Document:

exhibit_4-1.htm

    Exhibit
4.1

    

     

    SECOND
SUPPLEMENTAL INDENTURE

     

    SECOND
SUPPLEMENTAL INDENTURE , dated as of February 25, 2009 (this “Second Supplemental
Indenture”), among American Achievement Group Holding Corp., a Delaware
corporation (the “Company”) and U.S.
Bank National Association, as trustee under the Indenture referred to below (the
“Trustee”).

     

    W I T N E S S E T H:

     

    WHEREAS,
the Company and the Trustee have previously become parties to an Indenture,
dated as of June 12, 2006 (as amended, supplemented or otherwise modified from
time to time, the “Indenture”),
providing for the issuance of the Company’s 12.75% Senior PIK Notes due 2012
(the “Notes”);

     

    WHEREAS,
the Company proposes to amend the Indenture and the Notes as contemplated by
this Second Supplemental Indenture (such amendments, collectively, the “Proposed
Amendments”);

     

    

     

    WHEREAS,
pursuant to Section 9.02 of the Indenture, the Company and the Trustee
may  amend or supplement the Indenture and the Notes to amend certain
provisions as contemplated by Section 1.03 of this Second Supplemental Indenture
with the consent of the Holders of at least a majority in aggregate principal
amount of the Notes then outstanding;

     

    WHEREAS,
the Company has received and delivered to the Trustee the consent of the Holders
of at least a majority in aggregate principal amount of the Notes to the
Proposed Amendments;

     

    WHEREAS,
all other acts and proceedings required by law, by the Indenture, and by the
organizational documents of the Company to make this Second Supplemental
Indenture a valid and binding agreement for the purposes expressed herein, in
accordance with its terms, have been duly done and performed; and

     

    NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, in order to effect
the Proposed Amendments, the Company agrees with the Trustee as
follows:

     

    ARTICLE
I

     

    AMENDMENT
OF THE INDENTURE

     

    SECTION 1.01  Amendment to Indenture and Notes.
The Indenture and the Notes will be amended as provided for in this
Second Supplemental Indenture. This Second Supplemental Indenture will become
effective when it is executed and delivered by the Company and the
Trustee.

     

    SECTION
1.02                                Amendments to Article 4, 5, and
6.  Pursuant to Section 9.02 of the Indenture, the amendments
set forth in paragraphs (a) through (s) of this Section 1.02 shall become
effective as of the date of this Second Supplemental Indenture:

     

    (a)           Amendment of Section 4.03
(Reports.)  Section 4.03 of the Indenture is hereby amended and
restated in its entirety to read as follows:

     

    Section 4.03 [INTENTIONALLY
OMITTED].

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    (b)           Amendment of Section 4.04
(Compliance Certificate).  Section 4.04 of the Indenture is
hereby amended and restated in its entirety to read as follows:

     

    Section
4.04 Compliance Certificate.

     

    The Company shall deliver to the
Trustee, within 90 days after the end of each fiscal year, an Officer’s
Certificate in accordance with Section 314(a)(4) of the TIA.

     

    (c)           Amendment of Section 4.05
(Taxes).  Section 4.05 of the Indenture is hereby amended and
restated in its entirety to read as follows:

     

    Section
4.05  [INTENTIONALLY OMITTED].

     

    (d)           Amendment of Section 4.06 (Stay,
Extension and Usury Law).  Section 4.06 of the Indenture is
hereby amended and restated in its entirety to read as follows:

     

    Section
4.06  [INTENTIONALLY OMITTED].

     

    (e)           Amendment of Section 4.07
(Restricted Payments).  Section 4.07 of the Indenture is hereby
amended and restated in its entirety to read as follows:

     

    Section
4.07  [INTENTIONALLY OMITTED].

     

    (f)           Amendment of Section 4.08 (Dividend
and Other Payment Restrictions Affecting
Subsidiaries).  Section 4.08 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     

    Section
4.08  [INTENTIONALLY OMITTED].

     

    (g)           Amendment of Section 4.09
(Incurrence of Indebtedness and Issuance of Preferred
Stock).  Section 4.09 of the Indenture is hereby amended and
restated in its entirety to read as follows:

     

    Section
4.09  [INTENTIONALLY OMITTED].

