Document:

exv10w1

 

EXHIBIT 10.1

Execution Version

SECOND AMENDMENT TO SECOND AMENDED

AND RESTATED CREDIT AND GUARANTY AGREEMENT

     This SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT (this
“Amendment") is dated as of April 27, 2007 and is entered into by and among AMERICAN REPROGRAPHICS
COMPANY, L.L.C., a California limited liability company (the “Company"), AMERICAN REPROGRAPHICS
COMPANY, a Delaware corporation (“Holdings"), CERTAIN FINANCIAL INSTITUTIONS listed on the
signature pages hereto (the “Lenders”), GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”), as sole lead
arranger, sole bookrunner and sole syndication agent (in such capacities, the “Arranger"), GENERAL
ELECTRIC CAPITAL CORPORATION (“GECC”), as Administrative Agent, and the CREDIT SUPPORT PARTIES
listed on the signature papers hereto (collectively, the “Credit Support Parties"); and is made
with reference to that certain Second Amended and Restated Credit Agreement, dated as of December
21, 2005 (as amended, supplemented or otherwise modified through the date hereof, the “Credit
Agreement"), by and among Company, American Reprographics Holdings, L.L.C., Holdings, GSCP, as Sole
Lead Arranger and Joint Bookrunner, JPMorgan Chase Bank, N.A., as Syndication Agent, JPMorgan
Securities Inc., as Joint Bookrunner, GECC, as Administrative Agent and Collateral Agent, the
Credit Support Parties, and the Lenders. Capitalized terms used herein without definition shall
have the same meanings herein as set forth in the Credit Agreement after giving effect to this
Amendment.

RECITALS

     WHEREAS, the Company has requested that Requisite Lenders agree to amend Section 2.24 of the
Credit Agreement to permit the Company to incur New Term Loan Commitments at any time, subject to
the achievement of a Leverage Ratio on a pro forma basis after giving effect to such New Term Loan
Commitments of less than 3.00:1.00 (together with certain existing conditions);

     WHEREAS, the Credit Parties have requested that Requisite Lenders agree to amend certain other
provisions of the Credit Agreement as provided for herein;

     WHEREAS, subject to certain conditions, Requisite Lenders are willing to agree to the
amendments set forth above relating to the Credit Agreement; and

     WHEREAS, contemporaneously with the execution of this Amendment, the Company is exercising its
right under Section 2.24 of the Credit Agreement to incur New Term Loans;

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

 

 

SECTION I. AMENDMENTS TO CREDIT AGREEMENT

     1.1 Amendments to Section 1: Definitions.

     (a) Section 1.1 of the Credit Agreement is hereby amended by adding the following
definitions in proper alphabetical sequence:

     “Second Amendment” means that certain Second Amendment to Second Amended and Restated
Credit and Guaranty Agreement, dated as of April 27, 2007, among Company, Holdings,
Syndication Agent, the Lenders party thereto, the Administrative Agent and the Credit
Support Parties listed on the signature pages thereto.

     “Second Amendment Effective Date” means the date of satisfaction of the conditions
referred to in Section II of the Second Amendment.

     (b) The definition of “Consolidated Capital Expenditures” is hereby amended by deleting
the following language in its entirety:

“and including that portion of Capital Leases which is capitalized on the
consolidated balance sheet of Company and its Subsidiaries”

     (c) The definition of “Permitted Acquisition” is hereby amended by (i) deleting the
number “10” in clause (vi) thereof and replacing it with the number “5”; and (ii) adding the
following language immediately prior to the language “; and” at the end clause (vi) thereof:

“, unless the consideration to be delivered in connection with the proposed
acquisition is equal to or less than $5,000,000 and the Person or assets or division
acquired shall have generated positive Consolidated Adjusted EBITDA (after allowing
for pro forma adjustments as may be permitted in Section 6.8(f)) for the most
recently completed two-Fiscal Quarter period prior to the date of such acquisition;”

     1.2 Amendments to Section 2.24.

     (a) Section 2.24 of the Credit Agreement is hereby amended by deleting the first
sentence thereof in its entirety and replacing it with the following language:

“Company may by written notice to Administrative Agent and Syndication Agent elect
to request the establishment of one or more new term loan commitments (the “New Term
Loan Commitments”) by an amount not less than $5,000,000 individually and integral
multiples of $1,000,000 in excess of that amount.”

