Document:

Exhibit  10.7

 

LOAN AND SECURITY AGREEMENT

 

 

DATED AS OF

          , 2002

 

 

BETWEEN

 

 

LASALLE BUSINESS CREDIT, INC.

 

 

THE LENDER,

 

 

AND

 

 

PERRY JUDD’S INCORPORATED

 

 

THE BORROWER

 

 

TABLE OF CONTENTS

 

	

  1.

  	

  DEFINITIONS.

  
	

   

  	

   

  	

   

  
	

  2.

  	

  LOANS

  
	

   

  	

  (a)

  	

  Revolving Loans

  
	

   

  	

  (b)

  	

  Repayments

  
	

   

  	

  (c)

  	

  Notes

  
	

   

  	

   

  	

   

  
	

  3.

  	

  LETTERS OF CREDIT

  
	

   

  	

  (a)

  	

  General Terms

  
	

   

  	

  (b)

  	

  Requests for Letters of Credit

  
	

   

  	

  (c)

  	

  Obligations Absolute

  
	

   

  	

  (d)

  	

  Expiration Dates of Letters of Credit

  
	

   

  	

   

  	

   

  
	

  4.

  	

  INTEREST, FEES AND CHARGES

  
	

   

  	

  (a)

  	

  Interest Rate

  
	

   

  	

  (b)

  	

  Other LIBOR Provisions

  
	

   

  	

  (c)

  	

  Fees And Charges

  
	

   

  	

  (d)

  	

  Maximum Interest

  
	

   

  	

   

  	

   

  
	

  5.

  	

  COLLATERAL

  
	

   

  	

  (a)

  	

  Grant of Security Interest to Lender

  
	

   

  	

  (b)

  	

  Other Security

  
	

   

  	

  (c)

  	

  Possessory Collateral

  
	

   

  	

  (d)

  	

  Electronic Chattel Paper

  
	

   

  	

   

  	

   

  
	

  6.

  	

  PRESERVATION

  OF COLLATERAL AND PERFECTION OF SECURITY INTERESTS THEREIN

  
	

   

  	

   

  	

   

  
	

  7.

  	

  INTENTIONALLY

  OMITTED

  
	

   

  	

   

  	

   

  
	

  8.

  	

  COLLECTIONS

  
	

   

  	

   

  	

   

  
	

  9.

  	

  COLLATERAL, AVAILABILITY AND FINANCIAL REPORTS AND SCHEDULES

  
	

   

  	

  (a)

  	

  Monthly Reports

  
	

   

  	

  (b)

  	

  Financial Statements

  
	

   

  	

  (c)

  	

  Annual

  Projections

  
	

   

  	

  (d)

  	

  Public Reporting

  
	

   

  	

  (e)

  	

  Other Information

  
	

   

  	

   

  	

   

  
	

  10.

  	

  TERMINATION; AUTOMATIC RENEWAL

  

 

i

 

	

  11.

  	

  REPRESENTATIONS AND WARRANTIES

  
	

   

  	

  (a)

  	

  Financial Statements and Other Information

  
	

   

  	

  (b)

  	

  Locations

  
	

   

  	

  (c)

  	

  Loans by Borrower

  
	

   

  	

  (d)

  	

  Accounts

  
	

   

  	

  (e)

  	

  Liens

  
	

   

  	

  (f)

  	

  Organization, Authority and No Conflict

  
	

   

  	

  (g)

  	

  Litigation

  
	

   

  	

  (h)

  	

  Compliance with Laws and Maintenance of

  Permits

  
	

   

  	

  (i)

  	

  Affiliate Transactions

  
	

   

  	

  (j)

  	

  Names and Trade Names

  
	

   

  	

  (k)

  	

  Equipment

  
	

   

  	

  (l)

  	

  Enforceability

  
	

   

  	

  (m)

  	

  Solvency

  
	

   

  	

  (n)

  	

  Indebtedness

  
	

   

  	

  (o)

  	

  Margin Security and Use of Proceeds

  
	

   

  	

  (p)

  	

  Parent,

  Subsidiaries and Affiliates

  
	

   

  	

  (q)

  	

  No

  Defaults

  
	

   

  	

  (r)

  	

  Employee Matters

  
	

   

  	

  (s)

  	

  Intellectual Property

  
	

   

  	

  (t)

  	

  Environmental Matters

  
	

   

  	

  (u)

  	

  ERISA Matters

  
	

   

  	

  (v)

  	

  Indenture

  
	

   

  	

   

  	

   

  
	

  12.

  	

  AFFIRMATIVE

  COVENANTS

  
	

   

  	

  (a)

  	

  Maintenance of Records

  
	

   

  	

  (b)

  	

  Notices

  
	

   

  	

  (c)

  	

  Compliance with Laws and Maintenance of

  Permits

  
	

   

  	

  (d)

  	

  Inspection and Audits

  
	

   

  	

  (e)

  	

  Insurance

  
	

   

  	

  (f)

  	

  Collateral

  
	

   

  	

  (g)

  	

  Use of Proceeds

  
	

   

  	

  (h)

  	

  Taxes

  
	

   

  	

  (i)

  	

  Intellectual Property

  
	

   

  	

  (j)

  	

  Checking Accounts

  
	

   

  	

   

  	

   

  
	

  13.

  	

  NEGATIVE

  COVENANTS

  
	

   

  	

  (a)

  	

  Guaranties

  
	

   

  	

  (b)

  	

  Indebtedness

  
	

   

  	

  (c)

  	

  Liens

  
	

   

  	

  (d)

  	

  Mergers, Sales, Acquisitions, Subsidiaries and Other Transactions

  Outside the Ordinary Course of Business

  
	

   

  	

  (e)

  	

  Dividends and Distributions

  
	

   

  	

  (f)

  	

  Investments; Loans

  
	

   

  	

  (g)

  	

  Fundamental

  Changes, Line of Business

  
	

   

  	

  (h)

  	

  Intentionally Omitted

  
	

   

  	

  (i)

  	

  Affiliate Transactions

  
	

   

  	

  (j)

  	

  Settling of Accounts

  

 

ii

 

	

  14.

  	

  FINANCIAL

  COVENANTS

  
	

   

  	

  (a)

  	

  Tangible Net Worth

  
	

   

  	

  (b)

  	

  Fixed Charge Coverage

  
	

   

  	

   

  	

   

  
	

  15.

  	

  DEFAULT

  
	

   

  	

  (a)

  	

  Payment

  
	

   

  	

  (b)

  	

  Breach of this Agreement and the Other

  Agreements

  
	

   

  	

  (c)

  	

  Breaches of Other Obligations

  
	

   

  	

  (d)

  	

  Breach of Representations and Warranties

  
	

   

  	

  (e)

  	

  Loss of Collateral

  
	

   

  	

  (f)

  	

  Levy,

  Seizure or Attachment

  
	

   

  	

  (g)

  	

  Bankruptcy or Similar Proceedings

  
	

   

  	

  (h)

  	

  Appointment of Receiver

  
	

   

  	

  (i)

  	

  Judgment

  
	

   

  	

  (j)

  	

  Dissolution of Obligor

  
	

   

  	

  (k)

  	

  Default or Revocation of Guaranty

  
	

   

  	

  (l)

  	

  Criminal Proceedings

  
	

   

  	

  (m)

  	

  Change of Control

  
	

   

  	

  (n)

  	

  Material Adverse Change

  
	

   

  	

  (o)

  	

  Indenture Event of Default

  
	

   

  	

   

  	

   

  
	

  16.

  	

  REMEDIES

  UPON AN EVENT OF DEFAULT

  
	

   

  	

   

  	

   

  
	

  17.

  	

  CONDITIONS

  PRECEDENT

  
	

   

  	

   

  	

   

  
	

  18.

  	

  INDEMNIFICATION

  
	

   

  	

   

  	

   

  
	

  19.

  	

  NOTICE

  
	

   

  	

   

  	

   

  
	

  20.

  	

  CHOICE

  OF GOVERNING LAW; CONSTRUCTION; FORUM SELECTION

  
	

   

  	

   

  	

   

  
	

  21.

  	

  MODIFICATION AND BENEFIT OF AGREEMENT

  
	

   

  	

   

  	

   

  
	

  22.

  	

  HEADINGS OF SUBDIVISIONS

  
	

   

  	

   

  	

   

  
	

  23.

  	

  POWER OF ATTORNEY

  
	

   

  	

   

  	

   

  
	

  24.

  	

  CONFIDENTIALITY

  
	

   

  	

   

  	

   

  
	

  25.

  	

  COUNTERPARTS

  
	

   

  	

   

  	

   

  
	

  26.

  	

  ELECTRONIC SUBMISSIONS

  

 

iii

 

	

  27.

  	

  WAIVERS

  
	

   

  	

   

  	

   

  
	

  28.

  	

  DESIGNATED SENIOR INDEBTEDNESS

  
	

   

  	

   

  
	

  EXHIBIT A – BUSINESS AND COLLATERAL

  LOCATIONS

  
	

   

  	

   

  
	

  EXHIBIT B – COMPLIANCE CERTIFICATE

  
	

   

  	

   

  
	

  EXHIBIT C – COMMERCIAL TORT CLAIMS

  
	

   

  	

   

  
	

  SCHEDULE 1 – PERMITTED LIENS

  
	

   

  	

   

  
	

   

  	

   

  
	

  SCHEDULE 11(g) – LITIGATION

  
	

   

  	

   

  
	

  SCHEDULE 11(i) – AFFILIATE TRANSACTIONS

  
	

   

  	

   

  
	

  SCHEDULE 11(j) – NAMES & TRADE NAMES

  
	

   

  	

   

  
	

  SCHEDULE 11(n) – INDEBTEDNESS

  
	

   

  	

   

  
	

  SCHEDULE

  11(p) – PARENT, SUBSIDIARIES AND AFFILIATES

  
	

   

  	

   

  
	

  SCHEDULE 12(j) – CHARGES REGARDING CHECKING

  ACCOUNTS

  
	

   

  	

   

  
	

  SCHEDULE 13(f) –LOANS BY BORROWER

  
	

   

  	

   

  
	

  SCHEDULE 17(a) – CLOSING DOCUMENT CHECKLIST

  
				

 

iv

 

LOAN AND SECURITY AGREEMENT

 

THIS LOAN AND

SECURITY AGREEMENT (as amended, modified or supplemented from time to time,

this “Agreement”) made this

       day of

              ,

2002 by and between LASALLE BUSINESS CREDIT, INC., a Delaware corporation (“Lender”), 135 South LaSalle Street,

Chicago, Illinois 60603–4105, and PERRY JUDD’S INCORPORATED, a Delaware

corporation, having its principal place of business at 575 West Madison Street,

Waterloo, Wisconsin 53594-0097 (“Borrower”).

 

WITNESSETH:

 

WHEREAS,

Borrower may, from time to time, request Loans from Lender, and the parties

wish to provide for the terms and conditions upon which such Loans or other

financial accommodations, if made by Lender, shall be made;

 

NOW,

THEREFORE, in consideration of any Loan (including any Loan by renewal or

extension) hereafter made to Borrower by Lender, and for other good and

valuable consideration, the receipt and sufficiency of which are hereby

acknowledged by Borrower, the parties agree as follows:

 

1.    

DEFINITIONS.

 

“Account”, “Account Debtor”, “Chattel

Paper”, “Commercial Tort Claims”,

“Deposit Accounts”, “Documents”, “Electronic Chattel Paper”, “Equipment”,

“General Intangibles”,

“Goods”, “Instruments”, “Inventory”, “Investment Property”, “Letter-of-Credit

Right”, “Proceeds” and

“Tangible Chattel Paper” shall

have the respective meanings assigned to such terms in the Illinois Uniform

Commercial Code, as the same may be in effect from time to time.

 

“Affiliate” shall mean any Person

(i) which directly or indirectly through one or more intermediaries

controls, is controlled by, or is under common control with, Borrower,

(ii) which beneficially owns or holds five percent (5%) or more of the

voting control or equity interests of Borrower, or (iii) five percent (5%)

or more of the voting control or equity interests of which is beneficially

owned or held by Borrower.

 

“Business Day” shall mean any day other than

a Saturday, a Sunday or (i) with respect to all matters, determinations,

fundings and payments in connection with LIBOR Rate Loans, any day on which

banks in London, England or Chicago, Illinois are required or permitted to

close, and (ii) with respect to all other matters, any day that banks in

Chicago, Illinois are required or permitted to close.

 

“Capital Expenditures” shall mean with

respect to any period, the aggregate of all expenditures (whether paid in cash

or accrued as liabilities and including expenditures for capitalized lease

obligations) by Borrower during such period that are required by generally

accepted accounting principles, consistently applied, to be included in or

reflected 

 

1

 

by the property, plant and

equipment or similar fixed asset accounts (or intangible accounts subject to

amortization) on the balance sheet of Borrower.

 

“Collateral” shall mean all of the property

of Borrower described in Section 5 hereof, together with all other real

or personal property of any Obligor or any other Person, including, without

limitation, Holdings, now or hereafter pledged to Lender to secure, either

directly or indirectly, repayment of any of the Liabilities.

 

“EBITDA” shall mean,

with respect to any period, Borrower’s net income after taxes for such period

(excluding any after-tax gains or losses on the sale of assets (other than the

sale of Inventory in the ordinary course of business) and excluding other

after-tax extraordinary gains or losses) plus interest expense, income

tax expense, depreciation and amortization for such period, plus or minus

any other non-cash charges or gains which have been subtracted or added in

calculating net income after taxes for such period.

 

“Eligible Account” shall mean an Account

owing to Borrower which is acceptable to Lender in its Permitted Discretion for

lending purposes (provided that Lender shall give Borrower prior written notice

of any eligibility criteria established by Lender and not set forth

herein).  Without limiting Lender’s discretion, Lender shall, in general,

consider an Account to be an Eligible Account if it meets, and so long as it

continues to meet, the following requirements:

 

(i)            it is genuine and in all respects

what it purports to be;

 

(ii)           it is owned by

Borrower, Borrower has the right to subject it to a security interest in favor

of Lender or assign it to Lender and it is subject to a first priority

perfected security interest in favor of Lender and to no other claim, lien,

security interest or encumbrance whatsoever, other than Permitted Liens;

 

(iii)          it arises from

(A) the performance of services by Borrower in the ordinary course of

Borrower’s business, and such services have been fully performed and

acknowledged and accepted by the Account Debtor thereunder; or (B) the

sale or lease of Goods by Borrower in the ordinary course of Borrower’s

business, and (x) such Goods have been completed in accordance with the Account

Debtor’s specifications (if any) and delivered to the Account Debtor, (y) such

Account Debtor has not refused to accept, returned or offered to return, any of

the Goods which are the subject of such Account, and (z) Borrower has

possession of, or Borrower has delivered to Lender (at Lender’s request)

shipping and delivery receipts evidencing delivery of such Goods;

 

(iv)          it is evidenced by

an invoice rendered to the Account Debtor thereunder, is due and payable within

ninety (90) days after the date of the invoice and does not remain unpaid

ninety (90) days past the invoice date thereof; provided, however, that if more

than twenty-five percent (25%) of the aggregate dollar amount of invoices owing

by a particular Account Debtor remain unpaid ninety (90) days after the

respective invoice dates thereof, then all Accounts owing by that Account

Debtor shall be deemed ineligible;

 

2

 

(v)           it is a valid,

legally enforceable and unconditional obligation of the Account Debtor

thereunder, and it shall not be an Eligible Account to the extent of any

setoff, counterclaim, credit, allowance or adjustment by such Account Debtor,

or if it is subject to any claim by such Account Debtor denying liability

thereunder in whole or in part;

 

(vi)          it does not arise

out of a contract or order which fails in any material respect to comply with

the requirements of applicable law;

 

(vii)         the Account Debtor

thereunder is not a director, officer, employee or agent of Borrower, or a

Subsidiary, Parent or Affiliate;

 

(viii)        it is not an Account

with respect to which the Account Debtor is the United States of America or any

state or local government, or any department, agency or instrumentality

thereof, unless Borrower assigns its right to payment of such Account to Lender

pursuant to, and in full compliance with, the Assignment of Claims Act of 1940,

as amended, or any comparable state or local law, as applicable;

 

(ix)           it is not an

Account with respect to which the Account Debtor is located in a state which

requires Borrower, as a precondition to commencing or maintaining an action in

the courts of that state, either to (A) receive a certificate of authority

to do business and be in good standing in such state; or (B) file a notice

of business activities report or similar report with such state’s taxing

authority, unless (x) Borrower has taken one of the actions described in

clauses (A) or (B); (y) the failure to take one of the actions described

in either clause (A) or (B) may be cured retroactively by Borrower at its election;

or (z) Borrower has proven, to Lender’s satisfaction, that it is exempt

from any such requirements under any such state’s laws;

 

(x)            The Account Debtor

is located within the United States of America,

Canada or is located within a foreign country other than Canada and,

in such case, the Account is payable in U.S. Dollars and with respect to

Account Debtors who are residents or citizens of and are located within a

foreign country other than Canada, the Account is supported by a letter of

credit which is in form and substance satisfactory to Lender, issued by a

financial institution acceptable to Lender and assigned to Lender in a manner

acceptable to Lender;

 

(xi)           other than Accounts

owing from the Boy Scouts of America, it is not an Account with respect to

which the Account Debtor’s obligation to pay is subject to any repurchase

obligation or return right (other than return rights for defective Goods or

repairs available in the ordinary course of business), as with sales made on a

bill-and-hold, guaranteed sale, sale on approval, sale or return or consignment

basis;

 

(xii)          it is not an

Account (A) with respect to which any representation or warranty contained

in this Agreement is untrue; or (B) which violates any of the covenants of

Borrower contained in this Agreement;

 

3

 

(xiii)         except with respect

to Time Incorporated and The McGraw Hill Companies, Inc., it is not an Account

which, when added to a particular Account Debtor’s other indebtedness to Borrower,

exceeds ten percent (10%) of all Accounts of Borrower (except that Accounts

excluded from Eligible Accounts solely by reason of this clause (xiii) shall be

Eligible Accounts to the extent of such credit limit); and

 

(xiv)        it is not an Account

with respect to which the prospect of payment by the Account Debtor is or will

be impaired, as determined by Lender in its Permitted Discretion.

 

“Environmental Laws” shall mean all federal,

state, district, local and foreign laws, rules, regulations, ordinances, and

consent decrees relating to health, safety, hazardous substances, pollution and

environmental matters, as now or at any time hereafter in effect, applicable to

Borrower’s business or facilities owned or operated by Borrower, including laws

relating to emissions, discharges, releases or threatened releases of

pollutants, contamination, chemicals, or hazardous, toxic or dangerous

substances, materials or wastes into the environment (including, without

limitation, ambient air, surface water, ground water, land surface or

subsurface strata) or otherwise relating to the generation, manufacture,

processing, distribution, use, treatment, storage, disposal, transport or

handling of Hazardous Materials.

 

“ERISA” shall mean the Employee Retirement

Income Security Act of 1974, as amended, modified or restated from time to

time.

 

“Event of Default” shall have the meaning

specified in Section 15 hereof.

 

“Fiscal Year” shall mean each twelve (12)

month accounting period of Borrower, which ends on December 31st of

each year.

 

“Fixed Charges” shall

mean for any period, without duplication, scheduled payments of principal

during the applicable period with respect to all indebtedness of Borrower for

borrowed money, plus scheduled payments of principal during the applicable period

with respect to all capitalized lease obligations of Borrower, plus scheduled

payments of interest during the applicable period with respect to all

indebtedness of Borrower for borrowed money including capital lease

obligations, plus unfinanced Capital Expenditures of Borrower during the

applicable period.

 

“Hazardous Materials” shall mean any

hazardous, toxic or dangerous substance, materials and wastes, including,

without limitation, hydrocarbons (including naturally occurring or man-made

petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde

insulation, radioactive materials, biological substances, polychlorinated

biphenyls, pesticides, herbicides and any other kind and/or type of pollutants

or contaminants (including, without limitation, materials which include

hazardous constituents), sewage, sludge, industrial slag, solvents and/or any

other similar substances, materials, or wastes and including any other

substances, materials or wastes that are or become regulated under any

Environmental Law (including, without limitation any that are or become

classified as hazardous or toxic under any Environmental Law).

 

4

 

“Holdings” shall

mean Perry Judd’s Holdings, Inc., a Delaware corporation.

 

“Indemnified Party” shall have the meaning

specified in Section 18 hereof.

 

“Indenture” shall

mean the Indenture dated December 16, 1997 among Perry Judd’s Holdings, Inc., a

Delaware Corporation, each of the Subsidiary Guarantors named therein and U.S.

Trust Company of California, N.A. , as Trustee, as in effect as of the date

hereof.

 

“Interest Period” shall

have the meaning specified in subsection 4(a)(ii) hereof.

 

“LaSalle Bank” shall mean LaSalle Bank

National Association, Chicago, Illinois.

 

“Letter of Credit” shall mean any Letter of

Credit issued on behalf of Borrower in accordance with this Agreement.

 

“Letter of Credit Obligations” shall mean,

as of any date of determination, the sum of (i) the aggregate undrawn face

amount of all Letters of Credit, and (ii) the aggregate unreimbursed amount of

all drawn Letters of Credit not already converted to Loans hereunder.

 

“Leverage Ratio” shall

mean the ratio of Borrower’s funded indebtedness to EBITDA.

 

“Liabilities” shall mean any and all obligations,

liabilities and indebtedness of Borrower to Lender or to any parent, affiliate

or subsidiary of Lender of any and every kind and nature, howsoever created,

arising or evidenced and howsoever owned, held or acquired, whether now or

hereafter existing, whether now due or to become due, whether primary,

secondary, direct, indirect, absolute, contingent or otherwise (including,

without limitation, obligations of performance), whether several, joint or

joint and several, and whether arising or existing under written or oral

agreement or by operation of law.

 

“LIBOR Rate” shall

mean, with respect to any LIBOR Rate Loan for any Interest Period, a rate per

annum equal to (a) the offered rate for deposits in United States dollars for a

period equal to such Interest Period as it appears on Telerate page 3750 as of

11:00 a.m. (London time) two Business Days prior to the first day of such

Interest Period.  “Telerate page 3750” means the display designated as

“Page 3750” on the Telerate Service (or such other page as may replace page

3750 of that service or such other service) as may be nominated by the British

Bankers’ Association as the vendor for the purpose of displaying British

Bankers’ Association interest settlement rates for United States dollar

deposits) divided by (b) a number equal to 1.0 minus the maximum reserve

percentages (expressed as a decimal fraction) including, without limitation,

basic supplemental, marginal and emergency reserves under any regulations of

the Board of Governors of the Federal Reserve System or other governmental

authority having jurisdiction with respect thereto, as now and from time to

time in effect, for Eurocurrency funding (currently referred to as

“Eurocurrency Liabilities” in Regulation D of such Board) which are required to

be maintained by Lender

 

5

 

by the Board of Governors of

the Federal Reserve System.  The LIBOR Rate shall be adjusted

automatically on and as of the effective date of any change in such reserve

percentage.

 

“LIBOR Rate Loans” shall

mean the Loans bearing interest with reference to the LIBOR Rate.

 

“Loans” shall mean all loans and advances

made by Lender to or on behalf of Borrower hereunder.

 

“Lock Box” and “Lock Box Account” shall have the meanings specified in subsection 8(a)

hereof.

 

“Material Adverse Effect” shall mean a

material adverse effect on the business,, assets, liabilities, operations or

condition, financial or otherwise, of a Person.

 

“Maximum Loan Limit” shall mean Twenty-Five

Million and No/100 Dollars ($25,000,000.00)

 

“Maximum Revolving Loan Limit” shall have

the meaning specified in subsection 2(a) hereof.

