Document:

exv10w5

 

Exhibit 10.5

TRANSITION SERVICES AGREEMENT

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

W I T N E S S E T H:

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

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

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

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

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

     3. Provision of Fortune Services.

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

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

 

 

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

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

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

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

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

     6. Provision of ACCO Services.

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

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

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

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

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

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

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

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

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

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     11. Limitation on Liability.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     16. Force Majeure.

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

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

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

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

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

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

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

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

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

	 	 	 
	 

	 	If to Fortune:

	 	 	 
	 

	 	Fortune Brands, Inc.
	 

	 	300 Tower Parkway
	 

	 	Lincolnshire, Illinois 60069
	 

	 	Fax: (847) 484-4490
	 

	 	Attention: Mark A. Roche, Esq.

	 	 	 
	 

	 	with a copy to

	 	 	 
	 

	 	Chadbourne & Parke LLP
	 

	 	30 Rockefeller Plaza
	 

	 	New York, New York 10112
	 

	 	Fax: (212) 541-5369
	 

	 	Attention: Edward P. Smith, Esq.

			
	 

	 	and A. Robert Colby, Esq.

	 	 	 
	 

	 	and

	 	 	 
	 

	 	Ungaretti & Harris LLP
	 

	 	3500 Three First National Plaza
	 

	 	Chicago, Illinois 60602
	 

	 	Fax: (312) 977-4405
	 

	 	Attention: William J. Lewis

	 	 	 
	 

	 	If to ACCO:

	 	 	 
	 

	 	ACCO Brands Corporation
	 

	 	300 Tower Parkway
	 

	 	Lincolnshire, Illinois 60069
	 

	 	Fax: (847) 484-4495
	 

	 	Attention: President

	 	 	 
	 

	 	With a copy to

	 	 	 
	 

	 	GBC Corporation
	 

	 	One GBC Plaza
	 

	 	Northbrook, Illinois 60062
	 

	 	Fax: (847) 272-4763
	 

	 	Attention: Steven Rubin, Esq.

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

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

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

     22. Subcontracting.

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

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

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

     24. Construction. In this Agreement:

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

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

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

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

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

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

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

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

[signature page attached]

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

	 	 	 	 	 
	 	FORTUNE BRANDS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ACCO WORLD CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

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EXHIBIT A

SERVICES TO BE PROVIDED BY FORTUNE

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

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

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

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

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

 

 

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

	B.	 	Information technology services as follows.

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

	C.	 	Human resources services as follows.

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

 

 

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

	D.	 	Administration services as follows.

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

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

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

 

 

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

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

LEGAL SERVICES

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

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

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

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

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

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

MEETING PLANNING SERVICES

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

 

 

EXHIBIT B

SERVICES TO BE PROVIDED BY ACCO

STORAGE SPACE IN WHEELING, ILLINOIS

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

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

UK EMPLOYEES

ACCO will continue to provide payroll services for up to six (6) months for non-ACCO employees of
Fortune or its subsidiaries in the UK. Fortune will reimburse ACCO for its costs in providing
these services and will provide cash funds to ACCO in advance of any payments by ACCO. Fortune may
elect to discontinue these services upon thirty (30) days prior written notice to ACCO.exv10w17

 

Exhibit 10.17

EXECUTION VERSION

	 	 	 
	CITICORP NORTH AMERICA, INC.
	 	ABN AMRO BANK, N.V.
	CITIGROUP GLOBAL MARKETS INC.
	 	ABN AMRO INCORPORATED
	390 GREENWICH STREET
	 	55 EAST 52ND STREET
	NEW YORK, NEW YORK 10013
	 	NEW YORK, NEW YORK 10055

GOLDMAN SACHS CREDIT PARTNERS L.P.

85 BROAD STREET

NEW YORK, NEW YORK, 10004

April 19, 2005

ACCO World Corporation

300 Tower Parkway

Lincolnshire, IL 60069-3640

Attention: Neil Fenwick

Amended and Restated Senior Secured Credit Facilities

                              Commitment Letter                              

Ladies and Gentlemen:

Reference is made to that certain Commitment Letter (including the documents incorporated by
reference therein and exhibits thereto, the “Original Commitment Letter”), dated as of
March 15, 2005, by and among, you, Citigroup (as defined below) and GSCP (as defined below). ACCO
World Corporation, a Delaware corporation (the “Borrower” or “you”), has advised
Citigroup, ABN AMRO (as defined below) and Goldman Sachs Credit Partners L.P. (“GSCP” and
together with Citigroup and ABN AMRO, the “Commitment Parties,” “we” or
“us”) that you desire to establish the senior secured credit facilities described herein
(the “Senior Secured Credit Facilities”), the proceeds of which would be used to finance
the transactions described in Exhibit A hereto (the “Transaction Description”).
Capitalized terms used in this letter agreement but not defined herein shall have the meanings
given to them in the Transaction Description.

Subject to the terms and conditions described in this amended and restated letter agreement and the
attached Exhibits A, B and C (collectively, the “Exhibits,” and
together with the Fee Letter referred to below, this “Commitment Letter”), each Commitment
Party, severally and not jointly, hereby commits the amounts set forth below opposite such
Commitment Party’s name:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Term A	 	 	 	Term B	 	 	 	Term C	 	 	 	 	 
	 	 	 	 	Facility	 	 	 	Facility	 	 	 	Facility	 	 	 	Revolving	 
	 	 	 	 	Commitment	 	 	 	Commitment	 	 	 	Commitment	 	 	 	Facility Commitment	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Citigroup:
	 	 	$	85,000,000	 	 	 	$	170,000,000	 	 	 	$	158,665,850	 	 	 	$	63,750,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	GSCP:
	 	 	 	65,000,000	 	 	 	 	130,000,000	 	 	 	 	121,334,150	 	 	 	 	48,750,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	ABN AMRO
	 	 	 	50,000,000	 	 	 	 	100,000,000	 	 	 	 	70,000,000	 	 	 	 	37,500,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Total:
	 	 	$	200,000,000	 	 	 	$	400,000,000	 	 	 	$	350,000,000	 	 	 	$	150,000,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

It is understood and agreed that any reduction in the total amount of funds required to consummate
the Transactions shall be allocated to a reduction of the Senior Secured Credit Facilities as we
shall determine and that any reduction of any of the Senior Secured Credit Facilities shall reduce
the several commitments of the Commit-

 

 

ment Parties in respect thereof in the same proportion as the commitment of each Commitment Party
with respect to the Senior Secured Credit Facility that is reduced bears to the aggregate amount of
such Senior Secured Credit Facility.

For purposes of this Commitment Letter, (i) “Citigroup” shall mean Citicorp North America,
Inc. and/or any affiliate thereof, including Citigroup Global Markets Inc. (“CGMI”), as
Citigroup shall determine to be appropriate to provide the services contemplated herein and (ii)
“ABN AMRO” shall mean ABN AMRO Bank, N.V. and/or any affiliate thereof, including ABN AMRO
Incorporated (“ABN AMRO Inc.”), as ABN AMRO shall determine to be appropriate to provide
the services contemplated herein.

1. Conditions Precedent

The commitments of the Commitment Parties hereunder are subject to:

     (a) The preparation, execution and delivery of customary definitive documentation with
respect to the Senior Secured Credit Facilities, including the credit agreement, security
agreements, an intercreditor agreement and guarantees incorporating the terms and conditions
outlined in this Commitment Letter and reasonably satisfactory to you, your counsel, the
Commitment Parties and their counsel (the “Operative Documents”).

     (b) The absence of any event or occurrence (excluding the existence of any event,
condition or occurrence disclosed on the schedules to the Acquisition Agreement most
recently provided to the Commitment Parties prior to the date hereof (but not any adverse
development with respect to any such event, condition or occurrence disclosed on such
schedules)) which has resulted in or would reasonably be expected to result in any material
adverse change in the business or condition (financial or otherwise) of Gemini and its
subsidiaries, taken as a whole, or Borrower and its subsidiaries, taken as a whole, since
December 31, 2003.

     (c) The accuracy and completeness in all material respects of all representations that
Borrower makes in this Commitment Letter and that the Seller, Borrower and Gemini make in
the Acquisition Agreement.

     (d) The payment in full of all fees, expenses and other amounts payable under this
Commitment Letter and the Fee Letter.

     (e) The execution, delivery and compliance with the terms of (A) the engagement letter
(the “Engagement Letter”) of even date herewith between CGMI, ABN AMRO, Goldman,
Sachs & Co. and you, (B) this Commitment Letter, and (C) the Fee Letter.