     (b) The proviso in the third sentence of Section 2.24 is hereby amended by deleting
clause (3) thereof in its entirety and replacing it with the following language:

 

 

“the Leverage Ratio on a pro forma basis after giving effect to such New Term Loan
Commitments as of the last day of the most recently ended Fiscal Quarter shall be
less than 3.00:1.00;”

     1.3 Amendments to Section 5.

     Section 5 of the Credit Agreement is hereby amended by adding a new Section 5.17 thereto, such
Section 5.17 shall read as follows:

“5.17. Post-Second Amendment Effective Date Covenant. Company shall deliver,
furnish and/or cause to be furnished all of the obligations set forth below within
the time periods specified therewith:

     (a) Within fifteen (15) Business Days after the Second Amendment Effective
Date, the Collateral Agent shall have received stock certificates representing the
Capital Stock of MBC Precision Imaging, Inc. and Rapid Blueprint Supply Co., Inc.,
in each case, appropriately indorsed to the Collateral Agent or indorsed in blank.

     (b) Within thirty (30) Business Days after the Second Amendment Effective Date,
the Administrative Agent shall have received file stamped copies of all termination
statements filed with respect to any UCC financing statement naming Manufacturers
and Traders Trust Company, as secured party, and MBC Precision Imaging, Inc., as
debtor, and describing the collateral covered by such UCC financing statement as
“all assets of the debtor whether now existing or hereafter acquired or arising,
wherever located” or words of similar import.”

     1.4 Amendments to Section 5.1.

     Clause (a) of Section 5.1 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

“(a) [Reserved];”

     1.5 Amendments to Section 6.1.

     (a) Clause of (j) of Section 6.1 of the Credit Agreement is hereby amended by replacing
the dollar amount of “$45,000,000” with the dollar amount of “$60,000,000”.

     (b) Clause of (l)(i) of Section 6.1 of the Credit Agreement is hereby amended by
replacing the dollar amount of “$40,000,000” with the dollar amount of “$60,000,000”.

     1.6 Amendments to Section 6.5.

     Clause (c) of Section 6.5 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

 

 

“(c) so long as no Default or Event of Default shall have occurred and be continuing
or shall be caused thereby, any Joint Venture acquired as an Investment may, to the
extent expressly permitted under Section 6.7(i), make cash payments to redeem,
retire or repurchase Capital Stock in such Joint Venture held by a minority investor
provided the aggregate amount of all such payments does not exceed $17,500,000,
together with the aggregate amount of all Investments permitted under Section
6.7(i);”

     1.7 Amendments to Section 6.7.

     Section 6.7 of the Credit Agreement is hereby amended by (i) deleting the word “and”
immediately following the “;” and the end of clause (h); (ii) adding a new clause (i) to such
Section, such clause (i) shall read as follows:

“Investments made after the Closing Date in Joint Ventures in a business or line of
business permitted with respect to the Company under Section 6.13, provided,
(i) immediately prior to the making of any Investment, and after giving effect
thereto, no Default or Event of Default shall have occurred and be continuing, (ii)
all transactions in connection therewith shall be consummated, in all material
respects, in accordance with all applicable laws and in conformity with all
applicable Governmental Authorizations, and (iii) such Investments can be legally
maintained, and are maintained, as Collateral (but only to the extent of Company’s
and each other Credit Party’s interest in such Joint Venture) subject to first
priority security interests on such terms and conditions as are reasonably
satisfactory to Administrative Agent and Collateral Agent; provided that the
aggregate amount of all Investments in Joint Ventures pursuant to this clause (i)
(including any additional Investments pursuant to Section 6.5(c), does not exceed
$17,500,000 at any time outstanding; and”

     and (iii) re-lettering clause (i) thereof to clause (j).