 

“Obligor” shall mean Borrower and each other

Person who is or shall become primarily or secondarily liable for any of the

Liabilities.

 

“Original Term” shall have the meaning

specified in Section 10 hereof.

 

“Other Agreements” shall mean all

agreements, instruments and documents, other than this Agreement, including,

without limitation, guaranties, mortgages, trust deeds, pledges, powers of

attorney, consents, assignments, contracts, notices, security agreements,

leases, financing statements and all other writings heretofore, now or from

time to time hereafter executed by or on behalf of Borrower or any other Person

and delivered to Lender or to any parent, affiliate or subsidiary of Lender in

connection with the Liabilities or the transactions contemplated hereby, as

each of the same may be amended, modified or supplemented from time to time.

 

“Parent” shall mean any Person now or at any

time or times hereafter owning or controlling (alone or with any other Person)

at least a majority of the issued and outstanding equity of Borrower and, if

Borrower is a partnership, the general partner of Borrower.

 

“PBGC” shall have the meaning specified in subsection 12(b)(v)

hereof.

 

“Permitted

Discretion” shall mean a

determination made in good faith and in the exercise of reasonable (from the

perspective of a secured asset-based lender) business judgment.

 

“Permitted Liens” shall mean

(i) statutory liens of landlords, carriers, warehousemen, processors,

mechanics, materialmen or suppliers incurred in the ordinary

 

6

 

course of business and securing

amounts not yet due or declared to be due by the claimant thereunder or amounts

which are being contested in good faith and by appropriate proceedings and for

which Borrower has maintained adequate reserves; (ii) liens or security

interests in favor of Lender; (iii) zoning restrictions and easements, licenses,

covenants and other restrictions affecting the use of real property that do not

individually or in the aggregate have a material adverse effect on Borrower’s

ability to use such real property for its intended purpose in connection with

Borrower’s business; (iv) liens in connection with purchase money

indebtedness and capitalized leases otherwise permitted pursuant to this

Agreement, provided, that such liens attach only to the assets the purchase of

which was financed by such purchase money indebtedness or which is the subject

of such capitalized leases; (v) liens set forth on Schedule 1; (vi) liens

specifically permitted by Lender in writing; (vii) involuntary liens securing

amounts less than $500,000.00 or involuntary liens which are released or for which

a bond acceptable to Lender in its Permitted Discretion has been posted within

ten (10) days of its creation, or which are covered by insurance to the

reasonable satisfaction of Lender; (viii) pledges or deposits in connection

with worker’s compensation, unemployment insurance and other social security

legislation, or to secure the performance of bids, tenders, contracts (other

than for the repayment of borrowed money) or leases or to secure statutory

obligations or surety, appeal or stay bonds, or to secure indemnity,

performance or other similar bonds in the ordinary course of business; (ix)

liens for taxes not yet due or for taxes which are being contested in good

faith and by appropriate proceedings and for which  reserves are being

maintained on Borrower’s financial statements in such amount as is required

under generally accepted accounting principles and a reserve is maintained by

Lender against the amount which Borrower is permitted to borrow hereunder in an

amount of money which, in the sole judgment of Lender is sufficient to pay such

taxes and any interest of penalties that may accrue thereon, and if Borrower

fails to prosecute such contest, Lender may advance and pay such taxes,

interest and penalties and any amounts so advanced shall constitute Loans

hereunder; (x) liens on assets of Borrower which are not part of the

Collateral; (xi) bankers’ liens or rights of recoupment or offset arising in

connection with investments permitted under subsection 13(f); and (xii)

extensions and renewals of any of the foregoing so long as the aggregate amount

of extended and renewed liens are not increased and are on terms and conditions

no more restricted than the terms and conditions of the liens extended and

renewed.

 

“Person” shall mean any individual, sole

proprietorship, partnership, joint venture, trust, unincorporated organization,

association, corporation, limited liability company, institution, entity, party

or foreign or United States government (whether federal, state, county, city,

municipal or otherwise), including, without limitation, any instrumentality,

division, agency, body or department thereof.

 

“Plan” shall have the meaning specified in subsection

12(b)(v) hereof.

 

“Prime Rate” shall mean LaSalle Bank’s

publicly announced prime rate (which is not intended to be LaSalle Bank’s

lowest or most favorable rate in effect at any time) in effect from time to

time.

 

“Prime Rate Loans” shall

mean the Loans bearing interest with reference to the Prime Rate.

 

7

 

“Renewal Term” shall have the meaning

specified in Section 10 hereof.

 

“Revolving Loan Limit” shall have the

meaning specified in subsection 2(a) hereof.

 

“Revolving Loans” shall have the meaning

specified in subsection 2(a) hereof.

 

“Subsidiary” shall mean any corporation of

which more than fifty percent (50%) of the outstanding capital stock having

ordinary voting power to elect a majority of the board of directors of such

corporation (irrespective of whether at the time stock of any other class of

such corporation shall have or might have voting power by reason of the

happening of any contingency) is at the time, directly or indirectly, owned by

Borrower, or any partnership, joint venture or limited liability company of

which more than fifty percent (50%) of the outstanding equity interests are at

the time, directly or indirectly, owned by Borrower or any partnership of which

Borrower is a general partner.

 

“Tangible Net Worth” shall have the meaning

specified in subsection 14(a) hereof.

 

“Tax” shall mean, in relation to any LIBOR

Rate Loans and the applicable LIBOR Rate, any tax, levy, impost, duty,

deduction, withholding or charges of whatever nature required to be paid by

Lender and/or to be withheld or deducted from any payment otherwise required

hereby to be made by Borrower to Lender; provided, that the term “Tax” shall

not include any taxes imposed upon the net income of Lender.

 

2.    

LOANS.

 

(a)  

Revolving Loans.

 

Subject to the

terms and conditions of this Agreement and the Other Agreements, during the

Original Term and any Renewal Term, Lender shall, absent the occurrence of an

Event of Default, make revolving loans and advances (the “Revolving Loans”) in an amount up to the

sum of the following sublimits (the “Revolving

Loan Limit”):

 

(i)            Eighty-five percent (85%) of the

face amount (less maximum discounts, credits and allowances which may be taken

by or granted to Account Debtors in connection therewith in the ordinary course

of Borrower’s business) of Borrower’s Eligible Accounts; minus

 

(ii)           such reserves as Lender elects, in

its Permitted Discretion to establish from time to time;

 

provided, that the Revolving

Loan Limit shall in no event exceed Twenty-Five Million and No/100 Dollars

($25,000,000.00) (the “Maximum Revolving Loan Limit”).

 

The aggregate

unpaid principal balance of the Revolving Loans shall not at any time exceed

the lesser of the (i) Revolving Loan Limit minus the Letter of Credit

 

8

 

Obligations and (ii) the

Maximum Revolving Loan Limit minus the Letter of Credit Obligations.  If

at any time the outstanding Revolving Loans exceeds either the Revolving Loan

Limit or  the Maximum

Revolving Loan Limit, in each case minus the Letter of Credit Obligations, or

any portion of the Revolving Loans and Letter of Credit Obligations exceeds any

applicable sublimit within the Revolving Loan Limit, Borrower shall

immediately, and without the necessity of demand by Lender, pay to Lender such

amount as may be necessary to eliminate such excess and Lender shall apply such

payment to the Revolving Loans to eliminate such excess.

 

Borrower

hereby authorizes Lender, in its Permitted Discretion, to charge any of

Borrower’s accounts or advance Revolving Loans to make any payments of

principal, interest, fees, costs or expenses required to be made under this

Agreement or the Other Agreements.

 

A request for

a Revolving Loan shall be made or shall be deemed to be made, each in the

following manner: Borrower shall give Lender same day notice, no later than 1:00

P.M. (determined based on the local time of Borrower at its principal place of

business) for such day, of its request for a Revolving Loan as a Prime Rate

Loan, and at least two (2) Business Days prior notice of its request for a

Revolving Loan as a LIBOR Rate Loan, in which notice Borrower shall specify the

amount of the proposed borrowing and the proposed borrowing date; provided,

however, that no such request may be made, unless with Lender’s consent, at a

time when there exists an Event of Default or an event which, with the passage

of time or giving of notice, will become an Event of Default.  In the

event that Borrower maintains a controlled disbursement account at LaSalle

Bank, each check presented for payment against such controlled disbursement account

and any other charge or request for payment against such controlled

disbursement account shall constitute a request for a Revolving Loan as a Prime

Rate Loan.  As an accommodation to Borrower, Lender may permit telephone

requests for Revolving Loans and electronic transmittal of instructions,

authorizations, agreements or reports to Lender by Borrower.  Unless

Borrower specifically directs Lender in writing not to accept or act upon

telephonic or electronic communications from Borrower, Lender shall have no

liability to Borrower for any loss or damage suffered by Borrower as a result

of Lender’s honoring, in good faith, of any requests, execution of any

instructions, authorizations or agreements or reliance on any reports

communicated to it telephonically or electronically and purporting to have been

sent to Lender by Borrower and Lender shall have no duty to verify the origin

of any such communication or the authority of the Person sending it.

 

Borrower

hereby irrevocably authorizes Lender to disburse the proceeds of each Revolving

Loan requested by Borrower, or deemed to be requested by Borrower, as

follows:  the proceeds of each Revolving Loan requested under Section

2(a) shall be disbursed by Lender in lawful money of the United States of

America in immediately available funds, in the case of the initial borrowing,

in accordance with the terms of the written disbursement letter from Borrower,

and in the case of each subsequent borrowing, by wire transfer or Automated

Clearing House (ACH) transfer to such bank account as may be agreed upon by

Borrower and Lender from time to time, or elsewhere if pursuant to a written

direction from Borrower.

 

9

 

(b) 

Repayments.

 

The

Liabilities shall be repaid as follows:

 

(i)            Repayment of Revolving Loans. 

The Revolving Loans and all other Liabilities shall be repaid on the last day

of the Original Term or any Renewal Term if this Agreement is renewed pursuant

to Section 10 hereof.

 

(c)  Notes.

 

The Loans

shall, in Lender’s Permitted Discretion, be evidenced by one or more promissory

notes in form and substance satisfactory to Lender.  However, if such

Loans are not so evidenced, such Loans may be evidenced solely by entries upon

the books and records maintained by Lender.

 

3.  

LETTERS OF CREDIT.

 

(a) 

General Terms.

 

Subject to the

terms and conditions of this Agreement and the Other Agreements, during the

Original Term or any Renewal Term, Lender shall, absent the existence of an

Event of Default, from time to time cause to be issued and co-sign for or

otherwise guarantee, upon Borrower’s request, commercial and/or standby Letters

of Credit; provided, that the aggregate undrawn face amount of all such Letters

of Credit shall at no time exceed Five Million and No/100 Dollars

($5,000,000.00).  Payments made by Lender to any Person on account of any

Letter of Credit shall constitute Loans hereunder and Borrower agrees that each

payment made by the issuer of a Letter of Credit in respect of a Letter of

Credit shall constitute a request by Borrower for a Loan to reimburse such

issuer.  Borrower shall remit to Lender a Letter of Credit fee equal to

one and one-half percent (1-1/2%) per annum on the aggregate undrawn face

amount of all Letters of Credit outstanding, which fee shall be payable monthly

in arrears on the last Business Day of each month.  Borrower shall also

pay on demand the normal and customary administrative charges of the issuer of

the Letter of Credit for issuance, amendment, negotiation, renewal or extension

of any Letter of Credit.

 

(b)  Requests for Letters

of Credit.

 

Borrower shall

make requests for Letters of Credit in writing at least two (2) Business Days

prior to the date such Letter of Credit is to be issued.  Each such

request shall specify the date such Letter of Credit is to be issued, the

amount thereof, the name and address of the beneficiary thereof and a

description of the transaction to be supported thereby.  Any such notice

shall be accompanied by the form of Letter of Credit requested and any

application or reimbursement agreement required by the issuer of such Letter of

Credit.  If any term of such application or reimbursement agreement is

inconsistent with this Agreement, then the provisions of this Agreement shall

control to the extent of such inconsistency.

 

10

 

(c)  Obligations Absolute.

 

Borrower shall

be obligated to reimburse the issuer of any Letter of Credit, or Lender if

Lender has reimbursed such issuer on Borrower’s behalf, for any payments made

in respect of any Letter of Credit, which obligation shall be unconditional and

irrevocable and shall be paid regardless of:  (i) any lack of validity or

enforceability of any Letter of Credit, (ii) any amendment or waiver of or

consent or departure from all or any provisions of any Letter of Credit, this

Agreement or any Other Agreement, (iii) the existence of any claim, set off,

defense or other right which Borrower or any other Person may have against any

beneficiary of any Letter of Credit, Lender or the issuer of the Letter of

Credit, (iv) any draft or other document presented under any Letter of Credit

proving to be forged, fraudulent, invalid, or insufficient in any respect or

any statement therein being untrue or inaccurate in any respect, (v) any

payment under any Letter of Credit against presentation of a draft or other

document that does not comply with the terms of such Letter of Credit, and (vi)

any other act or omission to act or delay of any kind of the issuer of such

Letter of Credit, the Lender or any other Person or any other event or

circumstance that might otherwise constitute a legal or equitable discharge of

Borrower’s obligations hereunder.  It is understood and agreed by Borrower

that the issuer of any Letter of Credit may accept documents that appear on

their face to be in order without further investigation or inquiry, regardless

of any notice or information to the contrary.

 

(d)  Expiration Dates of

Letters of Credit.

 

The expiration

date of each Letter of Credit shall be no later than the earlier of (i) one (1)

year from the date of issuance and (ii) the thirtieth (30th) day prior to the

end of the Original Term or any Renewal Term.  Notwithstanding the

foregoing, a Letter of Credit may provide for automatic extensions of its

expiration date for one or more one (1) year periods, so long as the issuer

thereof has the right to terminate the Letter of Credit at the end of each one

(1) year period and no extension period extends past the thirtieth (30th) day

prior to the end of the Original Term or any Renewal Term.

 

4.    

INTEREST, FEES AND CHARGES.

 

(a)   

Interest Rate.

 

Subject to the

terms and conditions set forth below, the Loans shall bear interest at the per

annum rate of interest set forth in subsections (i), (ii) or (iii)

below:

 

	

  Leverage Ratio

  	

   

  	

  Prime Rate plus

  	

   

  	

  LIBOR Rate plus

  	

   

  
	

  > 5.0

  	

   

  	

  3/4ths of 1%

  	

   

  	

  250 basis

  points

  	

   

  
	

  > 4.5 but

  <5.0

  	

   

  	

  1⁄2 of 1%

  	

   

  	

  225 basis

  points

  	

   

  
	

  > 4.0 but

  <4.5

  	

   

  	

  1/4th

  of 1%

  	

   

  	

  200 basis

  points

  	

   

  
	

  > 3.5 but <

  4.0

  	

   

  	

  0%

  	

   

  	

  175 basis

  points

  	

   

  
	

  < 3.5

  	

   

  	

  0%

  	

   

  	

  150 basis

  points

  	

   

  

 

11

 

(i)            The Prime Rate Loans shall be

payable on the last Business Day of each month in arrears.  Said rates of

interest shall increase or decrease by an amount equal to each increase or decrease

in the Prime Rate effective on the effective date of each such change in the

Prime Rate.

 

(ii)           The rate set forth above with respect

to LIBOR Rate Loans shall remain fixed for the applicable Interest

Period.  “Interest Period”

shall mean any continuous period of thirty (30), sixty (60), ninety (90) or one

hundred eighty (180) days, as selected from time to time by Borrower by

irrevocable notice (in writing, by telecopy, telex, electronic mail or cable)

given to Lender not less than two (2) Business Days prior to the first day of

each respective Interest Period; provided that:  (A) each such period

occurring after such initial period shall commence on the day on which the

immediately preceding period expires; (B) the final Interest Period shall be

such that its expiration occurs on or before the end of the Original Term or

any Renewal Term; and (C) if for any reason Borrower shall fail to timely

select a period, then such Loans shall continue as, or revert to, Prime Rate

Loans.  Interest shall be payable on the last Business Day of each month

in arrears and on the last Business Day of such Interest Period.

 

(iii)          Upon the occurrence of an Event of

Default and during the continuance thereof, the Loans shall bear interest at

the rate of two percent (2.0%) per annum in excess of the interest rate

otherwise payable thereon, which interest shall be payable on demand.  All

interest shall be calculated on the basis of a 360-day year.

 

(b)  Other LIBOR

Provisions.

 

(i)            Subject to the provisions of this

Agreement, Borrower shall have the option (A) as of any date, to convert all or

any part of the Prime Rate Loans to, or request that new Loans be made as,

LIBOR Rate Loans of various Interest Periods, (B) as of the last day of any

Interest Period, to continue all or any portion of the relevant LIBOR Rate

Loans as LIBOR Rate Loans; (C) as of the last day of any Interest Period, to

convert all or any portion of the LIBOR Rate Loans to Prime Rate Loans; and (D)

at any time, to request new Loans as Prime Rate Loans; provided, that Loans may

not be continued as or converted to LIBOR Rate Loans, if the continuation or

conversion thereof would violate the provisions of subsections 4(b)(ii)

or 4(b)(iii) of this Agreement or if an Event of Default has occurred.

 

(ii)           Lender’s determination of the LIBOR

Rate as provided above shall be conclusive, absent manifest error. 

Furthermore, if Lender determines, in good faith (which determination shall be

conclusive, absent manifest error), prior to the commencement of any Interest

Period that (A) U.S. Dollar deposits of sufficient amount and maturity for

funding the Loans are not available to Lender in the London Interbank

Eurodollar market in the ordinary course of business, or (B) by reason of

circumstances affecting the London Interbank Eurodollar market, adequate and

fair means do not exist for ascertaining the rate of interest to be applicable

to the Loans requested by Borrower to be LIBOR Rate Loans or the Loans bearing

interest at the rates set forth in subsection 4(a)(ii) of this Agreement

shall not represent the effective pricing to Lender for U.S. Dollar deposits of

a comparable amount for the relevant period (such as for example, but not

limited to, official reserve requirements required by Regulation D to the

extent not given effect in determining the rate), Lender shall

 

12

 

promptly notify Borrower and

(1) all existing LIBOR Rate Loans shall convert to Prime Rate Loans upon the

end of the applicable Interest Period, and (2) no additional LIBOR Rate Loans

shall be made until such circumstances are cured.

 

(iii)          If, after the date hereof, the

introduction of, or any change in any applicable law, treaty, rule, regulation

or guideline or in the interpretation or administration thereof by any

governmental authority or any central bank or other fiscal, monetary or other

authority having jurisdiction over Lender or its lending offices (a “Regulatory Change”), shall, in the opinion

of counsel to Lender, make it unlawful for Lender to make or maintain LIBOR

Rate Loans, then Lender shall promptly notify Borrower and (A) the LIBOR Rate

Loans shall immediately convert to Prime Rate Loans on the last Business Day of

the then existing Interest Period or on such earlier date as required by law and

(B) no additional LIBOR Rate Loans shall be made until such circumstance is

cured.

 

(iv)        If, for any reason, a LIBOR

Rate Loan is paid prior to the last Business Day of any Interest Period or if a

LIBOR Rate Loan does not occur on a date specified by Borrower in its request

(other than as a result of a default by Lender), Borrower agrees to indemnify

Lender against any loss (including any loss on redeployment of the deposits or

other funds acquired by Lender to fund or maintain such LIBOR Rate Loan) cost or

expense incurred by Lender as a result of such prepayment.

 

(v)           If any Regulatory Change (whether or

not having the force of law) shall (A) impose, modify or deem applicable any

assessment, reserve, special deposit or similar requirement against assets held

by, or deposits in or for the account of or loans by, or any other acquisition

of funds or disbursements by, Lender; (B) subject Lender or the LIBOR Rate

Loans to any Tax or change the basis of taxation of payments to Lender of

principal or interest due from Borrower to Lender hereunder (other than a

change in the taxation of the overall net income of Lender); or (C) impose on

Lender any other condition regarding the LIBOR Rate Loans or Lender’s funding

thereof, and Lender shall determine (which determination shall be conclusive,

absent any manifest error) that the result of the foregoing is to increase the

cost to Lender of making or maintaining the LIBOR Rate Loans or to reduce the

amount of principal or interest received by Lender hereunder, then Borrower

shall pay to Lender, on demand, such additional amounts as Lender shall, from

time to time, determine are sufficient to compensate and indemnify Lender from

such increased cost or reduced amount.

 

(vi)          Lender shall receive payments of

amounts of principal of and interest with respect to the LIBOR Rate Loans free

and clear of, and without deduction for, any Taxes.  If (A) Lender shall

be subject to any Tax in respect of any LIBOR Rate Loans or any part thereof

or, (B) Borrower shall be required to withhold or deduct any Tax from any such

amount, the LIBOR Rate applicable to such LIBOR Rate Loans shall be adjusted by

Lender to reflect all additional costs incurred by Lender in connection with

the payment by Lender or the withholding by Borrower of such Tax and Borrower

shall provide Lender with a statement detailing the amount of any such Tax

actually paid by Borrower. Determination by Lender of the amount of such costs

shall be conclusive, absent manifest error.  If after any such adjustment

any part of any Tax paid by Lender is subsequently recovered by Lender, Lender

shall reimburse Borrower to the extent of the amount so recovered.  A

certificate of

 

13

 

an officer of Lender setting

forth the amount of such recovery and the basis therefor shall be conclusive,

absent manifest error.

 

(vii)         Each request for LIBOR Rate Loans shall

be in an amount not less than One Million and No/100 Dollars ($1,000,000.00),

and in integral multiples of One Hundred Thousand and No/100 Dollars

($100,000.00).

 

(viii)        Unless

otherwise specified by Borrower, all Loans shall be Prime Rate Loans.

 

(ix)           No more than four (4) Interest

Periods may be in effect with respect to outstanding LIBOR Rate Loans at any

one time.

 

(c) 

Fees And Charges.

 

(i)            Closing

Fee:  Borrower shall pay to Lender a closing fee of one-fourth of one

percent (1/4th of 1%) of the Maximum Loan Limit, which fee shall be

fully earned and payable on the date of disbursement of the initial Loans

hereunder.

 

(ii)           Unused Line Fee: 

Borrower shall pay to Lender an unused line fee of one-fourth of one percent

(1/4th of 1%) of the difference between the Maximum Revolving Loan

Limit and the average daily balance of the Revolving Loans plus the Letter of

Credit Obligations for each month, which fee shall be fully earned by Lender

and payable monthly in arrears on the last Business Day of each month. 

Said fee shall be calculated on the basis of a 360 day year.

 

(iii)          Costs and Expenses: Borrower

shall reimburse Lender for all costs and expenses, including, without

limitation, legal expenses and reasonable attorneys’ fees, incurred by Lender

in connection with the (i) documentation and consummation of this

transaction and any other transactions between Borrower and Lender, including,

without limitation, Uniform Commercial Code and other public record searches

and filings, overnight courier or other express or messenger delivery,

appraisal costs, surveys, title insurance and environmental audit or review

costs; (ii) collection, protection or enforcement of any rights in or to

the Collateral; (iii) collection of any Liabilities; and

(iv) administration and enforcement of any of Lender’s rights under this

Agreement or any Other Agreement.  Borrower shall also pay all normal

service charges with respect to all deposit accounts maintained by Borrower

with Lender and LaSalle Bank and any additional services requested by Borrower

from Lender and LaSalle Bank.  All such costs, expenses and charges shall,

if owed to LaSalle Bank, be reimbursed by Lender and in such event or in the

event such costs and expenses are owed to Lender, shall constitute Liabilities

hereunder, shall be payable by Borrower to Lender on demand, and, until paid,

shall bear interest at the highest rate then applicable to Loans hereunder.

