such Unrestricted Subsidiary shall not
at any time after the date of this Agreement have previously been designated as
a Restricted Subsidiary more than once.

SECTION 11. EVENTS OF DEFAULT.

         An “Event of Default” shall exist if any of the following conditions or
events shall occur and be continuing:

		
	 	         (a) the Company defaults in the payment of any principal or
Make-Whole Amount, if any, on any Note when the same becomes due and
payable, whether at maturity or at a date fixed for prepayment or by
declaration or otherwise; or
	 
	 	         (b) the Company defaults in the payment of any interest on any Note
for more than five Business Days after the same becomes due and payable;
or
	 
	 	         (c) the Company defaults in the performance of or compliance with
any term contained herein (other than those referred to in paragraphs (a)
and (b) of this Section 11) and such default is not remedied within 30
days after the earlier of (i) a Responsible Officer obtaining actual
knowledge of such default and (ii) the Company receiving written notice
of such default from any holder of a Note (any such written notice to be
identified as a “notice of default” and to refer specifically to this
paragraph (c) of Section 11); or
	 
	 	         (d) any representation or warranty made in writing by or on behalf
of the Company or by any officer of the Company in this Agreement or in
any writing furnished in connection with the transactions contemplated
hereby proves to have been false or incorrect in any material respect on
the date as of which made; or
	 
	 	         (e) (i) the Company or any Restricted Subsidiary is in default (as
principal or as guarantor or other surety) in the payment of any
principal of or premium or make-whole amount or interest on any
Indebtedness that is outstanding in an aggregate principal amount of at
least $15,000,000 beyond any period of grace provided with respect
thereto, or (ii) the Company or any Restricted Subsidiary is in default
in the performance of or compliance with any term of any evidence of any
Indebtedness in an

-27-

 

		
	 	aggregate outstanding principal amount of at least $15,000,000 or of any
mortgage, indenture or other agreement relating thereto or any other
condition exists, and as a consequence of such default or condition such
Indebtedness has become, or has been declared, due and payable before its
stated maturity or before its regularly scheduled dates of payment, or
(iii) as a consequence of the occurrence or continuation of any event or
condition (other than the passage of time or the right of the holder of
Indebtedness to convert such Indebtedness into equity interests), the
Company or any Restricted Subsidiary has become obligated to purchase or
repay Indebtedness before its regular maturity or before its regularly
scheduled dates of payment in an aggregate outstanding principal amount
of at least $15,000,000; or
	 
	 	         (f) the Company or any Material Restricted Subsidiary (i) is
generally not paying, or admits in writing its inability to pay, its
debts as they become due, (ii) files, or consents by answer or otherwise
to the filing against it of, a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to
take advantage of any bankruptcy, insolvency, reorganization, moratorium
or other similar law of any jurisdiction, (iii) makes an assignment for
the benefit of its creditors, (iv) consents to the appointment of a
custodian, receiver, trustee or other officer with similar powers with
respect to it or with respect to any substantial part of its property,
(v) is adjudicated as insolvent or to be liquidated, or (vi) takes
corporate action for the purpose of any of the foregoing; or
	 
	 	         (g) a court or Governmental Authority of competent jurisdiction
enters an order appointing, without consent by the Company or any of its
Material Restricted Subsidiaries, a custodian, receiver, trustee or other
officer with similar powers with respect to it or with respect to any
substantial part of its property, or constituting an order for relief or
approving a petition for relief or reorganization or any other petition
in bankruptcy or for liquidation or to take advantage of any bankruptcy
or insolvency law of any jurisdiction, or ordering the dissolution,
winding-up or liquidation of the Company or any of its Material
Restricted Subsidiaries, or any such petition shall be filed against the
Company or any of its Material Restricted Subsidiaries and such petition
shall not be dismissed within 60 days; or
	 
	 	         (h) a final judgment or judgments for the payment of money
aggregating in excess of $15,000,000 (excluding for purposes of such
determination such amount of any insurance proceeds paid by or on behalf
of the Company or any of its Restricted Subsidiaries in respect of such
judgment or judgments or unconditionally acknowledged in writing to be
payable by the insurance carrier that issued the related insurance
policy) are rendered against one or more of the Company and its
Restricted Subsidiaries and which judgments are not, within 60 days after
entry thereof, bonded, discharged or stayed pending appeal, or are not
discharged within 60 days after the expiration of such stay; or
	 
	 	         (i) if (i) any Plan shall fail to satisfy the minimum funding
standards of ERISA or the Code for any plan year or part thereof or a
waiver of such standards or extension of any amortization period is
sought or granted under section 412 of the Code, (ii) a notice of intent
to terminate any Plan shall have been or is reasonably expected to

-28-

 

		
	 	be filed with the PBGC or the PBGC shall have instituted proceedings
under ERISA Section 4042 to terminate or appoint a trustee to administer
any Plan or the PBGC shall have notified the Company or any ERISA
Affiliate that a Plan may become a subject of any such proceedings, (iii)
the aggregate “amount of unfunded benefit liabilities” (within the
meaning of Section 4001(a)(18) of ERISA) under all Plans, determined in
accordance with Title IV of ERISA, shall exceed $3,000,000, (iv) the
Company or any ERISA Affiliate shall have incurred or is reasonably
expected to incur any liability pursuant to Title I or IV of ERISA or the
penalty or excise tax provisions of the Code relating to employee benefit
plans, (v) the Company or any ERISA Affiliate withdraws from any
Multiemployer Plan, or (vi) the Company or any Restricted Subsidiary
establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that would increase the
liability of the Company or any Restricted Subsidiary thereunder; and any
such event or events described in clauses (i) through (vi) above, either
individually or together with any other such event or events, could
reasonably be expected to have a Material Adverse Effect.

As used in Section 11(i), the terms “employee benefit plan” and “employee
welfare benefit plan” shall have the respective meanings assigned to such terms
in Section 3 of ERISA.

SECTION 12. REMEDIES ON DEFAULT, ETC.

         Section 12.1. Acceleration. (a) If an Event of Default with respect to
the Company described in paragraph (f) or (g) of Section 11 (other than an
Event of Default described in clause (i) of paragraph (f) or described in
clause (vi) of paragraph (f) by virtue of the fact that such clause encompasses
clause (i) of paragraph (f)) has occurred, all the Notes then outstanding shall
automatically become immediately due and payable.

         (b)  If any other Event of Default has occurred and is continuing, any
holder or holders of more than 60% in principal amount of the Notes at the time
outstanding may at any time at its or their option, by notice or notices to the
Company, declare all the Notes then outstanding to be immediately due and
payable.

         (c)  If any Event of Default described in paragraph (a) or (b) of Section
11 has occurred and is continuing, any holder or holders of Notes at the time
outstanding affected by such Event of Default may at any time, at its or their
option, by notice or notices to the Company, declare all the Notes held by it
or them to be immediately due and payable.

         Upon any Note’s becoming due and payable under this Section 12.1, whether
automatically or by declaration, such Note will forthwith mature and the entire
unpaid principal amount of such Note, plus (i) all accrued and unpaid interest
thereon and (ii) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment,
demand, protest or further notice, all of which are hereby waived. The Company
acknowledges, and the parties hereto agree, that each holder of a Note has the
right to maintain its investment in the Notes free from repayment by the
Company (except as herein specifically provided for), and that the provision
for payment of a Make-Whole Amount by the Company in

-29-

 

the event that the Notes are prepaid or are accelerated as a result of an
Event of Default, is intended to provide compensation for the deprivation of
such right under such circumstances.

         Section 12.2. Other Remedies. If any Default or Event of Default has
occurred and is continuing, and irrespective of whether any Notes have become
or have been declared immediately due and payable under Section 12.1, the
holder of any Note at the time outstanding may proceed to protect and enforce
the rights of such holder by an action at law, suit in equity or other
appropriate proceeding, whether for the specific performance of any agreement
contained herein or in any Note, or for an injunction against a violation of
any of the terms hereof or thereof, or in aid of the exercise of any power
granted hereby or thereby or by law or otherwise.

         Section 12.3. Rescission. At any time after any Notes have been declared
due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of
not less than 60% in principal amount of the Notes then outstanding, by written
notice to the Company, may rescind and annul any such declaration and its
consequences if (a) the Company has paid all overdue interest on the Notes, all
principal of and Make-Whole Amount, if any, on any Notes that are due and
payable and are unpaid other than by reason of such declaration, and all
interest on such overdue principal and Make-Whole Amount, if any, and (to the
extent permitted by applicable law) any overdue interest in respect of the
Notes, at the Default Rate, (b) all Events of Default and Defaults, other than
non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 17, and
(c) no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes. No rescission and annulment under this
Section 12.3 will extend to or affect any subsequent Event of Default or
Default or impair any right consequent thereon.

         Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. No
course of dealing and no delay on the part of any holder of any Note in
exercising any right, power or remedy shall operate as a waiver thereof or
otherwise prejudice such holder’s rights, powers or remedies. No right, power
or remedy conferred by this Agreement or by any Note upon any holder thereof
shall be exclusive of any other right, power or remedy referred to herein or
therein or now or hereafter available at law, in equity, by statute or
otherwise. Without limiting the obligations of the Company under Section 15,
the Company will pay to the holder of each Note on demand such further amount
as shall be sufficient to cover all costs and expenses of such holder incurred
in any enforcement or collection under this Section 12, including, without
limitation, reasonable attorneys’ fees, expenses and disbursements.

SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

         Section 13.1. Registration of Notes. The Company shall keep at its
principal executive office a register for the registration and registration of
transfers of Notes. The name and address of each holder of one or more Notes,
each transfer thereof and the name and address of each transferee of one or
more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered
shall be deemed and treated as the owner and holder thereof for all purposes
hereof, and the Company shall not be affected by any notice or knowledge to the
contrary. The Company shall give to any holder of a

-30-

 

Note that is an Institutional Investor promptly upon request therefor, a
complete and correct copy of the names and addresses of all registered holders
of Notes.

         Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note
at the principal executive office of the Company for registration of transfer
or exchange (and in the case of a surrender for registration of transfer, duly
endorsed or accompanied by a written instrument of transfer duly executed by
the registered holder of such Note or its attorney duly authorized in writing
and accompanied by the address for notices of each transferee of such Note or
part thereof), the Company shall execute and deliver, at the Company’s expense
(except as provided below), one or more new Notes (as requested by the holder
thereof) in exchange therefor, of the same series and in an aggregate principal
amount equal to the unpaid principal amount of the surrendered Note. Each such
new Note shall be payable to such Person as such holder may request and shall
be substantially in the form of Exhibit 1(a), Exhibit 1(b) or Exhibit 1(c), as
applicable. Each such new Note shall be dated and bear interest from the date
to which interest shall have been paid on the surrendered Note or dated the
date of the surrendered Note if no interest shall have been paid thereon. The
Company may require payment of a sum sufficient to cover any stamp tax or
governmental charge imposed in respect of any such transfer of Notes. Notes
shall not be transferred in denominations of less than $1,000,000; provided
that if necessary to enable the registration of transfer by a holder of its
entire holding of Notes, one Note may be in a denomination of less than
$1,000,000. Any transferee, by its acceptance of a Note registered in its name
(or the name of its nominee), shall be deemed to have made the representation
set forth in Section 6.2.

