Document:

Ex-10.6

 

EXHIBIT 10.6

November 19, 2000

Ms. Kathleen A. DeKam, President

American Color

100 Winners Circle

Brentwood, TN 37027

Dear Kathy:

This will confirm that if American Color, a division of American Color Graphics, Inc. (“ACG”),
terminates your employment without cause, ACG shall continue to pay you your then current base
salary and maintain all your then current benefits (to the extent allowed under the applicable
benefit plans) for a period of two (2) years following the date of termination. In such event, ACG
shall also pay you a pro rata portion of the bonus to which you would have been entitled for the
year of termination had you been employed for the entire year, which bonus shall be payable at the
time bonuses are paid to ACG executives generally. The term “Cause” shall mean the termination of
your employment hereunder in the event of your (i) conviction of any crime or offense involving
money or other property of ACG or any felony, (ii) willful and unreasonable refusal to
substantially perform your duties hereunder, (iii) competition with ACG, or (iv) gross negligence
in the conduct of your duties; provided, however, no termination shall be deemed for “Cause” under
clauses (ii), (iii) or (iv) unless you shall have first received written notice from ACG advising
you of the acts or omissions that constitute the basis for termination and you fail to correct the
acts or omissions complained of within 20 business days following receipt of such notice. Your
employment shall be deemed to have been terminated “without cause” if you terminate your employment
after ACG causes any of the following events to occur: (i) a decrease in your base salary or a
failure to pay you material compensation due and payable to you in connection with your employment
or (ii) a material diminution of your responsibilities or title.

For so long as you are employed by ACG, and so long as you receive payments hereunder, you shall
not, without the prior written consent of ACG, directly or indirectly, as a sole proprietor, member
of a partnership, stockholder or investor, officer or director of a corporation, or as an employee,
associate, consultant or agent of any person, partnership, corporation or other business
organization or entity other than ACG: (i) render any service to or in any way be affiliated with
a competitor (or any person or entity that is reasonably anticipated (to the general knowledge of
you or the public) to become a competitor) of ACG; (ii) solicit, hire, have contact with, or
endeavor to entice away from ACG any person or entity who is, or, during the then most recent
12-month period, was employed by, or had served as an agent or key consultant of, ACG; or (iii)
solicit, hire, have contact with, or endeavor to entice away from ACG any person or entity who is,
or was within the then most recent 12-month period, a customer or client (or reasonably anticipated
(to the general knowledge of you or the public) to become a customer or client) of ACG.

 

 

November 19, 2000

Page 2

You covenant and agree with ACG that you will not at any time, except in performance of your
obligations to ACG hereunder or with the prior written consent of ACG, directly or indirectly,
disclose any secret or confidential information that you may learn or have learned by reason of
your association with ACG. The term “confidential information” includes information not previously
disclosed to the public or to the trade by ACG’s management, or otherwise in the public domain,
with respect to ACG’s products, facilities, applications and methods, trade secrets and other
intellectual property, systems, procedures manuals, confidential reports, product price lists,
customer lists, technical information, financial information (including the revenues, costs or
profits associated with any of ACG’s products), business plans, prospects or opportunities, but
shall exclude any information which (i) is or becomes available to the public or is generally known
in the industry or industries in which ACG operates other than as a result of disclosure by you in
violation of your agreements under this paragraph or (ii) you are required to disclose under any
applicable laws, regulations or directives of any government agency, tribunal or authority having
jurisdiction in the matter or under subpoena or other process of law.

ACG’s rights and obligations under this agreement shall not be assignable by ACG except as incident
to a reorganization, merger or consolidation, or transfer of all or substantially all of ACG’s
business and properties (or portion thereof in which you are employed). Neither this agreement nor
any rights hereunder shall be assignable or otherwise subject to hypothecation by you.

All references to “ACG” include its divisions, subsidiaries and affiliates. This agreement shall
supersede and replace all prior agreements between us relating to your employment.