     (f) The Commitment Parties not becoming aware (whether as a result of their due
diligence analyses and review or otherwise) after the date of the Original Commitment Letter
of any material information not previously known to each Commitment Party which is
inconsistent in a material and adverse manner with the information (taken as a whole)
disclosed to such Commitment Party prior to the date of the Original Commitment Letter
(other than information relating to any event or development occurring after the date of the
Original Commitment Letter not contemplated by such information).

2. Commitment Termination

Each Commitment Party’s commitment set forth in this Commitment Letter will terminate on the
earlier of (i) November 30, 2005, (ii) the date the Operative Documents become effective and (iii)
the termination of the Acquisition Agreement. Before such date, each Commitment Party may
terminate its commitment hereunder if any

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event occurs or information becomes available that results or would reasonably be expected to
result in the failure to satisfy any condition set forth in Section 1.

3. Syndication

Each Commitment Party reserves the right, before or after the execution of the Operative Documents,
to syndicate all or a portion of its commitment to one or more other financial institutions that
will become parties to the Operative Documents pursuant to syndications to be managed by Citigroup
in consultation with you (the financial institutions becoming parties to the Operative Documents
being collectively referred to herein as the “Lenders”). Borrower understands that
Citigroup intends to commence syndication efforts promptly after you publicly announce the
Transactions and it may elect to appoint one or more agents to assist in such syndication efforts.

Citigroup will act as the Joint Lead Arranger and Joint Book Runner (with “physical bookrunner
status”) for the First Priority Facilities and the Term C Facility, the Syndication Agent for the
Term C Facility and Administrative Agent with respect to each of the Senior Secured Credit
Facilities, ABN AMRO Inc. will act as the Joint Lead Arranger and Joint Book Runner for the First
Priority Facilities, ABN AMRO Bank, N.V. will act as Syndication Agent for the First Priority
Facilities, GSCP will act as the Joint Lead Arranger and Joint Book Runner for the Term C Facility
and Citigroup will manage all aspects of the syndication of the Senior Secured Credit Facilities in
consultation with Borrower and the other Commitment Parties, including the timing of all offers to
potential Lenders, the determination of all amounts offered to potential Lenders, the selection of
Lenders, the allocation of commitments among the Lenders, the assignment of any titles and the
compensation to be provided to the Lenders; provided that (i) Citigroup’s name shall
receive “top left” placement on any marketing materials with respect to the Senior Secured Credit
Facilities, (ii) ABN AMRO’s name shall receive “top right” placement on any marketing materials
with respect to the First Priority Facilities and (iii) GSCP’s name shall receive “top right”
placement on any marketing materials relating solely to the Term C Facility.

Borrower shall take all action that Citigroup may reasonably request to assist it in forming a
syndicate acceptable to Citigroup and Borrower. Borrower’s assistance in forming such syndicate
shall include but not be limited to: (i) making senior management, representatives and advisors of
Borrower available to participate in informational meetings with potential Lenders at such times
and places as Citigroup may reasonably request; (ii) using its commercially reasonable efforts to
ensure that the syndication effort benefits from Seller’s existing lending relationships; (iii) at
Citigroup’s reasonable request, assisting in the preparation of a confidential information
memorandum for the Senior Secured Credit Facilities and other marketing materials to be used in
connection with the syndication; (iv) promptly providing the Commitment Parties with all
information reasonably deemed necessary by them to successfully complete the syndication; and (v)
obtaining ratings from Standard & Poor’s Ratings Service (“S&P”) and Moody’s Investors
Service (“Moody’s”) for each of the Senior Secured Credit Facilities promptly after the
date of this Commitment Letter.

At the reasonable request of Citigroup, Borrower agrees to assist in the preparation of a version
of the information package and presentation to be provided to prospective Lenders that does not
contain material non-public information concerning Borrower, Gemini or Seller, their respective
affiliates or their securities. In addition, Borrower agrees that, except in the case
of financial projections, unless specifically labeled “Private — Contains Non-Public Information,”
no information, documentation or other data disseminated to prospective Lenders in connection with
the syndication of the Senior Secured Credit Facilities, whether through an internet site
(including, without limitation, an IntraLinks workspace), electronically, in presentations at
meetings or otherwise, will contain any material non-public information concerning Borrower,
Gemini, Seller, their respective affiliates or their securities.

To ensure an orderly and effective syndication of the Senior Secured Credit Facilities, Borrower
agrees that, until the earlier of (i) the 90th day following the Closing Date and (ii) a Successful
Syndication (as defined in the Fee Letter), it will not and will use commercially reasonable
efforts to cause Gemini and each of their respective affiliates (other than Seller and its
affiliates other than the Borrower) to not (including through enforcing its rights under Section
6.1(g) of the Acquisition Agreement), syndicate or issue, attempt to syndicate or issue, an-

-3-

 

nounce or authorize the announcement of the syndication or issuance of, or engage in discussions
concerning the syndication or issuance of, any debt security or commercial bank or other debt
facility (including any renewals thereof unless such renewals are permitted by the Acquisition
Agreement, do not increase the amount thereof and are with the same lender or group of lenders),
without the prior written consent of Citigroup other than the Senior Secured Credit Facilities
and/or the Notes.

Borrower agrees that no additional agents, co-agents or lead arrangers will be appointed, or other
titles conferred, without the consent of Citigroup. Borrower agrees that no Lender or other person
will receive any compensation of any kind for its participation in the Senior Secured Credit
Facilities or otherwise in connection with the matters addressed herein, except as expressly
provided in the Fee Letter or in the Exhibits.

4. Fees

In addition to the fees described in Annex I to Exhibit B, Borrower will pay (or cause to
be paid) fees set forth in the letter agreement dated the date hereof (the “Fee Letter”)
between Borrower and the Commitment Parties. The terms of the Fee Letter are an integral part of
each Commitment Party’s commitment hereunder and constitute part of this Commitment Letter for all
purposes hereof. Each of the fees described in Annex I to Exhibit B shall be
nonrefundable when paid.

5. Indemnification

Borrower agrees to indemnify and hold harmless each Commitment Party and each of their respective
affiliates and each of their respective officers, directors, partners, employees, agents, advisors
and representatives (each, an “Indemnified Person”) from and against any and all claims,
damages, losses, liabilities and reasonable expenses (including, without limitation, reasonable
fees and disbursements of counsel), joint or several, that may be incurred by or asserted or
awarded against any Indemnified Person (including, without limitation, in connection with, any
investigation, litigation or proceeding or the preparation of any defense in connection therewith)
in each case arising out of or in connection with or relating to the Original Commitment Letter,
this Commitment Letter or the Operative Documents or the transactions contemplated hereby or
thereby, or any use made or proposed to be made with the proceeds of the Senior Secured Credit
Facilities, except to the extent such claim, damage, loss, liability or expense is found in a final
judgment by a court of competent jurisdiction to have resulted from such Indemnified Person’s gross
negligence or willful misconduct by such Indemnified Person. In the case of an investigation,
litigation or proceeding to which the indemnity in this paragraph applies, such indemnity shall be
effective, whether or not such investigation, litigation or proceeding is brought by Borrower,
Gemini, the Seller, any of their respective securityholders or creditors, an Indemnified Person or
any other person, or an Indemnified Person is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated.

If the foregoing indemnity is unavailable to any Indemnified Person for any reason, Borrower will
contribute to the amount paid or payable by such Indemnified Person as a result of any claims,
damages, liabilities, losses or reasonable expenses, in such proportion as is appropriate to
reflect (i) the relative economic interests of such Indemnified Person, on the one hand, and
Borrower, Gemini and the Seller, on the other hand, in the matters contemplated by this Commitment
Letter, (ii) the relative fault of each of them in connection with such claim, damage, liability or
reasonable expense and (iii) any other relevant equitable considerations.

No Indemnified Person shall have any liability (whether direct or indirect, in contract, tort or
otherwise) to Borrower, Gemini, the Seller or any of their securityholders or creditors for or in
connection with the transactions contemplated hereby, except to the extent such liability is
determined in a final judgment by a court of competent jurisdiction to have resulted from such
Indemnified Person’s gross negligence or willful misconduct. In no event, however shall any
Indemnified Party be liable for any special, indirect, consequential or punitive damages
(including, without limitation, any loss of profits, business or anticipated savings).

-4-

 

6. Costs and Expenses

Borrower shall pay or reimburse each Commitment Party within 10 days of receiving a written demand
for all reasonable and invoiced costs and expenses incurred by such Commitment Party (whether
incurred before or after the date hereof) in connection with the Senior Secured Credit Facilities
and the preparation, negotiation, execution and delivery of the Original Commitment Letter, this
Commitment Letter, the Operative Documents and any security arrangements in connection therewith,
including, without limitation, the reasonable and invoiced fees and disbursements of counsel,
regardless of whether any of the transactions contemplated hereby are consummated. Borrower
further agrees to pay all reasonable and invoiced costs and expenses of each Commitment Party
(including, without limitation, reasonable fees and disbursements of counsel) incurred in
connection with the enforcement of any of its rights and remedies hereunder.