         Section 13.3. Replacement of Notes. Upon receipt by the Company of
evidence reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of any Note (which evidence shall be, in the case of
an Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and

		
	 	         (a) in the case of loss, theft or destruction, of indemnity
reasonably satisfactory to it (provided that if the holder of such Note
is, or is a nominee for, an original Purchaser or another holder of a
Note with a minimum net worth of at least $25,000,000, such Person’s own
unsecured agreement of indemnity shall be deemed to be satisfactory), or
	 
	 	         (b) in the case of mutilation, upon surrender and cancellation
thereof,
	 
	the Company at its own expense shall execute and deliver, in lieu thereof, a
new Note of the same series, dated and bearing interest from the date to which
interest shall have been paid on such lost, stolen, destroyed or mutilated Note
or dated the date of such lost, stolen, destroyed or mutilated Note if no
interest shall have been paid thereon.

SECTION 14. PAYMENTS ON NOTES.

         Section 14.1. Place of Payment. Subject to Section 14.2, payments of
principal, Make-Whole Amount, if any, and interest becoming due and payable on
the Notes shall be made in New York, New York at the principal office of the
Company in such jurisdiction. The Company

-31-

 

may at any time, by notice to each holder of a Note, change the place of
payment of the Notes so long as such place of payment shall be either the
principal office of the Company in such jurisdiction or the principal office of
a bank or trust company in such jurisdiction.

         Section 14.2. Home Office Payment. So long as you or your nominee shall
be the holder of any Note, and notwithstanding anything contained in Section
14.1 or in such Note to the contrary, the Company will pay all sums becoming
due on such Note for principal, Make-Whole Amount, if any, and interest by the
method and at the address specified for such purpose below your name in
Schedule A, or by such other method or at such other address as you shall have
from time to time specified to the Company in writing for such purpose, without
the presentation or surrender of such Note or the making of any notation
thereon, except that upon written request of the Company made concurrently with
or reasonably promptly after payment or prepayment in full of any Note, you
shall surrender such Note for cancellation, reasonably promptly after any such
request, to the Company at its principal executive office or at the place of
payment most recently designated by the Company pursuant to Section 14.1.
Prior to any sale or other disposition of any Note held by you or your nominee
you will, at your election, either endorse thereon the amount of principal paid
thereon and the last date to which interest has been paid thereon or surrender
such Note to the Company in exchange for a new Note or Notes of the same series
pursuant to Section 13.2. The Company will afford the benefits of this Section
14.2 to any Institutional Investor that is the direct or indirect transferee of
any Note purchased by you under this Agreement and that has made the same
agreement relating to such Note as you have made in this Section 14.2.

SECTION 15. EXPENSES, ETC.

         Section 15.1. Transaction Expenses. Whether or not the transactions
contemplated hereby are consummated, the Company will pay all costs and
expenses (including reasonable attorneys’ fees of a special counsel) incurred
by you and each Other Purchaser or holder of a Note in connection with such
transactions and in connection with any amendments, waivers or consents under
or in respect of this Agreement or the Notes (whether or not such amendment,
waiver or consent becomes effective), including, without limitation: (a) the
costs and expenses incurred in enforcing or defending (or determining whether
or how to enforce or defend) any rights under this Agreement or the Notes or in
responding to any subpoena or other legal process or informal investigative
demand issued in connection with this Agreement or the Notes, or by reason of
being a holder of any Note, and (b) the costs and expenses, including financial
advisors’ fees, incurred in connection with the insolvency or bankruptcy of the
Company or any Restricted Subsidiary or in connection with any work-out or
restructuring of the transactions contemplated hereby and by the Notes. The
Company will pay, and will save you and each other holder of a Note harmless
from, all claims in respect of any fees, costs or expenses, if any, of brokers
and finders (other than those retained by you).

         Section 15.2. Survival. The obligations of the Company under this Section
15 will survive the payment or transfer of any Note, the enforcement, amendment
or waiver of any provision of this Agreement or the Notes, and the termination
of this Agreement.

-32-

 

SECTION 16.  SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

         All representations and warranties contained herein shall survive the
execution and delivery of this Agreement and the Notes, the purchase or
transfer by you of any Note or portion thereof or interest therein and the
payment of any Note, and may be relied upon by any subsequent holder of a Note,
regardless of any investigation made at any time by or on behalf of you or any
other holder of a Note. All statements contained in any certificate or other
instrument delivered by or on behalf of the Company pursuant to this Agreement
shall be deemed representations and warranties of the Company under this
Agreement. Subject to the preceding sentence, this Agreement and the Notes
embody the entire agreement and understanding between you and the Company and
supersede all prior agreements and understandings relating to the subject
matter hereof.

SECTION 17.  AMENDMENT AND WAIVER.

         Section 17.1.  Requirements.  This Agreement and the Notes may be amended,
and the observance of any term hereof or of the Notes may be waived (either
retroactively or prospectively), with (and only with) the written consent of
the Company and the Required Holders, except that (a) no amendment or waiver of
any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined
term (as it is used therein), will be effective as to you unless consented to
by you in writing, and (b) no such amendment or waiver may, without the written
consent of the holder of each Note at the time outstanding affected thereby,
(i) subject to the provisions of Section 12 relating to acceleration or
rescission, change the amount or time of any prepayment or payment of principal
of, or reduce the rate or change the time of payment or method of computation
of interest or of the Make-Whole Amount on, the Notes, (ii) change the
percentage of the principal amount of the Notes the holders of which are
required to consent to any such amendment or waiver, or (iii) amend any of
Section 8, 11(a), 11(b), 12, 17 or 20.

         Section 17.2.  Solicitation of Holders of Notes.

         (a)  Solicitation.  The Company will provide each holder of the Notes
(irrespective of the amount of Notes then owned by it) with sufficient
information, sufficiently far in advance of the date a decision is required, to
enable such holder to make an informed and considered decision with respect to
any proposed amendment, waiver or consent in respect of any of the provisions
hereof or of the Notes. The Company will deliver executed or true and correct
copies of each amendment, waiver or consent effected pursuant to the provisions
of this Section 17 to each holder of outstanding Notes promptly following the
date on which it is executed and delivered by, or receives the consent or
approval of, the requisite holders of Notes.

         (b)  Payment.  The Company will not directly or indirectly pay or cause to
be paid any remuneration, whether by way of supplemental or additional
interest, fee or otherwise, or grant any security, to any holder of Notes as
consideration for or as an inducement to the entering into by any holder of
Notes of any waiver or amendment of any of the terms and provisions hereof
unless such remuneration is concurrently paid, or security is concurrently
granted, on the same terms, ratably to each holder of Notes then outstanding
even if such holder did not consent to such waiver or amendment.

-33-

 

         Section 17.3.  Binding Effect, Etc. Any amendment or waiver consented to
as provided in this Section 17 applies equally to all holders of each series of
Notes and is binding upon them and upon each future holder of any Note of any
series and upon the Company without regard to whether such Note has been marked
to indicate such amendment or waiver. No such amendment or waiver will extend
to or affect any obligation, covenant, agreement, Default or Event of Default
not expressly amended or waived or impair any right consequent thereon. No
course of dealing between the Company and the holder of any Note of any series
nor any delay in exercising any rights hereunder or under any Note of any
series shall operate as a waiver of any rights of any holder of such Note. As
used herein, the term “this Agreement” and references thereto shall mean this
Agreement as it may from time to time be amended or supplemented.

         Section 17.4.  Notes Held by Company, Etc. Solely for the purpose of
determining whether the holders of the requisite percentage of the aggregate
principal amount of Notes then outstanding approved or consented to any
amendment, waiver or consent to be given under this Agreement or the Notes, or
have directed the taking of any action provided herein or in the Notes to be
taken upon the direction of the holders of a specified percentage of the
aggregate principal amount of Notes then outstanding, Notes of any series
directly or indirectly owned by the Company or any of its Affiliates shall be
deemed not to be outstanding.

SECTION 18.  NOTICES.

         All notices and communications provided for hereunder shall be in writing
and sent (a) by telefacsimile if the sender on the same day sends a confirming
copy of such notice by a recognized overnight delivery service (charges
prepaid), or (b) by registered or certified mail
with return receipt requested (postage prepaid), or (c) by a recognized
overnight delivery service (with charges prepaid). Any such notice must be
sent:

		
	 	         (i)  if to you or your nominee, to you or it at the address specified
for such communications in Schedule A, or at such other address as you or
it shall have specified to the Company in writing,

		
	 	         (ii)  if to any other holder of any Note, to such holder at such
address as such other holder shall have specified to the Company in
writing, or

		
	 	         (iii)  if to the Company, to the Company at its address set forth at
the beginning hereof to the attention of Chief Financial Officer, or at
such other address as the Company shall have specified to the holder of
each Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

SECTION 19.  REPRODUCTION OF DOCUMENTS.

         This Agreement and all documents relating thereto, including, without
limitation, (a) consents, waivers and modifications that may hereafter be
executed, (b) documents received by you at the Closing (except the Notes
themselves), and (c) financial statements, certificates and other information
previously or hereafter furnished to you, may be reproduced by you by any

-34-

 

photographic, photostatic, microfilm, microcard, miniature photographic or
other similar process and you may destroy any original document so reproduced.
The Company agrees and stipulates that, to the extent permitted by applicable
law, any such reproduction shall be admissible in evidence as the original
itself in any judicial or administrative proceeding (whether or not the
original is in existence and whether or not such reproduction was made by you
in the regular course of business) and any enlargement, facsimile or further
reproduction of such reproduction shall likewise be admissible in evidence.
This Section 19 shall not prohibit the Company or any other holder of Notes
from contesting any such reproduction to the same extent that it could contest
the original, or from introducing evidence to demonstrate the inaccuracy of any
such reproduction.

SECTION 20.  CONFIDENTIAL INFORMATION.