If the foregoing meets with your approval, please sign and return the enclosed copy of this letter
to the undersigned.

	 	 	 	 	 
	 	Sincerely,

AMERICAN COLOR GRAPHICS, INC.

 	 
	 	By:  	/s/  Stephen M. Dyott
 	 
	 	 	Stephen M. Dyott 	 
	 	 	Chairman and Chief Executive Officer 	 
	 

	 	 	 
	ACCEPTED AND AGREED TO:	 	

	/s/ K. DeKam

Kathleen A. DeKamEx-10.12(c)

 

EXHIBIT 10.12(c)

THIRD AMENDMENT TO CREDIT AGREEMENT

AND WAIVER AND CONSENT

     This THIRD AMENDMENT TO CREDIT AGREEMENT AND WAIVER AND CONSENT (this “Amendment”),
dated as of April 7, 2005, is by and among AMERICAN COLOR GRAPHICS, INC., a New York Corporation
(the “Borrower”), EACH OF THE LENDERS SIGNATORY HERETO, GECC CAPITAL MARKETS GROUP INC., as
Syndication Agent (the “Syndication Agent”), and BANK OF AMERICA, N.A., as Administrative
Agent and Collateral Agent for the Lenders (in such capacity, the “Agent”). Capitalized
terms used herein and not otherwise defined shall have the meaning assigned such term in the Credit
Agreement (as defined below).

RECITALS:

     A. The Borrower, the Lenders signatory thereto, the Syndication Agent and the Agent are
parties to that certain Credit Agreement, dated as of July 3, 2003 (as amended to the date hereof,
the “Credit Agreement” as amended by, and together with, this Amendment, and as hereinafter
amended, modified, supplemented, extended or restated from time to time, being called the
“Amended Agreement”).

     B. The Borrower has requested that the Lenders consent to (a) the sale of certain assets of
the Borrower located at its Pittsburg, California leased facility as more specifically described on
Schedule I hereto (the “Subject Assets”) and (b) the release of any Liens of the
Agent and the Lenders on the Subject Assets;

     C. The parties hereto (a) agree to amend the Credit Agreement as set forth below and (b) agree
to the waiver, consent and release as set forth below.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter
contained, the parties hereto agree as follows:

     SECTION 1.01 Amendment to Annex A to the Credit Agreement. (a) The definition of
“Fixed Asset Maximum” set forth in Annex A to the Credit Agreement is hereby amended by (1)
deleting the reference to “$409,101” in the second line thereof and inserting the dollar amount
“$364,306” in replacement thereof and (2) deleting the reference to the date “April 1, 2004” in the
third line thereof and inserting the date “May 1, 2005” in replacement thereof.

     (b) The definition of “Required Lenders” set forth in Annex A to the Credit Agreement is
hereby deleted in its entirety and replaced with the following:

     “Required Lenders” means at any time Lenders whose Pro Rata Shares equal 100% of the
aggregate of all Lenders’ Pro Rata Shares.

     SECTION 1.02 Waiver, Consent and Release. The Lenders hereby waive compliance with
Section 7.9 of the Credit Agreement with respect to the closing of the sale of certain assets of
the Borrower located at its Pittsburg, California leased facility, as more specifically described
on Schedule I hereto (the “Subject Assets”), and consent to

 

and authorize (a) the sale of the Subject Assets and (b) the release by the Agent of any Liens
of the Agent and the Lenders on the Subject Assets. The parties hereto acknowledge and agree that
(i) the net proceeds of the sale of the Subject Assets shall be applied as set forth in Section
3.5(b) of the Credit Agreement and (ii) until any adjustment in the Borrowing Base based on the
Appraisal Value of Eligible Equipment on any Scheduled Appraisal Date, the Borrowing Base shall be
reduced by an amount equal to $3,200,000 as a result of (and effective as of the date the Borrower
receives the proceeds of) the sale of the Subject Assets, notwithstanding any other interpretation
available as to the calculation of the Borrowing Base under the Credit Agreement. The Borrower
hereby acknowledges that the waiver contained herein is granted by the Lenders only for the
specific instance specified herein and in no manner creates a course of dealing and that each term
and provision of the Credit Agreement continues in full force and effect except as specifically
waived hereby.