7. Confidentiality

By accepting delivery of this Commitment Letter, Borrower agrees that this Commitment Letter and
the Original Fee Letter (as defined in the Fee Letter) are for its confidential use only and that
neither their existence nor the terms hereof or thereof will be disclosed by it to any person other
than the officers, directors, employees, accountants, attorneys, agents, representatives and
advisors of Borrower, and then only on a confidential basis in connection with the transactions
contemplated hereby. Notwithstanding the foregoing, (i) Borrower may disclose this Commitment
Letter (other than the Fee Letter) to Gemini, the Seller, and their respective officers, directors,
employees, accountants, attorneys, agents, representatives and advisors on a confidential basis in
connection with the Transactions or, with the consent of the Commitment Parties, in connection with
the syndication of the Senior Secured Credit Facilities, (ii) Borrower (or any of its affiliates)
may file a copy of this Commitment Letter (other than the Fee Letter) as required by law or any
judicial, administrative or regulatory proceeding to be filed and (iii) Borrower (or any of its
affiliates) may make such other public disclosures of the terms and conditions hereof and the
Original Fee Letter as Borrower is required by law or any judicial, administrative or regulatory
proceeding to make. Notwithstanding the foregoing, upon acceptance by you of this Commitment
Letter and your delivery of an executed signature page to this Commitment Letter to the Commitment
Parties, your confidentiality obligations with respect to this Commitment Letter (but not the Fee
Letter or the Original Fee Letter) shall terminate.

8. Representations and Warranties

Borrower represents and warrants that (i) all information (other than projections and
forward-looking information) that has been or will hereafter be made available to any Commitment
Party, Lender or potential Lender by or on behalf of Borrower, Gemini, the Seller or any of their
respective representatives in connection with the transactions contemplated hereby is and will be,
when taken as a whole, complete and correct in all material respects and does not and will not
contain any untrue statement of a material fact or omit to state a material fact necessary in order
to make the statements contained therein not misleading in light of the circumstances under which
such statements were or are made; provided, that with respect to information relating to the Seller
or Gemini, such representation and warranty is limited to the best of Borrower’s knowledge and (ii)
all projections and other forward-looking information, if any, that have been or will be prepared
by or on behalf of Borrower, Gemini, the Seller or any of their respective representatives and made
available to any Commitment Party, Lender or potential Lender have been or will be prepared in good
faith based upon assumptions that are believed by Borrower, Gemini or the Seller, as applicable, to
be reasonable at the time made and at the time the related projections or other forward-looking
information are made available by any such person (it being understood that (1) no assurance has
been or will be given that any projections or forward-looking information will be achieved, (2) the
projections and forward-looking information are not a guaranty of future performance, (3) actual
results may differ from projected or forward-looking results and such differences may be material
and (4) with respect to projections and forward-looking information relating to Gemini or Seller,
such representation and warranty is limited to the best of Borrower’s knowledge). If, at any time
from the date hereof until the execution and delivery of the Operative Documents, any of the
representations and warranties in the preceding sentence would be incorrect in any material respect
if the information or projections were being furnished, and such representations

-5-

 

and warranties were being made, at such time, then Borrower will promptly supplement the
information and the projections so that such representations and warranties will be correct under
those circumstances.

In issuing this Commitment Letter and in arranging the Senior Secured Credit Facilities including
the syndications of the Senior Secured Credit Facilities, each Commitment Party will be entitled to
use, and to rely on the accuracy (subject, in the case of projections and forward-looking
information, to the inherent limitations on such information as described in the preceding
paragraph) of, the information furnished to it by or on behalf of Borrower, Gemini, the Seller or
any of their respective representatives without responsibility for independent verification
thereof.

9. No Third Party Reliance; Sharing Information

The agreements of each Commitment Party hereunder and of any Lender that issues a commitment to
provide financing under the Senior Secured Credit Facilities are made solely for the benefit of
Borrower and may not be relied upon or enforced by any other person. This Commitment Letter is not
intended to create a fiduciary relationship among the parties hereto.

Borrower acknowledges that each Commitment Party may provide debt financing, equity capital or
other services (including financial advisory services) to parties whose interests regarding the
transactions described herein or otherwise may conflict with Borrower’s interests. Consistent with
each Commitment Party’s policy to hold in confidence the affairs of its clients and any applicable
confidentiality agreements or arrangements, no Commitment Party will furnish confidential
information obtained from Borrower or its affiliates to any of its other clients. Furthermore, no
Commitment Party will use in connection with the transactions contemplated hereby, or furnish to
Borrower, confidential information obtained by such Commitment Party from any other person.
Furthermore, as Borrower knows, each Commitment Party may from time to time effect transactions,
for its own account or the account of customers, and hold positions in loans or options on loans of
Borrower, Gemini, Seller and other companies that may be the subject of this arrangement. In
addition, each Commitment Party is a full service securities firm and as such may from time to time
effect transactions, for its own account or the account of customers, and hold positions in
securities or options on securities of Borrower, Gemini, Seller and other companies that may be the
subject of this arrangement.

10. Assignments

Borrower may not assign or delegate any of its rights or obligations under this Commitment Letter
or any Commitment Party’s commitment hereunder without each Commitment Party’s prior written
consent, and any attempted assignment without such consent shall be void.

11. Amendments

This Commitment Letter may not be amended or any provision hereof waived or modified except by an
instrument in writing signed by each party hereto. Any Commitment Party may employ the services of
its affiliates in providing certain services hereunder and may, subject to compliance with
applicable securities laws and the terms of any other applicable confidentiality agreement,
exchange with such affiliates information concerning Borrower, Gemini, Seller and other companies
that may be the subject of this arrangement, and such affiliates shall be entitled to the benefits
afforded to the Commitment Parties hereunder.

12. Governing Law, Etc.

This Commitment Letter shall be governed by, and construed in accordance with, the laws of the
State of New York. This Commitment Letter sets forth the entire agreement among the parties with
respect to the matters addressed herein and supersedes all prior communications, written or oral,
with respect hereto. This Commitment Letter may be executed in any number of counterparts, each of
which, when so executed, shall be deemed to be

-6-

 

an original and all of which, taken together, shall constitute one and the same Commitment Letter.
Delivery of an executed counterpart of a signature page to this Commitment Letter by telecopier
shall be as effective as delivery of a manually executed counterpart of this Commitment Letter.
Sections 3 (but only if the Closing Date occurs) through 8, 12 and 13 of this Commitment Letter and
the Fee Letter shall survive the termination of the Commitment Parties’ commitments hereunder
provided, that your obligations under the provisions of Sections 5 through 8 shall
automatically terminate and, to the extent applicable, be superseded by the corresponding
provisions of the Operative Documents upon the execution and delivery thereof. You acknowledge
that information and documents relating to the Senior Secured Credit Facilities may be transmitted
through Intralinks, the internet or similar electronic transmission systems. Upon your execution
and delivery of this Commitment Letter, the commitments under the Original Commitment Letter shall
terminate and the Original Commitment Letter shall be of no further force and effect and the
provisions of this Commitment Letter shall thereafter be binding upon you and the Commitment
Parties in accordance with its terms.

13. Waiver of Jury Trial, Etc.

Each party hereto irrevocably waives all right to trial by jury in any action, proceeding or
counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this
Commitment Letter or the transactions contemplated hereby or the actions of the parties hereto in
the negotiation, performance or enforcement hereof.

With respect to all matters relating to this Commitment Letter, the Exhibits, the Fee Letter and
the Engagement Letter, you hereby irrevocably (i) submit to the non-exclusive jurisdiction of any
New York State or Federal court sitting in the State of New York, County of New York, and any
appellate court from any thereof, (ii) agree that all claims related hereto may be heard and
determined in such courts, (iii) waive, to the fullest extent it may effectively do so, the defense
of an inconvenient forum, (iv) agree that a final judgment of such courts shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by
law, (v) waive any immunity (sovereign or otherwise) from jurisdiction of any court or from any
legal process or setoff to which you or your properties or assets may be entitled and (vi) consent
to the service of any and all process with respect to all matters relating to this Commitment
Letter by the mailing of copies of such process to Borrower at its address shown above, or in any
other manner permitted by law.

