Document:

Exhibit 10.48

MANAGEMENT SERVICES
AGREEMENT

WITH

THOMAS H. LEE CAPITAL, LLC

AGREEMENT entered into as of
December 7,1999, between Thomas H. Lee Capital, LLC, a Delaware limited
liability company (the “Consultant”),
and Big Flower Holdings, Inc., a Delaware corporation (“Big Flower”).

WHEREAS, the Consultant has and
its affiliates have staff specially skilled in corporate finance, strategic
corporate planning and other management skills and services;

WHEREAS, as of the date hereof,
Big Flower has completed its merger pursuant to the Amended and Restated
Agreement and Plan of Merger (as amended, the “Merger
Agreement”) dated as of October 11, 1999 between Big Flower and BFH
Merger Corp., a Delaware corporation and an affiliate of the Consultant;

WHEREAS, Big Flower will require
the Consultant’s special skills and management advisory services in connection
with its general business operations; and

WHEREAS, the Consultant is
willing to provide such skills and services to Big Flower.

NOW, THEREFORE, in consideration
of the mutual promises contained herein, the parties hereto, intending to be
legally bound, do hereby agree as follows:

1.         Engagement.
Big Flower hereby engages the Consultant for the Term (as defined in Section 2)
and upon the terms and conditions herein set forth to provide consulting and
enagement advisory services to Big Flower, as requested by Big Flower. These
services will be in connection with financial and strategic corporate planning
and such other management services as the Consultant and Big Flower shall
mutually agree. In consideration of the remuneration herein specified, the
Consultant accepts such engagement and agrees to perform the services specified
herein.

2.         Term.
The engagement hereunder shall be for a term commencing on January 1, 2000 and
expiring on the date that the THL Entities (as defined in the Investors’
Agreement) cease to own, collectively, at least one-third of the number of
shares of Big Flower common stock they hold collectively immediately after the
Effective Time (as defined in the Merger Agreement), unless the Consultant and
Big Flower agree to extend the term beyond such date, in which case the term
shall expire on the date agreed to by the Consultant and Big Flower (the “Term”).
“Investors’ Agreement” means

the Investors’ Agreement dated as of the date hereof among Big Flower,
R. Theodore Ammon, Thomas H. Lee Equity Fund IV, L.P., Evercore Capital
Partners L.P. and the other parties named therein.

3.         Services to be Performed.
The Consultant shall devote reasonable time and efforts to the performance of
the consulting and management advisory services contemplated by this Agreement.
However, no precise number of hours is to be devoted by the Consultant on a
weekly or monthly basis. The Consultant may perform services under this
Agreement directly, through its employees or agents, or with such outside
consultants as the Consultant may engage for such purpose. The Consultant
agrees that the consulting and management advisory services provided hereunder
will be performed by individuals qualified in accordance with the Consultant’s
normal business practices and in a manner providing quality of standards no
lower than the quality provided by the Consultant to its other customers.

4.         Compensation;
Expense Reimbursement.

(a)       In
consideration of the management advisory services hereunder, Big Flower agrees
to pay to the Consultant an annual fee equal to $414,150 (to be adjusted as set
forth in the Addendum to this Agreement). The annual fee shall be payable in
equal quarterly installments each year, to be paid in advance on the first day
of each calendar quarter with the first such payment to be made on January 1,
2000, except to the extent that any such payment is prohibited by Section 9.06
of the Credit Agreement, dated as of the date hereof, among Big Flower, as a
Guarantor, Big Flower Press Holdings, Inc. and various Subsidiaries of Big
Flower Press Holdings, Inc., as Borrowers, various Lenders, Chase Securities,
Inc. and Deutsche Bank Securities Inc. as Joint Lead Arrangers and Joint Book
Managers, The Chase Manhattan Bank, as Administrative Agent, Bankers Trust
Company, as Syndication Agent, Bank of America, N.A., (as such terms are
defined in such Credit Agreement), in which case payments of the annual fee
shall be made in such a manner as to comply with such Section 9.06 of such
Credit Agreement.

(b)       Big
Flower shall reimburse the Consultant for all reasonable out-of-pocket expenses
incurred by the Consultant, and its affiliates, in connection with management
advisory services provided by the Consultant hereunder, including, without
limitation, reasonable travel, lodging, accounting, legal, administrative and
similar out-of-pocket costs reasonably incurred by it in connection with its
performance of services for Big Flower hereunder. Reimbursement shall be made
only upon presentation to Big Flower by the Consultant of reasonably itemized
documentation therefor.

