Document:

registration_agreement.htm

    EXHIBIT
      10.2

    REGISTRATION
      RIGHTS AGREEMENT

    

    Registration
      Rights Agreement (the
“Agreement”),
      dated as of December 20, 2007, by and between EDGELINE HOLDINGS, INC., a corporation organized
      under the laws of State of Nevada, with its principal executive office at 1330
      Post Oak Blvd., Suite 1600, Houston, Texas 77056 (the “Company”), and
      Dutchess Private Equities Fund, Ltd., a Cayman Islands exempted company, with
      its principal office at 50 Commonwealth Avenue, Suite 2, Boston, MA 02116 (the
      “Holder”).

    

    Whereas, in
      connection with the
      Investment Agreement by and between the Company and the Investor of this date
      (the “Investment
      Agreement”), the Company has agreed to issue and sell to the Investor an
      indeterminate number of shares of the Company’s Common Stock, $.08 par value per
      share (the “Common
      Stock”), to be purchased pursuant to the terms and subject to the
      conditions set forth in the Investment Agreement; and

    

    Whereas, to
      induce the Investor
      to execute and deliver the Investment Agreement, the Company has agreed to
      provide certain registration rights under the Securities Act of 1933, as
      amended, and the rules and regulations thereunder, or any similar successor
      statute (collectively, the “1933 Act”), and
      applicable state securities laws, with respect to the shares of Common Stock
      issuable pursuant to the Investment Agreement.

    

    Now
      therefore, in consideration of the
      foregoing promises and the mutual covenants contained hereinafter and other
      good
      and valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Company and the Investor hereby agree as follows:

    

    

    

    

    

    

    Section
      1.  DEFINITIONS.

    

    As
      used
      in this Agreement, the following terms shall have the following meanings:

    

    “Execution
      Date” means
      the date of this Agreement set forth above.

    

    “Investor”
means
      Dutchess Private Equities Fund, Ltd., a Cayman Islands exempted company.

    

    “Person”
means
      a
      corporation, a limited liability company, an association, a partnership, an
      organization, a business, an individual, a governmental or political subdivision
      thereof or a governmental agency.

    

    “Potential
      Material
      Event” means any of the following: (i) the possession
      by the
      Company of material information not ripe for disclosure in the Registration
      Statement, which shall be evidenced by determinations in good faith by the
      Board
      of Directors of the Company that disclosure of such information in the
      Registration Statement would be detrimental to the business and affairs of
      the
      Company, or (ii) any
      material engagement or activity by the Company which would, in the good faith
      determination of the Board of Directors of the Company, be adversely affected
      by
      disclosure in the Registration Statement at such time, which determination
      shall
      be accompanied by a good faith determination by the Board of Directors of the
      Company that the Registration Statement would be materially misleading absent
      the inclusion of such information.

    

    “Principal
      Market”
shall mean The American Stock Exchange, National Association of Securities
      Dealer’s, Inc., Over-the-Counter electronic bulletin board, the Nasdaq National
      Market or The Nasdaq SmallCap Market whichever is the principal market on which
      the Common Stock of the Company is listed.

    

    “Register,”
“Registered,”
and
      “Registration”
refer to
      the Registration effected by preparing and filing one (1) or more
      Registration Statements in compliance with the 1933 Act and pursuant to Rule
      415
      under the 1933 Act or any successor rule providing for offering securities
      on a
      continuous basis (“Rule 415”), and the
      declaration or ordering of effectiveness of such Registration Statement(s)
      by
      the United States Securities and Exchange Commission (the “SEC”).

    

    
      
         

      

      
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    “Registrable
      Securities” means (i)
the shares
      of Common Stock issued or issuable pursuant to the Investment
      Agreement, and (ii) any
      shares of capital stock issued or issuable with respect to such shares of Common
      Stock, if any, as a result of any stock split, stock dividend, recapitalization,
      exchange or similar event or otherwise, which have not been (x) included in the
      Registration Statement that has been declared effective by the SEC, or (y) sold under circumstances
      meeting all of the applicable conditions of Rule 144 (or any similar provision
      then in force) under the 1933 Act.

    

    “Registration
      Statement” means the registration statement of the Company filed under
      the 1933 Act covering the Registrable Securities.

    

    All
      capitalized terms used in this Agreement and not otherwise defined herein shall
      have the same meaning ascribed to them as in the Investment Agreement.

    

    
      	
              Section
                2.  REGISTRATION.
                

            

    

    

    (a)  The
      Company
      shall, within forty-five (45) days of the date of this Agreement, file with
      the
      SEC the Registration Statement or Registration Statements (as is necessary)
      on
      Form SB-2 (or, if such form is unavailable for such a registration, on such
      other form as is available for such registration), covering the resale of all
      of
      the Registrable Securities, which Registration Statement(s) shall state that,
      in
      accordance with Rule 416 promulgated under the 1933 Act, such Registration
      Statement also covers such indeterminate number of additional shares of Common
      Stock as may become issuable upon stock splits, stock dividends or similar
      transactions.  The Company shall initially register for resale
      15,000,000 shares of Common Stock which would be issuable on the date preceding
      the filing of the Registration Statement based on the closing bid price of
      the
      Company’s Common Stock on such date and the amount reasonably calculated that
      represents Common Stock issuable to other parties as set forth in the Investment
      Agreement except to the extent that the SEC requires the share amount to be
      reduced as a condition of effectiveness.

    

    (b)  The
      Company
      shall use all commercially reasonable efforts to have the Registration
      Statement(s) declared effective by the SEC within ninety (90) calendar days
      after the Execution Date.

    

    (c)  The
      Company
      agrees not to include any other securities in the Registration Statement
      covering the Registrable Securities without Investor’s prior written consent
      which Investor may withhold in its sole discretion. Furthermore, the Company
      agrees that it will not file any other Registration Statement (excluding a
      registration statement on Form S-8) for other securities, until thirty calendar
      days after the Registration Statement for the Registrable Securities is declared
      effective by the SEC.

    

    
      	
              Section
                3.  RELATED
                OBLIGATIONS. 

            

    

    

    At
      such time as the Company is
      obligated to prepare and file the Registration Statement with the SEC pursuant
      to Section 2(a), the Company will effect the registration of the Registrable
      Securities in accordance with the intended method of disposition thereof and,
      with respect thereto, the Company shall have the following obligations:

    

    

    (a)  The
      Company
      shall use all commercially reasonable efforts to cause such Registration
      Statement relating to the Registrable Securities to become effective within
      ninety (90) days after the Execution Date and shall keep such Registration
      Statement effective until the earlier to occur of  the date on which
(A) the Investor shall
      have sold all the Registrable Securities; or (B) the Investor has
      no right
      to acquire any additional shares of Common Stock under the Investment Agreement
      (the “Registration
      Period”).  The Registration Statement (including any amendments
      or supplements thereto and prospectuses contained therein) shall not contain
      any
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein, or necessary to make the statements therein, in light of
      the
      circumstances in which they were made, not misleading. The Company shall use
      all
      commercially reasonable efforts to respond to all SEC comments within seven
      (7)
      business days from receipt of such comments by the Company. The Company shall
      use all commercially reasonable efforts to cause the Registration Statement
      relating to the Registrable Securities to become effective no later than
      five  (5)  business days after notice from the SEC that the
      Registration Statement may be declared effective.  The Investor agrees
      to provide all information which it is required by law to provide to the
      Company, including the intended method of disposition of the Registrable
      Securities, and the Company’s obligations set forth above shall be conditioned
      on the receipt of such information.

    

    
      
         

      

      
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    (b)  The
      Company
      shall prepare and file with the SEC such amendments (including post-effective
      amendments) and supplements to the Registration Statement and the prospectus
      used in connection with such Registration Statement, which prospectus is to
      be
      filed pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary
      to keep such Registration Statement effective during the Registration Period,
      and, during such period, comply with the provisions of the 1933 Act with respect
      to the disposition of all Registrable Securities of the Company covered by
      such
      Registration Statement until such time as all of such Registrable Securities
      shall have been disposed of in accordance with the intended methods of
      disposition by the Investor thereof as set forth in such Registration
      Statement.  In the event the number of shares of Common Stock covered
      by the Registration Statement filed pursuant to this Agreement is at any time
      insufficient to cover all of the Registrable Securities, the Company shall
      amend
      such Registration Statement, or file a new Registration Statement (on the short
      form available therefor, if applicable), or both, so as to cover all of the
      Registrable Securities, in each case, as soon as practicable, but in any event
      within thirty (30) calendar days after the necessity therefor arises (based
      on
      the then Purchase Price of the Common Stock and other relevant factors on which
      the Company reasonably elects to rely), assuming the Company has sufficient
      authorized shares at that time, and if it does not, within thirty (30) calendar
      days after such shares are authorized.  The Company shall use
      commercially reasonable efforts to cause such amendment and/or new Registration
      Statement to become effective as soon as practicable following the filing
      thereof.

    

    (c)  The
      Company
      shall make available to the Investor whose Registrable Securities are included
      in any Registration Statement and its legal counsel without charge (i) promptly after the
      same is
      prepared and filed with the SEC at least one (1) copy of such Registration
      Statement and any amendment(s) thereto, including financial statements and
      schedules, all documents incorporated therein by reference and all exhibits,
      the
      prospectus included in such Registration Statement (including each preliminary
      prospectus) and, with regards to such Registration Statement(s), any
      correspondence by or on behalf of the Company to the SEC or the staff of the
      SEC
      and any correspondence from the SEC or the staff of the SEC to the Company
      or
      its representatives; (ii) upon the effectiveness
      of
      any Registration Statement, the Company shall make available copies of the
      prospectus, via EDGAR, included in such Registration Statement and all
      amendments and supplements thereto; and (iii) such other documents,
      including copies of any preliminary or final prospectus, as the Investor may
      reasonably request from time to time in order to facilitate the disposition
      of
      the Registrable Securities.

    

    (d)  The
      Company
      shall use commercially reasonable efforts to (i) register and qualify
      the
      Registrable Securities covered by the Registration Statement under such other
      securities or “blue sky” laws of such states in the United States as the
      Investor reasonably requests; (ii) prepare and file
      in those
      jurisdictions, such amendments (including post-effective amendments) and
      supplements to such registrations and qualifications as may be necessary to
      maintain the effectiveness thereof during the Registration Period; (iii) take such other actions
      as may be necessary to maintain such registrations and qualifications in effect
      at all times during the Registration Period, and (iv) take all other actions
      reasonably necessary or advisable to qualify the Registrable Securities for
      sale
      in such jurisdictions; provided, however, that the
      Company shall not be required in connection therewith or as a condition thereto
      to (x) qualify to do
      business in any jurisdiction where it would not otherwise be required to qualify
      but for this Section 3(d), or (y) subject itself to
      general
      taxation in any such jurisdiction.  The Company shall promptly notify
      the Investor who holds Registrable Securities of the receipt by the Company
      of
      any notification with respect to the suspension of the registration or
      qualification of any of the Registrable Securities for sale under the securities
      or “blue sky” laws of any jurisdiction in the United States or its receipt of
      actual notice of the initiation or threatening of any proceeding for such
      purpose.

    

    (e)  As
      promptly as
      practicable after becoming aware of such event, the Company shall notify
      Investor in writing of the happening of any event as a result of which the
      prospectus included in the Registration Statement, as then in effect, includes
      an untrue statement of a material fact or omission to state a material fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances under which they were made, not misleading (“Registration
      Default”) and use all diligent efforts to promptly prepare a supplement
      or amendment to such Registration Statement and take any other necessary steps
      to cure the Registration Default (which, if such Registration Statement is
      on
      Form S-3, may consist of a document to be filed by the Company with the SEC
      pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as defined below)
      and to be incorporated by reference in the prospectus) to correct such untrue
      statement or omission, and make available copies of such supplement or amendment
      to the Investor. The Company shall also promptly notify the Investor (i) when a prospectus
      or any
      prospectus supplement or post-effective amendment has been filed, and when
      the
      Registration Statement or any post-effective amendment has become effective
      (the
      Company will prepare notification of such effectiveness which shall be delivered
      to the Investor on the same day of such effectiveness and by overnight mail),
      additionally, the Company will promptly provide to the Investor, a copy of
      the
      effectiveness order prepared by the SEC once it is received by the Company;
      (ii) of any request by
      the SEC for amendments or supplements to the Registration Statement or related
      prospectus or related information, (iii) of the Company’s
      reasonable determination that a post-effective amendment to the Registration
      Statement would be appropriate, (iv) in the event the
      Registration Statement is no longer effective, or (v) if the Registration
      Statement is stale as a result of the Company’s failure to timely file its
      financials or otherwise. The Company acknowledges that its failure to cure
      the
      Registration Default within ten (10) business days will cause the Investor
      to
      suffer damages in an amount that will be difficult to
      ascertain.  Accordingly, the parties agree that it is appropriate to
      include a provision for liquidated damages equal to five thousand dollars
      ($5,000) per day.  The parties acknowledge and agree that the
      liquidated damages provision set forth in this section represents the parties’
good faith effort to quantify such damages and, as such, agree that the form
      and
      amount of such liquidated damages are reasonable and will not constitute a
      penalty.  It is the intention of the parties that interest payable
      under any of the terms of this Agreement shall not exceed the maximum amount
      permitted under any applicable law. If a law, which applies to this Agreement,
      which sets the maximum interest amount, is finally interpreted so that the
      interest in connection with this Agreement exceeds the permitted limits, then:
      (1) any such interest
      shall be reduced by the amount necessary to reduce the interest to the permitted
      limit; and (2) any sums
      already collected (if any) from the Company which exceed the permitted limits
      will be refunded to the Company.  The Investor may choose to make this
      refund by reducing the amount that the Company owes under this Agreement or
      by
      making a direct payment to the Company.  If a refund reduces the
      amount that the Company owes the Investor, the reduction will be treated as
      a
      partial payment.

