Document:

exv10w1

Exhibit 10.1

FIRST AMENDMENT

Dated as of June 28, 2011

to

AMENDED AND RESTATED INDENTURE

AND SERVICING AGREEMENT

Dated as of October 1, 2010

by and among

SIERRA TIMESHARE CONDUIT RECEIVABLES FUNDING II, LLC,

as Issuer

and

WYNDHAM CONSUMER FINANCE, INC.,

as Servicer

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

and

U.S. BANK NATIONAL ASSOCIATION,

as Collateral Agent

 

 

FIRST AMENDMENT

to

AMENDED AND RESTATED INDENTURE AND SERVICING AGREEMENT

     THIS FIRST AMENDMENT dated as of June 28, 2011 (this “Amendment”) amends that AMENDED AND
RESTATED INDENTURE AND SERVICING AGREEMENT dated as of October 1, 2010 (the “Original Indenture”)
and both this Amendment and the Original Indenture are by and among SIERRA TIMESHARE CONDUIT
RECEIVABLES FUNDING II, LLC, a limited liability company organized under the laws of the State of
Delaware, as issuer, WYNDHAM CONSUMER FINANCE, INC., a Delaware corporation, as servicer, WELLS
FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as trustee and U.S. BANK NATIONAL
ASSOCIATION, a national banking association, as collateral agent.

RECITALS

     WHEREAS, the Issuer, the Servicer, the Trustee and the Collateral Agent desire to amend the
Original Indenture as provided herein.

     WHEREAS, in accordance with (x) Section 15.1(b) of the Original Indenture, upon the Amendment
Effective Date (as defined herein) the Required Facility Investors have consented to such amendment
of the Original Indenture and the Rating Agency Condition has been satisfied, (y) Section 15.1(g)
of the Original Indenture, each Funding Agent and each Non-Conduit Committed Purchaser has
consented to such amendment of the Original Indenture and (z) Section 15.16 of the Original
Indenture, the Deal Agent has consented to such amendment of the Original Indenture.

     WHEREAS, capitalized terms used in this Amendment and not otherwise defined herein or amended
hereby shall have the meanings assigned to such terms in the Original Indenture.

     NOW THEREFORE, in consideration of the mutual agreements herein contained, each party agrees
as follows for the benefit of the other parties and for the benefit of the Noteholders.

     SECTION 1. Amendment of Definitions. The definition of each of the
following terms contained in Section 1.1 of the Original Indenture is hereby amended and restated
to read in its entirety as follows:

     “AAA Advance Rate” shall mean,

 

 

     (i) prior to but excluding the October 2010 Payment Date, 51%;

     (ii) as of the October 2010 Payment Date to but excluding the Third Amendment Effective
Date, 51.5%; and

     (iii) as of the Third Amendment Effective Date and thereafter 52%.

     “Excess Concentration Amount” shall mean, on any date, an amount equal to the
sum of (i) the Non-US Excess Amount, (ii) the Green Loans Excess Amount, (iii) the Delayed
Completion Green Loans Excess Amount, (iv) the New Seller Excess Amount, (v) the Transition
Period Excess Amount, (vi) the Large Loans Excess Amount, (vii) the State Concentration
Excess Amount, (viii) the Documents in Transit Excess Amount, (ix) the Fixed Week Excess
Amount, (x) the Extended Term Excess Amount, (xi) the Presidential Reserve Loan Excess
Amount, (xii) the WorldMark Loan Excess Amount, (xiii) the WorldMark Loan FICO Score 650
Excess Amount, (xiv) the WorldMark Loan FICO Score 700 Excess Amount, (xv) the WorldMark
Loan FICO Score 750 Excess Amount, (xvi) the WorldMark Loan FICO Score 800 Excess Amount,
(xvii) the Wyndham Loan FICO Score 650 Excess Amount, (xviii) the Wyndham Loan FICO Score
700 Excess Amount, (xix) the Wyndham Loan FICO Score 750 Excess Amount, (xx) the Wyndham
Loan FICO Score 800 Excess Amount, (xxi) the California Excess Amount, (xxii) the WAAM Loan
Aggregate Excess Amount and (xxiii) the WAAM Loan Developer Excess Amount.

     “Large Loans Excess Amount” shall mean, on any date, the sum of (a) the
combined amount of the Loan Balances on such date of all Pledged Loans which have a Loan
Balance on such date greater than $100,000 plus (b) the amount by which (i) the combined
amount of the Loan Balances on such date of all Pledged Loans which have a Loan Balance on
such date of $75,000 or more (but not more than $100,000) on such date exceeds (ii) (A) if
the weighted average FICO Score for all Pledged Loans which have a Loan Balance on such date
of $75,000 or more (but not more than $100,000) is 700 or greater, twelve percent (12%) of
the Adjusted Loan Balance on such date or (B) if the weighted average FICO Score for all
Pledged Loans which have a Loan Balance on such date of $75,000 or more (but not more than
$100,000) is less than 700, five percent (5.0%) of the Adjusted Loan Balance on such date.