5.         Indemnification.
(a) In addition to its agreements and obligations under this Agreement,
Big Flower agrees to indemnify and hold harmless the Consultant, and its
affiliates (including their respective officers, directors, stockholders,
partners, members, employees and agents) from and against any and all actions,
claims, liabilities,

 2
 

losses and damages (or actions in respect thereof), in any way related
to or arising out of the execution, delivery and existence of this Agreement,
or the performance by the Consultant of services under Sections 1 and 3 of this
Agreement (other than for expenses described in Section 4(b) hereof which are
reimbursed under Section 4 hereof), and to reimburse the Consultant and any
other such indemnified person for reasonable out-of-pocket legal and other
expenses incurred by it in connection with or relating to investigating,
preparing to defend, or defending any actions, claims or other proceedings
(including any investigation or inquiry) arising in any manner out of or in
connection with the Consultant’s performance under this Agreement (whether or
not such indemni­fied person is a named party in such proceeding); provided,
however, that Big Flower shall not be responsible under this Section 5 for any
claims, liabilities, losses, damages or expenses to the extent that they are
finally judicially determined to result from actions taken by the Consultant
(or such other indemnified person) due to the Consultant’s (or such other
indemnified person’s) gross negligence or willful misconduct.

(b)       Big
Flower also agrees that the Consultant (or such other indemnified person) shall
not have any liability (whether direct or indirect, in contract or tort or
otherwise) to Big Flower or any of its affiliates for or in connection with the
retention of the Consultant pursuant to this Agreement or the performance of
the Consultant of its obligations under this Agreement, except to the extent
that any such liability is finally judicially determined to have resulted from
the Consultant’ (or such other indemnified person’s) gross negligence or
willful misconduct.

(c)       The
indemnification provided for in this Section 5 shall be in addition to any
liability which Big Flower may otherwise have to the Consultant or the other
indemnified persons. Further, if and to the extent that the indemnification
provided for in this Section 5 is not enforceable for any reason, Big Flower
agrees to make the maximum contribution possible pursuant to applicable law to
the payment and satisfaction of any actions, claims, liabilities, losses and
damages incurred by the Consultant or the other indemnified persons for which
they would have otherwise been entitled to be indemnified hereunder.

(d)       If
any action, claim, proceeding or investigation is commenced as to which the
Consultant (or such other indemnified person) proposes to demand
indemnification, the Consultant shall notify Big Flower with reasonable
promptness; provided, however, that any failure by the Consultant (or
such other indemnified person) to notify Big Flower shall not relieve Big
Flower from its obligations hereunder. The Consultant (or such other
indemnified person) shall have the right to retain counsel of its own choice to
represent it, and Big Flower shall pay the reasonable fees, expenses and
disbursements of such counsel as incurred; and such counsel shall, to the
extent consistent with its professional responsibilities, cooperate with Big
Flower and any counsel designated by Big Flower. Big Flower shall be liable for
any settlement of any claim against the Consultant (or such other indemnified
person) made with Big Flower’s written consent, which consent shall not be unreasonably
withheld. Big Flower shall not, without the

 3
 

prior written consent of the Consultant (or such other indemnified
person), settle or compromise any claim, or permit a default or consent to the
entry of any judgment in respect thereof, unless such settlement, compromise or
consent includes, as an unconditional term thereof, the giving by the claimant
to the Consultant (or such other indemni­fied person) of an unconditional
release from all liability in respect of such claim.

6.         Notices. All
notices hereunder, to be effective, shall be in writing and shall be sent by
reputable nationwide courier, or sent by facsimile, as follows:

(i)                       If
to the Consultant:

Thomas H. Lee Capital, LLC

570 Madison Avenue

New York, New York 10022

Attention: Thomas H. Lee

Facsimile: 212-888-6388

(ii)                    If
to Big Flower:

Big Flower Holdings, Inc.

3 East 54th Street

New York, New York 10022

Attention: Irene B. Fisher

Facsimile: 212-715-4902

7.         Modifications.
This Agreement constitutes the entire agreement between the parties hereto with
regard to the subject matter hereof, superseding all prior understandings and
agreements whether written or oral. This Agreement may not be amended or
revised except by a writing signed by the parties.

8.         Successors  and  Assigns. This
Agreement shall be binding upon and inure to the benefit of the patties and
their respective successors and assigns but may not be assigned by either party
without the prior written consent of the other. Notwithstanding the foregoing
(but subject to the final sentence of Section 3), the Consultant may elect to
have its obligations hereunder performed in whole or in part by a partnership
or other entity affiliated with the Consultant, and the Consultant may direct
that any compensation (including all or a portion of the fees under Section
4(a), and reimbursement of expenses be paid to the affiliate performing the
services hereunder with respect thereto.