    

    
      
         

      

      
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    (f)  The
      Company
      shall use all commercially reasonable efforts to prevent the issuance of any
      stop order or other  suspension of effectiveness of the Registration
      Statement, or the suspension of the qualification of any of the Registrable
      Securities for sale in any jurisdiction and, if such an order or suspension
      is
      issued,  to obtain the withdrawal of such order or suspension at the
      earliest possible moment and to notify the Investor holding Registrable
      Securities being sold of the issuance of such order and
      the  resolution thereof or its receipt of actual notice of the
      initiation or threat of any proceeding concerning the effectiveness of the
      registration statement.

    

    (g)  The
      Company
      shall permit the Investor and one (1) legal counsel, designated by the Investor,
      to review and comment upon the Registration Statement and all amendments and
      supplements thereto at least one (1) calendar day prior to their filing with
      the
      SEC.  However, any postponement of a filing of a Registration
      Statement or any postponement of a request for acceleration or any postponement
      of the effective date or effectiveness of a Registration Statement by written
      request of the Investor (collectively, the "Investor's Delay") shall not act
      to
      trigger any penalty of any kind, or any cash amount due or any in-kind amount
      due the Investor from the Company under any and all agreements of any nature
      or
      kind between the Company and the Investor.  The event(s) of an
      Investor's Delay shall act to suspend all obligations of any kind or nature
      of
      the Company under any and all agreements of any nature or kind between the
      Company and the Investor.

    

    (h)  At
      the request
      of the Investor, the Company's counsel shall furnish to the Investor an opinion
      letter confirming the effectiveness of the registration
      statement.  Such opinion letter shall be issued as of the date of the
      effectiveness of the registration statement and be in a form suitable to the
      Investor.

    

    (i)  The
      Company
      shall hold in confidence and not make any disclosure of information concerning
      the Investor unless (i)
disclosure of such
      information is necessary to comply with federal or
      state securities laws, (ii) the disclosure of
      such
      information is necessary to avoid or correct a misstatement or omission in
      any
      Registration Statement, (iii) the release of such
      information is ordered pursuant to a subpoena or other final, non-appealable
      order from a court or governmental body of competent jurisdiction, or (iv) such information
      has been
      made generally available to the public other than by disclosure in violation
      of
      this Agreement or any other agreement.  The Company agrees that it
      shall, upon learning that disclosure of such information concerning the Investor
      is sought in or by a court or governmental body of competent jurisdiction or
      through other means, give prompt written notice to the Investor and allow the
      Investor, at the Investor’s expense, to undertake appropriate action to prevent
      disclosure of, or to obtain a protective order covering such information.

    

    (j)  The
      Company
      shall use all commercially reasonable efforts to maintain designation and
      quotation of all the Registrable Securities covered by any Registration
      Statement on the Principal Market.  If, despite the Company’s
      commercially reasonable efforts, the Company is unsuccessful in satisfying
      the
      preceding sentence, it shall use commercially reasonable efforts to cause all
      the Registrable Securities covered by any Registration Statement to be listed
      on
      each other national securities exchange and automated quotation system, if
      any,
      on which securities of the same class or series issued by the Company are then
      listed, if any, if the listing of such Registrable Securities is then permitted
      under the rules of such exchange or system.  The Company shall pay all
      fees and expenses in connection with satisfying its obligation under this
      Section 3(j).

    

    
      
         

      

      
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    (k)  The
      Company
      shall cooperate with the Investor to facilitate the prompt preparation and
      delivery of certificates representing the Registrable Securities to be offered
      pursuant to the Registration Statement and enable such certificates to be in
      such denominations or amounts, as the case may be, as the Investor may
      reasonably request (and after any sales of such Registrable Securities by the
      Investor, such certificates not bearing any restrictive legend).

    

    (l)  The
      Company
      shall provide a transfer agent for all the Registrable Securities not later
      than
      the effective date of the first Registration Statement filed pursuant
      hereto.

    

    (m)  If
      requested by
      the Investor, the Company shall (i) as soon as reasonably
      practical incorporate in a prospectus supplement or post-effective amendment
      such information as the Investor reasonably determines should be included
      therein relating to the sale and distribution of Registrable Securities,
      including, without limitation, information with respect to the offering of
      the
      Registrable Securities to be sold in such offering; (ii) make all required
      filings
      of such prospectus supplement or post-effective amendment as soon as reasonably
      possible after being notified of the matters to be incorporated in such
      prospectus supplement or post-effective amendment; and (iii) supplement or make
      amendments to any Registration Statement if reasonably requested by the
      Investor.

    

    (n)  The
      Company
      shall use all commercially reasonable efforts to cause the Registrable
      Securities covered by the applicable Registration Statement to be registered
      with or approved by such other governmental agencies or authorities as may
      be
      necessary to facilitate the disposition of such Registrable Securities.

    

    (o)  The
      Company
      shall otherwise use all commercially reasonable efforts to comply with all
      applicable rules and regulations of the SEC in connection with any registration
      hereunder.

    

    (p)  Within
      one (1)
      business day after the Registration Statement which includes Registrable
      Securities is declared effective by the SEC, the Company shall deliver to the
      transfer agent for such Registrable Securities, with copies to the Investor,
      confirmation that such Registration Statement has been declared effective by
      the
      SEC.

    

    (q)  The
      Company
      shall take all other reasonable actions necessary to expedite and facilitate
      disposition by the Investor of Registrable Securities pursuant to the
      Registration Statement.

    

    

    Section
      4.  OBLIGATIONS OF THE
      INVESTOR.

    

    (a)  At
      least five
      (5) calendar days prior to the first anticipated filing date of the Registration
      Statement  the Company shall notify the Investor in writing of the
      information the Company requires from the Investor for the Registration
      Statement.  It shall be a condition precedent to the obligations of
      the Company to complete the registration pursuant to this Agreement with respect
      to the Registrable Securities and the Investor agrees to furnish to the Company
      that information regarding itself, the Registrable Securities and the intended
      method of disposition of the Registrable Securities as shall reasonably be
      required to effect the registration of such Registrable Securities and the
      Investor shall execute such documents in connection with such registration
      as
      the Company may reasonably request.  The Investor covenants and agrees
      that, in connection with any sale of Registrable Securities by it pursuant
      to
      the Registration Statement, it shall comply with the “Plan of Distribution”
section of the then current prospectus relating to such Registration
      Statement.

    

    (b)  The
      Investor,
      by its acceptance of the Registrable Securities, agrees to cooperate with the
      Company as reasonably requested by the Company in connection with the
      preparation and filing of any Registration Statement hereunder, unless the
      Investor has notified the Company in writing of an election to exclude all
      of
      the Investor’s Registrable Securities from such Registration Statement.

    

    (c)  The
      Investor
      agrees that, upon receipt of written notice from the Company of the happening
      of
      any event of the kind described in Section 3(f) or the first sentence of 3(e),
      the Investor will immediately discontinue disposition of Registrable Securities
      pursuant to any Registration Statement(s) covering such Registrable Securities
      until the Investor’s receipt of the copies of the supplemented or amended
      prospectus contemplated by Section 3(f) or the first sentence of 3(e).

    

    
      
         

      

      
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              Section
                5.  EXPENSES
                OF REGISTRATION. 

            

    

    

    All
      expenses, other than underwriting
      discounts and commissions and other than as set forth in the Investment
      Agreement, incurred in connection with registrations including comments, filings
      or qualifications pursuant to Sections 2 and 3, including, without limitation,
      all registration, listing and qualifications fees, printing and accounting
      fees,
      and fees and disbursements of counsel for the Company or for the Investor shall
      be paid by the Company.

    

    
      	
              Section
                6.  INDEMNIFICATION.
                

            

    

    

    In
      the event any Registrable Securities
      are included in the Registration Statement under this Agreement:

    

    

    (a)  To
      the fullest
      extent permitted by law, the Company, under this Agreement, will, and hereby
      does, indemnify, hold harmless and defend the Investor who holds Registrable
      Securities, the directors, officers, partners, employees, counsel, agents,
      representatives of, and each Person, if any, who controls, any Investor within
      the meaning of the 1933 Act or the Securities Exchange Act of 1934, as amended
      (the “1934
      Act”) (each, an “Indemnified
      Person”),
      against any losses, claims, damages, liabilities, judgments, fines, penalties,
      charges, costs, attorneys’ fees, amounts paid in settlement or expenses, joint
      or several (collectively, “Claims”), incurred
      in
      investigating, preparing or defending any action, claim, suit, inquiry,
      proceeding, investigation or appeal taken from the foregoing by or before any
      court or governmental, administrative or other regulatory agency, body or the
      SEC, whether pending or threatened, whether or not an indemnified party is
      or
      may be a party thereto (“Indemnified
      Damages”), to which any of them may become subject insofar as such Claims
      (or actions or proceedings, whether commenced or threatened, in respect thereof)
      arise out of or are based upon: (i) any untrue statement
      or
      alleged untrue statement of a material fact in the Registration Statement or
      any
      post-effective amendment thereto or in any filing made in connection with the
      qualification of the offering under the securities or other “blue sky” laws of
      any jurisdiction in which the Investor has requested in writing that the Company
      register or qualify the Shares (“Blue Sky Filing”), or
      the omission or alleged omission to state a material fact required to be stated
      therein or necessary to make the statements therein, in light of the
      circumstances under which the statements therein were made, not misleading,
      (ii) any untrue
      statement or alleged untrue statement of a material fact contained in the final
      prospectus (as amended or supplemented, if the Company files any amendment
      thereof or supplement thereto with the SEC) or the omission or alleged omission
      to state therein any material fact necessary to make the statements made
      therein, in light of the circumstances under which the statements therein were
      made, not misleading, or (iii) any violation or
      alleged
      violation by the Company of the 1933 Act, the 1934 Act, any other law,
      including, without limitation, any state securities law, or any rule or
      regulation thereunder relating to the offer or sale of the Registrable
      Securities pursuant to the Registration Statement (the matters in the foregoing
      clauses (i) through (iii) being, collectively, “Violations”).  Subject
      to the restrictions set forth in Section 6(c) the Company shall reimburse the
      Investor and each such controlling person, promptly as such expenses are
      incurred and are due and payable, for any reasonable legal fees or other
      reasonable expenses incurred by them in connection with investigating or
      defending any such Claim. Notwithstanding anything to the contrary contained
      herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to
      a Claim
      arising out of or based upon a Violation which is due to the inclusion in the
      Registration Statement of the information furnished to the Company by any
      Indemnified Person expressly for use in connection with the preparation of
      the
      Registration Statement or any such amendment thereof or supplement thereto;
      (ii) shall not be
      available to the extent such Claim is based on (a) a failure of the
      Investor
      to deliver or to cause to be delivered the prospectus made available by the
      Company or (b) the
      Indemnified Person’s use of an incorrect prospectus despite being promptly
      advised in advance by the Company in writing not to use such incorrect
      prospectus;  (iii) any claims based
      on the
      manner of sale of the Registrable Securities by the Investor or of the
      Investor’s failure to register as a dealer under applicable securities laws;
(iv) any omission of the
      Investor to notify the Company of any material fact that should be stated in
      the
      Registration Statement or prospectus relating to the Investor or the manner
      of
      sale; and (v) any
      amounts paid in settlement of any Claim if such settlement is effected without
      the prior written consent of the Company, which consent shall not be
      unreasonably withheld.  Such indemnity shall remain in full force and
      effect regardless of any investigation made by or on behalf of the Indemnified
      Person and  shall survive the resale of the Registrable Securities by
      the Investor pursuant to the Registration Statement.

    

    
      
         

      

      
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        (b)  In
      connection with any Registration Statement in which Investor is participating,
      the Investor agrees to severally and jointly indemnify, hold harmless and
      defend, to the  same extent and in the same manner as is set forth in
      Section 6(a), the Company, each of its  directors, each of its
      officers who signs the Registration Statement, each Person, if any, who controls
      the Company within the meaning of the 1933 Act or the 1934 Act and the Company’s
      agents (collectively and together with an Indemnified Person, an “Indemnified Party”),
      against any Claim or Indemnified Damages to which any of them may become
      subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim
      or
      Indemnified Damages arise out of or are based upon any Violation, in each case
      to the extent, and only to the extent, that such Violation is due to the
      inclusion in the Registration Statement of the written information furnished
      to
      the Company by the Investor expressly for use in connection with such
      Registration Statement; and, subject to Section 6(c), the Investor will
      reimburse any legal or other expenses reasonably incurred by them in connection
      with investigating or defending any such Claim; provided, however, that the
      indemnity agreement contained in this Section 6(b) and the agreement with
      respect to contribution contained in Section 7 shall not apply to amounts paid
      in settlement of any Claim if such settlement is effected without the prior
      written consent of the Investor, which consent shall not be unreasonably
      withheld; provided, further, however, that the Investor shall only be liable
      under this Section 6(b) for  that amount of a Claim or Indemnified
      Damages as does not exceed the net proceeds to such Investor as a result of
      the
      sale of Registrable Securities pursuant to such Registration
      Statement.  Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such Indemnified Party
      and shall survive the resale of the Registrable Securities by the Investor
      pursuant to the Registration Statement. Notwithstanding anything to the contrary
      contained herein, the indemnification agreement contained in this Section 6(b)
      with respect to any preliminary prospectus shall not inure to the benefit of
      any
      Indemnified Party if the untrue statement or omission of material fact contained
      in the preliminary prospectus were corrected on a timely basis in the
      prospectus, as then amended or supplemented.  This indemnification
      provision shall apply separately to each Investor and liability hereunder shall
      not be joint and several.

