EXHIBIT 10.1 (b)
SECOND AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT
THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Second
Amendment”), is made and dated as of March 30, 2007 among AMERICAN COLOR
GRAPHICS, INC., a New York corporation (together with any permitted successors
and assigns, the “Borrower”), the Guarantor signatory hereto, the financial
institutions identified on the signature pages hereof as Lenders (collectively,
the “Lenders”), and BANK OF AMERICA, N.A., as Agent (in such capacity, “Agent”).
RECITALS
     1. The Borrower, the Guarantor, the Lenders and the Agent are parties to
that certain Amended and Restated Credit Agreement, dated as of May 5, 2005, as
amended by that certain First Amendment to Amended and Restated Credit
Agreement, dated as of September 26, 2006, (as heretofore amended, the “Existing
Credit Agreement”).
     2. The Borrower, the Guarantor, the Lenders, and the Agent have agreed to
certain amendments to the Existing Credit Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereby agree as follows:
Part 1
Definitions
     Section 1.1. Certain Definitions. Unless otherwise defined herein or the
context otherwise requires, the following terms used in this Second Amendment
have the following meanings:
     “Amended Credit Agreement” means the Existing Credit Agreement as amended
hereby.
     “Second Amendment Effective Date” shall mean March 30, 2007, subject to the
Borrower’s satisfaction of, or the Lenders’ waiver of, each of the conditions
set forth in Part 4 of this Second Amendment.
     Section 1.2. Other Definitions. Unless otherwise defined herein or the
context otherwise requires, terms used in this Second Amendment have the
meanings provided in the Amended Credit Agreement.

 

--------------------------------------------------------------------------------

 

Part 2
Amendments to Existing Credit Agreement
     Effective on (and subject to the occurrence of) the Second Amendment
Effective Date, the Existing Credit Agreement is hereby amended in accordance
with this Part 2. Except as so amended, the Existing Credit Agreement shall
continue in full force and effect.
     Section 2.1. Amendment of Section 8.11. Section 8.11 of the Existing Credit
Agreement is amended by replacing the table for the First Lien Leverage Ratio
with the following revised table:

                      March 31   June 30   September 30   December 31 2006   N/A
  N/A   2.45 to 1.00   2.40 to 1.00 2007   2.55 to 1.00   2.55 to 1.00   2.15 to
1.00   2.15 to 1.00 2008   2.15 to 1.00   2.10 to 1.00   2.10 to 1.00   2.05 to
1.00 Thereafter   2.00 to 1.00   2.00 to 1.00   2.00 to 1.00   2.00 to 1.00

Part 3
Representations and Warranties
The Borrower represents and warrants to the Lenders and the Agent that, on and
as of the Second Amendment Effective Date, and after giving effect to this
Second Amendment:
     Section 3.1. Authority. The Borrower has all the necessary corporate power
to make, execute, deliver, and perform this Second Amendment, and this Second
Amendment constitutes the legal, valid and enforceable obligation of the
Borrower, enforceable against the Borrower in accordance with its terms.
     Section 3.2. No Legal Obstacle to Agreement. Neither the execution of this
Second Amendment, the making by the Borrower of any borrowings under the Amended
Credit Agreement, nor the performance of the Amended Credit Agreement has
constituted or resulted in or will constitute or result in a breach of the
provisions of any contract to which Borrower is a party, or the violation of any
law, judgment, decree or governmental order, rule or regulation applicable to
the Borrower, or result in the creation under any agreement or instrument of any
security interest, lien, charge, or encumbrance upon any of the assets of the
Borrower. No approval or authorization of any governmental authority is required
to permit the execution, delivery or performance by the Borrower of this Second
Amendment, the Amended Credit Agreement, or the transactions contemplated hereby
or thereby, or the making of any borrowings by the Borrower under the Amended
Credit Agreement.
     Section 3.3. Incorporation of Certain Representations. The representations
and warranties set forth in Article VI of the Amended Credit Agreement are true
and correct in all material respects on and as of the Second Amendment Effective
Date as though made on and as of the date hereof except for any representations
and warranties that expressly relate solely to an

