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Exhibit
10.1
INDEMNITY
AGREEMENT
This Indemnity Agreement
(“Agreement”) is made as of
, 2008 by and between ELECTRONICS FOR IMAGING, INC., a Delaware
corporation (the “Company”), and
(“Indemnitee”).
RECITALS
WHEREAS, highly competent
persons have become more reluctant to serve publicly held
corporations as directors or in other capacities unless they are
provided with adequate protection through insurance or adequate
indemnification against inordinate risks of claims and actions
against them arising out of their service to and activities on
behalf of the corporation.
WHEREAS, the Board of
Directors of the Company (the “Board”) has determined
that, in order to attract and retain qualified individuals, the
Company will attempt to maintain on an ongoing basis, at its sole
expense, liability insurance to protect persons serving the Company
and its subsidiaries from certain liabilities. Although the
furnishing of such insurance has been a customary and widespread
practice among U.S.-based corporations and other business
enterprises, the Company believes that, given current market
conditions and trends, such insurance may be available to it in the
future only at higher premiums and with more exclusions. At the
same time, directors, officers and other persons in service to
corporations or business enterprises are being increasingly
subjected to expensive and time-consuming litigation relating to,
among other things, matters that traditionally would have been
brought only against the corporation or business enterprise itself.
The Bylaws of the Company require indemnification of the officers
and directors of the Company. Indemnitee may also be entitled to
indemnification pursuant to applicable provisions of the Delaware
General Corporation Law (“DGCL”). The Bylaws and the
DGCL expressly provide that the indemnification provisions set
forth therein are not exclusive, and thereby contemplate that the
Company may enter into contracts with members of the board of
directors, officers and other persons with respect to
indemnification and related matters.
WHEREAS, the Company believes
it is essential to retain and attract qualified directors, officers
and other key employees to serve the Company and its subsidiaries,
and uncertainties relating to such insurance and to indemnification
have increased the difficulty of attracting and retaining such
persons.
WHEREAS, the Board has
determined that the increased difficulty in attracting and
retaining such persons is detrimental to the best interests of the
Company’s stockholders and that the Company should act to
assure such persons that there will be increased certainty of such
protection in the future.
WHEREAS, it is reasonable,
prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such
persons to the fullest extent permitted by applicable law as an
inducement to them serving or continuing to serve the Company free
from undue concern that they will not be so indemnified.
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WHEREAS, this Agreement is a
supplement to and in furtherance of the Bylaws of the Company and
any resolutions adopted pursuant thereto, and shall not be deemed a
substitute therefor, nor to diminish or abrogate any rights of
Indemnitee thereunder.
WHEREAS, Indemnitee does not
regard the protection available under the Company’s Bylaws
and insurance as adequate in the present circumstances and may not
be willing to serve as an officer, director or other key employee
without adequate protection, and the Company desires Indemnitee to
serve in such capacity.
WHEREAS, Indemnitee is
willing to serve, continue to serve and to take on additional
service for or on behalf of the Company on the condition that he be
so indemnified.
WHEREAS, the Agreement hereby
amends and restates any existing indemnification agreement between
Indemnitee and the Company.
NOW, THEREFORE, in
consideration of the premises and the covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as
follows:
1. Services to the
Company . Indemnitee will serve or continue to serve as an
officer, director or key employee of the Company for so long as
Indemnitee is duly elected or appointed or until Indemnitee tenders
his resignation or is terminated by the Company.
2. Definitions . As
used in this Agreement:
(a) References to
“agent” shall mean any person who is or was a director,
officer, or employee of the Company or a subsidiary of the Company
or other person authorized by the Company to act for the Company,
to include such person serving in such capacity as a director,
officer, employee, fiduciary or other official of another
corporation, partnership, limited liability company, joint venture,
trust or other enterprise at the request of, for the convenience
of, or to represent the interests of the Company or a subsidiary of
the Company.
(b) The terms
“Beneficial Owner” and “Beneficial
Ownership” shall have the meanings set forth in Rule 13d-3
promulgated under the Exchange Act (as defined below) as in effect
on the date hereof.