14. Patriot Act

Each Commitment Party hereby notifies you that pursuant to the requirements of the USA Patriot Act,
Title III of Pub. L. 107-56 (signed into law October 26, 2001) (the “Patriot Act”), each
Commitment Party and the Lenders are required to obtain, verify and record information that
identifies Borrower, which information includes the name, address, tax identification number and
other information regarding Borrower that will allow such Commitment Party or such Lender to
identify Borrower in accordance with the Patriot Act. This notice is given in accordance with the
requirements of the Patriot Act and is effective as to each Commitment Party and the Lenders.

Please indicate your acceptance of the provisions hereof by signing the enclosed copy of this
Commitment Letter and the Fee Letter and returning them to John McAuley, Director, Citigroup Global
Markets Inc., 390 Greenwich Street, New York, New York 10013 (facsimile: (212) 723-8590),
Alexander Byers, Director, ABN AMRO Incorporated, 55 East 52nd Street, New York, New York 10055
(facsimile: (212) 409-7497), and Thomas Spoto, Vice President, Goldman Sachs Credit Partners L.P.,
85 Broad Street, New York, New York 10004 facsimile (212) 902-3000, at or before 5:00 p.m. (New
York City time) on April 22, 2005, the time at which the provisions of this Commitment
Letter (if not so accepted prior thereto) shall terminate.

[Signature Page Follows]

-7-

 

If you elect to deliver this Commitment Letter by telecopier, please arrange for the executed
original to follow by next-day courier.

	 	 	 	 	 
	 	Very truly yours,

CITICORP NORTH AMERICA, INC.

 	 
	 	By:  	 /s/
JOHN McAULEY	 
	 	 	Name:  	John McAuley	 
	 	 	Title:  	Vice President	 
	 

	 	 	 	 	 
	 	CITIGROUP GLOBAL MARKETS INC.

 	 
	 	By:  	 /s/
JOHN McAULEY	 
	 	 	Name:  	John McAuley	 
	 	 	Title:  	Director	 
	 

	 	 	 	 	 
	 	ABN AMRO INCORPORATED

 	 
	 	By:  	 /s/
CHARLES F. RANDOLPH	 
	 	 	Name:  	Charles F. Randolph	 
	 	 	Title:  	Managing Director	 
	 

	 	 	 	 	 
	 	ABN AMRO BANK, N.V.

 	 
	 	By:  	 /s/
CHARLES F. RANDOLPH	 
	 	 	Name:  	Charles F. Randolph	 
	 	 	Title:  	Managing Director	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 /s/ LINDA BOARDMAN	 
	 	 	Name:  	Linda Boardman	 
	 	 	Title:  	Vice President and Director	 
	 

	 	 	 	 	 
	 	GOLDMAN SACHS CREDIT PARTNERS L.P.

 	 
	 	By:  	 /s/
WILLIAM W. ARCHER	 
	 	 	Name:  	William W. Archer	 
	 	 	Title:  	Managing Director	 

-8-

 

	 	 	 	 	 

Accepted and agreed to as of

the date first written above:

ACCO WORLD CORPORATION

	 	 	 	 
	 	 
	By:  	/s/
NEAL FENWICK	 
	 	Name:  Neal Fenwick	 	 
	 	Title:  EVP, Finance and Administration	 	 

-9-

 

	 	 	 	 	 

	 	 	 
	CONFIDENTIAL

	 	EXHIBIT A

Transaction Description

All capitalized terms used herein but not defined herein shall have the meanings provided in the
Commitment Letter relating to this Transaction Description. The following transactions, including
the Acquisition and the Merger, are referred to herein as the “Transactions.”

	1.	 	General Binding Corporation (“Gemini”), Borrower, a newly formed Delaware corporate
subsidiary of Borrower (“Acquisition Sub”) and Fortune Brands, Inc.
(“Seller”) has entered into an agreement dated as of March 15, 2005 (the
“Acquisition Agreement” and together with the schedules thereto and the other
Transaction Agreements (as defined in the Acquisition Agreement), the “Acquisition
Documents”), pursuant to which the following transactions will occur substantially
simultaneously: (i) Borrower will issue a note to Seller in the aggregate principal amount of
$625.0 million (the “Dividend Note”), (ii) Seller will cause all of the shares of
capital stock of Borrower to be distributed to Seller’s stockholders (the “Spin-Off”)
and (iii) Gemini will be merged (the “Merger”) with and into Acquisition Sub, with
Gemini being the surviving corporation and a wholly-owned subsidiary of Borrower and
stockholders of Gemini receiving newly issued shares of common stock of Borrower representing
approximately 34% of the outstanding common stock of Borrower after giving effect to the
Transactions.

	2.	 	Borrower will borrow (i) $200.0 million of loans under a new Term A Loan Facility (the
“Term A Facility”), (ii) $400.0 million of loans under a new Term B Loan Facility (the
“Term B Facility”) and (iii) $7.4 million of loans under a new Revolving Credit
Facility (the “Revolving Facility” and together with the Term A Facility and the Term
B Facility, the “First Priority Facilities”).

	3.	 	Borrower will either (i) borrow $350.0 million in loans under a new Term C Loan Facility (the
“Term C Facility” and, together with the First Priority Facilities, the “Senior
Secured Credit Facilities”) or (ii) issue $350.0 million in aggregate principal amount of
its senior subordinated notes (the “Notes”) in a public offering or in a Rule 144A or
other private placement.

	4.	 	Costs and expenses incurred in connection with the foregoing transactions will be paid in an
amount not to exceed approximately $48.2 million (the “Transaction Costs”).

	5.	 	Borrower will use the proceeds of the First Priority Facilities and the Term C Facility or
the Notes to (i) repay the Dividend Note, (ii) repay all outstanding indebtedness (the
“Indebtedness to be Repaid”) of Borrower, Gemini and their subsidiaries and (iii) pay
the Transaction Costs.

	6.	 	The estimated sources and uses of the funds necessary to consummate the Acquisition and the
other Transactions are set forth on Annex I hereto (the “Sources and Uses of
Funds”).

A-1

 

ANNEX I

to Transaction Description

Sources and Uses of Funds

($ in millions)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Sources	 	 	 	 	 	Uses	 	 	 	 
	Term A Facility
	 	$	200.0	 	 	Repayment of Dividend Note	 	$	625.0	 
	Term B Facility
	 	 	400.0	 	 	Repayment of Indebtedness to be Repaid	 	 	301.5	 
	Initial Drawing on Revolving Facilitya
	 	 	0	 	 	Transaction Fees and Expenses	 	 	48.2	 
	Cash on Hand
	 	 	24.7	 	 	 	 	 	 	 	 	 
	Term C Facility or Notes
	 	 	350.0	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TOTAL SOURCES
	 	$	974.7	 	 	TOTAL USES	 	$	974.7	 
	 
	 	 	 	 	 	 	 	 	 	 

 

	a	 	Total commitments of $150.0 million at
closing.

A-I-1

 

	 	 	 
	CONFIDENTIAL

	 	EXHIBIT B

Senior Secured Credit Facilities

Summary of Principal Terms and Conditions

All capitalized terms used herein but not defined herein shall have the meanings provided in the
Transaction Description relating to this Summary of Principal Terms and Conditions.

	 	 	 	 	 
	Borrower:	 	ACCO World Corporation following the merger of Gemini into
Acquisition Sub (“Borrower”) and, with respect to any foreign
subfacility, certain of Borrower’s subsidiaries to be agreed.
	 
	 	 	 	 
	Acquisition:	 	As described in the Transaction Description.
	 
	 	 	 	 
	Administrative Agent:	 	Citicorp North America, Inc. (in its capacity as Administrative
Agent, the “Agent”).
	 
	 	 	 	 
	Joint Lead Arranger and Joint Book-
Runners for the First Priority Facilities:	 	Citigroup Global Markets Inc. (“CGMI”) and ABN AMRO Incorporated
(“ABN AMRO Inc.” and together with CGMI in such capacity, the
“First Priority Facilities Lead Arrangers”).
	 
	 	 	 	 
	Joint Lead Arrangers and Joint Book
Runners for the Term C Facility:	 	CGMI and Goldman Sachs Credit Partners L.P. (“GSCP” and together
with CGMI in such capacity, the “Term C Facility Lead Arrangers”;
the First Priority Facilities Lead Arrangers and the Term C
Facility Lead Arrangers are collectively referred to as the “Lead
Arrangers”).
	 
	 	 	 	 
	Syndication Agent for First Priority

Facilities:	 	ABN AMRO Bank, N.V.
	 
	 	 	 	 
	Syndication Agent for Term C Facility:	 	CGMI.
	 
