EX-99.6 62 dex996.htm FORM OF EXCHANGE AGENT & DEPOSITARY AGREEMENT Form of Exchange Agent & Depositary Agreement

Exhibit 99.6

EXCHANGE AGENT & DEPOSITARY AGREEMENT

This Exchange Agent & Depositary Agreement (this “Agreement”) is entered into as of this      day of                     , 2007 by and between Valassis Communications, Inc., a Delaware corporation (the “Company”), and Wells Fargo Bank, N.A., a national banking association having its principal corporate trust offices in Minneapolis, Minnesota (hereinafter referred to as “Wells Fargo”).

WHEREAS, the Company is offering to exchange up to $540,000,000 aggregate principal amount of its outstanding, unregistered 8 1/4% Senior Notes due 2015 (the “Notes”) for a like principal amount of its registered 8 1/4% Senior Notes due 2015 (the “Exchange Notes”) upon the terms and subject to the conditions set forth in the Prospectus dated                          , 2007 (the “Prospectus”), and the related Letter of Transmittal, which together, as they may be supplemented or amended from time to time, constitute the “Offer.” All capitalized terms not defined herein shall have the meaning ascribed to such terms in the Offer.

WHEREAS, the Company hereby appoints Wells Fargo to act as the exchange agent and depositary (together, the “Exchange Agent”) in connection with the Offer. References hereinafter to “you” shall refer to Wells Fargo.

The Offer is expected to be commenced by the Company on or about                          , 2007. The Letter of Transmittal that accompanies the Prospectus (or in the case of book-entry securities, the Automated Tender Offer Program (“ATOP”) of DTC (as defined below)) is to be used by the holders of the Notes to accept the Offer. The Letter of Transmittal contains instructions with respect to the delivery of certificates for Notes tendered in connection therewith.

The Offer shall expire at 5:00 p.m., New York City time, on                          , 2007, or on such subsequent date or time to which the Company may extend the Offer (the “Expiration Date”). Subject to the terms and conditions of the Offer, the Company expressly reserves the right to extend the Offer from time to time and may extend the Offer by giving oral (promptly confirmed in writing) or written notice to you before 9:00 a.m., New York City time, on the business day following the previously scheduled Expiration Date.

The Company expressly reserves the right, in its sole discretion, to (1) delay accepting any validly tendered Notes, (2) not to accept for exchange any Notes not theretofore accepted for exchange, for any reason, including, without limitation, upon the occurrence of any of the conditions of the Offer specified in the Prospectus under the caption “The Exchange Offer–Conditions to the Exchange Offer,” or (3) terminate or amend the Offer, in each case, by giving oral or written notice (any such oral notice to be promptly confirmed in writing) of such delay, nonacceptance/termination or amendment to the Exchange Agent. Any such delay in acceptance, nonacceptance/termination or amendment will be followed as promptly as practicable by a public announcement thereof by the Company.

In carrying out your duties as Exchange Agent, you are to act in accordance with the following instructions:

1. You will perform such duties and only such duties as are specifically set forth in the section of the Prospectus captioned “The Exchange Offer” or as specifically set forth herein; provided, however, that in no way will your general duty to act in good faith and without gross negligence or willful misconduct be limited by the foregoing.

2. You will establish a book-entry account in respect of the Notes at The Depository Trust Company (“DTC”), in connection with the Offer within two business days after the date of the Prospectus, or, if you have already established an account with the book-entry transfer facility suitable for the Offer, you will identify such pre-existing account to be used in the Exchange Offer. Any financial institution that is a participant in the DTC system may make book-entry delivery of the Notes by causing DTC to transfer such Notes into the account maintained by you, pursuant to this section, in accordance with DTC’s procedures for such transfer, and you may affect a withdrawal of Notes through such account by book-entry movement. The account shall be maintained until all Notes tendered pursuant to the Offer shall have been either accepted or returned.