     

    (h)           Amendment of Section 4.10 (Asset
Sales).  Section 4.10 of the Indenture is hereby amended and
restated in its entirety to read as follows:

     

    Section
4.10  [INTENTIONALLY OMITTED].

     

    (i)           Amendment of Section 4.11
(Transaction with Affiliates).  Section 4.11 of the Indenture
is hereby amended and restated in its entirety to read as follows:

     

    Section
4.11  [INTENTIONALLY OMITTED].

     

    (j)           Amendment of Section 4.12
(Liens).  Section 4.12 of the Indenture is hereby amended and
restated in its entirety to read as follows:

     

    Section
4.12  [INTENTIONALLY OMITTED].

     

    (k)           Amendment of Section 4.13 (Business
Activities).  Section 4.13 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     

    Section
4.13  [INTENTIONALLY OMITTED].

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (l)           Amendment of Section 4.14 (Corporate
Existence).  Section 4.14 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     

    Section
4.14  [INTENTIONALLY OMITTED].

     

    (m)           Amendment of Section 4.15 (Offer to
Repurchase Upon Change of Control).  Section 4.15 of the
Indenture is hereby amended and restated in its entirety to read as
follows:

     

    Section
4.15  [INTENTIONALLY OMITTED].

     

    (n)           Amendment of Section 4.16
(Limitations on Guarantees of Indebtedness by Restricted
Subsidiaries).  Section 4.16 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     

    Section
4.16  [INTENTIONALLY OMITTED].

     

    (o)           Amendment of Section 4.17
(Limitation on Sale and Leaseback Transactions).  Section 4.17
of the Indenture is hereby amended and restated in its entirety to read as
follows:

     

    Section
4.17  [INTENTIONALLY OMITTED].

     

    (p)           Amendment of Section 4.18 (Payments
for Consent).  Section 4.18 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     

    Section
4.18  [INTENTIONALLY OMITTED].

     

    (q)           Amendment of Section 4.19
(Designation of Restricted and Unrestricted
Subsidiaries).  Section 4.19 of the Indenture is hereby amended
and restated in its entirety to read as follows:

     

    Section
4.19  [INTENTIONALLY OMITTED].

     

    (r)           Amendment of Section 5.01 (Merger,
Consolidation, or Sale of Assets).  Section 5.01 of the
Indenture is hereby amended and restated in its entirety to read as
follows:

     

    Section 5.01 Merger, Consolidation, or Sale of
Assets.

     

    The Company shall not, directly or
indirectly: (i) consolidate or merge with or into another Person (whether
or not the Company is the surviving corporation); or (ii) sell, assign,
transfer, convey or otherwise dispose of all or substantially all of the
properties or assets of the Company and its Restricted Subsidiaries taken as a
whole, in one or more related transactions, to another Person,
unless:

     

    (1)
either:

     

    (A) the
Company is the surviving corporation; or

     

    (B) the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or to which such sale, assignment, transfer, conveyance or other
disposition has been made is a corporation, limited liability company or limited
partnership organized or existing under the laws of the United States, any state
of the United States or the District of Columbia (provided that if such Person
is not a corporation, such Person shall be required to cause a subsidiary of
such Person that is a corporation to be a co-obligor under the
Notes);

     

    (2) the
Person formed by or surviving any such consolidation or merger (if other than
the Company) or the Person to which such sale, assignment, transfer, conveyance
or other disposition has been made assumes all the obligations of the Company
under the Notes and this Indenture.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    This Section 5.01 will not apply
to:

     

    (1) a
merger of the Company with an Affiliate solely for the purpose of
reincorporating the Company in another jurisdiction; or

     

    (2) any
consolidation or merger, or any sale, assignment, transfer, conveyance, lease or
other disposition of assets between or among the Company and its Restricted
Subsidiaries.