    

    (c)  Promptly
      after
      receipt by an Indemnified Person or Indemnified Party under this Section 6
      of
      notice of the commencement of any action or proceeding (including any
      governmental action or proceeding) involving a Claim, such Indemnified Person
      or
      Indemnified Party shall, if a Claim in respect thereof is to be made against
      any
      indemnifying party under this Section 6, deliver to the indemnifying party
      a
      written notice of the commencement thereof, and the indemnifying party shall
      have the right to participate in, and, to the extent the indemnifying party
      so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the Indemnified Person or the Indemnified Party, as
      the
      case may be; provided, however, that an Indemnified Person or Indemnified Party
      shall have the right to retain its own counsel with the fees and expenses to
      be
      paid by the indemnifying party, if, in the reasonable opinion of counsel
      retained by the Indemnified Person or Indemnified Party, the representation
      by
      counsel of the Indemnified Person or Indemnified Party and the indemnifying
      party would be inappropriate due to actual or potential differing interests
      between such Indemnified Person or Indemnified Party and any other party
      represented by such counsel in such proceeding.  The indemnifying
      party shall pay for only one (1) separate legal counsel for the Indemnified
      Persons or the Indemnified Parties, as applicable, and such counsel shall be
      selected by the Investor, if the Investor is entitled to indemnification
      hereunder, or the Company, if the Company is entitled to indemnification
      hereunder, as applicable.  The Indemnified Party or Indemnified Person
      shall cooperate fully with the indemnifying party in connection with any
      negotiation or defense of any such action or Claim by the indemnifying party
      and
      shall furnish to the indemnifying party all information reasonably available
      to
      the Indemnified Party or Indemnified Person which relates to such action or
      Claim.  The indemnifying party shall keep the Indemnified Party or
      Indemnified Person fully apprised at all times as to the status of the defense
      or any settlement negotiations with respect thereto.  No indemnifying
      party shall be liable for any settlement of any action, claim or proceeding
      affected without its written consent, provided, however, that the indemnifying
      party shall not unreasonably withhold, delay or condition its consent. No
      indemnifying party shall, without the consent of the Indemnified Party or
      Indemnified Person, consent to entry of any judgment or enter into any
      settlement or other compromise which does not include as an unconditional term
      thereof the giving by the claimant or plaintiff to such Indemnified Party or
      Indemnified Person of a release from all liability in respect to such
      Claim.  Following indemnification as provided for hereunder, the
      indemnifying party shall be subrogated to all rights of the Indemnified Party
      or
      Indemnified Person with respect to all third parties, firms or corporations
      relating to the matter for which indemnification has been made.  The
      failure to deliver written notice to the indemnifying party within a reasonable
      time of the commencement of any such action shall not relieve such indemnifying
      party of any liability to the Indemnified Person or Indemnified Party under
      this
      Section 6, except to the extent that the indemnifying party is prejudiced in
      its
      ability to defend such action.

    

    (d)  The
      indemnity
      agreements contained herein shall be in addition to (i) any cause of action
      or
      similar right of the Indemnified Party or Indemnified Person against the
      indemnifying party or others, and (ii) any liabilities the
      indemnifying party may be subject to pursuant to the law.

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    Section
      7.  CONTRIBUTION.

    

    To
      the extent any indemnification by an
      indemnifying party is prohibited or limited by law, the indemnifying party
      agrees to make the maximum contribution with respect to any amounts for which
      it
      would otherwise be liable under Section 6 to the fullest extent permitted by
      law; provided, however,
      that: (i) no
      contribution shall be made under circumstances where the maker would not have
      been liable for indemnification under the fault standards set forth in Section
      6; (ii) no seller of
      Registrable Securities guilty of fraudulent misrepresentation (within the
      meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution
      from
      any seller of Registrable Securities who was not guilty of fraudulent
      misrepresentation; and (iii)
contribution by any
      seller of Registrable Securities shall be limited in
      amount to the net amount of proceeds received by such seller from the sale
      of
      such Registrable Securities.

    

    
      	
              Section
                8.

            	
              REPORTS
                UNDER THE 1934
                ACT. 

            

    

    

    With
      a view to making available to the
      Investor the benefits of Rule 144 promulgated under the 1933 Act or any other
      similar rule or regulation of the SEC that may at any time permit the Investor
      to sell securities of the Company to the public without registration (“Rule 144”), provided
      that the Investor holds any Registrable Securities are eligible for resale
      under
      Rule 144 (k), the Company agrees to:

    

    (a)           
make
      and keep
      public information available, as those terms are understood and defined in
      Rule
      144;

    

    (b)           
file
      with the
      SEC in a timely manner all reports and other documents required of the Company
      under the 1933 Act and the 1934 Act so long as the Company remains subject
      to
      such requirements (it being understood that nothing herein shall limit the
      Company’s obligations under Section 5(c) of the Investment Agreement) and the
      filing of such reports and other documents is required for the applicable
      provisions of Rule 144; and

    

    (c)           
furnish
      to
      the Investor, promptly upon request, (i) a written statement
      by the
      Company that it has complied with the reporting requirements of Rule 144, the
      1933 Act and the 1934 Act, (ii) a copy of the most
      recent
      annual or quarterly report of the Company and such other reports and documents
      so filed by the Company, and (iii) such other information
      as may be reasonably requested to permit the Investor to sell such securities
      pursuant to Rule 144 without registration.

    

    Section
      9.  NO
      ASSIGNMENT OF REGISTRATION RIGHTS.

    

    The
      rights and obligations under this
      Agreement shall not be assignable.

     

    

    Section
      10.  AMENDMENT OF REGISTRATION
      RIGHTS.

    

    The
      provisions of this Agreement may be
      amended only with the written consent of the Company and Investor.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    Section
      11.  MISCELLANEOUS.

    

    (a)  Any
      notices or
      other communications required or permitted to be given under the terms of this
      Agreement that must be in writing will be deemed to have been delivered (i) upon receipt, when
      delivered personally; (ii)
upon receipt, when
      sent by facsimile (provided a confirmation of
      transmission is mechanically or electronically generated and kept on file by
      the
      sending party); or (iii)
      one (1) day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the
      same.  The addresses and facsimile numbers for such communications
      shall be:

    

    If
      to the
      Company:

    

                          
      Edgeline Holdings, Inc.

    1330
      Post
      Oak Blvd.

    Suite
      1600

    Houston,
      Texas 77056

    Telephone:
(713)
      621-5208

    Facsimile:
      (713) 621-5336

    

    

    If
      to the
      Investor:

    

    Dutchess
      Private Equities Fund,
      Ltd.

    50
      Commonwealth Ave, Suite 2

    Boston,
      MA 02116

    Telephone:
      (617) 301-4700

    Facsimile:  (617)
      249-0947

    

    Each
      party shall provide five (5)
      business days prior notice to the other party of any change in address, phone
      number or facsimile number.

    

    (b)  Failure
      of any
      party to exercise any right or remedy under this Agreement or otherwise, or
      delay by a party in exercising such right or remedy, shall not operate as a
      waiver thereof.

    

    (c)   This
      Agreement and the Transaction Documents constitute the entire agreement among
      the parties hereto with respect to the subject matter hereof and
      thereof.  There are no restrictions, promises, warranties or
      undertakings, other than those set forth or referred to herein and
      therein.

    

    (d)  This
      Agreement
      and the Transaction Documents supersede all prior agreements and understandings
      among the parties hereto with respect to the subject matter hereof and
      thereof.

    

    (e)
The
      headings in this
      Agreement are for convenience of reference only and shall not limit or otherwise
      affect the meaning hereof.  Whenever required by the context of this
      Agreement, the singular shall include the plural and masculine shall include
      the
      feminine.  This Agreement shall not be construed as if it had been
      prepared by one of the parties, but rather as if all the parties had prepared
      the same.

    

    (f)  This
      Agreement
      may be executed in two or more identical counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same
      agreement.  This Agreement, once executed by a party, may be delivered
      to the other party hereto by facsimile transmission of a copy of this Agreement
      bearing the signature of the party so delivering this Agreement.

    

    (g)  Each
      party
      shall do and perform, or cause to be done and performed, all such further acts
      and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated hereby.

    

    (h)
      In case any provision of
      this Agreement is held by a court of competent jurisdiction to be excessive
      in
      scope or otherwise invalid or unenforceable, such provision shall be adjusted
      rather than voided, if possible, so that it is enforceable to the maximum extent
      possible, and the validity and enforceability of the remaining provisions of
      this Agreement will not in any way be affected or impaired thereby.

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    Section
      12.  DISPUTES SUBJECT
      TO
      ARBITRATION GOVERNED BY MASSACHUSETTS LAW

    

    All
      disputes arising under this
      agreement shall be governed by and interpreted in accordance with the laws
      of
      the Commonwealth of Massachusetts, without regard to principles of conflict
      of
      laws.  The parties to this agreement will submit all disputes arising
      under this agreement to arbitration in Boston, Massachusetts before a single
      arbitrator of the American Arbitration Association (“AAA”).  The
      arbitrator shall be selected by application of the rules of the AAA, or by
      mutual agreement of the parties, except that such arbitrator shall be an
      attorney admitted to practice law in the Commonwealth of
      Massachusetts.  No party to this agreement will challenge the
      jurisdiction or venue provisions as provided in this section.  Nothing contained herein shall
      prevent
      the party from obtaining an injunction.

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    SIGNATURE
      PAGE OF REGISTRATION RIGHTS AGREEMENT

    

     

    Your
      signature on this Signature Page
      evidences your agreement to be bound by the terms and conditions of the
      Investment Agreement and the Registration Rights Agreement as of the date first
      written above.

     

     

    The
      undersigned signatory hereby
      certifies that he has read and understands the Registration Rights Agreement,
      and the representations made by the undersigned in this Registration Rights
      Agreement are true and accurate, and agrees to be bound by its terms.

     

    

    DUTCHESS
      PRIVATE EQUITIES FUND,
      LTD.,

    

    

    

    By:
_/s/  Douglas
      H.
      Leighton___

    Douglas
      H. Leighton, Director

    

    

    

    EDGELINE
      HOLDINGS, INC.

    

    

    By:
_/s/  Carl
      A.
      Chase__________

          Carl
      A. Chase, CFO and Director

    
      
         

      

      
        11Filed by Bowne Pure Compliance

 

Exhibit 10.1

(Multicurrency — Cross Border)

ISDA ®

International Swap Dealers Association, Inc.

MASTER AGREEMENT

dated as of December 19, 2007

	 	 	 	 	 
	WELLS FARGO BANK, N.A.

	 	and
	 	AMERICAN REPROGRAPHICS COMPANY, L.L.C.;
	 

	 	 	 	and AMERICAN REPROGRAPHICS COMPANY,
	 

	 	 	 	on a joint and several basis

have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that
are or will be governed by this Master Agreement, which includes the schedule (the “Schedule”), and
the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties
confirming those Transactions.

Accordingly, the parties agree as follows :—

1. Interpretation

(a) Definitions. The terms defined in Section 14 and in the Schedule will have the meanings therein
specified for the purpose of this Master Agreement.

(b) Inconsistency. In the event of any inconsistency between the provisions of the Schedule and the
other provisions of this Master Agreement, the Schedule will prevail. In the event of any
inconsistency between the provisions of any Confirmation and this Master Agreement (including the
Schedule), such Confirmation will prevail for the purpose of the relevant Transaction.

(c) Single Agreement. All Transactions are entered into in reliance on the fact that this Master
Agreement and all Confirmations form a single agreement between the parties (collectively referred
to as this “Agreement”), and the parties would not otherwise enter into any Transactions.

2. Obligations

(a) General Conditions.

(i) Each party will make each payment or delivery specified in each Confirmation to be made
by it, subject to the other provisions of this Agreement.

(ii) Payments under this Agreement will be made on the due date for value on that date in
the place of the account specified in the relevant Confirmation or otherwise pursuant to
this Agreement, in freely transferable funds and in the manner customary for payments in the
required currency. Where settlement is by delivery (that is, other than by payment), such
delivery will be made for receipt on the due date in the manner customary for the relevant
obligation unless otherwise specified in the relevant Confirmation or elsewhere in this
Agreement.

(iii) Each obligation of each party under Section 2(a)(i) is subject to (1) the condition
precedent that no Event of Default or Potential Event of Default with respect to the other
party has occurred and is continuing, (2) the condition precedent that no Early Termination
Date in respect of the relevant Transaction has occurred or been effectively designated and
(3) each other applicable condition precedent
specified in this Agreement.

Copyright ã 1992 by International Swap Dealers Association, Inc.

 

 

 

(b) Change of Account. Either party may change its account for receiving a payment or
delivery by giving notice to the other party at least five Local Business Days prior to the
scheduled date for the payment or delivery to which such change applies unless such other
party gives timely notice of a reasonable objection to such change.

(c) Netting. If on any date amounts would otherwise be payable:—

(i) in the same currency; and

(ii) in respect of the same Transaction,

by each party to the other, then, on such date, each party’s obligation to make payment of any such
amount will be automatically satisfied and discharged and, if the aggregate amount that would
otherwise have been payable by one party exceeds the aggregate amount that would otherwise have
been payable by the other party, replaced by an obligation upon the party by whom the larger
aggregate amount would have been payable to pay to the other party the excess of the larger
aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount will be determined
in respect of all amounts payable on the same date in the same currency in respect of such
Transactions, regardless of whether such amounts are payable in respect of the same Transaction.
The election may be made in the Schedule or a Confirmation by specifying that subparagraph (ii)
above will not apply to the Transactions identified as being subject to the election, together with
the starting date (in which case subparagraph (ii) above will not, or will cease to, apply to such
Transactions from such date). This election may be made separately for different groups of
Transactions and will apply separately to each pairing of Offices through which the parties make
and receive payments or deliveries.

(d) Deduction or Withholding for Tax.

(i) Gross-Up. All payments under this Agreement will be made without any deduction or
withholding for or on account of any Tax unless such deduction or withholding is required by
any applicable law, as modified by the practice of any relevant governmental revenue
authority, then in effect. If a party is so required to deduct or withhold, then that party
(“X”) will:—

(1) promptly notify the other party (“Y”) of such requirement;

(2) pay to the relevant authorities the full amount required to be deducted or withheld
(including the full amount required to be deducted or withheld from any additional
amount paid by X to Y under this Section 2(d)) promptly upon the earlier of determining
that such deduction or withholding is required or receiving notice that such amount has
been assessed against Y;

(3) promptly forward to Y an official receipt (or a certified copy), or other
documentation reasonably acceptable to Y, evidencing such payment to such authorities;
and

(4) if such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
Y is otherwise entitled under this Agreement, such additional amount as is necessary to
ensure that the net amount actually received by Y (free and clear of Indemnifiable
Taxes, whether assessed against X or Y) will equal the full amount Y would have
received had no such deduction or withholding been required. However, X will not be
required to pay any additional amount to Y to the extent that it would not be required
to be paid but for:—

(A) the failure by Y to comply with or perform any agreement contained in Section
4(a)(i), 4(a)(iii) or 4(d); or

(B) the failure of a representation made by Y pursuant to Section 3(f) to be
accurate and true unless such failure would not have occurred but for (I) any
action taken by a taxing authority, or brought in a court of competent
jurisdiction, on or after the date on which a Transaction is entered into
(regardless of wbether such action is taken or brought with respect to a party to
this Agreement) or (II) a Change in Tax Law.

