Document:

Exhibit

 

ELECTRONICS FOR IMAGING, INC.,

as Issuer

- AND -

U.S. BANK NATIONAL ASSOCIATION,

as Trustee
        
____________________________________________________

FIRST SUPPLEMENTAL INDENTURE
 
Dated as of November 5, 2018
 
to
 
INDENTURE
 
Dated as of September 9, 2014

____________________________________________________

0.75% Convertible Senior Notes due 2019

FIRST SUPPLEMENTAL INDENTURE, dated as of November 5, 2018 (the “Supplemental Indenture”), between ELECTRONICS FOR IMAGING, INC., a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), having its principal executive office located at 6750 Dumbarton Circle, Fremont, California 94555, and U.S. BANK NATIONAL ASSOCIATION, a national banking association, as trustee (the “Trustee”).

RECITALS
WHEREAS, the Company has executed and delivered to the Trustee, the Indenture, dated as of September 9, 2014 (the “Base Indenture”), to provide for the issuance of the Company’s 0.75% Convertible Senior Notes due 2019 (the “Notes”);
WHEREAS, this Supplemental Indenture is being entered into pursuant to the provisions of Sections 10.01(j) and 10.03 of the Base Indenture;
WHEREAS, Section 10.01(j) of the Base Indenture provides that without the notice to or consent of any Holders of the Notes, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental to the Base Indenture to amend or supplement any provision contained in the Base Indenture to conform the provisions of the Base Indenture or the Notes to the “Description of Notes” section of the Offering Memorandum (as defined in the Base Indenture);
WHEREAS, the Company desires to amend Section 1.01of the Base Indenture as described in this Supplemental Indenture and the Company, pursuant to the foregoing authority, proposes in and by this Supplemental Indenture to amend the Base Indenture as hereinafter provided; 
WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental Indenture; and
WHEREAS, the Company has duly authorized the execution and delivery of this Supplemental Indenture. All things necessary to make this Supplemental Indenture a legally valid and binding agreement of the Company, in accordance with its terms, have been done.
NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the Notes by the Holders thereof, the Company covenants and agrees with the Trustee for the equal and proportionate benefit of the respective Holders from time to time of the Notes (except as otherwise provided in the Base Indenture) as follows: 
ARTICLE ONE
DEFINITIONS

Section 1.01.    (a)    For all purposes of this Supplemental Indenture, except as otherwise herein expressly provided or unless the context otherwise requires:
(1)    terms used herein in capitalized form and defined in the Base Indenture shall have the meanings specified in the Base Indenture;
(2)    the words “herein,” “hereof” and “hereto” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision of this Supplemental Indenture; and

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(3)    the terms defined in the Recitals or in Article Two herein shall have the meanings specified therein.
(b)    For all purposes of the Base Indenture, except as otherwise expressly provided or unless the context otherwise requires:
(1)    the terms defined in this Article One and in Article Two herein shall have the meanings assigned to them in this Article One and in Article Two herein, and include the plural, as well as the singular; and 
(2)    “First Supplemental Indenture” or “this Supplemental Indenture” means this instrument as originally executed or, if amended or supplemented pursuant to the applicable provisions of the Base Indenture, as amended or supplemented. 
ARTICLE TWO
MODIFICATIONS

Section 2.01.    Amendment to Section 1.01 of the Base Indenture.  Section 1.01 of the Base Indenture is hereby amended by replacing the definition of “Daily Measurement Value” with the following new definition thereto:
“Daily Measurement Value” means the Specified Dollar Amount (if any), divided by 60.”

ARTICLE THREE
MISCELLANEOUS PROVISIONS

Section 3.01.    Effectiveness of Amendments.  The Base Indenture shall be, and be deemed to be, modified and amended in accordance herewith and the respective rights, limitation of rights, obligations, duties and immunities under the Base Indenture of the Trustee, the Company and the Holders shall thereafter be determined, exercised and enforced thereunder subject in all respects to such modifications and amendments and all the terms and conditions of this Supplemental Indenture shall be and be deemed to be part of the terms and conditions of the Base Indenture for any and all purposes.
Section 3.02.    Governing Law; Jurisdiction. THIS INDENTURE AND EACH NOTE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS INDENTURE AND EACH NOTE, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

The Company irrevocably consents and agrees, for the benefit of the Holders from time to time of the Notes and the Trustee, that any legal action, suit or proceeding against it with respect to obligations, liabilities or any other matter arising out of or in connection with this Supplemental Indenture or the Notes may be brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New York City, New York and, until amounts due and to become due in respect of the Notes have been paid, hereby irrevocably consents and submits to the non-exclusive jurisdiction of each such court in personam, generally and unconditionally with respect to any action, suit or proceeding for itself in respect of its properties, assets and revenues. 