     SECTION 1.03 Representations and Warranties. The Borrower hereby represents and
warrants to each Lender and the Agent, on the Amendment Effective Date (as hereinafter defined), as
follows:

     (a) After giving effect to this amendment, the representations and warranties set forth in
Article 6 of the Credit Agreement, and in each other Loan Document, are true and correct in all
material respects on and as of the date hereof and on and as of the Amendment Effective Date (as
defined in Section 1.03) with the same effect as if made on and as of the date hereof or
the Amendment Effective Date, as the case may be, except to the extent such representations and
warranties expressly relate solely to an early date.

     (b) Each of the Borrower and the other Credit Parties is in compliance with all terms and
conditions of the Credit Agreement and the other Loan Documents on its part to be observed and
performed and no Default or Event of Default has occurred and is continuing.

     (c) The execution, delivery and performance by the Borrower of this Amendment have been duly
authorized by the Borrower.

     (d) This Amendment constitutes the legal, valid and binding obligation of the Borrower,
enforceable against the Borrower in accordance with its terms, except to the extent that
enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or
other similar laws affecting the enforcement of creditors’ rights or by the effect of general
equitable principles.

     (e) The execution, delivery and performance by the Borrower of this Amendment do not and will
not conflict with, or constitute a violation or breach of, or result in the imposition of any Lien
upon the property of the Borrower or any of its Subsidiaries, by reason of the terms of (i) any
contract, mortgage, lease, agreement, indenture, or instrument to which the Borrower is a party or
which is binding upon it, (ii)

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any Requirement of Law applicable to the Borrower, or (iii) the certificate or articles of
incorporation or by-laws or the limited liability company or limited partnership agreement of the
Borrower.

     SECTION 1.04 Effectiveness. This Amendment shall become effective only upon
satisfaction of the following conditions precedent (the first date upon which each such condition
has been satisfied being herein called the “Amendment Effective Date”):

     (a) The Agent shall have received duly executed counterparts of this Amendment which, when
taken together, bear the authorized signatures of the Borrower, the Agent and all Lenders.

     (b) The Agent and the Lenders shall be satisfied that the representations and warranties set
forth in Section 1.03 of this Amendment are true and correct on and as of the Amendment
Effective Date and that no Default or Event of Default has occurred and is continuing on and as of
the Amendment Effective Date.

     (c) There shall not be any action pending or any judgment, order or decree in effect which, in
the judgment of the Agent or the Lenders, is likely to restrain, prevent or impose materially
adverse conditions upon the performance by the Borrower or any other Credit Party of its
obligations under the Credit Agreement or the other Loan Documents.

     (d) The Agent shall have received such other documents, legal opinions, instruments and
certificates relating to this Amendment as it shall reasonably request and such other documents,
legal opinions, instruments and certificates that shall be reasonably satisfactory in form and
substance to the Agent and the Lenders. All corporate proceedings taken or to be taken in
connection with this Amendment and documents incidental thereto whether or not referred to herein
shall be reasonably satisfactory in form and substance to the Agent and the Lenders.

     SECTION 1.05 Guarantor’s Reaffirmation. By its acknowledgement below, the Guarantor hereby
(i) consents to the terms of this Amendment, (ii) acknowledges and reaffirms all of its obligations
and undertakings under the Facility Guaranty and (iii) acknowledges and agrees that the Facility
Guaranty is and shall remain in full force and effect in accordance with the terms thereof.

     SECTION 1.06 Expenses. The Borrower shall pay all reasonable out-of-pocket expenses
incurred by Agent in connection with the preparation, negotiation, execution and delivery of this
Amendment, including, but not limited to, the reasonable fees and disbursements of counsel to the
Agent.