         For the purposes of this Section 20, “Confidential Information” means
information delivered to you by or on behalf of the Company or any Restricted
Subsidiary in connection with the transactions contemplated by or otherwise
pursuant to this Agreement that is proprietary in nature and that was clearly
marked or labeled or otherwise adequately identified when received by you as
being confidential information of the Company or such Restricted Subsidiary;
provided that such term does not include information that (a) was publicly
known or otherwise known to you prior to the time of such disclosure, (b)
subsequently becomes publicly known through no act or omission by you or any
Person acting on your behalf, (c) otherwise becomes known to you other than
through disclosure by the Company or any Restricted Subsidiary or
(d) constitutes financial statements delivered to you under Section 7.1
that are otherwise publicly available. You will maintain the confidentiality
of such Confidential Information in accordance with procedures adopted by you
in good faith to protect confidential information of third parties delivered to
you; provided that you may deliver or disclose Confidential Information to (i)
your directors, trustees, officers, employees, agents, attorneys and affiliates
(to the extent such disclosure reasonably relates to the administration of the
investment represented by your Notes), (ii) your financial advisors and other
professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this Section 20,
(iii) any other holder of any Note, (iv) any Institutional Investor to which
you sell or offer to sell such Note or any part thereof or any participation
therein (if such Person has agreed in writing prior to its receipt of such
Confidential Information to be bound by the provisions of this Section 20), (v)
any Person from which you offer to purchase any security of the Company (if
such Person has agreed in writing prior to its receipt of such Confidential
Information to be bound by the provisions of this Section 20), (vi) any federal
or state regulatory authority having jurisdiction over you, (vii) the National
Association of Insurance Commissioners or any similar organization, or any
nationally recognized rating agency that requires access to information about
your investment portfolio or (viii) any other Person to which such delivery or
disclosure may be necessary or appropriate (w) to effect compliance with any
law, rule, regulation or order applicable to you, (x) in response to any
subpoena or other legal process, (y) in connection with any litigation to which
you are a party or (z) if an Event of Default has occurred and is continuing,
to the extent you may reasonably determine such delivery and disclosure to be
necessary or appropriate in the enforcement or for the protection of the rights
and remedies under your Notes and this Agreement. Each holder of a Note, by
its acceptance of a Note, will be deemed to have agreed to be bound by and to
be entitled to the benefits of this Section 20 as

-35-

 

though it were a party to
this Agreement. On reasonable request by the Company in connection with the
delivery to any holder of a Note of information required to be delivered to
such holder under this Agreement or requested by such holder (other than a
holder that is a party to this Agreement or its nominee), such holder will
enter into an agreement with the Company embodying the provisions of this
Section 20.

SECTION 21.  SUBSTITUTION OF PURCHASER.

         You shall have the right to substitute any one of your Affiliates as the
purchaser of the Notes that you have agreed to purchase hereunder, by written
notice to the Company, which notice shall be signed by both you and such
Affiliate, shall contain such Affiliate’s agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy
with respect to it of the representations set forth in Section 6. Upon receipt
of such notice, wherever the word “you” is used in this Agreement (other than
in this Section 21), such word shall be deemed to refer to such Affiliate in
lieu of you. In the event that such Affiliate is so substituted as a purchaser
hereunder and such Affiliate thereafter transfers to you all of the Notes then
held by such Affiliate, upon receipt by the Company of notice of such transfer,
wherever the word “you” is used in this Agreement (other than in this Section
21), such word shall no longer be deemed to refer to such Affiliate, but shall
refer to you, and you shall have all the rights of an original holder of the
Notes under this Agreement.

SECTION 22.  MISCELLANEOUS.

         Section 22.1.  Successors and Assigns.  All covenants and other agreements
contained in this Agreement by or on behalf of any of the parties hereto bind
and inure to the benefit of their respective successors and assigns (including,
without limitation, any subsequent holder of a Note) whether so expressed or
not.

         Section 22.2.  Payments Due on Non-Business Days.  Anything in this
Agreement or the Notes to the contrary notwithstanding, any payment of
principal of or Make-Whole Amount or interest on any Note that is due on a date
other than a Business Day shall be made on the next succeeding Business Day
without including the additional days elapsed in the computation of the
interest payable on such next succeeding Business Day.

         Section 22.3.  Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other
jurisdiction.

         Section 22.4.  Construction.  Each covenant contained herein shall be
construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to
action to be taken by any Person, or which such Person is prohibited from
taking, such provision shall be applicable whether such action is taken
directly or indirectly by such Person.

-36-

 

         Section 22.5.  Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be an original but all of which together
shall constitute one instrument. Each counterpart may consist of a number of
copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.

         Section 22.6.  Governing Law.  This Agreement shall be construed and
enforced in accordance with, and the rights of the parties shall be governed
by, the law of the State of New York, excluding choice-of-law principles of the
law of such State that would require the application of the laws of a
jurisdiction other than such State.

-37-

 

         If you are in agreement with the foregoing, please sign the form of
agreement on the accompanying counterpart of this Agreement and return it to
the Company, whereupon the foregoing shall become a binding agreement between
you and the Company.

	 	 	 	 	 
	 	 	Very truly yours,
	
	
	
	

	
	
	
	

	
	
	
	

	
	
	
	

	 	 	BOWNE & CO., INC,
	
	
	
	

	 	 	
 	 	 
	
	
	
	

	 	 	
By	 	/s/ C. Cody Colquitt	 
	 	 	 	 	

	 	 	 	 	[Title] Chief
Financial Officer
	
	
	
	

	 	 	
 	 	 
	
	
	
	

	Accepted as of
February 5, 2002.	 	 	 	 
	
	
	
	

	 	 	[VARIATION]
	
	
	
	

	 	 	
 	 	 
	
	
	
	

	 	 	
By	 	 
	 	 	 	 	

	 	 	 	 	Its

-38-

 

INFORMATION RELATING TO PURCHASERS

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	AMCO INSURANCE COMPANY

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Corporate Fixed-Income Securities	 	
Series B
	 	$	1,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.31% Senior Notes, Series B due 2012, PPN 103043 B* 5,
principal, premium or interest”) to:

	 	 	 	The Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Amoco Insurance Company

Attention: P & I Department

PPN #103043 B* 5

Security Description: __________________

Notices

All notices of payment on or in respect to the security should be sent to:

	 	 	 	AMCO Insurance Company

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P & I Department
	 
	 	 	 	With a copy to:
	 
	 	 	 	AMCO Insurance Company

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting

All notices and communications other than those in respect to payments to be
addressed as first provided above.

Name of Nominee in which Notes are to be issued:   None

Taxpayer I.D. #42-6054959

SCHEDULE A

(to Note Purchase Agreement)

 

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	CANADA LIFE INSURANCE COMPANY OF AMERICA

c/o Canada Life Assurance Company

330 University Avenue (SP-11)

Toronto, Ontario, Canada M5G 1R8

Attention: Paul English, US Investments Division	 	
Series A
	 	$	5,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 6.90% Senior, Series A, due 2007, PPN 103043 A# 2,
principal, premium or interest”) to:

	 	 	 	Chase Manhattan Bank

ABA #021-000-021

A/c #900-9-000200

Trust Account No. G52709

	 
	 	 	 	Reference: CUSIP, Name of Issuer & description, and Principal and
Interest payment

Payment Instructions (by mail):

	 	 	 	J. Romeo & Co.

c/o CHASE MANHATTAN BANK

P.O. Box 35308

Newark, New Jersey 07101-8006

Attn: Funds Clearance
	 
	 	 	 	Reference: CUSIP, Name of Issuer & description, and Principal and
Interest payment

Notices

All notices and communications (including financial statements) to be addressed
as first provided above, except notices with respect to payments and written
confirmation of each such payment, to be addressed:

	 	 	 	Chase Manhattan Bank

North America Insurance

3 Chase MetroTech Centre — 6th Floor

Brooklyn, New York 11245

Attention: Ms. Doll Balbadar

A-2

 

with a copy to:

	 	 	 	The Canada Life Assurance Company

330 University Avenue, SP-12

Toronto, Ontario, Canada M5G 1R8

Attention: Securities Accounting

Name of Nominee in which Notes are to be issued: J. Romeo & Co.

Taxpayer I.D. Number: 38-2816473

A-3

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	CANADA LIFE ASSURANCE COMPANY

c/o Canada Life Assurance Company

330 University Avenue (SP-11)

Toronto, Ontario, Canada M5G 1R8

Attention: Paul English, US Investments Division	 	
Series A
	 	$	5,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 6.90% Senior, Series A, due 2007, PPN 103043 A# 2,
principal, premium or interest”) to:

	 	 	 	Chase Manhattan Bank

ABA #021-000-021

A/c #900-9-000200

Trust Account No. G52708
	 
	 	 	 	Reference: CUSIP, Name of Issuer & description, and Principal and
Interest payment

Payment Instructions (by mail):

	 	 	 	J. Romeo & Co.

c/o CHASE MANHATTAN BANK

P.O. Box 35308

Newark, New Jersey 07101-8006

Attn: Funds Clearance/ A/C # G 52708
	 
	 	 	 	Reference: CUSIP, Name of Issuer & description, and Principal and
Interest payment

Notices

All notices and communications (including financial statements) to be addressed
as first provided above, except notices with respect to payments and written
confirmation of each such payment, to be addressed:

	 	 	 	Chase Manhattan Bank

North America Insurance

3 Chase MetroTech Centre — 6th Floor

Brooklyn, New York 11245

Attention: Ms. Doll Balbadar

A-4

 

with a copy to:

	 	 	 	The Canada Life Assurance Company

330 University Avenue, SP-12

Toronto, Ontario, Canada M5G 1R8

Attention: Securities Accounting

Name of Nominee in which Notes are to be issued: J. Romeo & Co.

Taxpayer I.D. Number: 38-0397420

A-5

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	GE LIFE AND ANNUITY ASSURANCE COMPANY

c/o GE Financial Assurance

Account: GE Life and Annuity Assurance Company

Two Union Square, 601 Union Street

Seattle, Washington 98101

Attention: Investment Dept., Private Placements

Phone Number: (206) 516-4954

Fax Number: (206) 516-4578	 	
Series A
	 	$	5,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 6.90% Senior, Series A, due 2007, PPN 103043 A# 2,
principal, premium or interest”) to:

	 	 	 	Bankers Trust Company

14 Wall Street

New York, New York 10005

SWIFT Code: BKTR US 33

ABA #021001033

Account Number 99-911-145

FCC #097828

Ref: security description, coupon, maturity, PPN #, identify principal
or interest

Notices

All notices with respect to payments and written confirmation of each such
payment, to be addressed as follows:

	 	 	 	GE Financial Assurance

Account: GE Life and Annuity Assurance Company

Two Union Square, 601 Union Street

Seattle, Washington 98101

Attention: Investment Accounting

Phone Number: (206) 516-4649

Fax Number: (206) 516-4740

All other notices and communications (including original note agreement,
conformed copy of the note agreement, amendment requests, financial statements)
to be addressed as first provided above.

Name of Nominee in which Notes are to be issued: SALKELD & CO.

Taxpayer I.D. Number: 54-0283385

A-6

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	GENERAL ELECTRIC CAPITAL ASSURANCE COMPANY

c/o GE Financial Assurance

Account: General Electric Capital Assurance
Company

Two Union Square, 601 Union Street

Seattle, Washington 98101

Attention: Investment Dept., Private Placements

Phone Number: (206) 516-4954

Fax Number: (206) 516-4578	 	
Series A
	 	$	10,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 6.90% Senior, Series A, due 2007, PPN 103043 A# 2,
principal, premium or interest”) to:

	 	 	 	Bankers Trust Company

14 Wall Street

New York, New York 10005

SWIFT Code: BKTR US 33

ABA #021001033

Account Number 99-911-145

FCC #097833

Ref: security description, coupon, maturity, PPN #, identify principal
or interest

Notices

All notices with respect to payments and written confirmation of each such
payment, to be addressed as follows:

	 	 	 	GE Financial Assurance

Account: General Electric Capital Assurance Company

Two Union Square, 601 Union Street

Seattle, Washington 98101

Attention: Investment Accounting

Phone Number: (206) 516-4649

Fax Number: (206) 516-4740

All other notices and communications (including original note agreement,
conformed copy of the note agreement, amendment requests, financial statements)
to be addressed as first provided above.