 

(iv)          Capital Adequacy Charge.  If Lender shall have determined that

the adoption of any law, rule or regulation regarding capital adequacy, or any

change therein or in the interpretation or application thereof, or compliance

by Lender with any request or directive regarding capital adequacy (whether or

not having the force of law) from any central bank or governmental authority

enacted after the date hereof, does or shall have the

 

14

 

effect of reducing the rate of

return on such party’s capital as a consequence of its obligations hereunder to

a level below that which Lender could have achieved but for such adoption,

change or compliance (taking into consideration Lender’s policies with respect

to capital adequacy) by a material amount, then from time to time, after

submission by Lender to Borrower of a written demand therefor (“Capital Adequacy Demand”) together with the

certificate described below, Borrower shall pay to Lender such additional

amount or amounts (“Capital Adequacy Charge”)

as will compensate Lender for such reduction, such Capital Adequacy Demand to

be made with reasonable promptness following such determination.  A

certificate of Lender claiming entitlement to payment as set forth above shall

be conclusive in the absence of manifest error.  Such certificate shall

set forth the nature of the occurrence giving rise to such reduction, the

amount of the Capital Adequacy Charge to be paid to Lender, and the method by

which such amount was determined.  In determining such amount, Lender may

use any reasonable averaging and attribution method, applied on a

non-discriminatory basis.

 

(d) 

Maximum Interest.

 

It is the intent of the parties that the rate of interest and other

charges to Borrower under this Agreement and the Other Agreements shall be

lawful; therefore, if for any reason the interest or other charges payable

under this Agreement are found by a court of competent jurisdiction, in a final

determination, to exceed the limit which Lender may lawfully charge Borrower,

then the obligation to pay interest and other charges shall automatically be

reduced to such limit and, if any amount in excess of such limit shall have

been paid, then such amount shall be refunded to Borrower.

 

5.     

COLLATERAL.

 

(a)   Grant of

Security Interest to Lender.

 

As security

for the payment of all Loans now or in the future made by Lender to Borrower

hereunder and for the payment or other satisfaction of all other Liabilities,

Borrower hereby assigns to Lender and grants to Lender a continuing security

interest in the following property of Borrower, whether now or hereafter owned,

existing, acquired or arising and wherever now or hereafter located: 

(a) all Accounts (whether or not Eligible Accounts) and all Inventory

whose sale, lease or other disposition by Borrower has given rise to Accounts

and have been returned to, or repossessed or stopped in transit by, Borrower;

(b) all Chattel Paper, Instruments, Documents and General Intangibles (including,

without limitation, all patents, patent applications, trademarks, trademark

applications, trade names, trade secrets, goodwill, copyrights, copyright

applications, registrations, licenses, software, franchises, customer lists,

tax refund claims, claims against carriers and shippers, guarantee claims,

contract rights, payment intangibles, security interests, security deposits and

rights to indemnification); (c)  all Investment Property;

(d) all Deposit Accounts, bank accounts, deposits and cash; (e)  all

Letter-of-Credit Rights; (f)  Commercial Tort Claims listed on Exhibit

C hereto; (g) any other property of Borrower (other than Equipment,

Inventory that has not been returned to, or repossessed or stopped in transit

by, Borrower, Fixtures and real property)now or hereafter in the possession,

custody or control of Lender or any agent or any parent, affiliate or

subsidiary of Lender or any participant with Lender in the Loans, for 

 

15

 

any purpose (whether for safekeeping,

deposit, collection, custody, pledge, transmission or otherwise) and

(h) all Proceeds of the foregoing property, including, without limitation,

proceeds of all insurance policies insuring the foregoing property, and all of

Borrower’s books and records relating to any of the foregoing and to Borrower’s

business.

 

(b) Other Security.

 

Lender, in its

Permitted Discretion, without waiving or releasing any obligation, liability or

duty of Borrower under this Agreement or the Other Agreements or any Event of

Default, may at any time or times hereafter, but shall not be obligated to,

pay, acquire or accept an assignment of any security interest, lien,

encumbrance or claim asserted by any Person in, upon or against the Collateral,

provided, that Lender may take such actions with respect to Permitted Liens

only after the occurrence and during the continuance of an Event of

Default.  All sums paid by Lender in respect thereof and all costs, fees

and expenses including, without limitation, reasonable attorney fees, all court

costs and all other charges relating thereto incurred by Lender shall

constitute Liabilities, payable by Borrower to Lender on demand and, until

paid, shall bear interest at the highest rate then applicable to Loans

hereunder.

 

(c) Possessory Collateral.

 

Immediately

upon Borrower’s receipt of any portion of the Collateral evidenced by an

agreement, Instrument or Document, including, without limitation, any Tangible

Chattel Paper and any Investment Property consisting of certificated securities,

Borrower shall deliver the original thereof to Lender together with an

appropriate endorsement or other specific evidence of assignment thereof to

Lender (in form and substance acceptable to Lender). If an endorsement or

assignment of any such items shall not be made for any reason, Lender is hereby

irrevocably authorized, as Borrower’s attorney and agent-in-fact, to endorse or

assign the same on Borrower’s behalf.

 

(d) Electronic Chattel Paper.

 

To the extent

that Borrower obtains or maintains any Electronic Chattel Paper, Borrower shall

create, store and assign the record or records comprising the Electronic

Chattel Paper in such a manner that (i) a single authoritative copy of the

record or records exists which is unique, identifiable and except as otherwise

provided in clauses (iv), (v) and (vi) below, unalterable, (ii) the

authoritative copy identifies Lender as the assignee of the record or records,

(iii) the authoritative copy is communicated to and maintained by the Lender or

its designated custodian, (iv) copies or revisions that add or change an

identified assignee of the authoritative copy can only be made with the

participation of Lender, (v) each copy of the authoritative copy and any copy

of a copy is readily identifiable as a copy that is not the authoritative copy

and (vi) any revision of the authoritative copy is readily identifiable as an

authorized or unauthorized revision.

 

16

 

6.  

PRESERVATION OF COLLATERAL AND PERFECTION OF SECURITY INTERESTS

THEREIN.

 

Borrower

shall, at Lender’s request, at any time and from time to time, authorize,

authenticate, execute and deliver to Lender such financing statements,

documents and other agreements and instruments (and pay the cost of filing or

recording the same in all public offices deemed necessary or desirable by

Lender) and do such other acts and things or cause third parties to do such

other acts and things as Lender may deem necessary or desirable in its

Permitted Discretion in order to establish and maintain a valid, attached and

perfected security interest in the Collateral in favor of Lender (free and

clear of all other liens, claims, encumbrances and rights of third parties

whatsoever, whether voluntarily or involuntarily created, except Permitted

Liens) to secure payment of the Liabilities, and in order to facilitate the

collection of the Collateral. Borrower irrevocably hereby makes, constitutes

and appoints Lender (and all Persons designated by Lender for that purpose) as

Borrower’s true and lawful attorney and agent-in-fact to execute and file such

financing statements, documents and other agreements and instruments and do

such other acts and things as may be necessary to preserve and perfect Lender’s

security interest in the Collateral, provided, however, Lender shall not

exercise its rights under this Section 6 unless Borrower fails to execute such

financing statements, documents, instruments and other agreements in a timely

manner following Lender’s request. Borrower further agrees that a carbon,

photographic, photostatic or other reproduction of this Agreement or of a

financing statement shall be sufficient as a financing statement. 

Borrower further ratifies and confirms the prior filing by Lender of any and

all financing statements which identify the Borrower as debtor, Lender as

secured party and any or all Collateral as collateral.

 

7.  

INTENTIONALLY

OMITTED.

 

8.  

COLLECTIONS.

 

(a) Borrower

shall direct all of its Account Debtors to make all payments on the Accounts

directly to a post office box (the “Lock Box”)

designated by, and under the exclusive control of, Lender, at a financial

institution acceptable to Lender.  Borrower shall establish an account

(the “Lock Box Account”) in

Lender’s name with a financial institution acceptable to Lender, into which all

payments received in the Lock Box shall be deposited, and into which Borrower

will immediately deposit all payments received by Borrower on Accounts in the

identical form in which such payments were received, whether by cash or

check.  If Borrower, any Affiliate or Subsidiary, any shareholder,

officer, director, employee or agent of Borrower or any Affiliate or

Subsidiary, or any other Person acting for or in concert with Borrower shall

receive any monies, checks, notes, drafts or other payments relating to or as

Proceeds of Accounts or other Collateral, Borrower and each such Person shall

receive all such items in trust for, and as the sole and exclusive property of,

Lender and, immediately upon receipt thereof, shall remit the same (or cause

the same to be remitted) in kind to the Lock Box Account.  The financial

institution with which the Lock Box Account is established shall acknowledge

and agree, in a manner satisfactory to Lender, that the amounts on deposit in such

Lock Box and Lock Box Account are the sole and exclusive property of Lender,

that such financial institution will follow the instructions of Lender with

respect to disposition of funds in the Lock Box and Lock Box Account without

further

 

17

 

 

consent from Borrower, that

such financial institution has no right to setoff against the Lock Box or Lock

Box Account or against any other account maintained by such financial

institution into which the contents of the Lock Box or Lock Box Account are

transferred, and that such financial institution shall wire, or otherwise

transfer in immediately available funds to Lender in a manner satisfactory to

Lender, funds deposited in the Lock Box Account on a daily basis as such funds

are collected.  Borrower agrees that all payments made to such Lock Box

Account or otherwise received by Lender, whether in respect of the Accounts or

as Proceeds of other Collateral or otherwise (except for proceeds of Collateral

which are required to be delivered to the holder of a Permitted Lien which is

prior in right of payment), will be applied on account of the Liabilities in

accordance with the terms of this Agreement; provided, that so long as no Event

of Default has occurred and is continuing, payments received by Lender shall

not be applied to the unmatured portion of the LIBOR Rate Loans, but shall be

held in a cash collateral account maintained by Lender, until the earlier of

(i) the last Business Day of the Interest Period applicable to such LIBOR Rate

Loan and (ii) the occurrence of an Event of Default; provided further, that so

long as no Event of Default has occurred, the immediately available funds in

such cash collateral account may be disbursed, at Borrower’s discretion, to

Borrower so long as after giving effect to such disbursement, Borrower’s

availability under subsection 2(a) hereof at such time, equals or

exceeds the outstanding Revolving Loans at such time.  Borrower agrees to

pay all customary fees, costs and expenses in connection with opening and

maintaining the Lock Box and Lock Box Account.  All of such fees, costs

and expenses if not paid by Borrower, may be paid by Lender and in such event

all amounts paid by Lender shall constitute Liabilities hereunder, shall be payable

to Lender by Borrower upon demand, and, until paid, shall bear interest at the

highest rate then applicable to Loans hereunder.  All checks, drafts,

instruments and other items of payment or Proceeds of Collateral shall be

endorsed by Borrower to Lender, and, if that endorsement of any such item shall

not be made for any reason, Lender is hereby irrevocably authorized to endorse

the same on Borrower’s behalf.  For the purpose of this section, Borrower

irrevocably hereby makes, constitutes and appoints Lender (and all Persons

designated by Lender for that purpose) as Borrower’s true and lawful attorney

and agent-in-fact (i) to endorse Borrower’s name upon said items of

payment and/or Proceeds of Collateral and upon any Chattel Paper, Document,

Instrument, invoice or similar document or agreement relating to any Account of

Borrower or Goods pertaining thereto; (ii) to take control in any manner

of any item of payment or Proceeds thereof and (iii) to have access to any

lock box or, upon the occurrence and during the continuance of an Event of

Default, any postal box into which any of Borrower’s mail is deposited, and

open and process all mail addressed to Borrower and deposited therein.

 

(b) Lender

may, at any time and from time to time after the occurrence and during the

continuance of an Event of Default, whether before or after notification to any

Account Debtor and whether before or after the maturity of any of the

Liabilities, (i) enforce collection of any of Borrower’s Accounts or other

amounts owed to Borrower by suit or otherwise; (ii) exercise all of

Borrower’s rights and remedies with respect to proceedings brought to collect

any Accounts or other amounts owed to Borrower; (iii) surrender, release

or exchange all or any part of any Accounts or other amounts owed to Borrower,

or compromise or extend or renew for any period (whether or not longer than the

original period) any indebtedness thereunder; (iv) sell or assign any

Account of Borrower or other amount owed to Borrower upon such terms, for such

amount and at such time or times as

 

18

 

 

Lender deems advisable; (v)

prepare, file and sign Borrower’s name on any proof of claim in bankruptcy or

other similar document against any Account Debtor or other Person obligated to

Borrower; and (vi) do all other acts and things which are necessary, in

Lender’s Permitted Discretion, to fulfill Borrower’s obligations under this

Agreement and the Other Agreements and to allow Lender to collect the Accounts

or other amounts owed to Borrower.  In addition to any other provision

hereof, Lender may at any time, after the occurrence and during the continuance

of an Event of Default, at Borrower’s expense, notify any parties obligated on

any of the Accounts to make payment directly to Lender of any amounts due or to

become due thereunder.

 

(c) For

purposes of calculating interest and fees, Lender shall, within one (1)

Business Day after receipt by Lender at its office in Chicago, Illinois of

(i) checks and (ii) cash or other immediately available funds from

collections of items of payment and Proceeds of any Collateral, apply the whole

or any part of such collections or Proceeds against the Liabilities as

follows:  (i) first to all costs and expenses reimburseable under this

Agreement and the Other Agreements, (ii) then to accrued fees and interest due

and payable hereunder and under the Other Agreements and (iii) then to

principal.  For purposes of determining the amount of Loans available for

borrowing purposes, checks and cash or other immediately available funds from

collections of items of payment and Proceeds of any Collateral shall be applied

in whole or in part against the Liabilities, as follows: (i) first to all costs

and expenses reimburseable under this Agreement and the Other Agreements, (ii)

then to accrued fees and interest due and payable hereunder and under the Other

Agreements and (iii) then to principal, on the day of receipt, subject to

actual collection.

 

(d) On a

monthly basis, Lender shall deliver to Borrower an account statement showing

all Loans, charges and payments, which shall be deemed final, binding and

conclusive upon Borrower unless Borrower notifies Lender in writing, specifying

any error therein, within thirty (30) days of the date such account statement

is sent to Borrower and any such notice shall only constitute an objection to

the items specifically identified.

 

9.  

COLLATERAL,

AVAILABILITY AND

FINANCIAL REPORTS AND SCHEDULES.

 

(a) Monthly Reports.

 

(i) Borrower

shall deliver to Lender, in addition to any other reports, as soon as

practicable and in any event: within ten (10) days after the end of each month,

(A) a detailed trial balance of Borrower’s Accounts aged per invoice date, in

form and substance reasonably satisfactory to Lender including, without

limitation, the names and upon the occurrence and during the continuance of an

Event of Default, addresses of all Account Debtors of Borrower, and (B)

notwithstanding the foregoing, and only upon the request of Lender, a summary

and detail of accounts payable (such Accounts and accounts payable divided into

such time intervals as Lender may require in its Permitted Discretion),

including a listing of any held checks; and (ii) Borrower shall deliver to

Lender an executed loan report and certificate in Lender’s then current form on

or prior to the tenth (10th ) Business Day of each month, which

shall be accompanied by copies (but only if specifically requested by Lender)

of Borrower’s sales journal, cash receipts journal and credit memo journal for

the

 

19

 

 

relevant period. Such report

shall reflect the activity of Borrower with respect to Accounts for the

immediately preceding month, and shall be in a form and with such specificity

as is satisfactory to Lender and shall contain such additional information

concerning Accounts as may be requested by Lender including, without

limitation, but only if specifically requested by Lender, copies of all

invoices prepared in connection with such Accounts.

 

(b) Financial

Statements.

 

Borrower shall

deliver to Lender the following financial information, all of which shall be

prepared in accordance with generally accepted accounting principles

consistently applied, and shall be accompanied by a compliance certificate in

the form of Exhibit B hereto, which compliance certificate shall include

a calculation of all financial covenants contained in this Agreement:  (i)

no later than thirty (30) days after each calendar month, copies of internally

prepared financial statements, including, without limitation, balance sheets

and statements of income, retained earnings and cash flow of Borrower,

certified by the Chief Financial Officer of Borrower; (ii) no later than

forty-five (45) days after the end of each of the first three quarters of

Borrower’s Fiscal Year, copies of internally prepared financial statements

including, without limitation, balance sheets, statements of income, retained

earnings, cash flows and reconciliation of surplus, certified by the Chief

Financial Officer of Borrower and (iii) no later than ninety (90) days after

the end of each of Borrower’s Fiscal Years, audited annual financial statements

with an unqualified opinion by independent certified public accountants

selected by Borrower and reasonably satisfactory to Lender, which financial

statements shall be accompanied by (A) a letter from such accountants

acknowledging that they are aware that a primary intent of Borrower in

obtaining such financial statements is to influence Lender and that Lender is relying

upon such financial statements in connection with the exercise of its rights

hereunder, provided, that Borrower shall only be required to use its reasonable

efforts exercised in good faith to obtain such letter; and (B) copies of any

management letters sent to the Borrower by such accountants.

 

(c) Annual Projections.

 

As soon as

practicable and in any event prior to the beginning of each Fiscal Year,

Borrower shall deliver to Lender projected balance sheets, statements of income

and cash flow for Borrower, for such Fiscal Year, which shall include the

assumptions used therein, together with appropriate supporting details as

reasonably requested by Lender.

 

(d) Public Reporting.

 

Promptly upon

the filing thereof, Borrower shall deliver to Lender copies of all registration

statements and annual, quarterly, monthly or other regular reports which

Borrower or any of its Subsidiaries files with the Securities and Exchange

Commission, as well as promptly providing to Lender copies of any reports and

proxy statements delivered to Borrower or Holdings’ note holders.

 

20

 

(e) Other Information.

 

Promptly

following request therefor by Lender, such other business or financial data,

reports, appraisals and projections as Lender may reasonably request.

 

10.  TERMINATION; AUTOMATIC RENEWAL.

 

THIS AGREEMENT SHALL BE IN EFFECT FROM THE

DATE HEREOF UNTIL

                    ,

2005 (THE “ORIGINAL TERM”) AND SHALL AUTOMATICALLY RENEW ITSELF FROM YEAR TO

YEAR THEREAFTER (EACH SUCH ONE-YEAR RENEWAL BEING REFERRED TO HEREIN AS A

“RENEWAL TERM”) UNLESS (A)  THE DUE DATE OF THE LIABILITIES IS ACCELERATED

PURSUANT TO SECTION 16 HEREOF; OR (B) BORROWER OR LENDER ELECTS TO

TERMINATE THIS AGREEMENT AT THE END OF THE ORIGINAL TERM OR AT THE END OF ANY

RENEWAL TERM BY GIVING THE OTHER PARTY WRITTEN NOTICE OF SUCH ELECTION AT LEAST

NINETY (90) DAYS PRIOR TO THE END OF THE ORIGINAL TERM OR THE THEN CURRENT

RENEWAL TERM IN WHICH CASE BORROWER SHALL PAY ALL OF THE LIABILITIES IN FULL ON

THE LAST DAY OF SUCH TERM.  If the term of this

Agreement expires or one or more of the events specified in clauses (A) and (B)

occurs, then (i) Lender shall not make any additional Loans on or after the

date identified as the date on which the Liabilities are to be repaid; and

(ii) this Agreement shall terminate on the date thereafter that the

Liabilities are paid in full.  At such time as Borrower has repaid all of

the Liabilities and this Agreement has terminated, if Borrower is obtaining new

financing from another lender, Borrower shall deliver such lender’s

indemnification of Lender, in form and substance satisfactory to Lender, for

checks which Lender has credited to Borrower’s account, but which subsequently

are dishonored for any reason or for automatic clearinghouse or wire transfers

not yet posted to Borrower’s account.

 

11. REPRESENTATIONS AND WARRANTIES.

 

Borrower

hereby represents and warrants to Lender, which representations and warranties

(whether appearing in this Section 11 or elsewhere) shall be true in all

material respects at the time of Borrower’s execution hereof and the closing of

the transactions described herein or related hereto and shall be remade by

Borrower at the time each Loan is made pursuant to this Agreement, provided,

that representations and warranties made as of a particular date shall be true

and correct in all material respects only as of such date.

 

(a)  Financial Statements

and Other Information.

 

The financial

statements and other information delivered or to be delivered by Borrower to

Lender at or prior to the date of this Agreement fairly present in all material

respects the financial condition of Borrower, and there has been no material

adverse change in the financial condition, the operations or any other status

of Borrower since the date of the financial statements delivered to Lender most

recently prior to the date of this Agreement.  All written information now

or heretofore furnished by Borrower to Lender is true and correct as of the

date with respect to which such information was furnished.

 

21

 

(b) Locations.

 

The office

where Borrower keeps its books, records and accounts (or copies thereof)

concerning the Collateral, Borrower’s principal place of business and all of Borrower’s

other places of business, locations of Collateral and post office boxes and

locations of bank accounts are as set forth in Exhibit A and at other

locations within the continental United States of which Lender has been advised

by Borrower in accordance with subsection 12(b)(i).  The Collateral

is kept only at the addresses set forth on Exhibit A, and at other

locations within the continental United States of which Lender has been advised

by Borrower in writing in accordance with subsection 12(b)(i) hereof.

 

(c) Loans by Borrower.

 

Borrower has

not made any loans or advances to any Affiliate or other Person except for

advances authorized hereunder to employees, officers and directors of Borrower

for travel and other expenses arising in the ordinary course of Borrower’s

business and loans permitted pursuant to subsection 13(f) hereof.

 

(d) Accounts.

 

Each Account

which Borrower shall, expressly or by implication, request Lender to classify

as an Eligible Account shall, as of the time when such request is made, conform

in all respects to the requirements of such classification as set forth in the

respective definitions of “Eligible Account”  as set forth herein and as

otherwise established by Lender from time to time.

 

(e) Liens.

 

Borrower is

the lawful owner of all Collateral now purportedly owned or hereafter

purportedly acquired by Borrower, free from all liens, claims, security

interests and encumbrances whatsoever, whether voluntarily or involuntarily

created and whether or not perfected, other than the Permitted Liens.

 

(f) Organization, Authority and No Conflict.

 

Borrower is a

corporation, duly organized, validly existing and in good standing in the State

of Delaware, its state organizational identification number is P030973 and

Borrower is duly qualified and in good standing in all states where the nature

and extent of the business transacted by it or the ownership of its assets

makes such qualification necessary or, if Borrower is not so qualified,

Borrower may cure any such failure without losing any of its rights, incurring

any liens or material penalties, or otherwise affecting Lender’s rights. 

Borrower has the right and power and is duly authorized and empowered to enter

into, execute and deliver this Agreement and the Other Agreements and perform

its obligations hereunder and thereunder. Borrower’s execution, delivery and

performance of this Agreement and the Other Agreements does not conflict with

the provisions of the organizational documents of Borrower, any statute,

regulation, ordinance or rule of law, or any agreement, contract or other

document which may now or hereafter be binding on Borrower, including, without

limitation, the Indenture, except for conflicts with agreements,

 

22

 

contracts or other documents

which would not have a Material Adverse Effect on Borrower, and Borrower’s

execution, delivery and performance of this Agreement and the Other Agreements

shall not result in the imposition of any lien or other encumbrance upon any of

Borrower’s property (other than Permitted Liens) under any existing indenture,

mortgage, deed of trust, loan or credit agreement or other agreement or

instrument by which Borrower or any of its property may be bound or affected.

Holdings’ execution, delivery and performance of the Continuing Unconditional

Guaranty does not conflict with the Indenture nor will it cause a Default

thereunder.

 

(g) Litigation.