ISDA â 1992

 

2

 

(ii) Liability. If: -

(1) X is required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, to make any deduction or withholding in respect of
which X would not be required to pay an additional amount to Y under Section
2(d)(i)(4);

(2) X does not so deduct or withhold; and

(3) a liability resulting from such Tax is assessed directly against X,

then, except to the extent Y has satisfied or then satisfies the liability resulting from
such Tax, Y will promptly pay to X the amount of such liability (including any related
liability for interest, but including any related liability for penalties only if Y has
failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d)).

(e) Default Interest; Other Amounts. Prior to the occurrence or effective designation of an Early
Termination Date in respect of the relevant Transaction, a party that defaults in the performance
of any payment obligation will, to the extent permitted by law and subject to Section 6(c), be
required to pay interest (before as well as after judgment) on the overdue amount to the other
party on demand in the same currency as such overdue amount, for the period from (and including)
the original due date for payment to (but excluding) the date of actual payment, at the Default
Rate. Such interest will be calculated on the basis of daily compounding and the actual number of
days elapsed. If, prior to the occurrence or effective designation of an Early Termination Date in
respect of the relevant Transaction, a party defaults in the performance of any obligation required
to be settled by delivery, it will compensate the other party on demand if and to the extent
provided for in the relevant Confirmation or elsewhere in this Agreement.

3. Representations

Each party represents to the other party (which representations will be deemed to be repeated by each party on
each date on which a Transaction is entered into and, in the case of the representations in Section 3(f), at all
times until the termination of this Agreement) that:—

(a) Basic Representations.

(i) Status. It is duly organised and validly existing under the laws of the jurisdiction of
its organisation or incorporation and, if relevant under such laws, in good standing;

(ii) Powers. It has the power to execute this Agreement and any other documentation relating
to this Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement to deliver
and to perform its obligations under this Agreement and any obligations it has under any
Credit Support Document to which it is a party and has taken all necessary action to
authorise such execution, delivery and performance;

(iii) No Violation or Conflict. Such execution, delivery and performance do not violate or
conflict with any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it or any of its
assets or any contractual restriction binding on or affecting it or any of its assets;

(iv) Consents. All governmental and other consents that are required to have been obtained
by it with respect to this Agreement or any Credit Support Document to which it is a party
have been obtained and are in full force and effect and all conditions of any such consents
have been complied with; and

(v) Obligations Binding. Its obligations under this Agreement and any Credit Support
Document to which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms (subject to applicable bankruptcy,
reorganisation, insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general application
(regardless of whether enforcement is sought in a proceeding in equity or at law)).

ISDA â 1992

 

3

 

(b) Absence of Certain Events. No Event of Default or Potential Event of Default or, to its
knowledge, Termination Event with respect to it has occurred and is continuing and no such event or
circumstance would occur as a result of its entering into or performing its obligations under this
Agreement or any Credit Support Document to which it is a party.

(c) Absence of Litigation. There is not pending or, to its knowledge, threatened against it or any
of its Affiliates any action, suit or proceeding at law or in equity or before any court, tribunal,
governmental body, agency or official or any arbitrator that is likely to affect the legality,
validity or enforceability against it of this Agreement or any Credit Support Document to which it
is a party or its ability to perform its obligations under this Agreement or such Credit Support
Document.

(d) Accuracy of Specified Information. All applicable information that is furnished in writing by
or on behalf of it to the other party and is identified for the purpose of this Section 3(d) in the
Schedule is, as of the date of the information, true, accurate and complete in every material
respect.

(e) Payer Tax Representation. Each representation specified in the Schedule as being made by it for
the purpose of this Section 3(e) is accurate and true.

(f) Payee Tax Representations. Each representation specified in the Schedule as being made by it
for the purpose of this Section 3(f) is accurate and true.

4. Agreements

Each party agrees with the other that, so long as either party has or may have any obligation under
this Agreement or under any Credit Support Document to which it is a party:—

(a) Furnish Specified Information. It will deliver to the other party or, in certain cases under
subparagraph (iii) below, to such government or taxing authority as the other party reasonably
directs:—

(i) any forms, documents or certificates relating to taxation specified in the Schedule or
any Confirmation;

(ii) any other documents specified in the Schedule or any Confirmation; and

(iii) upon reasonable demand by such other party, any form or document that may be required
or reasonably requested in writing in order to allow such other party or its Credit Support
Provider to make a payment under this Agreement or any applicable Credit Support Document
without any deduction or withholding for or on account of any Tax or with such deduction or
withholding at a reduced rate (so long as the completion, execution or submission of such
form or document would not materially prejudice the legal or commercial position of the
party in receipt of such demand), with any such form or document to be accurate and
completed in a manner reasonably satisfactory to such other party and to be executed and to
be delivered with any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation or, if none is specified,
as soon as reasonably practicable.

(b) Maintain Authorisations. It will use all reasonable efforts to maintain in full force and
effect all consents of any governmental or other authority that are required to be obtained by it
with respect to this Agreement or any Credit Support Document to which it is a party and will use
all reasonable efforts to obtain any that may become necessary in the future.

(c) Comply with Laws. It will comply in all material respects with all applicable laws and orders
to which it may be subject if failure so to comply would materially impair its ability to perform
its obligations under this Agreement or any Credit Support Document to which it is a party.

(d) Tax Agreement. It will give notice of any failure of a representation made by it under Section
3(f) to be accurate and true promptly upon learning of such failure.

ISDA â 1992

 

4

 

(e) Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed upon
it or in respect of its execution or performance of this Agreement by a jurisdiction in which it is
incorporated, organised, managed and controlled, or considered to have its seat, or in which a branch or office
through which it is acting for the purpose of this Agreement is located (“Stamp Tax Jurisdiction”)
and will indemnify the other party against any Stamp Tax levied or imposed upon the other party or
in respect of the other party’s execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the other party.

5. Events of Default and Termination Events

(a) Events of Default. The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of any of the following
events constitutes an event of default (an “Event of Default”) with respect to such party:—

(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under
this Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such
failure is not remedied on or before the third Local Business Day after notice of such
failure is given to the party;

(ii) Breach of Agreement. Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement or delivery
under Section 2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or
obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the
party in accordance with this Agreement if such failure is not remedied on or before the
thirtieth day after notice of such failure is given to the party;

(iii) Credit Support Default.

(1) Failure by the party or any Credit Support Provider of such party to comply with or
perform any agreement or obligation to be complied with or performed by it in
accordance with any Credit Support Document if such failure is continuing after any
applicable grace period has elapsed;

(2) the expiration or termination of such Credit Support Document or the failing or
ceasing of such Credit Support Document to be in full force and effect for the purpose
of this Agreement (in either case other than in accordance with its terms) prior to the
satisfaction of all obligations of such party under each Transaction to which such
Credit Support Document relates without the written consent of the other party; or

(3) the party or such Credit Support Provider disaffirms, disclaims, repudiates or
rejects, in whole or in part, or challenges the validity of, such Credit Support
Document;

(iv) Misrepresentation. A representation (other than a representation under Section 3(e) or
(f)) made or repeated or deemed to have been made or repeated by the party or any Credit
Support Provider of such party in this Agreement or any Credit Support Document proves to
have been incorrect or misleading in any material respect when made or repeated or deemed to
have been made or repeated;

(v) Default under Specified Transaction. The party, any Credit Support Provider of such
party or any applicable Specified Entity of such party (1) defaults under a Specified
Transaction and, after giving effect to any applicable notice requirement or grace period,
there occurs a liquidation of, an acceleration of obligations under, or an early termination
of, that Specified Transaction, (2) defaults, after giving effect to any applicable notice
requirement or grace period, in making any payment or delivery due on the last payment,
delivery or exchange date of, or any payment on early termination of, a Specified
Transaction (or such default continues for at least three Local Business Days if there is no
applicable notice requirement or grace period) or (3) disaffirms, disclaims, repudiates or
rejects, in whole or in part, a Specified Transaction (or such action is taken by any person
or entity appointed or empowered to operate it or act on its behalf);

(vi) Cross Default. If “Cross Default” is specified in the Schedule as applying to the
party, the occurrence or existence of (1) a default, event of default or other similar
condition or event (however described) in respect of such party, any Credit Support Provider of such party or any
applicable Specified Entity of such party under one or more agreements or instruments
relating to Specified Indebtedness of any of them (individually or collectively) in an aggregate amount of not less than the
applicable Threshold Amount (as specified in the Schedule) which has resulted in such
Specified Indebtedness becoming, or becoming capable at such time of being declared, due and
payable under such agreements or instruments, before it would otherwise have been due and
payable or (2) a default by such party, such Credit Support Provider or such Specified
Entity (individually or collectively) in making one or more payments on the due date thereof
in an aggregate amount of not less than the applicable Threshold Amount under such
agreements or instruments (after giving effect to any applicable notice requirement or grace
period);

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(vii) Bankruptcy. The party, any Credit Support Provider of such party or any applicable
Specified Entity of such party:—

(1) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (2)
becomes insolvent or is unable to pay its debts or fails or admits in writing its
inability generally to pay its debts as they become due; (3) makes a general
assignment, arrangement or composition with or for the benefit of its creditors; (4)
institutes or has instituted against it a proceeding seeking a judgment of insolvency
or bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors’ rights, or a petition is presented for its winding-up
or liquidation, and, in the case of any such proceeding or petition instituted or
presented against it, such proceeding or petition (A) results in a judgment of
insolvency or bankruptcy or the entry of an order for relief or the making of an order
for its winding-up or liquidation or (B) is not dismissed, discharged, stayed or
restrained in each case within 30 days of the institution or presentation thereof; (5)
has a resolution passed for its winding-up, official management or liquidation (other
than pursuant to a consolidation, amalgamation or merger); (6) seeks or becomes subject
to the appointment of an administrator, provisional liquidator, conservator, receiver,
trustee, custodian or other similar official for it or for all or substantially all its
assets; (7) has a secured party take possession of all or substantially all its assets
or has a distress, execution, attachment, sequestration or other legal process levied,
enforced or sued on or against all or substantially all its assets and such secured
party maintains possession, or any such process is not dismissed, discharged, stayed or
restrained, in each case within 30 days thereafter; (8) causes or is subject to any
event with respect to it which, under the applicable laws of any jurisdiction, has an
analogous effect to any of the events specified in clauses (1) to (7) (inclusive); or
(9) takes any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts; or

(viii) Merger Without Assumption. The party or any Credit Support Provider of such party
consolidates or amalgamates with, or merges with or into, or transfers all or substantially
all its assets to, another entity and, at the time of such consolidation, amalgamation,
merger or transfer:—

(1) the resulting, surviving or transferee entity fails to assume all the obligations
of such party or such Credit Support Provider under this Agreement or any Credit
Support Document to which it or its predecessor was a party by operation of law or
pursuant to an agreement reasonably satisfactory to the other party to this Agreement;
or

(2) the benefits of any Credit Support Document fail to extend (without the consent of
the other party) to the performance by such resulting, surviving or transferee entity
of its obligations under this Agreement.

(b) Termination Events. The occurrence at any time with respect to a party or, if applicable, any
Credit
Support Provider of such party or any Specified Entity of such party of any event specified below
constitutes
an Illegality if the event is specified in (i) below, a Tax Event if the event is specified in (ii)
below or a Tax
Event Upon Merger if the event is specified in (iii) below, and, if specified to be applicable, a
Credit Event
Upon Merger if the event is specified pursuant to (iv) below or an Additional Termination Event if
the event is specified pursuant to (v) below:—

(i) Illegality. Due to the adoption of, or any change in, any applicable law after the date
on which a Transaction is entered into, or due to the promulgation of, or any change in, the
interpretation by any court, tribunal or regulatory authority with competent jurisdiction of
any applicable law after such date, it becomes unlawful (other than as a result of a breach
by the party of Section 4(b)) for such party (which will be the Affected Party):—

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(1) to perform any absolute or contingent obligation to make a payment or delivery or
to receive a payment or delivery in respect of such Transaction or to comply with any
other material provision of this Agreement relating to such Transaction; or

(2) to perform, or for any Credit Support Provider of such party to perform, any
contingent or other obligation which the party (or such Credit Support Provider) has
under any Credit Support Document relating to such Transaction;

(ii) Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of
competent jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party to this
Agreement) or (y) a Change in Tax Law, the party (which will be the Affected Party) will, or
there is a substantial likelihood that it will, on the next succeeding Scheduled Payment
Date (1) be required to pay to the other party an additional amount in respect of an
Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount is required to be
deducted or withheld for or on account of a Tax (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect of such
Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B));

(iii) Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding
Scheduled Payment Date will either (1) be required to pay an additional amount in respect of
an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an-amount has been deducted or
withheld for or on account of any Indemnifiable Tax in respect of which the other party is
not required to pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or
(B)), in either case as a result of a party consolidating or amalgamating with, or merging
with or into, or transferring all or substantially all its assets to, another entity (which
will be the Affected Party) where such action does not constitute an event described in
Section 5 (a)(viii);

(iv) Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as
applying to the party, such party (“X”), any Credit Support Provider of X or any applicable
Specified Entity of X consolidates or amalgamates with, or merges with or into, or transfers
all or substantially all its assets to, another entity and such action does not constitute
an event described in Section 5(a)(viii) but the creditworthiness of the resulting,
surviving or transferee entity is materially weaker than that of X, such Credit Support
Provider or such Specified Entity, as the case may be, immediately prior to such action
(and, in such event, X or its successor or transferee, as appropriate, will be the Affected
Party); or

(v) Additional Termination Event. If any “Additional Termination Event” is specified in the
Schedule or any Confirmation as applying, the occurrence of such event (and, in such event,
the
Affected Party or Affected Parties shall be as specified for such Additional Termination
Event in
the Schedule or such Confirmation).