     1.8 Amendments to Section 6.8.

     (a) Clause (c) of Section 6.8 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

“(c) Leverage Ratio. Holdings shall not permit the Leverage Ratio as of the
last day of any Fiscal Quarter (which last day occurs in any period set forth
below), beginning with the Fiscal Quarter ending March 31, 2007, to exceed
3.00:1.00.”

     (b) Clause (e) of Section 6.8 of the Credit Agreement is hereby amended by deleting the
table therein and replacing it with the following table:

 

 

	 	 	 	 	 	 
	Fiscal	 	 	Consolidated
	Year	 	 	Capital Expenditures
	2006

		 	$	35,000,000	 
	Thereafter

		 	$	15,000,000	 

     1.9 Amendments to Section 6.9.

     Clause (e) of Section 6.9 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

“(e) Permitted Acquisitions, provided the Leverage Ratio on a pro forma
basis after giving effect to such acquisition as of the last day of the Fiscal
Quarter most recently ended shall not exceed 3.00:1.00;”

SECTION II. CONDITIONS TO EFFECTIVENESS

          This Amendment shall become effective as of the date hereof only upon the satisfaction of all
of the following conditions precedent (the date of satisfaction of such conditions being referred
to herein as the “Second Amendment Effective Date”):

     A. Execution. Administrative Agent shall have received a counterpart signature page of this
Amendment duly executed by each of the Credit Parties and Requisite Lenders.

     B. Fees. The Arranger shall have received all fees and other amounts due and payable on or
prior to the Second Amendment Effective Date, including, to the extent invoiced, reimbursement or
other payment of all out-of-pocket expenses required to be reimbursed or paid by Company
hereunder or any other Credit Document.

     C. Necessary Consents. Each Credit Party shall have obtained all material consents necessary
or advisable in connection with the transactions contemplated by this Amendment.

     D. Collateral. The Collateral Agent shall have received evidence that each Credit Party
shall have taken or caused to be taken any other action, executed and delivered or caused to be
executed and delivered any other agreement, document and instrument (including, without
limitation, UCC financing statements, originals of securities, instruments and chattel paper and
any agreements governing deposit and/or securities accounts as provided therein) and made or
caused to be made any other filing and recording (other than as set forth herein) reasonably
required by Collateral Agent.

     E. Opinions of Counsel to Credit Parties. Lenders and their respective counsel shall have
received originally executed copies of the favorable written opinions of Hanson, Bridgett,
Marcus, Vlahos & Rudy, LLP as to such matters as Administrative Agent or Syndication Agent may
reasonably request, dated as of the Second Amendment Effective Date and otherwise in form and
substance reasonably satisfactory to Administrative Agent and

 

 

Syndication Agent (and each Credit Party hereby instructs such counsel to deliver such
opinions to Agents and Lenders).

     F. Other Documents. Administrative Agent and Lenders shall have received such other
documents, information or agreements regarding Credit Parties as Administrative Agent or
Collateral Agent may reasonably request.

SECTION III. REPRESENTATIONS AND WARRANTIES

          In order to induce Lenders to enter into this Amendment and to amend the Credit Agreement in
the manner provided herein, each Credit Party which is a party hereto represents and warrants to
each Lender that the following statements are true and correct in all material respects:

     A. Corporate Power and Authority. Each Credit Party, which is party hereto, has all
requisite power and authority to enter into this Amendment and to carry out the transactions
contemplated by, and perform its obligations under, the Credit Agreement as amended by this
Amendment (the “Amended Agreement”) and the other Credit Documents.

     B. Authorization of Agreements. The execution and delivery of this Amendment and the
performance of the Amended Agreement and the other Credit Documents have been duly authorized by
all necessary action on the part of each Credit Party.