 

Except as

disclosed to Lender on Schedule 11(g) hereto, there are no actions or

proceedings which are pending or, to the best of Borrower’s knowledge,

threatened against Borrower which is, in the determination of Lender,

reasonably likely to have a Material Adverse Effect on Borrower, and Borrower

shall, promptly upon becoming aware of any such pending or threatened action or

proceeding, give written notice thereof to Lender.  Borrower has no

Commercial Tort Claims pending other than those set forth on Exhibit C

hereto as Exhibit C may be amended from time to time.

 

(h) Compliance with Laws and Maintenance of Permits.

 

Borrower has

obtained all governmental consents, franchises, certificates, licenses,

authorizations, approvals and permits, the lack of which would have a Material

Adverse Effect on Borrower.  Borrower is in compliance in all material

respects with all applicable federal, state, local and foreign statutes,

orders, regulations, rules and ordinances (including, without limitation,

Environmental Laws and statutes, orders, regulations, rules and ordinances

relating to taxes, employer and employee contributions and similar items,

securities, ERISA or employee health and safety) the failure to comply with

which would have a Material Adverse Effect on Borrower.

 

(i) Affiliate Transactions.

 

Except as set

forth on Schedule 11(i) hereto or as permitted pursuant to subsection

11(c) hereof, Borrower is not conducting, permitting or suffering to be

conducted, transactions with any Affiliate other than transactions with

Affiliates the terms of which are no less favorable to Borrower than the terms

upon which such transactions would have been made had they been made to or with

a Person that is not an Affiliate.

 

(j) Names and Trade Names.

 

Borrower’s

name has always been as set forth on the first page of this Agreement and

Borrower uses no trade names, assumed names, fictitious names or division names

in the operation of its business, except as set forth on Schedule 11(j)

hereto.

 

(k) Equipment.

 

Except for

Permitted Liens, Borrower has good and indefeasible and merchantable title to

and ownership of all Equipment.

 

23

 

(l) Enforceability.

 

This Agreement

and the Other Agreements to which Borrower is a party are the legal, valid and

binding obligations of Borrower and are enforceable against Borrower in

accordance with their respective terms, except as enforcement may be limited by

equitable principles or by bankruptcy, insolvency, reorganization, moratorium

or similar laws relating to or limiting creditors’ rights generally.

 

(m) Solvency.

 

Borrower is,

after giving effect to the transactions contemplated hereby, solvent, able to

pay its debts as they become due, has capital sufficient to carry on its

business, now owns property having a value both at fair valuation and at

present fair saleable value greater than the amount required to pay its debts,

and will not be rendered insolvent by the execution and delivery of this

Agreement or any of the Other Agreements or by completion of the transactions

contemplated hereunder or thereunder.

 

(n) Indebtedness.

 

Except as set

forth on Schedule 11(n) hereto and as permitted under subsection 13(b)

hereof, Borrower is not obligated (directly or indirectly), for any loans or

other indebtedness for borrowed money other than the Loans.

 

(o) Margin Security and Use of Proceeds.

 

Borrower does

not own any margin securities, and none of the proceeds of the Loans hereunder

shall be used for the purpose of purchasing or carrying any margin securities

or for the purpose of reducing or retiring any indebtedness which was

originally incurred to purchase any margin securities or for any other purpose

not permitted by Regulation U of the Board of Governors of the Federal Reserve

System as in effect from time to time.

 

(p) Parent, Subsidiaries and Affiliates.

 

Except as set

forth on Schedule 11(p) hereto, Borrower has no Parents, Subsidiaries or

other Affiliates or divisions, nor is Borrower engaged in any joint venture or

partnership with any other Person.

 

(q) No Defaults.

 

Borrower is

not in default under any material contract, lease or commitment to which it is

a party or by which it is bound, nor does Borrower know of any dispute

regarding any contract, lease or commitment which would have a Material Adverse

Effect on Borrower.

 

(r) Employee Matters.

 

There are no

controversies pending or threatened between Borrower and any of its employees,

agents or independent contractors other than employee grievances arising

 

24

 

in the ordinary course of

business which would not, in the aggregate, have a Material Adverse Effect on

Borrower, and Borrower is in compliance with all federal and state laws

respecting employment and employment terms, conditions and practices except for

such non-compliance which would not have a Material Adverse Effect on Borrower.

 

(s) Intellectual Property.

 

Borrower

possesses adequate licenses, patents, patent applications, copyrights, service

marks, trademarks, trademark applications, tradestyles and trade names to

continue to conduct its business as heretofore conducted by it except to the

extent that the failure to possess such items would not have a Material Adverse

Effect on Borrower.

 

(t) Environmental Matters.

 

Borrower has

not generated, used, stored, treated, transported, manufactured, handled,

produced or disposed of any Hazardous Materials, on or off its premises

(whether or not owned by it) in any manner which at any time violates in any

material respect any Environmental Law or any license, permit, certificate,

approval or similar authorization thereunder and the operations of the Borrower

comply in all material respects with all Environmental Laws and all licenses,

permits, certificates, approvals and similar authorizations thereunder. 

There has been no investigation, proceeding, complaint, order, directive, claim,

citation or notice by any governmental authority or any other Person, nor is

any pending or to the best of the Borrower’s knowledge threatened with respect

to any non-compliance with or violation of the requirements of any

Environmental Law by the Borrower or the release, spill or discharge,

threatened or actual, of any Hazardous Materials or the generation, use,

storage, treatment, transportation, manufacture, handling, production or

disposal of any Hazardous Materials or any other environmental, health or

safety matter, which affects the Borrower or its business, operations or assets

or any properties at which the Borrower has transported, stored or disposed of

any Hazardous Materials.  Borrower has no material liability (contingent

or otherwise) in connection with a release, spill or discharge, threatened or

actual, of any Hazardous Materials or the generation, use, storage, treatment,

transportation, manufacture, handling, production or disposal of any Hazardous

Materials.

 

(u) ERISA Matters.

 

Borrower has

paid and discharged all obligations and liabilities arising under ERISA of a

character which, if unpaid or unperformed, might result in the imposition of a

lien against any of its properties or assets.

 

(v) Indenture.

 

(i) The

Liabilities of Borrower to Lender, including, without limitation, the Loans,

constitutes “Permitted Indebtedness” and “Guarantor Senior Indebtedness”, each

under and as defined in the Indenture; (ii) Borrower is a Subsidiary Guarantor

under and as defined in the Indenture; and (iii) the Notes under the Indenture

are junior and subordinate in right of payment to the prior payment in full in

immediately available funds of the Liabilities, including the Loans; (iv) there

is no “Designated Senior Indebtedness” under and as defined in the Indenture

other than the Liabilities  to Lender; (v) this Agreement constitutes the

 

25

 

“Credit Agreement” under and as

defined in the Indenture; (vi) there is no “Senior Indebtedness” under and as

defined in the Indenture other than the indebtedness of Holdings under the

Continuing Unconditional Guaranty executed in favor of Lender by Holdings and

dated of even date herewith (the “Holdings Guaranty”); and (vii) the

indebtedness of Holdings to Lender under the Holdings Guaranty constitutes

“Senior Indebtedness” under the Indenture.

 

12. AFFIRMATIVE COVENANTS.

 

Until payment

and satisfaction in full of all Liabilities and termination of this Agreement,

unless Borrower obtains Lender’s prior written consent waiving or modifying any

of Borrower’s covenants hereunder in any specific instance, Borrower covenants

and agrees as follows:

 

(a) Maintenance of Records.

 

Borrower shall

at all times keep accurate and complete books, records and accounts with

respect to all of Borrower’s business activities, in accordance with sound

accounting practices and generally accepted accounting principles consistently

applied, and shall keep such books, records and accounts, and any copies

thereof, only at the addresses indicated for such purpose on Exhibit A.

If any such real property is leased, it shall be subject to a landlord’s

agreement in favor of Lender on terms acceptable to Lender.

 

(b) Notices.

 

Borrower

shall:

 

(i)            Locations.  Promptly (but

in no event more than ten (10) days after the occurrence thereof) notify Lender

of the opening of any new business location that is material to Borrower’s

business, the closing of any existing business location that is material to

Borrower’s business or any change in the location of Borrower’s books, records

and accounts (or copies thereof), and the opening or closing of any bank

account.

 

(ii)           Eligible Accounts. 

Promptly upon becoming aware thereof, notify Lender if any Account identified

by Borrower to Lender as an Eligible Account becomes ineligible for any reason,

provided that, unless an Event of Default has occurred and is continuing,

Borrower may notify Lender of such event with respect to Eligible Accounts with

a face amount of less than $500,000.00 in the aggregate in its ordinary monthly

reporting pursuant to subsection 9(a) of this Agreement.

 

(iii)          Litigation

and Proceedings.  Promptly upon becoming aware thereof, notify Lender

of any actions or proceedings which are pending or threatened against Borrower

which might have a Material Adverse Effect on Borrower and of any Commercial

Tort Claims of Borrower which may arise, which notice shall constitute

Borrower’s authorization to amend Exhibit C to add such Commercial Tort

Claim.

 

(iv)          Names. 

Notify Lender within ten (10) days of the change of its name.

 

26

 

(v)           ERISA

Matters.  Promptly notify Lender of (x) the occurrence of any

“reportable event” (as defined in ERISA) which might result in the termination

by the Pension Benefit Guaranty Corporation (the “PBGC”) of any employee

benefit plan (“Plan”) covering any officers or employees of the Borrower, any

benefits of which are, or are required to be, guaranteed by the PBGC, (y)

receipt of any notice from the PBGC of its intention to seek termination of any

Plan or appointment of a trustee therefor or (z) its intention to terminate or

withdraw from any Plan.

 

(vi)          Environmental

Matters.  Immediately notify Lender upon becoming aware of any

investigation, proceeding, complaint, order, directive, claim, citation or

notice with respect to any non-compliance with or violation of the requirements

of any Environmental Law by Borrower or the generation, use, storage,

treatment, transportation, manufacture handling, production or disposal of any

Hazardous Materials or any other environmental, health or safety matter which

affects Borrower or its business operations or assets or any properties at

which Borrower has transported, stored or disposed of any Hazardous Materials

unless, the foregoing could not reasonably be expected to have a Material

Adverse Effect on Borrower.

 

(vii)         Default;

Material Adverse Change.  Promptly advise Lender of any material

adverse change in the business, assets, liabilities,  operations or

condition, financial or otherwise, of Borrower, the occurrence of any Event of

Default hereunder or the occurrence of any event which, if uncured, will become

an Event of Default after notice or lapse of time (or both).

 

All of the foregoing notices

shall be provided by Borrower to Lender in writing.

 

(c) Compliance with Laws and Maintenance of Permits.

 

Borrower shall

maintain all governmental consents, franchises, certificates, licenses,

authorizations, approvals and permits, the lack of which would have a Material

Adverse Effect on Borrower and Borrower shall remain in compliance with all

applicable federal, state, local and foreign statutes, orders, regulations,

rules and ordinances (including, without limitation, Environmental Laws and

statutes, orders, regulations, rules and ordinances relating to taxes, employer

and employee contributions and similar items, securities, ERISA or employee

health and safety) the failure with which to comply would have a Material

Adverse Effect on Borrower.

 

(d) Inspection and Audits.

 

Borrower shall

permit Lender, or any Persons designated by it, to call at Borrower’s places of

business at any reasonable times, and, without hindrance or delay, to inspect

the Collateral and to inspect, audit, check and make extracts from Borrower’s

books, records, journals, orders, receipts and any correspondence and other

data relating to Borrower’s business, the Collateral or any transactions

between the parties hereto, and shall have the right to make such verification

concerning Borrower’s business as Lender may consider reasonable under the

circumstances.  Borrower shall furnish to Lender such information relevant

to Lender’s rights under this Agreement and the Other Agreements as Lender

shall at any time and from time to time reasonably

 

27

 

request. 

Lender, through its officers, employees or agents shall have the right, at any

reasonable time and from time to time, in Lender’s name, to verify the

validity, amount or any other matter relating to any of Borrower’s Accounts, by

mail, telephone, telecopy, electronic mail, or otherwise, provided that prior

to the occurrence of an Event of Default, Lender shall conduct such

verification in Borrower’s name.  Borrower authorizes Lender to discuss

the affairs, finances and business of Borrower with any officers, employees or

directors of Borrower or with its Parent or any Affiliate or the officers,

employees or directors of its Parent or any Affiliate, and to discuss the

financial condition of Borrower with Borrower’s independent public

accountants.  Any such discussions shall be without liability to Lender or

to Borrower’s independent public accountants.  Borrower shall pay to

Lender all customary fees and all costs and out-of-pocket expenses incurred by Lender

in the exercise of its rights under this subsection 12(d), and all of such

fees, costs and expenses shall constitute Liabilities hereunder, shall be

payable on demand and, until paid, shall bear interest at the highest rate then

applicable to Loans hereunder; provided, that, prior to the occurrence and

continuance of an Event of Default, the maximum amount Borrower shall be

required to pay Lender with respect to the foregoing shall be Fifteen Thousand

and No/100 Dollars ($15,000.00) per Fiscal Year of Borrower.

 

(e) Insurance.

 

Borrower

shall:

 

(i)            Keep its tangible assets properly

housed and insured for the full insurable value thereof against loss or damage

by fire, theft, explosion, sprinklers, collision (in the case of motor

vehicles) and such other risks as are customarily insured against by Persons

engaged in businesses similar to that of Borrower, with such companies, in such

amounts, with such deductibles, and under policies in such form, as shall be

satisfactory to Lender.  Original (or certified) copies of such policies

of insurance have been or shall be, within ninety (90) days of the date hereof

or as soon thereafter as such policies are issued by the insurer, delivered to

Lender, together with evidence of payment of all premiums therefor, and shall contain

an endorsement, in form and substance acceptable to Lender, showing loss under

such insurance policies payable to Lender.  Such endorsement, or an

independent instrument furnished to Lender, shall provide that the insurance

company shall give Lender at least thirty (30) days written notice before any

such policy of insurance is altered or canceled and that no act, whether

willful or negligent, or default of Borrower or any other Person shall affect

the right of Lender to recover under such policy of insurance in case of loss

or damage.  In addition, Borrower shall cause to be executed and delivered

to Lender an assignment of proceeds of its business interruption insurance

policies.  Borrower hereby directs all insurers under all policies of insurance

to pay all proceeds payable thereunder directly to Lender as it relates to the

Collateral.  Borrower irrevocably makes, constitutes and appoints Lender

(and all officers, employees or agents designated by Lender) as Borrower’s true

and lawful attorney (and agent-in-fact) for the purpose of making, settling and

adjusting claims under such policies of insurance, as such policies relate to

the Collateral, endorsing the name of Borrower on any check, draft, instrument

or other item of payment for the proceeds of such policies of insurance and

making all determinations and decisions with

 

28

 

respect to such policies of

insurance, provided however, that if no Event of Default shall have occurred

and is continuing, Borrower may make, settle and adjust claims involving less

than $5,000,000.00 in the aggregate without Lender’s consent.

 

(ii)           Maintain, at its expense, such public

liability and third party property damage insurance as is customary for Persons

engaged in businesses similar to that of Borrower with such companies and in

such amounts, with such deductibles and under policies in such form as shall be

reasonably satisfactory to Lender and original (or certified) copies of such

policies have been or shall be, within ninety (90) days after the date hereof

or as soon thereafter as such policies are issued by the insurer, delivered to

Lender, together with evidence of payment of all premiums therefor; each such

policy shall contain an endorsement showing Lender as additional insured

thereunder and providing that the insurance company shall give Lender at least

thirty (30) days written notice before any such policy shall be altered or

canceled.

 

If Borrower at any time or

times hereafter shall fail to obtain or maintain any of the policies of

insurance required above or to pay any premium relating thereto, then Lender,

without waiving or releasing any obligation or default by Borrower hereunder,

may (but shall be under no obligation to) obtain and maintain such policies of

insurance and pay such premiums and take such other actions with respect

thereto as Lender deems advisable upon notice to Borrower.  Such

insurance, if obtained by Lender, may, but need not, protect Borrower’s

interests or pay any claim made by or against Borrower with respect to the

Collateral.  Such insurance may be more expensive than the cost of

insurance Borrower may be able to obtain on its own and may be cancelled only

upon Borrower providing evidence that it has obtained the insurance as required

above.  All sums disbursed by Lender in connection with any such actions,

including, without limitation, court costs, expenses, other charges relating

thereto and reasonable attorneys’ fees, shall constitute Loans hereunder, shall

be payable on demand by Borrower to Lender and, until paid, shall bear interest

at the highest rate then applicable to Loans hereunder.

 

(f) Collateral.

 

Borrower shall

keep its assets in good condition, repair and order and shall make all

necessary repairs to the Equipment and replacements thereof so that the

operating efficiency and the value thereof shall at all times be preserved and

maintained in all material respects.  Borrower shall permit Lender to

examine any of the Collateral at any reasonable times and wherever the Collateral

may be located.  Borrower shall, at the request of Lender, indicate on its

records concerning the Collateral a notation, in form satisfactory to Lender,

of the security interest of Lender hereunder.

 

(g) Use of Proceeds.

 

All Loan

proceeds obtained by Borrower from Lender pursuant to this Agreement shall be

used solely for business purposes of Borrower.

 

29

 

(h) Taxes.

 

Borrower shall

file all required tax returns and pay all of its taxes when due, subject to any

extensions granted by the applicable taxing authority, including, without

limitation, taxes imposed by federal, state or municipal agencies, and shall

cause any liens for taxes to be promptly released; provided, that Borrower

shall have the right to contest the payment of such taxes in good faith by

appropriate proceedings so long as (i) a reserve is established on the

books of Borrower in such amount as is required under generally accepted

accounting principles or the amount so contested is shown on Borrower’s

financial statements if such amount is greater than the reserve established on

the books of Borrower; and (ii) the contesting of any such payment does

not give rise to a lien for taxes other than Permitted Liens. If Borrower fails

to pay any such taxes and in the absence of any such contest by Borrower,

Lender may (but shall be under no obligation to) advance and pay any sums

required to pay any such taxes and/or to secure the release of any lien

therefor, and any sums so advanced by Lender shall constitute Loans hereunder,

shall be payable by Borrower to Lender on demand, and, until paid, shall bear

interest at the highest rate then applicable to Loans hereunder.

 

(i) Intellectual Property.

 

Borrower shall

maintain adequate licenses, patents, patent applications, copyrights, service

marks, trademarks, trademark applications, tradestyles and trade names to

continue its business as heretofore conducted by it or as hereafter conducted

by it unless, the failure to maintain any of the foregoing could not reasonably

be expected to have a Material Adverse Effect on Borrower.

 

(j) Checking Accounts.

 

Borrower shall

maintain its general checking account with LaSalle Bank.  Normal charges

shall be assessed thereon in accordance with Schedule 12(j) attached hereto and

made a part hereof.  Although no compensating balance is required,

Borrower must keep monthly balances in order to merit earnings credits which

will cover LaSalle Bank’s service charge for demand deposit account activities.

 

13. NEGATIVE

COVENANTS.

 

Until payment

and satisfaction in full of all Liabilities and termination of this Agreement,

unless Borrower obtains Lender’s prior written consent waiving or modifying any

of Borrower’s covenants hereunder in any specific instance, Borrower agrees as

follows:

 

(a) Guaranties.

 

Borrower shall

not assume, guarantee or endorse, or otherwise become liable in connection

with, the obligations of any Person, except by endorsement of instruments for

deposit or collection or similar transactions in the ordinary course of

business, and except for ordinary course indemnity provisions contained in any

lease or loan agreement otherwise permitted under this Agreement, indemnities

given in connection with the sale of Inventory

 

30

 

or other asset dispositions

permitted hereunder and guarantees of the indebtedness issued pursuant to the

Indenture.

 

(b) Indebtedness.

 

Borrower shall

not create, incur, assume or become obligated (directly or indirectly), for any

loans or other indebtedness for borrowed money other than the Loans, except

that Borrower may (i) borrow money from a Person other than Lender on an

unsecured and subordinated basis if a subordination agreement in favor of

Lender and in form and substance satisfactory to Lender is executed and

delivered to Lender relative thereto; (ii) maintain its present indebtedness

listed on Schedule 11(n) hereto and may refinance such indebtedness so

long as the aggregate principal amount of the indebtedness so refinanced shall

not be increased and the refinancing shall be on terms and conditions no more

restrictive than the terms and conditions of the indebtedness to be refinanced;

(iii) incur unsecured indebtedness to trade creditors in the ordinary course of

business; (iv) incur purchase money indebtedness or capitalized lease

obligations in connection with Capital Expenditures; (v) incur operating lease

obligations; and (vi) Interest Rate Swap Obligations; as defined in the

Indenture, of Borrower provided that such Interest Rate Swap Obligations are

entered into to protect the Borrower from fluctuations in interest rates on

indebtedness incurred to the extent the notional principal amount of such

Interest Rate Swap Obligations does not exceed the principal amount of the indebtedness

to which such Interest Rate Swap Obligations relate; (vii) indebtedness

incurred under Currency Agreements, as defined in the Indenture, provided that

such Currency Agreements do not increase the indebtedness of Borrower

outstanding other than as a result of fluctuations in foreign currency exchange

rates or by reason of fees, indemnities and compensation payable thereunder;

(viii) indebtedness of Borrower to Holdings, for so long as such indebtedness

is held by Holdings subject to no lien being held by a Person other than

Holdings; (ix) additional indebtedness in an aggregate principal amount not to

exceed $40,000,000.00 at any one time outstanding; and (x) so long as no Event

of Default shall have occurred and be continuing at the time of or as a

consequence of the incurrence of such indebtedness, additional indebtedness if

on the date of the incurrence thereof, after giving effect to the incurrence

thereof and the application of the proceeds therefrom, the fixed charge

coverage ratio set forth in Section 14(b) is greater than 2.0 to 1.0.

 

(c) Liens.

 

Borrower shall

not grant or permit to exist (voluntarily or involuntarily) any lien, claim,

security interest or other encumbrance whatsoever on any of its assets, other

than Permitted Liens.

 

(d) Mergers, Sales, Acquisitions, Subsidiaries and Other

Transactions Outside the Ordinary Course of Business.

 

Borrower shall not

(i) enter into any merger or consolidation (except that Holdings or any

Subsidiary which is solvent may merge with Borrower, so long as Borrower is the

surviving entity of such merger); (ii) change the state of Borrower’s

organization or enter into any transaction which has the effect of changing

Borrower’s state of organization; (iii) sell, lease

 

31

 

or otherwise dispose of any of

the Collateral other than in the ordinary course of business; or

(iv) except as otherwise permitted herein enter into any other transaction

outside the ordinary course of Borrower’s business, including, without

limitation, any purchase, redemption or retirement of any shares of any class

of its stock or any other equity interest, and any issuance of any shares of,

or warrants or other rights to receive or purchase any shares of, any class of

its stock or any other equity interest; provided that so long as no Event of

Default would occur as a result thereof, Borrower may issue shares of stock or

other rights to receive or purchase any shares of any class of its stock;

provided further, that (x) so long as no Event of Default has occurred and is

continuing or would occur as a result thereof and (y) such redemption does not

violate any applicable laws, Borrower may redeem its Series A Preferred Stock

on April 30, 2005.  Borrower shall not form any Subsidiaries or enter into

any joint ventures or partnerships with any other Person unless such

Subsidiary, joint venture or partnership executes and delivers to Lender a

Continuing Unconditional Guaranty, Security Agreement, Uniform Commercial Code

Financing Statement and such other documents as Lender may reasonably request

granting a lien on the same assets of such Person as is described in Section 5

hereof.

 

(e) Dividends and Distributions.

