Document:

Ex-10.1

 

Exhibit 10.1

Description of Annual Incentive and Long-Term Incentive Bonus Awards

     On February 8, 2005, the Compensation Committee of the Board of Directors (the “Compensation
Committee”) of CT Communications, Inc. (the “Company”) approved the terms pursuant to which the
Company would award annual and long-term incentive bonus awards for the 2005 fiscal year. The
Company maintains an annual incentive discretionary bonus plan (the “annual incentive plan”) and
long-term incentive discretionary bonus plan (the “long-term incentive plan”) for the benefit of
its executive officers, other officers and certain other key employees of the Company. The annual
incentive plan and the long-term incentive plan are administered and paid out under the Company’s
shareholder-approved Amended and Restated 2001 Stock Incentive Plan.

     For 2005, the annual incentive award will consist of a cash bonus that may be paid based on
goals established and approved by the Company’s Compensation Committee. Potential bonuses are
specified as a percentage of the employees’ annual base salary, ranging from 25% to 150% for the
Chief Executive Officer, 20% to 100% for Senior Vice Presidents of the Company and 15% to 70% for
all other executive officers of the Company. For 2005, the annual incentive award will be based on
a combination of financial and operational objectives. Such objectives and their relative
weighting in the overall performance score are as follows:

	 	 	 	 	 
	Objective	 	Weight	 
	Operating revenue
	 	 	25%	
	Operating earnings before interest, taxes,
depreciation and amortization
	 	 	25%	
	Operating free cash flow
	 	 	30%	
	Aggregate net customer growth in the
Company’s ILEC, CLEC, Greenfield,
Wireless and DSL businesses
	 	 	10%	
	Aggregate customer disconnects in the
Company’s ILEC, CLEC, Greenfield,
Wireless and DSL businesses
	 	 	10%	

     In 2004, the annual incentive award consisted of 75% cash and 25% restricted common stock.
For 2005, the Compensation Committee

 

 

determined to make the annual incentive award a cash award only and eliminated the restricted
common stock portion of the award.

     The Company, as authorized by the Compensation Committee, may also pay a long-term incentive
award based on a three-year performance period with performance goals established at the beginning
of the cycle. Potential bonuses are specified as a percentage of the employees’ annual base
salary, ranging from 80% to 400% for the Chief Executive Officer, 50% to 200% for Senior Vice
Presidents, 30% to 100% for all other Vice Presidents reporting directly to the Chief Executive
Officer and 15% to 70% for all other executive officers of the Company.

     For the long-term incentive award granted in 2003 for the 2003 to 2005 performance period, the
long-term incentive award is based on the following combination of financial measurements and
weightings:

	 	 	 	 	 
	Objective	 	Weight	 
	Operating revenue
	 	 	25%	
	Operating earnings before interest, taxes,
depreciation and amortization
	 	 	25%	
	Earnings per share
	 	 	25%	
	Total shareholder return (compared to a
peer stock index)
	 	 	25%	

For the long-term incentive award granted in 2004 for the 2004 to 2006 performance period, the
long-term incentive award is based on the following combination of financial measurements and
weightings:

	 	 	 	 	 
	Objective	 	Weight	 
	Operating revenue
	 	 	20%	
	Operating earnings before interest, taxes,
depreciation and amortization
	 	 	20%	
	Earnings per share
	 	 	20%	
	Cumulative operating free cash flow
	 	 	20%	
	Total shareholder return (compared to a
peer stock index)
	 	 	20%	

 

 

     On February 8, 2005, the Compensation Committee approved certain changes to the long-term
incentive awards for the 2003 to 2005 and the 2004 to 2006 performance periods such that the awards
will no longer consist of 50% cash and 50% restricted common stock and will instead consist of 25%
unrestricted common stock and 75% restricted common stock. The Compensation Committee also
approved changes in the vesting schedule of the restricted common stock such that 25% of the
long-term incentive award will consist of restricted common stock that will vest one year from the
award date and 50% of the award will consist of restricted common stock that will vest two years
from the award date (previously, 100% of the restricted common stock would vest two years from the
award date). In addition, the Compensation Committee approved changes to the price that is used to
calculate the number of restricted and unrestricted shares that are awarded such that the price
will be the average closing NASDAQ price for all trading days in the month of December at the end
of the applicable performance period rather than the previous formulation which contemplated a
discounted price of 90% of the average closing NASDAQ price for all trading days in the month of
December at the end of the applicable performance period.