     C. No Conflict. The execution and delivery by each Credit Party of this Amendment and the
performance by each Credit Party of the Amended Agreement and the other Credit Documents do not
and will not (i) violate (A) any provision of any law, statute, rule or regulation, or of the
certificate or articles of incorporation or partnership agreement, other constitutive documents
or by-laws of Holdings, Company or any Credit Party or (B) any applicable order of any court or
any rule, regulation or order of any Governmental Authority, (ii) be in conflict with, result in
a breach of or constitute (alone or with notice or lapse of time or both) a default under any
Contractual Obligation of the applicable Credit Party, where any such conflict, violation, breach
or default referred to in clause (i) or (ii) of this Section III.C., individually or in the
aggregate could reasonably be expected to have a Material Adverse Effect, (iii) except as
permitted under the Amended Agreement, result in or require the creation or imposition of any
Lien upon any of the properties or assets of each Credit Party (other than any Liens created
under any of the Credit Documents in favor of Administrative Agent on behalf of Lenders), or (iv)
require any approval of stockholders or partners or any approval or consent of any Person under
any Contractual Obligation of each Credit Party, except for such approvals or consents which will
be obtained on or before the Second Amendment Effective Date and except for any such approvals or
consents the failure of which to obtain will not have a Material Adverse Effect.

     D. Governmental Consents. No action, consent or approval of, registration or filing with or
any other action by any Governmental Authority is or will be required in connection with the
execution and delivery by each Credit Party of this Amendment and the performance by Company and
Holdings of the Amended Agreement and the other Credit Documents, except for such actions,
consents and approvals the failure to obtain or make

 

 

which could not reasonably be expected to result in a Material Adverse Effect or which have
been obtained and are in full force and effect.

     E. Binding Obligation. This Amendment and the Amended Agreement have been duly executed and
delivered by each of the Credit Parties party thereto and each constitutes a legal, valid and
binding obligation of such Credit Party to the extent a party thereto, enforceable against such
Credit Party in accordance with its terms, except as enforceability may be limited by bankruptcy,
insolvency, moratorium, reorganization or other similar laws affecting creditors’ rights
generally and except as enforceability may be limited by general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or at law).

     F. Incorporation of Representations and Warranties from Credit Agreement. The
representations and warranties contained in Section 4 of the Amended Agreement are and will be
true and correct in all material respects on and as of the Second Amendment Effective Date to the
same extent as though made on and as of that date, except to the extent such representations and
warranties specifically relate to an earlier date, in which case they were true and correct in
all material respects on and as of such earlier date.

     G. Absence of Default. No event has occurred and is continuing or will result from the
consummation of the transactions contemplated by this Amendment that would constitute an Event of
Default or a Default.

SECTION IV. ACKNOWLEDGMENT AND CONSENT

          Each Domestic Subsidiary and Holdings are referred to herein as a “Credit Support Party” and
collectively as the “Credit Support Parties”, and the Credit Documents to which they are a party
are collectively referred to herein as the “Credit Support Documents”.

          Each Credit Support Party hereby acknowledges that it has reviewed the terms and provisions of
the Credit Agreement and this Amendment and consents to the amendment of the Credit Agreement
effected pursuant to this Amendment. Each Credit Support Party hereby confirms that each Credit
Support Document to which it is a party or otherwise bound and all Collateral encumbered thereby
will continue to guarantee or secure, as the case may be, to the fullest extent possible in
accordance with the Credit Support Documents the payment and performance of all “Obligations” under
each of the Credit Support Documents to which it is a party (in each case as such terms are defined
in the applicable Credit Support Document).