9.         Captions.
Captions have been inserted solely for the conveniencs of reference and in no
way define, limit or describe the scope or substance of any provision and shall
not affect the validity of any other provision.

 4
 

10.      Governing
Law. This Agreement shall be construed under and governed by and
construed in accordance with the laws of the State of New York, without reference
to principles of conflicts or choice of laws, or any other law that would make
the laws of any jurisdiction other than the State of New York applicable
hereto.

11.      Counterpart.
This Agreement may be signed in two counter-parts, each of which shall be deemed
an original but which together shall constitute one and the same instrument.

 5

IN WITNESS WHEREOF, the parties have duly executed this
Management Services Agreement as of the date first above written.

	
  

  	
   

  	
  THOMAS H. LEE CAPITAL, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Thomas H.
  Lee

  	
   

  
	
   

  	
   

  	
       Name:

  	
   

  
	
   

  	
   

  	
       Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BIG FLOWER HOLDINGS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Irene B.
  Fisher

  	
   

  
	
   

  	
   

  	
       Name:

  	
   

  
	
   

  	
   

  	
       Title:

  	
   

  
						

 

Addendum to Management
Services Agreement 

with Thomas H. Lee Capital, LLC

The parties understand and agree that in accordance
with the Limited Partnership Agreement of Thomas H. Lee Equity Fund IV, L.P. (“Fund IV”), THL Equity Advisors IV, LLC (“Advisors IV”) is obligated to advise Big Flower when certain
limitations have been reached on management, consulting and transaction fee
income received from Big Flower, pursuant to this Agreement by “GP Affiliates” (which term includes the Consultant) as
defined in the Limited Partnership Agreement of Fund IV (the “Special Fee Limitation”), and to direct that certain of such
fees after such Special Fee Limitation is reached be paid instead directly to
Advisors IV pursuant to that certain Management Services Agreement (the “Advisors IV Agreement”) dated as of the date hereof between
Big Flower and Advisors IV. Big Flower hereby agrees that it will act as
directed in any such written notice with respect to such fees, which shall be
additional consideration to Advisors IV for the services rendered pursuant to
the Advisors IV Agreement.

 7Exhibit 10.49

MANAGEMENT SERVICES
AGREEMENT

WITH

THL EQUITY ADVISORS IV,
LLC

AGREEMENT entered into as of
December 7,1999, between THL Equity Advisors IV, LLC, a Massachusetts limited
liability company (the “Consultant”),
and Big Flower Holdings, Inc., a Delaware corporation (“Big
Flower”).

WHEREAS, the Consultant has and
its affiliates have staff specially skilled in corporate finance, strategic
corporate planning and other management skills and services;

WHEREAS, as of the date hereof,
Big Flower has completed its merger pursuant to the Amended and Restated
Agreement and Plan of Merger (as amended, the “Merger
Agreement”) dated as of October 11, 1999 between Big Flower and BFH
Merger Corp., a Delaware corporation and an affiliate of the Consultant;

WHEREAS, Big Flower will require
the Consultant’s special skills and management advisory services in connection
with its general business operations; and

WHEREAS, the Consultant is
willing to provide such skills and services to Big Flower.

NOW, THEREFORE,
in consideration of the mutual promises contained herein, the parties hereto,
intending to be legally bound, do hereby agree as follows:

1.         Engagement. Big
Flower hereby engages the Consultant for the Term (as defined in Section 2) and
upon the terms and conditions herein set forth to provide consulting and
management advisory services to Big Flower, as requested by Big Flower. These
services will be in connection with financial and strategic corporate planning
and such other management services as the Consultant and Big Flower shall
mutually agree. In consideration of the remuneration herein specified, the
Consultant accepts such engagement and agrees to perform the services specified
herein.

2.         Term.
The engagement hereunder shall be for a term commencing on January 1, 2000 and
expiring on the date that the THL Entities (as defined in the Investors’
Agreement) cease to own, collectively, at least one-third of the number of
shares of Big Flower common stock they hold collectively immediately after the
Effective Time (as defined in the Merger Agreement), unless the Consultant and
Big Flower agree to extend the term beyond such date, in which case the term
shall expire on the date agreed to by the Consultant and Big Flower (the “Term”). “Investors’ Agreement”

 

means the Investors’ Agreement dated as of the date hereof among Big
Flower, R. Theodore Ammon, Thomas H. Lee Equity Fund IV, L.P., Evercore Capital
Partners L.P. and the other parties named therein.