 

Borrower shall not declare or pay any dividend or other distribution in

cash  on any class of its stock (if Borrower is a corporation), provided,

that (i) so long as such dividend is permitted under all applicable laws; and

(ii) no Event of Default shall have occurred prior to the time of, or would

occur as a result of such dividend, Borrower may (W) pay cash dividends or make

other intercompany transfers to Holdings in an aggregate amount sufficient to

permit Holdings to make interest payments with respect to the Notes under and

as defined in the Indenture but only to the extent permitted by the

subordination provisions contained in the Indenture, provided that voluntary

prepayment or redemption or defeasance of the Notes in excess of $15,000,000.00

in the aggregate, shall not be permitted unless at the time of such prepayment

there is a zero (0) balance on the Revolving Loans and, after giving effect to

such prepayment, there remains a zero (0) balance on the Revolving Loans; (X)

pay cash dividends or make other intercompany transfers to Holdings for

administrative expenses of Holdings incurred in the ordinary course of business

and solely attributable to business activities related to Borrower (including

without limitation the payment of executive salaries and benefits)so long as

such dividends or other intercompany transfers are applied promptly to pay such

administrative expense and do not exceed $5,000,000.00 in any Fiscal Year of

Holdings; (Y) pay cash dividends to Holdings to the extent such proceeds are

promptly used by Holdings to make payments in respect of repurchased shares of

Holdings common stock from employees provided that such payments are not

greater than or equal to $500,000.00 in any year and (Z) pay the regularly

scheduled dividends on its Series A Preferred Stock.

 

(f) Investments; Loans.

 

Borrower shall

not purchase or otherwise acquire, or contract to purchase or otherwise

acquire, the obligations or stock of any Person, other than direct obligations

of the United States, obligations insured by the Federal Deposit Insurance

Corporation and obligations unconditionally guaranteed by the United States;

nor shall Borrower lend or otherwise advance funds to any Person except for

advances made to employees, officers and

 

32

 

directors for travel and other

expenses arising in the ordinary course of business and loans to employees,

officers and directors of Borrower in the ordinary course of business for bona

fide business purposes not exceeding Two Hundred Fifty Thousand and No/100

Dollars ($250,000.00) in the aggregate outstanding for all Persons at any one

time and loans described on Schedule 13(f). Notwithstanding the

foregoing, Borrower may (i) invest in any Person that is or will immediately

after such investment merge or consolidate into Borrower; (ii) invest in

Holdings provided that any indebtedness evidencing such investment is unsecured

and subordinated pursuant to a subordination agreement executed in favor of

Lender in form and substance satisfactory to Lender and delivered to Lender

relative thereto; (iii) make loans to employees, officers and directors of

Borrower to finance the purchase of the Qualified Capital Stock, as defined in

the Indenture, not to exceed $500,000.00 at any one time outstanding; (iv)

enter into Currency Agreements, as defined in the Indenture, and Interest Rate

Swap Obligations, as defined in the Indenture, entered into in the ordinary

course of Borrower’s business and otherwise in compliance with this Agreement;

(v) investments in securities of trade creditors or customers received pursuant

to any plan of reorganization or similar arrangement upon bankruptcy or

insolvency of such trade creditors or customers; and (vi) make investments made

by Borrower as a result of consideration received in connection with a sale of

assets permitted hereunder.

 

(g) Fundamental

Changes, Line of

Business.

 

Borrower shall

not amend its organizational documents or change its Fiscal Year or enter into

a new line of business materially different from Borrower’s current business,

unless (i) such actions would not have a Material Adverse Effect on the

Borrower, (ii) such actions would not affect the obligations of Borrower to

Lender under this Agreement and the Other Agreements, (iii) such actions would

not affect the interpretation of any of the terms of this Agreement or the

Other Agreements and (iv) Lender has received ten (10) days prior written

notice of such amendment or change.

 

(h) Intentionally Omitted.

 

(i) Affiliate Transactions.

 

Except as set

forth on Schedule 11(i) hereto or as permitted pursuant to subsection

11(c) hereof, Borrower shall not conduct, permit or suffer to be conducted,

transactions with Affiliates other than transactions pursuant to terms that are

no less favorable to Borrower than the terms upon which such transactions would

have been made had they been made to or with a Person that is not an Affiliate,

provided that Borrower may make payments (whether for fees, as compensation for

services or otherwise) to (i) Page Charters, Inc. in an aggregate amount not to

exceed $658,845.00 in Fiscal Year 2002, which amount may be increased each

Fiscal Year by ten percent (10%) of the prior Fiscal Year’s permitted amount;

and (ii) Novamil Corporation  under that certain Management Agreement

dated April 28, 1995 by and between  PPC Acquisitions, Inc. and Novamil

Corporation, as in effect of the date hereof, in an aggregate amount not to

exceed $819,764.00 in any fiscal year plus any cost of living increases

provided for in such Management Agreement .

 

33

 

(j) Settling of Accounts.

 

Borrower shall

not settle or adjust any Account identified by Borrower as an Eligible Account

or with respect to which the Account Debtor is an Affiliate without the consent

of Lender, except for ordinary course discounts, credits or allowances which

reduce the availability set forth in Subsection (2)(a) of this Agreement

provided, that following the occurrence and during the continuance of an Event

of Default, Borrower shall not settle or adjust any Account without the consent

of Lender.

 

14. FINANCIAL

COVENANTS.

 

Borrower shall

maintain and keep in full force and effect each of the financial covenants set

forth below:

 

(a) Tangible Net Worth.

 

Borrower’s

Tangible Net Worth shall not at any time be less than the Minimum Tangible Net

Worth; “Minimum Tangible Net Worth”

being defined for purposes of this subsection as (i) $91,000,000.00 (less

the principal amount (at par value) of any of Holdings’ Senior Subordinated

Notes that are repurchased or otherwise retired so long as the outstanding

amount of Revolving Loans at the time of such repurchase or retirement does not

exceed $15,000,000) at all times from the date hereof through December 31, 2003

and (ii) thereafter, commencing March 31, 2004 from thefirst day of each

fiscal quarter of Borrower through the last day of such fiscal quarter of

Borrower, the Minimum Tangible Net Worth during the immediately preceding

period plus $125,000.00; and “Tangible Net

Worth” being defined for purposes of this subsection as Borrower’s

shareholders’ equity (including retained earnings) less the book value

of all intangible assets as determined by Lender in its Permitted Discretion on

a consistent basis plus the amount of any LIFO reserve plus the

amount of any debt subordinated to Lender, all as determined under generally

accepted accounting principles applied on a basis consistent with the financial

statement dated March 31, 2002 except as set forth herein;

 

(b) Fixed Charge Coverage

 

As of the last

day of each fiscal quarter of Borrower, for the twelve (12) month period ending

on such date, Borrower shall not permit the ratio of its EBITDA to Fixed

Charges to be less than 1.00 to 1.00.

 

15. DEFAULT.

 

The occurrence

of any one or more of the following events shall constitute an “Event of

Default” by Borrower hereunder:

 

(a) Payment.

 

The failure of

any Obligor to pay when due, declared due, or demanded by Lender, any of the

Liabilities.

 

34

 

(b) Breach of this Agreement and the Other Agreements.

 

The failure of

any Obligor to perform, keep or observe any of the covenants, conditions,

promises, agreements or obligations of such Obligor under this Agreement or any

of the Other Agreements; provided that any such failure by Borrower under

subsections 12(a), 12(b)(i), (iv), (v), (vi), 12(c), 12(h)  and 12(i) of

this Agreement shall not constitute an Event of Default hereunder until the

fifteenth (15th) day following the occurrence thereof.

 

(c) Breaches of Other Obligations.

 

The failure of

any Obligor to perform, keep or observe (after any applicable notice and cure

period) any of the covenants, conditions, promises, agreements or obligations

of such Obligor under any other agreement with any Person if such failure could

reasonably be expected to have a Material Adverse Effect on such Obligor.

 

(d) Breach of Representations and Warranties.

 

The making or

furnishing by any Obligor to Lender of any representation, warranty,

certificate, schedule, report or other communication within or in connection

with this Agreement or the Other Agreements or in connection with any other

agreement between such Obligor and Lender, which is untrue or misleading in any

material respect as of the date made.

 

(e) Loss of Collateral.

 

The loss,

theft, damage or destruction of, or (except as permitted hereby) sale, lease or

furnishing under a contract of service of, any of the Collateral.

Notwithstanding the foregoing, loss, theft, damage or destruction (a “Loss”) of any of the Collateral shall not

constitute an Event of Default hereunder if, with respect to Losses involving

any Collateral, (i) to the extent that such Losses involve Collateral which is

insured, coverage is not denied or excluded by the insurer and Lender is in

receipt of all insurance proceeds relative thereto within one hundred twenty

(120) days of the occurrence of such Loss; or (ii) to the extent that such

Losses involve Collateral which is uninsured or for which coverage is denied or

excluded by the insurer or for which Lender does not receive the proceeds

within one hundred twenty (120) days of the occurrence of such Loss, such

Losses involve Collateral worth more than Five Million and No/100 Dollars

($5,000,000.00) in the aggregate for all such events during any year of the

Original Term or any Renewal Term.  With respect to determining the value

of the Collateral, such valuation shall be determined by Lender in its

Permitted Discretion.

 

(f) Levy, Seizure or Attachment.

 

The making by

any Person of any levy, seizure or attachment upon any of Borrower’s assets to

the extent such assets have an aggregate value in excess of $5,000,000.00 as

determined by Lender in its Permitted Discretion.

 

35

 

(g) Bankruptcy or Similar Proceedings.

 

The

commencement of any proceedings in bankruptcy by or against any Obligor or for

the liquidation or reorganization of any Obligor, or alleging that such Obligor

is insolvent or unable to pay its debts as they mature, or for the readjustment

or arrangement of any Obligor’s debts, whether under the United States

Bankruptcy Code or under any other law, whether state or federal, now or

hereafter existing, for the relief of debtors, or the commencement of any

analogous statutory or non-statutory proceedings involving any Obligor;

provided, however, that if such commencement of proceedings against such

Obligor is involuntary, such action shall not constitute an Event of Default

unless such proceedings are not dismissed within forty-five (45) days after the

commencement of such proceedings.

 

(h) Appointment of Receiver.

 

The

appointment of a receiver or trustee for any Obligor, for any of the Collateral

or for any substantial part of any Obligor’s assets or the institution of any

proceedings for the dissolution, or the full or partial liquidation, or the

merger or consolidation, of any Obligor which is a corporation, limited

liability company or a partnership; provided, however, that if such appointment

or commencement of proceedings against such Obligor is involuntary, such action

shall not constitute an Event of Default unless such appointment is not revoked

or such proceedings are not dismissed within forty-five (45) days after the

commencement of such proceedings.

 

(i) Judgment.

 

The entry of

any judgments or orders aggregating in excess of $1,000,000.00 against any

Obligor which remains unsatisfied or undischarged and in effect for thirty (30)

days after such entry without a stay of enforcement or execution.

 

(j) Dissolution of Obligor.

 

The

dissolution of any Obligor which is a partnership, limited liability company,

corporation or other entity.

 

(k) Default or Revocation of Guaranty.

 

The occurrence

of an event of default under, or the revocation or termination of, any

agreement, instrument or document executed and delivered by any Person to

Lender pursuant to which such Person has guaranteed to Lender the payment of

all or any of the Liabilities or has granted Lender a security interest in or

lien upon some or all of such Person’s real and/or personal property to secure

the payment of all or any of the Liabilities.

 

(l) Criminal Proceedings.

 

The

institution in any court of a criminal proceeding against any Obligor which

would have a Material Adverse Effect on such Obligor, or the indictment of any

Obligor for any crime other than traffic and boating tickets and misdemeanors

not punishable by jail terms.

 

36

 

(m) Change of Control.

 

(i) The

failure of Robert E. Milhous and Paul B. Milhous to directly or indirectly own

and have voting control of at least Fifty and one-tenth percent (50.1%) in the

aggregate of the issued and outstanding voting equity interests of Holdings,

(ii) the failure of Holdings to own and have voting control of at least one

hundred percent (100%) of the issued and outstanding voting equity interest of

Borrower, or (iii) a “Change of Control” under and as defined in the Indenture

occurs; provided that the merger of Holdings with and into Borrower shall not

constitute an Event of Default so long as Borrower is the surviving entity of such

merger.

 

(n) Material Adverse Change.

 

Any material

adverse change in the Collateral, business, assets, liabilities, operations or

condition, financial or otherwise of any Obligor, as determined by Lender in

its sole reasonable judgment or the occurrence of any event which, in Lender’s

reasonable judgment, could have a Material Adverse Effect.

 

(o) Indenture Event of Default.

 

The occurrence

of an Event of Default under and as defined in the Indenture or any amendment

of said Indenture.

 

16. REMEDIES

UPON AN EVENT OF

DEFAULT.

 

(a) Upon

the occurrence and during the continuance of an Event of Default described in subsection

15(g) hereof, all of the Liabilities shall immediately and automatically

become due and payable, without notice of any kind.  Upon the occurrence

of any other Event of Default, all Liabilities may, at the option of Lender,

and without demand, notice or legal process of any kind, be declared, and

immediately shall become, due and payable.

 

(b) Upon

the occurrence and during the continuance of an Event of Default, Lender may

exercise from time to time any rights and remedies available to it under the

Uniform Commercial Code and any other applicable law in addition to, and not in

lieu of, any rights and remedies expressly granted in this Agreement

(including, without limitation, the right to decrease the Maximum Loan Limit)

or in any of the Other Agreements and all of Lender’s rights and remedies shall

be cumulative and non-exclusive to the extent permitted by law.  In

particular, but not by way of limitation of the foregoing, Lender may, without

notice, demand or legal process of any kind, take possession of any or all of

the Collateral (in addition to Collateral of which it already has possession),

wherever it may be found, and for that purpose may pursue the same wherever it

may be found, and may enter onto any of Borrower’s premises where any of the

Collateral may be, and search for, take possession of, remove, keep and store

any of the Collateral until the same shall be sold or otherwise disposed of,

and Lender shall have the right to store the same at any of Borrower’s premises

without cost to Lender.  At Lender’s request, Borrower shall, at

Borrower’s expense, assemble the Collateral and make it available to Lender at

one or more places to be designated by Lender and reasonably convenient to

Lender and Borrower.  Borrower

 

37

 

recognizes that if Borrower

fails to perform, observe or discharge any of its Liabilities under this

Agreement or the Other Agreements, no remedy at law will provide adequate

relief to Lender, and agrees that Lender shall be entitled to temporary and

permanent injunctive relief in any such case without the necessity of proving

actual damages.  Any notification of intended disposition of any of the

Collateral required by law will be deemed to be a reasonable authenticated

notification of disposition if given at least ten (10) days prior to such

disposition and such notice shall (i) describe Lender and Borrower, (ii) describe

the Collateral that is the subject of the intended disposition, (iii) state the

method of the intended disposition, (iv) state that Borrower is entitled to an

accounting of the Liabilities and state the charge, if any, for an accounting

and (v) state the time and place of any public disposition or the time after

which any private sale is to be made.  Lender may disclaim any warranties

that might arise in connection with the sale, lease or other disposition of the

Collateral and has no obligation to provide any warranties at such time. 

Any Proceeds of any disposition by Lender of any of the Collateral may be

applied by Lender to the payment of expenses in connection with the Collateral,

including, without limitation, legal expenses and reasonable attorneys’ fees,

and any balance of such Proceeds may be applied by Lender toward the payment of

such of the Liabilities, and in such order of application, as Lender may from

time to time elect.

 

17. CONDITIONS

PRECEDENT.

 

The obligation

of Lender to  fund the initial Revolving Loan, and to issue or cause to be

issued the initial Letter of Credit, is subject to the satisfaction or waiver

on or before the date hereof of the following conditions precedent:

 

(a) Lender

shall have received each of the agreements, opinions, reports, approvals,

consents, certificates and other documents set forth on the closing document

list attached hereto as Schedule 17(a) (the “Closing Document List”) in each case in form and substance

reasonably satisfactory to Lender;

 

(b) Since

July 9, 2002, no event shall have occurred which has had or could reasonably be

expected to have a Material Adverse Effect on any Obligor, as determined by

Lender in its Permitted Discretion;

 

(c) Lender

shall have received payment in full of all fees and expenses payable to it by

Borrower or any other Person in connection herewith, on or before disbursement

of the initial Loans hereunder; and

 

(d) The

Obligors shall have executed and delivered to Lender all such other documents,

instruments and agreements which Lender determines are reasonably necessary to

consummate the transactions contemplated hereby, including, without limitation

a Continuing Unconditional Guaranty from Perry Judd’s Holdings, Inc.

 

18. INDEMNIFICATION.

 

Borrower

agrees to defend (with counsel reasonably satisfactory to Lender), protect,

indemnify and hold harmless Lender, each affiliate or subsidiary of Lender, and

each of their respective officers, directors, employees, attorneys and agents

(each an

 

38

 

“Indemnified Party”) from and against any and all liabilities,

obligations, losses, damages, penalties, actions, judgments, suits, claims,

costs, expenses and disbursements of any kind or nature (including, without

limitation, the disbursements and the reasonable fees of counsel for each

Indemnified Party in connection with any investigative, administrative or

judicial proceeding, whether or not the Indemnified Party shall be designated a

party thereto), which may be imposed on, incurred by, or asserted against, any

Indemnified Party (whether direct, indirect or consequential and whether based

on any federal, state or local laws or regulations, including, without

limitation, securities laws and regulations, Environmental Laws and commercial

laws and regulations, under common law or in equity, or based on contract or

otherwise) in any manner relating to or arising out of this Agreement or any

Other Agreement, or any act, event or transaction related or attendant thereto,

the making or issuance and the management of the Loans or any Letters of Credit

or the use or intended use of the proceeds of the Loans or any Letters of

Credit; provided, however, that Borrower shall not have any obligation

hereunder to any Indemnified Party with respect to matters caused by or

resulting from the willful misconduct or gross negligence of such Indemnified

Party. To the extent that the undertaking to indemnify set forth in the

preceding sentence may be unenforceable because it is violative of any law or

public policy, Borrower shall satisfy such undertaking to the maximum extent

permitted by applicable law.  Any liability, obligation, loss, damage,

penalty, cost or expense covered by this indemnity shall be paid to each

Indemnified Party on demand, and, failing prompt payment, shall, together with

interest thereon at the highest rate then applicable to Loans hereunder from

the date incurred by each Indemnified Party until paid by Borrower, be added to

the Liabilities of Borrower and be secured by the Collateral.  The provisions

of this Section 18 shall survive the satisfaction and payment of the

other Liabilities and the termination of this Agreement.

 

19. NOTICE.

 

All written

notices and other written communications with respect to this Agreement shall

be sent by ordinary, certified or overnight mail, by telecopy or delivered in

person, and in the case of Lender shall be sent to it at 135 South LaSalle

Street, Chicago, Illinois 60603-4105, attention: John Mostofi, facsimile

number: (312) 904-6450, and in the case of Borrower shall be sent to it at its

principal place of business set forth on Exhibit A hereto to the

attention of the Chief Financial Officer or as otherwise directed by Borrower

in writing.  All notices shall be deemed received upon actual receipt

thereof or refusal of delivery.

 

20. CHOICE OF GOVERNING LAW; CONSTRUCTION; FORUM SELECTION.

 

This Agreement

and the Other Agreements are submitted by Borrower to Lender for Lender’s

acceptance or rejection at Lender’s principal place of business as an offer by

Borrower to borrow monies from Lender now and from time to time hereafter, and

shall not be binding upon Lender or become effective until accepted by Lender,

in writing, at said place of business.  If so accepted by Lender, this

Agreement and the Other Agreements shall be deemed to have been made at said

place of business.  THIS AGREEMENT AND

THE OTHER AGREEMENTS SHALL BE GOVERNED AND CONTROLLED BY THE INTERNAL LAWS OF

THE STATE OF ILLINOIS AS TO INTERPRETATION,

 

39

 

ENFORCEMENT,

VALIDITY, CONSTRUCTION, EFFECT, AND IN ALL OTHER RESPECTS, INCLUDING, WITHOUT

LIMITATION, THE LEGALITY OF THE INTEREST RATE AND OTHER CHARGES, BUT EXCLUDING

PERFECTION OF THE SECURITY INTERESTS IN COLLATERAL LOCATED OUTSIDE OF THE STATE

OF ILLINOIS, WHICH SHALL BE GOVERNED AND CONTROLLED BY THE LAWS OF THE RELEVANT

JURISDICTION IN WHICH SUCH COLLATERAL IS LOCATED. 

If any provision of this Agreement shall be held to be prohibited by or invalid

under applicable law, such provision shall be ineffective only to the extent of

such prohibition or invalidity, without invalidating the remainder of such

provision or remaining provisions of this Agreement.

 

BORROWER HEREBY WAIVES PERSONAL SERVICE OF

ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE

UPON BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED,

ADDRESSED TO BORROWER, AT THE ADDRESS SET FORTH FOR NOTICE IN THIS AGREEMENT

AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.   

Lender shall provide a copy of such process to the law firm of Brobeck, Phleger

& Harrison, Attention: Kenneth Bender, Esq. by mail at the address of 550

South Hope Street, Los Angeles, California 90071 or by facsimile transmission

at facsimile number (213) 239-1324.  Notwithstanding anything to the

contrary contained herein, failure of Lender to provide a copy of such process

shall not impair Lender’s rights hereunder.

 

21. MODIFICATION AND BENEFIT OF AGREEMENT.

 

This Agreement

and the Other Agreements may not be modified, altered or amended except by an

agreement in writing signed by Borrower or such other Person who is a party to

such Other Agreement and Lender.  Borrower may not sell, assign or

transfer this Agreement, or the Other Agreements or any portion thereof,

including, without limitation, Borrower’s rights, titles, interest, remedies,

powers or duties hereunder and thereunder.  Borrower hereby consents to

Lender’s sale, assignment, transfer or other disposition, at any time and from time

to time hereafter, of this Agreement, or the Other Agreements to an affiliate

of Lender, or of any portion thereof, or participations therein so long as

Lender remains a lender, including, without limitation, Lender’s rights,

titles, interest, remedies, powers and/or duties and agrees that it shall

execute and deliver such documents as Lender may request in connection with any

such sale, assignment, transfer or other disposition, provided, that no such

consent shall be required and Lender may sell, assign, transfer or otherwise

dispose at any time and from time to time hereafter, this Agreement or the

Other Agreements, if an Event of Default is then continuing.

 

22. HEADINGS OF SUBDIVISIONS.

 

The headings

of subdivisions in this Agreement are for convenience of reference only, and

shall not govern the interpretation of any of the provisions of this Agreement.

 

40

 

23. POWER OF ATTORNEY.

 

Borrower

acknowledges and agrees that its appointment of Lender as its attorney and

agent-in-fact for the purposes specified in this Agreement is an appointment

coupled with an interest and shall be irrevocable until all of the Liabilities

are satisfied and paid in full and this Agreement is terminated.

 

24. CONFIDENTIALITY.

 

Lender hereby

agrees to use commercially reasonable efforts to assure that any and all

information relating to Borrower which is (i) furnished by Borrower to

Lender (or to any affiliate of Lender); and (ii) non-public, confidential

or proprietary in nature, shall be kept confidential by Lender or such

affiliate in accordance with applicable law; provided, however, that such

information and other credit information relating to Borrower may be

distributed by Lender or such affiliate to Lender’s or such affiliate’s

directors, officers, employees, attorneys, affiliates, assignees, participants,

auditors, agents and regulators, and upon the order of a court or other

governmental agency having jurisdiction over Lender or such affiliate, to any

other party.  Borrower and Lender further agree that this provision shall

survive the termination of this Agreement.  Notwithstanding the foregoing,

Borrower hereby consents to Lender publishing a tombstone or similar

advertising material relating to the financing transaction contemplated by this

Agreement.