     

    (s)           Amendment of Section 6.01 (Events of
Default).  Clauses (3), (4), (5) and (6) of Section 6.01 of the
Indenture are hereby amended and restated in their entirety to read as
follows:

     

    Section
6.01                                Events
of Default

     

    (3)  failure by the
Company or any of its Restricted Subsidiaries to comply with the provisions of
Section 5.01 hereof;

     

    (4)  [INTENTIONALLY
OMITTED];

     

    (5)  [INTENTIONALLY
OMITTED];

     

    (6)  [INTENTIONALLY
OMITTED];

     

    SECTION
1.05.                                Amendments to the
Notes.  Pursuant to Section 9.02 of the Indenture, the
amendments set forth in this Section 1.05 shall become effective as of the
execution of this Second Supplemental Indenture:

     

    (a)           Amendment to Paragraph 7 of the
Notes.  Paragraph 7 of each Note is hereby amended and restated
in its entirety to read as follows:

     

    (7)  [INTENTIONALLY
OMITTED].

     

    (b)           Amendment to Paragraph 12 of the
Notes.  Clauses (iii), (iv), (v) and (vi) of Paragraph 12 of
each Note are hereby amended and restated in their entirety to read as
follows:  “(iii) failure by the Company
or any of its Restricted Subsidiaries to comply with the provisions of Section
5.01 hereof; (iv)
[INTENTIONALLY OMITTED];
(v)  [INTENTIONALLY OMITTED]; (vi) [INTENTIONALLY
OMITTED];”.

     

    ARTICLE
II

     

    THE
TRUSTEE

     

    SECTION 2.01  Privileges and Immunities of
Trustee.  The Trustee accepts the amendment of the Indenture
and the Notes affected by this Second Supplemental Indenture but only upon the
terms and conditions set forth in the Indenture, including the terms and
provisions defining and limiting the liabilities and responsibilities of the
Trustee, which terms and provisions shall in like manner define and limit its
liabilities and responsibilities in the performance of the trust created by the
Indenture as hereby amended.  The Trustee shall not be responsible for
the adequacy or sufficiency of this Second Supplemental Indenture, for the due
execution thereof by the Company or for the recitals contained herein, which are
the Company’s responsibility.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    ARTICLE
III

     

    MISCELLANEOUS
PROVISIONS

     

    SECTION
3.01                                Parties.  Nothing
expressed or mentioned herein is intended or shall be construed to give any
Person, firm or corporation, other than the Holders and the Trustee, any legal
or equitable right, remedy or claim under or in respect of this Second
Supplemental Indenture or the Indenture or any provision herein or therein
contained.

     

    SECTION
3.02                                Governing Law.  THE
INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS
SECOND SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATIONS OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.

     

    SECTION
3.03                                Severability
Clause.  In case any provision in this Second Supplemental
Indenture shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby and such provision shall be ineffective only to the extent of
such invalidity, illegality or unenforceability.

     

    

     

    SECTION
3.04                                Ratification of Indenture; Second
Supplemental Indenture Part of Indenture.  Except as expressly
amended hereby, the Indenture is in all respects ratified and confirmed and all
the terms, conditions and provisions thereof shall remain in full force and
effect.  This Second Supplemental Indenture shall form a part of the
Indenture for all purposes, and every Holder of Notes heretofore or hereafter
authenticated and delivered shall be bound hereby.  The Trustee makes
no representation or warranty as to the validity or sufficiency of this Second
Supplemental Indenture or with respect to the recitals contained herein, all of
which recitals are made solely by the other parties hereto.

     

    SECTION
3.05                                Counterparts.  The
parties hereto may sign one or more copies of this Second Supplemental Indenture
in counterparts, all of which together shall constitute one and the same
agreement.

     

    SECTION
3.06                                Headings.  The
headings of the Articles and the sections in this Second Supplemental Indenture
are for convenience of reference only and shall not be deemed to alter or affect
the meaning or interpretation of any provisions hereof.

     

    SECTION
3.07                                Successors.  All
agreements of the Company and the Trustee in this Second Supplemental Indenture
will bind their respective successors.

     

    

     

    [Signature
Pages to Follow]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    IN
WITNESS WHEREOF, the parties have caused this Second Supplemental Indenture to
be duly executed all as of the date and year first written above.

     

    

    
      	
              AMERICAN
      ACHIEVEMENT GROUP HOLDING CORP.