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The Company irrevocably and unconditionally waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any of the aforesaid actions, suits or proceedings arising out of or in connection with this Supplemental Indenture brought in the courts of the State of New York or the courts of the United States located in the Borough of Manhattan, New York City, New York and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding brought in any such court has been brought in an inconvenient forum.

Section 3.03.    Waiver of Jury Trial.  EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY.
Section 3.04.    Severability Clause.  In the event any provision of this Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity, legality or enforceability of the remaining provisions shall not in any way be affected or impaired.
Section 3.05.    Ratification of Indenture.  The Base Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided.
Section 3.06.    Trustee’s Disclaimer.  The Trustee accepts the amendments of the Base Indenture effected by this Supplemental Indenture, but on the terms and conditions set forth in the Base Indenture, including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee.  The recitals contained herein shall be taken as the statements of the Company and the Trustee does not assume any responsibility for their correctness.  Without limiting the generality of the foregoing, the Trustee makes no representations as to the due execution hereof by the Company; provided that the Trustee represents that it is duly authorized to execute and deliver this Supplemental Indenture. 
Section 3.07.    Counterparts.  This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.
Section 3.08.     Continued Effect of Base Indenture.  Except as amended or supplemented by this Supplemental Indenture, the terms, conditions, covenants and agreements set forth in the Base Indenture shall continue in full force and effect.
[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed, all as of the day and year first above written.

	
		
	ELECTRONICS FOR IMAGING, INC.
as Issuer

	By:
	/s/ Mark Olin

	 
	Name:  Mark Olin
Title:    Chief Financial Officer

[Signature Page to First Supplemental Indenture]

	
		
	U.S. BANK NATIONAL ASSOCIATION,
as Trustee

	By:
	/s/ David Jason

	 
	Name: DAVID JASON
Title:   VICE PRESIDENT

[Signature Page to First Supplemental Indenture]Exhibit

 AMENDMENT NO. 1 
TO LEASE 

THIS AMENDMENT NO. 1 dated July 25, 2018 (Amendment No. 1) to Lease dated April 19, 2013 (Lease) by and between JOHN ARRILLAGA, Trustee, or his Successor Trustee UTA dated 7/20/77 (JOHN ARRILLAGA SURVIVOR'S TRUST) as amended, and RICHARD T. PEERY, Trustee, or his Successor Trustee UTA dated 7/20/77 (RICHARD T. PEERY SEPARATE PROPERTY TRUST) as amended, collectively as LANDLORD, and ELECTRONICS FOR IMAGING, INC., a Delaware corporation, as TENANT, is made and entered into as of the last date written below. 

RECITALS 

		
	A.
	WHEREAS, by Lease Agreement dated April 19, 2013 Landlord leased to Tenant approximately 58,560+ square feet of that certain 108,166+ square foot building (the Building) located at 6700 Dumbarton Circle, Suite 200, Fremont, California (the Premises), the details of which are more particularly set forth in said Lease, and 

		
	B.
	WHEREAS, said Lease was amended by the Letter dated August 30, 2013 which changed the Premises address from 6700 Dumbarton Circle, Fremont, California 94555 to 6700 Dumbarton Circle, Suite 200, Fremont, California 94555, and 

		
	C.
	WHEREAS, said Lease was amended by the Commencement Letter dated September 17, 2013 which confirmed the Commencement Date as September 1, 2013, and confirmed the Termination Date as August 31, 2028, and 