     The Compensation Committee determined not to grant a long-term incentive award for the 2005 to
2007 performance period and instead determined that a performance period consisting of two years is
more appropriate and consistent with the Company’s compensation objectives and the rapidly changing
telecommunications industry. Accordingly, in connection with the transition from a three year
performance period to a two year performance period, the Compensation Committee approved a
long-term incentive award for the 2006 to 2007 performance period, subject to the determination of
the key financial measurements for such period to be approved by the Compensation Committee at the
beginning of the two year cycle in 2006. Other than the establishment of the key financial
measurements, the terms of the long-term incentive award for the 2006 to 2007 performance period
are consistent with those described above.

     In addition to the annual and long-term incentive compensation, compensation for executive
officers may include additional awards of nonqualified and/or incentive stock options issued under
the Company’s Amended and Restated 2001 Stock Incentive Plan.Ex-10.2

 

Exhibit 10.2

Description of 2005 Compensation of Directors

     During 2005, each director of CT Communications, Inc. (the “Company”) who is not employed by
the Company or its subsidiaries (a “non-employee director”) is paid an annual retainer of $12,000.
In addition, the Chairman of the Audit Committee is paid an annual retainer of $5,000 and the
Chairman of each of the Compensation Committee and the Corporate Governance and Nominating
Committee is paid an annual retainer of $3,000. Such annual retainers may be paid in the form of
common stock issued under the Company’s 1996 Director Compensation Plan or the Company’s Amended
and Restated 2001 Stock Incentive Plan.

     Each non-employee director receives $1,250 for each meeting of the Board of Directors
attended. Committee members are paid $750 per committee meeting attended. For meetings of the
Board of Directors by telephone conference call, non-employee directors are paid $625 per call.
For committee meetings by telephone conference call, committee members are paid $375 per call.
Meeting attendance fees are paid in cash or common stock. New non-employee directors are granted a
one-time stock option with a value of $10,000 (based on Black Scholes). Non-employee directors
also receive an annual stock option grant with a value of $10,000 (based on Black Scholes), which
is fully vested on the date of grant. Non-employee directors are also paid $750 in cash or common
stock for each informational luncheon session attended, which informational luncheons are not
counted as meetings of the Board of Directors other than for purposes of compensation.EX-10.12.B  SECOND AGREEMENT TO CREDIT AGREEMENT

 

EXHIBIT 10.12(b)

SECOND AMENDMENT TO CREDIT AGREEMENT

     This SECOND AMENDMENT TO CREDIT AGREEMENT (this “Second Amendment”), dated as of
February 11, 2005, is by and among AMERICAN COLOR GRAPHICS, INC., a New York Corporation (the
“Borrower”), EACH OF THE LENDERS SIGNATORY HERETO, GECC CAPITAL MARKETS GROUP INC., as
Syndication Agent (the “Syndication Agent”), and BANK OF AMERICA, N.A., as Administrative
Agent and Collateral Agent for the Lenders (in such capacity, the “Agent”). Capitalized
terms used herein and not otherwise defined shall have the meaning assigned such term in the Credit
Agreement (as defined below).

RECITALS:

           A.       The Borrower, the Lenders signatory thereto, the Syndication Agent and the Agent are
parties to that certain Credit Agreement, dated as of July 3, 2003 (as amended to the date hereof,
the “Credit Agreement” as amended by, and together with, this Second Amendment, and as
hereinafter amended, modified, supplemented, extended or restated from time to time, being called
the “Amended Agreement”).

           B.       The parties hereto have agreed to amend the Credit Agreement as set forth below.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter
contained, the parties hereto agree as follows:

     SECTION 1.01       Amendments to Credit Agreement.