 

--------------------------------------------------------------------------------

 

earlier date, which representations and warranties were true and accurate in all
material respects on and as of such earlier date.
     Section 3.4. Default. No Default or Event of Default has occurred and is
continuing under the Amended Credit Agreement.
Part 4
Conditions to Effectiveness
     This Second Amendment shall be and become effective on the Second Amendment
Effective Date provided that (i) each of the conditions set forth in this Part 4
shall have been satisfied (or satisfaction thereof has been waived by the Agent
and the Lenders) on or before April 10, 2007, and (ii) each Lender and the
Borrower shall have duly executed counterparts of this Second Amendment and
provided telecopied signature pages to the Agent. If the Borrower fails to
satisfy each of the conditions set forth in this Part 4 prior to 4:00 p.m.
(Eastern time) on April 10, 2007, then, at the option of the Agent and the
Lenders, upon notice to the Borrower, this Second Amendment shall be null and
void.
Section 4.1. Corporate Resolutions. The Agent shall have received a copy of the
resolution or resolutions passed by the Board of Directors of the Borrower,
certified by the Secretary or an Assistant Secretary of Borrower as being in
full force and effect on the date hereof, authorizing the amendments to the
Existing Credit Agreement herein provided for and the execution, delivery and
performance of this Second Amendment and any note or other instrument or
agreement required hereunder.
Section 4.2. Authorized Signatories. The Agent shall have received a
certificate, signed by the Secretary or an Assistant Secretary of the Borrower,
dated as of the date hereof, as to the incumbency of the person or persons
authorized to execute and deliver this Second Amendment and any instrument or
agreement required hereunder on behalf of the Borrower.
Part 5
Miscellaneous
     Section 5.1. References to the Credit Agreement. Each reference to the
Credit Agreement in the Amended Credit Agreement, the Notes or any of the other
instruments, agreements, certificates or other documents executed in connection
therewith (collectively, the “Loan Documents”), shall be deemed to be a
reference to the Amended Credit Agreement, and as the same may be further
amended, restated, supplemented or otherwise modified from time to time in
accordance therewith.
     Section 5.2. Expenses of Agent. Within seven (7) Business Days of the
receipt from the Agent of a detailed bill, the Borrower shall pay all reasonable
costs and expenses incurred by

 

--------------------------------------------------------------------------------

 

the Agent in connection with the preparation, negotiation and execution of the
Amended Credit Agreement, this Second Amendment and any other Loan Documents
executed pursuant hereto and any and all modifications, and supplements thereto,
including, without limitation, the reasonable costs and fees of the Agent’s
legal counsel and any taxes or expenses associated with or incurred in
connection with any instrument or agreement referred to herein or contemplated
hereby.
     Section 5.3. Benefits. This Second Amendment shall be binding upon, and
shall inure to the benefit of, the parties hereto and their respective
successors and assigns.
     Section 5.4. GOVERNING LAW. THIS SECOND AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO CONFLICTS OF LAW PRINCIPLES.
     Section 5.5. Effect. Except as expressly herein amended, the terms and
conditions of the Existing Credit Agreement shall remain in full force and
effect without amendment or modification, express or implied. The entering into
this Second Amendment by the Lenders shall not be construed or interpreted as an
agreement by the Lenders to enter into any future amendment or modification of
the Amended Credit Agreement or any of the other Loan Documents.
     Section 5.6. Counterparts; Telecopied Signatures. This Second Amendment may
be executed in any number of counterparts and by different parties to this
Second Amendment on separate counterparts, each of which when so executed shall
be deemed to be an original and shall be binding upon all parties, their
successors and assigns, and all of such counterparts taken together shall be
deemed to constitute one and the same instrument. Any signature delivered or
transmitted by a party by facsimile transmission shall be deemed to be an
original signature hereto.
     Section 5.7. Integration. This Second Amendment, together with the Loan
Documents, contains the entire and exclusive agreement of the parties hereto
with reference to the matters discussed herein and therein. This Second
Amendment supersedes all prior drafts and communications with respect thereto.
This Second Amendment may not be amended except in writing.
     Section 5.8. Further Assurances. The Borrower agrees to take such further
actions as the Agent shall reasonably request from time to time in connection
herewith to evidence or give effect to the amendments set forth herein or any of
the transactions contemplated hereby.
     Section 5.9. Section Titles. Section titles and references used in this
Second Amendment shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreements among the parties hereto.