            
	 
      	 
      
	
              By:

            	
              /s/
      Donald Percenti

            
	 
      	
              Name:
      Donald Percenti

            
	 
      	
              Title:  CEO
      and President

            
	 
      	 
      

    

    

    

    

    
      	
              U.S.
      BANK NATIONAL ASSOCIATION,

              as
      Trustee

            
	 
      	 
      
	
              By:

            	
              /s/
      Richard Prokosch

            
	 
      	
              Name:
      Richard Prokosch

            
	 
      	
              Title:
      Vice PresidentFiled by Bowne Pure Compliance

Exhibit 10.1

INDEMNIFICATION AGREEMENT

This Indemnification Agreement (the “Agreement”) on February 23, 2009, effective as of
August 7, 2008, by and between American Reprographics Company, a Delaware corporation (the
“Company”), and Dilantha Wijesuriya (the “Indemnitee”).

RECITALS

The Company and Indemnitee recognize the increasing difficulty in obtaining liability
insurance for directors, officers and key employees, the significant increases in the cost of such
insurance and the general reductions in the coverage of such insurance. The Company and Indemnitee
further recognize the substantial increase in corporate litigation in general, subjecting
directors, officers and key employees to expensive litigation risks at the same time as the
availability and coverage of liability insurance has been severely limited. Indemnitee does not
regard the current protection available as adequate under the present circumstances, and Indemnitee
and agents of the Company may not be willing to continue to serve as agents of the Company without
additional protection. The Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, and to indemnify its directors, officers and key employees so as
to provide them with the maximum protection permitted by law.

AGREEMENT

In consideration of the mutual promises made in this Agreement, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the Company and Indemnitee hereby
agree as follows:

1. Indemnification.

(a) Third Party Proceedings. The Company shall indemnify Indemnitee if Indemnitee is
or was a party or is threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative (other than an action
by or in the right of the Company) by reason of the fact that Indemnitee is or was a director,
officer, employee or agent of the Company, or any subsidiary of the Company, by reason of any
action or inaction on the part of Indemnitee while an officer or director or by reason of the fact
that Indemnitee is or was serving at the request of the Company as a director, officer, employee or
agent of another corporation, partnership, joint venture, trust or other enterprise, against
expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement (if such
settlement is approved in advance by the Company, which approval shall not be unreasonably
withheld) actually and reasonably incurred by Indemnitee in connection with such action, suit or
proceeding if Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to be
in or not opposed to the best interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Indemnitee’s conduct was unlawful. The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of
nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did
not act in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed
to the best interests of the Company, or, with respect
to any criminal action or proceeding, that Indemnitee had reasonable cause to believe that
Indemnitee’s conduct was unlawful.

 

 

 

(b) Proceedings By or in the Right of the Company. The Company shall indemnify
Indemnitee if Indemnitee was or is a party or is threatened to be made a party to any threatened,
pending or completed action or proceeding by or in the right of the Company or any subsidiary of
the Company to procure a judgment in its favor by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company, or any subsidiary of the Company, by reason of
any action or inaction on the part of Indemnitee while an officer or director or by reason of the
fact that Indemnitee is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise,
against expenses (including attorneys’ fees) and, to the fullest extent permitted by law, amounts
paid in settlement (if such settlement is approved in advance by the Company, which approval shall
not be unreasonably withheld), in each case to the extent actually and reasonably incurred by
Indemnitee in connection with the defense or settlement of such action or suit if Indemnitee acted
in good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company and its stockholders, except that no indemnification shall be made in
respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudicated by
court order or judgment to be liable to the Company in the performance of Indemnitee’s duty to the
Company and its stockholders unless and only to the extent that the court in which such action or
proceeding is or was pending shall determine upon application that, in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such
expenses which such court shall deem proper.

(c) Mandatory Payment of Expenses. To the extent that Indemnitee has been successful
on the merits or otherwise in defense of any action, suit or proceeding referred to in Section 1(a)
or Section 1(b) or the defense of any claim, issue or matter therein, Indemnitee shall be
indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by
Indemnitee in connection therewith.

2. No Employment Rights. Nothing contained in this Agreement is intended to create in
Indemnitee any right to continued employment.