(c) Event of Default and Illegality. If an event or circumstance which would otherwise constitute
or give rise to an Event of Default also constitutes an Illegality, it will be treated as an
Illegality and will not constitute an Event of Default.

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6. Early Termination

(a) Right to Terminate Following Event of Default. If at any time an Event of Default with
respect to a party (the “Defaulting Party”) has occurred and is then continuing, the other party
(the “Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting Party
specifying the relevant Event of Default, designate a day not earlier than the day such notice is
effective as an Early Termination Date in respect of all outstanding Transactions. If, however,
“Automatic Early Termination” is specified in the Schedule as applying to a party, then an Early
Termination Date in respect of all outstanding Transactions will occur immediately upon the
occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(1),
(3), (5), (6) or, to the extent analogous thereto, (8), and as of the time immediately preceding
the institution of the relevant proceeding or the presentation of the relevant petition upon the
occurrence with respect to such party of an Event of Default specified in Section 5(a)(vii)(4) or,
to the extent analogous thereto, (8).

(b) Right to Terminate Following Termination Event.

(i) Notice. If a Termination Event occurs, an Affected Party will, promptly upon becoming
aware of it, notify the other party, specifying the nature of that Termination Event and
each Affected Transaction and will also give such other information about that Termination
Event as the other party may reasonably require.

(ii) Transfer to Avoid Termination Event. If either an Illegality under Section 5(b)(i)(1)
or a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger
occurs and the Burdened Party is the Affected Party, the Affected Party will, as a condition
to its right to designate an Early Termination Date under Section 6(b)(iv), use all
reasonable efforts (which will not require such party to incur a loss, excluding immaterial,
incidental expenses) to transfer within 20 days after it gives notice under Section 6(b)(i)
all its rights and obligations under this Agreement in respect of the Affected Transactions
to another of its Offices or Affiliates so that such Termination Event ceases to exist.

If the Affected Party is not able to make such a transfer it will give notice to the other
party to that effect within such 20 day period, whereupon the other party may effect such a
transfer within 30 days after the notice is given under Section 6(b)(i).

Any such transfer by a party under this Section 6(b)(ii) will be subject to and conditional
upon the prior written consent of the other party, which consent will not be withheld if
such other party’s policies in effect at such time would permit it to enter into
transactions with the transferee on the terms proposed.

(iii) Two Affected Parties. If an Illegality under Section 5(b)(i)(1) or a Tax Event occurs
and there are two Affected Parties, each party will use all reasonable efforts to reach
agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to
avoid that Termination Event.

(iv) Right to Terminate. If:—

(1) a transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the
case may be, has not been effected with respect to all Affected Transactions within 30
days after an Affected Party gives notice under Section 6(b)(i); or

(2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an Additional
Termination Event occurs, or a Tax Event Upon Merger occurs and the Burdened Party is
not the Affected Party,

either party in the case of an Illegality, the Burdened Party in the case of a Tax Event
Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination
Event if there is more than one Affected Party, or the party which is not the Affected Party
in the case of a Credit Event Upon Merger or an Additional Termination Event if there is
only one Affected Party may, by not more than 20 days notice to the other party and provided
that the relevant Termination Event is then continuing, designate a day not earlier than the day such notice is effective as an Early
Termination Date in respect of all Affected Transactions.

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(c) Effect of Designation.

(i) If notice designating an Early Termination Date is given under Section 6(a) or (b), the
Early Termination Date will occur on the date so designated, whether or not the relevant
Event of Default or Termination Event is then continuing.

(ii) Upon the occurrence or effective designation of an Early Termination Date, no further
payments or deliveries under Section 2(a)(i) or 2(e) in respect of the Terminated
Transactions will be required to be made, but without prejudice to the other provisions of
this Agreement. The amount, if any, payable in respect of an Early Termination Date shall be
determined pursuant to Section 6(e).

(d) Calculations.

(i) Statement. On or as soon as reasonably practicable following the occurrence of an Early
Termination Date, each party will make the calculations on its part, if any, contemplated by
Section 6(e) and will provide to the other party a statement (1) showing, in reasonable
detail, such calculations (including all relevant quotations and specifying any amount
payable under Section 6(e)) and (2) giving details of the relevant account to which any
amount payable to it is to be paid. In the absence of written confirmation from the source
of a quotation obtained in determining a Market Quotation, the records of the party
obtaining such quotation will be conclusive evidence of the existence and accuracy of such
quotation.

(ii) Payment Date. An amount calculated as being due in respect of any Early Termination
Date under Section 6(e) will be payable on the day that notice of the amount payable is
effective (in the case of an Early Termination Date which is designated or occurs as a
result of an Event of Default) and on the day which is two Local Business Days after the day
on which notice of the amount payable is effective (in the case of an Early Termination Date
which is designated as a result of a Termination Event). Such amount will be paid together
with (to the extent permitted under applicable law) interest thereon (before as well as
after judgment) in the Termination Currency, from (and including) the relevant Early
Termination Date to (but excluding) the date such amount is paid, at the Applicable Rate.
Such interest will be calculated on the basis of daily compounding and the actual number of
days elapsed.

(e) Payments on Early Termination. If an Early Termination Date occurs, the following provisions
shall apply based on the parties’ election in the Schedule of a payment measure, either “Market
Quotation” or “Loss”, and a payment method, either the “First Method” or the “Second Method”. If
the parties fail to designate a payment measure or payment method in the Schedule, it will be
deemed that “Market Quotation” or the “Second Method”, as the case may be, shall apply. The amount,
if any, payable in respect of an Early Termination Date and determined pursuant to this Section
will be subject to any Set-off.

(i) Events of Default. If the Early Termination Date results from an Event of Default:—

(1) First Method and Market Quotation. If the First Method and Market Quotation apply,
the Defaulting Party will pay to the Non-defaulting Party the excess, if a positive
number, of (A) the sum of the Settlement Amount (determined by the Non-defaulting
Party) in respect of the Terminated Transactions and the Termination Currency
Equivalent of the Unpaid Amounts owing to the Non-defaulting Party over (B) the
Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party.

(2) First Method and Loss. If the First Method and Loss apply, the Defaulting Party
will pay to the Non-defaulting Party, if a positive number, the Non-defaulting Party’s
Loss in respect of this Agreement.

(3) Second Method and Market Quotation. If the Second Method and Market Quotation
apply, an amount will be payable equal to (A) the sum of the Settlement Amount
(determined by the Non-defaulting Party) in respect of the Terminated Transactions and
the Termination Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting
Party less (B) the Termination Currency Equivalent of the Unpaid Amounts owing to the
Defaulting Party. If that amount is a positive number, the Defaulting Party will pay it
to the Non-defaulting Party; if it is a negative number, the Non-defaulting Party will
pay the absolute value of that amount to the Defaulting Party.

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(4) Second Method and Loss. If the Second Method and Loss apply, an amount will be payable
equal to the Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a
negative number, the Non-defaulting Party will pay the absolute value of that amount to the
Defaulting Party.

(ii) Termination Events. If the Early Termination Date results from a Termination Event:—

(1) One Affected Party. If there is one Affected Party, the amount payable will be determined
in accordance with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if
Loss applies, except that, in either case, references to the Defaulting Party and to the
Non-defaulting Party will be deemed to be references to the Affected Party and the party which
is not the Affected Party, respectively, and, if Loss applies and fewer than all the
Transactions are being terminated, Loss shall be calculated in respect of all Terminated
Transactions.

(2) Two Affected Parties. If there are two Affected Parties:—

(A) if Market Quotation applies, each party will determine a Settlement Amount in respect
of the Terminated Transactions, and an amount will be payable equal to (I) the sum of (a)
one-half of the difference between the Settlement Amount of the party with the higher
Settlement Amount (“X”) and the Settlement Amount of the party with the lower Settlement
Amount (“Y”) and (b) the Termination Currency Equivalent of the Unpaid Amounts owing to X
less (II) the Termination Currency Equivalent of the Unpaid Amounts owing to Y; and

(B) if Loss applies, each party will determine its Loss in respect of this Agreement (or,
if fewer than all the Transactions are being terminated, in respect of all Terminated
Transactions) and an amount will be payable equal to one-half of the difference between
the Loss of the party with the higher Loss (“X”) and the Loss of the party with the lower
Loss (“Y”).

If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X
will pay the absolute value of that amount to Y.

(iii) Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs because
“Automatic Early Termination” applies in respect of a party, the amount determined under this
Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to reflect
any payments or deliveries made by one party to the other under this Agreement (and retained by
such other party) during the period from the relevant Early Termination Date to the date for
payment determined under Section 6(d)(ii).

(iv) Pre-Estimate. The parties agree that if Market Quotation applies an amount recoverable under
this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is payable
for the loss of bargain and the loss of protection against future risks and except as otherwise
provided in this Agreement neither party will be entitled to recover any additional damages as a
consequence of such losses.

7. Transfer

Subject to Section 6(b)(ii), neither this Agreement nor any interest or obligation in or under this
Agreement may be transferred (whether by way of security or otherwise) by either party without the
prior written consent of the other party, except that:—

(a) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation
with, or merger with or into, or transfer of all or substantially all its assets to, another entity
(but without prejudice to any other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any amount payable to it
from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

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8. Contractual Currency

(a) Payment in the Contractual Currency. Each payment under this Agreement will be made in the
relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To the
extent permitted by applicable law, any obligation to make payments under this Agreement in the
Contractual Currency will not be discharged or satisfied by any tender in any currency other than
the Contractual Currency, except to the extent such tender results in the actual receipt by the
party to which payment is owed, acting in a reasonable manner and in good faith in converting the
currency so tendered into the Contractual Currency, of the full amount in the Contractual Currency
of all amounts payable in respect of this Agreement. If for any reason the amount in the
Contractual Currency so received falls short of the amount in the Contractual Currency payable in
respect of this Agreement, the party required to make the payment will, to the extent permitted by
applicable law, immediately pay such additional amount in the Contractual Currency as may be
necessary to compensate for the shortfall. If for any reason the amount in the Contractual Currency
so received exceeds the amount in the Contractual Currency payable in respect of this Agreement,
the party receiving the payment will refund promptly the amount of such excess.

(b) Judgments. To the extent permitted by applicable law, if any judgment or order expressed in a
currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in
respect of this Agreement, (ii) for the payment of any amount relating to any early termination in
respect of this Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in (i) or (ii) above, the party seeking recovery, after recovery in
full of the aggregate amount to which such party is entitled pursuant to the judgment or order,
will be entitled to receive immediately from the other party the amount of any shortfall of the
Contractual Currency received by such party as a consequence of sums paid in such other currency
and will refund promptly to the other party any excess of the Contractual Currency received by such
party as a consequence of sums paid in such other currency if such shortfall or such excess arises
or results from any variation between the rate of exchange at which the Contractual Currency is
converted into the currency of the judgment or order for the purposes of such judgment or order and
the rate of exchange at which such party is able, acting in a reasonable manner and in good faith
in converting the currency received into the Contractual Currency, to purchase the Contractual
Currency with the amount of the currency of the judgment or order actually received by such party.
The term “rate of exchange” includes, without limitation, any premiums and costs of exchange
payable in connection with the purchase of or conversion into the Contractual Currency.

(c) Separate Indemnities. To the extent permitted by applicable law, these indemnities constitute
separate and independent obligations from the other obligations in this Agreement, will be
enforceable as separate and independent causes of action, will apply notwithstanding any indulgence
granted by the party to which any payment is owed and will not be affected by judgment being
obtained or claim or proof being made for any other sums payable in respect of this Agreement.

(d) Evidence of Loss. For the purpose of this Section 8, it will be sufficient for a party to
demonstrate that it would have suffered a loss had an actual exchange or purchase been made.

9. Miscellaneous

(a) Entire Agreement. This Agreement constitutes the entire agreement and understanding of the
parties with respect to its subject matter and supersedes all oral communication and prior writings
with respect thereto.

(b) Amendments. No amendment, modification or waiver in respect of this Agreement will be effective
unless in writing (including a writing evidenced by a facsimile transmission) and executed by each
of the parties or confirmed by an exchange of telexes or electronic messages on an electronic
messaging system.

(c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations
of the parties under this Agreement will survive the termination of any Transaction.

(d) Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and
privileges provided in this Agreement are cumulative and not exclusive of any rights, powers,
remedies and privileges provided by law.

(e) Counterparts and Confirmations.

(i) This Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission), each of which will be
deemed an original.

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(ii) The parties intend that they are legally bound by the terms of each Transaction from
the moment they agree to those terms (whether orally or otherwise). A Confirmation shall be
entered into as soon as practicable and may be executed and delivered in counterparts
(including by facsimile transmission) or be created by an exchange of telexes or by an
exchange of electronic messages on an electronic messaging system, which in each case will
be sufficient for all purposes to evidence a binding supplement to this Agreement. The
parties will specify therein or through another effective means that any such counterpart,
telex or electronic message constitutes a Confirmation.

(f) No Waiver of Rights. A failure or delay in exercising any right, power or privilege in respect
of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of
any right, power or privilege will not be presumed to preclude any subsequent or further exercise,
of that right, power or privilege or the exercise of any other right, power or privilege.

(g) Headings. The headings used in this Agreement are for convenience of reference only and are not
to affect the construction of or to be taken into consideration in interpreting this Agreement.

10. Offices; Multibranch Parties

(a) If Section 10(a) is specified in the Schedule as applying, each party that enters into a
Transaction through an Office other than its head or home office represents to the other party
that, notwithstanding the place of booking office or jurisdiction of incorporation or organisation
of such party, the obligations of such party are the same as if it had entered into the Transaction
through its head or home office. This representation will be deemed to be repeated by such party on
each date on which a Transaction is entered into.