3. You are to examine each of the Letters of Transmittal and certificates for Notes (or confirmation of book-entry transfer into your account at DTC) and any other documents delivered or mailed to you by or for holders of the Notes to ascertain whether: (a) the Letters of Transmittal and any such other documents are duly executed and properly completed in accordance with instructions set forth therein and that the book-entry confirmations are in due and proper form and contain the information required to be set forth therein; (b) the Notes have otherwise been properly tendered; (c) Notes tendered in part are tendered in denominations of $1,000 and integral multiples thereof, and (d) holders have provided their tax identification numbers or required certifications. In each case where the Letter of Transmittal or any other document has been improperly completed or executed, or where book-entry confirmations are not in due and proper form or omit any required information, or any of the certificates for Notes are not in proper form for transfer or some other irregularity in connection with the acceptance of the Offer exists, you will endeavor to inform the presenters of the need for fulfillment of all requirements and to take any other action as may be reasonably necessary or advisable to cause such irregularity to be corrected. The Company has sole discretion to determine whether any tender is complete and valid and has the absolute right to reject any and all tenders determined by it not to be in proper form and to determine whether the acceptance of or the exchange of the Notes in respect thereof by it for such tenders would be unlawful.

4. With the approval of the Chief Executive Officer, the Chief Financial Officer, the General Counsel or any Vice President of the Company (such approval, if given orally, to be promptly confirmed in writing), or any other party designated in writing by such an officer of the Company, you are authorized to waive any irregularities in connection with any tender pursuant to the Offer. You are not otherwise authorized to waive any such irregularities.

Tenders of Notes may be made only as set forth in the section of the Prospectus captioned “The Exchange Offer—Procedures for Tendering” and Notes shall be considered properly tendered or delivered to you only when tendered in accordance with the procedures set forth therein.

5. Notwithstanding the provisions of Section 4 of this Agreement, Notes that the Chief Executive Officer, the Chief Financial Officer, the General Counsel or any Vice President of the Company shall approve as having been properly tendered shall be considered to be properly tendered (such approval, if given orally, shall be promptly confirmed in writing).

6. At the request of the Company or its counsel, you shall notify tendering holders of Notes in the event of any extension, termination or amendment of the Offer. In the event of any termination of the Offer, you shall promptly return all tendered Notes to the persons entitled thereto, at the request and expense of the Company.

7. You shall keep records of and advise the Company with respect to any Notes received subsequent to the Expiration Date and accept its instructions with respect to disposition of such Notes.

8. You shall accept tenders:

(a) in cases where the Notes are registered in two or more names only if signed by all named holders;

(b) in cases where the signing person (as indicated on the Letter of Transmittal) is acting in a fiduciary or a representative capacity only when proper evidence of his or her authority so to act is submitted; and

(c) from persons other than the registered holder of Notes, provided that customary transfer requirements, including payment of any applicable transfer taxes, are fulfilled.

You shall accept partial tenders of Notes (only to the extent that the partial tender is equal to $1,000 in aggregate principal amount or an integral multiple thereof) and deliver certificates for Notes to the registrar for split-up and return any untendered Notes to the holder (or such other person as may be designated in the Letter of Transmittal) as promptly as practicable after expiration or termination of the Offer.

 

2

9. Upon satisfaction or waiver of all of the conditions to the Offer, the Company will notify you (such notice, if given orally, to be promptly confirmed in writing) of its acceptance, promptly after the Expiration Date, of all Notes properly tendered indicating the aggregate principal amount of Notes accepted. You, on behalf of the Company, will exchange, in accordance with the terms hereof, accepted Notes for Exchange Notes and cause such Notes to be cancelled. Delivery of the Exchange Notes will be made on behalf of the Company by you at the rate of $1,000 principal amount of Exchange Notes for each $1,000 principal amount of Notes tendered promptly after notice (such notice if given orally, to be promptly confirmed in writing) of acceptance of such Notes by the Company; provided, however, that in all cases, Notes tendered pursuant to the Offer will be exchanged only after timely receipt by you of certificates for such Notes (or confirmation of book-entry transfer into your account at DTC), a properly completed and duly executed Letter of Transmittal (or manually signed facsimile thereof) with any required signature guarantees and any other required documents, or an agent’s message in lieu thereof. You shall issue Exchange Notes only in denominations of $1,000 or any integral multiple thereof.