(c) A “Change in
Control” shall be deemed to occur upon the earliest to occur
after the date of this Agreement of any of the following
events:
(i) Acquisition of Stock
by Third Party . Any Person (as defined below) is or becomes
the Beneficial Owner, directly or indirectly, of securities of the
Company representing fifteen percent (15%) or more of the
combined voting power of the Company’s then outstanding
securities entitled to vote generally in the election of directors,
unless (1) the change in the relative Beneficial Ownership of
the Company’s securities by any Person results solely from a
reduction in the aggregate number of outstanding shares of
securities entitled to vote generally in the election of directors,
or (2) such acquisition was approved in advance by the
Continuing Directors (as defined below) and such acquisition would
not constitute a Change in Control under part (iii) of this
definition;
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(ii) Change in Board of
Directors . Individuals who, as of the date hereof, constitute
the Board, and any new director whose election by the Board or
nomination for election by the Company’s stockholders was
approved by a vote of at least two thirds of the directors then
still in office who were directors on the date hereof or whose
election for nomination for election was previously so approved
(collectively, the “Continuing Directors”), cease for
any reason to constitute at least a majority of the members of the
Board;
(iii) Corporate
Transactions . The effective date of a reorganization, merger
or consolidation of the Company (a “Business
Combination”), in each case, unless, following such Business
Combination: (1) all or substantially all of the individuals
and entities who were the Beneficial Owners of securities entitled
to vote generally in the election of directors immediately prior to
such Business Combination beneficially own, directly or indirectly,
more than 51% of the combined voting power of the then outstanding
securities of the Company entitled to vote generally in the
election of directors resulting from such Business Combination
(including, without limitation, a corporation which as a result of
such transaction owns the Company or all or substantially all of
the Company’s assets either directly or through one or more
Subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination, of the
securities entitled to vote generally in the election of directors;
(2) no Person (excluding any corporation resulting from such
Business Combination) is the Beneficial Owner, directly or
indirectly, of 15% or more of the combined voting power of the then
outstanding securities entitled to vote generally in the election
of directors of such corporation except to the extent that such
ownership existed prior to the Business Combination; and
(3) at least a majority of the Board of Directors of the
corporation resulting from such Business Combination were
Continuing Directors at the time of the execution of the initial
agreement, or of the action of the Board of Directors, providing
for such Business Combination;
(iv) Liquidation . The
approval by the stockholders of the Company of a complete
liquidation of the Company or an agreement or series of agreements
for the sale or disposition by the Company of all or substantially
all of the Company’s assets, other than factoring the
Company’s current receivables or escrows due (or, if such
approval is not required, the decision by the Board to proceed with
such a liquidation, sale, or disposition in one transaction or a
series of related transactions); or
(v) Other Events .
There occurs any other event of a nature that would be required to
be reported in response to Item 6(e) of Schedule 14A of
Regulation 14A (or a response to any similar item on any similar
schedule or form) promulgated under the Exchange Act (as defined
below), whether or not the Company is then subject to such
reporting requirement.
(d) “Corporate
Status” describes the status of a person who is or was a
director, officer, trustee, general partner, managing member,
fiduciary, employee or agent of the Company or of any other
Enterprise (as defined below) which such person is or was serving
at the request of the Company in such capacity.
(e) “Delaware
Court” shall mean the Court of Chancery of the State of
Delaware.
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(f) “Disinterested
Director” shall mean a director of the Company who is not and
was not a party to the Proceeding (as defined below) in respect of
which indemnification is sought by Indemnitee.
(g) “Enterprise”
shall mean the Company and any other corporation, constituent
corporation (including any constituent of a constituent) absorbed
in a consolidation or merger to which the Company (or any of its
wholly owned subsidiaries) is a party, limited liability company,
partnership, joint venture, trust, employee benefit plan or other
enterprise of which Indemnitee is or was serving at the request of
the Company as a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent.
(h) “Exchange
Act” shall mean the Securities Exchange Act of 1934, as
amended.
(i) “Expenses”
shall include attorneys’ fees and costs, retainers, court
costs, transcript costs, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, and all other
disbursements or expenses in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being
or preparing to be a witness in, or otherwise participating in, a
Proceeding (as defined below). Expenses also shall include Expenses
incurred in connection with any appeal resulting from any
Proceeding (as defined below), including without limitation the
premium, security for, and other costs relating to any cost bond,
supersedeas bond, or other appeal bond or its equivalent. Expenses,
however, shall not include amounts paid in settlement by Indemnitee
or the amount of judgments or fines against Indemnitee.