     (a)       Amendments to Section 7.22. Section 7.22 of the Credit Agreement is hereby
deleted and the following new Section 7.22 is inserted in replacement thereof:

           7.22       Capital Expenditures.

     The Parent shall not make any Capital
Expenditures. Neither the Borrower nor any of its Subsidiaries shall make or
incur any Capital Expenditure if, after giving effect thereto, the aggregate
amount of all Capital Expenditures by the Borrower and its Subsidiaries on a
consolidated basis, in excess of insurance proceeds or condemnation awards, would
exceed (a) $18,500,000 during the Fiscal Year ending March 31, 2004, (b)
$10,800,000 during the Fiscal Year ending March 31, 2005, or (c) $14,000,000
during any Fiscal Year thereafter. To the extent that the aggregate amount of
Capital Expenditures of the Borrower and the Subsidiaries during a Fiscal Year is
less than the amount that is permitted by the preceding sentence (the result of
such permitted amount minus the actual amount of Capital Expenditures during a
Fiscal Year being the

32

 

“Unused Amount”), the aggregate amount of Capital Expenditures that may be
made by the Borrower and the Subsidiaries during the next succeeding Fiscal Year
will be the sum of the amount otherwise permitted by the preceding sentence plus
the Unused Amount from the previous Fiscal Year.

     (b)       Amendment to Section 7.23. Section 7.23 of the Credit Agreement is hereby deleted
and the following new Section 7.23 is inserted in replacement thereof:

           7.23       Fixed Charge Coverage Ratio.

     The Borrower will have a Fixed Charge
Coverage Ratio of not less than (a) 1.00 to 1.00 for the one-fiscal quarter period
ended December 31, 2003, (b) 0.89 to 1.00 for the two-fiscal quarter period ended
March 31, 2004 (taken together as one accounting period), (c) 0.86 to 1.00 for the
three-fiscal quarter period ended June 30, 2004 (taken together as one accounting
period) and (d) the ratio set forth below opposite each fiscal quarter end for
each Four Quarter Period then ended set forth below:

	 	 	 	 	 
	Four Quarter 	 	Fixed Charge
	Period Ending 	 	Coverage Ratio
	September 30, 2004
	 	 	0.82 to 1.00	 
	December 31, 2004
	 	 	0.77 to 1.00	 
	March 31, 2005
	 	 	0.67 to 1.00	 
	June 30, 2005
	 	 	0.61 to 1.00	 
	September 30, 2005
	 	 	0.61 to 1.00	 
	December 31, 2005
	 	 	0.61 to 1.00	 
	March 31, 2006
	 	 	0.74 to 1.00	 
	June 30, 2006 and each fiscal quarter end thereafter
	 	 	1.00 to 1.00	 

     (c)       Amendments to Annex A to the Credit Agreement.

     (i)       The following new defined term is hereby added to Annex A to the Credit Agreement
in alphabetical position:

     “Non-Lease Capital Expenditures” means, all Capital Expenditures other than
Capital Expenditures financed by a Capital Lease.

     (ii)       The definition of “EBITDA” set forth in Annex A to the Credit Agreement is
hereby deleted in its entirety and replaced with the following:

           “EBITDA” means, with respect to any fiscal period of the Parent, Adjusted Net
Earnings from Operations, plus, to the extent deducted in the

33

 

determination of Adjusted Net Earnings from Operations for that fiscal period, Interest
Expense, Federal, state, local, foreign and deferred income tax expense, depreciation and
amortization, and restructuring charges, severance expenses and other non-recurring charges
accrued during such period.

     (iii)       definition of “Fixed Charge Coverage Ratio” set forth in Annex A to the Credit
Agreement is hereby deleted in its entirety and replaced with the following:

     “Fixed Charge Coverage Ratio” means, with respect to any
fiscal period of the Parent, the ratio of (a) EBITDA to (b) Fixed Charges.

