EXHIBIT 10.19
INDEMNIFICATION AGREEMENT
THIS AGREEMENT (the "Indemnification Agreement") is dated April 10, 2000,
by and among ARC Acquisition Co., L.L.C., a Delaware limited liability company
("Purchaser"), American Reprographics Holdings, L.L.C., a California limited
liability company ("Holdco"), American Reprographics Company LLC, a California
limited liability company (the "Company"), Xxxxxxxxxxxxx Xxxxxxxxxxxx ("Mohan"),
Kumarakulasingam Xxxxxxxxxxx ("Suri"), Micro Device Inc., a California
corporation ("Micro"), Xxxxxxxx-Post Company, a California corporation ("DP"),
ZS Fund L.P., a Delaware limited partnership ("ZS"), and ZS Ford L.L.C. a
Delaware limited liability company ("ZS Ford" ) (each party signatory hereto
other than Purchaser, Holdco and the Company being referred to herein as an
"Indemnitor," and, collectively, as the "Indemnitors"). ZS and ZS Ford are
sometimes referred to herein as the "ZS Entities", and Mohan, Suri and Micro are
sometimes referred to as the "MS Parties".
RECITALS
A. Purchaser, Holdco, Company, and certain members of Holdco (the
"Members") have entered into a Recapitalization and Purchase Agreement dated as
of April 6, 2000 (the "Recap Agreement") pursuant to which Holdco and its
Subsidiaries will be recapitalized through the steps described in the Recap
Agreement and certain obligations of such entities will be satisfied (such
transactions and steps being referred to herein as the "Recapitalization") and
following which Purchaser will purchase from the Sellers (as defined in the
Recap Agreement) certain Units of Holdco upon the terms and subject to the
conditions provided in the Recap Agreement immediately following the
Recapitalization.
B. It is a condition to the consummation of the Recapitalization by the
Purchaser that prior to or concurrent with the Recapitalization the Indemnitors
enter into and approve this Indemnification Agreement.
C. For purposes of this Agreement, Purchaser, the Company and Holdco and
their respective Affiliates, subsidiaries, shareholders, members, managers,
officers, directors, lenders and agents, and the heirs, successors and assigns
of each of the foregoing are herein referred to as a "Purchaser Indemnitee" and,
collectively, the "Purchaser Indemnitees."
AGREEMENTS
Therefore, for the promises contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:
1. Definitions. Unless otherwise defined herein, terms used herein shall
have the meanings ascribed to them in the Recap Agreement. As used in this
Indemnification Agreement, the following terms shall have the following
meanings:
(a) "Damages" means all liabilities, obligations, judgments,
demands, claims, actions or causes of action, regulatory, legislative or
judicial proceedings or investigations, assessments, levies, losses, fines,
penalties, damages, costs and expenses. Without limiting the generality of the
foregoing, Damages shall include, without limitation, reasonable attorneys',
arbitrators', accountants', investigators', and experts fees and expenses,
sustained or incurred in connection with the enforcement by a Purchaser
Indemnitee of its rights and remedies under this Indemnification Agreement, or
sustained or incurred in connection with the defense or investigation of any
Third Party Claim (as herein defined);
1
(b) "Third Party Claim" shall mean any claim, action, suit,
proceeding, investigation, or like matter which is asserted or threatened by a
Person other than the parities, hereto, their successors and permitted assigns,
against any Purchaser Indemnitee or to which a Purchaser Indemnitee is subject.