 

--------------------------------------------------------------------------------

 

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

                  AMERICAN COLOR GRAPHICS, INC.    
 
           
 
  By:   /s/ Patrick W. Kellick    
 
     
 
   
 
  Name:   Patrick W. Kellick    
 
           
 
  Title:   SVP/CFO    
 
                ACG HOLDINGS, INC.    
 
           
 
  By:   /s/ Patrick W. Kellick    
 
     
 
   
 
  Name:   Patrick W. Kellick    
 
           
 
  Title:   SVP/CFO    

 

--------------------------------------------------------------------------------

 

                  BANK OF AMERICA, N.A.,    
 
      as Administrative Agent    
 
           
 
  By:   /s/ John A. Fulton    
 
     
 
   
 
  Name:   John A. Fulton    
 
           
 
  Title:   Vice President    

 

--------------------------------------------------------------------------------

 

              LENDERS:   BLUE RIDGE INVESTMENTS LLC    
 
           
 
  By:   /s/ Peter Sherman    
 
     
 
   
 
  Name:   Peter Sherman    
 
           
 
  Title:   Managing Director    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  FARALLON CAPITAL PARTNERS, L.P.         By: Farallon Partners,
L.L.C., Its General Partner
 
           
 
  By:   /s/ Derek C. Schrier    
 
     
 
   
 
  Name:   Derek C. Schrier    
 
           
 
  Title:   Managing Member    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  FARALLON CAPITAL INSTITUTIONAL PARTNERS, L.P.     By: Farallon
Partners, L.L.C., Its General Partner
 
           
 
  By:   /s/ Derek C. Schrier    
 
     
 
   
 
  Name:   Derek C. Schrier    
 
           
 
  Title:   Managing Member    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  FARALLON CAPITAL INSTITUTIONAL PARTNERS II, L.P.     By:
Farallon Partners, L.L.C., Its General Partner
 
           
 
  By:   /s/ Derek C. Schrier    
 
     
 
   
 
  Name:   Derek C. Schrier    
 
           
 
  Title:   Managing Member    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  FARALLON CAPITAL INSTITUTIONAL PARTNERS III, L.P.     By:
Farallon Partners, L.L.C., Its General Partner
 
           
 
  By:   /s/ Derek C. Schrier    
 
     
 
   
 
  Name:   Derek C. Schrier    
 
           
 
  Title:   Managing Member    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  TINICUM PARTNERS, L.P.     By: Farallon Partners, L.L.C., Its
General Partner
 
           
 
  By:   /s/ Derek C. Schrier    
 
     
 
   
 
  Name:   Derek C. Schrier    
 
           
 
  Title:   Managing Member    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  SPCP GROUP, L.L.C.
 
           
 
  By:   /s/ Richard Petrilli    
 
     
 
   
 
  Name:   Richard Petrilli    
 
           
 
  Title:   Authorized Signature    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  SPF CDO I, LTD
 
           
 
  By:   /s/ Richard Petrilli    
 
     
 
   
 
  Name:   Richard Petrilli    
 
           
 
  Title:   Authorized Signature    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  FIELD POINT I, LTD
 
           
 
  By:   /s/ Richard Petrilli    
 
     
 
   
 
  Name:   Richard Petrilli    
 
           
 
  Title:   Authorized Signatory    

[signatures continued]

 

--------------------------------------------------------------------------------

 

                  FIELD POINT II, LTD
 
           
 
  By:   /s/ Richard Petrilli    
 
     
 
   
 
  Name:   Richard Petrilli    
 
           
 
  Title:   Authorized Signatory    

[signatures ended]