(b) Neither party may change the Office through which it makes and receives payments or deliveries
for the purpose of a Transaction without the prior written consent of the other party.

(c) If a party is specified as a Multibranch Party in the Schedule, such Multibranch Party may make
and receive payments or deliveries under any Transaction through any Office listed in the Schedule,
and the Office through which it makes and receives payments or deliveries with respect to a
Transaction will be specified in the relevant Confirmation.

11. Expenses

A Defaulting Party will, on demand, indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other party
by reason of the enforcement and protection of its rights under this Agreement or any Credit
Support Document to which the Defaulting Party is a party or by reason of the early termination of
any Transaction, including, but not limited to, costs of collection.

12. Notices

(a) Effectiveness. Any notice or other communication in respect of this Agreement may be given in
any manner set forth below (except that a notice or other communication under Section 5 or 6 may
not be given by facsimile transmission or electronic messaging system) to the address or number or
in accordance with the electronic messaging system details provided (see the Schedule) and will be
deemed effective as indicated:—

(i) if in writing and delivered in person or by courier, on the date it is delivered;

(ii) if sent by telex, on the date the recipient’s answerback is received;

(iii) if sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the burden of
proving receipt will be on the sender and will not be met by a transmission report generated
by the sender’s facsimile machine);

(iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery is attempted;
or

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(v) if sent by electronic messaging system, on the date that electronic message is received,

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a
Local Business Day or that communication is delivered (or attempted) or received, as applicable,
after the close of business on a Local Business Day, in which case that communication shall be
deemed given and effective on the first following day that is a Local Business Day.

(b) Change of Addresses. Either party may by notice to the other change the address, telex or
facsimile number or electronic messaging system details at which notices or other communications
are to be given to it.

13. Governing Law and Jurisdiction

(a) Governing Law. This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.

(b) Jurisdiction. With respect to any suit, action or proceedings relating to this Agreement
(“Proceedings”), each party irrevocably:—

(i) submits to the jurisdiction of the English courts, if this Agreement is expressed to be governed by English law, or to the non-exclusive jurisdiction of the courts of the State of New York
and the United States District Court located in the Borough of Manhattan in New York City, if this
Agreement is expressed to be governed by the laws of the State of New York; and

(ii) waives any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings have been
brought in an inconvenient forum and further waives the right to object, with respect to
such Proceedings, that such court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in any other
jurisdiction (outside, if this Agreement is expressed to be governed by English law, the
Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or
any modification, extension or re-enactment thereof for the time being in force) nor will the
bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in
any other jurisdiction.

(c) Service of Process. Each party irrevocably appoints the Process Agent (if any) specified
opposite its name in the Schedule to receive, for it and on its behalf, service of process in any
Proceedings. If for any reason any party’s Process Agent is unable to act as such, such party will
promptly notify the other party and within 30 days appoint a substitute process agent acceptable to
the other party. The parties irrevocably consent to service of process given in the manner provided
for notices in Section 12. Nothing in this Agreement will affect the right of either party to serve
process in any other manner permitted by law.

(d) Waiver of Immunities. Each party irrevocably waives, to the fullest extent permitted by
applicable law, with respect to itself and its revenues and assets (irrespective of their use or
intended use), all immunity on the grounds of sovereignty or other similar grounds from (i) suit,
(ii) jurisdiction of any court, (iii) relief by way of injunction, order for specific performance
or for recovery of property, (iv) attachment of its assets (whether before or after judgment) and
(v) execution or enforcement of any judgment to which it or its revenues or assets might otherwise
be entitled in any Proceedings in the courts of any jurisdiction and irrevocably agrees, to the
extent permitted by applicable law, that it will not claim any such immunity in any Proceedings.

14. Definitions

As used in this Agreement:—

“Additional Termination Event” has the meaning specified in Section 5(b).

“Affected Party” has the meaning specified in Section 5(b).

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“Affected Transactions” means (a) with respect to any Termination Event consisting of an
Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such
Termination Event and (b) with respect to any other Termination Event, all Transactions.

“Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled,
directly or indirectly, by the person, any entity that controls, directly or indirectly, the person
or any entity directly or indirectly under common control with the person. For this purpose,
“control” of any entity or person means ownership of a majority of the voting power of the entity
or person.

“Applicable Rate” means:—

(a) in respect of obligations payable or deliverable (or which would have been but for Section
2(a)(iii)) by a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either party from and after
the date (determined in accordance with Section 6(d)(ii)) on which that amount is payable, the
Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and

(d) in all other cases, the Termination Rate.

“Burdened Party” has the meaning specified in Section 5(b).

“Change in Tax Law” means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation of any law) that
occurs on or after the date on which the relevant Transaction is entered into.

“consent” includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

“Credit Event Upon Merger” has the meaning specified in Section 5(b).

“Credit Support Document” means any agreement or instrument that is specified as such in this
Agreement.

“Credit Support Provider” has the meaning specified in the Schedule.

“Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual
cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant
amount plus 1% per annum.

“Defaulting Party” has the meaning specified in Section 6(a).

“Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv).

“Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule.

“Illegality” has the meaning specified in Section 5(b).

“Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the jurisdiction of the
government or taxation authority imposing such Tax and the recipient of such payment or a person
related to such recipient (including, without limitation, a connection arising from such recipient
or related person being or having been a citizen or resident of such jurisdiction, or being or
having been organised, present or engaged in a trade or business in such jurisdiction, or having or
having had a permanent establishment or fixed place of business in such jurisdiction, but excluding
a connection arising solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this Agreement or a Credit
Support Document).

“law” includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by the
practice of any relevant governmental revenue authority) and “lawful” and “unlawful” will be
construed accordingly.

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“Local Business Day” means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to
any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or, if
not so specified, as otherwise agreed by the parties in writing or determined pursuant to
provisions contained, or incorporated by reference, in this Agreement, (b) in relation to any other
payment, in the place where the relevant account is located and, if different, in the principal
financial centre, if any, of the currency of such payment, (c) in relation to any notice or other
communication, including notice contemplated under Section 5(a)(i), in the city specified in the
address for notice provided by the recipient and, in the case of a notice contemplated by Section
2(b), in the place where the relevant new account is to be located and (d) in relation to Section
5(a)(v)(2), in the relevant locations for performance with respect to such Specified Transaction.

“Loss” means, with respect to this Agreement or one or more Terminated Transactions, as the case
may be, and a party, the Termination Currency Equivalent of an amount that party reasonably
determines in good faith to be its total losses and costs (or gain, in which case expressed as a
negative number) in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at
the election of such party but without duplication, loss or cost incurred as a result of its
terminating, liquidating, obtaining or reestablishing any hedge or related trading position (or any
gain resulting from any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each applicable condition
precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid
duplication, if Section 6(e)(i)(l) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include a
party’s legal fees and out-of-pocket expenses referred to under Section 11. A party will determine
its Loss as of the relevant Early Termination Date, or, if that is not reasonably practicable, as
of the earliest date thereafter as is reasonably practicable. A party may (but need not) determine
its Loss by reference to quotations of relevant rates or prices from one or more leading dealers in
the relevant markets.

“Market Quotation” means, with respect to one or more Terminated Transactions and a party making
the determination, an amount determined on the basis of quotations from Reference Market-makers.
Each quotation will be for an amount, if any, that would be paid to such party (expressed as a
negative number) or by such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document with respect to the
obligations of such party) and the quoting Reference Market-maker to enter into a transaction (the
“Replacement Transaction”) that would have the effect of preserving for such party the economic
equivalent of any payment or delivery (whether the underlying obligation was, absolute or
contingent and assuming the satisfaction of each applicable condition precedent) by the parties
under Section 2(a)(i) in respect of such Terminated Transaction or group of Terminated Transactions
that would, but for the occurrence of the relevant Early Termination Date, have been required after
that date. For this purpose, Unpaid Amounts in respect of the Terminated Transaction or group of
Terminated Transactions are to be excluded but, without limitation, any payment or delivery that
would, but for the relevant Early Termination Date, have been required (assuming satisfaction of
each applicable condition precedent) after that Early Termination Date is to be included. The
Replacement Transaction would be subject to such documentation as such party and the Reference
Market-maker may, in good faith, agree. The party making the determination (or its agent) will
request each Reference Market-maker to provide its quotation to the extent reasonably practicable
as of the same day and time (without regard to different time zones) on or as soon as reasonably
practicable after the relevant Early Termination Date. The day and time as of which those
quotations are to be obtained will be selected in good faith by the party obliged to make a
determination under Section 6(e), and, if each party is so obliged, after consultation with the
other. If more than three quotations are provided, the Market Quotation will be the arithmetic mean
of the quotations, without regard to the quotations having the highest and lowest values. If
exactly three such quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more than one quotation
has the same highest value or lowest value, then one of such quotations shall be disregarded. If
fewer than three quotations are provided, it will be deemed that the Market Quotation in respect of
such Terminated Transaction or group of Terminated Transactions cannot be determined.

“Non-default Rate” means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant
amount.

“Non-defaulting Party” has the meaning specified in Section 6(a).

“Office” means a branch or office of a party, which may be such party’s head or home office.

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“Potential Event of Default” means any event which, with the giving of notice or the lapse of time
or both, would constitute an Event of Default.

“Reference Market-makers” means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the highest credit standing
which satisfy all the criteria that such party applies generally at the time in deciding whether to
offer or to make an extension of credit and (b) to the extent practicable, from among such dealers
having an office in the same city.

“Relevant Jurisdiction” means, with respect to a party, the jurisdictions (a) in which the party is
incorporated, organised, managed and controlled or considered to have its seat, (b) where an Office
through which the party is acting for purposes of this Agreement is located, (c) in which the party
executes this Agreement and (d) in relation to any payment, from or through which such payment is
made.

“Scheduled Payment Date” means a date on which a payment or delivery is to be made under Section
2(a)(i) with respect to a Transaction.

“Set-off’ means set-off, offset, combination of accounts, right of retention or withholding or
similar right or requirement to which the payer of an amount under Section 6 is entitled or subject
(whether arising under this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

“Settlement Amount” means, with respect to a party and any Early Termination Date, the sum of:—

(a) the Termination Currency Equivalent of the Market Quotations (whether positive or negative) for
each Terminated Transaction or group of Terminated Transactions for which a Market Quotation is
determined; and

(b) such party’s Loss (whether positive or negative and without reference to any Unpaid Amounts)
for each Terminated Transaction or group of Terminated Transactions for which a Market Quotation
cannot be determined or would not (in the reasonable belief of the party making the determination)
produce a commercially reasonable result.

“Specified Entity” has the meaning specified in the Schedule.

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or
future, contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money.

“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an agreement
with respect thereto) now existing or hereafter entered into between one party to this Agreement
(or any Credit Support Provider of such party or any applicable Specified Entity of such party) and
the other party to this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap transaction, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or
equity index option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, currency swap transaction, cross-currency rate
swap transaction, currency option or any other similar transaction (including any option with
respect to any of these transactions), (b) any combination of these transactions and (c) any other
transaction identified as a Specified Transaction in this Agreement or the relevant confirmation.

“Stamp Tax” means any stamp, registration, documentation or similar tax.

“Tax” means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest, penalties and additions thereto) that is imposed by any government or other
taxing authority in respect of any payment under this Agreement other than a stamp, registration,
documentation or similar tax.

“Tax Event” has the meaning specified in Section 5(b).

“Tax Event Upon Merger” has the meaning specified in Section 5(b).

“Terminated Transactions” means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all
Transactions (in either case) in effect immediately before the effectiveness of the notice designating that
Early Termination Date (or, if “Automatic Early Termination” applies, immediately before that Early Termination
Date).

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“Termination Currency” has the meaning specified in the Schedule.

“Termination Currency Equivalent” means, in respect of any amount denominated in the Termination
Currency, such Termination Currency amount and, in respect of any amount denominated in a currency
other than the Termination Currency (the “Other Currency”), the amount in the Termination Currency
determined by the party making the relevant determination as being required to purchase such amount
of such Other Currency as at the relevant Early Termination Date, or, if the relevant Market
Quotation or Loss (as the case may be), is determined as of a later date, that later date, with the
Termination Currency at the rate equal to the spot exchange rate of the foreign exchange agent
(selected as provided below) for the purchase of such Other Currency with the Termination Currency
at or about 11:00 a.m. (in the city in which such foreign exchange agent is located) on such date
as would be customary for the determination of such a rate for the purchase of such Other Currency
for value on the relevant Early Termination Date or that later date. The foreign exchange agent
will, if only one party is obliged to make a determination under Section 6(e), be selected in good
faith by that party and otherwise will be agreed by the parties.

“Termination Event” means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to
be applicable, a Credit Event Upon Merger or an Additional Termination Event.

“Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if it were to fund or of
funding such amounts.

“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate
of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to
such Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in
respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or
would have been but for Section 2(a)(iii)) required to be settled by delivery to such party on or
prior to such Early Termination Date and which has not been so settled as at such Early Termination
Date, an amount equal to the fair market \value of that which was (or would have been) required to
be delivered as of the originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such amounts, from (and
including) the date such amounts or obligations were or would have been required to have been paid
or performed to (but excluding) such Early Termination Date, at the Applicable Rate. Such amounts
of interest will be calculated on the basis of daily compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above shall be
reasonably determined by the party obliged to make the determination under Section 6(e) or, if each
party is so obliged, it shall be the average of the Termination Currency Equivalents of the fair
market values reasonably determined by both parties.