	 	 	 	 
	Documentation Agent:	 	GSCP.
	 
	 	 	 	 
	Lenders:	 	A syndicate of financial institutions arranged by the Lead
Arrangers in a syndication to be managed by CGMI in consultation
with Borrower (the “Lenders”).
	 
	 	 	 	 
	Senior Secured Credit Facilities:

	 	(A)	 	A Senior First Lien Term Loan A Facility in an aggregate
principal amount of $200.0 million (the “Term A Facility”; loans
thereunder the “Term A Loans”).
	 
	 	 	 	 
	 

	 	(B)	 	A Senior First Lien Term Loan B Facility in an aggregate
principal amount of $400.0 million (the “Term B Facility” and
together with the Term A Facility, the “First Priority Term
Facilities”; the loans under the Term B Facility, the “Term B
Loans”).
	 
	 	 	 	 
	 

	 	(C)	 	A Senior Second Lien Term Loan C Facility in an aggregate
principal amount of $350.0 million (the “Term C Facility” and
together with the First Priority Term Facilities, the “Term
Facilities”; the loans under the Term C Facility, the “Term C
Loans”).

B-1

 

	 	 	 	 	 
	 

	 	(D)	 	A Senior Revolving Credit Facility in an aggregate principal
amount of $150.0 million (the “Revolving Facility” and together
with the First Priority Term Facilities, the “First Priority
Facilities”).
	 
	 	 	 	 
	 	 	Dollar equivalent amounts to be agreed of the Term A Facility
and/or the Revolving Facility will be available for borrowings in
Euros, UK Sterling, Canadian Dollars and Australian Dollars by
certain of Borrower’s foreign subsidiaries on terms and
conditions to be agreed and dollar equivalent amounts to be
agreed of the Term B Facility may also be available for
borrowings in Euros by certain of the Borrowers foreign
subsidiaries on terms and conditions to be agreed (it being
understood that the applicable margins set forth on Annex I may
not be available for foreign currency borrowings under any
portion of the Term B Facility).
	 
	 	 	 	 
	Purpose and Availability:	 	(A)	 	Term Facilities
	 
	 	 	 	 
	 	 	The full amount of the Term Facilities will be available in a
single drawing on the date on which the Merger is consummated
(the “Closing Date”) and applied to consummate the Transactions
as set forth in the Transaction Description. Amounts borrowed
under the Term Facilities that are repaid or prepaid may not be
reborrowed.
	 
	 	 	 	 
	 

	 	(B)	 	Revolving Facility
	 
	 	 	 	 
	 	 	The proceeds of loans under the Revolving Facility will be used
by Borrower for general corporate purposes. Loans under the
Revolving Facility will be available on and after the Closing
Date and at any time before the final maturity of the Revolving
Facility, in minimum principal amounts to be agreed; provided,
however, that no more than $25.0 million of loans (increased by a
seasonal working capital adjustment in an amount to be agreed)
may be drawn under the Revolving Facility on the Closing Date.
Amounts repaid under the Revolving Facility may be reborrowed.
	 
	 	 	 	 
	 	 	A portion of the Revolving Facility not in excess of an amount to
be agreed upon shall be available for the issuance of letters of
credit (the “Letters of Credit”) by Lenders to be agreed upon (in
such capacity, the “Issuing Lender”). No Letter of Credit shall
have an expiration date after the earlier of (a) one year after
the date of issuance and (b) five business days prior to the
Revolving Termination Date (as defined below), provided that any
Letter of Credit with a one-year tenor may, subject to the
conditions set forth in the Operative Documents, provide for the
renewal thereof for additional one-year periods (which shall in
no event extend beyond the date referred to in clause (b) above).

B-2

 

	 	 	 	 	 
	 	 	Drawings under any Letter of Credit shall be reimbursed by
Borrower (whether with its own funds or with the proceeds of
Revolving Loans) within one business day. To the extent that
Borrower does not so reimburse the Issuing Lender within one
business day, the Lenders under the Revolving Facility shall be
irrevocably and unconditionally obligated to reimburse the
Issuing Lender on a pro rata basis.
	 
	 	 	 	 
	 	 	A portion of the Revolving Facility not in excess of an amount to
be agreed upon shall be available for swingline loans (the
“Swingline Loans”) from one or more Lenders to be agreed upon (in
such capacity, the “Swingline Lender”) on same-day notice. Any
such Swingline Loans will reduce availability under the Revolving
Facility on a dollar-for-dollar basis. Each Lender under the
Revolving Facility shall acquire, under certain circumstances, an
irrevocable and unconditional pro rata participation in each
Swingline Loan.
	 
	 	 	 	 
	Final Maturity and Amortization:

	 	(A)	 	The Term A Facility will mature on the date that is five
years after the Closing Date, and will amortize in quarterly
installments over such period in amounts to be determined.
	 
	 	 	 	 
	 
	 	(B)	 	The Term B Facility will mature on the date that is 7 years
after the Closing Date, and will amortize in quarterly
installments over such period in an amount equal to 1% per annum
with the balance due at final maturity.
	 
	 	 	 	 
	 

	 	(C)	 	The Term C Facility will mature on the date that is seven
years and six months after the Closing Date, and will amortize in
quarterly installments over such period in an amount equal to 1%
per annum with the balance due at final maturity.
	 
	 	 	 	 
	 

	 	(D)	 	The Revolving Facility will mature on the date that is 5
years after the Closing Date (the “Revolving Termination Date”).
	 
	 	 	 	 
	Interest Rates and Fees:	 	As set forth on Annex I hereto and in the Fee Letter.
	 
	 	 	 	 
	Guarantors:	 	Each of Borrower’s direct and indirect domestic subsidiaries
existing on the Closing Date or thereafter created or acquired
shall unconditionally guarantee, on a joint and several basis,
all obligations of Borrower under the Senior Secured Credit
Facilities and (to the extent relating to the Loans) under each
interest rate protection agreement and non-speculative currency
exchange rate agreement entered into with a Lender or an
affiliate of a Lender. Any foreign subfacility shall be
guaranteed on a joint and several basis by Borrower and other
entities acceptable to the Agent (with due regard for foreign tax
and other considerations). Each guarantor of any of the Senior
Secured Credit Facilities is herein referred to as a “Guarantor”
and its guarantee is referred to herein as a “Guarantee”;
Borrower and the Guarantors are herein referred to as the “Credit
Parties.”

B-3

 

	 	 	 	 	 
	Collateral:	 	The First Priority Facilities, the Guarantees of the First
Priority Facilities, and (to the extent relating to the Loans)
the obligations of Borrower under each interest rate protection
agreement and non-speculative currency exchange rate agreement
entered into with a Lender or any affiliate of a Lender will be
secured by (A) a perfected first priority lien on, and pledge of,
all of the intercompany notes of Borrower and all of the capital
stock and intercompany notes of each of the direct and indirect
subsidiaries of Borrower existing on the Closing Date or
thereafter created or acquired, except that with respect to
non-U.S. subsidiaries such lien and pledge shall be limited to
65% of the capital stock of “first-tier” non-U.S. subsidiaries
and (B) a perfected first priority lien on, and security interest
in, all of the material tangible and intangible properties and
assets (including all contract rights, real property interests,
trademarks, trade names, equipment and proceeds of the foregoing)
of each Credit Party (collectively, the “Collateral”), except in
each case for those properties and assets as to which the Agent
shall reasonably determine that the costs of obtaining such
security interest are excessive in relation to the value of the
security to be afforded thereby (it being understood that none of
the foregoing shall be subject to any other liens or security
interests, except for a second priority lien securing the Term C
Facility and certain customary exceptions and permitted liens to
be agreed upon). In addition any foreign subfacility will be
secured by collateral acceptable to the Agent (with due regard
for foreign tax and other considerations).
	 
	 	 	 	 
	 	 	The Term C Facility will be secured by a second priority lien on
and pledge of the Collateral subject to certain customary
exceptions and permitted liens to be agreed upon.
	 
	 	 	 	 
	 	 	All such security interests will be created pursuant to customary
documentation reasonably satisfactory in all respects to the
Agent and Borrower, and on the Closing Date, such security
interests shall have become perfected (or arrangements for the
perfection thereof reasonably satisfactory to the Agent shall
have been made) and the Agent shall have received reasonably
satisfactory evidence thereof. The respective rights of the
Lenders under the First Priority Facilities and the Term C
Facility with respect to the Collateral will be governed by an
intercreditor agreement in form and substance satisfactory to the
Agent.
	 