3.         Services to be Performed.
The Consultant shall devote reasonable time and efforts to the performance of
the consulting and management advisory services contemplated by this Agreement.
However, no precise number of hours is to be devoted by the Consultant on a
weekly or monthly basis. The Consultant may perform services under this
Agreement directly, through its employees or agents, or with such outside
consultants as the Consultant may engage for such purpose. The Consultant
agrees that the consulting and management advisory services provided hereunder
will be performed by individuals qualified in accordance with the Consultant’s
normal business practices and in a manner providing quality of standards no
lower than the quality provided by the Consultant to its other customers.

4.         Compensation; Expense Reimbursement.

(a)       In
consideration of the management advisory services hereunder, Big Flower agrees
to pay to the Consultant an annual fee equal to $385,850 (to be adjusted as set
forth in the Addendum to this Agreement). The annual fee shall be payable in
equal quarterly installments each year, to be paid in advance on the first day
of each calendar quarter with the first such payment to be made on January 1,
2000, except to the extent that any such payment is prohibited by Section 9.06
of the Credit Agree­ment, dated as of the date hereof, among Big Flower, as a
Guarantor, Big Flower Press Holdings, Inc. and various Subsidiaries of Big
Flower Press Holdings, Inc., as Borrowers, various Lenders, Chase Securities,
Inc. and Deutsche Bank Securities Inc. as Joint Lead Arrangers and Joint Book
Managers, The Chase Manhattan Bank, as Administrative Agent, Bankers Trust
Company, as Syndication Agent, Bank of America, N.A., (as such terms are
defined in such Credit Agreement), in which case payments of the annual fee
shall be made in such a manner as to comply with such Section 9.06 of such
Credit Agreement.

(b)       Big
Flower shall reimburse the Consultant for all reasonable out-of-pocket expenses
incurred by the Consultant, and its affiliates, in connection with management
advisory services provided by the Consultant hereunder, including, without
limitation, reasonable travel, lodging, accounting, legal, administrative and
similar out-of-pocket costs reasonably incurred by it in connection with its
performance of services for Big Flower hereunder. Reimbursement shall be made
only upon presentation to Big Flower by the Consultant of reasonably itemized
documentation therefor.

5.         Indemnification.
(a) In addition to its agreements and obligations under this Agreement, Big
Flower agrees to indemnify and hold harmless the Consultant, and its affiliates
(including their respective officers, directors, stockholders, partners,
members, employees and agents) from and against any and all actions, claims,
liabilities,

 2
 

 

losses and damages (or actions in respect thereof), in any way related
to or arising out of the execution, delivery and existence of this Agreement,
or the performance by the Consultant of services under Sections 1 and 3 of this
Agreement (other than for expenses described in Section 4(b) hereof which are
reimbursed under Section 4 hereof), and to reimburse the Consultant and any
other such indemnified person for reasonable out-of-pocket legal and other
expenses incurred by it in connection with or relating to investi­gating, preparing
to defend, or defending any actions, claims or other proceedings (including any
investigation or inquiry) arising in any manner out of or in connection with
the Consultant’s performance under this Agreement (whether or not such indemni­fied
person is a named party in such proceeding); provided, however, that Big Flower
shall not be responsible under this Section 5 for any claims, liabilities,
losses, damages or expenses to the extent that they are finally judicially
determined to result from actions taken by the Consultant (or such other
indemnified person) due to the Consultant’s (or such other indemnified person’s)
gross negligence or willful misconduct.

(b)       Big
Flower also agrees that the Consultant (or such other indemnified person) shall
not have any liability (whether direct or indirect, in contract or tort or
otherwise) to Big Flower or any of its affiliates for or in connection with the
retention of the Consultant pursuant to this Agreement or the performance of
the Consultant of its obligations under this Agreement, except to the extent
that any such liability is finally judicially determined to have resulted from
the Consultant’s (or such other indemnified person’s) gross negligence or
willful misconduct.

(c)       The
indemnification provided for in this Section 5 shall be in addition to any
liability which Big Flower may otherwise have to the Consultant or the other
indemnified persons. Further, if and to the extent that the indemnification
provided for in this Section 5 is not enforceable for any reason, Big Flower
agrees to make the maximum contribution possible pursuant to applicable law to
the payment and satisfaction of any actions, claims, liabilities, losses and
damages incurred by the Consultant or the other indemnified persons for which
they would have otherwise been entitled to be indemnified hereunder.