3. Expenses; Indemnification Procedure.

(a) Advancement of Expenses. The Company shall advance all expenses incurred by
Indemnitee in connection with the investigation, defense, settlement or appeal of any civil or
criminal action, suit or proceeding referred to in Section l(a) or Section 1(b) hereof (including
amounts actually paid in settlement of any such action, suit or proceeding). Indemnitee hereby
undertakes to repay such amounts advanced only if, and to the extent that, it shall ultimately be
determined that Indemnitee is not entitled to be indemnified by the Company as authorized hereby.

(b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to
his or her right to be indemnified under this Agreement, give the Company notice in writing as soon
as practicable of any claim made against Indemnitee for which indemnification will or could be
sought under this Agreement. Notice to the Company shall be directed to the
Chief Executive Officer of the Company and shall be given in accordance with the provisions of
Section 12(d) below. In addition, Indemnitee shall give the Company such information and
cooperation as it may reasonably require and as shall be within Indemnitee’s power.

 

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(c) Procedure. Any indemnification and advances provided for in Section 1 and this
Section 3 shall be made no later than twenty (20) days after receipt of the written request of
Indemnitee. If a claim under this Agreement, under any statute, or under any provision of the
Company’s Certificate of Incorporation or Bylaws providing for indemnification, is not paid in full
by the Company within twenty (20) days after a written request for payment thereof has first been
received by the Company, Indemnitee may, but need not, at any time thereafter bring an action
against the Company to recover the unpaid amount of the claim and, subject to Section 11 of this
Agreement, Indemnitee shall also be entitled to be paid for the expenses (including attorneys’
fees) of bringing such action. It shall be a defense to any such action (other than an action
brought to enforce a claim for expenses incurred in connection with any action, suit or proceeding
in advance of its final disposition) that Indemnitee has not met the standards of conduct which
make it permissible under applicable law for the Company to indemnify Indemnitee for the amount
claimed, but the burden of proving such defense shall be on the Company and Indemnitee shall be
entitled to receive interim payments of expenses pursuant to Section 3(a) unless and until such
defense may be finally adjudicated by court order or judgment from which no further right of appeal
exists. It is the parties’ intention that if the Company contests Indemnitee’s right to
indemnification, the question of Indemnitee’s right to indemnification shall be for the court to
decide, and neither the failure of the Company (including its Board of Directors, any committee or
subgroup of the Board of Directors, independent legal counsel, or its stockholders) to have made a
determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct required by applicable law, nor an actual determination
by the Company (including its Board of Directors, any committee or subgroup of the Board of
Directors, independent legal counsel, or its stockholders) that Indemnitee has not met such
applicable standard of conduct, shall create a presumption that Indemnitee has or has not met the
applicable standard of conduct.

(d) Notice to Insurers. If, at the time of the receipt of a notice of a claim
pursuant to Section 3(b) hereof, the Company has director and officer liability insurance in
effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers
in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such
policies.

(e) Selection of Counsel. In the event the Company shall be obligated under Section
3(a) hereof to pay the expenses of any proceeding against Indemnitee, the Company, if appropriate,
shall be entitled to assume the defense of such proceeding, with counsel approved by Indemnitee,
upon the delivery to Indemnitee of written notice of its election so to do. After delivery of such
notice, approval of such counsel by Indemnitee and the retention of such counsel by the Company,
the Company will not be liable to Indemnitee under this Agreement for any fees of counsel
subsequently incurred by Indemnitee with respect to the same proceeding, provided that (i)
Indemnitee shall have the right to employ counsel in any such proceeding at Indemnitee’s expense;
and (ii) if (A) the employment of counsel by Indemnitee has been
previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the conduct of any such
defense or (C) the Company shall not, in fact, have employed counsel to assume the defense of such
proceeding, then the fees and expenses of Indemnitee’s counsel shall be at the expense of the
Company.

 

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4. Additional Indemnification Rights; Nonexclusivity.

(a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby
agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that
such indemnification is not specifically authorized by the other provisions of this Agreement, the
Company’s Certificate of Incorporation, the Company’s Bylaws or by statute. In the event of any
change, after the date of this Agreement, in any applicable law, statute, or rule which expands the
right of a Delaware corporation to indemnify a member of its board of directors or an officer, such
changes shall be deemed to be within the purview of Indemnitee’s rights and the Company’s
obligations under this Agreement. In the event of any change in any applicable law, statute or
rule which narrows the right of a Delaware corporation to indemnify a member of its board of
directors or an officer, such changes, to the extent not otherwise required by such law, statute or
rule to be applied to this Agreement shall have no effect on this Agreement or the parties’ rights
and obligations hereunder.