	 	 	 	 
	Optional Prepayments and
Reductions in Commitments:	 	Optional prepayments of borrowings under the Senior Secured
Credit Facilities, and optional reductions of the unutilized
portion of the Revolving Facility commitments, will be permitted
at any time, in minimum principal amounts to be agreed, without
premium or penalty, subject to reimbursement of the Lenders’
redeployment costs in the case of a prepayment of LIBOR
borrowings other than on the last day of the relevant interest
period; provided that no prepayment of the Term C Facility shall
be permitted prior to repayment of the First Priority Facilities
(other than with the proceeds of the Notes or any other
incurrence of senior subordinated debt).

B-4

 

	 	 	 	 	 
	Mandatory Prepayments:	 	Subject to the next paragraph, Loans under the Senior Secured
Credit Facilities shall be prepaid with (a) 50% of Excess Cash
Flow (to be defined), such 50% reducing to 25% for any fiscal
year for which the total leverage ratio is less than a level to
be determined and further reducing to 0% for any fiscal year for
which the total leverage ratio is less than a level to be
determined, (b) 100% of the net cash proceeds of all
non-ordinary-course asset sales or other dispositions of property
by Borrower and its subsidiaries (including insurance and
condemnation proceeds in excess of an agreed amount), subject to
the right of Borrower to reinvest and subject to limited
exceptions to be agreed, (c) 100% of the net proceeds of
issuances of debt obligations of Borrower and its subsidiaries,
and (d) 50% of the net proceeds of issuances of equity of
Borrower, subject to exceptions to be agreed including for
investments, capital expenditures or repayment of indebtedness
within certain time periods.
	 
	 	 	 	 
	Application of Prepayments:	 	All optional prepayments applicable to the Senior Secured Credit
Facilities shall be applied first, to the First Priority
Facilities as elected by Borrower and second, to the Term C
Facility. All mandatory prepayments (except as provided below
with respect to a refinancing of the Term C Facility with the
proceeds of the Notes, other senior subordinated indebtedness or
the proceeds of equity issuances) shall be applied to the First
Priority Term Facilities and, as to any such facility, pro rata
to the remaining amortization payments thereunder. When there
are no longer outstanding loans under the First Priority Term
Facilities, mandatory prepayments will be applied to permanently
reduce commitments under the Revolving Facility (with
corresponding prepayments of outstanding obligations under the
Revolving Facility, if necessary). When there are no longer any
outstanding loans or commitments under the First Priority
Facilities, mandatory prepayments will be applied pro rata to the
remaining amortization payments under the Term C Facility.
Amounts prepaid in respect of the Term Loans may not be
reborrowed.
	 
	 	 	 	 
	 	 	The proceeds of the Notes or any other incurrence of senior
subordinated debt and the amount of any equity issuance that is
required to be applied to a prepayment of the Senior Secured
Credit Facilities shall be applied to reduce to zero the
commitments in respect of or, if after the Closing Date, to
reduce to zero the funded amount of, first, the Term C Facility,
second, the First Priority Term Facilities, and third the
Revolving Facility.
	 
	 	 	 
	Representations and Warranties:	 	Usual for facilities and transactions of this type, in each case,
subject to customary exceptions, limitations and qualifications
to be agreed and other exceptions reasonably acceptable to the
Commitment Parties, including, without limitation:
	 
	 	 	 	 
	 

	 	1.	 	Corporate status and authority.
	 
	 	 	 
	 

	 	2.	 	Execution, delivery, and performance of loan documents do not
violate law or other agreements.

B-5

 

	 	 	 	 	 
	 

	 	3.	 	No government or regulatory approvals required, other than (i)
approvals in effect or (ii) as to which the failure to obtain
would not be material to Borrower and its subsidiaries, taken as
a whole.
	 
	 	 	 	 
	 

	 	4.	 	Due authorization, execution and delivery of Operative
Documents; Legality, validity, binding effect and enforceability
of the Operative Documents.
	 
	 	 	 	 
	 

	 	5.	 	Ownership of Borrower and its subsidiaries.
	 
	 	 	 	 
	 

	 	6.	 	Accuracy of financial statements and other information.
	 
	 	 	 
	 

	 	7.	 	No event or occurrence which would reasonably be expected to
result in a material adverse change in (i) the business or
condition (financial or otherwise) of Borrower and its
subsidiaries, taken as a whole, (ii) the ability of the Credit
Parties to perform their respective obligations under the
Operative Documents or (iii) the ability of the Agent and the
Lenders to enforce the Operative Documents (any of the foregoing
being a “Material Adverse Change”).
	 
	 	 	 	 
	 

	 	8.	 	Solvency of Borrower and Borrower and its subsidiaries taken
as a whole.
	 
	 	 	 	 
	 

	 	9.	 	No action, suit, investigation, litigation or proceeding
pending or, to be Borrower’s knowledge, threatened in any court
or before any arbitrator or governmental authority that would
reasonably be expected to result in a Material Adverse Change.
	 
	 	 	 	 
	 

	 	10.	 	Payment of taxes.
	 
	 	 	 	 
	 

	 	11.	 	Accurate and complete disclosure.
	 
	 	 	 
	 

	 	12.	 	Compliance with margin regulations.
	 
	 	 	 	 
	 

	 	13.	 	No default under material agreements or the Operative
Documents.
	 
	 	 	 	 
	 

	 	14.	 	Inapplicability of the Investment Company Act and Public
Utility Holding Company Act.
	 
	 	 	 	 
	 

	 	15.	 	Use of proceeds.
	 
	 	 	 	 
	 

	 	16.	 	Insurance.
	 
	 	 	 	 
	 

	 	17.	 	Labor matters.
	 
	 	 	 
	 

	 	18.	 	Material compliance with laws and regulations, including
ERISA, and all applicable environmental laws and regulations.

B-6

 

	 	 	 	 	 
	 

	 	19.	 	Ownership of properties and necessary rights to intellectual
property.
	 
	 	 	 	 
	 
	 	20.	 	Validity, priority and perfection of security interests in
collateral.
	 
	 	 	 
	Conditions Precedent to Initial Borrowing:	 	Those specified in the Summary of Additional Conditions Precedent
as described in Exhibit C.
	 	 
	Conditions Precedent to Each Borrowing:	 	Conditions precedent to each borrowing or issuance of a Letter of
Credit (including at the Closing Date) under the Senior Secured
Facilities will include, (1) the absence (both before and after
the making of any extension of credit) of any continuing default
or event of default under the Operative Documents and (2) the
accuracy of all representations and warranties of the Credit
Parties in the Operative Documents in all material respects
(other than representations and warranties that relate to a
specific date which shall be accurate in all material respects as
of the date made).
	 
	 	 	 
	Reporting Covenants:	 	Usual for facilities and transactions of this type (to be
applicable to Borrower and each of its subsidiaries), including,
without limitation:
	 	 	 	 
	 
	 	1.	 	Delivery of independently audited annual consolidated
financial statements and unaudited quarterly financial
statements.
	 
	 	 
	 
	 	2.	 	Other reporting requirements and notices of default and litigation.
	 
	 	 	 	 
	Affirmative Covenants:	 	Usual for facilities and transactions of this type (to be
applicable to Borrower and its subsidiaries), including, without
limitation, and, in each case, subject to customary exceptions,
limitations and qualifications to be agreed and other exceptions
reasonably acceptable to the Commitment Parties:
	 
	 
	 
	 	1.	 	Preservation of organizational existence.
	 
	 	 	 
	 
	 	2.	 	Material compliance with laws (including ERISA and applicable
environmental laws).
	 
	 	 
	 

	 	3.	 	Conduct of business.
	 
	 

	 	4.	 	Payment of taxes.
	 
	 	 
	 

	 	5.	 	Payment and/or performance of obligations.
	 
	 	 
	 

	 	6.	 	Maintenance of insurance.
	 
	 	 
	 

	 	7.	 	Access to books and records and visitation and access rights.
	 
	 	 
	 

	 	8.	 	Maintenance of books and records.

B-7

 

	 	 	 	 	 
	 

	 	9.	 	Maintenance of properties.
	 
	 	 
	 

	 	10.	 	Use of proceeds.
	 
	 	 	 
	 

	 	11.	 	Environmental matters.
	 
	 	 
	 

	 	12.	 	Provision of additional collateral, subsidiary guarantees
and, subject to thresholds to be agreed, mortgages.
	 
	 
	 

	 	13.	 	Interest rate contracts.
	 
	 	 
	 

	 	14.	 	Further assurances.
	 
	 	 
	Negative Covenants:	 	Usual for facilities and transactions of this type (to be
applicable to Borrower and its subsidiaries), including, without
limitation, subject in each case to customary limitations,
qualifications and exceptions to be agreed and other exceptions
reasonably acceptable to the Commitment Parties:
	 
	 	 
	 

	 	1.	 	Limitations on liens.
	 
	 	 
	 

	 	2.	 	Limitations on debt (including debt incurred by direct or
indirect subsidiaries and obligations in respect of foreign
currency exchange and other hedging arrangements).
	 