		
	D.
	WHEREAS, it is now the desire of the parties hereto to further amend the Lease to (i) terminate said Lease prior to the scheduled Termination Date and amend the scheduled Termination Date from August 31, 2028 to the revised early termination date of July 31, 2018, (ii) establish a Termination Fee for the early termination of the Lease, (iii) reference Landlord retaining Tenant’s Security Deposit in lieu of Tenant paying the unamortized portion of the Lease Commission as required in Lease Paragraph 45 (Brokers), (iv) modify Tenant’s surrender obligations, (v) amend the Aggregate Basic Rent of the Lease due to the early termination of the Lease, (vi) delete Lease Paragraphs 47 (Option to Extend Lease for Five (5) or Ten (10) Years) and 48 (Right of First Refusal to Lease) and 49 (Right of First Refusal to Purchase the Leased Property) and (vii) require Tenant to execute a Quitclaim Deed which Landlord will record to remove from record the Memorandum of Lease as hereinafter set forth (the Lease Agreement, Letter dated August 30, 2013, Commencement Letter and this Amendment No. 1 hereinafter are referred to collectively as the Lease). 

AGREEMENT 

NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, and in consideration of the hereinafter mutual promises, the parties hereto do agree as follows: 

1.     EARLY TERMINATION OF LEASE: Subject to the terms and conditions stated herein, 
Landlord and Tenant hereby agree to the early termination of the Lease; therefore, the scheduled Termination Date shall be changed from August 31, 2028 to July 31, 2018 (the Revised Termination Date). Tenant shall be responsible for paying all Basic Rent and Additional Rent and fulfilling all Lease obligations as contained in said Lease through the Revised Termination Date as modified herein. Notwithstanding the above, and except as may be otherwise provided in this Amendment No. 1, Tenant's obligations that occur and/or accrue during the Term of the Lease as stated in Lease Paragraphs 13 (Taxes), 18 (Indemnification), 19 (Compliance) and 44 (Hazardous Materials) shall survive the termination of the Lease. 

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2.     EARLY TERMINATION CONSIDERATION. As a material part of the consideration for Landlord's consent to the early termination of the Lease, Tenant agrees to pay to Landlord FOUR HUNDRED FIFTY-EIGHT THOUSAND TWO HUNDRED SEVENTY AND 80/100 DOLLARS ($458,270.80) as calculated pursuant to Exhibit A attached hereto (Termination Fee). Said Termination Fee shall be paid by Tenant to Landlord concurrently with the delivery of this executed Amendment No. 1. 

3.     LANDLORD RETENTION OF SECURITY DEPOSIT. The parties hereto agree that in lieu of Tenant paying the THREE HUNDRED FIFTY-TWO THOUSAND SEVEN HUNDRED SIXTY AND 51/100 DOLLARS ($352,760.51) unamortized Lease Commission as required in Lease Paragraph 45 (Brokers), Landlord shall apply Tenant’s Security Deposit of TWO HUNDRED NINETY-EIGHT THOUSAND FIVE HUNDRED TWENTY-FOUR AND 40/100 DOLLARS ($298,524.40) to the amount due and Landlord, as an accommodation to Tenant, shall forgive the net amount of FIFTY-FOUR THOUSAND TWO HUNDRED THIRTY-SIX AND 11/100 DOLLARS ($54,236.11) balance due. 

4.     TENANT’S SURRENDER OBLIGATIONS. 

A.     Surrender of Premises. The parties hereto agree Tenant shall surrender the Premises in the current interior configuration as shown on Exhibit B attached hereto and Tenant shall leave the cubicles installed in the Premises as of the Revised Termination Date. Tenant shall be responsible for otherwise relinquishing the Premises in the condition required under Lease Paragraph 5 (Acceptance and Surrender of Premises). 

B.     Hazardous Materials. Tenant represents and warrants to Landlord that, to the best of Tenant’s knowledge, no Hazardous Materials were used, stored and/or disposed of in, on or about, the Premises during the Term of the Lease by Tenant or its subtenants (if any), other than customary household and office supplies used in compliance with Environmental Laws. 

5.     REAL PROPERTY INSURANCE. Notwithstanding Tenant’s obligations related to payment of Additional Rent as set forth in Paragraph 1 (Early Termination of Lease) above, Tenant acknowledges that Tenant has prepaid real property insurance premiums due through March 13, 2019, and that Tenant will not receive any rebate of said prepaid premiums related to the Premises accruing after the Revised Termination Date of July 31, 2018. 