Name of Nominee in which Notes are to be issued: SALKELD & CO.

Taxpayer I.D. Number: 91-6027719

A-7

 

	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	MODERN WOODMEN OF AMERICA

1701 First Avenue

Rock Island, Illinois 61201

Attention: Investment Department	 	
Series B

Series C
	 	$3,000,000

$3,000,000

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.31% Senior Notes, Series B due 2012, PPN 103043 B* 5,
principal, premium or interest” or “Bowne & Co., Inc., 7.85% Senior Notes,
Series C due 2012, PPN 103043 B@ 3, principal, premium or interest”) to:

	 	 	 	The Northern Trust Company

50 South LaSalle Street

Chicago, Illinois 60675

ABA #071-000-152

Account Name: Modern Woodmen of America

Account No. 84352

Notices

All notices and communications to be addressed as first provided above, except
notices with respect to payments and written confirmation of each such payment,
to be addressed Attention: Investment Accounting Department

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 36-1493430

A-8

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	NATIONWIDE INDEMNITY COMPANY

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Corporate Fixed-Income Securities	 	
Series B
	 	$	3,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.31% Senior Notes, Series B due 2012, PPN 103043 B* 5
principal, premium or interest”) to:

	 	 	 	The Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Nationwide Indemnity Company

Attention: P & I Department

PPN #103043 B* 5

Security Description: ____________________

Notices

All notices of payment on or in respect to the security should be sent to:

	 	 	 	Nationwide Indemnity Company

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P & I Department
	 
	 	 	 	With a copy to:
	 
	 	 	 	Nationwide Indemnity Company

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting

All notices and communications other than those in respect to payments to be
addressed as first provided above.

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 31-1399201

A-9

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Corporate Fixed-Income Securities	 	
Series B
	 	$	3,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.31% Senior Notes, Series B due 2012, PPN 103043 B* 5,
principal, premium or interest”) to:

	 	 	 	The Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Nationwide Life and Annuity Insurance Company

Attention: P & I Department

PPN #103043 B* 5

Security Description: _______________________

Notices

All notices of payment on or in respect to the security should be sent to:

	 	 	 	Nationwide Life and Annuity Insurance Company

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P & I Department
	 
	 	 	 	With a copy to:
	 
	 	 	 	Nationwide Life and Annuity Insurance Company

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting

All notices and communications other than those in respect to payments to be
addressed as first provided above.

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 31-1000740

A-10

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	NATIONWIDE LIFE INSURANCE COMPANY

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Corporate Fixed-Income Securities	 	
Series B
	 	$	6,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.31% Senior Notes, Series B due 2012, PPN 103043 B* 5,
principal, premium or interest”) to:

	 	 	 	The Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Nationwide Life Insurance Company

Attention: P & I Department

PPN #103043 B* 5

Security Description: _____________________

Notices

All notices of payment on or in respect to the securities should be sent to:

	 	 	 	Nationwide Life Insurance Company

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P & I Department
	 
	 	 	 	With a copy to:
	 
	 	 	 	Nationwide Life Insurance Company

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting

All notices and communications other than those in respect to payments to be
addressed as first provided above.

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 31-4156830

A-11

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	NATIONWIDE MUTUAL FIRE INSURANCE COMPANY

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Investments	 	
Series B
	 	$	4,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.31% Senior Notes, Series B due 2012, PPN 103043 B* 5,
principal, premium or interest”) to:

	 	 	 	The Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Nationwide Mutual Fire Insurance Company

Attention: P & I Department

PPN #103043 B* 5

Security Description: _____________________

Notices

All notices of payment on or in respect to the security should be sent to:

	 	 	 	Nationwide Mutual Fire Insurance Company

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P & I Department
	 
	 	 	 	With a copy to:
	 
	 	 	 	Nationwide Mutual Fire Insurance Company

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting

All notices and communications other than those in respect to payments to be
addressed as first provided above.

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 31-4177110

A-12

 

	 	 	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	NATIONWIDE MUTUAL INSURANCE COMPANY

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Investments	 	
Series B
	 	$	7,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.31% Senior Notes, Series B due 2012, PPN 103043 B* 5,
principal, premium or interest”) to:

	 	 	 	The Bank of New York

ABA #021-000-018

BNF: IOC566

F/A/O Nationwide Mutual Insurance Company

Attention: P & I Department

PPN #103043 B* 5

Security Description: ____________________

Notices

All notices of payment on or in respect to the security should be sent to:

	 	 	 	Nationwide Mutual Insurance Company

c/o The Bank of New York

P. O. Box 19266

Newark, New Jersey 07195

Attention: P & I Department
	 
	 	 	 	With a copy to:
	 
	 	 	 	Nationwide Mutual Insurance Company

One Nationwide Plaza (1-32-05)

Columbus, Ohio 43215-2220

Attention: Investment Accounting

All notices and communications other than those in respect to payments to be
addressed as first provided above.

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 31-4177100

A-13

 

	 	 	 	 	 
	 	 	SERIES OF	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	PACIFIC LIFE INSURANCE COMPANY

700 Newport Center Drive

Newport Beach, California 92660-6397

Attention: Securities Department

Telefacsimile: (949) 219-5406	 	
Series C

Series C

Series C

Series C

Series C

Series C

Series C

Series C

Series C

Series C

Series C
	 	$5,000,000

$5,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

$1,000,000

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.85% Senior Notes, Series C, due 2012, PPN 103043 B@ 3,
principal, premium or interest”) to:

	 	 	 	For Payment of Principal & Interest:

Federal Reserve Bank of Boston

ABA #0110-0123-4/BOS SAFE DEP

DDA 125261

Attention: MBS Income CC: 1253

A/C Name: Pacific Life General Account/PLCF 1810132

Regarding: Security Description & PPN

Notices

All notices of payments and written confirmations of such wire transfers to:

	 	 	 	Mellon Trust

Attention: Pacific Life Accounting Team

One Mellon Bank Center-Room 0930

Pittsburgh, PA 15258-0001

Fax#: 412-236-7529
	 
	 	 	 	and
	 
	 	 	 	Pacific Life Insurance Company

Attn: Securities Administration – Cash Team

700 Newport Center Drive

Newport Beach, CA 92660-6397

Fax#: 949-640-4013

A-14

 

All other communications shall be addressed as first provided above.

Name of Nominee in which Notes are to be issued: Mac & Co.

General Taxpayer I.D. Number: 95-1079000

A-15

 

	 	 	 	 	 	 	 
	 	 	 	 	PRINCIPAL AMOUNT OF
	NAME AND ADDRESS OF PURCHASER	 	SERIES OF NOTES	 	NOTES TO BE PURCHASED
	
	
	
	

	
	
	
	

	Scottsdale Insurance Company

One Nationwide Plaza (1-33-07)

Columbus, Ohio 43215-2220

Attention: Corporate Fixed-Income Securities	 	
Series B
	 	$	1,000,000	 

Payments

All payments on or in respect of the Notes to be by bank wire transfer of
Federal or other immediately available funds (identifying each payment as
“Bowne & Co., Inc., 7.31% Senior Notes, Series B due 2012, PPN 103043 B* 5,
principal, premium or interest”) to:

              The Bank of New York

              ABA #021-000-018

              BNF: IOC566

              F/A/O Scottsdale Insurance Company

              Attention: P & I Department

              PPN #103043 B* 5

              Security Description:_____________________

Notices

All notices of payment on or in respect of the security should be sent to:

              Scottsdale Insurance Company

              c/o The Bank of New York

              P. O. Box 19266

              Newark, New Jersey 07195

              Attention: P & I Department

              With a copy to:

              Scottsdale Insurance Company

              One Nationwide Plaza (1-32-05)

              Columbus, Ohio 43215-2220

              Attention: Investment Accounting

All notices and communications other than those in respect to payments to be
addressed as first provided above.

Name of Nominee in which Notes are to be issued: None

Taxpayer I.D. Number: 31-1024978

A-16

 

Defined Terms

         As used herein, the following terms have the respective meanings set forth
below or set forth in the Section hereof following such term:

         “Affiliate” means, at any time, and with respect to any Person, (a) any
other Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, and (b) any Person beneficially owning or holding, directly
or indirectly, 10% or more of any class of voting or equity interests of the
Company or any Subsidiary or any corporation of which the Company and its
Subsidiaries beneficially own or hold, in the aggregate, directly or
indirectly, 10% or more of any class of voting or equity interests. As used in
this definition, “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. Unless the context otherwise clearly requires, any reference to an
“Affiliate” is a reference to an Affiliate of the Company.

         “Attributable Indebtedness” means in connection with any Sale and
Leaseback Transaction entered into within the limitations of Section 10.6(c),
as of the date of any determination thereof, the lesser of (a) the fair market
value of the property or assets which is or are the subject of such Sale and
Leaseback Transaction (as reasonably determined in good faith by the Board of
Directors of the Company at or about the time of the consummation of such Sale
and Leaseback Transaction) and (b) the aggregate amount of Rentals due and to
become due (discounted from the respective due dates thereof at the rate of 10%
per annum compounded semiannually and otherwise in accordance with GAAP) under
the lease relating to such Sale and Leaseback Transaction.

         “Business Day” means any day other than a Saturday, a Sunday or a day on
which commercial banks in New York, New York, are required or authorized to be
closed.

         “Capital Lease” means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and
the incurrence of a liability in accordance with GAAP.

         “Closing” is defined in Section 3.

         “Code” means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time.

         “Company”
means Bowne & Co., Inc., a Delaware corporation.

         “Confidential Information” is defined in Section 20.

         “Consolidated EBITDAR” for any period means the sum of (a) Consolidated
Net Income of the Company and its Restricted Subsidiaries from continuing
operations and before

SCHEDULE B

(to Note Purchase Agreement)

 

 

extraordinary items, plus (to the extent included in determining
Consolidated Net Income), (b) all provisions for federal, state and local
income taxes for the Company and its Restricted Subsidiaries during such
period, (c) all provisions for depreciation and amortization (other than
amortization of debt discount) made by the Company and its Restricted
Subsidiaries during such period, and (d) Consolidated Fixed Charges during such
period.

         “Consolidated Fixed Charges” for any period means on a consolidated basis
the sum of (a) all Rentals (other than Rentals on Capital Leases) payable
during such period by the Company and its Restricted Subsidiaries, and (b) all
Interest Expense of the Company and its Restricted Subsidiaries on all
Consolidated Indebtedness payable during such period.

         “Consolidated Indebtedness” means all Indebtedness of the Company and its
Restricted Subsidiaries, determined on a consolidated basis eliminating
intercompany items.