 

25. COUNTERPARTS.

 

This

Agreement, any of the Other Agreements, and any amendments, waivers, consents

or supplements may be executed in any number of counterparts and by different

parties hereto in separate counterparts, each of which, when so executed and

delivered, shall be deemed an original, but all of which counterparts together

shall constitute but one agreement.

 

26. ELECTRONIC SUBMISSIONS.

 

Upon not less

than sixty (60) days’ prior written notice (the “Approved Electronic Form Notice”), Lender may permit or

require that any of the documents, certificates, forms, deliveries or other

communications, authorized, required or contemplated by this Agreement or the

Other Agreements, be submitted to Lender in “Approved

Electronic Form” (as hereafter defined), subject to any reasonable

terms, conditions and requirements in the applicable Approved Electronic Forms

Notice.  For purposes hereof “Electronic

Form” means e-mail, e-mail attachments, data submitted on web-based

forms or any other communication method that delivers machine readable data or

information to Lender, and “Approved

Electronic Form” means an Electronic Form that has been approved in

writing by Lender (which approval has not been revoked or modified by Lender)

and sent to Borrower in an Approved Electronic Form Notice.  Except as

otherwise specifically provided in the applicable Approved Electronic Form

Notice, any submissions made in an applicable Approved Electronic Form shall

have the same force and effect that the same submissions would have had if they

had been submitted in any other applicable form authorized, required or

contemplated by this Agreement or the Other Agreements.

 

41

 

27. WAIVERS.

 

(a) IN NO EVENT SHALL LENDER BE LIABLE FOR LOST PROFITS OR

OTHER SPECIAL OR CONSEQUENTIAL DAMAGES.

 

(b) Borrower

hereby waives demand, presentment, protest and notice of nonpayment, and

further waives the benefit of all valuation, appraisal and exemption laws.

 

(c) Borrower

hereby waives the benefit of any law that would otherwise restrict or limit

Lender or any affiliate of Lender in the exercise of its right, after the

occurrence and during the continuance of an Event of Default, which is hereby

acknowledged and agreed to, to set-off against the Liabilities, without notice

at any time hereafter, any indebtedness, matured or unmatured, owing by Lender

or such affiliate of Lender to Borrower, including, without limitation any

deposit account at Lender or such affiliate.

 

(d) EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT,

BORROWER HEREBY WAIVES ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR TO

THE EXERCISE BY LENDER OF ITS RIGHTS TO REPOSSESS THE COLLATERAL OF BORROWER

WITHOUT JUDICIAL PROCESS OR TO REPLEVY, ATTACH OR LEVY UPON SUCH COLLATERAL,

PROVIDED THAT IN THE EVENT THAT LENDER SEEKS TO ENFORCE ITS RIGHTS HEREUNDER BY

JUDICIAL PROCESS OR SELF HELP, LENDER SHALL PROVIDE BORROWER WITH SUCH NOTICES

AS ARE REQUIRED BY LAW.

 

(e) Lender’s

failure, at any time or times hereafter, to require strict performance by

Borrower of any provision of this Agreement or any of the Other Agreements

shall not waive, affect or diminish any right of Lender thereafter to demand

strict compliance and performance therewith.  Any suspension or waiver by

Lender of an Event of Default under this Agreement or any default under any of

the Other Agreements shall not suspend, waive or affect any other Event of

Default under this Agreement or any other default under any of the Other

Agreements, whether the same is prior or subsequent thereto and whether of the

same or of a different kind or character.  No delay on the part of Lender

in the exercise of any right or remedy under this Agreement or any Other

Agreement shall preclude other or further exercise thereof or the exercise of

any right or remedy.  None of the undertakings, agreements, warranties,

covenants and representations of Borrower contained in this Agreement or any of

the Other Agreements and no Event of Default under this Agreement or default

under any of the Other Agreements shall be deemed to have been suspended or

waived by Lender unless such suspension or waiver is in writing, signed by a

duly authorized officer of Lender and directed to Borrower specifying such

suspension or waiver.

 

42

 

28. DESIGNATED SENIOR INDEBTEDNESS.

 

The

Liabilities under this Agreement and the Other Agreements constitutes

“Designated Senior Indebtedness” under and as defined in the Indenture.

 

IN WITNESS

WHEREOF, the parties hereto have duly executed this Agreement as of the date

first written above.

 

 

	

  PERRY JUDD’S INCORPORATED

  	

  LASALLE BUSINESS CREDIT, INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

  By

  	

   

  	

   

  
	

  Title

  	

   

  	

   

  	

  Title

  	

   

  	

   

  
								

 

43

 

EXHIBIT A – BUSINESS AND COLLATERAL LOCATIONS

 

Attached to

and made a part of that certain Loan and Security Agreement of even date

herewith between PERRY JUDD’S INCORPORATED (“Borrower”)

and LASALLE BUSINESS CREDIT, INC. (“Lender”).

 

A.                                   Borrower’s

business locations (please indicate which location is the principal place of

business and at which locations originals and all copies of Borrower’s books,

records and accounts are kept).

 

	

  1.

  	

  575 West

  Madison Street

  
	

   

  	

  Waterloo,

  Wisconsin  53594-0097

  
	

   

  	

  [principal place of business/leased

  location]

  

 

B.                                     Other

business locations (including, without limitation, warehouse locations,

processing locations, consignment locations) and all post office boxes of

Borrower.  Please indicate the relationship of such location to Borrower

(i.e. public warehouse, processor, etc.).

 

	

  1.

  	

  1300 Sauk

  Avenue

  
	

   

  	

  Baraboo,

  Wisconsin

  
	

   

  	

  [leased location]

  
	

   

  	

   

  
	

  2. 

  	

  161 North

  Jackson Street

  
	

   

  	

  Waterloo,

  Wisconsin

  
	

   

  	

  [leased location]

  
	

   

  	

   

  
	

  3.

  	

  275 South

  Jackson Street

  
	

   

  	

  Waterloo,

  Wisconsin

  
	

   

  	

  [leased location]

  
	

   

  	

   

  
	

  4.

  	

  200 South Jackson

  Street

  
	

   

  	

  Waterloo,

  Wisconsin

  
	

   

  	

  [leased location]

  
	

   

  	

   

  
	

  5.

  	

  207 South

  Jackson Street

  
	

   

  	

  Waterloo,

  Wisconsin

  
	

   

  	

  [leased location]

  
	

   

  	

   

  
	

  6.

  	

  One

  Shenandoah Valley Drive

  
	

   

  	

  Strasburg,

  Virginia    22657

  
	

   

  	

  [leased location]

  
	

   

  	

   

  
	

  7.

  	

  377

  Industrial Park

  
	

   

  	

  Mount Jackson,

  Virginia

  
	

   

  	

  [leased location]

  

 

44

 

	

  8.

  	

  520 Second

  Avenue East

  
	

   

  	

  Spencer,

  Iowa  51301

  
	

   

  	

  [owned property – LBCI will not have a mortgage]

  
	

   

  	

   

  
	

  9.

  	

  P.O. Box 97

  
	

   

  	

  Waterloo,

  Wisconsin  53594-0097

  
	

   

  	

   

  
	

  10.

  	

  P.O. Box 530

  
	

   

  	

  Spencer,

  Iowa  51301

  

 

C.        

Bank Accounts of Borrower (other than those at LaSalle Bank National

Association):

 

	

  Bank (with

  address)

  	

   

  	

  Account Number

  	

   

  	

  Type of Account

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  1.          Farmers

  & Merchants State Bank, Waterloo, Wisconsin

  	

   

  	

  114-155

  	

   

  	

  Checking

  Account

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  2.          Baraboo

  National Bank, Baraboo, Wisconsin

  	

   

  	

  101124358

  	

   

  	

  Checking

  Account

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  3.          Bank

  of America, Spencer, Iowa

  	

   

  	

  550158200133

  	

   

  	

  Checking

  Account

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  4.          First

  Virginia Bank, Strasburg, Virginia

  	

   

  	

  22152288

  	

   

  	

  Checking

  Account

  

 

45

 

EXHIBIT

B – COMPLIANCE CERTIFICATE

 

Attached to

and made a part of that certain Loan and Security Agreement, as it may be

amended in accordance with its terms from time to time, including all exhibits

attached thereto (the “Agreement”)

of even date herewith between PERRY JUDD’S INCORPORATED (“Borrower”) and LASALLE BUSINESS CREDIT,

INC. (“Lender”).

 

This

Certificate is submitted pursuant to {subsection 9(c)} of the Agreement.

 

The

undersigned hereby certifies to Lender that as of the date of this Certificate:

 

1.             The undersigned is the

                              

of Borrower.

 

2.             There exists no event or

circumstance which is or which with the passage of time, the giving of notice,

or both would constitute an Event of Default, as that term is defined in the

Agreement, or, if such an event of circumstance exists, a writing attached

hereto specifies the nature thereof, the period of existence thereof and the

action that Borrower has taken or proposes to take with respect thereto.

 

3.             No material adverse change in the

condition, financial or otherwise, business, property, or results of operations

of Borrower has occurred since [date of last

Compliance Certificate/last financial statements delivered prior to closing],

or, if such a change has occurred, a writing attached hereto specifies the

nature thereof and the action that Borrower has taken or proposes to take with

respect thereto.

 

4.             Borrower is in compliance with the

representations, warranties and covenants in the Agreement, or, if Borrower is

not in compliance with any representations, warranties or covenants in the

Agreement, a writing attached hereto specifies the nature thereof, the period

of existence thereof and the action that Borrower has taken or proposes to take

with respect thereto.

 

5.              The financial statements of

Borrower being concurrently delivered herewith have been prepared in accordance

with generally accepted accounting principles consistently applied and there

have been no material changes in accounting policies or financial reporting

practices of Borrower since [date of the last

Compliance Certificate/date of last financial statements delivered prior to

closing] or, if any such change has occurred, such changes are set

forth in a writing attached hereto.

 

46

 

6.             Attached hereto is a true and

correct calculation of the financial covenants contained in the Agreement.

 

	

   

  	

  PERRY JUDD’S INCORPORATED

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Its

  	

   

  

 

47

 

 

EXHIBIT

C – COMMERCIAL TORT CLAIMS

 

NONE

 

48

 

SCHEDULE 1 – PERMITTED LIENS

 

	

  1.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Micro Inks

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1081387 8

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/10/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Inventory

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  2.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Transamerica

  Equipment Financial Services Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1089955 4

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/23/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  3.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1097660 0

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/17/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  4.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1097689 9

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/17/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  5.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  De Lage

  Landen Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1112601 5

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  09/10/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  

 

49

 

	

  6.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Heller

  Financial Leasing, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1115033 8

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/03/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  7.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1144764 3

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/19/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  8.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured Party:

  	

   

  	

  Fleet

  Financial Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1180849 7

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/26/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  9.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Canon

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  2035533 3

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  1/16/02

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Delawared

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  10.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Heidelberg

  Web Systems, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  2043108 4

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  02/19/02

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  11.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  BCC

  Equipment Leasing Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  2059062 4

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  02/11/02

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

50

 

	

  12.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GFC Leasing

  A Division of Gordon Flesch Co., Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  2084806 3

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  03/12/02

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  /S Delaware

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  13.

  	

   

  	

  Debtor:

  	

   

  	

  Perry /

  Judds

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fuji Film

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  020008685734

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/01/02

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  14.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Kopenhaver,

  Laurie

  
	

   

  	

   

  	

   

  	

   

  	

  Compaq

  Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1834395

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  03/25/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  15.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Heller

  Financial Leasing, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  010007272624

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/26/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  16.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GFC Leasing

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1759316

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/14/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  17.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GFC Leasing,

  A Division of Gordon Flesch Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1759317

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/14/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

51

 

	

  18.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GFC Leasing,

  A Division of Gordon Flesch Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01882773

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  09/20/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  19.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Printing Corporation

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation f/k/a Fleet Credit Corporation.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1529591

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/23/95

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  20.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1602114

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/19/96

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  21.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation for Itself and as Agent

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1668027

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/01/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  22.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation for Itself and as Agent

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1668028

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/01/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  23.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation for Itself and as Agent

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1701708

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  09/19/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

52

 

	

  24.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet Capital

  Corporation for Itself and as Agent

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1705597

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/06/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  25.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation for Itself and as Agent

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1705598

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/06/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  26.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation (for itself and/or as agent)

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1763002

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/29/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  27.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GTE Leasing

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1792745

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  09/28/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  28.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1793768

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/02/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  29.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation (for itself and/or as agent)

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1794581

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/06/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

53

 

	

  30.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GFC Leasing,

  A Division of Gordon Flesch Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1799581

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/27/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  31.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  General

  Electric Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1803393

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/10/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  32.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  General

  Electric Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1812279

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  12/21/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  33.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation, for itself and/or as agent

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1814828

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/04/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  34.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation (for itself and/or as agent)

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1814829

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/04/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  35.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Meridian

  Leasing Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1820793

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/29/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  

 

54

 

	

  36.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Compaq

  Capital

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1820996

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/29/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  37.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Pitney Bowes

  Credit Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1841682

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  04/26/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  38.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Pitney Bowes

  Credit Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1841683

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  04/26/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  39.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Inc

  
	

   

  	

   

  	

  Secured Party:

  	

   

  	

  Pitney Bowes

  Credit Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1841684

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  04/26/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  40.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Siemens

  Credit Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01861678

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/08/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  41.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation (for itself and/or as agent)

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01869625

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/03/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

55

 

	

  42.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation (for itself and/or as agent)

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01870356

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/05/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  43.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  NMHG

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01888260

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/08/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  44.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  NMGH

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01889166

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/12/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  45.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01898729

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/12/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  46.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01898734

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/12/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  47.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Judd’s, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  NMHG

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01900178

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/18/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

56

 

	

  48.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Judd’s, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  NMHG

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01903403

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/30/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  49.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Judd’s, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  NMHG

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01909026

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  12/20/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  50.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Heller

  Financial Leasing, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01914726

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/05/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  51.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Citicorp Del

  Lease, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01916575

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/11/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  52.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GE Capital

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01918571

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/18/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  53.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Transamerica

  Services Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01955950

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/12/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

57

 

	

  54.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Associated

  Bank

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01966169

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  06/15/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  55.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  American

  Medical Association

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01971516

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/05/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Inventory

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  56.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Bank One,

  Milwaukee

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01995365

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  09/28/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  57.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Bank One,

  Milwaukee

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  02002899

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/24/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  58.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  BancBoston

  Leasing Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  02028543

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/22/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  59.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  PrimeSource

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1350332

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  04/29/93

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

58

 

	

  60.

  	

   

  	

  Debtor:

  	

   

  	

  Perry -

  Judds

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GFC Leasing,

  A Division of Gordon Flesch Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1779133

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/31/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  61.

  	

   

  	

  Debtor:

  	

   

  	

  Perry-Judd’s,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Meridian

  Leasing Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1779138

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/31/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  62.

  	

   

  	

  Debtor:

  	

   

  	

  Perry-Judd’s,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  PrimeSource

  Corp.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1844795

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/06/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  63.

  	

   

  	

  Debtor:

  	

   

  	

  Perry-Judd’s,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  PrimeSource

  Corp.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1844815

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/06/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  64.

  	

   

  	

  Debtor:

  	

   

  	

  Perry-Judds

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  IBM Credit

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01939225

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  03/23/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  65.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Pitney Bowes

  Credit

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  P086967

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  03/03/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Iowa

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

59

 

	

  66.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured Party:

  	

   

  	

  General Electric Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  168578

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/19/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Sauk County, Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  67.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Siemens

  Credit Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  171689

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/31/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Sauk County,

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  68.

  	

   

  	

  Debtor:

  	

   

  	

  Perry-Judd’s,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Meridian

  Leasing Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  9805267452

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/26/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  69.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  9810157236

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/15/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  70.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  E.I. Dupont

  de Nemours & Co.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  9901207801

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/20/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  71.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Compaq

  Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  9905267810

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/26/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

60

 

	

  72.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds,

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Compaq

  Capital Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  9905277820

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/27/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  73.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  9911127377

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/12/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  74.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  9911127378

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/12/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  75.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Inc

  
	

   

  	

   

  	

  Secured Party:

  	

   

  	

  Citicorp Del

  Lease, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  0001117176

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/11/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  76.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Cannon

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  0007217071

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/21/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  77.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Transamerica

  Equipment Financial

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  0101047007

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/04/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

61

 

	

  78.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Judd’s, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  PrimeSource

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  0108237228

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/23/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  79.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Heller

  Financial Leasing, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  0110267340

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/26/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  80.

  	

   

  	

  Debtor:

  	

   

  	

  Perry-Judd’s

  Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Meridian

  Leasing Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  98000176

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/22/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (Leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  81.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation for itself and/or as Agent

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  98000351

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/01/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  82.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  99000206

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/26/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  83.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Canon

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  99000276

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/12/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

62

 

	

  84.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  99000315

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/15/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  85.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Newcourt

  Financial USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  99000316

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/15/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  86.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Siemens

  Credit Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  00000013

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/12/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  87.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Siemens

  Credit Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  00000014

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/12/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  88.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GE Capital

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  00000018

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/18/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  89.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Citicorp Del

  Lease, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  00000045

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  02/11/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

63

 

	

  90.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  American

  Medical Association

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  00000236

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/06/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Inventory

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  91.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judds

  Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Canon

  Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  00000265

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  07/24/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  92.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Imaging

  Financial Services Inc

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  00000321

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/30/00

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  93.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Transamerica

  Equipment Financial Services Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01000012

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/08/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  94.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  BancBoston

  Leasing Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01000028

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  01/22/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  95.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Heller

  Financial Leasing, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  01000307

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/26/01

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

64

 

	

  96.

  	

   

  	

  Debtor:

  	

   

  	

  Perry Judd’s

  Incorporated

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Heidelberg

  Web Systems, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  02000006

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  02/20/02

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  97.

  	

   

  	

  Debtor:

  	

   

  	

  Judd’s Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Master Lease

  Div of Tokai Financial Services, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  9300252

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/04/93

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  Shenandoah

  County, Virginia

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  98.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communication

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Caterpillar

  Financial Services Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1631005

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  11/26/96

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  99.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fuji Photo

  Film U.S.A. Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1608652

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/19/96

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  100.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Imaging

  Financial Services Inc

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1669558

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/06/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  101.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GTE Leasing

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1673655

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  05/21/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  

 

65

 

	

  102.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GTE Leasing

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1694801

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/18/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment (leased)

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  103.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation for itself and/or as Agent

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1696365

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/25/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  104.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Caterpillar

  Financial Services Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1718671

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  12/01/97

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  105.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation (for itself and/or as Agent)

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1739876

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  03/02/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  106.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  GTE Leasing

  Corporation

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  1779777

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/03/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S

  Wisconsin

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  107.

  	

   

  	

  Debtor:

  	

   

  	

  Perry

  Graphic Communications, Inc.

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fleet

  Capital Corporation (for itself and/or as Agent)

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  P068087

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  12/29/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Iowa

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

66

 

	

  108.

  	

   

  	

  Debtor:

  	

   

  	

  Heartland

  Press Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  The CIT

  Group/Equipment Financing Inc

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  K638818

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  03/30/95 (cont’d)

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Iowa

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  109.

  	

   

  	

  Debtor:

  	

   

  	

  Heartland

  Press

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fuji Photo

  Film USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  K830593

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  04/24/97

  (cont’d)

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Iowa

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  110.

  	

   

  	

  Debtor:

  	

   

  	

  Heartland

  Press

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fuji Photo

  Film USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  K860522

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  09/16/97

  (cont’d)

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Iowa

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  111.

  	

   

  	

  Debtor:

  	

   

  	

  Heartland

  Press, Inc

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Wam!Net Inc

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  K957936

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  10/26/98

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Iowa

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  112.

  	

   

  	

  Debtor:

  	

   

  	

  Heartland

  Press

  
	

   

  	

   

  	

  Secured

  Party:

  	

   

  	

  Fuji Photo

  Film USA, Inc.

  
	

   

  	

   

  	

  File Number:

  	

   

  	

  P036846

  
	

   

  	

   

  	

  Filed:

  	

   

  	

  08/19/99

  
	

   

  	

   

  	

  Jurisdiction:

  	

   

  	

  S/S Iowa

  
	

   

  	

   

  	

  Collateral:

  	

   

  	

  Specific

  Equipment

  

 

67

 

SCHEDULE

11(g) – LITIGATION

 

None

 

68

 

SCHEDULE 11(i) –

AFFILIATE TRANSACTIONS

 

NONE

 

69

 

SCHEDULE 11(j) – NAMES & TRADE NAMES

 

1.  Perry Judd’s Incorporated (Borrower/Legal Name)

 

70

 

SCHEDULE

11(n) – INDEBTEDNESS

 

$115,000,000 under the Indenture

 

71

 

SCHEDULE 11(p) –

PARENT, SUBSIDIARIES AND AFFILIATES

 

1.             Perry Judd’s Holdings, Inc.

(Parent)

 

72

 

SCHEDULE 12(j) –

CHARGES REGARDING CHECKING ACCOUNTS

 

See Attached 

 

73

 

SCHEDULE 13(f) – LOANS BY BORROWER

 

NONE

 

74

 

SCHEDULE 17(a) – CLOSING DOCUMENT CHECKLIST

 

1.                                       Loan and

Security Agreement (including Exhibits and Schedules) (ver2g)

 

2.                                       $25,000,000.00

Revolving Note for Loans in favor of Lender (ver 1)

 

3.                                       UCC financing

statements showing Borrower as debtor filed with each of the following offices:

 

	

  State

  	

   

  	

  Office

  	

   

  	

  Includes

  Fixtures

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Delaware

  	

   

  	

  S/S Delaware

  	

   

  	

  N/A

  

 

4.                                       Items relating

to insurance:

 

a.                                       Insurance

policy(ies)

 

b.                                      Lender

Insurance Letter to Agent (ver 1)

 

c.                                       Assignment

of Business Interruption Insurance Policy (ver 1)

 

d.                                      Certificate(s) of Insurance

with respect to property and liability insurance, showing LaSalle Business

Credit, Inc. as certificate holder, lenders loss payee and additional insured,

as applicable, and with lenders loss payable clause in favor of LaSalle

Business Credit, Inc. (ver 1)

 

e.                                       Letter

from insurance agent indicating LaSalle Business Credit, Inc.’s status as sole

loss payee with respect to the property insurance policy,

 

5.                                       Secretary’s

Certificate as to Certificate of Incorporation and By-Laws as each may be

amended, Incumbency of Officers and Stockholders (ver 1)

 

6.                                       Corporate

Resolutions (ver2g)

 

7.                                       Signature Cards

 

8.                                       Controlled

Disbursement Services Agreement (ver 1)

[Cash Management

form]

 

9.                                       Cash Management

Forms

[Cash Management

form]

 

10.                                 Collateral Report

Authorization Letter (ver 1)

 

75

 

11.                                 Authorization to

Disburse Loan Proceeds (ver 1)

 

12.                                 Master Cash Management

Service Agreement

[Cash Management

form]

 

13.                                 W-9 Taxpayer

Identification Form (ver 1)

 

14.                                 Continuing

Unconditional Guaranty with

Rider A-Special

Provisions (ver 1):

 

a)                                      Perry

Judd’s Holdings, Inc.