10. Notes tendered pursuant to the Offer are irrevocable, except that, subject to the terms and upon the conditions set forth in the Prospectus and the Letter of Transmittal, Notes tendered pursuant to the Offer may be withdrawn at any time prior to the Expiration Date.

11. The Company shall not be required to exchange any Notes tendered if any of the conditions set forth in the Offer are not met. Notice of any decision by the Company not to exchange any Notes tendered shall be given (such notice, if given orally, to be promptly confirmed in writing) by the Company to you.

12. If, pursuant to the Offer, the Company does not accept for exchange all or part of the Notes tendered, you shall, promptly after the expiration or termination of the Offer, return those certificates for unaccepted Notes (or effect appropriate book-entry transfer), together with any related required documents and the Letters of Transmittal relating thereto that are in your possession, to the persons who deposited them (or effected such book-entry transfer).

13. All certificates for Exchange Notes, reissued Notes and unaccepted Notes shall be forwarded by (a) first-class mail, postage prepaid under a blanket surety bond protecting you and the Company from loss or liability arising out of the nonreceipt or nondelivery of such certificates or (b) by registered mail insured separately for the replacement value of each of such certificates.

14. You are not authorized to pay or offer to pay any concessions, commissions or solicitation fees to any broker, dealer, bank or other persons or to engage or utilize any person to solicit tenders.

15. As Exchange Agent hereunder you:

(a) shall not be liable for any action or omission to act unless the same constitutes your own gross negligence, willful misconduct or bad faith, and in no event shall you be liable to a securityholder, the Company or any third party for special, indirect or consequential damages, or lost profits, arising in connection with this Agreement;

(b) shall have no duties or obligations other than those specifically set forth in the Prospectus or as specifically set forth herein or as may be subsequently agreed to in writing between you and the Company; provided, however, that in no way will your general duty to act in good faith be limited by the foregoing;

(c) will be regarded as making no representations and having no responsibilities as to the validity, sufficiency, value or genuineness of any of the certificates or the Notes represented thereby deposited with you pursuant to the Offer, and will not be required to and will make no representation as to the validity, value or genuineness of the Offer;

(d) shall not be obligated to take any legal action hereunder which might in your reasonable judgment involve any expense or liability, unless you shall have been furnished with indemnity satisfactory to you;

 

3

(e) may conclusively rely on and shall be protected in acting in reliance upon any certificate, instrument, opinion, notice, letter, telegram or other document or security delivered to you and reasonably believed by you to be genuine and to have been signed or presented by the proper person or persons;

(f) may reasonably act upon any tender, statement, request, document, certificate, agreement or other instrument whatsoever not only as to its due execution and validity and effectiveness of its provisions, but also as to the truth and accuracy of any information contained therein, which you shall in good faith reasonably believe to be genuine or to have been signed or presented by the proper person or persons;

(g) may conclusively rely on and shall be protected in acting upon written or oral instructions from any authorized officer of the Company as set forth herein;

(h) may consult with counsel of your selection with respect to any questions relating to your duties and responsibilities and the reasonable written opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by you hereunder in good faith and in accordance with such written opinion of such counsel; and

(i) shall not advise any person tendering Notes pursuant to the Offer as to the wisdom of making such tender or as to the market value, or decline or appreciation in market value, of any security, including the Notes and Exchange Notes;

provided, however, that in no way will your general duty to act in good faith and without gross negligence or willful misconduct be limited by the foregoing.

16. You shall take such action as may from time to time be requested by the Company or its counsel (and such other action as you may deem appropriate) to furnish copies of the Prospectus, Letter of Transmittal and the Notice of Guaranteed Delivery (as described in the Prospectus), or such other forms as may be approved from time to time by the Company, to all persons requesting such documents and to accept and comply with telephone requests for information relating to the Offer, provided that such information shall relate only to the procedures for accepting (or withdrawing from) the Offer. All other requests for information relating to the Offer shall be directed to the Company, Attention: Barry P. Hoffman, Executive Vice President, General Counsel, and Secretary.