         “Consolidated Net Income” means, with reference to any period, the net
income (or loss) of the Company and its Restricted Subsidiaries for such
period, as determined in accordance with GAAP, after eliminating all offsetting
debits and credits between the Company and its Restricted Subsidiaries and all
other items required to be eliminated in the course of the preparation of
consolidated financial statements of the Company and its Restricted
Subsidiaries in accordance with GAAP.

         “Consolidated Priority Indebtedness” means all Priority Indebtedness of
the Company and its Restricted Subsidiaries determined on a consolidated basis
eliminating inter-company items.

         “Consolidated Shareholders’ Equity” means, as of the date of any
determination thereof the amount of the capital stock accounts (net of treasury
stock, at cost, but including paid-in capital) plus (or minus in the case of a
deficit) the surplus in retained earnings of the Company and its Restricted
Subsidiaries as determined in accordance with GAAP.

         “Consolidated Total Capitalization” means as of the date of any
determination thereof, the sum of (a) Consolidated Indebtedness plus (b)
Consolidated Shareholders’ Equity.

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

         “Default Rate” means that rate of interest that is the greater of (i) 1%
per annum above the rate of interest stated in clause (a) of the first
paragraph of the Notes or (ii) 1% over the rate of interest publicly announced
by J.P. Morgan Chase in New York, New York as its “base” or “prime” rate.

         “Environmental Laws” means any and all Federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the
protection of the environment or the release of any materials into the
environment, including but

B-2

 

not limited to those related to hazardous substances
or wastes, air emissions and discharges to waste or public systems.

         “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the rules and regulations promulgated thereunder
from time to time in effect.

         “ERISA Affiliate” means any trade or business (whether or not
incorporated) that is treated as a single employer together with the Company
under Section 414(b) or (c) of the Code.

         “Event of Default” is defined in Section 11.

         “Exchange Act” means the Securities Exchange Act of 1934, as amended.

         “GAAP” means generally accepted accounting principles as in effect from
time to time in the United States of America.

         “Governmental Authority” means

		
	 	         (a) the government of

		
	 	         (i) the United States of America or any State or other
political subdivision thereof, or

		
	 	         (ii) any jurisdiction in which the Company or any Restricted
Subsidiary conducts all or any part of its business, or which
asserts jurisdiction over any properties of the Company or any
Restricted Subsidiary, or

		
	 	         (b) any entity exercising executive, legislative, judicial,
regulatory or administrative functions of, or pertaining to, any such
government.

         “Guaranty” means, with respect to any Person, any obligation (except the
endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing
any Indebtedness, dividend or other obligation of any other Person in any
manner, whether directly or indirectly, including (without limitation)
obligations incurred through an agreement, contingent or otherwise, by such
Person:

		
	 	         (a) to purchase such Indebtedness or obligation or any property
constituting security therefor;

		
	 	         (b) to advance or supply funds (i) for the purchase or payment of
such Indebtedness or obligation, or (ii) to maintain any working capital
or other balance sheet
condition or any income statement condition of any other Person or
otherwise to advance or make available funds for the purchase or payment
of such Indebtedness or obligation;

B-3

 

		
	 	         (c) to lease properties or to purchase properties or services
primarily for the purpose of assuring the owner of such Indebtedness or
obligation of the ability of any other Person to make payment of the
Indebtedness or obligation; or

		
	 	         (d) otherwise to assure the owner of such Indebtedness or obligation
against loss in respect thereof.

In any computation of the Indebtedness or other liabilities of the obligor
under any Guaranty, the Indebtedness or other obligations that are the subject
of such Guaranty shall be assumed to be direct obligations of such obligor.

         “Hazardous Material” means any and all pollutants, toxic or hazardous
wastes or any other substances, including all substances listed in or regulated
in any Environmental law that might pose a hazard to health or safety, the
removal of which may be required or the generation, manufacture, refining,
production, processing, treatment, storage, handling, transportation, transfer,
use, disposal, release, discharge, spillage, seepage, or filtration of which is
or shall be restricted, regulated, prohibited or penalized by any applicable
law (including, without limitation, asbestos, urea formaldehyde foam insulation
and polychlorinated biphenyls).

         “holder” means, with respect to any Note, the Person in whose name such
Note is registered in the register maintained by the Company pursuant to
Section 13.1.

         “Incorporated Financial Covenants” is defined in Section 9.8.

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

		
	 	         (a) its liabilities for borrowed money;
	 
	 	         (b) its liabilities for the deferred purchase price of property
acquired by such Person (excluding accounts payable arising in the
ordinary course of business but including all liabilities created or
arising under any conditional sale or other title retention agreement
with respect to any such property);
	 
	 	         (c) all liabilities appearing on its balance sheet in accordance
with GAAP in respect of Capital Leases;
	 
	 	         (d) all liabilities for borrowed money secured by any Lien with
respect to any property owned by such Person (whether or not it has
assumed or otherwise become liable for such liabilities);
	 
	 	         (e) all its liabilities in respect of letters of credit or
instruments serving a similar function issued or accepted for its account
by banks and other financial institutions (whether or not representing
obligations for borrowed money) other than obligations with respect to
letters of credit securing obligations (other than obligations described
in the foregoing clauses (a) through (d) entered into in the ordinary
course of business of such Person to the extent such letters of credit
are not drawn upon, or if and 

B-4

 

		
	 	to the extent drawn upon, such drawing is
reimbursed no later than the tenth Business Day following payment on the
letter of credit); and
	 
	 	         (f) any Guaranty of such Person with respect to liabilities of a
type described in any of clauses (a) through (e) hereof.

Indebtedness of any Person shall include all obligations of such Person of the
character described in clauses (a) through (f) to the extent such Person
remains legally liable in respect thereof notwithstanding that any such
obligation is deemed to be extinguished under GAAP, but Indebtedness shall in
no event include liabilities of such Person in respect of workers’ compensation
claims, self-insurance obligations, performance, assurity and similar bonds and
completion guaranties provided by the Company or any Restricted Subsidiary in
the ordinary course of business.

         “Institutional Investor” means (a) any original purchaser of a Note, (b)
any holder of a Note holding more than 5% of the aggregate principal amount of
the Notes then outstanding, and (c) any bank, trust company, savings and loan
association or other financial institution, any pension plan, any investment
company, any insurance company, any broker or dealer, or any other similar
financial institution or entity, regardless of legal form.

         “Interest Expense” of a Person means all amounts which would, in
accordance with GAAP, be deducted in computing net income on account of
interest on Indebtedness, including imputed interest in respect of Capital
Lease obligations, amortization of debt discount and expense, fees and
commissions for letters of credit and bankers’ acceptance financing and the net
interest cost of interest rate swaps and hedges.

         “Lien” means any interest in property securing an obligation owed to, or a
claim by, a Person other than the owner of the property, whether such interest
is based on the common law, statute or contract, and including but not limited
to the security interest lien arising from a mortgage, encumbrance, pledge,
conditional sale or trust receipt or a lease, consignment or bailment for
security purposes. The term “Lien” shall include reservations, exceptions,
encroachments, easements, rights-of-way, covenants, conditions, restrictions,
leases and other title exceptions and encumbrances (including, with respect to
stock, stockholder agreements, voting trust agreements, buy-back agreements and
all similar arrangements) affecting property. For the purposes of this
Agreement, the Company or a Restricted Subsidiary shall be deemed to be the
owner of any property which it has acquired or holds subject to a conditional
sale agreement, Capital Lease or other arrangement pursuant to which title to
the property has been retained by or vested in some other Person for security purposes and such
retention or vesting shall constitute a Lien.

         “Long-Term Lease” means any lease of real or personal property (other than
a Capital Lease) disclosed in the notes to the Company’s Annual Report on Form
10-K.

         “Make-Whole Amount” is defined in Section 8.6.

B-5

 

         “Material” means material in relation to the business, operations,
affairs, financial condition, assets, properties, or prospects of the Company
and its Restricted Subsidiaries taken as a whole.

         “Material Adverse Effect” means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets, properties or
prospects of the Company and its Restricted Subsidiaries taken as a whole, or
(b) the ability of the Company to perform its obligations under this Agreement
and the Notes, or (c) the validity or enforceability of this Agreement or the
Notes.

         “Material Restricted Subsidiary” means any Restricted Subsidiary of the
Company whose assets constitute more than 7% of Consolidated Total
Capitalization or which contributes more than 7% of Consolidated Net Income, in
any such case, as of the then most recent fiscal year-end.

         “Memorandum” is defined in Section 5.3.

         “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as
such term is defined in Section 4001(a)(3) of ERISA).

         “Notes” is defined in Section 1.

         “Officer’s Certificate” means a certificate of a Senior Financial Officer
or of any other officer of the Company whose responsibilities extend to the
subject matter of such certificate.

         “Other Agreements” is defined in Section 2.

         “Other Documentation” is defined in Section 9.8.

         “Other Purchasers” is defined in Section 2.

         “PBGC” means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto.

         “Person” means an individual, partnership, corporation, limited liability
company, association, trust, unincorporated organization, or a government or
agency or political subdivision thereof.

         “Plan” means an “employee benefit plan” (as defined in Section 3(3) of
ERISA) subject to Title IV that is or, within the preceding five years, has
been established or maintained, or to which contributions are or, within the
preceding five years, have been made or required to be made, by the Company or
any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate
may have any liability.

B-6

 

         “Preferred Stock” means any class of capital stock of a corporation that
is preferred over any other class of capital stock of such corporation as to
the payment of dividends or the payment of any amount upon liquidation or
dissolution of such corporation.

         “Priority Indebtedness” means (a) any Indebtedness of the Company secured
by a Lien created or incurred within the limitations of Section 10.5(h), (b)
any Indebtedness of the Company’s Restricted Subsidiaries, and (c) any
Attributable Indebtedness created or incurred in connection with any Sale and
Leaseback Transaction.

         “property” or “properties” means, unless otherwise specifically limited,
real or personal property of any kind, tangible or intangible, choate or
inchoate.

         “QPAM Exemption” means Prohibited Transaction Class Exemption 84-14 issued
by the United States Department of Labor.

         “Rentals” means and includes as of the date of any determination thereof
all rental expense from long-term operating leases as disclosed in the notes to
the financial statements of the Company contained in the SEC Form 10-K most
recently filed with the Securities and Exchange Commission or any other
Material long-term operating lease entered into after the date of such Form
10-K.

         “Required Holders” means, at any time, the holders of at least 51% in
principal amount of the Notes at the time outstanding (exclusive of Notes then
owned by the Company or any of its Affiliates).

         “Responsible Officer” means any Senior Financial Officer and any other
officer of the Company with responsibility for the administration of the
relevant portion of this Agreement.

         “Restricted Subsidiary” means any Subsidiary (a) of which more than 70%
(by number of votes) of the Voting Equity Capital is beneficially owned,
directly or indirectly, by the Company or by one or more Wholly-owned
Restricted Subsidiaries and (b) which is designated on the date of Closing as a
Restricted Subsidiary on Schedule 5.4 or which is subsequently designated as a
Restricted Subsidiary pursuant to Section 10.10.