 

15.                                 Landlord’s Agreement

from Print (WI) QRS 12-40, Inc. with respect to the property located at (ver

1):

 

a)                                      575

West Madison Street, Waterloo, Wisconsin 53594-0097

 

16.                                 Attorney’s Opinion

Letter (ver2g)

 

17.                                 Payoff Letter with

copy of executed UCC Terminations - [Lender to record terminations]

 

18.                                 Lock Box and Blocked

Account Agreement (ver 1)

 

19.                               Master Letter of Credit

Agreement (ver 1)

 

20.                                 Accountant’s Reliance

Letter from Accountant (ver 1)

 

21.                                 Accountant’s Reliance

Letter from Bank (ver 1)

 

22.                                 Daily Loan Request

Form (ver 1)

 

23.                                 Wire Transfer Security

Procedures – Telephone (ver 1)

 

24.                                 Waiver Agreement (ver

1)

 

76Exhibit 10.23

PURCHASE AND SALE AGREEMENT

This Purchase and Sale

Agreement (“Agreement”) is made by and between Tokyo Electron Oregon, LLC, an

Oregon limited liability company (“Seller”) and FEI Company, an Oregon

corporation, and/or assigns (“Purchaser”) in Portland, Oregon this 29th

day of May, 2002 (“Effective Date”) (which is the date upon which both Seller

and Purchaser have executed this Agreement and provided, by facsimile or

otherwise, evidence of such execution to each other).

The parties agree as follows:

RECITALS

A.            Seller owns certain real property in

Washington County, Oregon which is described on Exhibit A attached

hereto (the “Land”), and the building and fixtures owned by Seller located on

the Land (the “Improvements”).  The Land

and Improvements are collectively referred to hereinafter as the “Property”.

B.            Seller desires to sell to Purchaser,

and Purchaser desires to purchase from Seller, the Property for the price and

in accordance with the terms and conditions set forth in this Agreement.

AGREEMENT

1.             Purchase and Sale of Property.  Seller agrees to sell the Property to

Purchaser, and Purchaser agrees to purchase the Property from Seller, on the

terms and conditions set forth in this Agreement.  Seller is not selling to Purchaser any of Seller’s equipment,

personal property or trade fixtures located on the Property, all of which may

be removed from the Property in Seller’s discretion, following Seller’s

delivery of possession of the Property, as more fully described in

Section 5.3, Section 8.6(d) and the attached Exhibit C.

2.             Total Purchase Price.

2.1           Purchase Price.  The purchase price for the Property is

Sixteen Million Three Hundred Fifty Thousand Dollars ($16,350,000) (“Purchase

Price”).

2.2           Earnest Money.  The initial earnest money deposit required

by this Agreement is One Hundred And Twenty-Five Thousand Dollars ($125,000)

(“Earnest Money”).  Within two (2)

business days after the Effective Date, Purchaser shall deposit the Earnest

Money into escrow with Fidelity National Title Company in Portland, Oregon

(“Title Company”).  The earnest money

will be refundable to Purchaser in the event that this transaction is

terminated by Purchaser by written notice to Seller within thirty (30) calendar

days after the Effective Date; otherwise, the Earnest Money will be applied or

forfeited in accordance with the terms of this Agreement.

(a)           If this Agreement is not terminated

by written notice from Purchaser by the end of the 30-day time period

referenced above, the Earnest Money shall become nonrefundable to Purchaser but

applicable to the Purchase Price.

 

1

 

(b)           In addition, on the date that is

thirty (30) days from the Effective Date, Purchaser shall make an additional

earnest money deposit into escrow with the Title Company in the amount of One

Hundred Twenty-Five Thousand Dollars ($125,000) (“First Additional

Deposit”).  The First Additional Deposit

shall be refundable to Purchaser in the event that this transaction is

terminated by Purchaser by written notice to Seller within the Due Diligence

Period (as defined and described below); otherwise, the First Additional

Deposit will be applied or forfeited in accordance with the terms of this

Agreement.

(c)           The Title Company shall deposit the

cash deposits of the Earnest Money and First Additional Deposit into an

interest-bearing account.  All interest

accrued on deposits shall be added to and become a part of the deposits and be

credited or applied as provided in this Agreement.

2.3           Payment.  The remainder of the Purchase Price shall be

paid in cash, in immediately available funds, by wire transfer or certified

check on the Closing Date (as defined in Section 8.1).

3.             Seller’s Title to the Property.  Within ten (10) days after the date of this

Agreement, Seller, at its sole expense, shall furnish to Purchaser a

preliminary title report (the “Preliminary Title Report”) from Title Company

showing the status of Seller’s title to the Property, together with full copies

of all exceptions, and a copy of any ALTA/ACSM or other survey in Seller’s

possession on the Property.  Purchaser

shall have ten (10) days after receipt of the Preliminary Title Report and

exceptions or ten (10) days after receipt of any supplemental or amended

report, within which to notify Seller in writing of Purchaser’s disapproval of

any exceptions shown in the report. 

With respect to any supplemental or amended report, Purchaser shall only

have the right to object to any additional exceptions contained therein.  If Purchaser approves the Preliminary Title

Report in writing or fails to notify Seller of its disapproval in writing

within such time period, then Purchaser shall be deemed to have approved the

Preliminary Title Report and this condition shall be satisfied.  In the event that Purchaser timely objects

to an exception to title, Seller shall be obligated to notify Purchaser within

ten (10) days after receipt of notice of such objection whether Seller, in its

sole and absolute discretion, is willing and able to remove such exception.  If Seller is willing and able to remove such

exception, Seller shall do so on or before the Closing Date.  If Seller is not willing or able to remove

the objected-to exception, Purchaser may, by written notice to Seller within

five (5) days after receipt of notice of Seller’s unwillingness or inability to

remove such exception, terminate this Agreement and be entitled to the return

of the Earnest Money.  If Purchaser

fails to give timely notice of its election to terminate this Agreement,

Purchaser shall be conclusively deemed to have elected to acquire the Property

subject to such exceptions.  All

exceptions described in the Preliminary Title Report and not removed or

required to be removed pursuant to this Section 3 shall be “Permitted

Exceptions” with respect to the Property.

4.             Contingencies to Agreement.

4.1           Purchaser’s Contingencies.

(a)           This Agreement shall be subject to

and contingent upon Purchaser’s satisfaction with (i) title to the

Property, (ii) the condition of the Property, and 

 

2

 

(iii) the

feasibility of purchasing the Property (individually a “Purchaser Contingency”

and collectively, the “Purchaser Contingencies”).

To facilitate Purchaser’s review of such matters,

within ten (10) days after the Effective Date, Seller shall deliver one copy of

the following documents to Purchaser with respect to the Property, to the

extent that they are in Seller’s possession (the “Due Diligence Materials”):  (a) the latest annual property tax

bills for the Property  (or Seller may elect to satisfy this

requirement by delivery of a Preliminary Title Report stating the property tax

account number and property tax amount for the Property); (b) any existing

written environmental studies or reports on the Property, and any written

materials concerning any environmental contamination or clean up on the

Property that took place during the period of Seller’s ownership; (c) the

architectural, mechanical, electrical, sprinkler, and civil drawings and

specifications and “as built” plans for the improvements on the Property;

(d) any soils reports, geological studies, and any seismic studies

concerning the Property; and (e) a copy of the certificate of occupancy

for the building(s), structures and other improvements on the Property.

 

(b)           Purchaser shall notify Seller in

writing of the failure of any Purchaser Contingency not later than forty-five

(45) days after the Effective Date (this time period is sometimes referred to

as the “Due

Diligence Period”). 

Purchaser’s failure to notify Seller in writing of the failure of any

Purchaser Contingency within such Due Diligence Period shall be conclusively

deemed a waiver of such Purchaser Contingency.

                                4.2           Seller’s Contingencies.  Seller’s obligation to close this

transaction shall be subject to the following: 

(a) Purchaser’s deposit of the Purchase Price in escrow (subject to

credit for the Earnest Money Deposit and any First Additional Deposit and any

interest earned thereon in the escrow account), and Purchaser’s delivery of

documents required in order to close this transaction as described in this

Agreement, and (b) approval by Seller’s member’s board of directors within

fifteen (15) days of the Effective Date (individually a “Seller Contingency” or

collectively “Seller Contingencies”). 

Seller’s failure to notify Purchaser of the failure of a Seller

Contingency shall be conclusively deemed a waiver of such Seller Contingency.

4.3           Failure of

Contingencies.

(a)           If either Seller or Purchaser timely

notifies the other of the failure of one or more of its Contingencies, then the

notifying party may with an additional five (5) days notice elect to terminate

this Agreement, in which event, Purchaser shall be entitled to a return of the

Earnest Money.  If Purchaser fails to

give notice of termination, then Purchaser shall be conclusively deemed to have

elected to acquire the Property.

(b)           In the event (i) this Agreement

is terminated by Purchaser or Seller in accordance with the terms hereof or

(ii) Purchaser fails to purchase the Property in accordance with the terms

hereof, Purchaser shall promptly deliver to Seller all written planning,

architectural, engineering, soils, environmental, market research, and related

materials in Purchaser’s possession or control pertaining to the Property (including,

without limitation, studies and reviews conducted or reports or documents

generated through Purchaser’s investigation of the Property); provided,

that any Confidential Information (defined in Section 10.16) of Purchaser

in such work product may be redacted before it is turned over to 

 

3

 

Seller.  Such turnover of work product is without

representation by Purchaser as to the accuracy or reliability of such materials

or any conclusions or recommendations made therein or Seller’s right to rely

thereon.

5.             Inspection and Access/Condition

of the Property.

5.1           Inspection and

Access.  After the Effective Date,

Purchaser and its representatives shall be entitled, after reasonable notice to

Seller and at reasonable times, to go upon the Property for the purpose of

making or conducting any inspection, investigation, test or survey reasonably

related to the purchase of the Property, provided only that: (a) all such

activity shall be without expense to Seller; (b) Purchaser shall not

interfere with the current business or other operation of or the use of the

Property by occupants thereof; and (c) Purchaser shall authorize only

experienced and trained employees, advisors and agents and independent contractors

(for this purpose, referred to as “Purchaser’s Agents”) to go upon the Property

for the purposes set forth above. 

Purchaser shall protect, defend and hold harmless Seller from any loss,

liability or damage to persons or property arising out of or related to Purchaser’s

and Purchaser’s Agents’ activities on the Property.  If Purchaser fails to purchase the Property, Purchaser shall

fully compensate Seller for any physical damage to the Property, or lien,

encumbrance or charge thereon, that is attributable to Purchaser’s or

Purchaser’s Agents’ activities with respect thereto.

5.2           Condition of the

Property.  Purchaser understands and

agrees that Purchaser is purchasing the Property based on its own due diligence

investigation of the Property, “AS IS” and “WITH ALL FAULTS”, WITHOUT ANY

REPRESENTATIONS OR WARRANTIES WHATSOEVER BY SELLER UNLESS EXPRESSLY SET FORTH

HEREIN.  Purchaser has had (or will be

given, within the Due Diligence Period) the opportunity to investigate and has

investigated the Property to determine the Property’s condition and suitability

for Purchaser’s intended use. 

Purchaser’s failure to notify Seller as to a failed Purchaser

Contingency shall constitute an absolute waiver of the Purchaser Contingency.

5.3           Specific

Description of Excluded Items and Removal Work.  The parties shall prepare, within the Due Diligence Period, a

detailed description of the items to be removed from the “Property” being sold

to Purchaser, any attached trade fixtures and items that Seller intends to

remove pursuant to Section 8.6(d), and the manner of removal and condition

of the Property that will remain after such removal, so that the description

can be followed by the workmen that will effect the removal. When such detailed

description is mutually approved, it will supersede the general description in

Section 8.6(d) and be attached as Exhibit C.

6.             Representations,

Warranties and Covenants.

6.1           Seller’s

Representations, Warranties and Covenants. 

Seller represents and warrants that the following is true as of the

Effective Date, and subject to Section 6.5, will be true as of the Closing

Date:

(a)           Subject to Section 4.2, Seller

has full power and authority to execute, deliver, and perform its obligations

under this Agreement.

 

4

 

(b)           To Seller’s knowledge, the buildings

on the Property and major mechanical and utility systems therein (such as

electrical, plumbing, heating, air conditioning, fire alarm, fire/safety and

other building systems used to provide utility services) and generators and

cooling towers on the Property are in good working order and condition, there

are no outstanding violations of applicable federal, state or local laws or

ordinances with respect to the Property, Seller has not been notified as to any

pending or threatened actions to condemn or take any portion of the Property by

eminent domain, no third party occupies or adversely possesses any portion of

the Property, and there is no litigation (pending  or threatened in writing to

Seller) with respect to the Property or Seller’s ability to consummate this

transaction.

(c)           Subject to Section 4.2 hereof,

Seller has the legal power, right and authority to enter into this Agreement

and to consummate the transaction contemplated hereby, and the transaction will

not violate or result in breach of any other obligations or restrictions of

Seller to any other party.

(d)           Seller is not a “foreign person” for

purposes of Section 1445 of the Internal Revenue Code.

(e)           Seller is the owner of the Property

in fee simple absolute.

(f)            Between the Effective Date and the

Closing Date, Seller shall continue to maintain the Property in the ordinary

course and substantially in accordance with the practices and procedures

customarily followed by Seller in the maintenance of the Property (but not to

make any capital expenditures) prior to the Effective Date, and will continue

to maintain its insurance on the Property.

(g)           None of the foregoing representations

and warranties contains any untrue statement of material fact or fails to state

any material fact necessary to make such representations and warranties not

misleading.

6.2           Seller’s

Knowledge.  Solely for purposes of

Section 6.1, the terms “known” or “Seller’s knowledge” means the current

actual knowledge, without independent investigation, of Barry Mayer, as Chief

Financial Officer of Seller’s member, Seller’s in-house counsel, and Seller’s

(or Seller’s member’s) on-site facilities manager.

6.3           Purchaser’s

Representations, Warranties and Covenants. 

Purchaser represents, warrants and covenants as follows:

(a)           Purchaser is an Oregon corporation,

duly organized, validly existing, and in good standing under the laws of the

State of Oregon and has full power and authority to execute, deliver, and

perform its obligations under this Agreement.

(b)           Purchaser is (or shall be, by the end

of the Due Diligence Period provided above) fully authorized to enter into and

perform its obligations under this Agreement and any other agreement or

instrument necessary to consummate the transaction contemplated by this

Agreement.  All requisite action has

been (or shall be, by the end of the Due Diligence 

 

5

 

Period) taken by

Purchaser in connection with the execution of this Agreement and the

consummation of the transaction contemplated hereby.

(c)           Neither Purchaser’s execution of this

Agreement or its performance of the obligations hereunder will violate, or

constitute a default under or breach of, any agreement between Purchaser and

any third party or by which Purchaser is bound.

(d)           There are no attachments, executions,

assignments for the benefit of creditors, or proceedings in bankruptcy or under

any other debtor relief laws contemplated by or pending or, to Purchaser’s

knowledge, threatened against Purchaser.

(e)           From the Effective Date Purchaser

will use commercially reasonable efforts to keep Seller informed at all times

as to the status of its investigations, inspections, permits and approvals

related to the Property.  Prior to the

Closing Date, Purchaser will not seek, obtain, or enter into any agreements

with governmental agencies that materially affect the Property and that would

be binding upon the Property if this transaction does not close without first

obtaining Seller’s prior written consent.

(f)            None of the foregoing

representations and warranties contains any untrue statement of material fact

or fails to state any material fact necessary to make such representations and

warranties not misleading.

6.4           Indemnity.  Each party (for purposes of this

Section 6, the “Indemnitor”) agrees to indemnify and hold harmless the

other party (for purposes of this Section 6, the “Indemnitee”) from and

against any and all claims, losses, liabilities, and expenses (including

reasonable attorneys’ fees) incurred by the Indemnitee and arising out of any

inaccuracy in or breach of any representation and warranty of the Indemnitor

contained in this Section 6.

6.5           Merger of

Representations and Warranties.  All

representations and warranties contained in this Section 6 shall be deemed

made as of the Effective Date and shall continue to be true until the Closing

Date; provided, that Seller will not have any obligation or liability to

Purchaser under this Agreement as to matters that are subsequently known to

Barry Mayer or Seller’s in-house counsel, or within Seller’s knowledge and that

were not known to Seller when the representation or warranty was made but were

subsequently discovered or made known to Seller, if Seller promptly notifies

Purchaser of the matter discovered that after such discovery or such knowledge

is obtained.  Such representations and

warranties shall merge in the Deed (hereinafter defined) and shall not survive

the Closing Date.

7.             Casualty;

Condemnation.

7.1           Casualty.

(a)           For purposes of this Section 7,

the following terms shall have the meanings indicated:

 

6

 

                                                “Major

Casualty” means a fire in or other casualty to the Improvements which causes

damage or injury to the Improvements and results in Restoration Costs in excess

of $1,000,000.

 

                                                “Restoration

Costs” means, as of any date with respect to any fire or other casualty

affecting the Improvements, the cost to be incurred, from and after such date,

to repair or restore (as reasonably determined by an architect or engineer

selected by Seller) the damage caused by such fire or other casualty.

 

(b)           If, between the Effective Date and

the Closing Date, there shall occur a fire or other casualty affecting the

Improvements which is not a Major Casualty, then Purchaser shall have no right

to terminate this Agreement and shall purchase the Property in its damaged

condition without reduction of or offset against the Purchase Price or any

other claim against Seller, so long as the following is satisfied:  (1) if the Property will not be fully

repaired prior to the Closing Date, Seller will promptly provide to Purchaser a

copy of any insurance policy covering the casualty and will use commercially

reasonable efforts to keep Purchaser informed about the status of and schedule

for the repair; (2) on the Closing Date, Seller shall assign to Purchaser

the right to receive any insurance proceeds payable to Seller as a result of

such fire or other casualty; provided, however, that Seller shall

be entitled to retain (to the extent theretofore paid to Seller), and shall not

be obligated to assign the right to receive (to the extent not theretofore paid

to Seller), an amount of such insurance proceeds equal to Seller’s reasonable

expenses, if any, incurred in collecting such proceeds and repairing such fire

or other casualty; (3) if the casualty is not fully restored prior to the

Closing Date, the amount of remaining insurance proceeds (plus any deductible

or other amount that Seller may deposit with Purchaser for this purpose) must

be reasonably sufficient to pay the remaining Restoration Costs.

(c)           If, between the Effective Date and

the Closing Date, there shall occur a fire or other casualty affecting the

Improvements which is a Major Casualty, then either party shall have the

option, to be exercised within fifteen (15) days after the date of such

casualty, to terminate this Agreement, in which case neither party hereto shall

have any further obligations or liabilities to the other, except that Purchaser

shall be entitled to the return of the Earnest Money and First Additional

Deposit.  If neither Seller nor

Purchaser shall elect to terminate this Agreement as provided in the preceding

sentence, then this Agreement shall remain in full force and effect and the

provisions of subclause (ii) above shall apply to such damage and any

insurance proceeds payable in connection therewith.

(d)           In no event shall Seller have any

obligation to repair any damage or destruction to the Property, but Seller

shall have the right to do so and utilize insurance proceeds for such purpose.

7.2           Condemnation.

(a)           If, between the Effective Date and

the Closing Date, any condemnation or eminent domain proceedings are initiated

which would result in the taking of all or any material portion of the Property,

then either Seller or Purchaser may elect to terminate this Agreement by giving

written notice of its election to the other party within fifteen (15) days 

 

7

 

after receiving notice of

such prospective taking, in which case neither party hereto shall have any

further obligations or liabilities to the other, except that Purchaser shall be

entitled to the return of the Earnest Money and First Additional Deposit.  A “material portion of the Property” shall

be deemed taken if (1) the value of the portion of the Property taken

exceeds thirty three and one-third percent (33 1/3%) of the Purchase Price, or

(2) the portion taken exceeds fifty percent (50%) of the total square

footage of the improvements on the Property. 

The parties shall negotiate in good faith with respect to any such value

determination under subparagraph (1) above or, if they are unable to reach

agreement within ten (10) business days after both parties receive notice of

the condemnation (or a threat thereof), such value determination shall be made

by an independent MAI appraiser with at least five (5) years experience in

valuing commercial real property in the Washington County area who is selected

by mutual agreement of the parties or, if they are unable to reach agreement

within five (5) business days after expiration of the foregoing ten-day

business period, by the presiding judge of the Washington County Circuit Court,

upon application by either party.  The

determination of value by such an appraiser shall be binding upon the

parties.  If neither party so elects to

terminate this Agreement, then the parties hereto shall proceed to the closing

without reduction of or offset against the Purchase Price and Purchaser shall

have no other claim against Seller.  In

such event, all of Seller’s right, title and interest in and to any

condemnation proceeds paid or payable in connection therewith shall be assigned

to Purchaser.  In no event shall Seller

have any obligation to repair or restore the Property or any portion thereof.

(b)           If,

between the Effective Date and the Closing Date, any condemnation or eminent

domain proceedings are initiated which would result in the taking of less than

a material portion of the Property (as defined above), then neither Seller nor

Purchaser may terminate this Agreement and the parties shall proceed to the

Closing without reduction of or offset against the Purchase Price and Purchaser

shall have no other claim against Seller. 

In such event, all of Seller’s right, title and interest in and to any

condemnation proceeds paid or payable in connection therewith shall be assigned

to Purchaser.  In no event shall Seller

have any obligation to repair or restore the Property or any portion thereof.

8.             Closing.

8.1           Closing Date.  This transaction shall be closed on or

before August 1, 2002, on a date mutually agreed to by the parties in good

faith (the “Closing Date”).

8.2           Manner and Place

of Closing.  This transaction will

be closed (the “Closing”) at Title Company’s main office located at 900 SW

Fifth Avenue, Portland, Oregon, or at such other place and by such other person

as the parties may mutually select. 

Closing shall take place in the manner and in accordance with the

provisions set forth in this Agreement.

8.3           Prorations,

Adjustments.  Real property taxes

for the current tax year and other governmental assessments shall be prorated

and adjusted between the parties by the Title Company, as of the Closing

Date.  The Washington County transfer

tax payable as a result of this transaction shall be divided equally between

the parties.  Each party will pay its

own legal and consulting fees.  If the

actual amount of property taxes for the year is not known on the Closing Date,

then the property taxes will be prorated on the basis that property taxes for

the current year will be equal to those for the last preceding year, but when

the actual amount of 

 

8

 

property taxes is

known, the parties will reconcile and adjust between themselves any difference

between the amount of Seller’s prorated share of such property taxes that the

escrow officer calculated compared to the amount that is Seller’s prorated

share based upon the actual property tax amount.

8.4           Events of Closing.  Provided Title Company has received the

Purchase Price and other sums to be paid by the parties pursuant to the

provisions hereof and is in a position to cause the title insurance policy to

be issued as described below, this transaction will be closed in escrow on the

Closing Date as follows:

(a)           Title Company will perform the

prorations and adjustments as described in Section 8.3 above, and the

parties shall be charged and credited accordingly.  Proration of utility charges and rents, if any, shall be apportioned

between the parties outside of escrow as of the Closing Date, within thirty

(30) days following the Closing Date. 

If, as a result of any such post-closing proration, either party owes

any amount to the other, such amount shall be paid within ten (10) days after

the effective date of a written notice setting forth the amount owing.  Any such amount not paid when due shall bear

interest at the rate of fifteen percent (15%) per annum from the Closing Date

to the date of payment.

(b)           Seller shall convey the Property to

Purchaser by Statutory Special Warranty Deed (the “Deed”), subject only to the

Permitted Exceptions and any encumbrances resulting from Purchaser’s activities

on the Property;

(c)           Title Company will deliver its letter

committing to issue the policy of title insurance described in Section 8.5

below, upon recordation of the closing documents.  The title insurance premium for an ALTA standard owner’s policy

will be charged to Seller;

(d)           Title Company will record the Deed

from Seller to Purchaser at Purchaser’s expense; and

(e)           Title Company’s escrow fees shall be

divided equally between the parties.