17. You are authorized to cooperate with and to furnish information to any organization (and its representatives) designated from time to time by the Company in the manner directed or authorized by the Company in connection with the Offer and any tenders thereunder.

18. You shall advise by e-mail and promptly thereafter confirm in writing or facsimile transmission Barry P. Hoffman, Executive Vice President, General Counsel, and Secretary of the Company (at the email address hoffmanb@valassis.com and the facsimile number (734) 591-4460) and Amy Leder, Esq., our outside counsel (at the email address aleder@mwe.com and the facsimile number (212) 547-5444) and such other person or persons as the Company may request, daily (and more frequently during the week immediately preceding the Expiration Date, if requested) up to and including the Expiration Date, as to the aggregate principal amount of Notes which have been tendered pursuant to the Offer and the items received by you pursuant to the Offer and this Agreement, separately reporting and giving cumulative totals as to items properly received and items improperly received. In addition, you also will inform, and cooperate in making available to, the Company, its counsel or any such other person or persons upon oral request made from time to time prior to the Expiration Date of such other information as they may reasonably request. Such cooperation shall include, without limitation, the granting by you to the Company and such persons as the Company may request of access to those persons on your staff who are responsible for receiving tenders, in order to ensure that immediately prior to the Expiration Date the Company shall have received information in sufficient detail to enable it to decide whether to extend the Offer. You shall then prepare a final list of all persons whose tenders were accepted, the aggregate principal amount of Notes tendered, the

 

4

amount accepted and the identity of any participating broker-dealers, and deliver such list to the Company promptly after the Expiration Date.

19. Letters of Transmittal and Notices of Guaranteed Delivery shall be stamped by you as to the date, and, after the expiration of the Offer, the time, of receipt thereof and shall be preserved by you for a period of time at least equal to the period of time you preserve other records pertaining to the transfer of securities, or one year, whichever is longer, and thereafter shall be delivered by you to the Company. You shall dispose of unused Letters of Transmittal and other surplus materials.

20. You hereby expressly waive any lien, encumbrance or right of set-off whatsoever that you may have with respect to funds deposited with you for the payment of transfer taxes by reasons of amounts, if any, borrowed by the Company, or any of its subsidiaries or affiliates pursuant to any loan, credit or other agreement with you or for compensation owed to you hereunder or under any other agreement.

21. For services rendered as Exchange Agent hereunder, you shall be entitled to such compensation as set forth on Schedule I attached hereto. The provisions of this section shall survive the termination of this Agreement.

22. You hereby acknowledge receipt of the Prospectus and the Letter of Transmittal. Any inconsistency between this Agreement, on the one hand, and the Prospectus and the Letter of Transmittal (as they may be amended from time to time), on the other hand, shall be resolved in favor of the latter two documents, except with respect to your duties, liabilities and indemnification as Exchange Agent, which shall be governed by this Agreement.