2. Indemnitor Indemnification Obligations. Indemnitors severally, and not
jointly, shall indemnify, save and keep the Purchaser Indemnitees harmless from
and against all Damages sustained or incurred by any Purchaser Indemnitee as a
result of, or arising out of, by virtue of, or in connection with: (i) any
liability, obligation or claim (including Third Party Claims) arising out of or
relating to the Ford Graphics Group, L.L.C. Key Employee Incentive Compensation
Plan dated as of November 20, 1997 (the "Plan") or any awards issued or payments
made thereunder or claimed to be required to be issued or paid thereunder or in
connection therewith or any other actions taken with respect thereto, and (ii)
any liability or other obligation with respect to termination of the Plan. The
ZS Entities and the MS Parties shall not be required to indemnify the Purchaser
Indemnitees pursuant to this Section 2 for an amount in excess of their
respective Indemnification Amounts. As used herein, the term "Indemnification
Amounts" shall mean (i) in the case of the ZS Entities, fifty percent (50%) of
the Damages described in this Section 2 and (ii) in the case of the MS Parties,
fifty percent (50%) of the Damages described in this Section 2.
3. Procedures. With respect to procedural matters, claims for
indemnification shall be governed by Section 9.2(d) of the Recap Agreement as if
such claims were being made under the Recap Agreement.
4. Subrogation. Indemnitors shall not be entitled to require that any
action be brought against any other Person before action is brought against it
hereunder by the Purchaser Indemnitee, but shall be subrogated to any right of
action to the extent that it has paid or successfully defended against any Third
Party Claim.
5. Miscellaneous.
(a) Notices. All notices required or permitted to be given hereunder
shall be in writing and may be delivered by hand, by facsimile, by nationally
recognized private courier, or by United States mail. Notices delivered by mail
shall be deemed given three (3) business days after being deposited in the
United States mail, postage prepaid, registered or certified mail, return
receipt requested. Notices delivered by hand, by facsimile or by nationally
recognized private courier shall be deemed given on the day of receipt (if such
day is a business day or, if such day is not a business day, the next succeeding
business day); provided, however, that a notice delivered by facsimile shall
only be effective if and when confirmation is received of receipt of the
facsimile at the number provided in this Section 7(a). All notices shall be
addressed as follows:
If to Purchaser, to:
ARC Acquisition Co., L.L.C.
c/o Code Xxxxxxxx & Xxxxxxx
00 Xxxxx Xxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxxx X. Xxxxxxx
Xxxxxx X. Xxxxxx
with a copy (which shall not constitute notice to the
Purchaser) to:
Altheimer & Xxxx
2
00 Xxxxx Xxxxxx Xxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Facsimile: (000) 000-0000
Attention: S. Xxxxxxx Xxxx
Xxxxx X. Xxxxxx
If to Holdco, to:
c/o American Reprographics Company, L.L.C.
000 Xxxx Xxxxxx
Xxxxx Xxxxxxxx, XX 00000
Attention: Xxxxx Xxxxxxxxxxxx
Suri Xxxxxxxxxxx
Facsimile: (000) 000-0000
and to:
ZS Fund L.P.
000 Xxxx 00xx Xxxxxx
Xxxxx 0000
Xxx Xxxx, XX 00000
Attention: Xxxxxx X. Home
Xxxxxxx X. Xxxxx
Facsimile: (000) 000-0000
with a copy (which shall not constitute notice to the Company)
to:
Xxxxxxxx & Xxxxx
000 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxxxxx
Xxxxxxxx X. Xxxxx
Facsimile: (000) 000-0000
and to:
Xxxxxx, Xxxxxxxx, Marcus, Xxxxxx & Xxxx
000 Xxxxxx Xxxxxx
00xx Xxxxx
Xxx Xxxxxxxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxxxx
Xxxx X. Xxxx
Facsimile: (000) 000-0000
If to ZS, to:
c/o ZS Fund L.P.
000 Xxxx 00xx Xxxxxx
Xxxxx 0000
Xxx Xxxx, XX 00000
Attention: Xxxxxx X. Xxxxx
3
Xxxxxxx X. Xxxxx
Facsimile: (000) 000-0000
with a copy (which shall not constitute notice to the Company)
to:
Xxxxxxxx & Xxxxx
000 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxxxxx
Xxxxxxxx X. Xxxxx
Facsimile: (000) 000-0000
and/or to such other respective addresses and/or addressees as may be designated
by notice given in accordance with the provisions of this Section 7(a).