          Each Credit Support Party acknowledges and agrees that any of the Credit Support Documents to
which it is a party or otherwise bound shall continue in full force and effect and that all of its
obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the
execution or effectiveness of this Amendment. Each Credit Support Party represents and warrants
that all representations and warranties contained in the Amended Agreement and the Credit Support
Documents to which it is a party or otherwise bound are true and correct in all material respects
on and as of the Second Amendment Effective Date to the same extent as though made on and as of
that date, except to the extent such representations and

 

 

warranties specifically relate to an earlier date, in which case they were true and correct in
all material respects on and as of such earlier date.

          Each Credit Support Party acknowledges and agrees that (i) notwithstanding the conditions to
effectiveness set forth in this Amendment, such Credit Support Party is not required by the terms
of the Credit Agreement or any other Credit Support Document to consent to the amendments to the
Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Credit Agreement, this
Amendment or any other Credit Support Document shall be deemed to require the consent of such
Credit Support Party to any future amendments to the Credit Agreement.

SECTION V. MISCELLANEOUS

     A. Reference to and Effect on the Credit Agreement and the Other Credit Documents.

     (i) On and after the Second Amendment Effective Date, each reference in the
Credit Agreement to “this Amendment”, “hereunder”, “hereof”, “herein” or words of
like import referring to the Credit Agreement, and each reference in the other
Credit Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement shall mean and be a reference to the Credit
Agreement as amended by this Amendment.

     (ii) Except as specifically amended by this Amendment, the Credit Agreement and
the other Credit Documents shall remain in full force and effect and are hereby
ratified and confirmed.

     (iii) The execution, delivery and performance of this Amendment shall not
constitute a waiver of any provision of, or operate as a waiver of any right, power
or remedy of any Agent or Lender under, the Credit Agreement or any of the other
Credit Documents.

     B. Headings. Section and Subsection headings in this Amendment are included herein
for convenience of reference only and shall not constitute a part of this Amendment for any other
purpose or be given any substantive effect.

     C. Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES.

     D. Counterparts. This Amendment may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall constitute but
one and the same instrument; signature pages may be detached from multiple separate

 

 

counterparts and attached to a single counterpart so that all signature pages are physically
attached to the same document.

[Remainder of this page intentionally left blank.]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered
by their respective officers thereunto duly authorized as of the date first written above.

	 	 	 	 	 
	COMPANY:                        	AMERICAN REPROGRAPHICS COMPANY, L.L.C.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 

CREDIT SUPPORT PARTIES:

	 	 	 	 	 
	 	AMERICAN REPROGRAPHICS COMPANY

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	A-C REPRODUCTION COMPANY

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	ARC ACQUISITION CORPORATION

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	BLUE PRINT SERVICE COMPANY, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	BPI REPRO, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	DUNN BLUE PRINT COMPANY

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 
	 	ENGINEERING REPRO SYSTEMS, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	E. PAVILION, L.L.C.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	FRANKLIN GRAPHICS CORPORATION

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	GEORGIA BLUE PRINT COMPANY, L.L.C.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	LEET-MELBROOK, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	LICENSING SERVICES INTERNATIONAL, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 
	 	MBC PRECISION IMAGING, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	MCKEE ENTERPRISES, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	MIRROR PLUS TECHNOLOGIES, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	OCB, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	OLYMPIC REPROGRAPHICS, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	PENINSULA BLUEPRINT, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 
	 	PLANWELL, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	QUALITY REPROGRAPHIC SERVICES, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	RAPID BLUEPRINT SUPPLY CO., INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	REPROGRAPHICS NORTHWEST, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	RHODE ISLAND BLUEPRINT CO.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	RIDGWAY’S GP, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 
	 	RIDGWAY’S, LTD.

By: Ridgway’s GP, LLC, its General Partner

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Manager 	 
	 
	 	SUBHUB, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	THE PEiR GROUP INTERNATIONAL, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	THE PEiR GROUP, LLC

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	T-SQUARE EXPRESS, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	T-SQUARE MIAMI, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 
	 	WESTERN BLUE PRINT COMPANY, L.L.C.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 
	 
	 	WILCO REPROGRAPHICS, INC.