(j) “Independent
Counsel” shall mean a law firm or a member of a law firm that
is experienced in matters of corporation law and neither presently
is, nor in the past five years has been, retained to represent
(i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning the
Indemnitee under this Agreement, or of other indemnitees under
similar indemnification agreements); or (ii) any other party
to the Proceeding (as defined below) giving rise to a claim for
indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing
either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement.
(k) References to
“fines” shall include any excise tax assessed on
Indemnitee with respect to any employee benefit plan; references to
“serving at the request of the Company” shall include
any service as a director, officer, employee, agent or fiduciary of
the Company which imposes duties on, or involves services by, such
director, officer, employee, agent or fiduciary 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 best interests 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.
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(l) The term
“Person” shall have the meaning as set forth in
Sections 13(d) and 14(d) of the Exchange Act and the rules and
regulations thereunder, as in effect on the date hereof;
provided , however , that “Person” shall
exclude: (i) the Company; (ii) any Subsidiaries (as
defined below) of the Company; (iii) any employment benefit
plan of the Company or of a Subsidiary (as defined below) of the
Company or of any corporation owned, directly or indirectly, by the
stockholders of the Company in substantially the same proportions
as their ownership of stock of the Company; and (iv) any
trustee or other fiduciary holding securities under an employee
benefit plan of the Company or of a Subsidiary (as defined below)
of the Company or of a corporation owned directly or indirectly by
the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.
(m) The term
“Proceeding” shall include any threatened, pending or
completed action, suit, arbitration, alternate dispute resolution
mechanism, investigation, inquiry, administrative hearing or any
other actual, threatened or completed proceeding, whether brought
in the right of the Company or otherwise and whether of a civil
(including intentional or unintentional tort claims), criminal,
administrative or investigative nature, in which Indemnitee was, is
or will be involved as a party or otherwise by reason of the fact
that Indemnitee is or was a director or officer of the Company, by
reason of any action (or failure to act) taken by him or of any
action (or failure to act) on his part while acting as a director
or officer of the Company, or by reason of the fact that he is or
was serving at the request of the Company as a director, officer,
trustee, general partner, managing member, fiduciary, employee or
agent of any Enterprise, in each case whether or not serving in
such capacity at the time any liability or expense is incurred for
which indemnification, reimbursement, or advancement of expenses
can be provided under this Agreement.
(n) The term
“Subsidiary,” with respect to any Person, shall mean
any corporation or other entity of which a majority of the voting
power of the voting equity securities or equity interest is owned,
directly or indirectly, by that Person.
3. Indemnity in
Third-Party Proceedings . The Company shall indemnify and hold
harmless Indemnitee in accordance with the provisions of this
Section 3 if Indemnitee was, is, or is threatened to be made,
a party to or a participant (as a witness or otherwise) in any
Proceeding, other than a Proceeding by or in the right of the
Company to procure a judgment in its favor. Pursuant to this
Section 3, Indemnitee shall be indemnified against all
Expenses, judgments, liabilities, fines, penalties and amounts paid
in settlement (including all interest, assessments and other
charges paid or payable in connection with or in respect of such
Expenses, judgments, fines, penalties and amounts paid in
settlement) actually and reasonably incurred by Indemnitee or on
his behalf in connection with such Proceeding or any claim, issue
or matter therein, if Indemnitee acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best
interests of the Company and, in the case of a criminal Proceeding,
had no reasonable cause to believe that his conduct was
unlawful.