         “Sale and Leaseback Transaction” shall have the meaning ascribed thereto
in Section 10.6.

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

         “Senior Financial Officer” means the chief financial officer, principal
accounting officer, treasurer or comptroller of the Company.

         “Senior Funded Indebtedness” means all Senior Indebtedness having a final
maturity of more than one year from the date of origin thereof (or which is
renewable or extendable at the option of the obligor for a period or periods
more than one year from the date of origin).

B-7

 

         “Senior Indebtedness” means all Indebtedness of the Company which is not
expressed to be subordinate or junior in rank to any other Indebtedness of the
Company.

         “Series A Notes” is defined in Section 1.

         “Series B Notes” is defined in Section 1.

         “Series C Notes” is defined in Section 1.

         “Subsidiary” means, as to any Person, any corporation, association or
other business entity in which such Person or one or more of its Subsidiaries
or such Person and one or more of its Subsidiaries owns sufficient equity or
voting interests to enable it or them (as a group) ordinarily, in the absence
of contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership or joint venture if more
than a 50% interest in the profits or capital thereof is owned by such Person
or one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries (unless such partnership can and does ordinarily take major
business actions without the prior approval of such Person or one or more of
its Subsidiaries). Unless the context otherwise clearly requires, any
reference to a “Subsidiary” is a reference to a Subsidiary of the Company.

         “Unrestricted Subsidiary” means any Subsidiary which is not a Restricted
Subsidiary.

         “Voting Equity Capital” means Securities (including stock), partnership,
membership or like interests of any class or classes, the holders of which are
ordinarily, in the absence of contingencies, entitled to elect a majority of
the corporate directors (or Persons performing similar functions under any such
partnership, limited liability company or other entity).

         “Wholly-owned Restricted Subsidiary” means, at any time, any Restricted
Subsidiary one hundred percent (100%) of all of the equity interests (except
directors’ qualifying shares) and voting interests of which are owned by any
one or more of the Company and the Company’s other Wholly-owned Restricted
Subsidiaries at such time.

B-8

 

Schedule 5.4

Restricted Subsidiaries

(as of January 18, 2002)

Note: To the extent practicable the names of foreign entities are given

in the language of the jurisdiction of incorporation or

establishment.

	 	 	 	 	 
	ENTITY	 	JURISDICTION	 	OWNERSHIP
	BGS China	 	
China
	 	Bowne Global Solutions

(Netherlands) BV-100%
	
	
	
	

	BGS Companies, Inc.	 	
Delaware
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bisdel, Inc.	 	
Delaware
	 	Immersant -100%
	
	
	
	

	Bowne Business Communications, Inc.	 	
New York
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Business Enterprises, LP	 	
Delaware
	 	Bowne Solutions
Inc. -1%

Bowne Solutions LLC -99%
	
	
	
	

	Bowne Business Services, Ltd.	 	
Canada
	 	Bowne Business Solutions LLC-100%
	
	
	
	

	Bowne Business Solutions, Inc.	 	
Delaware
	 	Bowne & Co., Inc-100%
	
	
	
	

	Bowne Business Solutions, LLC	 	
New York
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Delaware International, Inc.	 	
Delaware
	 	Bowne of NYC, LLC-100%
	
	
	
	

	Bowne de Montréal, Inc.	 	
Canada
	 	Bowne of Canada-100%
	
	
	
	

	Bowne Digital Solutions, LLC	 	
New York
	 	Bowne & Co., Inc., -100%
	
	
	
	

	Bowne Energy Inc.	 	
Delaware
	 	Bowne & Co., Inc-100%
	
	
	
	

	Bowne Fulfillment Solutions LLC	 	
Delaware
	 	Bowne Digital Solutions LLC-100%
	
	
	
	

	Bowne Globalization, Inc.	 	
Delaware
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Global Solutions Brasil Limitada	 	
Brazil
	 	Bowne Global Solutions, Inc. -99.93%
	
	
	
	

	Bowne Global Solutions BV	 	
Netherlands
	 	Bowne of Europe BV-100%
	
	
	
	

	Bowne Global Solutions (Delaware), Inc.	 	
Delaware
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Global Solutions (Finland), OY	 	
Finland
	 	Bowne Global Solutions

(Netherlands) BV-80%
	
	
	
	

	Bowne Global Solutions (France) SARL	 	
France
	 	Bowne of NYC LLC-100%
	
	
	
	

	Bowne Global Solutions (Germany) GmbH	 	
Germany
	 	Bowne of Germany Holding GmbH-100%
	
	
	
	

	Bowne Global Solutions (Germany), Inc.	 	
Delaware
	 	Bowne & Co., Inc.-100%
	
	
	
	

	Bowne Global Solutions
(Germany)
	Marketing & Sales GmbH	 	
Germany
	 	Bowne of Germany Holding GmbH-100%
	
	
	
	

	Bowne Global Solutions, Inc.	 	
California
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Global Solutions (Ireland), Ltd.	 	
Ireland
	 	Bowne Localization, Inc. -100%
	
	
	
	

	Bowne Global Solutions Japan, KK	 	
Japan
	 	Bowne Global Solutions

(Netherlands) -100%
	
	
	
	

	Bowne Global Solutions Korea	 	
South Korea
	 	Bowne Global Solutions, Inc. -100%

SCHEDULE 5.4

(to Note Purchase Agreement)

 

 

	 	 	 	 	 
	ENTITY	 	JURISDICTION	 	OWNERSHIP
	Bowne Global Solutions (Netherlands) BV	 	
Netherlands
	 	Bowne of Europe BV-100%
	
	
	
	

	Bowne Global Solutions (Seattle), Inc.	 	
Delaware
	 	Bowne Global Solutions (Delaware), Inc. -
100%
	
	
	
	

	Bowne Global Solutions (Spain), SL	 	
Spain
	 	Bowne Global Solutions

(Netherlands) BV-100%
	
	
	
	

	Bowne Information Services, Inc.	 	
New Jersey
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne International de Mexico, S.A. de
C.V.	 	
Mexico
	 	Bowne of NYC,
LLC-2%

Bowne International, LLC-98%
	
	
	
	

	Bowne International, LLC	 	
Delaware
	 	Bowne of NYC, LLC-100%
	
	
	
	

	Bowne International, Ltd.	 	
UK
	 	Bowne Global Solutions

(Netherlands) BV-100%
	
	
	
	

	Bowne International SARL	 	
France
	 	Bowne of NYC, LLC-100%
	
	
	
	

	Bowne Internet Acquisitions, Inc.	 	
Delaware
	 	Bowne & Co., Inc-100%
	
	
	
	

	Bowne Internet Services, Inc.	 	
Michigan
	 	Immersant, Inc. -100%
	
	
	
	

	Bowne Internet Solutions (Canada), Inc.	 	
Canada
	 	Immersant, Inc. -100%
	
	
	
	

	Bowne Japan & Co., KK	 	
Japan
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Litigation Solutions, LP	 	
Delaware
	 	Bowne Solutions,
Inc. -50%

Bowne Solutions, LLC-50%
	
	
	
	

	Bowne Localization, Inc.	 	
Delaware
	 	Bowne of NYC, Inc. -100%
	
	
	
	

	Bowne Management Solutions, Ltd.	 	
UK
	 	Bowne Solutions L.P. -100%
	
	
	
	

	Bowne of Atlanta, Inc.	 	
Georgia
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of Boston, Inc.	 	
Massachusetts
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of Canada, Ltd.	 	
Canada
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of Chicago, Inc.	 	
Delaware
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of Cleveland, Inc.	 	
Ohio
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of Dallas, Inc.	 	
Delaware
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of Dallas, LP	 	
Delaware
	 	Bowne of Dallas,
Inc. -1%

Bowne Solutions, LLC -99%
	
	
	
	

	Bowne of Europe BV	 	
Netherlands
	 	Bowne Localization, Inc. -100%
	
	
	
	

	Bowne of France, Inc.	 	
Delaware
	 	Bowne of NYC, LLC-100%
	
	
	
	

	Bowne of Frankfurt GmbH	 	
Germany
	 	Bowne of Germany Holding GmbH-100%
	
	
	
	

	Bowne of Germany Holding GmbH	 	
Germany
	 	Bowne Global Solutions

(Netherlands) BV-100%
	
	
	
	

	Bowne of Gibraltor BV	 	
Netherlands
	 	Bowne International LLC-100%
	
	
	
	

	Bowne of Los Angeles, Inc.	 	
California
	 	Bowne & Co., Inc-100%
	
	
	
	

	Bowne of the Netherlands BV	 	
Netherlands
	 	Bowne of NYC, LLC-100%
	
	
	
	

	Bowne of New York City, LLC	 	
New York
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of Ontario L.P.	 	
Canada
	 	Bowne &
Co., Inc. -99%

Bowne of NYC, LLC-1%

5.4-2

 

	 	 	 	 	 
	ENTITY	 	JURISDICTION	 	OWNERSHIP
	
	
	
	

	Bowne of Phoenix, Inc.	 	
Arizona
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of South Bend, Inc.	 	
Indiana
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of South Bend I, LLC	 	
Indiana
	 	Bowne of South Bend 1, LLC-100%
	
	
	
	

	Bowne of Tokyo KK	 	
Japan
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne of Personalization Services, Inc.	 	
Delaware
	 	Immersant, Inc. -100%
	
	
	
	

	Bowne Publishing LLC	 	
New York
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Software Solutions, LLC	 	
Delaware
	 	Bowne of NYC, LLC-100%
	
	
	
	

	Bowne Solutions, Inc.	 	
Delaware
	 	Bowne of Dallas, Inc. -100%
	
	
	
	

	Bowne Solutions, LLC	 	
Delaware
	 	Bowne of Phoenix, LLC-100%
	
	
	
	

	Bowne Technology Enterprise, LLC	 	
New York
	 	Bowne Business Communications, Inc. -
100%
	
	
	
	

	Bowne Translation Services, LLC	 	
New York
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Venture Corporation	 	
New York
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Bowne Williams Lea International	 	
New York
	 	Bowne & Co., Inc. -50%
	
	
	
	

	Bowne Williams Lea Japan	 	
Japan
	 	Bowne Business Solutions, LLC-100%
	
	
	
	

	Clockworks Ireland	 	
Ireland
	 	Mendez S.A. -100%
	
	
	
	

	Clockworks USA, Inc.	 	
Delaware
	 	Clockworks Ireland-100%
	
	
	
	

	DataLink Co. KK	 	
Japan
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Delbis, Inc.	 	
Delaware
	 	Immersant, Inc. -100%
	
	
	
	

	DESI Management Corporation	 	
Delaware
	 	Bowne & Co., Inc. -100%
	
	
	
	

	Document Management Services, Inc.	 	
Massachusetts
	 	Bowne Business Solutions, LLC-100%
	
	
	
	

	8-Bit Unlimited Media Design GmbH	 	
Germany
	 	Bowne of Germany Holding GmbH-70%
	