     (iv)       The definition of “Fixed Charges” set forth in Annex A to the Credit Agreement
is hereby deleted in its entirety and replaced with the following:

           “Fixed Charges” means, with respect to any fiscal period of
the Parent and its Subsidiaries on a consolidated basis, without
duplication, the sum of (a) Interest Expense (excluding amortization of
deferred financing costs), (b) scheduled principal payments of Debt (but
not Permitted Prepayments), (c) Federal, state, local and foreign income
taxes paid in cash, (d) the greater of (i) restructuring charges,
severance expenses and other non-recurring charges (“Non-Recurring
Charges”) paid during such period and (ii) the minimum Non-Recurring
Charges set forth in the table below, (e) contributions to the Borrower’s
three qualified defined-benefit pension plans made during such period and
(f) the greater of (i) Non-Lease Capital Expenditures paid in cash during
such period and (ii) the minimum Non-Lease Capital Expenditures set forth
in the table below.

	 	 	 	 	 	 	 	 	 
	 	 	Minimum Non-Recurring	 	Minimum Non-Lease
	If determined	 	Charges for the	 	Capital Expenditures
	during the fiscal	 	Four-Quarter Period	 	for the Four-Quarter
	quarter ending below:	 	then ending	 	Period then ending
	March 31, 2005
	 	$	5,599,000	 	 	$	7,857,000	 
	June 30, 2005
	 	$	7,982,000	 	 	$	9,241,000	 
	September 30, 2005
	 	$	9,213,000	 	 	$	9,906,000	 
	December 31, 2005
	 	$	9,931,000	 	 	$	10,461,000	 
	March 31, 2006
	 	$	8,392,000	 	 	$	7,500,000	 
	Thereafter
	 	$	0	 	 	$	0	 

34

 

     SECTION 1.02       Representations and Warranties.

     The Borrower hereby represents and warrants to each Lender and the Agent, on the Second Amendment Effective Date (as hereinafter
defined), as follows:

     (a)       After giving effect to this amendment, the representations and warranties set forth in
Article 6 of the Credit Agreement, and in each other Loan Document, are true and correct in all
material respects on and as of the date hereof and on and as of the Second Amendment Effective Date
(as defined in Section 1.03) with the same effect as if made on and as of the date hereof
or the Second Amendment Effective Date, as the case may be, except to the extent such
representations and warranties expressly relate solely to an early date.

     (b)       Each of the Borrower and the other Credit Parties is in compliance with all terms and
conditions of the Credit Agreement and the other Loan Documents on its part to be observed and
performed and no Default or Event of Default has occurred and is continuing.

     (c)       The execution, delivery and performance by the Borrower of this Second Amendment have been
duly authorized by the Borrower.

     (d)       This Second Amendment constitutes the legal, valid and binding obligation of the Borrower,
enforceable against the Borrower in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or
other similar laws affecting the enforcement of creditors’ rights or by the effect of general
equitable principles.

     (e)       The execution, delivery and performance by the Borrower of this Second Amendment do not
and will not conflict with, or constitute a violation or breach of, or result in the imposition of
any Lien upon the property of the Borrower or any of its Subsidiaries, by reason of the terms of
(i) any contract, mortgage, lease, agreement, indenture, or instrument to which the Borrower is a
party or which is binding upon it, (ii) any Requirement of Law applicable to the Borrower, or (iii)
the certificate or articles of incorporation or by-laws or the limited liability company or limited
partnership agreement of the Borrower.

     SECTION 1.03       Effectiveness.

35

 

     This Second Amendment shall become effective only upon satisfaction of the following
conditions precedent (the first date upon which each such condition has been satisfied being herein
called the “Second Amendment Effective Date”):

     (a)       The Agent shall have received duly executed counterparts of this Second Amendment which,
when taken together, bear the authorized signatures of the Borrower, the Agent and the Lenders.

     (b)       The Agent and the Lenders shall be satisfied that the representations and warranties set
forth in Section 1.02 of this Second Amendment are true and correct on and as of the Second
Amendment Effective Date and that no Default or Event of Default has occurred and is continuing on
and as of the Second Amendment Effective Date.

     (c)       The Agent shall have received an amendment fee for the pro rata benefit of each Lender
that has executed a counterpart hereof on or prior to the date hereof in the aggregate amount of
$250,000 in the event that all Lenders so execute and subject to pro rata reduction to the extent
that any one or more Lenders is not entitled to share in the amendment fee.

     (d)       There shall not be any action pending or any judgment, order or decree in effect which, in
the judgment of the Agent or the Lenders, is likely to restrain, prevent or impose materially
adverse conditions upon the performance by the Borrower or any other Credit Party of its
obligations under the Credit Agreement or the other Loan Documents.