 	 
	 	By:  	/s/ Jonathan R. Mather
 	 
	 	Name:  	Jonathan R. Mather 	 
	 	Title:  	Chief Financial Officer 	 

 

 

	 	 	 	 	 
	 	GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Arranger and a Lender

 	 
	 	By:  	/s/ Elizabeth Fischer
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

 

 

	 	 	 	 	 
	ADMINISTRATIVE AGENT:       	GENERAL ELECTRIC CAPITAL CORPORATION

 	 
	 	By:  	/s/ Reuel Andrews
 	 
	 	Name:  	Reuel Andrews 	 
	 	Title:  	Vice Presidentexv10w2

 

EXHIBIT 10.2

American Reprographics Company Acquires Reprographic Division of Southeast Firm Imaging
Technologies Services, Inc.

~ Five states and 19 new locations firmly establishes leadership in the Southeast ~

~ Management transition accelerating ~

GLENDALE, Calif., April 30 /PRNewswire-FirstCall/ — American Reprographics Company (NYSE: ARP),
the nation’s leading provider of reprographics services and technology, today announced the
acquisition of the reprographics division of Atlanta-based Imaging Technologies Services, Inc., the
largest provider of reproduction, document management and related services in the Southeast region
of the United States Imaging Technologies, as the reprographics division is known by its customers,
is the largest acquisition that ARC has completed since its initial public offering in February
2005.

Imaging Technologies operates 19 locations throughout Georgia, Florida, Alabama, North Carolina and
South Carolina. The newly-acquired company’s product and service mix closely mirrors that of
American Reprographics Company. However, it will also enhance ARC’s portfolio with software sales,
support to its core customer base, and the provision of small-document on- demand publishing
services to a variety of clients. Year-end revenues in 2006 for Imaging Technologies were
approximately $42 million. Terms of the acquisition were not disclosed.

“This is a fantastic company and we are very pleased to have them join the ARC family,” said S.
“Mohan” Chandramohan, Chairman and Chief Executive Officer of American Reprographics Company. “The
acquisition also makes a significant contribution to our strategic footprint. For the past five
years, our expansion efforts have been firmly focused on the fastest-growing regions of the
country, of which the Southeast region is most coveted for its strong growth in population and
business development. In combination with our existing infrastructure in the area, the recent
acquisition of MBC, and the addition of Imaging Technologies, American Reprographics is clearly the
largest company of its kind in the region, and is now well-balanced on both coasts.”

The addition of Imaging Technologies also diversifies the Company’s revenue concentration. Prior to
the acquisition, California contributed nearly 50% of ARC’s overall revenue. With the Company’s new
presence in the Southeast, sales from California will contribute approximately 40% to ARC’s
projected revenue for the

 

 

current year.

“We’re very excited to be a part of the American Reprographics family,” said Mark Axford, who, as
former president of the reprographics division of Imaging Technologies Services, Inc., will
continue in that role for American Reprographics Company. “We’ve got a group of incredibly talented
people here who can’t wait to contribute their efforts and ideas to the future success of our new
parent company.”

“Imaging Technologies is an impressive and well-run company with a seasoned and creative management
team. We look forward to working with them,” said K. “Suri” Suriyakumar, President and Chief
Operating Officer of American Reprographics Company. “Our presence in the Mid-Atlantic and
Southeast regions now represents more than 21% of our revenue, which creates a more equitable
geographical distribution of our business and puts the Company in a strong position to leverage
opportunities across an expanded footprint.”

Management Transition Accelerated

American Reprographics Company also announced today that its previously disclosed management
transition is ahead of schedule and proceeding smoothly. In light of this, the Company is
accelerating its succession plan and has announced that current Chief Operating Officer and
President, K. “Suri” Suriyakumar, will become the new Chief Executive Officer on June 1, 2007.

In November 2006, the Company noted that its Chairman and Chief Executive Officer, S. “Mohan”
Chandramohan will be stepping down as Chief Executive Officer. He will, however, remain Chairman of
the Company’s Board of Directors and remains the Company’s largest individual shareholder.