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IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

	 	 	 	 	 	 	 
	WELLS FARGO BANK, N.A.	 	AMERICAN REPROGRAPHICS COMPANY, L.L.C.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By:

	 	/s/ Susan Payunk	 	By:	 	/s/ Kumarakulasingam Suriyakumar
	 
	 	 	 	 	 	 
	Name:
	 	Susan Payunk	 	Name:	 	Kumarakulasingam Suriyakumar
	Title:
	 	Vice President	 	Its:	 	Chief Executive Officer
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	AMERICAN REPROGRAPHICS COMPANY
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	By:	 	/s/ Kumarakulasingam Suriyakumar
	 
	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Kumarakulasingam Suriyakumar
	 

	 	 	 	Its:
	 	Chief Executive Officer

ISDA â 1992

 

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SCHEDULE

to the

ISDA MASTER AGREEMENT

This is the
Schedule to that certain ISDA Master Agreement dated as of December 19,
2007 between WELLS FARGO BANK, N.A. (“Party A”) and
AMERICAN REPROGRAPHICS COMPANY, L.L.C. AND AMERICAN REPROGRAPHICS COMPANY,
on a joint and several basis (each individually defined herein as a
“Party B Group Member” and collectively defined herein as
“Party B”).

PART 1

Termination Provisions

In this Agreement:

(A) “Specified Entity” does not apply
to Party A and shall mean any “Subsidiary”, as defined in the
Credit Agreement (as defined herein), in respect to each Party B Group Member.

(B) “Specified Transaction” will have
the meaning specified in Section 14 of this Agreement.

(C) The
“Cross-Default” provisions of Section 5(a)(vi) of this
Agreement will apply to Party A and to each Party B Group Member, provided,
however, the phrase “or becoming capable at such time of being
declared” shall be deleted from clause (1) of such
Section 5(a)(vi).

“Specified
Indebtedness” means any obligation (whether present or future, contingent
or otherwise, as principal or surety or otherwise) for the payment or repayment
of any money; provided, however, with respect to Party A such term shall
not include deposits and obligations in respect of deposits received in the
ordinary course of Party A’s banking business

“Threshold
Amount” means with respect to Party A, an amount equal to 3% of the
Shareholders Equity (as hereinafter defined) of Party A and with respect to
each Party B Group Member, in connection with any Specified Indebtedness
payable by each Party B Group Member, any Credit Support Provider of Party B,
and any Specified Entity of Party B to Party A or its Affiliates, zero, and in
connection with any other Specified Indebtedness, $1,000,000.00.

“Shareholders’ Equity” means, with respect to
an entity, at any time, the sum (as shown in its most recent annual audited
financial statements) of (i) its capital stock (including preferred stock
outstanding, taken at par value), (ii) its capital surplus and
(iii) its retained earnings, minus (iv) treasury stock, each to be
determined in accordance with generally accepted accounting principles.

(D) The
“Credit Event Upon Merger” provisions of
Section 5(b)(iv) of this Agreement will apply to Party A and to each Party
B Group Member.

(E) The
“Automatic Early Termination” provision of Section 6(a) of
this Agreement will not apply to Party A or to Party B.

(F) Payments on Early Termination. For the purpose
of Section 6(e) of this Agreement: (i) Loss will apply and
(ii) Second Method will apply.

(G) “Termination Currency” means United
States Dollars.

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(H) Additional
Termination Event will apply. Each of the following shall constitute an
Additional Termination Event:

(i) Party B has repaid all amounts owed to Party A under
that certain Credit Agreement dated as of December 6, 2007, among American
Reprographics Company, L.L.C. as Borrower, American Reprographics Company as
Guarantor, certain Subsidiaries of Party B as Guarantors, the Lenders party
thereto, JPMorgan Chase Bank, N.A. as Administrative Agent and Collateral
Agent, J.P. Morgan Securities Inc., and Wachovia Capital Markets, LLC, as Joint
Bookrunners and Joint Lead Arrangers and Wachovia Bank, National Association as
Syndication Agent (as amended, supplemented, modified, replaced or restated
from time to time, the “Credit Agreement”), and Party A has no
further obligation to provide any additional credit extension to Party B
thereunder, unless Party B executes a Credit Support Document securing the
Transactions under this Agreement in form and substance reasonably acceptable
to Party A. Upon the occurrence of such event, Party B shall be deemed to be
the sole Affected Party and all Transactions shall be deemed to be Affected
Transactions;

(ii) Party A is no longer a “Lender” (as so
defined therein) under the Credit Agreement. Upon the occurrence of such event,
Party B shall be deemed to be the sole Affected Party and all Transactions
shall be deemed to be Affected Transactions; or

(iii) Key Agreements. Any promissory note, loan
agreement, credit agreement reimbursement agreement or other document or
instrument evidencing a credit extension from Party A to Party B is terminated,
cancelled, voided, breached or amended in any manner which would affect
Party’s B ability to perform its obligations under this Agreement,
determined by Party A in its reasonably discretion. Upon the occurrence of such
event, Party B shall be deemed to be the sole Affected Party and all
Transactions shall be deemed to be Affected Transactions.

PART 2

Tax Representations

(A) Payer
Representations. For the purpose of Section 3(e) of this Agreement,
each party makes the following representation:

It is not required
by any applicable law, as modified by the practice of any relevant governmental
revenue authority, of any Relevant Jurisdiction to make any deduction or
withholding for or on account of any Tax from any payment (other than interest
under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it
to the other party under this Agreement. In making this representation, it may
rely on (i) the accuracy of any representations made by the other party
pursuant to Section 3(f) of this Agreement, (ii) the satisfaction of
the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement
and the accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement and
(iii) the satisfaction of the agreement of the other party contained in
Section 4(d) of this Agreement, provided that it shall not be a
breach of this representation where reliance is placed on clause (ii) and
the other party does not deliver a form or document under
Section 4(a)(iii) by reason of material prejudice to its legal or
commercial position.

(B) Payee
Representations. For the purpose of Section 3(f) of this
Agreement, Party A represents that it is a national banking association.

For the purpose of
Section 3(f) of this Agreement, Party B represents that:

	 	(i)	 	
American Reprographics Company, L.L.C. is a
limited liability company established under the laws of the State of
California; and

	 	(ii)	 	
American Reprographics Company is a
corporation established under the laws of the State of Delaware.

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2

 

PART 3

Agreement to Deliver
Documents

For the purposes of
Section 4(a)(i) and (ii) of this Agreement, the parties agrees that
the following documents will be delivered:

	 	 	 	 	 	 	 
	Party Required to	 	 	 	Date by which	 	Covered by Section
	Deliver Document	 	Form/Document/Certificate	 	to be delivered	 	3(d) Representation
	Party B 
	 	Satisfactory evidence of its capacity and
ability to enter into this Agreement and any Transaction hereunder 	 	Upon execution of this Agreement and upon request	 	Yes
	 	 	 	 	 	 	 
	Party B 
	 	Certified evidence of the authority, incumbency
and specimen signature of each person executing any document on its behalf in
connection with this Agreement 	 	Upon execution of this Agreement and upon request	 	Yes
	 	 	 	 	 	 	 
	Party B 
	 	IRS Form W-9, or any successor form thereto 	 	Concurrent with the execution of this
Agreement, promptly upon reasonable demand by Party A and promptly upon
learning that any such form previously provided by Party B has become obsolete
or incorrect. 	 	Yes
	 	 	 	 	 	 	 
	Party B 
	 	The Credit Support Document(s), if any, listed
in Part 4(f) of this Schedule 	 	Upon execution of this Agreement	 	Yes

PART 4

Miscellaneous

(A) Addresses for Notices. For the purpose of
Section 12(a) of this Agreement:

Address for notices
or communications to Party B:

Address:  American
Reprographics Company, L.L.C.

American
Reprographics Company 

700 North Central Avenue - Suite 550

Glendale, CA 91203 

Attention: Steve Biernbaum 

Telephone:
(818) 500-0225 

Fax: (818) 500-0195

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3

 

Address for notices
or communications to Party A:

	 	 	 
	Address: 
	 	Wells Fargo Bank, N.A.

Financial Products (AU #1857)

550 California Street, 12th Floor

MAC A0112-121

San Francisco, California 94104

Telecopy No.: (415) 986-2604

Confirmation No.: (415) 222-3847

Attention: Documentation Group
	 	 	 
	Additional Address for notices or
communications for operational purposes (payments and settlements):
	 	 	 
	Address:
	 	Wells Fargo Bank, N.A.

550 California Street, 12th Floor

MAC A0112-121

San Francisco, California 94104

Facsimile No.: (415) 646-9208

Attention: Back Office Operations — Settlements

(B) Process
Agent. For the purpose of Section 13(c) of the Agreement, neither Party A
nor Party B will appoint a Process Agent.

(C) Offices. The provisions of Section 10(a) will
apply to this Agreement.

(D) Multibranch Party. For the purpose of
Section 10(c) of this Agreement:

Party A is not a
Multibranch Party.

Party B is not a Multibranch Party.

(E) Calculation Agent. The Calculation Agent
is Party A.

(F) Credit Support Document.

Credit Support Document means, in relation to Party A: None.

Credit Support Document means, in relation to Party B:

	 	(i)	 	The Credit Agreement, as defined herein;

	 	 	 	 
	 	(ii)	 	The “Guaranty”, as defined in the Credit Agreement;

	 	 	 	 
	 	(iii)	 	The “Collateral Documents”, as defined in the Credit Agreement;

	 	 	 	 
	 	(iii)	 	Each document, entered into from time to time,
which secures the loans made pursuant to the Credit Agreement and Note
Agreement; and

	 	(iv)	 	
Each document or instrument entered into from
time to time between Party A and Party B (or any Credit Support Provider of
Party B) which, by its terms, secures, guarantees or otherwise supports Party
B’s obligations hereunder from time to time, whether or not this
Agreement, or any Transaction entered into hereunder is specifically referenced
or described in such document or instrument.

22

4

 

(G) Credit
Support Provider.

Credit Support
Provider means in relation to Party A: None.

Credit Support
Provider means in relation to Party B: each “Guarantor”, as defined
in the Credit Agreement.

(H) Governing Law. This Agreement will be governed
by and construed in accordance with the laws of the State of New York without
reference to choice of law doctrine.

(I) Netting
of Payments. Subparagraph (ii) of Section 2(c) of this Agreement will
apply to the Transactions.

(J) “Affiliate” shall have the meaning
specified in Section 14 of this Agreement; provided, however, that Party A
shall not have any Affiliates for purposes of this Agreement.

PART 5

Other Provisions

(A) Confirmations. Notwithstanding anything to the
contrary in this Agreement:

(i) The parties hereto agree that with respect to each
Transaction hereunder a legally binding agreement shall exist from the moment
that the parties hereto agree on the essential terms of such Transaction, which
the parties anticipate will occur by telephone.

(ii) For each Transaction Party A and Party B agree to
enter into hereunder, Party A shall promptly send to Party B a Confirmation
setting forth the terms of such Transaction. Party B shall execute and return
the Confirmation to Party A or request correction of any error within three
Business Days of receipt. Failure of Party B to respond within such period
shall not affect the validity or enforceability of such Transaction and shall
be deemed to be an affirmation of such terms.

(B) ISDA
Definitions. Unless otherwise specified in a Confirmation, this Agreement,
each Confirmation, and each Transaction are subject to and governed by the 2000
ISDA Definitions (“2000 Definitions”) and the 2005 ISDA Commodity
Derivatives Definitions (“Commodity Definitions”), in each case
published by the International Swaps and Derivatives Association, Inc.
(“ISDA”) as each has been or may be amended, supplemented, updated,
or restated. The provisions of the 2000 Definitions and the Commodity
Definitions are incorporated by reference in and made part of this Agreement
and each Confirmation as if set forth in full in this Agreement and each
Confirmation.

In the event of any
inconsistency between the definitions or provisions in any of the following
documents, the relevant document first listed below shall govern: (i) a
Confirmation (with respect only to definitions in such Confirmation; provided,
however, that other provisions in a Confirmation will govern over inconsistent
provisions in the following documents to the extent that such Confirmation
explicitly states its intent to modify the following documents); (ii) the
Schedule to the ISDA Master Agreement; (iii) the ISDA Master Agreement
(iv) the Commodity Definitions and (v) the 2000 Definitions. For
purposes of this Agreement, all references in the Definitions to “Swap
Transactions” shall be deemed references to any Transaction under this
Agreement.

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(C) Additional Representations. Section 3 of
this Agreement is hereby amended by adding at the end thereof the following
subsections (g) through (l):

“(g)
Eligible Contract Participant. It is either an “eligible
contract participant” as that term is defined in Section 1a(12) of
the Commodity Exchange Act (7 U.S.C. 1a(12)) and was not formed solely for the
purposes of constituting an “eligible contract participant, or if it is
not an eligible contract participant, this Agreement (including each
Transaction) is undertaken in conjunction with its line of business (including
financial intermediation services) or the financing of its business.”

“(h) No
Agency. It is entering into this Agreement, any Credit Support Document
to which it is a party, each Transaction and any other documentation relating
to this Agreement or any Transaction as principal (and not as agent or in any
other capacity, fiduciary or otherwise).”

“(i)
Creditworthiness. The economic terms of this Agreement, and any
Credit Support Documents to which it is a party, and each Transaction have been
individually tailored and negotiated by it, and the creditworthiness of the
other party was a material consideration in its entering into or determining
the terms of this Agreement, such Credit Support document, and such
Transaction.”

“(j)
Individual Negotiation. This Agreement (including each
Transaction) has been subject to individual negotiation by the parties,
including individualized creditworthiness determinations.”

“(k)
Assessment and Understanding. It is capable of assessing the
merits of and understanding (on its own behalf or through independent
professional advice), and understands and accepts the terms, conditions and
risks of this Agreement and each Transaction hereunder. It is also capable of
assuming, and assumes, the risks of this Agreement and each Transaction
hereunder.”

“(l)
Non-Reliance. It is acting for its own account, and it has made
its own independent decisions to enter into that Transaction and as to whether
that Transaction is appropriate or proper for it based upon its own judgment
and upon advice from such advisers as it has deemed necessary. It is not
relying on any communication (written or oral) of the other party as investment
advice or as a recommendation to enter into that Transaction: it being
understood that information and explanations related to the terms and
conditions of a Transaction shall not be considered investment advice or a
recommendation to enter into a Transaction. No communication (written or oral)
received from the other party shall be deemed to be an assurance or guarantee
of the expected results of that Transaction.”