6.     AGGREGATE BASIC RENT. As a result of the Revised Termination Date, the Aggregate Basic Rent due under Lease Paragraph 4.A (Rent: Basic Rent) is decreased by FIFTEEN MILLION NINE HUNDRED EIGHTY-EIGHT THOUSAND THREE HUNDRED THIRTY-FOUR AND 41/100 DOLLARS ($15,988,334.41), or from EIGHTEEN MILLION FIVE HUNDRED TWENTY-SIX THOUSAND TWO HUNDRED FORTY-FIVE AND 48/100 DOLLARS ($18,526,245.48) to TWO 
MILLION FIVE HUNDRED THIRTY-SEVEN THOUSAND NINE HUNDRED ELEVEN AND 07/100 DOLLARS ($2,537,911.07). 

7. DELETION OF LEASE PARAGRAPH 47 (OPTION TO EXTEND LEASE FOR FIVE (5) OR TEN (10) YEARS). Lease Paragraph 47 (Option to Extend Lease for Five (5) or Ten (10) Years) is hereby deleted in its entirety and is of no further force or effect. 

8. DELETION OF LEASE PARAGRAPH 48 (RIGHT OF FIRST REFUSAL TO LEASE). Lease Paragraph 48 (First Right of Refusal to Lease) is hereby deleted in its entirety and is of no further force or effect. 

9. DELETION OF LEASE PARAGRAPH 49 (RIGHT OF FIRST REFUSAL TO PURCHASE THE PROPERTY LEASED HEREIN). Lease Paragraph 49 (Right of First Refusal to Purchase the Property Leased Herein) is hereby deleted in its entirety and is of no further force or effect. 

10. QUITCLAIM DEED. Tenant shall execute, and Landlord shall record, a Quitclaim Deed in the form attached hereto as Exhibit C to remove from record the Memorandum of Lease. 

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11. AUTHORITY TO EXECUTE. Each party executing this Amendment hereby warrants and represents that (a) the individual executing on behalf of such party is properly authorized to execute this Amendment and bind such party on behalf of whom each individual executes this Amendment and to all of the terms, covenants and conditions of this Amendment as they relate to the respective party hereto, and (b) neither entry into nor performance under this Agreement by such party violates any judgment, order, decree, conveyance or contract by which such party is bound. 

12. ENTIRE AGREEMENT. This Amendment constitutes the parties’ entire agreement and understanding with respect to all matters referred to in this Amendment. This Amendment may not be amended, modified or otherwise changed or any provision waived in any respect unless in writing and signed by both parties hereto. 

13. CHOICE OF LAW/VENUE; SEVERABILITY. This Amendment shall in all respects be governed by and construed in accordance with the laws of the County of Alameda in the State of California and each party specifically stipulates to venue in Alameda County. If any provisions of this Amendment shall be invalid, unenforceable, or ineffective for any reason whatsoever, all other provisions hereof shall be and remain in full force and effect. 

14.     EXAMINATION OF AMENDMENT. This Amendment No. 1 shall not be effective until its execution by both Landlord and Tenant. 

EXCEPT AS MODIFIED HEREIN, all other terms, covenants, and conditions of the Lease shall remain in full force and effect. 

[SIGNATURES ON FOLLOWING PAGE] 

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IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment No. 1 to Lease as of the day and year last written below. 

	
			
	LANDLORD:
	 
	TENANT:

	JOHN ARRILLAGA SURVIVOR'S TRUST
	 
	ELECTRONICS FOR IMAGING, INC.,

	 
	 
	a Delaware corporation

	By__________________________
	 
	By__________________________

	John Arrillaga, Trustee
	 
	______________________________

	Date: _______________________
	 
	Print or Type Name

	RICHARD T. PEERY SEPARATE
	 
	Title: _________________________

	PROPERTY TRUST
	 
	 

	By__________________________
	 
	Date: __________________________

	Richard T. Peery, Trustee
	 
	 

	Date: ________________________ 
	 
	 

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