(d)       If any
action, claim, proceeding or investigation is commenced as to which the
Consultant (or such other indemnified person) proposes to demand
indemnification, the Consultant shall notify Big Flower with reasonable
promptness; provided, however, that any failure by the Consultant (or
such other indemnified person) to notify Big Flower shall not relieve Big
Flower from its obligations hereunder. The Consultant (or such other
indemnified person) shall have the right to retain counsel of its own choice to
represent it, and Big Flower shall pay the reasonable fees, expenses and
disbursements of such counsel as incurred; and such counsel shall, to the
extent consistent with its professional responsibilities, cooperate with Big
Flower and any counsel designated by Big Flower. Big Flower shall be liable for
any settlement of any claim against the Consultant (or such other indemnified
person) made with Big Flower’s written consent, which consent shall not be
unreasonably withheld. Big Flower shall not, without the

 3
 

 

prior written consent of the Consultant (or such other indemnified
person), settle or compromise any claim, or permit a default or consent to the
entry of any judgment in respect thereof, unless such settlement, compromise or
consent includes, as an unconditional term thereof, the giving by the claimant
to the Consultant (or such other indemnified person) of an unconditional
release from all liability in respect of such claim.

6.         Notices. All
notices hereunder, to be effective, shall be in writing and shall be sent by
reputable nationwide courier, or sent by facsimile, as follows:

	
  

  	
  (i)

  	
  If to the Consultant:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THL Equity
  Advisors IV, LLC

  
	
   

  	
   

  	
  c/o Thomas H.
  Lee Company

  
	
   

  	
   

  	
  75 State Street

  
	
   

  	
   

  	
  Boston,
  Massachusetts 02109

  
	
   

  	
   

  	
  Attention:
  Anthony J. DiNovi

  
	
   

  	
   

  	
  Facsimile:
  617-227-3514

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  If to Big Flower;

  
	
   

  	
   

  	
  Big Flower
  Holdings, Inc.

  
	
   

  	
   

  	
  3 East 54th Street

  
	
   

  	
   

  	
  New York, New
  York 10022

  
	
   

  	
   

  	
  Attention: Irene
  B. Fisher

  
	
   

  	
   

  	
  Facsimile:
  212-715-4902

  

 

7.         Modifications.
This Agreement constitutes the entire agreement between the parties hereto with
regard to the subject matter hereof, superseding all prior understandings and
agreements whether written or oral. This Agreement may not be amended or
revised except by a writing signed by the parties.

8.         Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of the parties
and their respective successors and assigns but may not be assigned by either
party without the prior written consent of the other. Notwithstanding the
foregoing (but subject to the final sentence of Section 3), the Consultant may
elect to have its obligations hereunder performed in whole or in part by a
partnership or other entity affiliated with the Consultant, and the Consultant
may direct that any compensation (including all or a portion of the fees under
Section 4(a), and reimbursement of expenses be paid to the affiliate performing
the services hereunder with respect thereto.

9.         Captions.
Captions have been inserted solely for the convenience of reference and in no
way define, limit or describe the scope or substance of any provision and shall
not affect the validity of any other provision.

 4
 

 

10.      Governing Law.
This Agreement shall be construed under and governed by and construed in
accordance with the laws of the State of New York, without reference to
principles of conflicts or choice of laws, or any other law that would make the
laws of any jurisdiction other than the State of New York applicable hereto.

11.      Counterparts .
This Agreement may be signed in two counterparts, each of which shall be deemed
an original but which together shall constitute one and the same instrument.

 5

IN WITNESS WHEREOF, the parties
have duly executed this Management Services Agreement as of the date first
above written.

	
  

  	
   

  	
  THL EQUITY ADVISORS IV, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Anthony J.
  DiNovi

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
  Anthony J. DiNovi 

  
	
   

  	
   

  	
   

  	
  Title: 

  	
  Managing Director

  
						

 

	
  

  	
   

  	
  BIG FLOWER HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Irene B.
  Fisher

  	
   

  
	
   

  	
   

  	
   

  	
  Name: 

  	
   

  
	
   

  	
   

  	
   

  	
  Title: 

  	
   

  
						

 

Addendum

The parties understand
and agree that in accordance with the Limited Partnership Agreement of Thomas
H. Lee Equity Fund IV, L.P. (“Fund IV”), the
Consultant is obligated to advise Big Flower when certain limitations have been
reached on management, consulting and transaction fee income received from Big
Flower, pursuant to that certain Management Services Agreement dated as of the
date hereof between Big Flower and Thomas H. Lee Capital, LLC, by “GP Affiliates” (which term includes Thomas H. Lee Capital,
LLC) as defined in the Limited Partnership Agreement of Fund IV (the “Special Fee Limitation”), and to direct that certain of such
fees after such Special Fee Limitation is reached be paid instead directly to
the Consultant, pursuant to this Agreement. Big Flower hereby agrees that it
will act as directed in any such written notice with respect to such fees,
which shall be additional consideration to the Consultant for the services
rendered hereunder.

 7

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