(D) Right
of Setoff. Section 6 of this Agreement is amended by adding the
following new Section 6(f):

	 	 	 	
“(f) Set-off. Any amount
(the “Early Termination Amount”) payable under Section 6(e) by
one party (“Party X”) or its Affiliates to other party that is
either the Defaulting Party or the one Affected Party (“Party Y”),
will, at the option of Party X (and without prior notice to Party Y), be
reduced by its set-off against any amount(s) (the “Other Agreement
Amount”) payable (whether at such time or in the future or upon the
occurrence of a contingency) by Party Y to Party X or its Affiliates
(irrespective of the currency, place of payment or booking office of the
obligation) under any other agreement(s) between Party X and its Affiliates and
Party Y or instrument(s) or undertaking(s) issued or executed by one party to,
or in favor of, the other party (and the Other Agreement Amount will be
discharged promptly and in all respects to the extent it is so set-off). Party
X will give notice to the other party of any set-off effected under this
Section 6(f).

For this purpose,
either the Early Termination Amount or the Other Agreement Amount (or the
relevant portion of such amounts) may be converted by Party X into the currency
in which the other is denominated at the rate of exchange at which such party
would be able, acting in a reasonable manner and in good faith, to purchase the
relevant amount of such currency. The term “rate of exchange”
includes, without limitation, any premiums and costs of exchange payable in
connection with the purchase of or conversion into the relevant currency.

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6

 

If an obligation is
unascertained, Party X may in good faith estimate that obligation and set-off
in respect of the estimate, subject to the relevant party accounting to the
other when the obligation is ascertained.

Nothing in this
Section 6(f) shall be effective to create a charge or other security
interest. This Section shall be without prejudice and in addition to any
right of set-off, combination of accounts, lien or other right to which any
party is at any time otherwise entitled (whether by operation of law, contract
or otherwise).”

(E) Inconsistency Among Definitions or Provisions.
In the event of any inconsistency between the definitions or provisions in any
of the following documents, the relevant document first listed below shall
govern: (i) a Confirmation (with respect only to definitions in such
Confirmation; provided, however, that other provisions in a Confirmation will
govern over inconsistent provisions in the following documents to the extent
that such Confirmation explicitly states its intent to modify the following
documents); (ii) the Schedule to the ISDA Master Agreement; (iii) the
ISDA Master Agreement; and (v) the 2000 ISDA Definitions.

(F) Severability. Any provision of this Agreement
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of the Agreement
or affecting the validity or enforceability of such provision in any other
jurisdiction. The parties hereto shall endeavor in good faith negotiations to
replace the prohibited or unenforceable provision with a valid provision, the
economic effect of which comes as close as possible to that of the prohibited
or unenforceable provision.

(G) WAIVER
OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY TRIAL OR LITIGATION ARISING OUT OF OR IN CONNECTION WITH
ANY TRANSACTION OR THIS AGREEMENT.

(H) RISK
DISCLOSURE. PARTY B HEREBY ACKNOWLEDGES AND AGREES THAT IT HAS:
(X) READ THE RISK DISCLOSURE SET FORTH ON EXHIBIT A; (Y) UNDERSTANDS
SUCH RISK DISCLOSURE; AND (Z) HAD AN ADEQUATE OPPORTUNITY TO DISCUSS ANY
QUESTIONS OR COMMENTS THAT IT MAY HAVE HAD WITH RESPECT TO SUCH RISK DISCLOSURE
PRIOR TO THE EXECUTION OF THIS AGREEMENT.

(I) Consent
to Recording. Each party (i) consents to the recording of the
telephone conversations of trading and marketing personnel of the parties in
connection with this Agreement or any potential Transaction, and (ii) agrees to
obtain any necessary consents of and give notice of such recording to its
personnel, and (iii) consents to the submission of any such tape recording
in evidence in any Proceedings.

(J) Accuracy of Specifed Information. Section 3(d)
of this Agreement is hereby amended to include “or in the case of audited
or unaudited financial statements, a fair representation of the financial
condition of the relevant person”, after “respect” in the
third line thereof.

(K) Transfer. Section 7(a) of this Agreement is
hereby amended to include “reorganization, reincorporation, incorporation
or reconstitution”, after “to,” and before
“another” in the second line thereof.

(l) Termination Currency Equivalent. The Definition
of Termination Currency Equivalent” of this Agreement is hereby amended
to include “in any commercially reasonable manner”, after
“determination,” and before “as” in the fourth line
thereof.

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(M) Joint
& Several Obligations.  Each Party B Group Member which comprises
Party B hereby acknowledges and confirms that the obligations and liabilities
of each such Party B Group Member under this Agreement or any Transaction
hereunder are joint and several.  Accordingly, each such Party B Group
Member shall be jointly and severally liable for the obligations and
liabilities expressed to be obligations of Party B hereunder. 
Additionally, each such Party B Group Member further acknowledges and confirms
that notwithstanding the joint and several nature of their obligations
hereunder, each reference to Party B in this Agreement or any Transaction
hereunder shall be a reference to each such
Party B Group Member individually.  Each Party B Group Member comprising
Party B hereby also acknowledges, agrees and confirms on and as of the date of
this Agreement and on each date on which a Transaction is entered into that:
(i) the actions of either Party B Group Member shall bind both Party B
Group Members equally, as if both had executed or taken such action jointly;
(ii) each Party B Group Member hereby appoints the other Party B Group
Member as its agent and each acknowledges and agrees that it is entering into
this Agreement and each Transaction on behalf of itself and the other Party B
Group Member as agent; (iii) it has the power and the authority to execute
and deliver this Agreement and any Transaction on its own behalf as agent and
on behalf of the other Party B Group Member and to bind itself as agent and the
other Party B Group Member and to act on behalf of itself as agent and on
behalf of the other Party B Group Member in all matters related to this
Agreement; and (iv) this Agreement is binding upon it as agent and on the
other Party B Group Member and enforceable against it as agent and against the
other Party B Group Member in accordance with its terms and does not and will
not violate the terms of any agreement by which it and the other Party B Group
Member is bound.  Each Party B Group Member comprising Party B agrees to
indemnify Party A, to the fullest extent permitted by law, from and against any
loss, liability, cost, claim, action, demand or expense (including, without
limitation, the costs, expenses and disbursements of legal counsel), whether
direct, indirect, incidental or consequential, resulting from, arising out of
or relating to (i) any claim by the other Party B Group Member that any
Transaction entered into by such Party B Group Member on the other Party B
Group Member’s behalf was not suitable, and (ii) any claim by the
other Party B Group Member that any Transaction entered into by such Party B
Group Member on the other Party B Group Member’s behalf was without
authority.

PART 6: FX

Transactions and Currency
Options

(A) Incorporation and Amendment of 1998 FX and
Currency Option Definitions.

(i) Incorporation of 1998 FX and Currency Option
Definitions. The 1998 FX and Currency Option Definitions, as amended from time
to time (the “1998 Definitions”), published by the International
Swaps and Derivatives Association, Inc., the Emerging Markets Trader
Association and The Foreign Exchange committee, are hereby incorporated by
reference with respect to any “Currency Option Transactions” and
“FX Transactions” as defined by the 1998 Definitions, except as
otherwise specifically provided herein or in the Confirmation.

(ii) Amendment of 1998 FX and Currency Option Definitions.
The following amendments are made to the 1998 Definitions:

Section 2.1 of the 1998 Definitions is amended by adding
the following as Section 2.1(b):

Currency Obligation. “Currency Obligation”
means the undertaking of a party hereunder to receive or deliver an amount of
currency, including a netted Currency Obligation, and including any Currency
Obligation previously entered into by the parties.

(B)
Confirmations. Any confirmation (whether provided by mail,
facsimile or other electronic means) in respect of any FX Transaction or
Currency Option Transaction into which the parties may enter, or may have
entered into prior to the date hereof, that fails by its terms to expressly
excluded the application of this Agreement shall (to the extent not otherwise
provided for in this Agreement) (i) constitute a
“Confirmation” as referred to in this Agreement, even when not so
specified in such confirmation; and (ii) supplement, form a part of, and
be subject to this Agreement, and all provisions in this Agreement will govern
such Confirmation except as expressly modified therein.

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(C) Netting
and Related Provisions. Section 2(c) shall not apply to FX Transaction
or Currency Option Transactions. In lieu thereof, the following shall apply:

(i) Netting, Discharge and Termination of FX Transactions.
The following provisions shall apply to FX Transactions:

Unless otherwise
agreed by the parties, whenever an FX Transaction is entered into between the
parties which creates a Currency Obligation in the same currency and for the
same Settlement Date as an existing Currency Obligation between the parties,
such Currency Obligation shall automatically and without further action be
netted, individually canceled and simultaneously replaced through novation by a
new Currency Obligation under which the party having the obligation to deliver
the greater aggregate amount of currency shall be obligated to deliver the
excess of such greater aggregate currency amount over such lesser aggregate
currency amount. Such new Currency Obligation shall be considered a
“Currency Obligation” under this Agreement.

(ii) Netting, Discharge and Termination with Respect to
Currency Option Transactions. The following provisions shall apply to Currency
Option Transactions:

Unless otherwise
agreed by the parties, any Call or Put written by a party will automatically be
terminated and discharged, in whole or in part, as applicable, against a Call
or a Put, respectively, having the same identical terms, written by the other
party; and, upon the occurrence of such termination or discharge, neither party
shall have any further obligation to the other party in respect of the parts so
terminated and discharged (except for the obligation of either party to pay any
Premium due, but not paid, thereunder); and the remaining portion of any
Currency Option Transaction, which is partially discharged and terminated,
shall continue to be a Currency Option Transaction under this Agreement.

(D) Inconsistencies. In the event of any
conflict between:

(i) the terms of a Deliverable FX Transaction Confirmation
and this Agreement, the terms of this Agreement shall supersede;

(ii) the terms of a Deliverable FX Transaction
Confirmation, where the Confirmation explicitly states that it shall so prevail
and has been signed by both parties, its terms shall supersede the terms of
this Agreement;

(iii) the terms of a Currency Option Transaction or a
Non-Deliverable FX Transaction Confirmation and this Agreement, the terms of
the Confirmation shall supersede.

(E) Definitions. Section 14 of this
Agreement is hereby amended as follows:

The definition of
“Terminated Transactions” shall be deemed to include Currency
Obligations.

(F) Premium
Payment. Notwithstanding the provisions of Section 5 of this
Agreement or any other provisions of this Agreement, if in connection with a
Currency Option Transaction a Premium is not received on the Premium Payment
Date, the Seller may elect: (i) to accept a later payment of such Premium
or (ii) to give written notice of such non-payment and, if such payment
shall not be received within three Local Business Days of such notice, treat
the related Currency Option Transaction as void. If the Seller elects to act
under clause (i) of the preceding sentence, the Buyer shall pay interest on
such Premium in the same currency as such Premium from the day such Premium was
due until the day paid at the Default Rate, as determined in good faith by the
Seller; and if the Seller elects to act under clause (ii) of the preceding
sentence, the Buyer shall pay all of Seller’s losses, costs and expenses,
including, but not limited to, legal fees and out-of-pocket expenses of the
Seller, incurred in connection with such unpaid or late Premium or void
Currency Option Transaction, including, but not limited to, interest on such
Premium in the same currency as such Premium at the then prevailing market rate
and any other costs or expenses incurred by the Seller in covering its
obligations (including, but not limited to, a delta hedge) with respect to such
Currency Option Transaction.

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9

 

IT WITNESS WHEREOF
the parties have executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

	 	 	 	 	 
	“Party A”	 	 	“Party B”	 
	 	 	 	 	 
	WELLS FARGO BANK, N.A.	 	AMERICAN REPROGRAPHICS COMPANY, L.L.C.
	 	 	 	 	 
	By:
	/s/ Susan Payunk	 	By:	/s/ Kumarakulasingam Suriyakumar
	 
	 	 	 	 
	Name:
	Susan Payunk	 	Name:	Kumarakulasingam Suriyakumar
	Title:
	Vice President	 	Its:	Chief Executive Officer
	 	 	 	 	 
	 	 	AMERICAN REPROGRAPHICS COMPANY
	 	 	 	 	 
	 
	 	 	By:	/s/ Kumarakulasingam Suriyakumar
	 
	 	 	 	 
	 
	 	 	Name:	Kumarakulasingam Suriyakumar
	 
	 	 	Its:	Chief Executive Officer

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10

 

EXHIBIT A

Generic Risk
Disclosure

For Financial Products Transactions and
Related Transactions

 

 

As is common with many other
financial instruments and transactions, over-the-counter swaps, options,
forwards, foreign exchange transactions and other similar derivatives and
related products (each, a “Financial Products Transaction”) may
involve a variety of significant risks. Before entering into any Financial
Products Transaction, you should carefully consider whether the transaction is
appropriate for you in light of your objectives, experience, financial and
operational resources, and other relevant circumstances. You should also ensure
that you fully understand the nature and extent of your exposure to risk of
loss, if any, which in some circumstances may significantly exceed the amount
of any initial payment made by or to you.

The specific risks presented by a
particular Financial Products Transactions necessarily depend upon the terms of
that transaction and the circumstances. Common to all, however, is their nature
as legally binding contractual commitments, which, once agreed to, cannot be
altered other than by termination or modification upon written agreement by the
parties. You should understand that such termination and/or modification may,
in certain circumstances, result in significant losses to you and may include
additional amounts required to cover the relevant costs.

In entering into any Financial
Products Transaction with, or arranged by, us, Wells Fargo Bank, National
Association, or, as may be applicable, our authorized subsidiaries or
affiliates (each such entity, “Wells Fargo”), you should also
understand that Wells Fargo is acting solely in the capacity of an arm’s
length contractual counterparty and not in the capacity of your financial
advisor or fiduciary unless otherwise explicitly agreed in writing and then
only to the extent so provided.

This brief statement does not
purport to disclose all of the risks or other relevant considerations of
entering into Financial Products Transactions.

29

11

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