	
	
	

	FundSmith, LLC	 	
Delaware
	 	Bowne of NYC, LLC-100%
	
	
	
	

	GECAP Canada, Inc.	 	
Canada
	 	Bowne of Germany Holding GmbH-100%
	
	
	
	

	GECAP Italia SARL	 	
Italy
	 	Bowne Global Solutions
(Netherlands) BV—66.6%
	
	
	
	

	GECAP International Localization	 	 	 	 
	
	
	
	

	     Marketing & Sales GmbH	 	
Germany
	 	Bowne Global Solutions-100%
	
	
	
	

	GECAP Salt Lake City, LLC	 	
Delaware
	 	GECAP USA-80%
	
	
	
	

	GECAP S.R.O	 	
Slovakia
	 	Bowne Global Solutions

(Netherlands) BV-60%
	
	
	
	

	Imagineer, Inc.	 	
Arizona
	 	Bowne & Co., Inc-100%
	
	
	
	

	Imagineer of California, LLC	 	
Arizona
	 	Imagineer, Inc. -100%
	
	
	
	

	Immersant, Inc.	 	
Delaware
	 	Bowne & Co., Inc. -100%
	
	
	
	

	L&H Deutschland GmbH	 	
Germany
	 	LHSP Holding GmbH-100%
	
	
	
	

	L&H Editions	 	
France
	 	Mendez S.A.
—95%

L&H Mendez France-5%

5.4-3

 

	 	 	 	 	 
	ENTITY	 	JURISDICTION	 	OWNERSHIP
	
	
	
	

	L&H Italia	 	
Italy
	 	Mendez S.A.
-97.5%

L&H Mendez France-2.5%
	
	
	
	

	L&H Mendez A/S	 	
Denmark
	 	LHSP Holding GmbH-100%
	
	
	
	

	L&H Mendez Brasil Ltda.	 	
Brazil
	 	Mendez S.A.
-95%

L&H Mendez France-5%
	
	
	
	

	L&H Mendez France	 	
France
	 	Mendez S.A. -99.875%
	
	
	
	

	L&H Mendez Sweden	 	
Sweden
	 	L&H
Scandinavia-6.9%

L&H Sweden-93.1%
	
	
	
	

	L&H Mendez Japan KK	 	
Japan
	 	Mendez S.A. -100%
	
	
	
	

	L&H Mendez Portugal	 	
Portugal
	 	Mendez S.A.-100%
	
	
	
	

	L&H Mendez Italia	 	
Italy
	 	L&H Italia-100%
	
	
	
	

	L&H Scandinavia	 	
Denmark
	 	Mendez S.A.-100%
	
	
	
	

	L&H Sweden	 	
Sweden
	 	L&H Scandinavia-100%
	
	
	
	

	Lernout & Hauspie Investments Ltd.	 	
UK
	 	L&H Deutschland GmbH-100%
	
	
	
	

	Lernout & Hauspie LLC	 	
Washington
	 	Mendez S.A.
	
	
	
	

	Lernout & Hauspie Ltd.	 	
UK
	 	TMPS Ltd.-100%
	
	
	
	

	Lernout & Hauspie Spain SA	 	
Spain
	 	Mendez
S.A.-99%

Mendez Traducciones-1%
	
	
	
	

	LHSP Holding GmbH	 	
Germany
	 	Mendez S.A.-100%
	
	
	
	

	Linguatech Corporation	 	
Washington
	 	Bowne Global Solutions France S.A.R.L.-100%
	
	
	
	

	Linguatech Multimedia SARL	 	
France
	 	Bowne Global Solutions-100%
	
	
	
	

	Linguex Inc.	 	
France
	 	L&H Mendez France-100%
	
	
	
	

	Linguistix, Inc.	 	
California
	 	Bowne Global Solutions, Inc.-100%
	
	
	
	

	Mapora Books S.L	 	
Spain
	 	Bowne Global Solutions-100%
	
	
	
	

	Mendez Denmark A/S	 	
Denmark
	 	LHSP Holding GmbH-100%
	
	
	
	

	Mendez Deutschland GmbH	 	
Germany
	 	LHSP Holding GmbH-100%
	
	
	
	

	Mendez Editions SARL	 	
France
	 	Mendez
S.A.-95%

L&H Mendez France-5%
	
	
	
	

	Mendez Globalisation SA	 	
France
	 	Mendez S.A.-100%
	
	
	
	

	Mendez Investment AB	 	
Sweden
	 	Mendez S.A.-100%
	
	
	
	

	Mendez Investments Ltd.	 	
UK
	 	Mendez S.A.-100%
	
	
	
	

	Mendez Japan KK	 	
Japan
	 	Mendez S.A.-100%
	
	
	
	

	Mendez Korea	 	
Korea
	 	Mendez S.A.-100%
	
	
	
	

	Mendez Inc.	 	
Delaware
	 	L&H
Deutschland GmbH-60%

Mendez S.A.-40%
	
	
	
	

	Mendez Italia	 	
Italy
	 	Mendez S.A.- 100%
	
	
	
	

	Mendez Ltd.	 	
UK
	 	Mendez S.A.-100%

5.4-4

 

	 	 	 	 	 
	ENTITY	 	JURISDICTION	 	OWNERSHIP
	
	
	
	

	Mendez Nederland BV	 	
Netherlands
	 	Mendez S.A.-100%
	
	
	
	

	Mendez Nordic AB	 	
Sweden
	 	LHSP Holding GmbH-100%
	
	
	
	

	Mendez Norge A/S	 	
Norway
	 	LHSP Holding GmbH-100%
	
	
	
	

	Mendez OY	 	
Finland
	 	L&H Scandinavia-100%
	
	
	
	

	Mendez Portugal	 	
Portugal
	 	Mendez S.A.-100%
	
	
	
	

	Mendez SA	 	
Belgium
	 	Bowne Global Solutions-100%
	
	
	
	

	Mendez SARL	 	
France
	 	Mendez S.A.-100%
	
	
	
	

	Mendez Spain	 	
Spain
	 	Mendez S.A.-100%
	
	
	
	

	Mendez Sweden AB	 	
Sweden
	 	L&H
Sweden-93.1%

L&H. Scandinavia-6.9%
	
	
	
	

	Mendez Traducciones	 	
Spain
	 	Mendez S.A.
	
	
	
	

	Northwood A/S	 	
Denmark
	 	Bowne Global Solutions-100%
	
	
	
	

	Ohio Franklin Corp.	 	
Illinois
	 	Bowne of Chicago, Inc.-100%
	
	
	
	

	R&D Mond SRL	 	
Italy
	 	Bowne Global Solutions, Inc.-100%
	
	
	
	

	Site Werks, Inc.	 	
Washington
	 	Bowne Internet Acquisitions-100%
	
	
	
	

	Technical Core KK	 	
Japan
	 	Bowne Global Solutions, Inc.-100%
	
	
	
	

	Technical Publications Management	 	 	 	 
	
	
	
	

	     Services Ltd.	 	
UK
	 	Mendez S.A.-100%
	
	
	
	

	TMPS Ltd.	 	
UK
	 	Lernout & Hauspie Investments Ltd.-100%
	
	
	
	

	Transwise Finland OY	 	
Finland
	 	Mendez OY-25%
	
	
	
	

	Bowne International (UK) Ltd.	 	
UK
	 	Bowne International Ltd.-100%
	
	
	
	

	World Tech Corp.	 	
Korea
	 	Mendez S.A.-100%

5.4-5

 

Directors and Executive Officers of Bowne & Co., Inc.

(See the Private Placement Memorandum, pp. 3-18, 19 and 20 for their individual biographies)

DIRECTORS

         Robert M. Johnson, Chairman of the Board

         Carl J. Crosetto

         Douglas B. Fox

         H. Marshall Schwarz

         Wendell M. Smith

         Lisa A. Stanley

         Vincent Tese

         Harry Wallaesa

         Richard R. West

EXECUTIVE OFFICERS:

         Robert M. Johnson, Chief Executive Officer

         Carl J. Crosetto, President

         C. Cody Colquitt, Senior Vice President & Chief Financial Officer

         Susan W. Cummiskey, Senior Vice President, Human Resources

         James E. Fagan,
Jr., Senior Vice President, Strategy and New Business Development

         Philip E. Kucera, Senior Vice President & General Counsel

         Joseph O. Miles, Senior Vice President, Marketing

         Kenneth W. Swanson, Senior Vice President, Manufacturing

         Duncan P. Varty, Senior Vice President, Operations

         Douglas F. Bauer, Counsel & Corporate Secretary

         William J. Coote, Vice President & Treasurer

         Richard Bambach, Corporate Controller

         Carl D. Glaeser, Director of Bowne Global Solutions, Inc.

         David Shea, President, Bowne Business Solutions, LLC

         Robert J. Baker, President, Bowne Enterprise Solutions

5.4-6

 

Schedule 5.5

Financial Statements

         Form 10Q – September 2001

         Form 10Q – June 2001

         Form 10Q – March 2001

         Mid-Year Report – June 2001

         Annual Report – 2000

         Form 10K – December 2000

         2000 Proxy Statement

         Annual Report – 1999

         Form 10K – December 1999

SCHEDULE 5.5

(to Note Purchase Agreement)

 

 

Schedule 5.11

Patents, Etc.

None.

SCHEDULE 5.11

(to Note Purchase Agreement)

 

 

Schedule 5.14

Use of Proceeds

         The net proceeds will be used to repay borrowings outstanding under the
Company’s revolving credit facility.