(b) Applicable Law. This Indemnification Agreement shall be governed
and controlled as to validity, enforcement, interpretation, construction, effect
and in all other respects by the internal laws of the State of Illinois
applicable to contracts made in that State.
(c) Binding Effect; Benefit. This Indemnification Agreement shall
inure to the benefit of and be binding upon the parties hereto, and their
successors and permitted assigns. Nothing in this Indemnification Agreement,
express or implied, is intended to confer on any person other than the parties
hereto, and their respective successors and permitted assigns any rights,
remedies, obligations or liabilities under or by reason of this Indemnification
Agreement.
(d) Assignability. This Indemnification Agreement shall not be
assignable by the parties without the prior written consent of the other
parties, except that at or prior to the Closing Purchaser may assign its rights
and delegate its duties under this Indemnification Agreement to a subsidiary
entity or to any affiliate and may assign its rights under this Indemnification
Agreement to its lenders for collateral security purposes, and after the
Closing, Purchaser, Holdco or Company may assign their respective rights and
delegate its duties under this Indemnification Agreement to any third party.
(e) Amendments. This Indemnification Agreement shall not be modified
or amended except pursuant to an instrument in writing executed and delivered on
behalf of each of the parties hereto.
(f) Headings. The headings contained in this Indemnification
Agreement are for convenience of reference only and shall not affect the meaning
or interpretation of this Indemnification Agreement.
(g) Counterparts. This Indemnification Agreement may be executed in
multiple counterparts, each of which shall be deemed to be an original, and all
such counterparts shall constitute but one instrument.
(h) Further Assurances. The parties shall execute such further
documents, and perform such further acts, as may be necessary to otherwise
comply with the terms of this Indemnification Agreement, the Recap Agreement,
the Operating Agreement and the other Transaction Documents and consummate the
transactions contemplated hereby and thereby.
4
(i) Severability. The invalidity of any provision of this
Indemnification Agreement or a portion of a provision shall not affect the
validity of any other provision of this Indemnification Agreement or the
remaining portion of the applicable provision.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)
5
IN WITNESS WHEREOF, the parties hereto have caused this Indemnification
Agreement to be duly executed as of the day and year first above written.
ARC ACQUISITION CO., L.L.C.
By: /s/ XXXXXX XXXXXX
------------------------------
Name: Xxxxxx Xxxxxx
Title: Secretary
6
AMERICAN REPROGRAPHICS COMPANY HOLDINGS,
L.L.C.
By: /s/ X. XXXXXXXXXXXX
----------------------------------
Name: X. Xxxxxxxxxxxx
Title: CEO
AMERICAN REPROGRAPHICS COMPANY, L.L.C.
By: /s/ X. XXXXXXXXXXXX
----------------------------------
Name: X. Xxxxxxxxxxxx
Title: President
/s/ X. XXXXXXXXXXXX
----------------------------------------
XXXXXXXXXXXXX XXXXXXXXXXXX
/s/ X. XXXXXXXXXXX
----------------------------------------
KUMARAKULASINGAM XXXXXXXXXXX
MICRO DEVICE, INC.
By: /s/ X. XXXXXXXXXXXX
----------------------------------
Name: X. Xxxxxxxxxxxx
Title: President
SIGNATURES TO INDEMNIFICATION AGREEMENT CONTINUED ON NEXT PAGE
7
ZS FORD L.P.
By: ZS FORD L.L.C., its general partner
By: /s/ XXXXXX XXXXX
-----------------------------------
Name: Xxxxxx X. Xxxxx
Title: Manager
ZS FORD L.L.C.
By: /s/ XXXXXX XXXXX
-----------------------------------
Name: Xxxxxx X. Xxxxx
Title: Manager
8