“We allowed nearly 15 months to affect a smooth leadership transition,” said Mr. Chandramohan.
“Considering that Suri and I have been such close partners in the business for so long, it comes as
no surprise that Suri has been able to move faster than planned. He has taken all the appropriate
actions and aligned the necessary resources to create a strong climate of continuing growth for the
business. Therefore, we have decided to move forward with the transition in the near-term.”

Mr. Suriyakumar stated, “I am excited about the opportunities for our business and am eager to take
the Company forward at this important juncture. At the same time, I am extremely appreciative of
the tremendous vision and leadership Mohan has provided to American Reprographics Company. For
nearly 20 years Mohan has been a constant inspiration and shining example for the entire executive
team to follow. I plan to continue his legacy of strong leadership and focused insight as we move
forward into a promising future.”

About American Reprographics Company

 

 

American Reprographics Company is the leading reprographics company in the United States providing
business-to-business document management services to the
architectural, engineering and construction, or AEC industries. The Company provides these services
to companies in non-AEC industries, such as technology, financial services, retail, entertainment,
and food and hospitality, which also require sophisticated document management services. American
Reprographics Company provides its core services through its suite of reprographics technology
products, a network of more than 230 locally-branded reprographics service centers across the U.S.,
and on-site at their customers’ locations. The Company’s service centers are arranged in a hub and
satellite structure and are digitally connected as a cohesive network, allowing the provision of
services both locally and nationally to more than 100,000 active customers.

Forward-Looking Statements Disclaimer

This press release contains forward-looking statements that fall within the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995 regarding future events and the
future financial performance of the Company. Words such as “will,” “going forward,” and similar
expressions also identify forward-looking statements. We wish to caution you that such statements
are only predictions and actual results may differ materially as a result of risks and
uncertainties that pertain to our business. These risks and uncertainties include, among others:

	 	•	 	Future downturns in the architectural, engineering and construction
industries could diminish demand for our products and services
	 
	 	•	 	Competition in our industry and innovation by our competitors may hinder our
ability to execute our business strategy and maintain our profitability
	 
	 	•	 	Failure to anticipate and adapt to future changes in our industry could harm
our competitive position
	 
	 	•	 	Failure to manage our acquisitions, including our inability to integrate and
merge the business operations of the acquired companies, and failure to retain key
personnel and customers of acquired companies could have a negative effect on our future
performance, results of operations and financial condition
	 
	 	•	 	Dependence on certain key vendors for equipment, maintenance services and
supplies, could make us vulnerable to supply shortages and price fluctuations
	 
	 	•	 	Damage or disruption to our facilities, our technology centers, our vendors
or a majority of our customers could impair our ability to effectively provide our
services and may have a significant impact on our revenues, expenses and financial
condition
	 
	 	•	 	If we fail to continue to develop and introduce new services successfully,
our competitive positioning and our ability to grow our business could be harmed.

The foregoing list of risks and uncertainties is illustrative but is by no means exhaustive. For
more information on factors that may affect future performance, please review our SEC filings,
specifically our annual report on Form 10-K for the year ended December 31, 2006, our final
prospectus supplement dated March 8, 2007, and our quarterly reports on Form 10-Q for the quarters
ended June 30, 2006 and September 30, 2006.

 

 

These documents contain important risk factors that could cause actual results to differ materially from those contained in our projections or
forward-looking statements. These forward-looking statements are based on information as of March 19, 2007, and except as required by
law, the Company undertakes no obligation to update or revise any forward-looking statements.

SOURCE American Reprographics Company

04/30/2007

CONTACT: David Stickney, VP of Corporate Communications,

+1-925-949-5100, or dstickney@e-arc.com; or Brendan Lahiff of Financial

Dynamics, +1-415-439-4504, or brendan.lahiff@fd.com

Web site: http://www.e-arc.com

(ARP)

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