SCHEDULE 5.14

(to Note Purchase Agreement)

 

 

Schedule 5.15

Existing Indebtedness

Schedule of Existing Indebtedness – As of February 4, 2002:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ENTITY	 	DESCRIPTION	 	MATURITY DATE	 	INTEREST RATE	 	CREDITOR/PAYEE	 	AMOUNT
	
	 	
	 	
	 	
	 	
	 	

	Bowne & Co., Inc.	 	
Revolving Credit

Facility (Note 1)
	 	7/05/02
	 	Avg. YTD 2002- 2.22%
	 	Fleet Bank
	 	$	116,000,000	 
	
	
	
	

	Bowne Global Solutions	 	
Capital Lease –

office equipment
	 	8/23/02
	 	4.42%
	 	Mitsui Lease
	 	 	17,200	 
	
	
	
	

	Bowne Global Solutions	 	
Capital Lease –

office equipment
	 	8/23/02
	 	4.20%
	 	Mitsui Lease
	 	 	12,780	 
	
	
	
	

	Bowne Global Solutions	 	
Capital Lease –

office equipment
	 	9/23/02
	 	4.28%
	 	Mitsui Lease
	 	 	32,988	 
	
	
	
	

	Bowne Global Solutions	 	
Capital Lease –

office equipment
	 	5/23/02
	 	4.37%
	 	Mitsui Lease
	 	 	351	 
	
	
	
	

	Bowne Global Solutions	 	
Capital Lease –

office equipment
	 	5/23/02
	 	4.38%
	 	Mitsui Lease
	 	 	1,403	 
	
	
	
	

	Bowne Global Solutions	 	
Mortgage – Building
	 	5/31/09
	 	5.80%
	 	Fortis Bank
	 	 	477	 
	
	
	
	

	Bowne Global Solutions	 	
Mortgage – Building
	 	7/31/03
	 	5.00%
	 	BFG/SEB
	 	 	1,877	 
	
	
	
	

	Bowne Global Solutions	 	
Capital Lease –

Autos
	 	9/30/04
	 	6.92%
	 	Mobil Lease
	 	 	33	 
	
	
	
	

	Bowne Global Solutions	 	
Capital Lease –

hardware/software
	 	7/05
	 	N/A
	 	Tahgin Lease
	 	 	69	 
	
	
	
	

	Bowne Global Solutions	 	
Software Development
	 	3/05 and 3/03
	 	8.00% and 7%
	 	Kookmin Bank

Hamvit Bank
	 	 	96	 
	
	
	
	

	Bowne of Atlanta	 	
Capital Lease –

Building
	 	5/31/02
	 	11.44%
	 	Lafite Limited

Partnership c/o

European American

Realty
	 	 	204,790	 
	
	
	
	

	Bowne Business

Solutions	 	
Capital Lease –

Machinery
	 	Various
	 	9.00%
	 	Canon Financial

Services, Xerox,

Danka Financial

Services, AOE

Ricoh, Harris Bank
	 	 	95,408	 
	
	
	
	

	Total Debt	 	 	 	 	 	 	 	 	 	$	116,367,472	 

         Note 1:       The net proceeds from the private placement will be used to repay
borrowings outstanding under this revolving credit facility.

SCHEDULE 5.15

(to Note Purchase Agreement)

 

 

[Form of Note]

Bowne & Co., Inc.

6.90% Senior Note, Series A, due January 30, 2007

	 	 	 
	No.
	 	
[Date]
	
	
	
	

	$
	 	
PPN 103043 A# 2

         For Value Received, the undersigned, Bowne & Co., Inc, (herein called the
“Company”), a corporation organized and existing under the laws of the State of
Delaware, hereby promises to pay to      , or registered assigns,
the principal sum of      Dollars on January 30, 2007, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 6.90% per annum from the date
hereof, payable semiannually, on the thirtieth day of January and July in each
year, commencing with the January 30 or July 30 next succeeding the date
hereof, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate per annum from time to time
equal to the greater of (i) 7.90% or (ii) 1% over the rate of interest publicly
announced by J.P. Morgan Chase from time to time in New York, New York as its
“base” or “prime” rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at New York, New York or at such other place as the Company shall have
designated by written notice to the holder of this Note as provided in the Note
Purchase Agreements referred to below.

         This Note is one of a series of the 6.90% Senior Notes, Series A, due
January 30, 2007 (the “Series A Notes”) of the Company in the aggregate
principal amount of $25,000,000 which, together with the Company’s $28,000,000
aggregate principal amount 7.31% Senior Notes, Series B, due January 30, 2012
(the “Series B Notes”) and $22,000,000 aggregate principal amount 7.85% Senior
Notes, Series C, due January 30, 2012 (the “Series C Notes”; said Series C
Notes and Series B Notes together with the Series A Notes being hereinafter
referred to collectively as the “Notes”) were issued pursuant to separate Note
Purchase Agreements, dated as of January 30, 2002 (as from time to time
amended, the “Note Purchase Agreements”), between the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreements and (ii) to have made the representations set forth in
Sections 6.1 and 6.2 of the Note Purchase Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written

EXHIBIT 1(a)

(to Note Purchase Agreement)

 

 

instrument of transfer duly executed, by the registered holder hereof or
such holder’s attorney duly authorized in writing, a new Note for a like
principal amount will be issued to, and registered in the name of, the
transferee. Prior to due presentment for registration of transfer, the Company
may treat the person in whose name this Note is registered as the owner hereof
for the purpose of receiving payment and for all other purposes, and the
Company will not be affected by any notice to the contrary.

         This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

         This Note shall be construed and enforced in accordance with, and the
rights and parties shall be governed by, the law of the State of New York,
excluding choice-of-law principles of the law of such State which would require
application of the laws of the jurisdiction other than such State.

	 	 	 
	    	 	
Bowne & Co., Inc.
	 
	 	 	
By

[Title]

E-1(a)-2

 

[Form of Note]

Bowne & Co., Inc.

7.31% Senior Note, Series B, due January 30, 2012

	 	 	 
	No.
	 	
[Date]
	
	
	
	

	$
	 	
PPN 103043 B* 5

         For Value Received, the undersigned, Bowne & Co., Inc, (herein called the
“Company”), a corporation organized and existing under the laws of the State of
Delaware, hereby promises to pay to      , or registered assigns,
the principal sum of      Dollars on January 30, 2012, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 7.31% per annum from the date
hereof, payable semiannually, on the thirtieth day of January and July in each
year, commencing with the January 30 or July 30 next succeeding the date
hereof, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate per annum from time to time
equal to the greater of (i) 8.31% or (ii) 1% over the rate of interest publicly
announced by J.P. Morgan Chase from time to time in New York, New York as its
“base” or “prime” rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at New York, New York or at such other place as the Company shall have
designated by written notice to the holder of this Note as provided in the Note
Purchase Agreements referred to below.

         This Note is one of a series of the 7.31% Senior Notes, Series B, due
January 30, 2012 (the “Series B Notes”) of the Company in the aggregate
principal amount of $28,000,000 which, together with the Company’s $25,000,000
aggregate principal amount 6.90% Senior Notes, Series A, due January 30, 2007
(the “Series A Notes”) and $22,000,000 aggregate principal amount 7.85% Senior
Notes, Series C, due January 30, 2012 (the “Series C Notes”; said Series C
Notes and Series B Notes together with the Series A Notes being hereinafter
referred to collectively as the “Notes”) were issued pursuant to separate Note
Purchase Agreements, dated as of January 30, 2002 (as from time to time
amended, the “Note Purchase Agreements”), between the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreements and (ii) to have made the representations set forth in
Sections 6.1 and 6.2 of the Note Purchase Agreements.

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written

EXHIBIT 1(b)

(to Note Purchase Agreement)

 

 

instrument of transfer duly executed, by the registered holder hereof or
such holder’s attorney duly authorized in writing, a new Note for a like
principal amount will be issued to, and registered in the name of, the
transferee. Prior to due presentment for registration of transfer, the Company
may treat the person in whose name this Note is registered as the owner hereof
for the purpose of receiving payment and for all other purposes, and the
Company will not be affected by any notice to the contrary.

         The Company will make required prepayments of principal on the dates and
in the amounts specified in the Note Purchase Agreements. This Note is also
subject to optional prepayment, in whole or from time to time in part, at the
times and on the terms specified in the Note Purchase Agreements, but not
otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

         This Note shall be construed and enforced in accordance with, and the
rights and parties shall be governed by, the law of the State of New York,
excluding choice-of-law principles of the law of such State which would require
application of the laws of the jurisdiction other than such State.

	 	 	 
	    	 	
Bowne & Co., Inc.
	 
	 	 	
By

[Title]

E-1(b)-2

 

[Form of Note]

Bowne & Co., Inc.

7.85% Senior Note, Series C, due January 30, 2012

	 	 	 
	No.
	 	
[Date]
	
	
	
	

	$
	 	
PPN 103043 B@ 3

         For Value Received, the undersigned, Bowne & Co., Inc, (herein called the
“Company”), a corporation organized and existing under the laws of the State of
Delaware, hereby promises to pay to      , or registered assigns,
the principal sum of      Dollars on January 30, 2012, with
interest (computed on the basis of a 360-day year of twelve 30-day months) (a)
on the unpaid balance thereof at the rate of 7.85% per annum from the date
hereof, payable semiannually, on the thirtieth day of January and July in each
year, commencing with the January 30 or July 30 next succeeding the date
hereof, until the principal hereof shall have become due and payable, and (b)
to the extent permitted by law on any overdue payment (including any overdue
prepayment) of principal, any overdue payment of interest and any overdue
payment of any Make-Whole Amount (as defined in the Note Purchase Agreements
referred to below), payable semiannually as aforesaid (or, at the option of the
registered holder hereof, on demand), at a rate per annum from time to time
equal to the greater of (i) 8.85% or (ii) 1% over the rate of interest publicly
announced by J.P. Morgan Chase from time to time in New York, New York as its
“base” or “prime” rate.

         Payments of principal of, interest on and any Make-Whole Amount with
respect to this Note are to be made in lawful money of the United States of
America at New York, New York or at such other place as the Company shall have
designated by written notice to the holder of this Note as provided in the Note
Purchase Agreements referred to below.

         This Note is one of a series of the 7.85% Senior Notes, Series C, due
January 30, 2012 (the “Series C Notes”) of the Company in the aggregate
principal amount of $22,000,000 which, together with the Company’s $28,000,000
aggregate principal amount 7.31% Senior Notes, Series B, due January 30, 2012
(the “Series B Notes”) and $25,000,000 aggregate principal amount 6.90% Senior
Notes, Series A, due January 30, 2007 (the “Series A Notes”; said Series A
Notes and Series B Notes together with the Series C Notes being hereinafter
referred to collectively as the “Notes”) were issued pursuant to separate Note
Purchase Agreements, dated as of January 30, 2002 (as from time to time
amended, the “Note Purchase Agreements”), between the Company and the
respective Purchasers named therein and is entitled to the benefits thereof.
Each holder of this Note will be deemed, by its acceptance hereof, (i) to have
agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreements and (ii) to have made the representations set forth in
Sections 6.1 and 6.2 of the Note Purchase Agreements.

EXHIBIT 1(c)

(to Note Purchase Agreement)

 

 

         This Note is a registered Note and, as provided in the Note Purchase
Agreements, upon surrender of this Note for registration of transfer, duly
endorsed, or accompanied by a written instrument of transfer duly executed, by
the registered holder hereof or such holder’s attorney duly authorized in
writing, a new Note for a like principal amount will be issued to, and
registered in the name of, the transferee. Prior to due presentment for
registration of transfer, the Company may treat the person in whose name this
Note is registered as the owner hereof for the purpose of receiving payment and
for all other purposes, and the Company will not be affected by any notice to
the contrary.

         This Note is subject to optional prepayment, in whole or from time to time
in part, at the times and on the terms specified in the Note Purchase
Agreements, but not otherwise.

         If an Event of Default, as defined in the Note Purchase Agreements, occurs
and is continuing, the principal of this Note may be declared or otherwise
become due and payable in the manner, at the price (including any applicable
Make-Whole Amount) and with the effect provided in the Note Purchase
Agreements.

         This Note shall be construed and enforced in accordance with, and the
rights and parties shall be governed by, the law of the State of New York,
excluding choice-of-law principles of the law of such State which would require
application of the laws of the jurisdiction other than such State.

	 	 	 
	    	 	
Bowne & Co., Inc.
	 
	 	 	
By

[Title]

E-1(c)-2

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