4. Indemnity in
Proceedings by or in the Right of the Company . The Company
shall indemnify and hold harmless Indemnitee in accordance with the
provisions of this Section 4 if Indemnitee was, is, or is
threatened to be made, a party to or a participant (as a witness or
otherwise) in any Proceeding by or in the right of the Company to
procure a judgment in its favor. Pursuant to this Section 4,
Indemnitee shall be indemnified against all Expenses
actually
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and reasonably incurred by him or on his
behalf in connection with such Proceeding or any claim, issue or
matter therein, if Indemnitee acted in good faith and in a manner
he reasonably believed to be in or not opposed to the best
interests of the Company. No indemnification for Expenses shall be
made under this Section 4 in respect of any claim, issue or
matter as to which Indemnitee shall have been finally adjudged by a
court to be liable to the Company, unless and only to the extent
that any court in which the Proceeding was brought or the Delaware
Court shall determine upon application that, despite the
adjudication of liability but in view of all the circumstances of
the case, Indemnitee is fairly and reasonably entitled to
indemnification.
5. Indemnification for
Expenses of a Party Who is Wholly or Partly Successful .
Notwithstanding any other provisions of this Agreement, to the
extent that Indemnitee is a party to (or a participant in) and is
successful, on the merits or otherwise, in any Proceeding or in
defense of any claim, issue or matter therein, in whole or in part,
the Company shall indemnify and hold harmless Indemnitee against
all Expenses actually and reasonably incurred by him in connection
therewith. If Indemnitee is not wholly successful in such
Proceeding, the Company also shall indemnify and hold harmless
Indemnitee against all Expenses reasonably incurred in connection
with a claim, issue or matter related to any claim, issue, or
matter on which the Indemnitee was successful. For purposes of this
Section and without limitation, the termination of any claim, issue
or matter in such a Proceeding by dismissal, with or without
prejudice, shall be deemed to be a successful result as to such
claim, issue or matter.
6. Indemnification For
Expenses of a Witness . Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of his
Corporate Status, a witness in any Proceeding to which Indemnitee
is not a party, he shall be indemnified and held harmless against
all Expenses actually and reasonably incurred by him or on his
behalf in connection therewith.
7. Additional
Indemnification . Notwithstanding any limitation in Sections 3,
4, or 5, the Company shall indemnify and hold harmless Indemnitee
if Indemnitee is a party to or threatened to be made a party to any
Proceeding (including a Proceeding by or in the right of the
Company to procure a judgment in its favor) against all Expenses,
judgments, fines, penalties and amounts paid in settlement
(including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses,
judgments, fines, penalties and amounts paid in settlement)
actually and reasonably incurred by Indemnitee in connection with
the Proceeding. No indemnity shall be made under this
Section 7 on account of Indemnitee’s conduct which
constitutes a breach of Indemnitee’s duty of loyalty to the
Company or its stockholders or is an act or omission not in good
faith or which involves intentional misconduct or a knowing
violation of the law.
8. Contribution in the
Event of Joint Liability .
(a) To the fullest extent
permissible under applicable law, if the indemnification and hold
harmless rights provided for in this Agreement are unavailable to
Indemnitee in whole or in part for any reason whatsoever, the
Company, in lieu of indemnifying and holding harmless Indemnitee,
shall pay, in the first instance, the entire amount incurred by
Indemnitee, whether for judgments, liabilities, fines, penalties,
amounts paid or to be paid in settlement and/or for Expenses, in
connection with any Proceeding without requiring Indemnitee to
contribute to such payment, and the Company hereby waives and
relinquishes any right of contribution it may have at any time
against Indemnitee.
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(b) The Company shall not
enter into any settlement of any Proceeding in which the Company is
jointly liable with Indemnitee (or would be if joined in such
Proceeding) unless such settlement provides for a full and final
release of all claims asserted against Indemnitee.
(c) The Company hereby agrees
to fully indemnify and hold harmless Indemnitee from any claims for
contribution which may be brought by officers, directors or
employees of the Company other than Indemnitee who may be jointly
liable with Indemnitee.
9. Exclusions .
Notwithstanding any provision in this Agreement, the Company shall
not be obligated under this Agreement to make any indemnity in
connection with any claim:
(a) made against Indemnitee
for which payment has actually been received by or on behalf of
Indemnitee under any insurance policy, contract, agreement or other
indemnity provision obtained and maintained by any person for the
benefit of Indemnitee, except with respect to any excess beyond the
amount actually received under any insurance policy, contract,
agreement or other indemnity provision;
(b) except as otherwise
provided in Sections 14(e)-(f) hereof, made by Indemnitee
prior to a Change in Con
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