(b) Nonexclusivity. The indemnification provided by this Agreement shall not be
deemed exclusive of any rights to which Indemnitee may be entitled under the Company’s Certificate
of Incorporation, its Bylaws, any agreement, any vote of stockholders or disinterested members of
the Company’s Board of Directors, the General Corporation Law of the State of Delaware, or
otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity
while holding such office. The indemnification provided under this Agreement shall continue as to
Indemnitee for any action taken or not taken while serving in an indemnified capacity even though
he or she may have ceased to serve in any such capacity at the time of any action, suit or other
covered proceeding.

5. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the expenses, judgments, fines
or penalties actually or reasonably incurred in the investigation, defense, appeal or settlement of
any civil or criminal action, suit or proceeding, but not, however, for the total amount thereof,
the Company shall nevertheless indemnify Indemnitee for the portion of such expenses, judgments,
fines or penalties to which Indemnitee is entitled.

6. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that in certain
instances, Federal law or public policy may override applicable state law and prohibit the Company
from indemnifying its directors and officers under this Agreement or otherwise. For example, the
Company and Indemnitee acknowledge that the Securities and Exchange Commission (the “SEC”)
has taken the position that indemnification is not permissible for liabilities arising under
certain federal securities laws, and federal legislation prohibits indemnification for certain
ERISA violations. Indemnitee understands and acknowledges that the Company has undertaken or may be
required in the future to undertake with the SEC to submit
the question of indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee.

 

4

 

7. Officer and Director Liability Insurance. The Company shall, from time to time,
make the good faith determination whether or not it is practicable for the Company to obtain and
maintain a policy or policies of insurance with reputable insurance companies providing the
officers and directors of the Company with coverage for losses from wrongful acts, or to ensure the
Company’s performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance coverage against the
protection afforded by such coverage. In all policies of director and officer liability insurance,
Indemnitee shall be named as an insured in such a manner as to provide Indemnitee the same rights
and benefits as are accorded to the most favorably insured of the Company’s directors, if
Indemnitee is a director; or of the Company’s officers, if Indemnitee is not a director of the
Company but is an officer; or of the Company’s key employees, if Indemnitee is not an officer or
director but is a key employee. Notwithstanding the foregoing, the Company shall have no
obligation to obtain or maintain such insurance if the Company determines in good faith that such
insurance is not reasonably available, if the premium costs for such insurance are disproportionate
to the amount of coverage provided, if the coverage provided by such insurance is limited by
exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by similar
insurance maintained by a parent or subsidiary of the Company.

8. Severability. Nothing in this Agreement is intended to require or shall be
construed as requiring the Company to do or fail to do any act in violation of applicable law. The
Company’s inability, pursuant to court order, to perform its obligations under this Agreement shall
not constitute a breach of this Agreement. The provisions of this Agreement shall be severable as
provided in this Section 8. If this Agreement or any portion hereof shall be invalidated on any
ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify
Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall not
have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in
accordance with its terms.

9. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:

(a) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to proceedings or claims initiated or brought voluntarily by Indemnitee and not by way
of defense, except with respect to proceedings brought to establish or enforce a right to
indemnification under this Agreement or any other statute or law or otherwise as required under
Section 145 of the Delaware General Corporation Law, but such indemnification or advancement of
expenses may be provided by the Company in specific cases if the Board of Directors finds it to be
appropriate;

(b) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a court of competent jurisdiction determines that each of the material assertions
made by Indemnitee in such proceeding was not made in good faith or was frivolous;

 

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(c) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) to the extent such expenses or liabilities have been paid directly to
Indemnitee by an insurance carrier under a policy of officers’ and directors’ liability insurance
maintained by the Company; or

(d) Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

10. Construction of Certain Phrases.

(a) For purposes of this Agreement, references to the “Company” shall include, in
addition to the resulting corporation, any constituent corporation (including any constituent of a
constituent) absorbed in a consolidation or merger which, if its separate existence had continued,
would have had power and authority to indemnify its directors, officers, and employees or agents,
so that if Indemnitee is or was a director, officer, employee or agent of such constituent
corporation, or is or was serving at the request of such constituent corporation as a director,
officer, employee or agent of another corporation, partnership, joint venture, trust or other
enterprise, Indemnitee shall stand in the same position under the provisions of this Agreement with
respect to the resulting or surviving corporation as Indemnitee would have with respect to such
constituent corporation if its separate existence had continued.