	 
	 

	 	3.	 	Limitations on dividends, redemptions and repurchases with
respect to capital stock.
	 
	 	 
	 

	 	4.	 	Limitations on prepayments, redemptions and repurchases of
debt (other than loans under the First Priority Facilities and
other than the prepayment of loans under the Term C Facility with
the proceeds of any Notes issued after the Closing Date, which
Notes shall have terms and conditions reasonably satisfactory to
the Lenders).
	 
	 	 
	 

	 	5.	 	Limitations on loans and investments.
	 
	 	 	 
	 

	 	6.	 	Limitations on capital expenditures.
	 
	 	 
	 

	 	7.	 	Limitations on mergers, consolidations, acquisitions, asset
dispositions and sale/leaseback transactions.
	 
	 	 	 
	 

	 	8.	 	Limitations on transactions with affiliates.
	 
	 	 
	 

	 	9.	 	Limitations on changes in business conducted by Borrower and
its subsidiaries.
	 
	 
	 

	 	10.	 	Limitations on amendment of debt and other material
agreements (other than agreements relating to the operation of
the business of Borrower and its subsidiaries).

B-8

 

	 	 	 	 	 
	 

	 	11.	 	Limitations on restrictions on distributions from
subsidiaries.
	 
	 	 	 
	 

	 	12.	 	Limitations on the issuance and sale of capital stock of
subsidiaries.
	 
	 
	Financial Covenants:	 	The following financial covenants (in each case with definitions
and levels to be agreed) to be tested quarterly following the
Closing Date starting with the fiscal quarter ending December 31,
2005:
	 
	 
	 

	 	1.	 	A maximum ratio (the “Total Leverage Ratio”) of Total Debt (to
be defined) of Borrower and its subsidiaries to trailing four
quarter EBITDA (to be defined) of Borrower and its subsidiaries
starting at a level to be agreed, with stepdowns to be agreed.
	 
	 	 	 
	 

	 	2.	 	A minimum ratio of trailing four quarter EBITDA of Borrower
and its subsidiaries to cash interest expense of Borrower and its
subsidiaries for the same period starting at a level to be
agreed, with stepups to be agreed.
	 
	 	 	 
	Interest Rate Management:	 	An amount designated by the Agent of the projected outstandings
under the Senior Secured Credit Facilities must be hedged on
terms and for a period of time reasonably satisfactory to the
Agent with a counterparty reasonably acceptable to the Agent.
	 
	 	 	 	 
	Events of Default:	 	Usual for facilities and transactions of this type (to be
applicable to Borrower and its subsidiaries) subject to customary
grace periods, exceptions, qualifications and limitations to be
agreed, including, without limitation:
	 
	 	 	 
	 

	 	1.	 	Failure to pay principal when due or, after 5 day grace
period, interest or any other amount when due.
	 
	 	 	 
	 

	 	2.	 	Representations or warranties under the Operative Documents
materially incorrect when given.
	 
	 	 
	 

	 	3.	 	Failure to comply with covenants under the Operative Documents
(with notice and cure periods as applicable).
	 
	 
	 

	 	4.	 	Cross-default and cross-acceleration to debt aggregating an
amount to be agreed or more.
	 
	 	 
	 

	 	5.	 	Unsatisfied judgment or order in excess of an amount to be
agreed individually or in the aggregate.
	 
	 	 	 
	 

	 	6.	 	Bankruptcy or insolvency.
	 
	 
	 

	 	7.	 	ERISA events in amounts to be agreed.
	 
	 	 
	 

	 	8.	 	Change of control or ownership.

B-9

 

	 	 	 	 	 
	 

	 	9.	 	Actual or asserted (by any Credit Party) invalidity of any
collateral or Guarantee or other Operative Document.
	 
	 	 
	Voting:	 	Amendments and waivers of the Operative Documents will require
the approval of Lenders holding more than 50% of the aggregate
amount of the loans and commitments under the Senior Secured
Credit Facilities, except that in certain circumstances the
consent of a greater percentage (or of all) the Lenders (or a
class thereof) may be required and in certain circumstances a
separate class vote of Lenders under the First Priority
Facilities or the Term C Facility may be required.
	 
	 
	Assignment and Participation:	 	The Lenders will have the right to assign loans and commitments
to their affiliates and to other Lenders or to grant a security
interest in the loans to any Federal Reserve Bank without
restriction or to assign loans and commitments to other financial
institutions, with the consent, not to be unreasonably withheld,
of the Agent and Borrower (except that no such consent of
Borrower need be obtained in connection with the primary
syndication or if any default then exists or for any assignment
to a Lender or any affiliate thereof). Minimum aggregate
assignment level (except to other Lenders) of $2,500,000
($1,000,000 for the Term Facilities) and increments of $1,000,000
in excess thereof. The parties to the assignment (other than
Borrower) shall pay to the Agent an administrative fee of $3,500.
	 
	 	 	 
	 	 	Each Lender will have the right to sell participations in its
rights and obligations under the loan documents, subject to
customary restrictions on the participants’ voting rights.
	 
	 	 	 
	Yield Protection, Taxes and Other
Deductions:	 	The loan documents will contain yield protection provisions,
customary for facilities of this nature, protecting the Lenders
in the event of unavailability of funding, funding losses and
reserve and capital adequacy requirements.
	 
	 	 	 
	 	 	All payments to be free and clear of any present or future taxes,
withholdings or other deductions whatsoever (other than income
taxes in the jurisdiction of the Lender’s applicable lending
office) subject to customary exceptions, limitations and
qualifications to be agreed upon.
	 
	 	 
	Expenses and Indemnification:	 	Customary provisions regarding expense reimbursement and
indemnification (including indemnification in connection with the
syndication of the Senior Secured Credit Facilities) by the
Credit Parties subject to customary exceptions, limitations and
qualifications to be agreed upon.
	 
	 	 	 
	Governing Law and Forum:	 	New York.
	 
	 	 	 	 
	Counsel to the Commitment Parties:	 	Cahill Gordon & Reindel LLP.

B-10

 

ANNEX I

to Exhibit B

Senior Secured Credit Facilities

Interest Rates and Fees

	 	 	 
	Interest Rates:

	 	Borrower will be entitled to make borrowings based on ABR
plus the Applicable Margin or LIBOR plus the Applicable
Margin. The “Applicable Margin” shall be, except in the
case of foreign currency borrowings under the Term B
Facility, (A) for LIBOR Loans under the (i) Revolving
Facility, Term A Facility and Term B Facility, 2.00% per
annum and (ii) Term C Facility, 4.00% per annum and (B)
for ABR Loans under the (i) Revolving Facility, Term A
Facility and Term B Facility, 1.00% per annum and (ii)
Term C Facility, 3.00% per annuma.
	 
	 	 
	 

	 	On and after the date (the “Trigger Date”) of delivery of
financial statements for the fiscal quarter ending at
least six months after the Closing Date, the Applicable
Margin for the Revolving Facility and the Term A Facility
shall be determined in accordance with a grid to be
negotiated based on the then current Total Leverage
Ratio.
	 
	 	 
	 

	 	Borrower may elect interest periods of 1, 2, 3 or 6
months (or if available to all Lenders, 9 or 12 months)
for LIBOR borrowings.
	 
	 	 
	 

	 	Calculation of interest shall be on the basis of actual
days elapsed in a year of 360 days (or 365 or 366 days,
as the case may be, in the case of ABR loans, except
where ABR is determined pursuant to clause (iii) of the
definition thereof).
	 
	 	 
	 

	 	Interest will be payable in arrears (a) for loans
accruing interest at a rate based on LIBOR, at the end of
each interest period (or every 90 days for interest
periods greater than 90 days) and on the applicable
maturity date, (b) for loans accruing interest based on
the ABR, quarterly in arrears and on the applicable
maturity date.
	 
	 	 
	 

	 	“ABR” means the highest of (i) Citibank, N.A.’s base
rate; (ii) the three-month certificate of deposit rate
plus 1/2 of 1%, and (iii) the Federal Funds Effective
Rate plus 1/2 of 1%.
	 
	 
	 	LIBOR will at all times include statutory reserves.