23. The Company covenants and agrees to indemnify and hold you harmless in your capacity as Exchange Agent hereunder against any and all loss, liability, cost or expense, including reasonable attorneys’ fees and reasonable expenses, arising out of or in connection with any act, omission, delay or refusal made by you in reliance upon any signature, endorsement, assignment, certificate, order, request, notice, instruction or other instrument or document reasonably believed by you to be valid, genuine and sufficient and in accepting any tender or effecting any transfer of Notes reasonably believed by you in good faith to be authorized, and in delaying or refusing in good faith to accept any tenders or effect any transfer of Notes; provided, however, that anything in this Agreement to the contrary notwithstanding, the Company shall not be liable for indemnification or otherwise for any loss, liability, cost or expense to the extent arising out of your gross negligence, willful misconduct or bad faith. In no case shall the Company be liable under this indemnity with respect to any claim against you unless the Company shall be notified by you, by letter or facsimile transmission (which is promptly confirmed by letter), of the written assertion of a claim against you or of any other action commenced against you, promptly after you shall have received any such written assertion or shall have been served with a summons in connection therewith. The Company shall be entitled to participate at its own expense in the defense of any such claim or other action and, if the Company so elects, the Company shall assume the defense of any such claim or other action. In the event that the Company shall assume the defense of any such suit, the Company shall not be liable for the fees and expenses of any counsel thereafter retained by you, so long as the Company shall retain counsel reasonably satisfactory to you to defend such suit, and so long as you have not determined, in your reasonable judgment, that a conflict of interest exists between you and the Company. You understand and agree that the Company shall not be liable under this section for the fees and expenses of more than one legal counsel for you. You agree that, without the prior written consent of the Company (which consent shall not be unreasonably withheld), you will not settle, compromise or consent to the entry of any judgment in respect of any pending or threatened claim, action or proceeding in respect of which indemnification could be sought in accordance with the indemnification provisions of this Agreement (whether or not you or the Company is an actual or potential party to such claim, action or proceeding), unless such settlement, compromise or consent includes an unconditional release of the Company and its directors, officers and controlling persons from all liability arising out of such claim, action or proceeding. The provisions of this section shall survive the termination of this Agreement.

 

5

24. You shall arrange to comply with all applicable withholding and tax reporting requirements under the tax laws of the United States, including those relating to missing Tax Identification Numbers, and shall file any appropriate reports with the Internal Revenue Service (e.g., 1099, 1099B, etc.) as directed in writing by the Company.

25. You shall deliver or cause to be delivered in a timely manner to each governmental authority to which any transfer taxes are payable in respect of the transfer of Notes to the Company, the Company’s payment in the amount of all transfer taxes so payable; provided, however, that you shall reimburse the Company for amounts refunded to you in respect of your payment of any such transfer taxes, at such time as such refund is received by you.

26. This Agreement and your appointment as Exchange Agent hereunder shall be construed and enforced in accordance with the laws of the State of New York applicable to agreements made and to be performed entirely within such state, and without regard to conflicts of laws principles, and shall inure to the benefit of, and the obligations created hereby shall be binding upon, the successors and assigns of each of the parties hereto.

27. This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same agreement.

28. In case any provision of this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

29. This Agreement shall not be deemed or construed to be modified, amended, rescinded, cancelled or waived, in whole or in part, except by a written instrument signed by a duly authorized representative of the party to be charged. This Agreement may not be modified orally.

30. Unless otherwise provided herein, all notices, requests and other communications to any party hereunder shall be in writing (including facsimile or similar writing) and shall be given to such party, addressed to it, at its address or telecopy number set forth below:

If to the Company:

Valassis Communications, Inc.

19975 Victor Parkway

Livonia, MI 48152

Attn: Barry P. Hoffman

Fax: (734) 591-4460

With a copy to:

Amy S. Leder, Esq.

McDermott Will & Emery LLP

340 Madison Avenue

New York, NY 10173-1922

Fax: (212) 547-5444

If to the Exchange Agent:

Wells Fargo Bank, N.A.

Corporate Trust Services

625 Marquette Avenue

MAC N9311-110

Minneapolis, MN 55479

Attn: Lynn Steiner

Fax: 612-667-9825

 

6

31. Unless terminated earlier by the parties hereto, this Agreement shall terminate 90 days following the Expiration Date. Notwithstanding the foregoing, Sections 19, 21, 23, 24, and 25 shall survive the termination of this Agreement. Upon any termination of this Agreement, you shall promptly deliver to the Company any certificates for Notes, Exchange Notes, funds or property then held by you as Exchange Agent under this Agreement.

32. This Agreement shall be binding and effective as of the date hereof.

 

7

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers, hereunto duly authorized, as of the day and year first above written.

 

Valassis Communications, Inc.
By:     
Name:   
Title:  

 

Wells Fargo Bank, N.A., as Exchange Agent and Depositary

By:     
Name:   
Title:  

 

 

 

(Signature page for Exchange Agent & Depositary Agreement)

 

8

Schedule I

COMPENSATION OF EXCHANGE AGENT:

 

9