     SECTION 1.07 Cross-References. References in this Amendment to any Section are,
unless otherwise specified, to such Section of this Amendment.

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     SECTION 1.08 Instrument Pursuant to Credit Agreement. This Amendment is a Loan
Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated
herein) be construed, administered and applied in accordance with the terms and provisions of the
Credit Agreement.

     SECTION 1.09 Further Acts. Each of the parties to this Amendment agrees that at any
time and from time to time upon the written request of any other party, it will execute and deliver
such further documents and do such further acts and things as such other party may reasonably
request in order to effect the purposes of this Amendment.

     SECTION 1.10 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

     (a) THIS AMENDMENT AND EACH OF THE OTHER LOAN DOCUMENTS SHALL BE INTERPRETED AND THE RIGHTS
AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK; PROVIDED THAT THE AGENT AND THE LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL
LAW.

     (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS SECOND AMENDMENT OR ANY OTHER LOAN
DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE BOROUGH OF MANHATTAN OR OF
THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS
AMENDMENT, EACH OF THE BORROWER, EACH OTHER CREDIT PARTY, THE AGENT AND THE LENDERS CONSENTS, FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF
THE BORROWER, EACH OTHER CREDIT PARTY, THE AGENT AND THE LENDERS IRREVOCABLY WAIVES ANY OBJECTION,
INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON
CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN
SUCH JURISDICTION IN RESPECT OF THIS SECOND AMENDMENT OR ANY DOCUMENT RELATED HERETO.
NOTWITHSTANDING THE FOREGOING: (1) THE AGENT AND THE LENDERS SHALL HAVE THE RIGHT TO BRING ANY
ACTION OR PROCEEDING AGAINST THE BORROWER OR ANY OTHER CREDIT PARTY OR THEIR RESPECTIVE PROPERTY IN
THE COURTS OF ANY OTHER JURISDICTION THE AGENT OR THE LENDERS DEEM NECESSARY OR APPROPRIATE IN
ORDER TO REALIZE ON THE COLLATERAL OR OTHER SECURITY FOR THE OBLIGATIONS AND (2) EACH OF THE
PARTIES HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE IMMEDIATELY PRECEDING
SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE JURISDICTIONS.

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     (c) THE BORROWER AND EACH OTHER CREDIT PARTY HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL
PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL
(RETURN RECEIPT REQUESTED) DIRECTED TO THE BORROWER AT ITS ADDRESS SET FORTH IN SECTION
13.8 OF THE CREDIT AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS
AFTER THE SAME SHALL HAVE BEEN SO DEPOSITED IN THE U.S. MAILS POSTAGE PREPAID. NOTHING CONTAINED
HEREIN SHALL AFFECT THE RIGHT OF AGENT OR THE LENDERS TO SERVE LEGAL PROCESS BY ANY OTHER MANNER
PERMITTED BY LAW.

     (d) THE BORROWER, EACH OTHER CREDIT PARTY, THE LENDERS AND THE AGENT EACH IRREVOCABLY WAIVE
THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING
OUT OF OR RELATED TO THIS AMENDMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE
PARTIES AGAINST ANY OTHER PARTY OR ANY AGENT-RELATED PERSON, PARTICIPANT OR ASSIGNEE, WHETHER WITH
RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE BORROWER, EACH OTHER CREDIT PARTY, THE
LENDERS AND THE AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT
TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR
RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION,
COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AMENDMENT OR THE OTHER LOAN DOCUMENTS OR ANY PROVISION HEREOF OR THEREOF.
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO
THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS.

     SECTION 1.11 Counterparts. This Amendment may be executed in any number of
counterparts and by the different parties hereto in separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together constitute one and the
same instrument.