     “Maturity Date” shall mean the August 2029 Payment Date.

     “Principal Distribution Amount” shall mean for any Payment Date an amount equal
to the Borrowing Base Shortfall on such Payment Date; provided, however, that for any
Payment Date on which (x) the Securitized Pool Three Month Rolling Average Delinquency
Percentage exceeds 4.50% or (y) the Securitized Pool Four Month Default Percentage exceeds
1.50%, the Principal Distribution Amount shall be the lesser of (a) the Notes Principal
Amount as of such Payment Date and (b) the excess of (i) the entire amount of the remaining
Available Funds after making provisions for the payments and distributions required under
clauses FIRST through FIFTH in Section 4.1 on such Payment Date over (ii) the amount, if
any, by which the amount on deposit in the Reserve Account is less than the Reserve Required
Amount on such Payment Date.

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     SECTION 2. Addition of Definitions. Section 1.1 of the Original Indenture is
hereby amended by adding each of the following definitions thereto in the appropriate
alphabetical order:

     “ClubWyndham Access” shall have the meaning assigned in the applicable Seller
Purchase Agreement.

     “Third Amendment Effective Date” shall mean June 28, 2011.

     “WAAM Loan” shall have the meaning assigned in the applicable Seller Purchase
Agreement.

     “WAAM Loan Developer” shall have the meaning assigned in the applicable Seller
Purchase Agreement.

     “WAAM Loan Developer Excess Amount” shall mean, on any date, the sum, with
respect to all WAAM Loan Developers, of the amount, if any, with respect to each such WAAM
Loan Developer by which (i) the sum of the Loan Balances on such date for all Pledged Loans
which are WAAM Loans with respect to WAAM Timeshare Properties relating to a WAAM Real
Property Interest owned (prior to any transfer to ClubWyndham Access or an Obligor) by such
WAAM Loan Developer exceeds (ii) five percent (5%) of the Adjusted Loan Balance on such
date.

     “WAAM Loan Aggregate Excess Amount” shall mean, on any date, the amount, if
any, by which (i) the excess of (x) the sum of the Loan Balances on such date for all
Pledged Loans which are WAAM Loans over (y) the WAAM Loan Developer Excess Amount on such
date exceeds (ii) ten percent (10%) of the Adjusted Loan Balance on such date.

     “WAAM Real Property Interest” shall have the meaning assigned in the applicable
Seller Purchase Agreement.

     “WAAM Timeshare Property” shall have the meaning assigned in the applicable
Seller Purchase Agreement.

     SECTION 3. Deletion of Definition.

     Section 1.1 of the Original Indenture is hereby amended by deleting the following definition
in its entirety:

     “Qualifying Payment Date”

     SECTION 4. Amendment to Section 1.2. Section 1.2(a) of the Original Indenture is
hereby amended by deleting the term “Second Amendment Effective Date” therein, and inserting “Third
Amendment Effective Date” in lieu thereof.

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     SECTION 5. Amendments to Amortization Events. Section 10.1 of the Original Indenture
is hereby amended by deleting each of clauses (f), (g) and (r) thereof in their entirety and
inserting the following in lieu thereof:

     (f) the Four Month Default Percentage as of any Payment Date exceeds 1.50%;

     (g) the Three Month Rolling Average Delinquency Ratio as calculated for any
Payment Date exceeds 4.50%;

     (r) the Securitized Pool Three Month Rolling Average Delinquency Percentage
exceeds 4.50% for four consecutive Payment Dates;

     SECTION 6. No Other Amendments. Except as expressly amended, modified and
supplemented hereby, the provisions of the Original Indenture are and shall remain in full force
and effect.

     SECTION 7. Governing Law. This Amendment is governed by and shall be construed in
accordance with the laws of the State of New York and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

     SECTION 8. Counterparts. This Amendment may be executed in two or more counterparts
(and by different parties on separate counterparts), each of which shall be an original, but all of
which together shall constitute one and the same instrument.

     SECTION 9. Headings. The headings herein are for purposes of reference only and shall
not otherwise affect the meaning or interpretation of any provision hereof.

     SECTION 10. Effectiveness. This Amendment shall be effective upon the date (the
“Amendment Effective Date”) that is the later of (i) the date hereof and (ii) the first date on
which each of the following conditions precedent shall have been satisfied:

     (a) This Amendment shall have been executed and delivered by each of the parties
hereto;

     (b) The Trustee shall have received the written consent of the Required Facility
Investors, each Funding Agent, each Non-Conduit Committed Purchaser and the Deal Agent to
this Amendment;

     (c) The Rating Agency Condition (as such term is defined in the Original Indenture)
shall have been satisfied;

     (d) The Trustee shall have received any Opinions of Counsel required by the Trustee to
be delivered to the Trustee; and

     (e) The First Amendment to the Note Purchase Agreement, dated the date hereof (the “NPA
Amendment”), shall have been executed and delivered by each party thereto.