     (e)       The Agent shall have received such other documents, legal opinions, instruments and
certificates relating to this Second Amendment as it shall reasonably request and such other
documents, legal opinions, instruments and certificates that shall be reasonably satisfactory in
form and substance to the Agent and the Lenders. All corporate proceedings taken or to be taken in
connection with this Second Amendment and documents incidental thereto whether or not referred to
herein shall be reasonably satisfactory in form and substance to the Agent and the Lenders.

     SECTION 1.04       Guarantor’s Reaffirmation.

     By its acknowledgement below, the Guarantor hereby
(i) consents to the terms of this Second Amendment, (ii) acknowledges and reaffirms all of its
obligations and undertakings under the Facility Guaranty and (iii) acknowledges and agrees that the
Facility Guaranty is and shall remain in full force and effect in accordance with the terms
thereof.

     SECTION 1.05       Expenses.

     The Borrower shall pay all reasonable out-of-pocket expenses
incurred by Agent in connection with the preparation, negotiation, execution and delivery of this
Second

36

 

Amendment, including, but not limited to, the reasonable fees and disbursements of counsel to
the Agent.

     SECTION 1.06       Cross-References.

     References in this Second Amendment to any Section
are, unless otherwise specified, to such Section of this Second Amendment.

     SECTION 1.07       Instrument Pursuant to Credit Agreement.

     This Second Amendment is a Loan
Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated
herein) be construed, administered and applied in accordance with the terms and provisions of the
Credit Agreement.

     SECTION 1.08       Further Acts.

     Each of the parties to this Second Amendment agrees that
at any time and from time to time upon the written request of any other party, it will execute and
deliver such further documents and do such further acts and things as such other party may
reasonably request in order to effect the purposes of this Second Amendment.

     SECTION 1.09       Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

     (a)       THIS SECOND AMENDMENT AND EACH OF THE OTHER LOAN DOCUMENTS SHALL BE INTERPRETED AND THE
RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK; PROVIDED THAT THE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER
FEDERAL LAW.

     (b)       ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS SECOND AMENDMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE BOROUGH OF MANHATTAN OR OF
THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS
SECOND AMENDMENT, EACH OF THE BORROWER, EACH OTHER CREDIT PARTY, THE AGENT AND THE LENDERS
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE
COURTS. EACH OF THE BORROWER, EACH OTHER CREDIT PARTY, THE AGENT AND THE LENDERS IRREVOCABLY
WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF
FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS SECOND AMENDMENT OR ANY DOCUMENT RELATED

37

 

HERETO. NOTWITHSTANDING THE FOREGOING: (1) THE AGENT AND THE LENDERS SHALL HAVE THE RIGHT TO
BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR ANY OTHER CREDIT PARTY OR THEIR RESPECTIVE
PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION THE AGENT OR THE LENDERS DEEM NECESSARY OR
APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL OR OTHER SECURITY FOR THE OBLIGATIONS AND (2)
EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE
IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS.

     (c)       THE BORROWER AND EACH OTHER CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL
PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL
(RETURN RECEIPT REQUESTED) DIRECTED TO THE BORROWER AT ITS ADDRESS SET FORTH IN SECTION
13.8 OF THE CREDIT AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS
AFTER THE SAME SHALL HAVE BEEN SO DEPOSITED IN THE U.S. MAILS POSTAGE PREPAID. NOTHING CONTAINED
HEREIN SHALL AFFECT THE RIGHT OF AGENT OR THE LENDERS TO SERVE LEGAL PROCESS BY ANY OTHER MANNER
PERMITTED BY LAW.

     (d)       THE BORROWER, EACH OTHER CREDIT PARTY, THE LENDERS AND THE AGENT EACH IRREVOCABLY WAIVE
THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF OR RELATED TO THIS SECOND AMENDMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT
BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE,
WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE BORROWER, EACH OTHER
CREDIT PARTY, THE LENDERS AND THE AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE
TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE
THAT THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY
ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE
VALIDITY OR ENFORCEABILITY OF THIS SECOND AMENDMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION
HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS.