     SECTION 1.12 Severability. In case any provision in or obligation under this
Amendment or the other Loan Documents shall be invalid, illegal or unenforceable in any
jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations,
or of such provision or obligation in any other jurisdiction, shall not in any way be affected or
impaired thereby.

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     SECTION 1.13 Benefit of Agreement. This Amendment shall be binding upon and inure to
the benefit of and be enforceable by the respective successors and assigns of the parties hereto;
provided that the Borrower may not assign or transfer any of its interest hereunder without the
prior written consent of the Lenders.

     SECTION 1.14 Integration. This Amendment represents the agreement of the Borrower,
each other Credit Party, the Agent and each of the Lenders signatory hereto with respect to the
subject matter hereof, and there are no promises, undertakings, representations or warranties
relative to the subject matter hereof not expressly set forth or referred to herein or in the other
Loan Documents.

     SECTION 1.15 Confirmation. Except as expressly amended by the terms hereof, all of
the terms of the Credit Agreement and the other Loan Documents shall continue in full force and
effect and are hereby ratified and confirmed in all respects.

     SECTION 1.16 Loan Documents. Except as expressly set forth herein, the amendments
provided herein shall not by implication or otherwise limit, constitute a waiver of, or otherwise
affect the rights and remedies of the Lenders or the Agent under the Amended Agreement or any other
Loan Document, nor shall they constitute a waiver of any Event of Default other than as
specifically set forth herein, nor shall they alter, modify, amend or in any way affect any of the
terms, conditions, obligations, covenants or agreements contained in the Amended Agreements or any
other Loan Document. Each of the amendments provided herein shall apply and be effective only with
respect to the provisions of the Amended Agreement specifically referred to by such amendments.
Except as expressly amended herein, the Amended Agreement and the other Loan Documents shall
continue in full force and effect in accordance with the provisions thereof. As used in the
Amended Agreement, the terms “Agreement”, “herein”, “hereinafter”, “hereunder”, “hereto” and words
of similar import shall mean, from and after the date hereof, the Amended Agreement.

[Signature Pages to Follow]

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     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to
be duly executed and delivered as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

AMERICAN COLOR GRAPHICS, INC.

 	 
	 	By:  	/s/ Patrick Kellick
	 
	 	 	Name:  	Patrick Kellick 	 
	 	 	Title:  	Senior Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT AND
COLLATERAL AGENT:

BANK OF AMERICA, N.A., as the Agent

 	 
	 	By:  	/s/ Jang
S. Kim

	 
	 	 	Name:  	Jang S. Kim 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	SYNDICATION AGENT:

GECC CAPITAL MARKETS GROUP INC., as

Syndication Agent

 	 
	 	By:  	/s/ Alan
T. White

	 
	 	 	Name:  	Alan T. White 	 
	 	 	Title:  	Duly Authorized Signatory 	 
	 

	 	 	 	 	 
	 	LENDERS:

BANK OF AMERICA, N.A., as a Lender

 	 
	 	By:  	/s/ Jang
S. Kim

	 
	 	 	Name:  	Jang S. Kim 	 
	 	 	Title:  	Vice President 	 

7

 

	 	 	 	 	 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL 

CORPORATION, as a Lender

 	 
	 	By:  	/s/ Eric
A. Schaefer

	 
	 	 	Name:  	Eric A. Schaefer 	 
	 	 	Title:  	Duly Authorized Signatory 	 
	 

	 	 	 	 	 
	 	WEBSTER BUSINESS CREDIT

CORPORATION, as a Lender

 	 
	 	By:  	/s/ Joseph
J. Zautra

	 
	 	 	Name:  	Joseph J. Zautra 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	
ACKNOWLEDGED AND AGREED
	 	
	
by the undersigned Guarantor:	 	 
	
ACG HOLDINGS, INC., a Delaware corporation	 	 
	By:	 	/s/ Patrick Kellick

	 	 
	Name:	 	

Patrick Kellick	 	 
	Title:	 	
Senior Vice President and Chief

Financial Officer	 	 

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