(b) For purposes of this Agreement, references to “other enterprises” shall include
employee benefit plans; references to “fines” shall include any excise taxes assessed on
Indemnitee with respect to an employee benefit plan; and references to “serving at the request
of the Company” shall include any service as a director, officer, employee or agent of the
Company which imposes duties on, or involves services by, such director, officer, employee or agent
with respect to an employee benefit plan, its participants, or beneficiaries; and if Indemnitee
acted in good faith and in a manner Indemnitee reasonably believed to be in the interest of the
participants and beneficiaries of an employee benefit plan, Indemnitee shall be deemed to have
acted in a manner “not opposed to the best interests of the Company” as referred to in this
Agreement.

11. Attorneys’ Fees. In the event that any action is instituted by Indemnitee under
this Agreement to enforce or interpret any of the terms hereof, Indemnitee shall be entitled to be
paid all court costs and expenses, including reasonable attorneys’ fees, incurred by Indemnitee
with respect to such action, unless as a part of such action, the court of competent jurisdiction
determines that each of the material assertions made by Indemnitee as a basis for such action were
not made in good faith or were frivolous. In the event of an action instituted by or in the name
of the Company under this Agreement or to enforce or interpret any of the terms of this Agreement,
Indemnitee shall be entitled to be paid all court costs and expenses, including attorneys’ fees,
incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s
counterclaims and cross-claims made in such action), unless as a part of such action the court
determines that each of Indemnitee’s material defenses to such action were made in bad faith or
were frivolous.

 

6

 

12. Miscellaneous.

(a) Governing Law. This Agreement and all acts and transactions pursuant hereto and
the rights and obligations of the parties hereto shall be governed, construed and interpreted in
accordance with the laws of the State of Delaware, without giving effect to principles of conflict
of law.

(b) Entire Agreement; Enforcement of Rights. This Agreement sets forth the entire
agreement and understanding of the parties relating to the subject matter herein and merges all
prior discussions between them. No modification of or amendment to this Agreement, nor any waiver
of any rights under this Agreement, shall be effective unless in writing signed by the parties to
this Agreement. The failure by either party to enforce any rights under this Agreement shall not
be construed as a waiver of any rights of such party.

(c) Construction. This Agreement is the result of negotiations between and has been
reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this
Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be
construed in favor of or against any one of the parties hereto.

(d) Notices. Any notice, demand or request required or permitted to be given under
this Agreement shall be in writing and shall be deemed sufficient when delivered personally or sent
by telegram or fax, or forty-eight (48) hours after being deposited in the U.S. mail, as certified
or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s
address as set forth below or as subsequently modified by written notice.

(e) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument.

(f) Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns, and inure to the benefit of Indemnitee and Indemnitee’s heirs, legal
representatives and assigns.

(g) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company to effectively bring suit to enforce such rights.

[Signature Page Follows]

 

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The parties hereto have executed this Agreement as of the day and year set forth on the first
page of this Agreement.

	 	 	 	 	 	 	 
	 	 	AMERICAN REPROGRAPHICS COMPANY	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

	 	/s/ Kumarakulasingam Suriyakumar
 

Name: Kumarakulasingam Suriyakumar
	 	 
	 

	 	
	 	Title:   Chief Executive Officer, President and	 	 
	 

	 	 	 	            Chairman of the Board	 	 
	 
	 

	 	Address:
	 	1981 N. Broadway, Suite 385	 	 
	 

	 	 	 	Walnut Creek, CA 94596	 	 

AGREED TO AND ACCEPTED:

	 	 	 	 	 
	/s/ Dilantha Wijesuriya	 	 
	 	 	 
	Dilantha Wijesuriya	 	 
	 
	 	 	 	 
	Address:

	 	1132 Flowerwood Place	 	 
	 

	 	Walnut Creek, CA 94598, USA	 	 

 

8

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