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     SECTION 11. Purchaser Invested Amount. The Issuer hereby notifies and directs the
Trustee that on June 28, 2011:

          1. After giving effect to the Purchaser Assignment and Assumption Agreement dated June 28,
2011 among AMSTERDAM FUNDING CORPORATION and THE ROYAL BANK OF SCOTLAND PLC as transferors and THE
ROYAL BANK OF SCOTLAND PLC, as a Non-Conduit Committed Purchaser and the acquiring Purchaser, the
entire principal amount represented by the Series 2008-A Note registered in the name of THE ROYAL
BANK OF SCOTLAND PLC, as Funding Agent, will have been transferred to and acquired by THE ROYAL
BANK OF SCOTLAND PLC.

          2. On June 28, 2011, the Series 2008-A Notes shall represent the aggregate Notes Principal
Amount of $242,281,975.88 and on such date and after giving effect to the Purchaser Assignment and
Assumption Agreement dated June 28, 2011 (the “Second Assignment Agreement”) among FALCON ASSET
SECURITIZATION COMPANY and JPMORGAN CHASE BANK, N.A.; BANK OF AMERICA, N.A.; ALPINE SECURITIZATION
CORP. and CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH; SARATOGA FUNDING
CORP., LLC and DEUTSCHE BANK
AG, NEW YORK BRANCH; and THE ROYAL BANK OF SCOTLAND PLC as transferors and the acquiring
Purchasers party thereto, the Series 2008-A Notes shall be registered to the Purchasers listed on
Schedule I to this Amendment and the outstanding principal amount of each Series 2008-A Note shall
be as shown on such Schedule I.

          3. Upon receipt by the Trustee of the Series 2008-A Note registered in the name of THE ROYAL
BANK OF SCOTLAND PLC, as Funding Agent, the Trustee shall cancel such note and shall authenticate
and deliver to THE ROYAL BANK OF SCOTLAND PLC, as a Non-Conduit Committed Purchaser, a Series
2008-A Note registered in the name of THE ROYAL BANK OF SCOTLAND PLC and in a stated amount not to
exceed $92,000,000.

          4. On the basis of the transfers occurring under the Second Assignment Agreement, the Issuer
has executed and delivered to the Trustee a Series 2008-A Note in an amount not to exceed
$40,000,000 which the Trustee shall authenticate and deliver to GOLDMAN SACHS BANK USA, as a
Non-Conduit Committed Purchaser.

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     IN WITNESS WHEREOF, Issuer, the Servicer, the Trustee and the Collateral Agent have caused
this Indenture to be duly executed by their respective officers as of the day and year first above
written.

	 	 	 	 	 
	 	SIERRA TIMESHARE CONDUIT

RECEIVABLES FUNDING II, LLC,

as Issuer

 	 
	 	By:  	/s/ Mark A. Johnson
 	 
	 	 	Name:  	Mark A. Johnson 	 
	 	 	Title:  	President 	 
	 
	 	WYNDHAM CONSUMER FINANCE, INC.,

as Servicer

 	 
	 	By:  	/s/ Mark A. Johnson
 	 
	 	 	Name:  	Mark A. Johnson 	 
	 	 	Title:  	President 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	/s/ Jennifer C. Westberg
 	 
	 	 	Name:  	Jennifer C. Westberg 	 
	 	 	Title:  	Vice President 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as

as Collateral Agent

 	 
	 	By:  	/s/ Tamara Schultz-Fugh
 	 
	 	 	Name:  	Tamara Schultz-Fugh 	 
	 	 	Title:  	Vice President 	 

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SCHEDULE I

	 	 	 	 	 
	 	 	Purchaser
	Purchaser (identified by reference to Funding Agent or
Non-Conduit Committed Purchaser)	 	Invested Amount
	 
	 	 	 	 
	JPMorgan Chase Bank, N.A.
	 	$	41,187,935.88	 
	Bank of America, N.A.
	 	 	37,149,902.97	 
	Compass Bank
	 	 	16,152,131.73	 
	Credit Suisse AG, New York Branch
	 	 	37,149,902.97	 
	Deutsche Bank, AG, New York Branch
	 	 	37,149,902.97	 
	Goldman Sachs Bank USA
	 	 	16,152,131.73	 
	The Royal Bank of Scotland plc
	 	 	37,149,902.97	 
	The Bank of Nova Scotia
	 	 	20,190,164.66exv10w1

Exhibit 10.1

INDEMNIFICATION AGREEMENT

This
Indemnification Agreement (the “Agreement”) dated July 29, 2011, effective as of
July 18, 2011, by and between American Reprographics Company, a Delaware corporation (the
“Company”), and John Toth (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.

 

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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;

 

5

 

(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]

 

7

 

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/ John Toth
 	 	 
	John Toth 	 	 
	Address: ________________________________ 

               ________________________________ 	 	 
	 

 

8

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