 

	a	 	Assumes ratings for the First Priority
Facilities on the Closing Date of at least BB-(stable) from S&P and Ba3(stable)
from Moody’s (the “Baseline Ratings”). If the
Baseline Ratings are not achieved but on the Closing Date the First Priority
Facilities are rated either (i) at least B+(stable) from S&P and Ba3(stable)
from Moody’s or (ii) at least BB-(stable) from S&P and B1(stable) from
Moody’s, then the Applicable Margins for each of the Senior Secured
Credit Facilities shall be increased by 25 basis points over the rates set
forth above. If neither of the two previous sentences applies, then the
Applicable Margins for each of the Senior Secured Credit Facilities will be
increased by 50 basis points over the rates set forth above.

B-I-1

 

	 	 	 
	Default Rate:

	 	The applicable interest rate plus 2% per annum payable
upon demand with respect to overdue amounts only.
	 
	 	 
	Commitment Fees:

	 	A per annum commitment fee on the undrawn portion of the
commitments in respect of the Revolving Facility shall
accrue from the Closing Date at a rate per annum equal to
0.50% payable quarterly in arrears.
	 
	 	 
	 

	 	Borrower shall pay a fee on all outstanding Letters of
Credit at a per annum rate equal to the Applicable Margin
then in effect with respect to LIBOR Loans under the
Revolving Facility on the face amount of each such Letter
of Credit. Such fee shall be shared ratably among the
Lenders participating in the Revolving Facility and shall
be payable quarterly in arrears.
	 
	 	 
	 

	 	A fronting fee not to exceed a rate per annum to be
agreed upon on the face amount of each Letter of Credit
shall be payable quarterly in arrears to the Issuing
Lender for its own account. In addition, customary
administrative, issuance, amendment, payment and
negotiation charges shall be payable to the Issuing
Lender for its own account.

B-I-2

 

	 	 	 
	CONFIDENTIAL
	 	EXHIBIT C

Summary of Additional Conditions Precedent

All capitalized terms used herein but not defined herein shall have the meanings provided in the
Transaction Description relating to this Summary of Additional Conditions Precedent.

The initial borrowing under the Senior Secured Credit Facilities shall be subject to the following
additional conditions precedent:

     1. Consummation of Spin-Off and Merger. The Spin-Off and Merger shall have been consummated
or shall have been consummated in accordance in all material respects with the Acquisition
Documents (without amendment, modification or waiver thereof which is adverse to the Lenders in any
material respect without the prior consent of the Lenders), and the Lenders shall be reasonably
satisfied with the structure of the Spin-Off and Merger, the Acquisition Agreement and all such
related documentation (it being understood that, to the extent described in the Acquisition
Documents, the Lenders are satisfied with such structure). Immediately following the Merger,
Borrower and its subsidiaries will not have any indebtedness outstanding other than the Senior
Secured Credit Facilities (and, if applicable, the Notes). Sources and uses of funds shall be
substantially as set forth in Exhibit A.

     2. Financial Statements. The Commitment Parties shall have received audited consolidated
balance sheets and related statements of income, stockholders’ equity and cash flows of each of
Gemini and Borrower for the three fiscal years most recently ended before the Closing Date promptly
after the same are available. Not later than 45 days after the end of each fiscal quarter of
Gemini or Borrower, commencing with the fiscal quarter ending March 31, 2005, the Commitment
Parties shall have received unaudited consolidated balance sheets and related statements of income,
stockholders’ equity and cash flows of each of Gemini and Borrower for each such fiscal quarter
(and, to the extent available and prepared in the ordinary course of business, for each completed
month since the last such quarter), which audited and unaudited financial statements shall not be
materially inconsistent with the financial statements previously provided to the Commitment
Parties.

     3. Pro Forma Financial Statements; Projections. The Commitment Parties shall have received
all pro forma financial statements (the “Pro Forma Financial Statements”) prepared in
compliance with Regulation S-X of the Securities Act of 1933, as amended (the “Securities
Act”), reviewed by the independent registered accountants of Borrower, which would be required
to be included in a Form S-4 of Borrower if an offering of securities on such form were being
consummated to finance the Transactions, except that the Pro Forma Financial Statements shall also
include a pro forma income statement for the most recent four quarters of Gemini and Borrower
ending at least 45 days prior to the Closing Date. Borrower shall have delivered its then most
recent projections through the 2013 fiscal year, prepared on a quarterly basis through the end of
2006 and on an annual basis for fiscal years 2007 to 2013, which shall not be inconsistent in any
materially adverse respect with the projections provided to the Commitment Parties prior to the
date of the Commitment Letter.

     4. Maximum Leverage Ratio. The Agent shall have received reasonably satisfactory evidence
(including an officers’ certificate accompanied by satisfactory supporting schedules and other
data) that the ratio of total debt (net of unrestricted cash and cash equivalents) of Borrower on a
pro forma basis after giving effect to the Transactions to combined historical EBITDA of Gemini and
Borrower for the trailing four quarters ended immediately prior to the Closing Date was not greater
than 4.50:1, subject to non-cash purchase accounting adjustments that do not materially affect
EBITDA.

     5. Senior Secured Credit Facilities. As a condition to the First Priority Facilities,
Borrower shall have received not less than $350.0 million in gross cash proceeds from either (a)
the issuance of the Notes

C-1

 

in a public offering or in a Rule 144A or other private placement or (b) the borrowings under
the Term C Facility. The terms and conditions of the Notes, if issued, shall be reasonably
satisfactory to the Commitment Parties.

     6. Perfection of Security Interests; Other Collateral Matters. The Lenders under the First
Priority Facilities shall have a valid first priority lien on and security interest in the
collateral referred to in Exhibit B under “Collateral” and the Lenders under the Term C
Facility shall have a valid second priority security interest in such collateral; the Commitment
Parties shall be reasonably satisfied with the arrangements to perfect all such security interests
and to pay any applicable record taxes and filing fees; the Commitment Parties shall have received
lien searches in such jurisdictions as they may reasonably request in order to evidence that the
collateral is subject to no liens other than permitted liens to be agreed. The Agent shall have
received reasonably satisfactory title insurance policies (including such endorsements as the Agent
may require), and to the extent requested by the Agent, current certified surveys, evidence of
zoning and other legal compliance, certificates of occupancy, legal opinions and other customary
documentation required by the Agent with respect to all real property of Borrower and its
subsidiaries subject to mortgages.

     7. Confidential Information Memorandum. The Lead Arrangers shall have received, not later
than 45 days prior to the Closing Date (or such later date as the Lead Arrangers may specify), the
complete printed Confidential Information Memorandum relating to the Senior Secured Credit
Facilities suitable for use in a customary syndication of bank financing, with all financial
statements (both audited and unaudited), information and projections relating to Gemini, Borrower
and their respective subsidiaries as deemed reasonably necessary to be included therein by the Lead
Arrangers.

     8. Offering Document for Notes; Rating of Notes. With respect to the Term C Facility, the
Investment Banks (as defined in the Engagement Letter) shall have received, not later than 45 days
prior to the Closing Date, a complete printed preliminary prospectus or preliminary offering
memorandum or preliminary private placement memorandum suitable for use in a customary “high-yield
road show” relating to the Notes, which contains all financial statements and other data to be
included therein (including all audited financial statements, all unaudited financial statements
(which shall have been reviewed by the independent accountants for Borrower as provided in
Statement on Auditing Standards No. 100) and the Pro Forma Financial Statements), and all other
data (including selected financial data) that the Securities and Exchange Commission would require
in a registered offering of the Notes as applicable or that would be necessary for the Investment
Banks to receive customary “comfort” (including “negative assurance” comfort) from independent
accountants in connection with the offering of the Notes. Upon delivery of such prospectus,
offering memorandum or private placement memorandum Borrower will cause senior management personnel
of Borrower and Gemini to participate in a customary road show for the sale of the Notes. The
Investment Banks shall have been afforded a period of at least 45 days following receipt of the
material described in the immediately preceding paragraph to seek to place the Notes with qualified
purchasers thereof. The Notes shall have been rated by both Moody’s and S&P at least 45 days prior
to the proposed Closing Date and the Commitment Parties shall have received confirmation thereof.

     9. Miscellaneous Closing Conditions. Other customary closing conditions, including delivery
of satisfactory legal opinions of Borrower’s counsel; customary solvency certificate of Borrower
and Borrower and its subsidiaries taken as a whole, accuracy of representations and warranties in
all material respects; absence of defaults, prepayment events or creation of liens under debt
instruments or other agreements as a result of the Transactions; evidence of authority; compliance
of the Transactions with applicable laws and regulations in all material respects; payment of fees
and expenses; and reasonably satisfactory insurance (including, without limitation, the receipt of
endorsements naming the Agent as loss payee or additional insured, as applicable) to the extent
available at commercially reasonable rates.

C-2

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