38

 

     SECTION 1.10       Counterparts.

     This Second Amendment may be executed in any number of
counterparts and by the different parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together constitute one and the
same instrument.

     SECTION 1.11       Severability.

     In case any provision in or obligation under this Second
Amendment or the other Loan Documents shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations,
or of such provision or obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby.

     SECTION 1.12       Benefit of Agreement.

     This Second Amendment shall be binding upon and
inure to the benefit of and be enforceable by the respective successors and assigns of the parties
hereto; provided that the Borrower may not assign or transfer any of its interest hereunder without
the prior written consent of the Lenders.

     SECTION 1.13       Integration.

     This Second Amendment represents the agreement of the
Borrower, each other Credit Party, the Agent and each of the Lenders signatory hereto with respect
to the subject matter hereof, and there are no promises, undertakings, representations or
warranties relative to the subject matter hereof not expressly set forth or referred to herein or
in the other Loan Documents.

     SECTION 1.14       Confirmation.

     Except as expressly amended by the terms hereof, all of
the terms of the Credit Agreement and the other Loan Documents shall continue in full force and
effect and are hereby ratified and confirmed in all respects.

     SECTION 1.15       Loan Documents.

     Except as expressly set forth herein, the amendments
provided herein shall not by implication or otherwise limit, constitute a waiver of, or otherwise
affect the rights and remedies of the Lenders or the Agent under the Amended Agreement or any other
Loan Document, nor shall they constitute a waiver of any Event of Default, nor shall they alter,
modify, amend or in any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Amended Agreements or any other Loan Document. Each of the amendments
provided herein shall apply and be effective only with respect to

39

 

the provisions of the Amended Agreement specifically referred to by such amendments. Except
as expressly amended herein, the Amended Agreement and the other Loan Documents shall continue in
full force and effect in accordance with the provisions thereof. As used in the Amended Agreement,
the terms “Agreement”, “herein”, “hereinafter”, “hereunder”, “hereto” and words of similar import
shall mean, from and after the date hereof, the Amended Agreement.

[Signature Pages to Follow]

40

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Second
Amendment to be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

AMERICAN COLOR GRAPHICS, INC.

 	 
	 	By:  	       /s/ Patrick Kellick
 	 
	 	Name:  	Patrick Kellick 	 
	 	Title:  	Senior Vice President and Chief  

Financial Officer 	 
	 
	 	ADMINISTRATIVE AGENT AND 
COLLATERAL AGENT:

BANK OF AMERICA, N.A., as the Agent

 	 
	 	By:  	       /s/ Jang S. Kim
 	 
	 	Name:  	Jang S. Kim 	 
	 	Title:  	Vice President 	 
	 
	 	SYNDICATION AGENT:

GECC CAPITAL MARKETS GROUP 
INC., as
Syndication Agent

 	 
	 	By:  	       /s/ Alan T. White
 	 
	 	Name:  	Alan T. White 	 
	 	Title:  	Duly Authorized Signatory 	 
	 
	 	LENDERS:

BANK OF AMERICA, N.A., as a Lender

 	 
	 	By:  	       /s/ Jang S. Kim
 	 
	 	Name:  	Jang S. Kim 	 
	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL 
CORPORATION, as a
Lender

 	 
	 	By:  	       /s/ Eric A. Schaefer
 	 
	 	Name:  	Eric A. Schaefer 	 
	 	Title:  	Duly Authorized Signatory 	 
	 
	 	WEBSTER BUSINESS CREDIT 
CORPORATION, as a
Lender

 	 
	 	By:  	       /s/ Joseph J. Zautra
 	 
	 	Name:  	Joseph J. Zautra 	 
	 	Title:  	Vice President 	 
	 

ACKNOWLEDGED AND AGREED

by the undersigned Guarantor:

ACG HOLDINGS, INC., a Delaware corporation

	 	 	 	 	 
	 	 	 
	 	By:  	       /s/ Patrick Kellick
 	 
	 	Name:  	Patrick Kellick 	 
	 	Title:  	Senior Vice President and Chief
     
Financial Officer 	 
	 

41

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]