If required by the

Title Company or desired by the parties, each party will provide escrow

instructions to the escrow officer at Title Company that are consistent with

the terms of this Agreement and authorize the escrow officer to close this

transaction.  In the absence of such

instructions, this Agreement will constitute a party’s escrow instructions.

8.5           Title Insurance.  As soon as possible after the Closing Date,

Title Company shall furnish Purchaser with an ALTA standard owner’s policy of

title insurance in the amount of the Purchase Price, subject only to Title

Company’s standard printed exceptions, the Permitted Exceptions, and any

encumbrances resulting from Purchaser’s activities on the Property.  The cost of such policy shall be paid by

Seller.  Purchaser may request from the

Title Company endorsements or extended coverage which may be provided by Title

Company at Purchaser’s expense (but Seller’s only obligation with respect

thereto will be to sign an ALTA affidavit, if required by Title Company for

issuance of extended coverage).

 

9

 

8.6           Possession.

(a)           Seller shall deliver vacant

possession (except as described in Sections 8.6(b) and (c) below) of the

Property to Purchaser on the Closing Date. 

Purchaser agrees to defend, indemnify and hold Seller harmless from any

claim, loss or liability arising out of Purchaser’s possession or use of the

Property or conduct with respect to the Property after the Closing Date.  In the event that any litigation or

proceeding is brought against Seller arising out of or in any way connected

with any of the above event or claims, Purchaser, upon written request from Seller,

agrees to vigorously resist and defend such actions or proceedings.

(b)           Notwithstanding the foregoing, Seller

shall have the right, at no cost or expense whatsoever to Seller, to continue

occupying that portion of the Property described on Exhibit B through

and including October 1, 2002 (the “Training Room Space”).  Without limiting the generality of the

foregoing, Seller shall not be required to pay any rent, additional rent,

taxes, insurance or utilities on the Training Room Space.

(c)           In addition, notwithstanding the

foregoing, Purchaser acknowledges and agrees that Seller is utilizing

good-faith, commercially-reasonable efforts to locate substitute office space

for all of Seller’s employees located on the Property.  In the event that Seller is unable to do so

on or before the Closing Date, Seller, upon written notice to Purchaser given

not later than three (3) business days prior to the Closing Date, shall have

the right to continue occupying all or any portion of the existing office space

or alternate equivalent space offered by Purchaser and reasonably acceptable to

Seller contained in the Property for a period not to exceed fourteen (14) days

following the Closing Date or August 15, whichever is later.  Seller shall specifically define the exact office

space that is needed by Seller after the Closing Date in Seller’s written

notice to Purchaser.  During any such

period of office space occupancy by Seller, Seller shall pay to Purchaser the

prorated amount of One Dollar ($1.00) per square foot, full service, rent for

any such office space on a gross basis (without chargeback to Seller for

maintenance, insurance, taxes or other Building operational expense).  Such rent will be paid at the Closing Date

for such time period (and will be adjusted and rebated if Seller surrenders the

space prior to the end of the expected time period for such occupancy).

(d)           Upon delivery of possession pursuant

to this Section 8.6, Seller may remove its personal property, equipment

and unattached trade fixtures from the Property and will remove the attached

trade fixtures referenced in Section 5.3 and Exhibit C, in accordance

with the detailed description that the parties approved of attached items to be

removed, manner of removal and condition of the property as referenced in

Section 5.3.  Except as may

otherwise be agreed on such detailed description, Seller shall not be required

to repair any damage resulting from such removal; however, Seller shall leave

the Property in an orderly condition and will cause its workmen to follow the

detailed description for removal of attached items that the parties approved

and will use commercially reasonable efforts to minimize any damage to the

Property caused by such removal. 

Seller’s “trade fixtures” include, but are not limited to the items more

specifically described on the attached Exhibit C.  Any items not removed within ten (10)

business days after the Closing Date will be conclusively deemed abandoned by

Seller and may be utilized or disposed of by Purchaser, at its option.

 

10

 

(e)           To the extent that Seller occupies

any portion of the Property after the Closing Date, Seller will:  (a) provide evidence that it is

maintaining a commercial general liability insurance policy with a contractual

liability endorsement covering Seller’s indemnification obligations under this

subparagraph); (b) co-operate with Purchaser in signing any estoppel,

subordination and attornment agreement, or other agreements reasonably required

by Purchaser’s lender or sale-leaseback party that may be financing or funding

the purchase of the Property. Seller will defend, indemnify and hold Purchaser

harmless from any claim, loss or liability solely related to Seller’s

possession or use of the Property after the Closing Date. In the event that any

litigation or proceeding is brought against Purchaser arising out of or in any

way connected with any of the above event or claims, Seller, upon written

request from Purchaser, agrees to vigorously resist and defend such actions or

proceedings.

9.             Default.  In the event the Purchaser Contingencies and

Seller Contingencies set forth in Section 4 hereof have not been timely

objected to, and either party fails to close the transaction contemplated in

this Agreement, then the nondefaulting party may seek to specifically enforce

the obligations of the other pursuant to this Agreement.  In the event of Purchaser’s default, then

Seller may retain the Earnest Money and First Additional Deposit as liquidated

damages for Purchaser’s breach of this Agreement; provided, however, that such

limitation of remedies shall not apply to Purchaser’s indemnity agreement set

forth in this Agreement.  Purchaser

recognizes that the Property will be removed from the market prior to the

Closing Date, and acknowledges that if it fails to purchase the Property and

close the transaction on the Closing Date for any reason other than failure of

a Purchaser Contingency or a breach by Seller of its obligations hereunder,

Seller shall be entitled to compensation for the detriment resulting from the

removal of the Property from the market. 

The parties hereto agree that the damages that Seller would sustain as a

result of such breach may be substantial but would be extremely difficult and

impracticable to ascertain.  Therefore,

both parties acknowledge and agree that Seller’s retention of the Earnest Money

and First Additional Deposit is a reasonable estimate of Seller’s damages,

considering all of the circumstances existing on the date of this Agreement,

including the relationship of sums to the range of harm to Seller that

reasonably could be anticipated and the anticipation that proof of actual

damages would be impracticable or extremely difficult.  In the event that Purchaser is not in

default hereunder and has performed all of its obligations and Seller

nevertheless fails or refuses to perform its obligations hereunder, then

Purchaser, in such event, may elect either (a) to terminate this Agreement

by giving Seller notice thereof and obtain the return of the Earnest Money and

First Additional Deposit or (b) tender performance of the obligations of

Purchaser under this Agreement and seek to specifically enforce the obligations

of Seller to convey the Property to Purchaser.

10.           General

Provisions.

10.1         Time of Essence.  Except as otherwise specifically provided in

this Agreement, time is of the essence of each and every provision of this

Agreement.

10.2         Binding Effect.  This Agreement shall be binding upon and

inure to the benefit of the parties, and their respective heirs, personal

representatives, successors, and assigns, as permitted.

 

11

 

10.3           Notices.  Notices under this Agreement shall be in

writing and shall be effective when actually delivered.  If mailed, a notice shall be deemed

effective on the second business day after deposited as registered or certified

mail, postage prepaid, directed to the other party at the addresses shown

below.  Either party may change its address

for notice by written notice to the other. 

A notice may also be: (a) sent by overnight delivery using a

nationally recognized overnight courier, in which case it shall be deemed

delivered one (1) business day after deposit with such courier, (b) sent

by facsimile to a party, in which case notice shall be deemed delivered upon

transmission of such notice to the appropriate facsimile number that the party

may provide for this purpose, so long as the transmitting facsimile

machine registers a confirmation receipt and such receipt shows that the

transmission was received during regular business hours at the recipient’s

address (or if the transmission receipt shows delivery after such business

hours, then the notice sent by facsimile will be deemed to be effective on the

next Business Day of the recipient). 

Copies of notices are for informational purposes only and a failure to

give or receive copies of any notice shall not be deemed a failure to give

notice.  The parties’ initial contact

information and addresses for notices are as follows:

 

	

  IF TO SELLER:

  	

   

  	

  Tokyo Electron Oregon, LLC

  c/o Zoltan Papp

  2400 Grove Blvd.

  Austin, TX 78741

  Facsimile No.:  512-424-1030

  
	

   

  	

   

  	

   

  
	

  With a copy to:

  	

   

  	

  Davis Wright Tremaine LLP

  1300 SW Fifth Avenue, Suite 2300

  Portland, OR 97201

  ATTN: Coni S. Rathbone

  Facsimile No.:  503-778-5299

  
	

   

  	

   

  	

   

  
	

  IF TO PURCHASER:

  	

   

  	

  FEI Company, Inc.

  7451 NW Evergreen Parkway

  Hillsboro, Oregon 97124-5830

  Attention: Steven Loughlin or Brad Thies

  Facsimile No.:  503-640-7570

  
	

   

  	

   

  	

   

  
	

  With a copy to:

  	

   

  	

  Stoel Rives LLP

  900 SW Fifth Avenue, Suite 2600

  Portland, OR 97204-1268

  Attention: David W. Green

  Facsimile No.:  503-220-2480

  

 

12

 

10.4         Waiver.  Failure of either party at any time to

require performance of any provision of this Agreement shall not limit the parties’

rights to enforce the provision.  Waiver

of any breach of any provision shall not be a waiver of any succeeding breach

of the provision or a waiver of the provision itself or any other provision.

10.5         Attorneys’ Fees.  In the event suit or action is instituted to

interpret or enforce the terms of this Agreement, the prevailing party shall be

entitled to recover from the other party such sums as the court may adjudge

reasonable as attorney’s fees at trial, on any appeal, and on a petition for

review, in addition to all other sums provided by law.

10.6         Prior Agreements.  This Agreement supersedes and replaces all

written and oral agreements previously made or existing between the parties.

10.7         Applicable Law.  This Agreement shall be construed, applied

and enforced in accordance with the laws of the State of Oregon, with venue in

Washington County, Oregon.

10.8         Brokers.  Purchaser has engaged Integrated Commercial

as its broker in connection with this transaction, and will be responsible for

causing its commission to be paid on the Closing Date by the escrow officer.

Seller has not employed a real estate broker in this transaction.  Each party shall indemnify and hold the

other party harmless from any liability, loss or expense arising out of any

claim by any third party claiming through such party (except that Purchaser is

responsible for paying its broker, as identified above) for a commission or

other fee payable pursuant to any agreement for services rendered to or on

behalf of the indemnifying party in connection with this sale, arising out of

the actual or purported act of such party.

10.9         Changes in Writing.  This Agreement and any of its terms may only

be changed, waived, discharged or terminated by a written instrument signed by

the party against whom enforcement of the change, waiver, discharge or

termination is sought.

10.10       Statutory

Disclaimer.  THE PROPERTY DESCRIBED

IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT PROTECTING

STRUCTURES.  THE PROPERTY IS SUBJECT TO

LAND USE LAWS AND REGULATIONS, WHICH, IN FARM OR FOREST ZONES, MAY NOT

AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND WHICH LIMIT LAWSUITS

AGAINST FARMING OR FOREST PRACTICES AS DEFINED IN ORS 30.930 IN ALL ZONES.  BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT,

THE PERSON ACQUIRING FEE TITLE TO THE PROPERTY SHOULD CHECK WITH THE

APPROPRIATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY APPROVED USES AND

EXISTENCE OF FIRE PROTECTION FOR STRUCTURES.

10.11       Construction.  This Agreement shall be interpreted

according to its plain and clear meaning, and shall not be construed for or

against either party because of the origin of the subject provision.

10.12       Severability.  In the event any portion of this Agreement

is adjudged void or unenforceable by a court of competent jurisdiction, such

finding shall not render the remainder of this Agreement void or unenforceable.

 

13

 

10.13       Limitations on

Assignment by Purchaser.  Prior to

the Closing Date, Purchaser’s interest in this Agreement and/or the Property

shall not be assigned, subcontracted, or otherwise transferred voluntarily or

involuntarily, without the prior written consent of Seller.  Any attempt at assignment or transfer in

violation of this provision shall be void and of no force or effect with

respect to Seller or any transferee. 

This paragraph will not apply to any transfers by operation of law as a

result of any change in ownership of Purchaser, will not restrict transfers of

the Property or Purchaser’s interest after the Closing Date, and will not

restrict Purchaser’s right to use a sale-leaseback party to acquire title at

the Closing Date, but Purchaser will be solely responsible for arranging any

such transaction.  This Agreement is not

contingent or conditioned upon Purchaser’s ability to arrange any

sale-leaseback transaction or financing for the acquisition.

10.14       Third Party Benefit.  Seller and Purchaser are the only parties to

this Agreement and as such are the only parties entitled to enforce its

terms.  Nothing in this Agreement gives

or shall be construed to give or provide any benefit, direct or indirect, or

otherwise to third parties.

10.15       Integration.  This Agreement contains the entire agreement

and understanding of the parties with respect to the purchase and sale of the

Property and supersedes all prior and contemporaneous agreements between them

with respect thereto.

10.16       Confidentiality and

Nondisclosure.

(a)           Information that is not in the public

domain and is disclosed under this Agreement, including the content of this

Agreement, shall be considered confidential information.

(b)           Prior to the Closing, the parties

hereto shall keep the terms of this Agreement confidential and shall not now or

hereafter divulge these terms to any third party except in any press release

that may be approved in writing by both parties and to the Title Company for

purposes of performing its obligations under this Agreement, and except as

follows: (i) with the prior written consent of the other party;

(ii) as otherwise may be required by law or legal process, including to

legal and financial advisors in their capacity of advising a party in such

matters; (iii) during the course of litigation, so long as the disclosure

of such terms and conditions are restricted in the same manner as is the

confidential information of other litigating parties; (iv) to a party’s

officers, directors, employees, agents, affiliates and representatives and to

its legal counsel, accountants, engineers, consultants and other professionals

in connection with the review, evaluation, negotiation, and closing of this

transaction; (v) by Purchaser, in confidence, to any bank and financing or

funding sources and their advisors solely in connection with the obtaining of

financing or funding to finance this transaction; provided that, in (i)

through (iv) above, the disclosing party shall (1) use all efforts to

minimize the disclosure to third parties; and (2) provide the other party

with at least ten (10) days prior written notice of any intended disclosure that

results from a third party request for the terms of this Agreement or any

Confidential Information (as described below) that may be in its possession, in

which event the party to whom the request is made shall reasonably cooperate

(at no out-of-pocket expense to it) on any action by the other party to

preserve the confidentiality of such terms or Confidential Information (e.g.,

and not in limitation, to return any such Confidential Information to Seller so

it 

 

14

 

is no longer in

Purchaser’s possession).  The parties

agree that the Purchase Price shall be Confidential Information and shall not

be disclosed prior to the Closing Date without consent of both parties, except

as may be necessary to parties to whom disclosure may be made as provided in

subparagraphs (ii) through (v) above.

(c)           During the course of this Agreement,

each of Purchaser and Seller may have or may be provided access to confidential

information and materials of the other. 

Each party agrees that it will maintain the confidentiality of all such

confidential information with at least the same degree of care that it uses to

protect its own confidential and proprietary information, but no less than a

reasonable degree of care under the circumstances. Neither party shall disclose

any of such confidential information to its agents, affiliates or to any third

parties except to its agents or affiliates who have a need to know and who

agree to abide by nondisclosure terms at least as comprehensive as those set

forth herein.  Neither party will make

any copies of the confidential information received from the other except as

necessary for its agents or affiliates with a need to know. Any such

confidential information shall be stamped, labeled or otherwise identified as

such at the time it is disclosed to the other party (“Confidential Information”).  Any copies which are made will be identified

as belonging to the party disclosing such Confidential Information and marked

“Confidential,” “Proprietary,” or with a similar legend.

10.17       Counterparts;

Telecopy. This Agreement may be executed by any of the parties on the same

signature pages or on counterparts of the same signature page.  Signatures by telecopy shall be binding as

originals.  This Agreement may be

executed in any number of counterparts, all of which together shall constitute

one and the same agreement.

10.18       No Joint Venture.  The relationship between Seller and

Purchaser shall be that of seller and purchaser, and nothing herein shall be

construed as creating a joint venture, partnership, or similar relationship

between the parties.

10.19       Further Instruments.  Each party agrees to execute such further

instruments as may be reasonably required to consummate the transactions

contemplated by this Agreement, so long as the terms thereof are fully

consistent with the terms of this Agreement.

10.20       Interpretation.  Both Seller and Purchaser have been

represented by competent counsel in connection with the negotiation of this

Agreement and no cannon of interpretation shall be applied so as to construe

provisions against the party preparing the initial or subsequent drafts of this

Agreement.

 

15

 

This Agreement has

been executed in duplicate as of the Effective Date. 

	

  SELLER: :

  	

  PURCHASER

  
	

   

  	

   

  
	

  TOKYO ELECTRON OREGON,

  LLC

  	

  FEI COMPANY

  
	

   

  	

   

  
	

  By: Its member Tokyo

  Electron America, Inc.

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  Barry R. Mayer

  	

  By:

  	

  /s/ Stephen F. Loughlin

  
	

   

  	

  Name:

  	

  Barry R. Mayer

  	

  Name:

  	

  Stephen F. Loughlin

  
	

   

  	

  Its:

  	

  Sr. Vice President and

  Chief Financial Officer

  	

  Its

  	

  Chief Financial Officer

  

 

16

 

EXHIBIT A

LEGAL DESCRIPTION OF PROPERTY

A portion of Lot 3, “Dawson Creek Corporate Park,” a plat of record in

the Northeast and Southeast quarters of Section 28, Township 1 North, Range 2

West, Willamette Meridian, City of Hillsboro, Washington County, Oregon, said

portion being more particularly described as follows:

 

Beginning at a 5/8 inch iron rod on the Northerly boundary of said Lot

3, which iron rod bears North 51°50’42” West 1323.40 feet from the Southeast

corner of said lot; thence running South 11°43’21” West 21.43 feet; thence

North 78°16’39” West 55.31 feet; thence 37.99 feet along the arc of a 39.00

foot radius curve to the left (the long chord of which bears South 73°49’02”

West 36.51 feet); thence South 45°54’44” West 57.51 feet; thence 40.90 feet

along the arc of a 127.00 foot radius curve to the right (the long chord of

which bears South 55°08’19” West 40.73 feet); thence 59.57 feet along the arc

of a 44.99 foot radius curve to the left (the long chord of which bears South

20°03’30” West 62.84 feet); thence South 24°02’26” East 16.16 feet; thence

South 66°48’45” East 9.77 feet; thence South 18°09’59” East 21.57 feet; thence

South 26°49’16” West 10.29 feet; thence 82.06 feet along the arc of a 197.50

foot radius non-tangent curve to the right (the long chord of which bears South

09°25’55 East 81.47 feet); thence 83.73 feet along the arc of a 75.00 foot

radius curve to the right (the long chord of which bears South 34°27’09” West

79.45 feet); thence 51.15 feet along the arc of a 55.00 foot radius curve to

the left (the long chord of which bears South 39°47’39” West 49.32 feet);

thence South 71°58’54” East 30.21 feet; thence 31.52 feet along the arc of a

19.97 foot radius curve to the right (the long chord of which bears South

42°45’49” East 28.35 feet); thence South 18°27’16” West 20.41 feet; thence

South 42°16’14” West 56.77 feet; thence 54.06 feet along the arc of a 50.97

foot radius non-tangent curve to the left (the long chord of which bears South

11°30’26” West 51.56 feet); thence 133.02 feet along the arc of a 120.00 foot

radius curve to the right (the long chord of which bears South 12°52’54” West

126.31 feet); thence South 44°38’12” West 32.33 feet; thence 130.88 feet along

the arc of a 133.79 foot radius curve to the left (the long chord of which

bears South 16°47’04” West 125.01 feet); thence South 11°04’03” East 10.58

feet; thence South 63°13’51” East 9.98 feet; thence South 11°39’35” East 24.98

feet; thence South 40°28’48” West 13.31 feet; thence 124.08 feet along the arc

of a 118.66 foot radius non-tangent curve to the right (the long chord of which

bears South 30°09’32” West 118.51 feet); thence South 60°07’02” West 42.43

feet; thence 59.45 feet along the arc of a 190.38 foot radius curve to the left

(the long chord of which bears South 51°10’17” West 59.21 feet); thence 133.52

feet along the arc of an 85.00 foot radius curve to the right (the long chord

of which bears South 87°13’30” West 120.21 feet); thence North 47°46’30” West

22.67 feet; thence South 43°29’00” West 6.02 feet to a point on the West line

of said Lot 3; thence along the boundary of said Lot 3 to the point of

beginning, South 11°04’54” East 149.00 feet, North 78°55’06” East 316.70 feet,

North 78°49’02” East 1338.51 feet, North 00°33’36” West 705.36 feet, 83.25 feet

along the arc of a 53.00 foot radius curve to the left (the long chord of which

bears North 45°33’36” West 74.95 feet) South 89°26’24” West 250.00 feet, North

00°33’36” West 4.50 feet, South 89°26’24” West 420.68 feet, 317.93 feet along

the arc of a 768.12 foot radius curve to the right (the long chord of which

bears North 78°42’09” West 315.66 feet) to the point of beginning.

 

17

 

EXHIBIT B

DESCRIPTION OR DRAWING SHOWING THE TRAINING ROOM SPACE

ATTACHED TO ORIGINAL AGREEMENT

 

18

 

EXHIBIT C

 DESCRIPTION OF ATTACHED TRADE FIXTURES

AND EQUIPMENT TO BE REMOVED BY SELLER

The parties will prepare, reasonably approve and attach (as

part of this Exhibit) a detailed description of the personal property to be

retained by Purchaser and attached trade fixtures and equipment to be removed

from the Property, and manner of removal as described in Sections 1, 5.3

and 8.6(d) of this Agreement.

ATTACHED TO ORIGINAL AGREEMENT.

 

19

 

                                                     ADDENDUM

TO PURCHASE AND SALE AGREEMENT

 

                This Addendum to Purchase and

Sale Agreement is made and is effective as of this

       day of July, 2002, by and between Tokyo

Electron Oregon, LLC, as Seller, and FEI Company, as Purchaser.

 

RECITALS

 

                A.            Seller and Purchaser are parties to

a Purchase and Sale Agreement dated May 29, 2002 (the “Sale Agreement”), with

respect to the real property (the “Property”) located in Washington County,

Oregon, more particularly described in the Sale Agreement.

 

                B.            Seller and Purchaser have agreed

that $20,000.00 of the cost for seal coating the Property parking lot surface

will be borne by Seller.

 

AGREEMENT

 

                NOW, THEREFORE, for good and

valuable consideration, receipt and sufficiency of which are acknowledged, the

parties hereto agree as follows:

 

                1.             Reduction in Purchase Price.  Seller agrees to a reduction of the Purchase

Price as defined in the Sale Agreement from $16,350,000.00 to $16,330,000.00.

 

                2.             Sale Agreement Otherwise Not Affected.  Except to the extent expressly modified by

this Addendum, the Sale Agreement shall remain in full force and effect.

 

                IN WITNESS WHEREOF, the parties

hereto have executed and delivered this Addendum to Purchase and Sale Agreement

as of the day and year first above written.

 

	

  SELLER: :

  	

  PURCHASER

  
	

   

  	

   

  
	

  TOKYO ELECTRON OREGON,

  LLC

  	

  FEI COMPANY

  
	

   

  	

   

  
	

  By: Its member Tokyo Electron

  America, Inc.

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/  Barry R. Mayer

  	

  By:

  	

  /s/ Stephen F. Loughlin

  
	

   

  	

  Name:

  	

  Barry R. Mayer

  	

  Name:

  	

  Stephen F. Loughlin

  
	

   

  	

  Its:

  	

  Sr. Vice President and

  Chief Financial Officer

  	

  Its

  	

  Chief Financial Officer

  

 

20

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